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Georgia Agrees To Gazprom Price Hike

Gazprom announced today that it has concluded a deal with Georgia to supply natural gas at the price of $235 for 1,000 cubic meters beginning January 1.

RIA Novosti cited the chairman of the state-controlled gas monopoly Gazprom, Russian First Deputy Prime Minister Dmitry Medvedev, as saying Gazprom has signed the contract for 2007 for a volume of 1.8 billion cubic meters.

The move ends months of speculation as to whether Georgia was prepared to accept Gazprom's demand that it pay more than double the $110 it currently pays for gas.

Copyright (c) 2006. RFE/RL, Inc. Reprinted with the permission of Radio Free Europe/Radio Liberty, 1201 Connecticut Ave., N.W. Washington DC 20036. www.rferl.org

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