The Russian oil giant Gazprom has concluded a deal with Georgia to supply natural gas at an increased price of $235 per 1,000 cubic meters.
Friday's announcement followed earlier threats by Gazprom that it would cut off supplies to Georgia if the new price was not accepted.
Georgian leaders have fretted about the higher price, which is more than twice what it pays now.
They accuse Russia of "political blackmail" and using its energy resources to punish the republic's pro-Western policies.
Even as Gazprom's decision was being announced, Zurab Nogaideli, Georgia's prime minister, told a briefing in Tbilisi, however, that Azerbaijan would be the country's main supplier of gas next year.
He made no mention of a deal with Russia.
Alexander Medvedev, the head of Gazprom's export division, said that Gazprom had signed the new contract with Georgian officials.
He said: "Clouds have dispersed, the sky has cleared and we can look into the future with optimism."
Russia's relations with its neighbour have been strained since Georgia briefly detained four Russian military officers on spying charges this autumn.
In response, Moscow imposed an economic and transport blockade, and cracked down on Georgian migrants.