Saturday, February 04, 2006

Oil and Gas: Georgia gets gas from Iran at more than double the price it paid Russia. Don't worry, the US may be paying

On Jan 25, I posted an article that described how Georgia was looking to Iran, as a supplier of natural gas as an alternative to depending upon Russia. As many will now know, Georgia has in fact begun to receive supplies from Iran.

However, it appears that not only are they paying more than twice the price they paid Russia, they are using American to do it.

Iran's deputy oil minister, Mohammad-Hadi Nejad Khoseinian, told IRNA news agency that Georgia was paying about $7 million for 30 million cubic meters of gas for 30 days, or $230 per 1,000 cubic meters. Georgia was only paying Russia $110.

The Vremya Novostei daily, reports: "It can be considered that the payment came from funds that Washington gave Tbilisi in the form of financial assistance, because Georgia has no other sources for liquidating its budget deficit."

The Georgian government has declined to comment.