Free Preview of Members-Only Content

To view the requested intelligence, you must be a Stratfor.com member.

Though Russo-Georgian relations are in tatters, Georgia has no choice but to remain dependent on Russia for natural gas.

Russia and Georgia — whose relationship is still shattered after the war between them in August — are to start energy negotiations in mid-December. Both sides are ready to play hardball, though Tbilisi has no option other than to remain dependent on its former Soviet master.

Georgia currently relies on Russian natural gas to fulfill approximately 60 percent of its domestic demand, with neighboring Azerbaijan fulfilling the other 40 percent. Russia relies on Georgia to transport natural gas to Armenia and pays Tbilisi 0.2 billion cubic meters (bcm) annually for that service (a fraction of Georgia’s annual consumption of 1.5 bcm). Georgia pays well below what Russia charges its European customers for its natural gas supplies, paying $260 per thousand cubic meters (tcm). It pays even less for Azerbaijani natural gas — approximately $180 per tcm — and receives 0.2 bcm in payment for transporting natural gas from Azerbaijan to Turkey.


Stratfor Members, please log in at the top left hand corner
Get Stratfor's Free Intelligence
Objective Facts and Non-partisan Analysis

Stratfor delivers premier analysis and insightful intelligence on the events and issues that shape your world! Become part of a community that wants to understand what's really happening in the world, doesn't have time for fluff, partisanship, and noisy clutter. Enjoy free Intelligence written by:

  • Dr. George Friedman – Geopolitics
  • Fred Burton & Scott Stewart - Terrorism & Security

Delivered to your inbox FREE!

Get right to the salient points and receive:

  • Situational Awareness - What's happening that you need to know?
  • Analysis - What do today's events mean to you?
  • Insight – no partisan agenda & no ideological bias

Stratfor is the world's leading private sector source of geopolitical intelligence. Sign up today and enjoy free intelligence.


SIGN UP FOR INTELLIGENCE UPDATES NOW!