RUSSIA THREATENS GEORGIA WITH GAS CUTOFF OVER DEBTS

ITAR-TASS news agency
15 Jun 04

Moscow, 15 June: “Gazprom” may limit gas supplies to Georgia over
its outstanding debts, Aleksandr Ryazanov, deputy chairman of the
company’s board, said today.

He said that Georgia’s current debt for Russian gas amounted to about
12m dollars. Despite promises to settle the payment in the near future
and submit a schedule for paying off earlier debts, Georgia has failed
to provide appropriate documents.

Ryazanov said that talks with Georgia on the debt are planned for
this week.

“Gazprom” is committed to setting up a joint enterprise in
Georgia. Georgia, however, has not yet accepted this proposal, Ryazanov
said. A joint venture can either be engaged in joint sales of gas in
Georgia or deal with upgrading Georgia’s gas transportation system.

“Gazprom” is interested in upgrading Georgia’s gas transportation
system since gas to Armenia passes through it, PRIME-TASS said.