Government of Georgia – Appearance 2006

Georgia Has to Purchase Russian Gas

Georgia was obliged to purchase natural gas from the Russian Federation for some days or a week because as a result of the unforeseen emergency was stopped production of natural ags at the main gas filed of Azerbaijan, - stated the Prime Minister of Georgia Zurab Noghaideli today.

Past year Russia increased tow times the cost natural gas supplied to Georgia, this year it stated that the prices for 2007 will be doubled again. In response to this the Government of Georgia began to pursue the purposeful policy of energy diversification a part of which is the sustainability of alternative supply of gas from Azerbaijan.

An incident which has taken place at Shah-Deniz gas field in Azerbaijan is a temporary barrier on the way of implementation of the diversification policy. Georgia will execute short-term contracts on purchase of required amount of Russian gas the term of which will depend on the term of restoration supply of gas from Shah-Deniz.

Natural gas from Shah-Deniz gas field which transit is performed by Georgia is the main source of energy resources for Turkey and many other European states and at the same time it is the only alternative to Russian gas.

Georgia will pay some 235 USD per cubic meter of Russian gas.

Press Center of the Chancellery of the Government of Georgia