DEALS GIVE RUSSIAN COMPANIES INFLUENCE OVER GEORGIAS ENERGY INFRASTRUCTURE Zeyno Baran: 8/18/03
The fragility of Georgias electric system became vivid on August 18, when a disruption to a transmission line switched off the entire country. Government officials promptly claimed sabotage. But opposition politicians in Tbilisi accuse President Eduard Shevardnadze of betraying citizens by allowing Russian energy companies potentially decisive influence over how Georgia delivers electricity. Russias electricity monopoly took controlling interest of Georgias power plants on August 6, weeks after a Moscow-based natural gas giant won the right to upgrade and manage pipelines through Georgia. Many observers suspect Shevardnadze of trading strategic assets in return for a promise that Russian players will back his political allies in a contentious upcoming parliamentary vote.
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