S.Ossetia to Increase Gas Tariff

A new gas pipeline linking South Ossetia with Russia will enable the unrecognized republic to receive gas for internal Russian gas prices, which are set at USD 40 per 1000 cubic meters, Prime Minister of breakaway South Ossetia Yuri Morozov said on February 6.

In the meantime, South Ossetia has to purchase Russian gas for about USD 300 per 1000 cubic meters because the unrecognized republic receives it via Georgia, Morozov said in a comments posted on the web-site of the South Ossetia?s unrecognized government.

He said that although Georgia buys gas for USD 235 per 1000 cubic meters, the price for South Ossetia further increases because of transportation and tax costs.

He said that because of this, the authorities in Tskhinvali are gradually increasing gas tariffs for consumers in South Ossetia: by 10% starting from May 1 and by 15% starting from September 1, 2007.

?Construction of the gas pipeline [linking South Ossetia with Russia?s neighboring North Ossetia] has already been launched, and a two kilometer section on the North Ossetian side has already been built,? Morozov said.

Morozov noted that the issue was discussed with officials from the Russia?s gas monopoly Gazprom during his recent visit to Moscow in January.

Morozov also said that he met with officials in Moscow from Russia?s central bank and agreed to establish a commercial bank in South Ossetia in the first quarter of 2007.

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