Armenia Models Risks of Russian Gas Price Hikes

Armenia's government has modeled potential risks of Russian gas price increases, according to Finance Minister Vahe Hovhannisyan. In an interview with Shant TV, he stated that 'Yes, there are calculations related to an increase in gas prices and related to various restrictions. Of course, we have assessed all the risks.'

The issue is significant because Armenia remains heavily dependent on Russia for natural gas. It imports around 2.7-2.8 billion cubic meters a year, with about 85% coming from Russia and roughly 15% from Iran.

Russia currently supplies Armenia at a border price of about $165 per 1,000 cubic meters. Adjusted for its calorific value, the effective price is around $177.