Gazprom, Georgia Reach Deal for Armenia Gas Transfer

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MOSCOW (TASS)—Gazprom Export has offered a guaranteed income from service on gas transit to Georgia, the company said in a statement.

A meeting between Director General of Gazprom Export LLC Elena Burmistrova and the Minister of Energy of Georgia Kakha Kaladze took place on January 10, 2017, in Minsk. The terms of gas transit to Armenia through the territory of Georgia, as well as gas supplies to Georgia were discussed at the meeting.

“Gazprom Export has made a package proposal to Georgia under optimal and mutually beneficial conditions, which will allow the Georgian party to raise guaranteed income from transportation services and improve the reliability of gas supply in Georgia,” Director General of Gazprom Export LLC Elena Burmistrova said.

Georgia serves as a transit country to transport Russian gas to Armenia.

Previously, Russia paid Georgia for gas transportation by supplying natural gas in the amount of 10% of the transported gas volume.

“In the global practice of gas trade they no longer apply payments with raw materials. The Russian party has proposed to the partners switching to money payments for gas transportation services on the basis of the rates used in the EU,” the statement reads.

“Gazprom has made an interesting proposal,” Georgia’s Minister of Energy Kakha Kaladze said, Sputnik reports. He stressed that the offer ‘is a final one.’

Speaking to Imedi TV, Kaladze said the previous meetings had produced no result because of the difference between the positions of the sides.

The Minister called the latest offer “interesting” and said the decision would be made after discussions of the issue at the government.