OREANDA-NEWS. Standard & Poor's Ratings Services said today that the direct impact on Georgian real economic growth of the widely anticipated increase in the price of natural gas from Russia-based gas company OAO Gazprom (BBB-/Stable/--) from $110 per thousand cubic meters (tcm) to $230 per tcm in 2007 would likely be modest, at only about 1.1% of GDP.

That said, the crisis in relations between the Government of Georgia (B+/Positive/B) and The Russian Federation (foreign currency BBB+/Stable/A-2; local currency A-/Stable/A-2), including the ongoing blockade of all trade and transport between the two countries, is likely to have a larger impact on overall economic prospects, and is increasing political uncertainties.

This could potentially impact negatively on Georgia's creditworthiness in the future.