Armenian Households Will Not See a Natural Gas Price Increase This Year, Despite Russia’s Warnings

Armenian households will continue paying the same price for natural gas through the end of the year after the country's energy regulator voted Wednesday to leave consumer tariffs unchanged, despite recent warnings from Russia over future energy supplies.

The Public Services Regulatory Commission approved the decision while also adopting changes to the way gas tariffs are calculated. The revised pricing structure will take effect Aug. 1 but will not increase the amount households pay for natural gas before Dec. 31.

As part of the changes, Gazprom Armenia will receive less revenue for transporting natural gas. The commission also removed company executives from the employee bonus fund. In addition, the price of natural gas supplied to Armenia's thermal power plants will be reduced.

Gazprom Armenia Director Ashot Hakobyan attended the commission meeting but declined to comment on the decision. He said only that the company does not plan to request a gas tariff increase.

Commission Chairman Mesrop Mesropyan said Gazprom Armenia could apply for a tariff revision as early as next year.

The decision comes after Russia publicly raised concerns about its energy relationship with Armenia during the country's parliamentary election campaign.

In late May, Russia's Energy Ministry sent a letter to Armenia's Ministry of Territorial Administration and Infrastructure. Russian Energy Minister Sergei Tsivilev later disclosed that Moscow had warned it could suspend deliveries of natural gas and petroleum products to Armenia.

"Russia has still not received a response to that letter," Tsivilev told Vedomosti. He added that Armenia continues to receive Russian oil and natural gas at preferential prices and said gas costs in Europe are several times higher.

For now, the regulator's decision provides price certainty for Armenian consumers, even as questions remain over the future of the country's energy ties with Russia.

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