No result for Georgia-Russia Gazprom talks

After meeting Gazprom officials, Georgia's Energy Minister stressed no agreement had been made regarding transit of gas through Georgia. Photo by Georgia's Energy Minister/Facebook., 22 Jan 2016 - 16:56, Tbilisi,Georgia

The second round of negotiations between Georgia and Russian energy giant Gazprom has ended without success.

Georgia’s Energy Minister Kakha Kaladze departed for Austria’s capital Vienna on Wednesday to take part in the latest round of negotiations with Gazprom representatives.

Before he departed Kaladze said Georgia would hold "another and possibly the final round of negotiations with Gazprom”.

The Minister planned to sign a one-year contract with the Russian side after the current contract expired a month ago.

Kaladze explained Georgia typically revised its gas contract with Gazprom annually however after the meeting Kaladze said: "we haven’t reached an agreement so far”.

Gazprom used Georgia as a transit country to provide Armenia with natural gas. The latest negotiations came to a standstill after the Russian side insisted on giving Georgia money in exchange for transiting gas through Georgia to Armenia, while Georgia wanted to receive natural gas, as per the old agreement.

The Georgian side tried hard to negotiate with the Gazprom officials, particularly since the country faced a deficit supply of natural gas.

We have not achieved a joint agreement yet. The Georgian side wants to gain the same income we used to receive in case of 10 percent natural gas. I think we will complete the negotiations in the nearest future,” Kaladze said.

Before traveling to Vienna Kaladze said Gazprom had presented "an ultimatum” to Georgia where money would be exchanged for transiting gas through Georgia instead of gas itself. The Minister explained Georgia expressed "categorical opposition” to this ultimatum however Gazprom indicated it could import Iranian gas through Armenia instead.

You know that today 10 percent of the conveyed volume of gas is given to Georgia. However Gazprom has presented an ultimatum to move to a financial payment. This was news for us,” said Kaladze.
We categorically objected to this, though they directly indicated that they can import Iranian gas through Armenia. There really exist such a danger and its consequences will be very grave for us,” said Kaladze earlier this week.

Meanwhile today Kaladze met with European Union (EU) Ambassador to Georgia Janos Herman and discussed the state of gas negotiations with Gazprom among other topics.

Georgia will continue negotiating with Gazprom regarding the transit of gas through Georgia, said Kaladze.

He did not reveal when and where the next round of negotiations would be held.