NGOs and Opposition Call on Energy Ministry to Disclose Details of New Deal with Gazprom

Non-Governmental Organizations (NGOs) and the parliamentary opposition of Georgia are openly against the new deal made by the Energy Ministry of Georgia and Russia’s energy company Gazprom, and is calling on the Energy Minister, Kakha Kaladze, to disclose all details of the agreement.

23 NGOs, united under the Coalition for Euro-Atlantic Georgia, released a statement last week, saying that the new transit terms with Gazprom endanger the country’s energy independence and security.

“The new terms worsen the country’s energy security and the government’s arguments concerning the new agreement are not satisfactory,” the coalition stressed in its statement.

The new deal means that Georgia, as a transit country for the transportation of Russian gas to Armenia, will from 2018 receive payment from Gazprom.

However, under the previous agreement, which expired on December 31, 2016, Russia has been paying Georgia for gas transportation by supplying natural gas to the amount of 10% of the volume of transported gas.

The NGOs call on the authorities to disclose the agreement details and hold a special parliamentary hearing.

They stressed the government should provide answers to the following questions:

• What has changed since last year, when the current position was unacceptable for the government?

• Why should seasonal shortage be met by Russian gas?

• What specific steps were taken during the year to inquire into the possibility of receiving additional gas from other suppliers?

• Is the transit fee in line with the price calculated under the requirements of the European Energy Community and has this price been approved by the Georgian National Energy and Water Supply Regulatory Commission?

• Were the talks based on strategic expert calculations and were international partners involved?

Georgia’s parliamentary minority also disapproves of the deal, saying it is anti-state. They call on Kaladze to provide detailed information at a special meeting at parliament.

Sergo Ratiani, member of the faction European Georgia, believes the deal contradicts national interests and is economically unprofitable.

“The deal reached with Gazprom is a version profitable only for Russia…The agreement is anti-state and problematic in terms of energy security,” he said.

The ruling party Georgian Dream (GD), which had always been against monetary compensation from Gazprom, now says the deal is “optimal” and does not endanger Georgia’s energy independence.

“Azerbaijan will be our top priority in terms of gas, followed by Russia. We did not allow Russia to increase its share in Georgia’s gas supply. This is the most optimal agreement at present,” majority member, Irakli Zarkua, said.

Gazprom also commented on the deal, saying the agreement was “profitable for both sides.”

“The Russian side guarantees to pay for the transit of Russian gas through Georgia to Armenia in 2017-2018 at a volume of 2.0-2.2 billion cubic meters per year, as well as to supply Georgia with natural gas on flexible terms at a price lower by $30 per 1000 cubic meters than in 2016,” the Gazprom statement reads.

Thea Morrison

Gazprom. Source: independent.md