Armenian Energy Dependence on Russia
Eurasianet has yet another insightful analysis on the situation in Armenia by RFE/RL’s Emil Danielyan. This time the focus is on the energy sector and Armenia’s dependence on Russia. However, there’s a twist. The article doesn’t deal with the import of power from abroad, but rather the way in which Yerevan appears happy in handing over the Republic’s local energy resources to Moscow.
After more than a year of negotiations, Russia has completed the acquisition of Armenia’s power distribution network, tightening its grip on the Armenian energy sector. The Armenian government says the $73-million takeover will breathe new life into the Electricity Networks of Armenia (ENA). But government critics have denounced it as a further blow to the country’s energy security.
[…]
Critics, however, claim that Armenia’s energy dependence on Russia has reached a critical level, posing a serious threat to the Caucasus state’s sovereignty. According to Eduard Aghajanov, an economist critical of the government, ENA’s sale all but completed the country’s “energy colonization” by Moscow. “It is inadmissible to give everything to one state, especially in the area of energy,” he told EurasiaNet. “Russia is now in a position to impose its will on us in both the economic and political spheres at any moment. We are tying a noose around our neck.”
After the fiasco of handing over a 15 year monopoly on telecommunications to ArmenTel that set Armenia years behind Georgia and Azerbaijan especially in the area of the Internet and mobile telephony, I fear Aghajanov is right. The full article is here.
Round Up: Georgia, Armenia, Iran, and Gazprom
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Trackback by Robert Amsterdam — November 10, 2006 @ 3:43 am