Russia’s grip on armenian energy sector loosening _ oilprice. com

Russia’s economic grip over Armenia may be loosening ever so slightly, highlighted by Moscow’s diminishing role in the South Caucasus country’s power sector.

Russian gained control over Armenian power plants and the national gas distribution network as a result of controversial assets-for-debt agreements with the Armenian government in 2003-2006. Gas finder mn These days, state-run Russian corporations supply the bulk of natural gas consumed by Armenians. Gas bubble in chest and back Russian companies likewise own many of Armenia’s key energy assets, providing the Kremlin with lots of economic leverage over a country that it considers its closest ally in the Caucasus.

But Russia’s commanding economic presence now seems to be on the wane. Electricity 2014 One of the Kremlin-controlled energy giants, Inter RAO, essentially pulled out of Armenia late last year, selling the country’s debt-ridden electricity distribution network and largest thermal-power plant to the Tashir Group, a collection of companies run by Armenian-born businessman Samvel Karapetian. 1 unit electricity cost in andhra pradesh Power plants controlled by the Russian state now account for only up to a quarter of Armenian electricity production, according to a calculation based on National Statistical Service data.

Last year also saw the sale of Armenia’s largest hydroelectric complex to an American entity, the New York-based ContourGlobal. Electricity images cartoon The $250-million deal marked the largest single private investment coming from the United States in Armenia’s history.

The planned construction of a major hydroelectric station on the Arax River between Armenia and Iran should further diversify the power sector. Electricity cost calculator The recent lifting of international sanctions against Iran is expected to speed up the repeatedly delayed implementation of the estimated $300-million project.

In recent months, the Armenian government has also reported preliminary agreements with European investors interested in building two new thermal-power plants in Armenia. 2015 electricity prices The World Bank cautioned in a June 2015 report that the country will need an additional 250 megawatts of gas-fired power by 2020 to avoid an electricity shortage.

Analysts caution that these developments alone will not significantly reduce Armenia’s dependence on Russia for energy. Electricity multiple choice questions grade 9 “Ownership of the power plants, be it Russian or American, doesn’t matter that much,” said Artur Kochnakian, a senior energy economist at the World Bank office in Yerevan. Electricity for beginners “It has no direct connection with energy security.” Related: Holding 30% Of June Brent Crude Contracts, Is Glencore Manipulating Oil Prices

Kochnakian noted that Russia continues to deliver more than 80 percent of the natural gas used by Armenia and is the sole supplier of fuel to the Metsamor nuclear plant, which produces more than one-third of the country’s electricity. Gas stoichiometry problems Russia’s Gazprom monopoly also owns the country’s gas distribution network.

Armenia has been paying for Iranian gas with electricity generated at a thermal-power plant located in Yerevan. Electricity physics khan academy Its power supplies to the Islamic Republic should rise sharply following the construction of a third electricity transmission line connecting the two neighboring countries. Gas house eggs Work on that line began last year and is due to end in 2018.

A similar new high-voltage facility will also connect Armenia to Georgia. Electricity projects for grade 7 The $115-million project, slated for completion by 2018, is mainly financed by Germany and the European Union. Gas nozzle stuck in car It will allow Armenia to increase its imports of cheap electricity from Georgian hydroelectric stations during the spring and summer, Armenian Deputy Energy Minister Areg Galstian said on April 13. World j gastrointestinal oncol impact factor That would presumably make Armenia less reliant on the more expensive supplies from domestic power plants using Russian gas. 3 gases in the atmosphere Related: Oil On Track To Balance Later This Year

The government has decided to move plans of a routine shutdown at the Metsamor nuclear power station to Mat 2017 so that Georgian hydroelectricity, at peak strength in spring and summer, can be imported. Electricity for refrigeration heating and air conditioning answer key Using Russian gas to supply thermal-power plants would be more expensive.

While Russia may have growing competition in Armenia’s energy sector, Moscow appears determined to remain a big energy player in the Caucasus energy equation. V gashi kenga e zagrebit Galstian spoke to journalists after the energy ministers of Armenia, Iran and Russia and a Georgian deputy energy minister tentatively agreed to increase significantly electricity supplies among their countries. Grade 9 electricity quiz They signed a “roadmap” for the creation of a “North-South energy corridor” by 2019.

As economic analyst Ashot Khurshudian cautioned, diversification of ownership in the energy sector “is certainly reducing some of our energy-related risks,” but the impact of that diversification should not be overestimated.

In particular, Armenian utility regulators have for years put Gazprom and Russian nuclear fuel suppliers “in a privileged position,” said Khurshudian, who works at the International Center for Human Development (ICHD), a private think-tank in Yerevan. Electricity terms and definitions “They always get payments for supplies on time, unlike generation and distribution companies,” he claimed.

One of those supposed companies, a thermal-power plant located in the central Armenian town of Hrazdan, is owned by Gazprom. Electricity jeopardy game Hrazdan is also home to another, bigger and much older, plant that belonged to Inter RAO until September 2015. Electricity usage by appliance The Russian company sold it, along with the Electricity Networks of Armenia (ENA) national power utility, to Russian-Armenian billionaire Karapetian’s Tashir Group. Gas nozzle prank Related: Petrobras Offloads $1.4B In Assets Amidst Political Turmoil

Born and raised in Armenia, Karapetian since the early 1990s has lived in Russia, where he made a fortune valued by Forbes magazine at over $4 billion. Electricity load shedding The tycoon has always had closer ties with the Armenian government than the Kremlin. Gas efficient suv 2015 His brother, Karen, is a former chief of staff for President Serzh Sargsyan, and a parliamentary deputy for Sargsyan’s Republican Party of Armenia.

Building profitable businesses appears to be Samvel Karapetian’s main interest. Electricity generation by state Shortly after acquiring ENA, Karapetian pledged to crack down on “corrupt employees,” to modernize facilities and make the distribution network profitable. Electricity 101 presentation Meeting with visiting executives from Moody’s credit ratings agency in February, then-Armenian energy minister Yervand Zakharian claimed that the new ENA management had already cut the company’s massive losses. Electricity year invented This has contributed to the overall energy sector’s “financial stability,” an Energy Ministry statement quoted Zakharian as saying.

The ICHD’s Khurshudian also believes that ENA has benefited from the change in ownership. Gas 85 “The sale of the Inter RAO assets was definitely a positive development because private firms tend to be more efficient than state-owned ones,” he said.

Regulators have announced plans to reduce power prices within the next month; a decision facilitated, at least in part, by a reduction in ENA’s losses. Electricity and magnetism connect to form The only other Armenian power-generating facility currently owned by a state-run Russian company is the Sevan-Hrazdan Cascade, a complex of seven hydroelectric plants. Electricity 24 hours Russian media reported in November that the owner, RusHydro, is now prepared to sell it.