The launch of the single energy market of the Eurasian Economic Union (EAEU), which was planned for 2025, is postponed until 2027.
This was stated at the meeting of the parliamentary commission on regional and Eurasian integration on March 11th by Armenia's Deputy Minister of Territorial Administration and Infrastructure, Akop Vardanyan, emphasizing the lack of consensus among the EAEU member states on this issue.
One of the main points of contention, according to him, is the issue of the simultaneous operation of the single market and bilateral gas supply agreements. Specifically, Russia and Kazakhstan, as noted by Armenia's Deputy Minister of Territorial Administration and Infrastructure, insist that bilateral gas supply agreements should remain in effect alongside the operation of the single energy market until their expiration.
This approach, as noted by Deputy Minister Vardanyan, is unacceptable for Armenia, whose agreement with Russia regulating gas supplies will only expire in 2043.
"In this regard, we believe that this is not feasible, as the entire volume of supplies is regulated by a bilateral agreement. Thus, in its current format, the single market will not be as effective, not only for us but also for everyone else," stated Vardanyan, pointing out another contentious issue regarding establishing a unified gas price for all consumers.
During the discussions, the parties agreed that the gas price should be uniform at the production site, but disagreements arise regarding its formation during supply, said Akop Vardanyan, noting that here too, the positions of Russia and Kazakhstan, as energy resource-producing countries, differ from the others.
Moscow and Astana, as explained by Akopyan, insist on establishing a two-tier pricing system due to differences in subsidy programs within these countries. This means that the price for the domestic market will differ from the price for other EAEU countries.
In February 2024, Armenian Prime Minister Nikol Pashinyan stated during a meeting of the Eurasian Intergovernmental Council in Almaty that the EAEU member states do not yet have a unified approach to building and developing a common energy resource market, although the launch of common gas, oil, and oil product markets is planned for 2025.
According to Pashinyan, the creation of a common energy resource market will provide several key advantages, contributing to sustainable economic development, improving the welfare of the population, and strengthening energy security.
