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Russia to cut off gas to Georgia | Russia to cut off gas to Georgia |
(30 minutes later) | |
Russian gas company Gazprom has said it will cut off gas supplies to Georgia from 1 January in an escalation of a long-standing price dispute. | Russian gas company Gazprom has said it will cut off gas supplies to Georgia from 1 January in an escalation of a long-standing price dispute. |
Georgia has refused to accept Gazprom's demand for a doubling in its gas price to $230 per 1,000 cubic metres. | Georgia has refused to accept Gazprom's demand for a doubling in its gas price to $230 per 1,000 cubic metres. |
Georgia says it is being punished for its Western-leaning policies, but Gazprom says the rise will bring the rate into line with European prices. | |
In a similar dispute earlier this year, Gazprom cut off supplies to Ukraine. | In a similar dispute earlier this year, Gazprom cut off supplies to Ukraine. |
Regional influence | |
The Ukrainian row, which caused a temporary disruption in gas supplies to western Europe, led to criticism that the state-controlled Russian firm was using gas exports as a political weapon. | |
Gazprom, which is looking to expand its influence in the region and across Europe in general, is also embroiled in a price dispute with neighbouring Belarus. | |
Gazprom views Georgia's position as a refusal to buy Russian gas in 2007 Sergei Kupriyanov, Gazprom | |
Gazprom accused the Georgian government of snubbing it in talks aimed at finding a solution to the price dispute. | |
"Gazprom views Georgia's position as a refusal to buy Russian gas in 2007," said company spokesman Sergei Kupriyanov. | |
Gazprom wants to more than double what Georgia pays for its gas, from the current level $110. | |
Georgian firm Energy Invest was due to buy 360 million cubic metres of gas from Gazprom next year, up from 250 million cubic metres this year. | |
Relations between Georgia and Russia have been fractious since a diplomatic dispute in September, when Georgia arrested four Russians accused of spying. | |
The Kremlin hit back with an air, sea and postal blockade on Georgia and a crackdown on Georgian migrants in Russia. | |
A ban on key Georgian exports, such as wine and mineral water, has also been in place for months, with Russia citing health concerns. |