Russia threatens Armenia with gas price hike over pro-Western policies
Russia has once again warned Armenia of a sharp increase in the price of natural gas unless Yerevan reverses its pro-Western shift. Mikhail Kalugin, a senior Russian Foreign Ministry official, stated that Armenia would lose preferential treatment, including discounted gas prices, if it continues to diversify its foreign policy. Armenia currently pays $177.5 per thousand cubic meters of gas, a significant discount compared to the EU market price of around $875.
Prime Minister Nikol Pashinian dismissed the threats, asserting that Armenia will diversify its gas imports regardless of the cost. Officials have mentioned potential suppliers like Azerbaijan, Iran, and even Turkey. However, Russian officials argue that Armenia will not find better terms elsewhere. Alexei Shevtsov, deputy secretary of Russia’s Security Council, insisted that Armenia has no viable alternatives to cheap Russian gas.
Armenia’s Central Bank governor, Martin Galstian, acknowledged the severe economic impact of a potential price hike. The threat comes amid broader Russian pressure on Armenia to choose between aligning with the EU or remaining in a Russian-led trade bloc. Pashinian has ruled out reversing his pro-Western policies, which were reaffirmed after disputed parliamentary elections in June.