Russia says Armenia could lose cheap gas if it turns away, ahead of Rubio visit - Finance news and analysis from Global Banking & Finance Review
Finance

Russia says Armenia could lose cheap gas if it turns away, ahead of Rubio visit

Published by Global Banking & Finance Review

Posted on May 26, 2026

3 min read

· Last updated: May 26, 2026

Add as preferred source on Google

Russia Warns Armenia: Energy Costs Could Rise If EU Path Continues

Armenia's Energy Dependence and Political Crossroads

Kremlin's Warning on Gas Prices

MOSCOW, May 25 (Reuters) - The Kremlin on Monday said Armenia could lose the "very attractive" price it pays for Russian gas if it turned away from integration with Russia, ahead of a visit by U.S. Secretary of State Marco Rubio.

Armenia's Economic Ties with Russia and the EU

Armenia is a member of a Russian-led economic union and heavily dependent on Russia for energy supplies, but in recent years it has sought deeper ties with the European Union, including adopting a law last year to launch its accession process to the bloc.

Kremlin's Statement on Gas Pricing

"There is a very, very attractive and more than preferential price for Russian gas," Kremlin spokesman Dmitry Peskov told reporters, when asked about relations with Armenia.

"But, of course, such terms are not available to participants in other integration frameworks. There, the pricing structure is entirely different. It is market-based."

Armenia's Position and Diplomatic Engagements

Statements from Armenian Officials

Armenian Foreign Minister Ararat Mirzoyan said Armenia had no interest in severing political and economic ties with Russia.

"We want and will strive to preserve and deepen our normal relations," Russian news agency Interfax quoted him as telling reporters in Yerevan on Monday.

Upcoming Diplomatic Talks

On Tuesday, Rubio is set to visit Armenia for talks with Mirzoyan, the State Department said on its website, adding that the two plan to attend a memorandum-of-understanding signing ceremony. It did not provide further details.

Context: Russia-Armenia Relations and Regional Tensions

Recent Strains in Bilateral Relations

Ties between Russia and Armenia - which hosts several Russian military bases - have grown increasingly rancorous since Azerbaijan forcibly retook the breakaway region of Nagorno-Karabakh in September 2023 despite the presence of Russian peacekeepers.

Gas Pricing Discussions and Political Developments

Russian President Vladimir Putin raised the issue of gas pricing at a meeting with Armenian Prime Minister Nikol Pashinyan in April, saying that Yerevan paid $177.50 for 1,000 cubic metres of gas from Russia that would cost over $600 in Europe.

"The disparity is vast," Putin said.

The Russian leader also told reporters on May 9 that it would be "logical" for Armenia to hold a referendum on its EU aspirations.

Upcoming Armenian Elections

Armenia holds a parliamentary election in June that pits Pashinyan's party against an array of opposition parties, many of which are pro-Russian. 

(Reporting by Anastasia Lyrchikova; additional reporting by Jekaterīna Golubkova in TokyoWriting by Alessandra Prentice; editing by Guy Faulconbridge and Ros Russell)

Key Takeaways

  • Kremlin warns Armenia’s cheap Russian gas could become market‑priced if it leaves the Eurasian Economic Union, underscoring tension over EU integration (arka.am)
  • Armenia currently pays about $177.50 per 1,000 m³ for Russian gas, compared to over $600 in Europe, highlighting the dramatic pricing disparity (arka.am)
  • Despite pressure, Armenian leaders affirm intent to maintain strong ties with Russia, even as they pursue deeper EU cooperation and host Euro‑related summits (theguardian.com)

References

Frequently Asked Questions

Why might Armenia lose its preferential gas pricing from Russia?
Russia has warned Armenia could lose its 'very attractive' gas price if it pursues deeper integration with the European Union instead of remaining aligned with Russia.
How much does Armenia currently pay for Russian gas?
Armenia currently pays $177.50 per 1,000 cubic metres of Russian gas, a price significantly lower than what European countries pay.
What is the significance of Marco Rubio's visit to Armenia?
US Secretary of State Marco Rubio is visiting Armenia for talks and to attend a memorandum-of-understanding signing ceremony, indicating increased Western engagement.
How have Armenia-Russia relations changed recently?
Relations have grown tense since Azerbaijan retook Nagorno-Karabakh, despite the presence of Russian peacekeepers, and amidst Armenia's moves toward closer EU ties.
Is Armenia planning to end ties with Russia?
According to Armenian officials, the country does not intend to sever political or economic ties with Russia and wants to maintain normal relations.

Tags

Related Articles

More from Finance

Explore more articles in the Finance category