In a recent report commenting on the the Russian Federation Council chairperson’s visit to Armenia, Nezavisimaya Gazeta has elaborated on the motives behind the EU decision to suspend financial assistance to Armenia and the possible developments related to the Russian loan.

“Russian Federation Council Chairperson Valentina Matviyenko departed yesterday for Yerevan on an official visit. Official reports suggest that meetings with Armenian President Serzh Sargsyan and National Assembly Chairman Hovik Abrahamyan focused on the strategic partnership with Russia. But an NG [Nezavisimaya Gazeta] source close to the Armenian Government says Yerevan sought to persuade Moscow to temporarily suspend the plan on raising the natural gas price and provide the regular loan,” the Russian publication says, noting that the amount to be allocated to Armenia makes $ 1 million.

The paper says that the reports about the Russian loan emerged in late May after it became clear that the EU is not planning any financial assistance for Armenia on account of what is claimed to be a failure to ensure a proper conduct of the parliamentary polls. It then quotes a spokesperson for Stefan Fule, Commissioner for Enlargement and European Neighbourhood Policy, as saying that Armenia’s request would be considered in the light of the 2013 presidential election. According to the paper, Yerevan hastily turned to Russia’s side, asking for an 1,8 billion loan at the highest interest rate.

Director of the Center for Strategic Analysis Spectrum, Gayane Nvikova, was reported as saying that Russia is less concerned by the democratic processes on the post-Soviet territory, with its hard line on Armenia being more of an economic nature. The expert reportedly promised that Armenia will receive the expected amount.

She said further that Russia, unlike the EU, is not linking its loan assistance with the presidential elections.

“Cynics may claim that Armenia is given the Russian loan in order pay for the Russian natural gas or is being punished for a refusal to join the Customs Union or the Eurasian Union,” says the paper.

But the author of the article notes that loan is not a number one issue in the Russian-Armenian dialogue, with the negotiations over the gas tariffs being in progress for several weeks now.

“Yerevan presently pays $180 per 1,000 cubic meters of natural gas. The tariff hasn’t changed over the past three years. A dramatic surge in the domestic prices will inevitably lead to mounting protests not only by the opposition, which turns any situation to its advantage, but also the pensioners and the socially disadvantaged who constitute the major part of the electorate. Yerevan, in this connection, has to make haste to persuade Moscow to delay the surge in gas price, as well as avoid making the records on new prices public,” reads the article.