Russia is considering temporarily suspending or denouncing the agreement on the supply of gas, oil products and diamonds to Armenia, the Kommersant newspaper reports, citing a letter from Energy Minister Sergei Tsivilev to his Armenian colleagues.
“Russia may suspend or unilaterally denounce the agreement on the supply of natural gas, oil products and rough diamonds to the republic, signed in December 2013, if Yerevan continues its process of joining the EU“, the newspaper writes, citing a letter sent to the Armenian Ministry of Territorial Administration and Infrastructure.
The letter states that the current actions aimed at strengthening Armenia's interaction with the European union, as well as Yerevan's declared intention to join the EU, could threaten the maintenance and development of a high level of trade, economic and investment relations between Russia and Armenia, which are largely based on bilateral agreements.
According to a 2013 agreement, Russia finally abolished export duties on oil products, gas and diamonds to Armenia. Moscow sells oil products and gas to Yerevan in quantities necessary for internal consumption, determined by indicative balances, while re-export to third countries is prohibited.
„Gazprom Armenia“ supplies gas to the country's domestic market and is 100% owned by the Russian „Gazprom“. The long-term contract provides for supplies of up to 2.5 billion cubic meters to Armenia. The price is $177.5 per thousand cubic meters, compared to a market price of over $600, President Vladimir Putin noted in April.
On May 25, Dmitry Peskov warned that the preferential gas price for Armenia would become market-based if Yerevan leaves the Eurasian Economic Union (EAEU). According to the Kremlin spokesman, such conditions are impossible for members of other integrated organizations, including the European Union.
According to Moscow, the West's goal is to use Armenia against Russia, luring it into the Western camp with promises of EU membership.
According to the leader of "United Russia" Dmitry Medvedev, the country's Prime Minister Nikol Pashinyan is actively pushing Armenia along the path of today's Ukraine and pulling the republic towards the European Union, while trying to preserve all the benefits of membership in the Eurasian Economic Union.