Russia Set to Double Gas Prices for Georgia

Russia is likely to more than double the price of natural gas to Georgia in a fresh sign of disintegrating relations with the former Soviet state. The planned hike echoed the cutting of supplies to Ukraine during the "gas war" in January and in a calculated snub was made public as Georgian foreign minister, Gela Bezhuashvili, visited Moscow in an attempt to smooth relations following a spy scandal last month.

Moscow has increasingly used energy prices as a means of punishing hostile states in its former sphere of influence that are orienting themselves towards the EU and the US.

A Gazprom official told news agencies they want to raise prices from $110 (£58) per 1,000 cubic metres to $230, although an agreement had yet to be reached.

In an interview with the Guardian and other western media Mr Bezhuashvili said Russia would need to explain why such a large increase was needed. "They present this as a commercial deal but there is a big portion of politics inside the price," he said.

Moscow has consistently denied the increases are political, saying prices are only being brought in to line with those on the European market. However, Ukraine and Georgia appear to have been singled out for large hikes because of their leaderships' desire to join Nato and the EU.

Relations between Moscow and Tbilisi dipped further last month after Georgia arrested four alleged Russian spies on its territory and deported them. In response Russia cut all transport, trade and postal links to its neighbour and sent several hundred Georgians home on transport planes.

Mr Bezhuashvili held talks yesterday with his Russian counterpart, Sergei Lavrov, in the first official contact since the crisis, but there was no breakthrough on lifting sanctions.

Georgia is expected to seek alternative sources of gas from Azerbaijan, Armenia and Turkey.