A possible increase in the price of natural gas supplied from Russia at Armenia’s border would not have disastrous consequences for the Armenian economy, Finance Minister Vahe Hovhannisyan said during preliminary discussions of the draft 2027 state budget at the National Assembly.
The issue was raised by Mesrop Manukyan, a lawmaker from the opposition Armenia parliamentary faction, who expressed concern that an increase in the price of gas at the Armenian border could negatively affect the country’s macroeconomic indicators, Sputnik Armenia reports.
“Under such a scenario, the public debt-to-GDP ratio, which currently stands at around 50%, could reach approximately 60%,” the opposition lawmaker noted.
Hovhannisyan responded that there was currently no new information concerning a possible gas price increase.
“I do not think we should discuss a possible rise in gas prices in an apocalyptic mood, and I certainly do not believe it would have disastrous consequences. There have been no new developments regarding a gas price increase.
“I simply want to remind you that similar discussions about a possible increase in gas prices took place last year, and the same discussions are taking place now,” the minister said.
Manukyan, in turn, referred to existing problems in relations between Armenia and Russia, pointing to recent political and diplomatic developments.
“I am expressing concern and asking a question on behalf of the people. People want to know whether the price will increase or not,” the lawmaker stated.
The finance minister did not respond further to the question.
During a press conference in September, Central Bank of Armenia Governor Martin Galstyan said that an increase in gas prices could lead to an “apocalyptic” or otherwise abnormal economic scenario.
Prime Minister Nikol Pashinyan also addressed the issue on October 22, stating that Armenia’s economy was not facing catastrophic developments. Pashinyan criticized those expressing the opposite view, saying that people making such assessments did not understand economics.
The natural gas tariffs currently in force in Armenia were established by a decision of the Public Services Regulatory Commission dated March 1, 2022, and took effect on April 1 of the same year. The tariff for residential consumers is 143.7 Armenian drams per cubic meter of natural gas.
