Armenia’s energy minister must think the Armenian public is dim witted.

Armenia's energy minister Movsisyan must think the Armenian public is dim witted. Otherwise, why would he say the other day that Armenia would have had to buy gas from Russia at 500USD (I assume per 1,000 cubic meters) if it had not agreed to join the Customs Union? Gas prices in Europe have been declining as the shale revolution in the US forced exporters in the Middle East to diver LNG to Europe. Gazprom has had to renegotiate a number of contracts, granting European countries discounts of 10 percent and Russia's own PM Medvedev expects average price for Russian gas in Europe to decline in long-term contracts from 407USD last year to 370-380USD.
If the Armenian government were to be offered to buy gas at 500USD from Russia and accepted, then the Armenian public would wonder whose interests their government is actually advancing, given that  gas prices in Europe are falling and that Armenia neighbors energy-rich Iran. The latter would surely be happy to sell more gas to Armenia and probably quite a bit under $400, which, according to Movsisyan's claims,  is the price that Iran is charging Armenia. See this article for one estimate of how little Iranians are actually charging Armenia. The Armenian government is yet to present a coherent cost-benefit analysis of the EU and CU integration options to the Armenian public and I doubt it will ever will. Instead, the public has to put up with such statements, as Movsisyan's.


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