Russian Energy Giant Obtains Georgian Gas Distribution System

(Tbilisi, Civil Georgia, August 16, 2002) – Georgian authorities and Russian energy company ITERA are holding negotiations on creating joint venture of the Georgian gas distribution system, in which the 51% owner will be ITERA.

Reports say the agreement is almost drafted. According to the preliminary information in the joint venture will be united all the gas distribution systems in Georgia (Adjarian Autonomous Republic’s system is the only exception), including the greatest Tbilgas, which is the distributing company in Georgian capital.

In addition Georgian authorities agree to give the Russian energy giant the greatest chemical factory in Georgia located in Rustavi city. The factory will be handed over to ITERA for debts that Georgia has for providing natural gas by ITERA.

Georgian President and the entire government calls the agreement the only right decision, while the opposition and the most of the experts claim that the both decisions of the government mean that Georgia fully becomes dependent of Russian energy giant, that will cause increase of political dependence of Russia.