ArmInfo. Armenian Minister of Economy Gevorg Papoyan has assured that there will be no increase in gas prices. The Minister made these remarks to journalists on June 1 during an election campaign event.
When asked whether Armenia had responded to a letter from the Russian side regarding gas pricing, the head of the ministry noted that he was unaware of any response. However, Papoyan referenced a telephone conversation held today between Armenian Prime Minister Nikol Pashinyan and Russian President Vladimir Putin, noting that the discussion was warm in nature.
"I believe the media reports are quite exaggerated. All issues will be resolved," he stated. Relations between Moscow and Yerevan have grown strained against the backdrop of Armenia's integration course toward the European Union. Last week, Russian Foreign Ministry spokesperson Maria Zakharova announced that Moscow had warned Yerevan of the risk of terminating agreements on gas, petroleum products, and diamonds should Armenia join the EU. Russian Energy Minister Sergey Tsivilev later stated that Moscow had not received a response from Yerevan. Chairman of the State Duma Vyacheslav Volodin reminded that Armenia receives Russian gas at a preferential price of $177.5 per 1,000 cubic meters, whereas the price for Europe stands at $633.
The agreement on duty-free supplies of Russian gas, petroleum products, and unrefined diamonds to Armenia was signed in 2013 and ratified in 2014. It applies exclusively to domestic consumption volumes and prohibits re-export. In an interview with Vesti today, Russian Deputy Prime Minister Alexei Overchuk noted that a difficult situation regarding gas supplies could develop in Armenia, though Russia is not interested in such an outcome.
According to Overchuk, Armenia will effectively have no alternative to Russian gas, and the key issue will lie in its supply route. "They [Armenia] just need to look at the map and see which pipelines are operational even now. They will immediately see who they will be receiving Russian gas from, factoring in a 30% export duty, the market price, and the fact that intermediaries will also want their share of the revenue," the Deputy Prime Minister said. He noted that under such a scenario, gas for Armenia could become significantly more expensive due to duties, market pricing, and the involvement of intermediaries.
According to the latest data from the Customs Service, in the first half of 2025, Armenia imported 79.5% of its natural gas—amounting to 1,127,447 cubic meters—from the Russian Federation. Year-on-year volumes decreased by 0.1% in both quantitative and value terms, totaling $195.9 million. Additionally, 99.1% of liquefied petroleum gas (LPG) supplied to Armenia originated from Russia, exceeding 126,871.9 tons. This represents a 30.6% increase in volume and a 45.6% increase in customs value, reaching $42.1 million.
