Yerevan assesses the consequences of a potential rise in Russian gas prices

In Yerevan, Minister of Finance Vahe Hovhannisyan and Minister of Economy Gevorg Papoyan stated on November 2 that a potential sharp increase in the price of Russian natural gas would not deal a devastating blow to the Armenian economy, as reported by The Armenian Mirror-Spectator.

Speaking in the National Assembly, Vahe Hovhannisyan urged against apocalyptic assessments and recalled that similar concerns were voiced last year. At the same time, Gevorg Papoyan acknowledged the possibility of a tariff review, noting that the government is already preparing response plans in case such a scenario develops.

The statements were prompted by a joint report from the governments of Russia, Belarus, Kazakhstan, and Kyrgyzstan. The document claimed that if Armenia's membership in the Eurasian Economic Union were suspended, gas prices would jump by at least 69%, and the country's economy would shrink by more than 15%. Papoyan rejected these calculations, stating that such a deep recession would not occur even with a fourfold increase in tariffs.

In May, Russian Energy Minister Sergey Tsivilev sent an official warning to Yerevan regarding the possible cancellation of subsidized fuel rates. Russia remains Armenia's main trading partner, accounting for 27.5% of the republic's foreign trade turnover in the first half of the year. Despite the disagreements, Papoyan emphasized that the allies have no legal basis for suspending Yerevan's participation in the EAEU, calling such steps illegal.