#ElectricYerevan: Has President Sargsyan Found a Way Out of the Impasse?

#ElectricYerevan protest against electricity rate hikes.

On June 27, Armenia’s President Serzh Sargsyan met with his economic advisors. During that meeting the ongoing street demonstration that had shut down Baghramyan Avenue and come to be known around the world as #ElectricYerevan,was discussed.

According to a statement released by the President’s office, Sargsyan has proposed that an internationally renowned consulting company be commissioned to conduct an audit of the Russian-managed Electric Networks of Armenia regarding the rate hike, and if necessary, include the organizers of the protest movement to answer the following questions: Was the rate hike justified? If the rates for electricityare not increased, what threat would it present to Armenia’s energy system?

“I am convinced that suspending the rate hike is extremely dangerous. Thereby, until that company can summarize its findings, the government will bear the full cost of the rate hike. Certainly, we will not touch ongoing programs or social benefits, those funds will come from means envisaged for security measures. It is true that our security issues are far from being resolved,” said Sargsyan.

It is unclear whether this announcement is connected to a low interest $200 million loan from Russia that was signed yesterday between Armenian President Serzh Sargsyan and Russian Transport Minister Maksim Sokolov.