Armenia imports the bulk of gas used by its households, power plants and other enterprises from Russia at a price set well below international market-based levels. In recent months, Moscow has repeatedly warned that it will end this discount if Yerevan continues to strive for membership in the European Union. It has already banned imports of Armenian agricultural products.
Prime Minister Nikol Pashinian has downplayed the impact of the Russian sanctions and ruled out any change in his pro-Western foreign policy. Pashinian said on Friday that his government plans to diversify Armenia’s sources of natural gas supply. He did not elaborate.
Alen Simonian, a longtime Pashinian ally who was recently appointed as secretary of the country’s Security Council, told reporters that the government views Azerbaijani gas as one such alternative.
“Who said that we are planning to replace dependence on one country with dependence on another?” he said. “We are planning [to buy gas] from all possible places. If Russia offers gas, we’ll buy it from Russia; if Iran does, we’ll buy from Iran; if Azerbaijan does, we’ll buy from Azerbaijan. And if Turkey somehow has available gas, we’ll buy it from them too.”
Simonian did not comment on the cost of the alternative gas imports which would almost certainly be much higher. The governor of Armenia’s Central Bank, Martin Galstian, acknowledged on Tuesday that the price hike threatened by the Russians would have severe consequences for the Armenian economy.
Russian Foreign Minister Sergei Lavrov reiterated on Wednesday Armenia risks losing what he called “huge economic preferences” resulting from its membership in the Eurasian Economic Union (EEU), a Russian-led trade bloc. He said Moscow has no intention to “pay for preparations for Armenia’s membership in the European Union.”
Russian President Vladimir Putin again pressed Pashinian to quickly choose between joining the EU and remaining part of the EEU during their most recent talks held in Kyrgyzstan on September 1. The two leaders agreed to meet again in Moscow before an EEU summit due in December.