Gazprom to buy 100 percent of ArmRosGazprom shares

YEREVAN, DECEMBER 2, ARMENPRESS. The opening of the fifth energy block of Hrazdan Thermal Power Plant was held with the participation of the Head of Russian ArmRosGazprom company Alexey Miller. As reports “Armenpress” Miller touched upon the agreements to be signed between the Republic of Armenia and Russia and stated that according to one of the aforesaid agreements Gazprom will buy 100 percent of ArmRosGazprom shares. Among other things Miller stated that the price of the Russian gas for Armenia will be changed and it will be sold on prices of Russia’s internal market. Notwithstanding Miller did not clarify the exact price.

ArmRosGazprom was founded in 1997 as a joint Russian-Armenian natural gas pipeline project. The company organizes the gas supply for Armenia's domestic gas market. Director General is currently Karen Karapetian. The company is registered in Armenia as a Closed Joint Stock Company and when it was founded, the Russian state gas monopolist Gazprom owned 45% of stock, the Armenian Energy Ministry 45% and the ITERA company 10%.

ARG buys the gas at the border from Gazexport, an export unit of Gazprom, and distributes it through the ARG pipeline, mainly to the domestic market. In 2005 Gazexport supplied 1.5 billion cubic meter (bcm) of gas, which were distributed to about 430,000 customers, but also enlarges the gas transport system and underground gas depots in Armenia. The company employs currently some 6,000 people. According to Karen Karapetian, ARG has invested $81 million for the past four years in Armenia, mainly into provision of natural gas, but also into infrastructure.