Moscow wins Georgia gas battle (Guardian)

[Eugene]

Moscow wins Georgia gas battle


Agencies in Moscow
Saturday December 23, 2006
The Guardian

Georgia caved in yesterday and agreed to pay more than double current
rates for Russian natural gas after Moscow threatened to cut off supplies
if the new price was not accepted. The development revived concerns
that Russia is determined to use its mineral assets as a political weapon
to intimidate neighbours.

Georgia has complained that it is being punished by Russia for leaning closer
to the west following its 2003 "rose revolution". It has accused Russia and
its state-owned gas group, Gazprom, of "political blackmail" for raising
prices to levels that could threaten the Georgian economy.

The leadership in Tbilisi has been keen to source supplies from neighbouring
Azerbaijan. But the Georgian prime minister, Zurab Nogaideli, said Azerbaijani
gas would not come on stream for several months at least, leaving the country
with no option but to turn back to Russia. Under yesterday's deal, prices will
more than double to $235 per 1,000 cubic metres.

-snip-

Full article: http://www.guardian.co.uk/russia/article/0,,1978193,00.html