Gazprom worries about future gas supplies to Armenia

ITAR-TASS News Agency, Russia
December 22, 2006 Friday

Gazprom worries about the absence of a new contract on Russian gas
transit to Armenia across Georgia, Deputy CEO Alexander Medvedev said
on Friday.

He said they had signed three contracts on gas deliveries to Georgian
companies in 2007.

"We have not signed contracts on gas supplies to chemical plants and,
unfortunately, on gas transit to Armenia," he said.

"Although terms of gas transit to Armenia through Georgia fail to meet
international requirements, we are ready to retain them in 2007," he
said. "Georgia levies the transit rate of about $8 per 1,000 cubic
meters of gas transported by 100 kilometers. No such rates exist
anywhere in the world."

Georgia has an old pipeline, and transit charges are internationally
calculated on the basis of the initial capacity. Thus, Georgia should
charge about $1 per 1,000 cubic meters of gas, Prime Tass said.

Gazprom is ready to work on terms of the current contract for the
sake of gas security of Armenia, Medvedev said.

"However, no contract has been signed, although we sent [to Georgia] a
copy of the contract that fully meets last year’s terms and was signed
by us," Medvedev said. He hopes Georgian colleagues will explain
to the national administration "why Gazprom offers are founded and
acceptable."