Yerevan assesses the consequences of higher gas prices from Russia

A possible increase in the price of natural gas supplied to Armenia from Russia is projected to slow Armenia's economic growth by at least 5 percentage points, Armenian Minister of Economy Gevorg Papoyan said.

"A change in the price of gas could affect the economy by 5-7 percentage points, maybe even more," he said, calling such a scenario undesirable.

"Nevertheless, this (the gas price increase) will not create a hopeless situation. But it is extremely undesirable. An increase in the price of gas is undesirable, but I think that over time purchasing gas at market prices should become logical," the head of the Ministry of Economy said.

According to him, "it is necessary to think about buying everything at market prices."

"If we do not buy something at the market price, then one way or another we will still have to pay for it, because no country will simply sell us something cheaply," Papoyan said.

The report "On the possible consequences of suspending for the Republic of Armenia the operation of the Treaty on the Eurasian Economic Union of May 29, 2014" notes that gas imports for Armenia would become 69% more expensive if its membership in the EAEU were suspended. It also states that the suspension of Armenia's membership in the EAEU would lead to a deterioration of its economic indicators.

Source: Interfax