Georgian Minister of Energy, former football player for Milan FC, Kakha Kaladze, met with the CEO of Gazprom, Alexey Miller, a few days ago in Brussels. The Georgian Energy Ministry has not met with the Gazprom CEO since 2005, when the first signs of the catastrophic deterioration of Russian-Georgian relations appeared. Interest in the meeting between Kaladze and Miller was fueled by the fact that the Georgian side did not advertise the meeting, limiting the press to meager statements. Gazprom also dryly informed that during the meeting the sides discussed the development of cooperation in the field of transit of Russian gas and possible supply of natural gas in Georgia.
A press release by the Georgian Ministry of Energy is silent about the last passage. Maybe this is a way for Kakha Kaladze's ministry of avoiding criticism from the opposition – the supporters of Mikheil Saakashvili's United National Movement party (UNM). Indeed, the leaders of the UNM immediately accused the ruling Georgian Dream coalition of initiating "secret negotiations with the Russian monopolist". "Gazprom is a tool of Moscow's policy, and our authorities are pursuing a policy of capitulation in all spheres," an MP of the United National Movement, Nugzar Tsiklauri, told Vestnik Kavkaza.
Nevertheless, the authorities made it clear that a dialogue with Gazprom is needed in terms of further settlement of Russian-Georgian relations. The special representative of the Georgian Prime Minister, Zurab Abashidze, told Vestnik Kavkaza that during his meetings with Russian Deputy Foreign Minister Grigory Karasin in Prague they "discussed issues of cooperation in the energy sector, but didn't consider specific projects." It seems that the experienced diplomat, a former Georgian ambassador to Moscow, by using such a streamlined formulation, has hinted that the restoration of relations with Gazprom is not unexpected.
But exactly what issues were discussed during the talks in Brussels? According to Vestnik Kavkaza, the Russian side was interested in further transit of natural gas to Armenia through the so-called 'strategic pipeline'. After the collapse of the USSR, this section of the pipeline from Russia to the Caucasus became the property of the Georgian state.
Since 1992, by agreement between Moscow, Tbilisi and Yerevan, Georgia receives 10% of the natural gas supplied from Russia to Armenia as a transit fee. Last year, the energy system of the country received 300 million cubic meters of gas from this source, with an annual consumption of 2.5 billion cubic meters. It's not so much, but it is something, because the gas supplied in the form of transit fees is used as an important factor in pricing in the energy market.
The main supplier of natural gas for Georgia is Azerbaijan. After the incident in 2006 with the explosion of a 'strategic pipeline' in North Ossetia (as a result, Georgia nearly froze in the winter, left without heat and electricity), President Saakashvili decided to break up with Gazprom and signed a long-term contract on gas supplies at an extremely discounted price of 140 dollars per 1000 cubic meters with Azerbaijan. Since then, Georgia hasn't bought any gas from Russia or through Russian territory, just like in the 1990s, when the company Itera supplied Turkmen gas to Georgian customers.
The problem for the Georgian authorities is that the deal with Azerbaijan on supplies of natural gas will expire in 2017. If Azerbaijan refuses to renew the contract for a reduced price, Georgia may find itself in an almost hopeless situation, because in this case it will have to buy natural gas at world prices, and the Georgian economy is built around a price of 140 dollars. Therefore, Kaladze is trying to lay the groundwork for the future, using the interest of Gazprom.
The Russian energy giant actually has a clear interest in Georgia – that very "strategic pipeline" connecting Russia with Armenia. Moscow had repeatedly offered Saakashvili's administration to give it the pipeline for a long-term contract on guaranteed gas supplies at a discounted price. The Minister of Economy and Sustainable Development, Kakha Bendukidze, spoke about the admissibility of such a transaction. The deceased prime minister Zurab Zhvania also called on compatriots "not to turn a simple pipe into something like Svetitskhoveli (the Georgian church of the 11th century). But Saakashvili was afraid of allegations of "selling national property", although he could not explain how the metal tube can be considered such property.
This question will certainly arise again during the Russian-Georgian talks. There are persistent rumors in Tbilisi that Gazprom is ready to buy the gas distribution network of the Georgian capital from the Kazakh company KazTransGas-Tbilisi. Such a deal could take place only with the consent of the Georgian leadership, which always considers energy issues in the geopolitical context of relations with major international partners.
