Foreign Correspondence

[Amaunet]

Gazexport cuts gas supplies to Tbilisi

22.07.2004 08:00:00 GMT

Tbilisi. (Interfax) - OOO Gazexport, a subsidiary of Gazprom, on Wednesday reduced gas supplies to Tbilisi by almost 50%, from 370,000 to 200,000 cubic meters per day, due to the debts of gas distribution company Tbilgaz, Tbilgaz's General Director Nodar Gobianidze told Interfax.

The reduction in gas supply was caused by the fact Tbilgaz has not been able to pay Gazprom for fuel supplied for the past three days, because the Georgian Finance Ministry had seized its bank accounts.

Negotiations are underway with the ministry, Gobianidze said. He said he believes the company's accounts will be unfrozen. "To restore the previous supply regime, Gazexport demands $500,000 at a minimum," he said.

According to reports published in early July, Gazexport was planning to stop all gas supplies to Tbilisi if Georgia did not pay its current debts for gas, which reached $10 million. Of this amount, some $4.5 million were debts owed by the population to Tbilgaz, and the remaining money is owed by Tbilisi enterprises and public sector organizations.

Gazexport reduced gas supplies to Tbilisi on May 1 by 50% to 400,000 cubic meters per day because Tbilgaz had not fully repaid its debts for gas supplied in the winter of 2003-2004. Gazexport has previously supplied up to 900,000 cubic meters per day to Tbilgaz.

In view of these developments, Tbilgaz has begun restricting fuel supplies to those consumers that have debts to the company.



http://www.interfax.com/com?item=Geor&pg=0&id=5742038&req=