Armrosgazprom

Armrosgazprom (Russian Армросгазпром ) is the largest gas importer and suppliers in Armenia and also exports natural gas to the internationally unrecognized Republic of Nagorno Karabakh. 57.59 % of the shares belong to the Russian Gazprom, 34.70 % the Ministry of Energy of the Republic of Armenia and the Russian company ITERA 7.71 %. The Armenian name is Hajrusgasard ( Հայռուսգազարդ, in scientific transliteration Hayṙowsgazard ).

Corporate Development

Armrosgazprom was founded in 1997, with Gazprom 45 % of the shares acquired, the Armenian Ministry of Energy holds 45 % and ITERA the remaining 10%. The company is registered as a closed joint stock company in Armenia. The natural gas supplies, Gazprom export via a pipeline through Georgia, following the majority on the Armenian gas network is delivered to end users. The rest is re-exported to the Republic of Nagorno Karabakh, an additional strategic gas reserve is built up in a salt dome in Abovyan.

By April 2006, the price was 1000 m3 only 54 U.S. dollars, equivalent to the subsidized Russian domestic prices, Gazprom demanded by some countries of the Commonwealth of Independent States (CIS). After Gazprom had increased the prices of Georgia and Ukraine on 1 January 2006 to world market levels ( $ 230, see also Russian - Ukrainian gas dispute ), was also an increase in gas prices for Armenia. Due to the good relations with Russia to retain the old price until the conclusion of the negotiations in April succeeded.

The result was a more than 25 years of completed agreement on strategic cooperation. The Armenian side, a price of $ 110 per 1000 m3 of natural gas was thereby guaranteed until January 1, 2009, in return, the Armenian government sold a major power plant in Hrazdan, which had previously been in the State, and gave Gazprom a majority stake in Armenian gas network for 250 million U.S. dollars.

This contract was valued differently. The opposition believes that Armenia had sold too many strategically important objects to Russian state-owned corporations and are now located in a strong dependence, instead you should be willing to pay world market prices in order to be independent. President Robert Kocharian and the government of Prime Minister Andranik Margaryan, however, stressed the economic favorability of the contract. Roger Robinson, the former World Bank representative in Armenia, the Agreement also considered to be very beneficial, and called the very strong Russian presence as "natural", but this is just no problem as long as there is a strong regulatory authority.

During a state visit to Moscow Armenian President announced that Gazprom will acquire a majority stake in a capital increase. On 27 October 2006, the capital increase in the amount of 118.8 million was. U.S. Dollar decided. Gazprom now owns 57.59 % of the shares, Armenia 34.70 % and 7.71 % ITERA.

Armrosgazprom end of 2006 had around 440,000 customers (if one takes into account the number of people in the customer households ), the management aims to increase this number up to 610,000. For 2007, a further capital increase of 190 million U.S. dollars is planned, the goal is an interest of 80 % in 2009.

Because of the difficult economic situation in the 1990s, the Armenian government was unable to maintain the required extent repair the network, as a result, expansion and high maintenance investments are needed in addition to the. The return on equity of Armrosgazprom therefore in 2006 amounted to only 6% percent, in the next few years to at least 12 % can be achieved.