Kremlin defers Armenia gas pricing questions to Gazprom, calls deal "commercial"

The Kremlin on Wednesday claimed it had no information about any potential unilateral cancellation of a deal with Armenia that provides gas supplies at preferential, low prices. Kremlin spokesperson Dmitry Peskov was asked whether Russia was considering unilaterally ending the agreements with Armenia because of its EU integration path.

The TASS news agency quoted Peskov as saying that such matters are “commercial issues” and referred the question to Gazprom, the Russian state-owned energy corporation. “Ask Gazprom about that; I know nothing about any cancellation. Gazprom’s gas agreements with Armenia are commercial in nature. There is a preferential price there; it can be higher, it can be lower, it can be revised, and corporations can raise this issue. This is a corporate matter, and Gazprom should be approached on this issue,” Peskov said, according to TASS.

He added that the preferential price at which Armenia receives gas should be seen as assistance from Russia.

“A privilege is always a privilege at someone’s expense. That is, the privilege that Armenia receives is always at someone’s expense; it did not fall from the sky. It is at the expense of the Russian Federation. It is truly our contribution to Armenia’s development. These preferences are linked to the fact that the Armenian people are a brotherly people for Russia. That country is and remains a brotherly country for us, but it is at our expense—we should call things by their names. This is our assistance to Armenia,” Peskov said.

Russia sells natural gas to Armenia for $177.50 per thousand cubic meters pursuant to agreements signed in 2013, while in Europe it costs up to $633 per thousand cubic meters.

Armenian Prime Minister Nikol Pashinyan, speaking days earlier about the possible increase in the price of Russian gas, said that such a development could not happen, as there are existing agreements with Russia that must be upheld.