Statement by Mr. Micheil Janelidze, Minister for Foreign Affairs of Georgia

The Goal of the Government of Georgia is to ensure the stable and uninterrupted

supplies of natural gas, which was a problem due to the increased consumption in

the country, during the last period.

To achieve this goal, Government of Georgia conducted long and open negotiations,

which has brought successful results. Together with our friend and strategic partner -

Azerbaijan - means of supply of additional amounts of natural gas, necessary for

covering the deficit were found, on good terms. The agreement on this was reached

and signed by the Minister for Energy of Georgia and the Azerbaijani company

SOCAR, last week.

Negotiations with the company GAZPROM was conducted on the terms of the transit

of natural gas from Russia to Armenia, through the Georgian owned infrastructure.

This type of negotiations has been conducted every year, since 2004, as the transit

contract is annual. At the same time, the negotiations included the possibility of

supplies of the amounts of natural gas needed for the coverage of the deficit, in case

it was not possible through other sources.

As a result of the agreements reached with SOCAR, there is no any need for buying

additional amounts from "GAZPROM exports". Accordingly, agreement with

GAZPROM on the continuation of transit contract on the terms existing during the

previous years was reached, which will be signed in coming days as well. Georgia

will get natural gas for the transit of gas to Armenia and no additional amounts of gas

will be purchased from GAZPROM by Georgia.

With these agreements, Government of Georgia has ensured the best possible

terms for the stable and uninterrupted supplies of gas and energy security for the