Page 56 - GEORptFeb22

Natural gas price hike in Tbilisi fuels Georgia’s problematic inflation
coronavirus outbreak, to judiciary reform. The EU said after the government’s refusal that Georgia failed to meet the condition and would not be eligible for the loan anyway.
The natural gas price charged by Tbilisi Energy, the utility that delivers gas to Georgia’s capital city and surroundings, will increase by 17% to Georgian lari (GEL) 539 ($163) per thousand cubic metres with effect from June 1, as per a May 27 decision introduced by the Georgian National Energy Regulatory Commission (GNERC).
The move will further push up headline inflation, which in April stood at 7.2%, unchanged from March. Rising inflation has already forced the monetary authority to increase its key interest rate to 9.5%. The current gas tariff entered into force on January 1, 2020, and was meant to apply until the end of 2022. GNERC said that the hike was necessary to ensure a “safe and reliable” gas supply to the capital.
Tbilisi Energy requested the rate increase, citing a GEL25mn ($7.6mn) loss incurred over the past year and a half due to currency depreciation. The company said it has also asked to calculate the gas price in the national currency in the months ahead to “protect the population” against price increases in relation to exchange rate fluctuations.
Earlier, on January 3, the company's gas price was increased by 31% to GEL1,100 ($333) per thousand metres for commercial users.
Tbilisi Energy supplies gas to around 1.5mn people and 18,000 commercial users.
9.1.13 Defence sector news
Georgia eyes a new batch of Javelin missile systems
Georgia adopts cybersecurity strategy for
Georgia is working on purchasing an additional batch of Javelin anti-tank man-portable missile systems, according to a Georgian government press release on January 31. The US State Department made a decision on the possible sale of Javelins to Georgia in August 2021.
The Ministry of Defense of Georgia will purchase Javelins in a simplified manner, within the framework of an agreement between the governments of the two countries. The purchase with a total value of $26mn will be financed from funds provided by the US, as well as from funds transferred from the state budget of Georgia under agreements between the US and the government of Georgia.
Speaking of the State Department's decision, the US Embassy in Georgia said last August that Georgia had asked the US to sell 82 Javelin FGM-148 missiles and 46 launchers, as well as other equipment and services. At the time, the embassy stated that the potential sale of Javelins to Georgia would help US foreign policy and national security, as it would "enhance the security of Georgia, which is a strategic partner and key contributor to security and stability in the region".
"Javelin missile systems will help Georgia strengthen its long-term defence capabilities to protect its sovereignty and territorial integrity, as well as to meet the requirements of national defence," the embassy said in a statement.
The decision to sell the first batch of the Javelin system to Georgia was made by the United States in November 2017. The first shipment worth US$75mn arrived in Georgia in January 2018.
Georgia’s National Security Council reported on October 7 that the government has approved the country’s 3rd National Cybersecurity Strategy. It will cover 2021-2024.
56 GEORGIA Country Report February 2022 www.intellinews.com