Georgians To Fill Their Budget At The Expense Of Armenian Consumers

PanARMENIAN.Net - As it was expected, Georgia quickly agreed with the idea that Russia will never reduce the price which was announced during the first round of negotiations. Tbilisi agreed with the conditions of Moscow and will again pay 110 USD for each thousand cubic meter of gas. Currently, both Georgia and Armenia receive gas for 110 USD. Zurab Nogaidely agreed also upon the volumes of import. If this year Georgia has purchased 1 milliard and 300 million cubic meters of gas, next year they will purchase 2 milliard and 250 million cubic meters. Parties claim that they are pleased with the outcome of negotiations. After the meeting with Georgian Prime Minister, Alexander Ryazanov announced that they had agreed on the majority of issues and on the whole there are no problems between them.
But only on the whole, because still there are certain contradictions which the parties will try to smooth away during the next round of negotiations to be held early in 2006. The first issue, which is still not agreed by the parties, concerns the creation and functioning of a joint venture, like the Armenian-Russian "ArmRosgasprom". Russians intend to take control mechanisms over the company, but Georgians are against that. Disputable is also the issue of purchase of gas distribution networks and transit pipelines running through the territory of Georgia to Armenia. This issue is important for us too, because if "Gasprom" becomes the owner of both the pipe and its contents, the dictated conditions will be more predictable. The Russian party supposes that from the point of view of commerce, their proposals concerning the sale of transit gas pipeline are quite attractive. This is why in Moscow they sill hope that Tbilisi will give in.

The issue of transit cost, which is most important for us, is still unsettled. It should be noted that so far, Georgia has been receiving for transit 10 percent of gas, supplied to Armenia. That is to say, for each thousand cubic meter of gas, pumped to Armenia, Georgia has been receiving fuel in the value of 6 USD. Now "Gasprom" prefers to pay not in gas, but in money and insists on signing a contract for at least 10 years. Georgians basically agree with the terms and forms of payment. However they have not agreed upon concrete figures. "Gasprom" suggests keeping the 10 percent tariff. That is, taking into account the rise of gas prices to 110 USD, the transit tariff has to be 11USD. According to official Tbilisi, that it is not enough. Georgians replied to the double rise in gas prices with a triple rise of tariff for transit. Georgia insists on 30 USD for thousand cubic meters. Thus, it turns out that thanks to Armenian consumers Georgia will annually receive about 60 million USD. Interestingly, the transit of Azeri oil promises only a little bit more to Georgia. But at the same time Azeri petrodollars already play a key role in Tbilisi. Meanwhile, Armenia indirectly increasing Georgian budget, does not hope that the money may in any way influence the political processes in Tbilisi. So why Azeri money is better than Armenian...?