Georgia, Gazprom sign agreement on new conditions for transit of Russian gas to Armenia
TBILISI. Jan 30 (Interfax) - Georgia's Deputy Prime Minister and Energy Minister Kakha Kaladze has said that an agreement with Gazprom Export on new conditions for the transit of Russian natural gas to Armenia envisaging a switch to monetary payments for the cost of transit had already been formed.
"The agreement with Gazprom Export has already been signed," Kaladze told journalists on Monday, in response to a question on the matter.
In terms of revealing the details of the agreement, which the opposition in the minority in parliament is insisting on, a decision on this cannot be taken unilaterally by the Georgian side, according to the minister. "It needs to take place on the basis of a mutual agreement by both sides and we are working toward that," he said.
He said that different letters were arriving, including those which say that the agreement between Georgia and Azerbaijan's SOCAR needed to be revealed for example, for the Shah Deniz international consortium which is the main supplier of natural gas to the country. "I think this is not correct, since agreements in normal developed countries are a commercial secret," the energy minister said.
The minister does not see any necessity in approaching the parliament, as the minority opposition is demanding, in order to give explanations on the agreement with Gazprom , as he considers that all questions relating to the topic have been fully replied to. "Extensive information which interests our people has been given. But I do not plan to take part in political speculation or a show," he said.
Under the agreement, Gazprom Export guarantees paying for services of transiting Russian gas through Georgian territory to Armenia in 2017-2018 in the amount of 2.0 billion-2.2 billion cubic meters per year as well as supplying Georgia with natural gas "on flexible terms at a price that is $30 per 1,000 cubic meters lower than in 2016," in other words for $185. The transit price itself has not been revealed, as it is a commercial secret agreed to by two subjects and which, presumably, is much less than what Georgia received until now, which was 10% of Russian gas transported to Armenia.
In connection with this, Georgia's opposition party National Movement, which holds a minority in Georgia's parliament, is against the agreement believing it to be against the country's national interests and its energy security.
Georgia's gas needs total around 2.5 bcm of gas per year, almost 90% of it supplied through Azerbaijan.
