Georgia and Gazprom drawn line under era

Georgian Energy Minister Kakha Kaladze said at the special briefing that after the 'long and difficult' negotiations with the Russian company Gazprom, they agreed shifting to a system of financial compensation for the transit of Russian gas into Armenia. Georgia will receive money for transit and refuse from 10% of total transported gas as a service fee of its two neighbors - Russia and Armenia.

So, it is the end of an era in the history of the country. In 1992, when Georgia was ruled by  "the military council" led by two crime bosses - Jaba Ioseliani and Tengiz Kitovani - the Armenian Prime Minister arrived in Tbilisi to protest colleagues due to unauthorized withdrawals of natural gas belonging to Armenia.

During the talks, an idea of transit payment using money, according to international rates, was voiced. But the head of the Cabinet of Ministers of Georgia, Tengiz Sigua, put forward an alternative proposal: "10% of total transported gas as a transit fee! Otherwise, we will take it for free - even if you don't like it".

These were difficult and explosive times, so Russia and Armenia agreed to an ultimatum of the "bosses". However, since the past quarter century, the gas payment for the transit has become an anachronism. That is why Gazprom categorically insisted on the monetization for the last two or three years, not wanting to keep a precedent, which could tempt other partners to also demand such payment rather than a fixed price for the transit.

Kakha Kaladze did not reveal the price in dollars, which Gazprom will pay Georgia, citing the confidentiality of information. He stressed that Georgia "will be able to buy the same amount of natural gas" on this money. That is, 10% is about 200 million cubic meters per year.

The contract will be concluded for two years. It is of a package nature. The Energy Minister stressed that if the Georgian side has a need to purchase an additional amount of gas, Gazprom will supply fuel at a price of $185 per thousand cubic meters.

This paragraph of the agreement indicates that the Georgian authorities are still not free from the 'phobia of gas' due to a possible lack of energy, steadily supplied from Azerbaijan. Last year, the head of the Ministry of Energy talked about "the inability of the two existing gas pipelines to supply more gas from Azerbaijan in the conditions of consumption growth in Georgia", but soon it turned out that both Azerbaijan's SOCAR and the international consortium, which supplies fuel from the Caspian shelf to the West, have such opportunities.

An expert on economic and energy issues, Giorgi Khukhashvili, told Vestnik Kavkaza that it is not about a fear of gas shortages. According to the expert, Russia "found other weighty arguments" to persuade the Georgian leadership to agree on changing the 25-year transit payment scheme. Apparently, we are talking about a threat to renew the embargo on the import of Georgian products, wine and mineral water, the prohibition of flights and the termination of the supply of electricity during the winter.

Despite the hysterical reaction of the opposition, which accused the government of treason, there are many experts in Tbilisi believing that it was the maximum which the Georgian government has been able to receive from the partners, taking such Moscow's trumps into account.