RUSSIA DID NO ECONOMIC ARM TWISTING FOR POLITICAL PRESSURE ON GEORGIA

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TBILISI, December 9 (RIA Novosti) - Gazexport denies allegations that Russia pressed Georgia via gas companies.

The allegation about Russia's political pressure on Georgia via Russian gas providers would have been true in November 2003 and after the revolution, Gazexport Director General Alexander Medvedev said at a news conference in Tbilisi. "However, nothing of the kind happened. At the time, Georgia enjoyed uninterrupted gas supplies from Russia."

The Gazexport company is a Gazprom subsidiary handling Russian gas exports.

According to Mr. Medvedev, cooperation in the gas sphere cannot be used as an instrument of Russia's political pressure on Georgia.

Tbilgaz's Director General David Murchiladze shares the view of his company's Russian partner. "Had political considerations been involved, we would not have had such a liberal debt repayment schedule Russia agreed on. In addition, the price of Russian gas is quite affordable to the Georgian consumer against the backdrop of its growth on the market," Mr. Murchiladze said.

Mr. Medvedev also highlighted new projects, such as the Gazinvest company's participation in supplying gas via Georgia and Azerbaijan.

Georgian Economic Development Minister Kakha Bendukidze, in his turn, informed the Novosti-Georgia news agency that "the Georgian Ministry of Economy is mulling over privatizing both gas industry installations and electric power generation facilities."

According to Mr. Bendukidze, Gazprom's representatives on a visit to Georgia discussed an increase in gas supplies to Georgia, electric power plant privatization and Russian gas transit to Azerbaijan via Georgia.

Particularly, Mr. Bendukidze says, Gazprom is keen on buying three government-owned power generation units of the TbilGRES power station and gas distributor and gas transport companies as well.

Georgian Fuel and Power Minister Nika Gilauri, in his turn, commented that the power generating units in question were TbilGRES Units 3, 4 and 8 that are subject to restoration so far.

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