Russia’s Gazprom seen as aiming to buy Georgian pipelines

Rustavi-2 TV, Tbilisi
23 Sep 04

[Presenter] Gazprom representatives who arrived in Georgia yesterday
are currently at the Economic Development Ministry where they are
meeting [Economic Development Minister] Kakha Bendukidze’s deputy. The
director of Tbilgazi [Tbilisi gas distribution company], Davit
Morchiladze, is also at the talks.

There are reports that Gazprom is prepared to pay 300m dollars to take
control of Georgia’s trunk gas pipelines. There is also speculation
that there are plans to privatize Tbilgazi, although none of the
parties involved has yet confirmed this information.

The meeting at the ministry has been going on for more than two
hours. Our correspondent Giorgi Kalandadze is there and can tell us
more about Gazprom’s secret plans.

[Correspondent] About 300m dollars is the sum that Gazprom intends to
pay for control of Georgia’s trunk gas pipelines. According our
information, Gazprom needs these pipelines primarily to carry gas from
Iran’s huge deposits to Europe via Georgia. In relation to this issue,
there were reports in the Russian media recently that Gazprom is
trying to sell Iranian gas to Europe and for that reason the
construction of a pipeline between Iran and Armenia has been under
way, while pipelines between Armenia, Georgia, Russia and Western
Europe already exist.

For this plan to come to fruition, Gazprom and Russia need Georgia’s
agreement. About one year ago this subject came up for discussion and
a decision was taken then that it would be possible to set up a joint
enterprise, Gruzrosgazprom, or Sakrusgazmretsvi in Georgian, with the
shares split 50-50 and Gazprom representing Russia.

[Presenter] Giorgi, late last night the Gazprom delegation also met
the prime minister [Zurab Zhvania]. Is anything known about this
meeting?

[Correspondent] The meeting lasted several hours, starting at around
9.30 p.m. The energy and economic development ministers also attended
the meeting with the Gazprom delegation. Nothing about this meeting is
known as yet, although they did not conclude their discussions. It is
possible there will be another meeting with the prime minister today,
although an exact time is not yet known. The Gazprom representatives
intend to leave Georgia this evening.