Georgian premier accuses Russia of 'political blackmail' by hiking gas price

Russia's state gas monopoly OAO Gazprom has said it plans to charge Tbilisi US$230 (?180) per 1,000 cubic meters of gas, compared with the US$110 (?86) that it pays now, and warned that it would cut off supplies by Jan. 1 if a contract was not signed.

"Georgia will not yield to political blackmail," Georgia's Prime Minister Zurab Nogaideli said at a Cabinet session. "We are also conducting negotiations with other countries on gas supplies. We will chose the best option."

Georgian leaders have said the price hike was clearly political because other ex-Soviet nations were paying far less and vowed not to pay a "non-market price."

Moscow and Tbilisi have been locked in a bruising dispute following the detention of four purported Russian spies in September. Despite their quick release, Russia slapped Georgia with economic sanctions and other sanctions, which Georgian leaders have criticized as Moscow's retaliation for the Caucasus nation's pro-Western course.

Gazprom's threat raises the prospect of a repeat of the bitter New Year's price fight with Kiev, during which the Russian monopoly temporarily cut off Ukraine's supplies this year.

Finding other gas suppliers will not be easy. Neighboring Azerbaijan said last month that it could not promise gas supplies to neighboring Georgia next year because it might need the gas for itself. Iran could offer gas, but it is unlikely to be at a price lower than Russia is proposing.

Opposition leaders criticized Nogaideli's stance, threatening to sack him if an agreement was not reached and supplies were cut off. David Berdzenishvili, a leader of the Democratic Front opposition faction in parliament, said Nogaideli's reluctance to accept the new price would cause those Georgians "who didn't freeze last year to freeze this year."

The head of OAO Gazprom's export arm, Alexander Medvedev, hinted on Tuesday that Georgia could negotiate a lower price if it offered some assets in exchange. Observers believe Russia is eyeing Georgia's segment of a gas pipeline, which is also used to transport Russian gas to Armenia.

Georgia's Economic Minister Kakha Bendukidze reaffirmed on Wednesday, however, that Tbilisi would not cede control of the strategic pipeline. "I have already said this many times: we are not selling and will not sell our gas pipeline to Russia," Bendukidze told reporters.

Moscow has faced Western criticism for its sanctions, which included a sweeping crackdown on Georgian migrants in Russia.

In what appeared to be an attempt to soothe the criticism, a human rights body under Russian President Vladimir Putin on Wednesday condemned the illegal detentions of migrants and persecution of Georgian-run firms as "arbitrariness," and urged authorities to resort only to legal action. The Associated Press

/The International Herald Tribune/