Armenia to pay European rates for gas from 2011

Russia’s Gazprom and Armrosgazprom (its daughter company in Armenia) have signed an agreement under which the cost of natural gas transported from Russia to Armenia will be increased gradually until it reaches European levels by 2011.

Gazprom is the sole exporter of gas to Armenia. In 2007 it transported more than 2 billion cubic metres of natural gas to Armenia. In 2006 the company and the country concluded a 25 year supply contract.

Armrosgazprom was established in 1997 with Gazprom holding 45% of its shares, the Armenian Ministry of Energy 45% and another Russian company, Itera, 10%. Today Gazprom owns almost 68% of the shares.