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Transit cost hike could create problems with Armenia

By M. Alkhazashvili

Now that Georgia has agreed to buy Russian gas at the increased price, the question is will Georgia increase its transit price to Armenia. Armenia receives Russian gas via Georgia’s pipeline. The cost of Russian natural gas to Armenia did not increase significantly this year due to a deal that was worked out last year who sold an electric power station’s fifth unit in exchange for cheap natural gas.

But Armenia is still faced with Georgia’s transit cost, and if Georgia increases this fee considerably to help cover the cost of their own gas price hike, it could have a negative impact on Georgian-Armenian relations.

Political analyst Soso Tsintsadze believes the government might take such a step but doesn’t agree it’s the best solution, “the Georgian government first is considering alternatives [to an increase in the transit fee to Armenia] but the possibility is still on the table,” he told the newspaper Sakartvelos Respublika.

MP Niko Lekishvili chairman of the parliamentary committee of sector economy and economic policy categorically denies the possibility of such a decision. He says that Georgia will not take a step which could hurt its relations with Armenia.

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