Bubble of Gazprom Burst: First Step Taken

Armenia


The State Revenue Committee has informed that companies owned by Gazprom Armenia, including Autogas, Autostop, GAOM Group, Gaz Group, Arzni Gaz, Fakel Gaz and Nakhshin, declared lower sales of gas in 2016-2018 and avoided taxes in the amounts of58,700,000, 14,900,000, 168,400,000, 79,400,000, 53,000,000, 25,700,000 and349,500,000 AMD respectively.

The message of the SRC indicates that Gazprom Armenia steals gas from itself. As the ex-prime minister of Armenia and ex-top manager in Gazprom Karen Karapetyan said, “primitive theft” generates immense “dark” money.

The other companies which also declared lower sales could not have done this without the knowledge of Gazprom Armenia which has a gas monopoly. Moreover, their owners are not just random people.

As is known, Armenia buys gas at one of the lower prices in the world. However, on this side of the border the price of gas doubles. In answer to different inquiries Karen Karapetyan took a pencil and paper and justified the price, and the relevant agencies in Armenia and the representatives of Gazprom Armenia repeated his words. However, no articulate explanation has ever been given because it is impossible.

And while the head of the committee which sets the prices of gas, electricity and water announced in parliament that he wanted to die, and Hovik Abrahamyan asked him not to die and think about ways of keeping the price of gas low and leaving the profit of Gazprom unchanged.

By the way, the line “losses” appears in the breakdown of the gas price. Now the revelation by the State Revenue Committee explains how the “losses” are generated, and who covers these losses. The “losses” are included in the price of gas on this side of the border, in other words, the user pays both their bills and the bills of the thieves.

There was a broad consensus in Armenia over this matter. Not only Gazprom Armenia, but also government officials and members of parliament who enjoyed political and economic quotas stole their “share” of gas. Therefore, Hovik Abrahamyan’s primary concern was to ensure that Gazprom Armenia’s profits do not go down. Otherwise, the profit would go down in the first place though it would not be enough.

The new government states that it is necessary to study how the price is formed on this side of the border, and the problem is on the Armenian side. This is the first and most important step made by the SRC in this direction.



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