16:58 19/01/2017

Expert insists new terms of Russian gas transit to Armenia via Georgia beneficial to all parties

The new agreement of the Georgian government with Gazprom over the terms of Russian gas transit to Armenia via Georgia is mutually beneficial document, while the criticism and complaints were expected and should be ascribed to anti-Russian sentiments dominating the Georgian public, expert in Georgia Alik Eroyan told Panorama.am, when asked to comment on the criticism of the deal in the Georgian public and political circles.
 
“Georgians think Russian state-run Gazprom pursues anti-Georgian interests and the agreement has objectively raised suspicions given also the fact that certain details of the agreement – specifically the transfer fee– are yet to be disclosed,” Eroyan noted.

To remind, according to the previous agreement, which expired on December 31, Georgia was receiving 10% of gas transported to Armenia, while the new agreement envisages fixed gas transfer fee which is not disclosed. The new deal sets that during the first year of the two-year contract, Georgia will partially maintain the commodity payment scheme and move to full monetary reimbursement in the second year. If Georgia requires additional natural gas, it will pay USD 185 per 1000 cubic meters of Russian gas instead of USD 215."

“This appears to be a mutually beneficial agreement which is aimed at diversification of the Georgian energy sector, since it lacked alternative. The Georgian side should have looked for an alternative if Gazprom had cut the gas supply,” the expert said, pointing out the apparent benefit for Gazprom as well, that beat Azerbaijani SOCAR, seeking monopoly in the Georgian market.

Eroyan expanded on the benefits for Armenia with the new terms leading to the drop in the gas price supplied through Georgia.

“The deal was a blow to SOCAR, that sought to become the 100 percent supplier of the Georgian gas sector, struggling hard to pull Gazprom out of the Georgian market. They failed, since the Azerbaijani side were unable to supply Georgia’s 10 percent gas deficit which accounts for 500 million cubic meters annually,” Eroyan said.

Eroyan next spoke of the criticism voiced by the Georgian president toward the new agreement, suggesting the President thus wished to maintain his image of a liberal democrat.

“In every controversial situation he (President of Georgia) comes up with positions which are well aligned with the public interest. On the other hand, this is a part of a larger game. The Georgian president used to deliver anti-Russian speeches from international tribunes at times, when progress was being observed in the Georgian-Russian relations. This is practiced quite often,” explained Eroyan.



Source Panorama.am
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