RUSSIA: Russia deployed its energy weapon against Georgia last night, announcing it would double the cost of gas to its southern neighbour from January 1st.
The price hike comes a year after Ukraine faced a quadruple price rise from Moscow, and was announced amid continuing acrimony over Georgia's bid to join Nato.
Russian state gas monopoly Gazprom said that from January 1st it would charge Tbilisi $220 for 1,000 cubic metres of gas, compared with the $110 cost now.
Last month Russia announced an economic blockade against Georgia in retaliation for its arrest of four Russian officers on spying charges.
This latest announcement is likely to send a shiver down the spines of Europe's politicians as Russia shows its willingness to use energy supplies against its rivals.
Gazprom insists the move, like last year's price rise for Ukraine, is for economic reasons, pointing out that it sells Georgia gas at a subsidised rate inherited from the time when both states were members of the Soviet Union.
But Gazprom's closeness to the Kremlin - its chairman is also a deputy prime minister - will raise eyebrows.
The price hike also comes six months after another neighbour, Belarus, faced a four-fold price hike.
And it follows last week's decision to cancel a tender for foreign companies to develop a giant gas field, Shtokman. Gazprom announced it would do the job.
Gazprom made the announcement while Georgia's foreign minister, Gela Bezhuashvili, was in Moscow for talks.
Mr Bezhuashvili will take part in the first high-level talks between Georgia and Russia since Russia began an air, sea, road, rail and postal blockade on Georgia, which last summer began membership talks with Nato.
The dispute between the two countries has seen Russia deport Georgians working in Moscow and has led police to demand lists of names of Georgian children from the capital's schools.
A ban on Georgian wine and mineral water has been in place for some months.
Moscow wants Georgia to grant independence to two of its provinces, Abkhazia and South Ossetia. Tblisi has refused.