A working meeting between Alexey Miller, Chairman of the Gazprom Management Committee and Serzh Sargsyan, President of the Republic of Armenia took place today in Yerevan as part of Gazprom delegation's visit to Armenia.

The parties addressed the main cooperation issues in the energy sector. It was stressed that the international agreements signed in December 2013 gave a major boost to further economic development of Armenia.

A focus was placed on prospective activities of Gazprom Armenia (former ArmRosgazprom), which became a wholly-owned subsidiary of Gazprom. The meeting noted that enhancing the reliability of gas supplies to Armenian consumers was the main priority of the company.

Alexey Miller and Serzh Sargsyan agreed to jointly develop a General Gas Supply and Gasification Scheme of Armenia.

As part of the visit, Alexey Miller met with employees of Gazprom Armenia.

In addition, special attention was paid to the ongoing integration of Gazprom Armenia into Gazprom. It was highlighted that adjusting the corporate standards of Gazprom Armenia in alignment with those accepted in Gazprom would significantly improve the company's performance. The meeting also considered the production and marketing outlook of Gazprom Armenia.

“Gazprom's expansion in Armenia guarantees sound and sustainable development of Armenian fuel and energy sector, fortifies its energy security and significantly contributes to the socioeconomic growth of the country,” said Alexey Miller.

Background

Armeniadoes not produce natural gas and the country's power generation sector is almost fully dependent on gas imports. Gazprom Export delivers gas to the border with Armenia where it is purchased by Gazprom Armenia. In 2013 Gazprom Group supplied Armenia with 1.96 billion cubic meters of natural gas.

Gazprom Armenia is focused on natural gas supplies to the Armenian market. In addition, the company transports, stores, distributes and sells natural gas as well as upgrades and expands gas transmission and underground gas storage systems in the Republic of Armenia.

Gazprom owns 100 per cent of Gazprom Armenia according to the intergovernmental Agreement signed in December 2013 between the Ministry of Energy of the Russian Federation and the Ministry of Energy and Natural Resources of the Republic of Armenia.

In December 2013 Gazprom and Gazprom Armenia signed a contract for Russian gas supply to Armenia from 2014 to 2018. According to the document, Gazprom will annually provide Armenia with up to 2.5 billion cubic meters of gas and its price will be determined by a price formula linked to the pricing mechanism for natural gas in Russia.