Russia's Gazprom Export and Georgia have reached an agreement on Russian gas transit to Armenia through Georgia, the company announced late on Monday.
The company said that the parties agreed on using cash transactions, based on rates used in EU countries, when paying for gas transit services.
Gazprom Export guaranteed payment of services for transiting Russian gas through Georgian territory to Armenia in 2017-2018 with volumes of between 2 and 2.2 billion cubic meters per year as well as supplying Georgia with natural gas on flexible terms at a price lower than 2016 at $30 per 1000 cubic meters.
"As a result of a series of meetings and longstanding negotiations, together with our Georgian partners we have managed to find commercial conditions which are optimal for both sides, and have reached an agreement on the terms of gas transit," said Director General of Gazprom Export, Elena Burmistrova.
Previously, the services of transiting gas via Georgian territory were paid in kind - through physical supplies equivalent to 10 percent of the natural gas transported through Georgia to Georgian consumers.
In global gas trade, the practice of paying for transit with commodities has not been used for many years.
(Anadolu Agency, February 14, 2017)
