On 2 December, Russian gas monopoly Gazprom said it would take over full ownership of its subsidiary ArmRosgazprom, by acquiring the remaining 20% of shares from Armenia.
In 2014-2018, Russia will supply gas to Armenia for about $189 per 1,000 cubic metres, Russian President Vladimir Putin said at a joint press conference with Armenian President Serzh Sargsyan in Yerevan, local press reported.
Russia will one-sidedly set up some privileges for Armenia before Armenia joins the Customs Union, the Kremlin leader said. In particular, Armenia can purchase armament from Russia at domestic prices, Putin said. As for oil products, Russia will exempt 30% export customs duty envisaged by the law, he added.
Russia is the biggest foreign investor in Armenia and its largest trading partner. Bilateral trade grew 22% to $1.2 billion last year. Most trade has been imports to Armenia.
Putin flew to the South Caucasus country for talks on its decision in September to join Russia, Belarus and Kazakhstan in a Customs Union.
However, demonstrators in Yerevan marched to Sarksyan’s administration to hand over a letter urging the government to renounce its decision to join the Customs Union. “We are going to strengthen our position in the South Caucasus, drawing on the best of what we have inherited from ancestors and good relations with all countries in the region,” Putin told a Russian-Armenian regional forum. “Participation in the Customs Union ... already is bringing Russia, Kazakhstan and Belarus tangible dividends.”
Overall, 12 bilateral agreements were signed during the presidential visit. Also, the parties agreed to continue efforts to boost trade and Russian investments in Armenia, create joint enterprises, promote scientific and hi-tech co-operation. Putin said the extension of the operation life of Armenian nuclear power plant is planned, with Hrazdan thermal power plant operations already launched.
Putin said he was confident that Armenia’s accession to the Eurasian integration project “would seriously strengthen its economic potential, improve the investment climate and promote direct business contacts, including those between regions”.