GazProm, Georgia Agree on Strategic Cooperation
(Tbilisi, July 24, 2003, Civil Georgia) – Russian energy giant GazProm and Georgian government signed an agreement on strategic cooperation for 25 years.
The Russian company’s official web-site reported on July 21 that the agreement was signed between the Georgian Energy Minister Davit Mirtskhulava and the GazProm chief executive Aleksei Miller on July 1 in Moscow.
Georgian Energy Minister refrained today to make any comment regarding the report.
According to the GazProm the agreement envisages supplying Georgia with gas; the Russian company is also ready to reh!
abilitate Georgia’s gas distribution system, as well as two trunk-line gas pipelines, one of which will be used for transportation of gas to Armenia and the other – to Turkey, via Adjara Autonomous Republic.
By the fall, 2003 Georgian side will have to present the drafts of joint projects for discussion. According to the agreement by that time Georgian government has also to inform the company regarding the plans on privatization of the gas distribution systems in Georgia.
Observers say entry of Russian energy giant GazProm to the Georgian market concerns the United States, fearing the GazProm deal poses direct threat to the implementation of the US-led Shah-Deniz project, which is to carry Azeri gas to the western markets via Georgia and Turkey.
Aleksei Miller visited Georgia in May and reached a handshake agreement with President Shevardnadze over the strategic cooperation.
Following the visit of the GazProm chief executive US President’!
;s Senior Adviser for Caspian Energy Issues Stephen Mann arri!
ved in Georgia on a two-day visit on June 5-6 to convince the Georgina authorities to avoid any step that might hinder Shah-Deniz. After the US official’s visit Georgian authorities vowed to comply with the commitments over the Shah-Deniz.
At the moment another Russian energy giant Itera is the only supplier of gas in Georgia. Observers say the monopoly of Russian gas in Georgia is a powerful leverage for Russia against Georgia.
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