Eurasian Economic Union report warns of 69% gas price hike for Armenia

A report prepared by representatives from Russia, Belarus, Kazakhstan, and Kyrgyzstan suggests that Armenia could face a 69% increase in natural gas import costs if it suspends its membership in the Eurasian Economic Union (EAEU).

According to the document, the calculated price of gas could rise from $177.5 per thousand cubic meters to $300. This increase could raise annual gas import expenditures from $389 million to $657.5 million. The report also forecasts significant macroeconomic shifts in the event of EAEU suspension, including a potential 15.6% decrease in Armenia's GDP, a 14.9 percentage point rise in inflation, and a 14.6% reduction in consumption.

While the $300 figure is an estimate and actual contract prices may vary based on international market conditions, the scenario poses risks to the broader economy. Higher energy costs could increase production expenses, raise the cost of heating and electricity, and ultimately exert upward pressure on the prices of goods and services.