(mosnews.com) - Georgia rejected a compromise deal with the Russian state-controlled gas monopoly Gazprom. The deal offered by Gazprom would see Georgia hand over control of its domestic gas distribution network to Russia. Now Georgia is left with the prospect of either paying twice the current price or having supplies cut off, reports Trend.
Georgia is currently paying $110 per 1,000 cubic meters of Russian gas and Gazprom already announced that in 2007 it wants Georgia to pay $230, which is the average price that the Russian monopoly charges its European customers. Gazprom has already warned that if no contract is signed, supplies will be cut on Jan. 1, 2007.
Gazprom offered to soften the increase if Tbilisi handed over control of its domestic gas distribution network to Russia. The same scheme was used with Russia-friendly Armenia that will continue to pay $110 price until the end of 2008 in exchange for its energy distribution assets.
Unlike his Armenian colleague, the Georgian Prime Minister Zurab Nogaideli rejected that offer. I want to repeat once again - we are not going to bow to blackmail, he was quoting by Reuters as telling a cabinet meeting.
Energy Minister Nika Gilauri, asked by reporters if Georgia might cede energy infrastructure to Gazprom, replied: Never.
Russia supplies almost all of Georgia's gas needs. The Georgian government is seeking alternative suppliers in Azerbaijan and Iran, but they are not ready to replace Russian gas in full.
Tbilisi says Moscow is using gas as a political tool to punish it for its pro-Western policies. Gazprom says the increase is purely commercial.
If the price stays at $230, Georgia - where the average monthly income is just over $100 a month - would pay the same for its gas as rich countries such as Germany and Italy.
Alarmed at the prospect of a gas cutoff, a leading Georgian opposition figure urged Nogaideli to seek a compromise.
The prime minister should explain if his statement means Georgia will be left without gas this winter because for now there is no real alternative to Russian gas, Interfax news agency quoted lawmaker David Berdzenishvili as saying.