Gas strike": Armian saw a 69% price increase as a direct threat to the Armenian economy Former Minister of Finance Verdan Armian believes that a possible increase in gas prices will seriously damage Armenia's economic potential. Therefore, he agrees with the warning of the head of the central bank, Martin Galastian, against an extremely unfavorable, almost "apocalyptic" scenario. According to Armian's calculations, if the gas supplied to Armenia increases by 69%, the price for end consumers will increase by about 29% - from 143 to 185 drams per cubic meter. Glastian previously said that raising gas prices could lead to an "apocalyptic" scenario. On October 22, Prime Minister Nikol Pashinyan, referring to the report of the four member states of the EAEU, in which growth of about 69% was allowed, said that he does not expect an "apocalypse" for Armenia, and those who think so do not understand economics. Armian sees several spheres of influence. The first is social: even if the government subsidizes service costs for vulnerable groups, the price increase will be difficult for the middle class. Households will start spending more on gas and less on other goods and services, which will reduce demand and mainly harm commerce and the service sector. The manufacturing sector, from agriculture to heavy industry, will be hit the hardest, he said. For some businesses, profit margins will be able to withstand a 69% increase in price, but for others not. For example, financial services that do not directly consume gas may feel little or no problem. But agriculture and heavy industry, where gas makes up a large part of the costs, will inevitably face difficulties. This would be a direct blow to the country's economic potential. Therefore, Armian believes, Galastian was talking about an extreme scenario, and he agrees with this prediction. Referring to possible subsidies, Armian noted that they are financed from the state budget, that is, at the expense of the citizens, and cannot fall on the budget indefinitely. If you subsidize them all, the costs will be very high.

Gas strike": Armian saw a 69% price increase as a direct threat to the Armenian economy Former Minister of Finance Verdan Armian believes that a possible increase in gas prices will seriously damage Armenia's economic potential. Therefore, he agrees with the warning of the head of the central bank, Martin Galastian, against an extremely unfavorable, almost "apocalyptic" scenario. According to Armian's calculations, if the gas supplied to Armenia increases by 69%, the price for end consumers will increase by about 29% - from 143 to 185 drams per cubic meter. Glastian previously said that raising gas prices could lead to an "apocalyptic" scenario. On October 22, Prime Minister Nikol Pashinyan, referring to the report of the four member states of the EAEU, in which growth of about 69% was allowed, said that he does not expect an "apocalypse" for Armenia, and those who think so do not understand economics. Armian sees several spheres of influence. The first is social: even if the government subsidizes service costs for vulnerable groups, the price increase will be difficult for the middle class. Households will start spending more on gas and less on other goods and services, which will reduce demand and mainly harm commerce and the service sector. The manufacturing sector, from agriculture to heavy industry, will be hit the hardest, he said. For some businesses, profit margins will be able to withstand a 69% increase in price, but for others not. For example, financial services that do not directly consume gas may feel little or no problem. But agriculture and heavy industry, where gas makes up a large part of the costs, will inevitably face difficulties. This would be a direct blow to the country's economic potential. Therefore, Armian believes, Galastian was talking about an extreme scenario, and he agrees with this prediction. Referring to possible subsidies, Armian noted that they are financed from the state budget, that is, at the expense of the citizens, and cannot fall on the budget indefinitely. If you subsidize them all, the costs will be very high.