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Gazprom to double Georgia charges | Gazprom to double Georgia charges |
(about 3 hours later) | |
Russian energy giant Gazprom has said it will more than double prices of gas supplies to Georgia from 2007. | Russian energy giant Gazprom has said it will more than double prices of gas supplies to Georgia from 2007. |
Gazprom said it would charge Tbilisi $230 (£121) for 1,000 cubic metres of gas, compared with the $110 cost now. | Gazprom said it would charge Tbilisi $230 (£121) for 1,000 cubic metres of gas, compared with the $110 cost now. |
Russia has often been accused of using Gazprom, a state-controlled natural gas monopoly, as a political weapon to keep its neighbours in line. | Russia has often been accused of using Gazprom, a state-controlled natural gas monopoly, as a political weapon to keep its neighbours in line. |
Georgia's foreign minister is in Moscow for talks in an effort to defuse tensions between the two nations. | Georgia's foreign minister is in Moscow for talks in an effort to defuse tensions between the two nations. |
Gela Bezhuashvili will take part in the first high-level talks between Georgia and Russia since a diplomatic crisis soured bilateral relations in September. | Gela Bezhuashvili will take part in the first high-level talks between Georgia and Russia since a diplomatic crisis soured bilateral relations in September. |
Postal blockade | Postal blockade |
The crisis began when Georgia, which relies heavily on Russia for exports and imports, arrested four Russian officers for alleged 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. | |
Last month, Georgia's biggest gas importer, Energy Invest, claimed that Gazprom was looking to raise 2007 prices to between $170 and $250. | Last month, Georgia's biggest gas importer, Energy Invest, claimed that Gazprom was looking to raise 2007 prices to between $170 and $250. |
Georgia will buy 360 million cubic metres of gas from Gazprom next year, up from 250 million cubic metres this year. | |
'Political decision' | |
Gazprom has said it will stop subsidising economies in the former USSR and will look for payments closer to its European export prices, currently at around $230-$250 per 1,000 cubic metres. | |
After the Gazprom announcement Georgia's state minister for economic reforms, Kakha Bendukidze, said the increase had been expected. | |
"I don't know if this price is final but to me it is clear that this is not a market price, this is a political decision," Mr Bendukidze told the Reuters news agency. | |
Mr Bendukidze said he would be observing what price Gazprom offered to Georgia's neighbours Azerbaijan and Armenia. | |
Relations between Georgia and Russia have been rocky since the 2004 election of Georgian President Mikhail Saakashvili, who wants to boost ties with the West and join Nato in 2008. | |
Last week, President Vladimir Putin accused the Georgian leadership of wanting to retake the breakaway territories of Abkhazia and South Ossetia by force. | Last week, President Vladimir Putin accused the Georgian leadership of wanting to retake the breakaway territories of Abkhazia and South Ossetia by force. |