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Georgian official hopes for lower Russian gas price

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A Georgian energy official said Thursday he hopes an agreement on a lower price for Russian natural gas for 2007 will be reached, and urged for his country's energy sources to be diversified.
TBILISI, November 2 (RIA Novosti) - A Georgian energy official said Thursday he hopes an agreement on a lower price for Russian natural gas for 2007 will be reached, and urged for his country's energy sources to be diversified.

The price Georgia pays for Russian natural gas could rise from the current $110 to $230 per 1,000 cubic meters in 2007, an official from Russian state-controlled energy giant Gazprom said earlier Thursday, prompting the Georgian foreign minister, who is on a three-day visit to Moscow, to blame the move on politics.

"Talks have not been concluded with the Russian side on the gas price; the process is continuing, and there are no reasons to panic," David Ingorokva, president of the Georgian International Gas Corporation, said after a session of an energy commission.

If Gazprom's proposed price is approved, it would be the highest gas price Russia currently charges from its former Soviet allies, and the closest to the average European level.

The Georgian official pledged to find a solution to the problem.

He also said Georgia was in talks with a consortium developing a gas field in Azerbaijan to ensure alternative gas deliveries, and that buying gas from Iran and Azerbaijan was being considered.

"We are working on extra gas supplies from other sources, and are technically ready to receive gas from any directions," he said.

Georgia and Russia have been entangled in a diplomatic feud that erupted with the arrests of Russian officers on spying charges in September. Tensions had already been strained over the presence of Russian peacekeepers in the breakaway Georgian regions of Abkhazia and South Ossetia, and Russia's bans on Georgian goods.

Since the latest row began, Russia has since cut transport and mail links to its mountainous ex-Soviet neighbor, cracked down on businesses allegedly related to the Georgian mafia, and deported hundreds of Georgians accused of residing in Russia illegally.

The news from Gazprom came during the Georgian foreign minister's visit to Moscow, the first official contact since the spying dispute. Gela Bezhuashvili's meeting with the Russian foreign minister was expected by Georgian President Mikheil Saakashvili to revitalize dialogue between the two ex-Soviet neighbors.

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