MOSCOW, May 28. /TASS/. Armenia’s costs to replace Russian gas if it joins the EU would amount to up to $400 million a year, and the country’s economy is heavily dependent on gas imports, Alexey Belogoryev, research director at the Institute of Energy and Finance, told TASS.
According to him, the problem for Armenia is not only the price of gas but also how to substitute supplies from Russia. Possible options include direct supplies from Iran, Azerbaijan, or Turkey, and transit of Azerbaijani gas through Georgia, but all of these are expensive, and transporting gas from Azerbaijan or Turkey carries significant political risks for Armenia itself.
"The only politically acceptable replacement is Iran, especially since it has been supplying gas to Armenia for a long time, since 2009, as part of a barter exchange for electricity. Even if Iran were to find some extra gas (2.2-2.5 billion cubic meters per year), it would take at least three years and several hundred million dollars to resolve the bottlenecks in the gas transportation infrastructure. A realistic price range for such gas would be $280-350 per 1,000 cubic meters, meaning it would be up to twice as expensive as current Russian supplies. This means Armenia’s additional gas import costs would amount to $230-400 million per year, depending on the contract formula and market conditions," the expert said.
