On 26 August, the anniversary of the recognition of South Ossetia's independence by Russia, the Dzaurikau-Tskhinvali gas pipeline was launched, through which Russian gas will be supplied directly to the breakaway republic. It will end South Ossetia's reliance on gas supplies via Georgia. The Ossetian and Russian authorities have openly admitted that the character of the project was political rather than economic. The new gas pipeline will increase South Ossetia's dependence on Russia.
163 kilometres long, the gas pipeline has been built and financed (at a cost of US$500 million) by Gazprom. The construction started in late 2006; the pace of works accelerated following the Russian-Georgian conflict in August 2008. The pipeline is technologically unique, in that more than half of its route lies at altitudes over 2,000 meters above sea level. The project's main objective was to end South Ossetia's dependence on gas supplies via Georgia (the Agara-Tskhinvali pipeline).
Because of the high costs involved in the construction, the project was not justifiable from an economic point of view. During the opening ceremony, the South Ossetian prime minister Vadim Brovcev stated openly that Gazprom "was involved in political, rather than economic projects in the republic". The price of gas supplied via the pipeline will be US$15 per 1000 m3 (Georgia pays US$225). Gas will only be supplied from Russia to Tskhinvali, because no gas distribution networks exist in the remaining parts of South Ossetia. <WojK>.