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Eurasian Economic Union

Yerevan says single EAEU energy market not to be formed by 2027

There is no consensus inside the EAEU on the fact that principles of gas price formation should be equal for all, Deputy Minister for Territorial Administration and Infrastructure of the Republic of Armenia Hakob Vardanyan said

YEREVAN, March 11. /TASS/. The EAEU’s (Eurasian Economic Union) single market of energy resources will not be formed by 2027, with issues remaining on which a consensus has not yet been reached, Deputy Minister for Territorial Administration and Infrastructure of the Republic of Armenia Hakob Vardanyan said.

"I would like to note that it was planned to start practical application of single markets of gas and electricity in the EAEU in 2025, but at the moment inside the EAEU rescheduling of this project is being discussed. I think that it will be postponed until 2027. For example, there are 5-7 issues related to the single gas market, on which the countries have not reached a consensus," he said addressing the parliament.

There is no consensus inside the EAEU on the fact that principles of gas price formation should be equal for all, deputy minister said. "Russia and Kazakhstan are against as they believe that the principles of gas price formation for their domestic markets should be different. Moreover, after the start of the single gas market all bilateral contracts should cease to be effective, however, countries that have gas such as Russia and Kazakhstan, do not agree with it as they think that contracts should remain in effect until their expiration. In our case, for example, it will be 2041. Armenia is against it, for example. Those are two key issues, on which a consensus has not been reached yet," he said.

Regarding the formation of the single electricity market, Armenia that has no common border with the EAEU, has a difference of opinion. "I am not as optimistic regarding the fact that we will be able to fully integrate into this market as we have no common border. Imagine that we find a good price on the exchange, we have to reach an agreement with the other country, Georgia, where the same mechanism does not always work. Integration of this market will be rather difficult for us," the official concluded.

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