Home Moscow Warns Yerevan: Gas Agreement at Risk Amid EU Integration Efforts

Moscow Warns Yerevan: Gas Agreement at Risk Amid EU Integration Efforts

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YEREVAN, May 27 – Russia’s Energy Minister, Sergey Tsivilev, has sent a letter to the Armenian Ministry of Territorial Administration and Infrastructure, cautioning about the potential unilateral termination of a gas agreement. This development was reported by “Kommersant” yesterday.

Russia Threatens to Halt Energy and Diamond Supplies

The letter explicitly states that Russia may unilaterally suspend or cancel the agreement on the supply of natural gas, petroleum products, and rough diamonds to Armenia, signed in December 2013, if official Yerevan continues its process of joining the European Union.

“The ongoing practical steps aimed at deepening Armenia’s interaction with the European Union and the Armenian government’s declared aspiration to join the EU jeopardize the preservation and development of the fundamental high level of Armenian-Russian trade, economic, and investment cooperation, which is based on bilateral international treaties,” the letter reads.

Tsivilev further elaborated that Armenia’s attempts to join the EU are inconsistent with the nature of the partnership built over decades between the two countries on the basis of respect and mutual benefit, and with Russia’s repeated actions aimed at providing Armenia’s most important needs on preferential terms.

The 2013 Agreement: Key Provisions and Implications

Under the 2013 agreement, Russia indefinitely canceled export duties on petroleum products, gas, and diamonds supplied to Armenia. This was a significant step on Armenia’s path to joining the Eurasian Economic Union (EAEU).

According to the agreement, Moscow supplies Yerevan with petroleum products and gas in volumes for domestic consumption, as confirmed by indicative balances. Re-export to third countries is prohibited. The document also stipulates that in the event of the agreement’s termination by either party, Armenia’s obligations to compensate Russia or recognize unpaid amounts as state debt to Russia will remain in force until their full fulfillment.

Concerns from EAEU Countries

Earlier, Yuri Ushakov, Assistant to the President of Russia, stated that decisions made by Yerevan regarding potential membership in the European Union, and consequently the impossibility of cooperation with the Eurasian Economic Union, raise concerns for EAEU countries.

Geopolitical Context and Future Outlook

This warning from Russia comes amidst Armenia’s increasing efforts to diversify its foreign policy and strengthen ties with Western partners. The potential termination of the energy agreement could have significant economic implications for Armenia, which heavily relies on Russian energy supplies.

The Armenian government has not yet issued an official response to Tsivilev’s letter. Analysts suggest that Yerevan will face a difficult choice between its aspirations for European integration and maintaining its strategic partnership with Russia, particularly concerning crucial energy and economic ties.

The situation highlights the complex geopolitical landscape in the South Caucasus region and the delicate balance Armenia must maintain in its foreign relations.

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