Azernews.Az

By Laman Sadigova

Armenian government expects a positive response from Russia to its appeal to reduce gas prices.

Premier Hovik Abrahamyan motivated it by his country tight strategic relations with the Northern giant.

Although no details are disclosed, but Armenia expects prices to be lower from the current $165 to $140 per 1,000 cubic meters -- the price Russia supplies its gas to Belarus.

Consumers in Armenia pay the highest price for gas in the world - about $400 per 1,000 cubic meters. Despite of the demands of society and various parliamentary committees, no one bothered to explain why a consumer price of gas on this side of the border is more than doubled.

As is the case with the Armenian power grids, the pricing on gas does not exclude losses and dubious criminal schemes. The Armenian press frequently report about the luxury lifestyle of former and current leaders of Gazprom-Armenia, referring to their criminal past.

Just as in the electricity sector, all the calculations show that the consumer prices can be reduced even if Russia declines making discounts on gas at the border. It is enough to cut taxes, but it would reduce the revenues of the ruling elite and their growing capitals.

Now the situation is aggravated by the fact that Armenia has to undertake some steps to fix the situation because poor people, half of which cannot find a job, are unable to pay increasing fees.

Even if Russia agrees upon generous discounts, the Armenian officials will hardly make the same offer to the people. They will only slightly improve their position, still earning money illegally. Inappropriate domestic policies of the government, imbalanced business environment and privileged monopolists in Armenia have cemented the 105th place for it among 144 countries in terms of the effectiveness of antitrust policy.

The people in this weak post-Soviet country are still afloat only because external transfers of their luckier relatives, who managed to flee from Armenia. Now, when even these modest incomes came to naught –decreased by 32.3 percent -- the situation became even tenser.

Reducing flow of private transfers to Armenia has affected not only the solvency of the population in general, but also on the solvency of Armenian manufacturers and exporters, what lead to an increased amount of non-performing loans.

The newly adopted 2016 public budget has also left no hope for a better year because of its high deficit rate.

The government that is not interested in the well being of the nation, is not likely to ensure a stable life and prosperity. Armenian authorities rob the people endangering with next social and economic collapse.

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Follow Laman Sadigova on Twitter: @s_laman93

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