The Georgian authorities have stated that the improvement of the conditions of purchase of gas from “Gazprom”, having to reduce prices 15%. But Gazprom has removed the flexibility of the Georgian contract, entering 100% take-or-pay, which according to the company, will allow it to maintain economic effect from supplying Georgia at the same level. The volume of gas supplies from Russia in 2020 will remain small — about 200 million cubic meters, and most part of raw material Georgia will continue to buy from Azerbaijan.”Gazprom” has cut gas prices for deliveries to Georgia by 15% in exchange for increased selection on the contract. That agreement was reached, announced on 26 may, the Minister of economy of Georgia Natia Turnava, without specifying a new price.”The price of gas for Georgia will be the same as it was before when sampling 100% of annual contract quantities. Now these commitments are locked firmly”,— told “Kommersant” “Gazprom”. Thus, we are talking about the fact that Georgia is committed to fully choose 100% gas under the contract and in exchange gets a discount. Usually in contracts of “Gazprom” level of mandatory selection (take-or-pay) represents 70% of the annual contract quantity (in the case of Georgia — about 200 million cubic meters). What is the level of take-or-pay contract with Georgia, in “Gazprom” do not disclose. If you change the conditions of extraction “Gazprom” can reduce margins, but to increase revenue in the market of Georgia.Mrs. Turnava added that now in the commercial sector, prices gradually decrease as SOCAR — Azerbaijan supplier of gas and “Gazprom”. “If necessary, we can further reduce the price of gas that will depend on the market”,— said the Minister.The price of gas in the current contract with Georgia tied to a basket of oil products and should automatically fall amid a record fall in oil prices on world markets. Under the current contract Georgia in 2019 has bought gas from Russia at a price of $185 per thousand cubic meters, but since the price of oil has fallen by almost half. Typically, the cost of oil is the price of gas contracts with six-month delay, there is a significant price reduction for Georgia will only happen in the third quarter.Georgia almost completely meets the demand for gas through imports from Azerbaijan purchases of Russian gas are extremely small — less than 10% of annual consumption. So, in 2020 Tbilisi plans to buy 2.57 billion cubic meters of gas. Import from Azerbaijan may reach 2,347 billion cubic meters, from Russia — 200 million cubic meters. In 2019, the export to Georgia from Russia amounted to 162 million cubic meters in 2018 — 39 million cubic meters, in 2017 — 135 million cubic meters.Deputy head of strategic communications Department of the Ministry of economy of Georgia Giorgi Kalandadze refused to give “b” the price of Russian gas, citing commercial secrets. But, according to him, Georgia is not an exception: “��peresmotr gas prices downward, an international practice in the face of declining energy prices”.”In connection with the as a result of the coronavirus situation in the world changes in oil prices and, consequently, other energy sources. Do not rule out that there will be discussions with Russia”,— said Deputy Prime Minister of Armenia Mher Grigoryan at the end of March. The problem is that Armenia receives gas not on the formulary, but at a fixed price — $165 per thousand cubic meters. Last year this price could be seen as preferential, but this year it may surpass the price in neighboring Georgia, which is not included in the EEU. Russia, however, not yet ready to reduce the price for Armenia, and in a similar situation of Belarus — as stated by 19 may, Russian President Vladimir Putin, the General pricing of gas is not possible at the current level of integration within the EEU and may be exercised only “in the single market with a unified budget, a unified system of taxation.”Tatiana Woodpecker; Georgy Dvali, Tbilisi
