The Georgian government plans to provide the Georgian Oil and Gas Corporation (GOGC) with GEL 180 million in financial support, including an GEL 80 million subsidy and a GEL 100 million loan, to help finance natural gas purchases next spring. According to the Ministry of Finance, the company currently lacks sufficient resources to cover the cost of so-called optional gas purchases for 2027.
The ministry attributes GOGC's financial difficulties to years of subsidizing natural gas tariffs for households, which has resulted in hundreds of millions of lari in lost revenue. Under the proposed 2026 budget amendments, the subsidy will be provided by the Ministry of Finance, while the GEL 100 million loan will be issued by the Ministry of Economy and must be repaid by the end of 2027.
The State Audit Office had previously warned that GOGC could face liquidity problems due to the financial burden of subsidizing household gas tariffs. According to the company's financial reports, lost revenue from tariff subsidies reached GEL 135 million in 2025, GEL 93 million in 2024 and GEL 302 million in 2023. Over the past five years, the total amount of foregone revenue has reached approximately GEL 1.17 billion.
GOGC previously received a GEL 230 million government loan in December 2022, which was initially expected to be repaid within one year. However, GEL 110 million remains outstanding, with repayment postponed until the end of 2027. The latest financial assistance highlights the company's continued dependence on government support amid the growing costs of maintaining subsidized gas prices for households.
