Ongoing talks between Georgia and Russia’s Gazprom focus on terms of transit of Russian gas to Armenia via Georgia, as well as on possible import of additional volumes of gas from Russia to Georgia on top of what the country is receiving as a transit fee, the Energy Minister said according to Civil Georgia News.

According to Kakha Kaladze, Gazprom insists on change of current arrangement through which Georgia receives, as a transit fee, 10% of gas delivered from Russia to Armenia via pipeline running through Georgia.

Gazprom now wants to pay cash as a transit fee, Kaladze said in an interview on Monday, January 11, adding that Russia has been insisting on monetizing the fee for the past two years.

“No agreement has been achieved yet,” he noted.

Kaladze confirmed that due to Georgia’s increasing gas consumption, the country may need to import additional gas volumes from Russia on top of what it has been receiving as a transit fee.

According to Kaladze, this, however, does not mean that Georgia will reduce the volume of gas imported from Azerbaijan, the main source of gas supplies for Georgia (over 87% of total gas consumption).

He said that talks aim at getting the best possible option for the country and added that it is impossible for Georgia to become dependent on Russian gas supplies as the country has long-term agreements with its major supplier and “strategic partner” Azerbaijan.