Georgia to pay more than double for gas

MOSCOW – Georgia will pay more than double what it pays now for Russian natural gas under an agreement signed Friday, a top executive with Russian gas giant OAO Gazprom said, in a deal that could potentially threaten its fragile economy.

Before Gazprom’s announcement, Georgia had said it would buy gas from Azerbaijan instead of Russia. But Georgian Prime Minister Zurab Nogaideli said late Friday that Azerbaijan would not be able to supply gas in the early part of 2007 and Georgia would have to purchase Russian gas instead.

Alexander Medvedev, the head of Gazprom’s export division, told reporters in Moscow that Gazprom had signed three contracts to supply Georgia with natural gas at $235 per 1,000 cubic meters next year.

Three Georgian companies will receive 1.1 billion cubic meters of gas next year under the deal