ArmInfo.. Commenting on the statement of the Armenian Prime Minister on the need to formulate single gas tariffs in the EAEU, it should be noted that there is no such issue on the agenda of the Union today and there cannot be any due to different levels of development and different models of functioning of energy markets. Director of the Institute for Energy Security, Doctor of Political Sciences Vahe Davtyan expressed a similar opinion to ArmInfo.
"For the formation of a single tariff, it is necessary first to ensure a unified financial and tax system. Meanwhile, Eurasian integration is still far from this. Moreover, even in different countries of the European Union or MERCOSUR, in which energy integration is at a very high level, various internal tariffs apply gas.
Speaking at the online summit of the EAEU leaders on May 19, Prime Minister of Armenia Nikol Pashinyan stated that global challenges dictate the EAEU the urgent need to form a common gas market. "The formation of a single system of gas tariffs is a necessity that is felt especially urgently in Armenia. I am convinced that the common market will contribute to increasing the competitiveness of goods by increasing the potential of the EAEU many times. Without this, ensuring equal business conditions for all states is impossible," he emphasized.
According to Davtyan's estimates, when commenting on the Russian gas pricing policy for the EAEU member states, it's important to understand that, by and large, there are two pricing models: spot and long- term. "The first model is applied, for example, in relation to EU countries. Trading is carried out on the exchange, which is why gas prices there have recently been falling due to falling demand and mild winters. As for the pricing policy of Russia in the post-Soviet space, in this case, a long-term model is applied, which involves setting prices, usually for a year, "he said.
According to the expert, the question naturally arises: Why Armenia, Belarus etc. do not switch to spot price model.? A similar transition, in his opinion, is of course possible. However, only subject to the liberalization of national markets for the creation of a gas exchange, which, in fact, is provided for by the program for the formation of the common gas market of the EAEU from 2025. "At the same time, it is important to understand that spot prices are not always low prices. Just a couple of years ago on the European market, the price of gas ranged from $ 200 to 240," he said.
To note, in his response at the same EAEU summit, Russian President Vladimir Putin pointed out that a single gas tariff in the EAEU implies a single market, a single budget, a single taxation system. Meanwhile, a similar level of integration in the EAEU, according to his estimates, has not yet been achieved. Accordingly, while prices should be formed on the basis of market conditions, taking into account costs, investments, providing profit for suppliers.
"The formula of the EAEU countries for gas prices proposed by the draft EAEU Development Strategy until 2025 is supported by Russia, Kazakhstan and Kyrgyzstan. Our Armenian and Belarusian colleagues have not yet adopted this formula. They have their own point of view on this issue, which consists in creating single tariffs. I think that if the positions of our colleagues remain unchanged, it would probably be logical to exclude the item on gas from the draft strategy and approve it at the summit today. Discussion of approaches to gas pricing can be continued through experts from the EAEU and the EEC", Putin said.