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#10, Pt.5
Journalist - They probably don’t know that American Congressmen could lose everything in life because of this if they were noticed in this type of lobbying and could end up in a very big scandal.
Zaza - And, that’s exactly the problem. Here are people who don't even understand such elementary issues and don't even want to look at it and find out the detailed terms of the contract, in the sense that "now we have to stop the contract", "We couldn't do it in court?" Then let's try to use force. ”That's the problem.
Let’s assume that somehow the sharp criticism that the government has received from the West has cut it, and presumably it will no longer dare to force you to stop. Don’t you have the feeling that something has gone wrong? This issue is so politicized in the context of international politics, that it will probably have to give up power. Don’t you have that feeling?
Here is the issue. For this answer I will use the letter which was sent by senators Cruz and Cornyn and congressmen Markwayne Mullin and Judie Arington to State secretary and also Minister of Finance of USA. In the letter, one of the sentences was that "Mr. Ivanishvili and his government are cooperating with rivals and enemies of the United States, and this is at the expense of America's geopolitical and commercial interests." In addition, just a week ago, if I am not mistaken, the Republican Committee, which includes 147 members of Congress, also mentioned Mr. Ivanishvili in the National Security Report, who is destabilizing Georgia in the interests of Russia. These people, and these institutions in the United States, have a lot more information than me and our company management. Now, if we put in this context the story of what is happening to us after 2013, I think we can very well find the key to why all this is happening.
You wrote a rather harsh letter to Gakharia. Here I have this letter. Steve Nicandros, Chairman of the Board of Directors of “Frontera Resources”, and you wrote a very scathing letter directly stating that "since 2013, we have seen growing anti-American sentiment and discriminatory attitudes toward important US investments and NGOs." Let's clarify one thing before we continue talking about this particular letter, what do you mean by the growth of anti-American sentiment? From the government or the general population? Is the anti-American sentiment growing among the population of Georgia?
We can't see. It doesn't look like that from our point of view. On the contrary.
I still can't see it and, therefore, I want to clarify what you mean by anti-American sentiment. From the government?
From the authorities, yes. On the contrary, over the years we have seen growing interest and growing support among the population. There is a growing aspiration in the western direction, in terms of values, business, education, etc. But on the government side, we have seen since 2013 that this vector is changing and has changed radically over th
#10, Pt.4
Journalist - What a strange dead-end, I am trying to figure out with you the next steps.
Zaza - I’ll tell you what to do now in a minute because there’s no dead end. It says in the resolution that we have the right to continue, the contract says that we have the right to continue for many more years, just the government, which has been trying for the last 7 years to somehow terminate this agreement, tried in court, tried different methods. It did not work. And, the last thing they have left, is to try to do it by force. So there is no legal solution for them here anymore. They tried everything and did not succeed.
Can a forceful method be to send people to stop you physically?
Of course. For example, our employees and we are no longer allowed to do so, for example, operators are not allowed to continue drilling, extraction work, and so we are no longer allowed back to our investments.
However, it is difficult to imagine how this could actually happen, because of "Frontera" case which is, I think, one of the most painful for this government. In fact, the entire US Congress has been declared the lobbyist of the Frontera. And, if the Frontera is so strong, in their view, in principle, we know that the system doesn't work that way. But But in the understanding of our government, the lobbyist of "Frontera" is the whole Congress with its Chairman of its Foreign Affairs Committee., isn't it? In that case, how much risk do they take to carry out such an act and force the American company out of Georgia?
I think the problem is that our government is working in a different sense. Not on the condition that we have negotiated with the state for years and it is detailed in the agreement, not on the condition that it was determined by the international arbitration, where we were sued and, by the way, we did not even appear at the trial. The arbitral tribunal declared the other party in absentia as a loser. Well, that's the decent thing to do, and it should end there. By the way, it should be emphasized that all this has been added ... You have just mentioned that our government is no longer reluctant to curse the people in the United States who are expressing support for the growth of investments, the economic strengthening of Georgia, the political strengthening of Georgia. Now, the deputy parliament chairman said that they are lobbyists…
Could you please remind me that.
This was Mr. Kuchava, if I am not mistaken.
Kuchava? Do you mean that legendary letter? No, no that`s different
The public is so misled that it seems like it is a normal, legitimate business for a congressman to take money and make a supportive statement in exchange for that money.
#10, Pt.3
Journalist - Should be returned to the state. What percentage of these areas are there? Is it really 99% or very small? The talks were about 99%.
Zaza - They try to present it as 99%, but it is unclear how they report it or where it comes from. Anyway, all the areas where we are not doing this work, about 1 month ago, maybe more, 1.5 months ago, we have already returned to the state.
And, you don’t need these areas? You returned them because of the decision, right?
Yes. The decision was written that we have to return them. On the contrary, to be honest, the state should have asked us to keep these territories, because, for example, now there are no works in those areas, no investments are made and no people are employed. If we had kept these territories, now there would have been about 100 people working there. A search would be launched and if successful, we would have found more oil and gas in the area.
However, we know that state authorities say that you do not count the supplies, but the resources, and this is hypothetical, and in fact is that there are no supplies there. These are resources and therefore there are a lot of issues that you are constantly debating but the fact is that you really need to find some compromise. Can't it be like that? You read one decision in your own way, keep working, the state reads differently and thinks that the contract with you is practically terminated, right? So it turns out and they are going to terminate this contract. What should happen? How do you see this situation and what do you specifically demand if you can tell us?
Today, we made a public statement to the authorities, calling once again that neither by agreement, nor by the decision of the arbitral tribunal, nor by law, they have the right to unilaterally terminate the contract and no longer allow us to return to our investments and continue working. If they do it by force, it will be an expropriation, for example in Venezuela - Maduro is doing the same, or Putin is doing the same in Russia. Therefore, it is not legal. This will be a criminal act and today we once again publicly call on them not to do that ...
Or will they be forced to stop working? Is that how you see the situation? Or they will bering the executive and make you to stop the works/extraction or search work? I don't know exactly how this works. So, should they stop it?
The executive cannot be brought in because there is no such court decision. Even if there is a court decision relevant to this decision, the executive cannot be brought.
#10, Pt.2
Journalist - What is this all about? In principle, you do not find it difficult to make political assessments. Your statements are very bold. There are political statements, practically. I don't think there's anything wrong with that. Take this assessment simply as my perception of the fact and its statement. I’m not saying something in context. Or what would it be? Isn't the process related to the fact that the Georgian government has pressure from the West, specifically from the United States - constant letters, a constant reminder that the American company is being harassed in Georgia. So did you have to? We know that, for example, the constitutional changes are because the government has somehow given us, the Georgian people, with the help of the West. Isn't Frontera the same story that they show Americans that they are ready to give up?
Zaza - I do not rule out that it is the result of this communication and this pressure that this step has been taken. It was as if some concessions had to be made. It was as if they wanted to consider some conditions. However, this is just a maneuver and another farce, the like of which we have seen many times in the past. And, the basis for this conclusion is that in the same statement they made yesterday, they continued the disinformation campaign, which has been going on for several months.
What you mean, specifically, is that you don’t meet the conditions, and so on. Do you mean that? What disinformation campaign are you referring to?
Because of the disinformation campaign that has been going on since the arbitral decision was published. It is because of this decision that the arbitral tribunal has not complied with their request to cancel the contract with us.
However, they say they have upheld the lawsuit. It is very interesting how the decision can be interpreted in such a way that the guilty verdict is satisfactory. Is such a thing possible at all? I do not know.
It is impossible. Such a thing does not happen, and especially at the level of arbitration of such a rank, when the decision on black and white is very clearly defined so that it leaves no room for speculation. But, nevertheless, they said ...
The Ministry of Economy reads that "the State Agency for oil and Gas Corporation has met the absolute majority of the interpretation of the contract norms and their claims." That's exactly what it's written about.
Can anyone draw any conclusions from this sentence? What does "interpretation of norms" mean? Arbitration ...
Looks like the oil and gas corporation interprets arbitral decision in its own way. It usually means that, doesn't it?
The Oil and Gas Corporation and the state, which was represented by the Ministry of Economy’s Oil and Gas Agency, had 14 claims against us. Of these 14 requests, 12 courts were not satisfied. Only 2 were satisfied. 1 of these 2 requirements is that the territories where we do not extract oil and gas should be returned to the state .
Translation #10 Zaza interview TV Kavkasia, 25/06, 26m US$72.10 POSTED 30/06
Pt.1
Journalist - In the first part of the show, we will talk about “Frontera”. A company that has become a very painful topic for the Georgian government, especially in terms of criticism from the American side about the government's crackdown on this company. In virtually every letter sent by the US Congressmen to the Georgian government, it is said that the Georgian government is harassing American interests and American business. For example, "Frontera" is always cited. Recently, more precisely yesterday, the Ministry of Economy announced that it is ready to resume negotiations with the company "Frontera", with which it intends to terminate the contract and find a compromise in order for the company to continue working in Georgia. How and in what form it is still unknown. In the first part of the program, Zaza Mamulaishvili, President of “Frontera”, will be our guest and we will talk about what happened after the announcement of the Ministry of Economy and whether any concrete steps have been taken to start these negotiations. Thank you Mr. Zaza for participating in the program. We know the official statement of the Ministry of Economy. The Deputy Minister of Economy said that they are ready to discuss the issues with your company and find such a compromise that it is possible to continue working on the mines owned by the company "Frontera" under certain conditions, of course, by receiving the appropriate guarantee from him. Did you have any specific, direct feedback from the Ministry of Economy? If you are planning a meeting or if you know what compromise can be talked about?
Zaza - Thank you so much for this opportunity. To be honest, we were a little surprised by such communication, especially when we were addressed in public about the meeting, and this was when we have signed the 1997 agreement with the state, we now have the exact terms and conditions for continuing to work on the fields that the Minister of Economy and his deputy referred to yesterday.
However, it has happened since you lost the dispute in the Arbitration Court, didn't you?
We have not lost the dispute
This is how it is interpreted. Let's talk about this as well, but before that what is the situation now? Did the Ministry of Economy contact you? Did they contact you directly?
We were addressed in public. We were directly contacted by the Deputy Minister last week that they wanted to make some commercial proposals, which ...
They wanted you to prepare the proposition?
No, they wanted to make a proposal for us, to which we agreed, of course, and said, “Yes, sir. As soon as you submit this proposal, we will be happy to meet you and discuss the details." But even after that, they did not submit a proposal, and to our surprise, they addressed us so publicly about the meeting yesterday
#9, Pt.3
J2 - Of course, we had a lot of questions with the Georgian side, but no further explanations have been made today. Probably, this meeting will take place, which we will follow and we will definitely tell you in the next editions. Another statement by the Minister of Economy was issued today. Natia Turnava says that "the Georgian government will do its best to make American companies feel good in Georgia. The door of the ministry is always open for them to discuss each problem, we should hope that there will be a close relationship between investors and the ministry and there will be no more problems that this or that company will face. "
J1 - Thanks, Nino. Nino Tabatadze introduced us to the proposal of the Ministry of Economy and the response of "Frontera".
https://www.youtube.com/watch?v=_7KRHadw7oY&feature=youtu.be
#9, Pt.2
J1 - Nino, as far as I know, you also talked to the general director of the company. I wonder what their position is on the offer of the Georgian side?
J2 - Nika, of course, when we heard this statement from the Ministry of Economy, we contacted the company "Frontera" and talked to the CEO of the company. As Zaza Mamulaishvili told us, a few days ago the company received a message from the Ministry of Economy that they wanted to make a certain offer to the company, but in the end, the company still learned from the media that the Georgian government would compromise. As Zaza Mamulaishvili tells us, the company continues to operate in Georgia and the decision of the arbitration is not such as to be the basis for termination of this contract. As Zaza Mamulaishvili explains, the company has already returned part of the land. As for the amount to be paid, the Georgian government itself has certain amounts to pay to the company, which refers to the return of overpaid VAT, so it is possible to deduct these funds to some extent. The company hopes that the meeting will take place and the company will continue its activities, as the Georgian side has no right to terminate their contract by the decision of the arbitration.
Zaza - We first heard in the press that they wanted to meet, but it is unclear what the purpose of all this is because in the same address they continued to spread false information about the results of international arbitration, our activities and the contractual obligations under which we work. If they think that they are expropriating our investments, then we will find ourselves in a different reality, but they do not have the right to do so by law and contractually. So it is still unclear what they are asking for because we are still working. We have not stopped working for a minute, although we have reduced the volume / scale of work due to these current events, but we have not stopped. And, legally, they can't stop on 27 either. The main demand they had was that we be fined more than $ 100 million, which the arbitration did not satisfy, and they also wanted to cancel the contract for us, and the arbitration also refused. But what the arbitration has imposed us is to return the areas where we do not extract oil and gas to the agency again, and we did that about a month ago.
Translation #9 – News segment via YouTube, 23/06, 5.30m, US$25.75 POSTED 24/06
Pt.1
J1 - Two months after the end of the arbitration dispute, the Georgian government is ready to compromise with the US-based investment firm “Frontera Resource Georgia” so that it can continue to operate on certain terms at the mines owned by Frontera. What does the Ministry of Economy demand in return for this right and what is the investor's response to the offer? Nino Tabatadze will tell us this now. Nino, I wonder why the position of the Georgian side has changed?
J2 - Nika, the position of the Georgian side, can be said to have changed suddenly, because until yesterday we knew that based on the decision of the arbitral tribunal, the Georgian side demanded that the company "Frontera" leave the entire license area. What happened yesterday? Yesterday, the US Ambassador, Kay Degnan, visited the Ministry of Economy. At this meeting, they talked about attracting American investments in Georgia. The Georgian side expressed a desire to see more American investments in the country. Apparently, the meeting also touched upon the American company Frontera, as the Deputy Minister of Economy issued a statement late last night, saying that the government was ready to compromise so that it would be possible to continue working on certain conditions at the fields owned by “Frontera”. Until now, as I mentioned, we knew that the Georgian side demanded the enforcement of the decision of the Arbitration Court and informed the company "Frontera" about the termination of the contract. By July 27, Frontera had to pay $ 6 million and leave the entire license area.
Davit Tvalabeishvili (Deputy Minister of Economy and Sustainable Development) - According to the decision of the arbitral tribunal, all the main issues raised by the Georgian side were positive in all these matters. As you know, after this decision, there were some questions left for both “Frontera” and our partners from the United States, and I just want to state that we are ready to discuss these issues with the company. We are ready to try and find such compromises that it will be possible to continue working on the mines owned by the company "Frontera" under certain conditions, of course, by receiving the relevant guarantees.
#8, Pt.4
J1 - Perhaps Anaklia contributed to the formation of this idea? And when it comes to American business, how instantaneous is the reaction in Washington and even in Congress?
Zaza - When it comes to American investments and companies, there is a lot of interest in Washington, it has been for years, because there are a lot of people in Washington in the Capitol, in the administration, in the White House, who are infinitely big supporters of Georgia and the Georgian people. Therefore, Georgia's economic success, political success, this is the basis and has a valuable connection with us in this regard. Therefore, there is a lot of support. This is because they want more American companies in Georgia, more capital to come in, more money to come to the country to create more jobs and more wealth in the country. What's really going on? American investment is facing a huge problem. In addition to us, we are appearing because we are the biggest investors in the country at the moment. In fact, there are others who have problems, but others are given a preferential environment, while American companies are oppressed and virtually expelled from the country. By the way, I’ve also listened to you previous speakers, politicians, and now I want to take a chance, and tell you that I don’t know if this is happening because of political correctness, but I would urge everyone to speak out about it out loud. Because, in practice, their silence is an agreement with the government to continue persecuting and harassing American businesses and American companies.
Thank you very much. This was Zaza Mamulaishvili, who has been saying for a long time that „Frontera“ is an object of attack from the government, and also, as we have seen recently, there has been a lot of activity from the United States that American business in the country is under pressure and that Georgia favors Russian and Chinese companies, and sometimes Iranian.
https://www.facebook.com/107065540663565/videos/????-???????-??????-?????/211402503272921/
#8, Pt.3
J1 - As for the war of lobbyists, which has been very topical lately, and we have seen that the last activity was the letter of the lobbying company and Nord Coleman, you know very well about this former senator who is now a lobbyist and published a letter of praise for Bidzina Ivanishvili. As we know, he was also involved in the campaign against “Frontera” and had the support of the Georgian state. What do you know about these negotiations against American companies in Congress?
Zaza - Senator Coleman is a former senator. It has been 3 years, maybe the 4th year that he has been involved with the Georgian government in lobbying against "Frontera" in Washington. It works very actively. It is a very strong and good company, and especially Senator Coleman is very famous in Washington. He is a very good professional. However, I can’t tell you that they have succeeded in this regard. The fact that they tried to discredit our company and our business, was not successful for them. And, they didn't succeed because you may have a very good professional in Washington, you have a contract with very famous lobbying companies, but if you don't have the truth, which you have to deliver it to the right place and at the right time in Washington, then you can't achieve it and that's why it happens that, if you remember, was the first time in 2016, when the proposal was made in the Congress Hall that Mr. Ivanishvili was acting in the interests of the Russians, after this this escalated, escalated, developed this topic, and despite the many lobbyists who worked on this topic, what do we have today? Here, a 147-member congressional committee, reaffirmed Mr Ivanishvili's ties to Russian interests at the expense of American geopolitical and commercial interests.
#8, Pt.2
J1 - Yes, the corporation is talking about winning the arbitration. And yet, before we move on, I would like to recall the letters of Congressmen and senators signed by Ted Cruz. Is this all due to this type of activity? What do you relate to this turn of events? If it is reversed, we will find out later, but still ...
Zaza - Of course, we will probably find out later whether there is a reversal because the content of this appeal is a continuation of the spread of this false information and talk about some non-existent terms and conditions. However, I think these communications do have some impact, as Senators Cruz and Cornin, who addressed Congressman Arrington and Markwayne Mullin as Secretary of State and Minister of Finance for the United States, set out very clearly how dissatisfied the United States is: That American companies are not allowed to operate in a normal environment in Georgia, they are not allowed to invest in a normal environment, and this is when Chinese companies enjoy preferences. Take Poti, for example - 75% of the free economic zone belongs to a Chinese company that has pledged $ 150 million in investment and has not invested a single tetri today, but no one is saying anything. Or Russian companies, such as Rosneft, which also has a large position in the port of Poti and in terms of distribution of oil products in Georgia. It has not only violated Georgian law on the occupied territories and the Criminal Code, but has even been sanctioned by the United States, but operates in a free environment. While we have committed to investing more than 25 times, we have made a huge fortune for the country and the people. Tens of millions of GEL have been paid to the budget, and yet in such conditions we have to have a contradictory relationship with the state and work in difficult conditions. That's what their letter was about, and that's how we want the state to allow us to work normally under the contract.
#8 – Zaza TV interview, 23/06 from 37m mark, US$36.05, POSTED 26/05
Pt.1
J1 - Today we are talking about the constitutional amendment, which was adopted under international pressure and international involvement, with the activism of the Allies in two hearings. And the activity of the Allies, the letters from Washington may be linked to the recent statement made by the Deputy Minister of Economy and Sustainable Development, which refers to the American company "Frontera". We read directly in the statement that "after the arbitration dispute with the company"Frontera", the state is ready to find a compromise and it is possible to continue working on certain conditions on the mines of the company"Frontera". What has changed recently and what opportunities does the state-owned company now offer to “Frontera”? We will talk about this now with Mr. Zaza Mamulaishvili, a representative of the company "Frontera". Hello, Mr. Zaza.
Zaza - Hello
You have had a dispute with the state for a long time, and lately we have been hearing from the government that the lobbyists of the Frontera, their merit, are criticizing the Georgian government on other issues as well. What has changed? First of all, let us know what happened. What is today's decision related to?
To be honest, this decision was made today in a rather unusual format, at an unusual time, in an unusual place. For example, 4-5 days ago I had a personal conversation with Mr. Tvalabeishvili, the Deputy Minister, in order for him to contact me and tell me he wanted to do something for the company, which we agreed to discuss if we could formulate this proposal. It was completely unexpected. In 3 days why it was necessary to announce the decision via TV or press. They were willing to meet, it was a bit strange for us.
Is it a format of cooperation?
Of course. Moreover, we have been calling for years to work more effectively and well. Especially what surprises us is heart feelings, at the same time in the same letter or in the same address as the state, as the Deputy Minister of Economy, continues to spread the false information that he used to do.
What do you mean by that?
I mean, in particular, the agreement we signed in 1997, which is signed by the state on the one hand and the company on the other hand, as well as the Oil and Gas Corporation, clearly states the conditions under which the company operates in the existing fields. What commercial or other conditions are defined there. So it is completely unclear what they are talking about, what they want to offer, or what new conditions Mr. Tvalabeishvili is setting. And, surprisingly, despite the fact that we have repeatedly appealed to the state, including the Ministry of Economy, and have not met so far, they continue to provide incorrect information to the public and the people. Because it is as if the corporation has achieved some uncertain victory ...
#7, Pt.6
J2 - Georgia is not the only case. Frontera's reputation has been damaged in other countries as well. Foreign media are looking for information about it. For example, it turns out that the company in Moldova claimed that the country would become an exporter of electricity in the region. Authorities have announced a tender, which was won by a subsidiary of “Frontera” in questionable circumstances. "Frontera Resource International" appeared on the Ukrainian market a few years ago. The company should have signed strategic agreements on the transportation and processing of oil and gas. However, as the journalists of the Ukrainian portal "No to Corruption" found out, despite the noisy statements, the leadership of "Frontera" did not actually sign any contract. As an investor in Azerbaijan, “Frontera Resources” first appeared in 1998. The company has taken an obligation to commercially exploiting oil from several fields. According to the contract, the State Oil Company of Azerbaijan had to sell the full volume of extracted oil. Four years later, “Frontera” withdrew from the deal and gave its place to the European Bank for Reconstruction and Development, with which it had a loan of $ 60 million. According to our information, the parent company of "Frontera Resources Georgia" owes 230 million, which should be repaid in August. The agreement signed with the Georgian side is indicated for security. If the Oil and Gas Corporation and the agency terminate the contract, then Zaza Mamulaishvili and Steve Nicandros' property should be used to secure the debt. Presumably, this may be due to the recent political moves made by Frontera. One important detail - we contacted Mr. Zaza Mamulaishvili, who is the director of Frontera Resources Georgia. For him, this format turned out to be unacceptable. It was only on airtime where he agreed to answer our questions. And, as I told you, he refused this format.
J1 - Tamar, thank you very much. I was really surprised by so many documents that you had to translate and then process, how did you manage to get so much information before 9 o'clock? This is a topic we will discuss in the future. Tamar Gogesashvili spoke about the "Frontera" scandal live.
J2 - Thank you.
https://www.imedi.ge/ge/video/54942/saertashoriso-skandalshi-gakhveuli-da-skhvadaskhva-qvekanashi-taglitobashi-mkhilebuli-prontera
#7, Pt.5
Giorgi Tatishvili (Director of Oil and Gas Agency of Georgia - As for the resources that Frontera appeals to, and among them uses the opinion of an independent expert, an expert company, yes, such a conclusion really exists. It is available, but it is clearly stated in this conclusion that the numbers that "Frontera" names and the resources that it says, these are undiscovered resources and are only hypothetical. It is also very important that the International Arbitration has shared our position on this in detail. In fact, these are numbers that are not based on discovery, and in order to transfer them, so to speak, in the inventory category, a lot of important work had to be done, which "Frontera" has never done.
J1 - Tamar, some senators or congressmen are lobbyists for the “Frontera” and accuse the Georgian government of putting pressure on them. To make it clearer to the viewer, does Frontera use lobbyists in the United States and pay money to lobbyists?
J2 - Irakli, public information is that "Frontera" paid lobbying companies, which are the leaders in the rating, for example, in 2017 they were paid 60 000 US Dollars. In 2018, the number and amount of lobbyists increased and amount payable increased to 230,000 US Dollars. And, so far this year, they have paid up to $ 80,000 in lobbying. At the same time, "Frontera Resources Georgia" fired employees at the end of 2019, for whom it has 11 months' salary debts. 84 citizens are still trying in vain to force the company to pay for their work. They also appealed to the court, held rallies, but no one from the company spoke to them.
Khatuna Ozashvili (worker) - We have 11 months` salary to take. After 11 months, they fired us without any reason. After that, for already 6 months now, we have been hanging in the air.
Valida Lolashvili (Worker) - We have not achieved our goal. He doesn't pay us a salary and doesn't tell us anything about it. We are affected. We have a lot of debt. We are in a difficult situation. Our mine is currently closed. The oil is exploding, polluting the area, and it probably needs to be taken care of in order to recover quickly.
Beso Janiashvili (Worker) - We have children. Salaries should be given to us. Why are they delaying? They took all this oil, sold it and put that money in his pocket and fed the congressmen and then went into business. He wants to enter alcohol business needs to do. They should take the money from them, take away that business and give us a salary.
#7, Pt.4
J2 - In addition to the international image, we can discuss specifically how this case was be handled by them. Our viewers learned a lot about the honesty of the “Frontera” from this interview. However, there are a few issues that further illustrate the look of this company. For example, the company's representation was not present at all in the international arbitration when the cross-examination was to take place. The company did not pay for the arbitration proceedings. Apparently, they wanted to slow down with this, after which the Georgian Oil and Gas Corporation paid this amount so that the process would not be stopped. However, the arbitral tribunal eventually ordered him to pay these costs. "Frontera Resources Georgia" appeals that the state is obstructing it, but when it encountered problems with the permission of the private owner to carry the pipeline, the state entered the court on behalf of "Frontera" and the dispute was resolved in favor of "Frontera". As for the ecological situation, after the "Frontera" left the area, there are mines that pollute and damage the environment. The company was fined by the State Oil and Gas Agency. They said they would solve the problem, but did nothing about it. After the arbitral decision became the subject of speculation, the Georgian side formally addressed “Frontera” and asked for permission to disclose the document, although it refused to do so due to commercial interests. Then, the Oil and Gas Corporation sent another letter and only asked to disclose only resolution part, although no response has been received yet.
Giorgi Bakhtadze (General Director of Oil and Gas Corporation of Georgia) - The International Arbitration Tribunal has imposed “Frontera” to return the territories, reimburse the court costs incurred by the Georgian side, and acknowledge the significant breach of the agreement. This means that the Georgian side, and in particular the State Agency, has the right to terminate the contract with “Frontera”. I would like to state with full responsibility that the money spent during the arbitration process was not paid from the budget. The whole process was funded by the Georgian Oil and Gas Corporation, and this is absolutely open information, which is reflected in our financial statements, and of course, these reports are on our corporate website.
Vazha Khidasheli (Adviser of Oil and Gas Corporation of Georgia - We suggest that “Frontera” provided incorrect information, misleading members of the US Senate and House of Representatives, which led to these statements. It would be good if “Frontera” would provide the text of the decision to these senators and congressmen. If they had read and seen the facts reflected in the decision, the arbitral tribunal, the evidence presented by the parties, they would not have made such statements and would not have been able to do so.
#7, Pt.3
KP (Contd) -Throughout the arbitration dispute, "Frontera" denied its obligations to concede the territories. Now that the tribunal has determined that they are obliged to concede the areas that they were supposed to concede in 2017, it has been presented as if it intends to do so. First of all, our dispute is of a purely commercial nature, relating to a commercial contract. It was reviewed by the International Arbitration Tribunal, which consisted of three very high-ranking international arbitrators. Stockholm was designated as the venue for the process. No arbitrator or judge was Georgian. One of them was Swiss, the second was a German living in London, and the third was a citizen of the United States. All three of them made decisions on this commercial dispute. The Georgian side now wants to enforce this decision. From the very beginning, “Frontera” tried to politicize this case, but it is not a political issue and a dispute. This is a commercial dispute and it was based on the principle of legality. From the very beginning, the Georgian side expressed its readiness to agree to the decision of the arbitral tribunal. Now the decision has been made and we hope that “Frontera” will implement this decision. The contractor, which is a party to the agreement, is “Frontera Resources Georgia Corporation”, which is registered in the Cayman Islands, but operates in Texas. Formally, it is an offshore company, but as far as I know, Frontera operates several companies, some of which are offshore and some of which operate in Texas.
J1 - Tamar, this was a very interesting exclusive interview, but our viewers will probably be interested and, naturally, are interested in the international image of "Frontera". Many articles in different countries are written in a very negative context regarding this company, and many of them refer to the representatives of this company as fraudsters. Once again, these are not our words. This is often heard in various assessments. What is their international image? What information do you have?
#7, Pt.2
J2 (contd) - One of the most important things we've learned from him is that Frontera's statements that the international tribunal has denied the corporation's and the agency's request to terminate the contract are incorrect, because such a request has not been made and cannot be made. When the International Tribunal granted the relevant request of the Corporation and the Agency, and after establishing a substantial breach of contract with “Frontera”, the Georgian side had the full right to terminate the contract with “Frontera” and send a proper message to the company even if the company returned the territories. According to the lawyer, this is confirmed by the motivational part of the arbitral tribunal's decision.
Karl Pörnbacher, Hogan Lovells - I am surprised by this discussion. I have never seen anything like it in my 20 years of practice. The decision of the arbitral tribunal shall be clear and unambiguous. The Georgian side has made a proposal to make the decision public, so that it can be made available to the public and put an end to these discussions. However, Frontera declined to comment on the allegations. Discussion about who is the winner is irrelevant. The demands of the Georgian side provided for 3 or more 4 main issues. The first concerned the issuance of a decree on the concession of almost 99% of the territories, which "Frontera" had to do in November 2017, and since then has refused to do so. The second was to confirm that “Frontera” had substantially breached the contract. Third - imposition of legal costs related to the process for "Frontera". In addition, “Frontera” has filed a $ 3.5 billion lawsuit against Georgia, and our fourth task was to protect Georgia from this lawsuit. All four items were satisfied. "Frontera" is obliged to cede territories. Second, the tribunal found that “Frontera” had substantially violated the contract. Third, the company must reimburse most of the legal costs involved in the arbitration process, and fourth, the arbitral tribunal has stopped considering a $ 3.5 billion lawsuit in response to „Frontera“, after the „Frontera“ withdrew the issue of his claim. Unfortunately, „Frontera“ never intended to fulfill the contract during the period when I started working on this case, nor before. The Georgian side has been negotiating for an extension of the contract since 2015-2016, in connection with the extension of the contract in the post-2017 period. However, Frontera has never had the opportunity to take obligations to invest in these areas. In 2017, the parties resumed negotiations. The Georgian side offered to resolve the dispute through negotiations and even mediation. However, "Frontera" refused to do so.
Translation #7 – News segment with GOGC from 17/6, US$55.00 POSTED 27/06
Pt.1
J1 - Wrapped in a number of international scandals and exposed in fraud in various countries, „Frontera“ is still trying to blackmail the Georgian state by ruining relations with the United States. The company also uses lobbyists, including American congressmen, who are paid tens of thousands of dollars a year by „Frontera“ for lobbying. Despite the loss of the dispute with the Georgian Oil and Gas Corporation in the international arbitration, the company's representatives are trying to convince the public that they have won the dispute. The decision to disclose the arbitral decision has been rejected so far. What is written in the decision? In fact, in "Imedis Kvira" you will hear exclusively and for the first time the comment of a lawyer who defended the positions of the Georgian side in the international arbitration. Tamar Gogesashvili read almost all the documents and also met the person who knows much more about this dispute and can say much more about the international image of "Frontera". Tamar, you are live and, finally, tell us who is and what "Frontera" wants in Georgia?
J2 - Irakli, I welcome our audience. The International Arbitration Tribunal has fully complied with the claim of the Georgian Oil and Gas Corporation and the Oil and Gas Agency exactly 1 month ago. With that, the 27-month dispute should have ended, but the dispute between the two commercial entities has now shifted to the political arena, and if we look at the activities, it is really the merit of the “Frontera”. This is not surprising, as “Frontera” tried to politicize the issue when the Georgian side launched an arbitration dispute. This issue became especially active when, a few days ago, four US congressmen addressed the Secretary of State and the Minister of Finance, accusing the Georgian government of harassing American businesses, such as the “Frontera” case. In order to explain the processes to the audience and to understand them, let us start with the legal part. Karl Pörnbacher, a lawyer and partner of the international law firm Hogan Lovells, defended the interests of the Oil and Gas Corporation during the international arbitration dispute against “Frontera”. We managed to record it exclusively and asked a few questions, including what Frontera claims to have won in the international arbitration dispute, as well as the letters and accusations made by some senators and businessmen about the harassment of American businesses in Georgia. Now we can hear his answer, which is very interesting.
#6, Pt.3
J2 - A new attack by the “Frontera” lobbyist raises doubts among experts as well. Part of the analysts do not rule out that Mullin carried out the order of a certain group, even in this case, in exchange for financial benefits.
Andro Gvidiani ("Expert") - "Frontera" paid money to make statements in support of "Frontera". Therefore, any organization, any person, any interest group may be behind all this. It will be difficult for me to name specific names and it will not be correct as well, but the arrows are going, of course, to the opposition, which is trying to spread misinformation about Georgia through lobbying activities, including spreading false information.
J2 - No further explanations have been given by the Georgian embassy today, although it is possible that other signatories, like Bacon, will state their position.
Source - https://m.youtube.com/watch?v=84RjV2oahC0
#6, Pt.2
Don Bacon - “I am ready for feedback and I will be the first to say I am not an expert on this person. If we make a mistake, I will use all means to raise my voice and return to our colleagues and say that we need to correct this passage.”
J2 - Mullin's accusation of diplomat is categorically unacceptable to the ruling party. Especially from the congressman who is observed in the circulation of misinformation, for example, regarding the issue of "Frontera". Today, the deputies reminded the Texas Congressman of the financial benefits transferred to him by the Texas company "Frontera". According to open secrets , "Frontera" transferred several thousand dollars to Mullin during the election campaign.
Kakhaber Kuchava (Deputy Chair of Parliament) - We are talking about the Republican Congressman, specifically this one person who is officially receiving funding from “Frontera” and is engaged in lobbying activities, which, of course, is allowed by law, and it is his right to criticize or praise us according to the interests of his sponsors. So, it wasn’t surprising to me.
Irakli Berisa (Chair o the Parliamentary Foreign Affairs Comtte) - He is well known as an active supporter of “Frontera”. And for this very reason, over the years he has made quite subjective, unfounded and not-so-positive assessments of the Georgian government. And his next tweet is nothing more than a continuation of the message supporting "Frontera". To be honest, I would have been surprised if he had made different statement. This congressman is well known for his views and with these views on the Georgian government he is in the absolute minority, and his position in no way reflects the position of official Washington.
Mamuka Midinaradze (Leader of Parliament Majority, Vice Speaker) - Congressman Bacon himself confirmed 2 days ago that the record did not belong to him and that the record had been prepared by Staffer. For some reason today we ignore Bacon’s statement and focus only on Malin’s statement. It will be a great pleasure for me and our team to join the fight against Russian interests in Georgia because there is nothing more damaging than that, and first and foremost, all of us need to remember the people who are more dangerous when they declare themselves pro-Western and do works in favor of Russia.