Wednesday, August 8, 2007, #150 (1417)

Gazprom won't raise prices on Georgia, company official promises

Gazprom will not increase the price of Russian natural gas for Georgia in 2008, Gazprom official Sergey Kuprianov announced to Russian radio station Ekho Moskvi.

In January 2007, Gazprom prices increased from USD 110 to USD 235 per thousand cubic meters of natural gas. Gas bought from Azerbaijan costs Georgia USD 120 per thousand cubic meters, according to the news agency Regnum.

Kuprianov's statement means little unless it is supported by official documentation.

Economist Gia Khukhashvili accuses the Georgian Oil and Gas Corporation of lacking professionalism, and demanded to know exactly where and how much natural gas will be imported by Georgia.

However, he is skeptical that anything will be properly announced in September or October, adding that even arrangements with Azerbaijan are unclear. Delaying decisions until the end of the year-when cold weather increases the demand for gas-may force Georgia to settle for higher prices, he warned.

Meanwhile, Gazprom officials denied that they owed USD 2 million in transit fees to Georgia for gas sent through the country to Armenia. Gazprom stated that the contract stipulates that Georgia should receive a cut of natural gas as a tariff; as Georgia did not use all the allotted gas in June and July, Gazprom said, it can't claim the money.

Georgia gets 10 percent of Russian natural gas sent to Armenia, Regnum writes.


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