U.S. Department of State
Statement by Richard Boucher, Spokesman
January 3, 2001
Cutoff of Gas Supply to Georgia
On January 1, the Georgian government announced the cutoff of natural gas supplies by Russia to Georgia's Gardabani power plant. As a result, electricity production in Georgia has dropped dramatically during the peak of the winter heating season and the Georgian people face severe hardship. A continuation of this situation would have serious humanitarian and economic consequences for Georgia.
In cutting off the gas supply to Georgia, Russian authorities have abrogated a valid contract between AES, a U.S. company, and the Russian firm Inneftegazstroy (INGS), thereby substantially interfering in an international commercial transaction.
We call upon Russia to quickly restore the flow of gas to Georgia to ensure the health and safety of the Georgian people, and to allow Inneftegazstroy to fulfill its contractual obligation to AES.
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