Accusations against “Gazprom Armenia” - Nikol Pashinyan's ongoing show - COMMENT

Baku. 16 November. REPORT.AZ/ The new political force that has come to power in Armenia continues its show. In fact, official Yerevan plays a cat and mouse game with the Kremlin. The new government is trying to grasp Moscow's attention. Armenia is trying to achieve it by opposing Russia's interests in Armenia. The Armenian authorities believe that in this way they can make Moscow accept it.

Yesterday, the State Revenue Committee of Armenia reported huge financial violations in Gazprom Armenia. The Committee also said that the company also evaded taxes in huge amounts. According to the report, in 2016 and 2017, Gazprom Armenia paid millions of dollars in tax less to the state by submitting untrue declarations about the value-added tax. By results of the inspections, a criminal case was filed over evasion of tax, duty and other mandatory payments.

At present, the amount of damage inflicted on the state and the cases of corruption in the field of natural gas consumption are investigated.

Gazprom Armenia has denied the accusations calling them “ridiculous”. The company recalled that they were the largest tax payers in Armenia: "This behavior of the Committee threatens Gazprom Armenia's image."

The company says it paid $ 62 million in taxes for the first nine months of 2018. Notably, Gazprom Armenia CJSC, established in 1997, is a subsidiary of Russian Gazprom CJSC.

At the beginning of last year, the share of Gazprom Armenia rose from 80 to 100 percent. Previously, 20 percent of the company's share was owned by Russian Gazprom. Now Gazprom has decided to give that 20 percent stake to Gazprom Armenia too. The Russian government also confirmed the company's decision. Following this decision, Gazprom Armenia transports natural gas from Russia directly to the domestic market of Armenia. Thus, it has a right to become a monopolist in the country's domestic market. By the way, in 2014-2018 Gazprom and Gazprom Armenia signed a contract for the supply of 2.5 billion cubic meters of natural gas to Armenia. In April 2016, the parties signed an addition to the agreement.

Thus, on December 9, extraordinary parliamentary elections will be held in Armenia. Ahead of a very important political campaign for the country, what could be the reason behind this step by official Yerevan against Moscow? Why is there such an inspection against the background of sanctions against Iran? First of all, Russia sells natural gas to Ukraine for $ 270-280 per thousand cubic meters, for $ 140 to its nearest ally Belarus, and for $ 150 to Armenia. However, Armenia wants Russia to reduce the cost of "blue fuel". Otherwise, it shows Iran as an alternative to Moscow. Director General of Gazprom Armenia Grant Tadevosyan said that Armenia can import gas from Iran 10 percent cheaper compared to Russia.

According to him, a higher price would not be profitable: "The heat emitted by one thousand cubic meters of Iranian natural gas is 7900 kilocalories, and Russian gas emits at least 8200 kilocalories. If Russia sells one thousand cubic meters of gas for $ 150, it would be profitable to import Iranian low-quality "blue fuel" for $ 135. He also stressed that negotiations with Iran in this regard were in progress. Grant Tadevosyan noted that the Armenian government has been negotiating with Russia on gas prices since 2018.

Minister of Energy Infrastructures and Natural Resources Garegin Baghramyan said Iran had offered them a $ 10 higher price compared to Russia. According to him, Iran is the second source of natural gas for the country's energy security: "We have not received a favorable offer from Iran yet."

As seen, Armenia's energy security is largely dependent on Russia and Iran. The United States has imposed sanctions on Moscow and Tehran. Yerevan may try to obtain natural gas from Iran and Russia at an affordable price, under the pretext that the US imposed sanctions against it. According to the parties, it seems that the Armenian government will sue Gazprom Armenia. It can be a new factor for game or trade with Russia. The government of acting prime minister Nikol Pashinyan and political forces supporting hi may exchange gas issue for political legitimacy in order to make Kremlin accept them. This is also a preparation for the meeting of Russian President Vladimir Putin and Nikol Pashinyan, expected to take place in December. Yerevan tries to create a fait accompli to achieve compromise on price issue.

Meanwhile, Avag Avakyan, director of the "Business Armenia" Foundation (formerly the Armenian Development Fund) created under the auspices of former Armenian Prime Minister Karen Karapetyan, resigned. In addition, 11 more employees of the Fund were dismissed. It is assumed that Nikol Pashinyan may close the Foundation for ineffective activity. Therefore, we would like to emphasize one issue. Karen Karapetyan is the “trainee” of Gazprom Armenia. He held a number of high-profile positions in the energy sector of Armenia since 1996. In 2001-2010, he served as General Director of ArmRosGazprom and Deputy Director General of Gazprom Mezhregiongaz in 2012-2016. Therefore, the staff cuts over "Business Armenia" can be assessed indirectly from the context of tension in the Armenian-Russian relations.

In fact, Russian-oriented organizations operating in Armenia perceive the anti-Kremlin sentiments among Pashinyan supporters more clearly. One of them announced that the Armenian Communist Party will boycott the extraordinary parliamentary elections to be held on December 9. One of the reasons for that was the criminal case against Russian companies operating in Armenia.

The winter is coming. Pre-election campaign is being held. The government has financial problems in holding this event. Therefore, the Armenian government and the diplomats of the European Union, Sweden, Germany and Britain signed a program on supporting the election process in Armenia on November 14. According to the document, the EU will provide 1.5 million euros, Germany EUR 700,000, Britain GBP 500,000, and Sweden 1.5 million krona (165,000 dollars). Under such circumstances, the “scent of money” is coming from accusation against Russia's Gazprom. Therefore, the Armenian government shakes natural gas monopoly in the country to eliminate the financial difficulties that it faces. In any case things in Yerevan are going to be difficult.