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Georgia 'agrees Russia gas bill' | Georgia 'agrees Russia gas bill' |
(20 minutes later) | |
Georgia has agreed to pay twice as much for its gas from Russia, according to Russian energy giant Gazprom. | Georgia has agreed to pay twice as much for its gas from Russia, according to Russian energy giant Gazprom. |
An hour after Gazprom threatened to cut off supplies, the firm announced that Tbilisi had agreed to pay $235 per 1,000 cubic metres, up from $110. | An hour after Gazprom threatened to cut off supplies, the firm announced that Tbilisi had agreed to pay $235 per 1,000 cubic metres, up from $110. |
Georgia had until then refused to accept the demands, saying it was being punished for political reasons. | Georgia had until then refused to accept the demands, saying it was being punished for political reasons. |
Georgia's prime minister had earlier told a press conference that Azerbaijan would be its main gas supplier in 2007. | |
He said Georgia would continue to buy gas from Russia, but did not refer to the terms of the deal or how it came about. | |
Diplomatic dispute | Diplomatic dispute |
The two countries have been at loggerheads since Georgia arrested four Russians in September, who they accused of spying. | The two countries have been at loggerheads since Georgia arrested four Russians in September, who they accused of spying. |
The Kremlin hit back with an air, sea and postal blockade on Georgia and a crackdown on Georgian migrants in Russia. | 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. | A ban on key Georgian exports, such as wine and mineral water, has also been in place for months, with Russia citing health concerns. |
We can look to the future with optimism Alexander Medvedev, Gazprom | |
Gazprom has argued that Georgia must pay significantly more for its gas to bring rates into line with European prices. | |
In a similar dispute earlier this year, Gazprom cut off gas supplies to Ukraine. | In a similar dispute earlier this year, Gazprom cut off gas supplies to Ukraine. |
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. | 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, 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. |
A senior Gazprom official said that Georgia would buy 1.1 billion cubic metres of gas from it next year. | |
"Clouds have dispersed, the sky has cleared and we can look to the future with optimism," said Alexander Medvedev, head of the firm's export division. | |
But Gazprom had earlier accused the Georgian government of snubbing it in talks aimed at finding a solution to the long-standing price dispute. |