End of philanthropy: Armenia lost in gas networks

Another sensation has broken out in Armenia.

This time, the fuss broke out after the increase in gas tariffs announced by ArmRosGazprom, the Armenian subsidiary of Russia's Gazprom. The media is indignant over the matter and Dashnaks even threaten to raise the issue in parliament. ArmRosGazprom answers with a snarl. It's time you learn to pay for gas as much as it costs, not as much as we feel sorry for you. The company attributes its move to the following factors.  

First, they say the dram’s rate against the dollar has declined, which means prices for everything imported from abroad,  above all, energy, will soar.

Secondly, ArmRosgazprom needs to make major investments in a fairly ramshackle gas supply system for homes and businesses. On top of that, and most importantly, the price of imported gas shut up. And finally, the volume of gas consumption in Armenia is falling, forcing ArmRosGasprom to "force out" money from the remaining customers.

Frankly, the reduced consumption in Armenia deserves attention. The socio-economic situation does not allow the establishment of "smart homes" and "energy-saving technologies.” So, a  sizeable drop in consumption is the first sign that a mass exodus from Armenia is continuing with the remaining people saving on everything. This is quite expected on the backdrop of a 15-percent fall in the economy.

But what was unexpected was the impressive political passions stirred up by the rise in gas tariffs.  It was even attributed to political reasons, taking offense at Russia.

In fact, Armenia imports gas mainly from Russia. Once there was uproar around the Iran-Armenia gas pipeline, but it was due to Gazprom’s efforts that the pipeline under construction was sent down to the level of local support for the Russian pipe in emergency cases. Moreover, ArmRosgazprom, which owns the distribution network in Armenia, is a subsidiary of Gazprom. Armenia offered its gas network to Russia in exchange for debts.

And Russia has its own calculation. According to most experts, the country has already parted company with the "special price" tactics for friends and enemies, and opted for determining gas prices according to the market rate. But no less important is that, as argued by many analysts, Russia's Gazprom seems to have left behind hard years. The company remains one of the largest in the world enjoying excellent financial stability. But Russia’s gas giant needs to put into service new fields and pipelines and supply gas to Russian villages ... In this situation, philanthropy across the whole country seems to be inappropriate.

The most remarkable is that Armenia has already witnessed something like this though on a smaller scale when it took offense at South Caucasus Railways, a subsidiary of Russian Railways, as Armenian people were unprepared for the fact that Russia will build its relations with Armenia under market rules without philanthropy, without sponsorship and gifts "for past services and beautiful eyes."

But such a turn of affairs turned out to be completely unexpected for Armenia. It could not imagine that relations between Moscow and Yerevan may witness words such as "market price" and "real value", but not "outpost", "historic ties" and "help the small, long-suffering Christian nation."

Obviously, Armenia takes offence not only at higher gas and railway tariffs, but also “change in rules of the game."

Armenia could not help but get scared. For obvious reaasons, Armenia chose not to voice protest openly. When Russia's companies took control of plants, cellular communications, railways, gas distribution network, Armenia did not it regard as investment and infrastructure projects. They assessed these agreements primarily as a sort of friendly gesture toward Russia which must necessarily respond to it not by "special rates" for gas and railways, but preferably by a denunciation of the Kars Treaty that defined the Soviet-Turkish border.

But the main point is that Russia is not ready to pay so dearly for Armenian loyalty and is not willing to maintain Armenia.

The most tragic thing for Yerevan is that Armenia has no other choice. The launch of "football diplomacy" stirred hopes for a possible diversification of Armenia’s foreign policy, but now, when, according to most experts, the Armenian-Turkish talks are pushed back to the "zero point", these expectations clearly diminished.

This means that Yerevan's "demonstration of offense" is unlikely to make the expected impression on Russia.


Nurani
Day.Az writer