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#27 Pt.3
J2 (contd) - However, before this announcement and before and after the meeting with the Ambassador of the United States, there was a letter, a number of very serious ones, signed by senators and congressmen. The letters repeatedly mentioned the name of the company "Frontera" and wrote that the Georgian government and Bidzina Ivanishvili are trying to expel American business from the country, which is done in favor of Russian, Chinese and Iranian interests.
Giga Bedineishvili, Political Scientist (GB) - If you want to really climb the country, how Ivanishvili climbed Georgia and literally turned the country into his backyard, if you want to achieve that, you have to do something that will always worsen the investment situation. You will always have to poke your nose into big projects and try to control them and therefore you will always have to harass them including big American projects.
J2 - The arguments of both the state and Frontera are different, but the fact is that the state interests have already been damaged through this dispute. The US House of Representatives and the Senate are already talking loudly about the fact that the interests of the United States of America are being harmed in Georgia, and this decision is already reflected in the recent legislative acts of the United States.
Giorgi Rukhadze, Expert, (GR)This is either the reality or the government's arguments are so weak, they work so unqualified that they manage to convince American lawmakers that such a thing is not happening in Georgia. On the other hand, it turns out that one company is better able to work with American lawmakers than the entire state machine, which ultimately leads to the fact that it becomes a country's reputation problem.
J2 - And yet, what did the state gain through the dispute with the American company? Until now, Frontera's Taribana field, where the company says there is a large amount of natural gas and oil, still has a license to extract natural resources. And, if we assume that this is indeed the case, the fact is that through this dispute time was lost, the country's investment environment was damaged, we received numerous critical letters from a strategic partner, and another - this dispute cost the country several million in international arbitration.
Zaza - Approximately $ 30 million has been paid to American and German lawyers alone. The remaining 12 million are American lobbyists. In total, it is 42 million GEL
#27 Pt.2
J2 - Due to these problems, Frontera has not been able to start gas extraction so far and, as they say, due to the hostile attitude of the government, they have not been able to increase the investment of 500 million that the American company has made in Georgia over the years.
Zaza - Last year, in 2019, because of our excellent drilling results, we decided to form a consortium with two more American companies to launch a multibillion-dollar drilling program to increase our gas production. We addressed the Prime Minister of Georgia and the Minister of Economy to meet with us. I was coming from Houston with the presidents of these companies to meet with the authorities and get their confirmation about the readiness to welcome foreign direct investment in the energy sector. We only had this request with the Georgian government and you will be surprised and refused to meet us.
J2 - What was the reason?
Zaza - They have not mentioned.
Zaza - In 2017, the state sued Frontera in international arbitration and demanded the return of the areas where the company was not engaged in exploration and extraction. The dispute ended in 2020. Authorities said shortly after the court ruling that the case had been won by the state and that the decision had grounds for termination of the contract, which was soon followed by the notice of termination of the contract with Frontera by the Oil and Gas Corporation. The arbitral decision is not public, but as the company says, there was no fair basis for terminating the contract.
Zaza - Of these 14 claims, the arbitral decision states the following: 12 were not satisfied, only 2 were satisfied. One of these 2 requirements is that we have to pay a subsoil use fee, which we have been paying for 23 years and have never refused or disputed. And secondly, by the decision of the arbitration, we are obliged to return the territories where we do not conduct oil and gas exploration and extraction works to the Ministry of Economy, and we have done so.
J2 - Despite the fact that “Frontera” received the letter about the termination of the contract and government stated that they won arbitration dispute, the Ministry of Economy issued a statement a day before the meeting with the US ambassador, which read:
"In order to maintain the reputation of the country with a reliable investment environment... The Georgian government has decided not to terminate its contract with Frontera and to allow the company to continue operating in the part of the original contract area where oil production has been under way since the Soviet era." "We are talking about about 1% of the state's search area, because about 99% of this area," Frontera ", according to the arbitral award, has already returned to the state."
Translation #27, Formula news with Zaza, 11m10s, 02/08,
Pt.1
J1 - The American company "Frontera" has been looking for gas and oil in Kakheti for years. The reserves are said to be 350 billion cubic meters. However, so far what we have found is a major international scandal. The Georgian Dream became involved in this when it imposed barriers on investors. However, the Georgian Dream could not calculate the penetration of the American company in the political elite of Washington. Now an ill-advised approach to Frontera costs Georgia millions. It is difficult to assess the damage done to the image of the country. While preparing the budget, Droeba tried to get comments from the Ministry of Economy and the Georgian Gas and Oil Corporation, but we did not receive any response. What is happening on the land of Kakheti, which has brought big problems to Georgia instead of oil and gas. The failed Georgian Kuwait is presented in the story of Levan Tabidze, a journalist of "Droeba".
Zaza - Taribana will make Georgia energy independent, because it is in these rocks and in this area that you are looking at now, at a depth of 4,000 to 5,000 meters, there are 350 billion cubic meters of gas that is extractable.
J2 - This place, about which the president of the oil company "Frontera" speaks, is Georgia, Kakheti, Dedoplistskaro, Karibana Valley. More than 350 billion cubic meters of natural gas will be enough for about 150 years, considering the current consumption of Georgia.
Zaza - Geologically, at this depth, there is up to about 3500 meters there is an oil. And from 4000 to 5000 meters it is a supplies of natural gas. And, it is in exactly the same geological sediments from which BP from Shah Deniz now obtains in Azerbaijan. So that the potential is huge.
J2 - “Frontera” says that the amount of resources in the Taribana Valley, besides them, has also been confirmed by two world-renowned American companies - the NSA and RYDER SCOTT. According to the director of "Frontera", the potential is huge, but they do not have the opportunity to use this potential. The reason is the government's obstruction and the creation of barriers that the company has been facing in recent years.
Zaza - We can not do this today because the problems, the obstacles, the contradictions that we have with the government, do not allow us to increase the volume of work and increase gas extraction. When the government violates all the terms of the contract, it gives no confidence to either the company, or the investor, or the investment banks, with which we have been working for years, to give us additional capital and money to expand the work here. Today, if the government tells us that it is ready to play constructively, in 6 months we will be able to resume drilling new wells, which means that in 1 year from now, we will be able to start extracting natural gas from new wells.
Pt.7 (and final part)
DA - After Gakharia, hold a rally in front of the Ministry of Revenue. This is not right. Do not treat Americans like that. Thanks, Zaza. You are decent and patriotic about your initiative and your work. Gas and oil fields are really there. I dare to tell the Ministry of Economy to shut up. You will end badly. I am glad, Zaza, that you are my guest. do not be afraid. Georgians are always on the side of ones who are oppressed. I think we are doing the right thing. No one around us should be oppressed. I am glad that you are my guest and I am sure you will not be oppressed in the coming days. I recommend informing the US Ambassador what time you are going to hold a rally near Gakharia's residence (laughing). Let's hold one democratic rally. Glad you are my guest and thank you for visiting us. Mr. Zaza Mamulaishvili was our guest.
Zaza - Thank you.
https://www.youtube.com/watch?v=jog4Vzicue8
#26 Pt.6
DA - This is good for Georgia. Do not always think about your pocket. This is salvation for us. Tariff will be reduced. Gas is very cheap in Azerbaijan, it is 2 times more expensive with us if I am not mistaken.
Zaza - Georgia is the only country in the world whose government claims that there is no gas or oil reserves in Georgia, despite the fact that we have made about half billion investment and have an approval of 2 independent American companies about the gas and old reserves in Georgia. There is no such phenomenon in any other country.
DA - Our government is lying, Mr. Zaza. I know this and believe me for God`s sake. Exploration works should to be carried out in Poti as well. I would start in your place.
Zaza - Here, you mentioned Poti and I will add it as well. Just a few weeks ago, before we talked about Gazprom and Russia-Georgia relations, the Georgian government decided to give a gas exploration license to a company, 80% of which is related to Gazprom, and which is on the list of US sanctions, because of North Stream 2 pipeline. Here, in the whole world they chose exactly that company? Is this a coincidence? They selected the company that is under American sanctions and 80% of its business is related to Gazprom.
DA - I think they are going to carry out search operations in Ochamchire district as well. Something is unclear. Ms. Turnava, I thought you were Megrelian, it turns out you were from Guria. By the way, is this true what Mr. Zaza is saying?
Zaza - If she is frm Guria, then I change my position.(laughing)
DA - Are you from Guria?
Zaza - Yes
DA - Ok, then let`s blame Gakharia for this (laughing). Tell us. Is this true what this man is talking about? Are you crazy? You are playing with fire.
Zaza - We had to include Ms. Tikaradze in this case.
DA - I'm glad you are my guest, Mr. Zaza. You have a clear position and as a professional you fight heroically for your “Frontera”. I recommend you to organize a rally near Gakharia's house. I will gladly hold the flag and stand beside you. Because it can not be unjustly converted. What kind of behavior is this that you can not pay the employees?
Zaza - Hundreds of people were left unemployed on the streets. Those people have no income and how should they live? They depended on our project and its revenue.
#26 Pt.5
Zaza - And it has an impact because it gives you gas. We have no other choice, Russia is a better choice. Therefore, the government of Azerbaijan is well aware of this. They manage their business very smartly, based on their interest. We do not manage our business wisely in our interest, otherwise they manage perfectly. For them Georgia is the place where they can sell low-quality fuel. And, because of this they have enormous political influence. Naturally, Georgia's energy independence is not in the interest of Azerbaijan, nor is it in the interest of Russia, nor is it in the interest of Iran. Because Iran also has a long-standing interest in getting its gas into Georgia and ...
DA - Their gas is expensive, Zaza. You know, and so do I. $ 310 costs 1000 cubic meters. I think that, by the way, the caloric content of this Azerbaijani gas is also low. If you have done research, what is the calorific value of gas?
Zaza - Our gas, which we get today, is much more caloric than the gas of Azerbaijan.
DA - Is it 85?
Zaza - Yes, it`s more.
DA - Really? Do not drive me crazy. The one which we import is 74 or 76.
Zaza - One of the reasons for this is that some components, such as plows and propane, are eliminated and reduced in calories. They clean it by selling it separately. But our gas, geologically speaking, Mr. David, if we go to the Caspian Sea, the same sediment, these rocks there are deeper than 6500 meters and then rise with us at about 4000-5000 meters. And, Mr. David, you can not distinguish, the quality is so similar to each other.
DA - And, by the way, it was even in the 70s that it was said that very high octane gasoline would come out and there was very little sulfur. That was the most important thing.
Zaza - Yes, it does not have bad impurities at all. And, interesting what do you know? Because it is in the Caspian Sea at a depth of 6500 meters, it has about 200-300 meters of water on top. Our gas will always be more profitable economically. Because drilling depth of shallower wells is much lower. And, it will be much cheaper to supply this gas to Europe than to the Azerbaijanis. It's something of a vicious circle. As if everyone needs but no one wants. Because we, for example, thought that as soon as we had the result everyone would be happy in power, all the conditions would be created for us to increase gas production. But the opposite story turned out.
#26 Pt.4
DA - Zaza, you are an amazingly interesting person. You can easily outtalk a lot of Political scientists. We can recall form the past some cases when Denikin burned us with horns and then returned us Sochi. There was a discussion about Sochi and we got in the end. I think that the same thing will happen to Mr. Putin. By the way, I have been talking with Ms. Khatuna for about 10 minutes about Gagra. How old are you, Zaza?
Zaza - I was born in 1964.
DA - Wow, that`s great. I know village Kolkhida very well. I rode a bike there a lot. Turns out that Khatuna was from the same village. I said to her that the Russian will have to return it to us. You were with me, if I am not mistaken, 2 months ago and you then said that, in fact, you have created something like a map and you have calculated large reserves of gas. Now, it does not really suit Russia we have a gas. The same story is for Azerbaijan. We import about 2 billion from Azerbaijan if I am not mistaken, and in case we discover the gas reserves, they will be in tough situation. This is why it`s important for us and it`s time for us to have our own gas reserves. Let`s build the gas turbines and our winter will be secured. We have a big deficit and buy it from Russia in high prices.
Zaza - Now, you touch on something that is very important. There is a 2018 World Bank study of 2016 and 2018, which was done for the Georgian government, where it is directly and unequivocally stated that instead of building large hydropower plants in Georgia, it is more profitable, safer to build gas turbines. Therefore, in one case, if it costs 8-9 tetris for electricity in case of kw/h of gas at today's prices, in the case of these large hydropower plants it will be 20 tetri. Therefore, the country must go in a completely different direction.
DA - Why don’t you make it? If you extract about 500 million it will be relief for the country.
Zaza - Here is the answer, part of the answer is in the July 27 letter sent by the Americans to Pompeo, where they say that there is a fact of alleged corruption in power. That's exactly why.
DA - Or they want to get rid of you and sell the gas themselves.
Zaza - Azerbaijan has a huge political influence on us today.
DA - I'm surprised and they should not have such an influence on us.
#26 Pt.3
Zaza -How can a doctor do his job in these conditions? This is very hard and responsible work. The doctor should not have to worry about his income because they have very stresful profession and need to worry about the health tof their patients. This should be done by the government to ensure that the economy works, companies invest in the country, jobs are created, money goes to the state treasury, then doctors, teachers, schools and higher education are funded so that the most talented young people we have can get a good education and to live with dignity. It will not turn out differently. No one can invent this new system. But unfortunately, all the energy is directed to how a person maintains power, no matter what chair he sits on. By the way, one of the most important things Americans have done is to legislate that you should not hold the chair for more than 8 years. Everyone is used to it and knows that when they come, they have to go.
DA - 4 years is no enough for them. They want it forever. See today, Zaza, what they did in Belarus? Did you hear that Wagner's people were arrested? Elections are there and Russia has deployed troops. They are crazy.
Zaza - They are in a very difficult situation, Mr. David. As you mentioned, it is really tied to our story, to Georgia's energy independence, and to the United States. You mentioned it before. We have a very big reason for optimism and now I will tell you why. As never before, Russia's economic reality has changed. Gazprom had a market capitalization of $ 380 billion in 2007 and was projected to reach $ 1 trillion by 2020. Now it is 50. Already the issue is such that a person does not know if he will go bankrupt at all. This means that Gazprom, which had a huge financial resource - the whole of Europe depended on its gas and paid the country's money for it. Already revenues have declined, costs have increased. After the next 5-10 years, the prospect that oil will again become $ 175 a barrel and gas another $ 500 per cubic meter it will no longer be. There is no such prediction. And, at the same time, what started it? American gas has entered Europe, while Western European countries are already consuming it, the Baltic countries have fled altogether, they are already on American gas. But what is the main thing? Russia has already changed everything. One thing is for sure. When did Russia always make concessions? When did the Baltic states join NATO? When Russia had no money. When did he leave Afghanistan? When the money ran out and it was very tight. When did the Soviet Union disintegrate? When they ran out of money and did not have it. When the money runs out you have to go to either Western Europe or America to borrow money. That's where it all begins. They will have to make some concessions in exchange for cash loans, and if we act wisely in the next 5-10 years our reality in relation to the lost and occupied territories can change very drastically.
#26 Pt.2
DA (contd) - There was a very good girl there, her name was Sophie. She showed the compassion and made her to write the application and after paying 10 GEL the driving license was still active for her. If you can do such things, get rid of it all. Why should the post office send your fines? It's supposed to be nothing, but it's something. This is not right. The state must motivate the people towards harmonization. This is unconstitutional. Zaza, we say a lot of things that no one should get used to. I understand Azerbaijan is 100-150 years behind. We are individualists. With us, personal freedom and self-respect is not an ordinary but a superior feeling. People should not be treated like that. Especially since you are an American investor. You, as a citizen, and not the director of an American company, don`t you think that something is not working as it should be working?
Zaza -Of course. Now, the example that you gave, it happens to everyone, to me, to you, it`s very typical. But do you know the main problem? Our government is not thing about creating the evnronment for its citizens, where they will be living happily. Everyone has the right to be happy and to strive for it. The government also exists because it has to help people in this. Now, this is one part of what you said, but ...
DA - For a second, I remembered something good. I'm so sorry. Here, I want to tell the patrol workers. Me and my producer were sitting and watching some American documentary film which was aired in 1934. This American himself was so eager to say what interesting rules they have in Italy. In Milan there was established the day of the patrol officer and anybody who considers someone as a good police officer, they make gifts for them. 2 Policemen won the prizes – one got 160 gifts and another got 180. Maybe we could come up with the same idea somehow. Something needs to be changed, Mr. Zaza. We are the same age and do you like this? I don’t like it at all.
Zaza - How can a person like this? This is when a person does not have the opportunity to work with dignity and have a decent income. When young people do not have the opportunity to get a decent and good education and then build their careers so that they have a decent income. When everyone has a fear of the future ...
DA - [Speaking about some irrelevant things] Is this an education? It is the shame. What university did you graduate from?
Zaza - Medical university
DA - Really? In my early ages, there was Ilia Vekua, Dato hkhikvishvili. This is not right. Generally, education is stuck in the swamp. Nor do they pay attention. Doctors have 400-500 GEL, they do not even have a salary of 200 $. What kind of life is this?
Translation #26, TVKavkasia with Zaza, 30/7, 28m35s,
WARNING!!!! - this is what our translator says about the interviewer - "The interviews of this journalist are total mess. He is talking about one thing, then suddenly continues talking about another, then third and then returns to the initial topic. Besides, he does not always finish the sentences, he starts the second sentence in the middle of the first sentence, while I am struggling to connect these two sentences with each other. That`s crazy!!"
I started out trying to cut and paste the irrelevant bits but had to give up. With that, here's Pt.1
Davit Akubardia (DA) - So, people, Mr. Zaza Mamualishvili is the General Director of Frontera. Mr. Zaza does not receive a salary like me and many employees depend, so to speak, on the humanitarian assistance of relatives. You are not right. Why did you impose the seizure on Mr. Zaza? I really do not understand. You are not normal, otherwise how can you? This is a foreign firm. You are officially imposing a seasure. I am not talking about the 25-30 million that you have to return. Why do you seize it? By the way something very interesting happened. I received a lot of fines. It turns out that the mail did not work during the corona virus. I dare say this now, I was also telling the previous minister not to do this nonsense. Are you a driver? I am a driver, I am driving for a long time, I have never had an accident and I have not had a quarrel with anyone. Believe me, I am a normal, ordinary driver. During this coronavirus, there was a lot of nonsense that they did. By the way, I had several American citizens here, Georgians, from Imereti. There were very good boys, truck drivers. They said that if you cross the whole America you won’t encounter so many cameras than you have here. This camera fine was previously brought by the patrol officer. The patrol police officers themselves told me that the Ministry of Internal Affairs had signed a contract with the post office. This Georgian Post is an incomprehensible organization. Looks like they are close relative to Bidzina. Patrol fines are distributed by mail. This is not right. Today I was in the patrol police, begging. Very good people work there. I said that I will give you my phone and as soon as the camera fixes me, send me an SMS about it. Today I went to find out this story and saw the wonders. Ms. Khatuna Khurtsilava was there, she was a very good woman. She has not received the fine of 10 GEL. This fine was accumulated and the patrol confiscated the car, terminating the right to drive the car for 6 months. She did not know about this. In a words, I witnessed the fact that this woman was explaining to these policemen that she had not received anything.
#25 Pt.7 (and final part)
J1 - As if no comment is needed, it directly writes down everything that worries and bothers strategic partners at all levels already. Everything is certain and the verdict seems to have been rendered. After all this, how much did you imagine that the same thing could have happened?
Zaza - Unfortunately, we have a lot of years of experience in dealing with the government and it was not a surprise. So, one more thing to add in this regard - the State Department said in a statement that the Secretary of State agreed with Prime Minister Gakharia that Russia should cease its destabilizing activities in Georgia and return to the 2008 agreement. When do you remember the last time the Prime Minister of Georgia addressed Russia on behalf of Georgia and called on them to stop trying to destabilize Georgia? It was a shorthand record of a telephone conversation in this document.
J1 - And, in short, I have to ask you for a final evaluation as well. Do these recent activities mean that the October 2020 elections are the main test that Georgia and the Georgian government must pass?
GR - Of course, we do not remember such activity from the West. For the last 1.5 years, what we have been looking at is a letter followed by a letter, a resolution followed by a resolution, a statement followed by a statement.
J1 - Putin's Russia or the West? Will this election be the answer to all this?
GR - The West has never been so active. This is a whole cascade of statements, letters, resolutions, bills, and so on. This indicates that Georgia is at a crossroads once again. Otherwise such activity would not have been on the American side. This is another indication of how important this election is for the United States and the European Union. It will depend on these elections what kind of state Georgia will be in the future – will it be a post-Soviet, Russian sphere of influence or it will be a democratic state, welfare-oriented, human rights-oriented and part of the Western space? We will choose it in 2020 and how we will conduct these elections will determine the trajectory and fate of the country for a very long time.
J1 - Thank you very much. Zaza Mamulaishvili and Giorgi Rukhadze were our guests. This is the end of the program "Guest of the Day".
https://www.facebook.com/watch/live/?v=602501477063475&ref=watch_permalink
#25 Pt.6
Zaza - Here, take a look at this picture for a moment. The Prime Minister makes a public statement and on the other hand takes the opposite action. The US ambassador stands next to him and looks him in the eye and says that "the government has decided not to cancel the contract" and this time he is doing the opposite. Then he is proud that the US Ambassador even made a statement on how she welcomed our decision. Plus, Georgia's ambassador to the United States, the Secretary of State, is telling US politicians one thing and doing another. This is usually called a lie in the language. When you are constantly, chronically, lying at the highest level, you will have no authority and it will be difficult for any government to work with such a government in the future. So that not only the Georgian people are deceived, the American ambassador to Georgia is deceived, the members of Congress are deceived, the Secretary of State is deceived, we are deceived, everyone is deceived. And, they do it because they have nothing else to offer. Their portfolio is empty, so the only thing left is this lie. But what is the worst and most important thing in this - it harms Georgia and its population. This means that neither the politician, nor the company, nor the investor trusts this government, which translates into the fact that jobs will not be created, there will be no income and no salary. All this is transformed by these utopian lies of politicians of this rank, which we are watching these days.
J1 - And, I want to recall the letter that is dated March 15 and was received by Mike Pompeo on behalf of senators and congressmen. And, after that let’s continue the conversation.
(J1 Reads the letter) - We are specifically and increasingly concerned about Georgian ties to American hostile rivals and enemies, which are coming at the expense of our geostrategic and business interests. The currect government of Georgia led by the Georgian Dream party is implicated in efforts to crowd out legitimate American businesses, which have invested in Georgia`s economy and future. Any such activities are motivated by geopolitical considerations, including reported ties between Bidzina Ivanishvili, chairman of Georgian Dream party, and the Russian government.
#25 Pt.5
J1 - Yeah but how long can they tell lies? Beside the partners already have an experience in dealing with them
GR - This is an attempt by the Georgian government to tire its Western partners and show them that nothing will work out here in the end. At some point they will agree, then it will interfere again, they will agree, the Georgian government will lie again. Partly it's a matter of wasting time, partly trying to create the feeling that in reality, nothing will come out of this country and their involvement and their steps make no sense because at least everything will happen the way a billionaire wants. And, finally, all this, the messages that are in the authorization act and the budget allocation bill, the conditions set for Georgia, which are set alongside at the level of Pakistan and Afghanistan, this is a message to the Georgian people, not just the political class, that the Americans have decided to trust the Georgian government. Now the people of Georgia must decide in the next elections whether they want to trust the Georgian government for another 4 years and extend this mandate. All we are seeing is, on the one hand, the Georgian Dream and Ivanishvili telling the West that "whatever you want me to do, I will do what I want and it will be the way I want it to be." On the other hand, this is a very orderly policy on the part of the West, to show that the West has the leverage and the will to make Georgia ultimately a strong democratic and progressive state.
J1 - Yes sir. Is it clear. And, I must ask you, Mr. Zaza. When such manipulations take place, which are really easy to verify, what impression does it form on the current Georgian government in Washington?
#25 Pt.4
J1 - "The Frontera issue has never been the cause and subject of an interstate dispute," the foreign minister said. What explanation would you give? And then the audience will inevitably be reminded of a recent letter from Congress and the Senate - Ted Cruz, Cornyn, Markwayne Mullin and Jodi Allington - when they addressed the Secretary of State and said that it was American companies that were being harassed and their interests are being oppressed in favor of Iran, China and Russia.
Zaza - That's their main concern. Despite Mr. Zalkaniani's statement, he is well aware that no high-level meeting have been held in the United States administration or Congress in recent years without mentioning Frontera case, simply because Frontera is a clear example of how other American companies are treated in the country, as it`s the largest American investment in Georgia. And the contrast to this is what greenhouse conditions are created for Russian, Chinese or Iranian companies, and all this Senator Cruz mentioned in his letter to the Secretary of State, which he sent with Cornyn. All of this is happening at the expense of the geopolitical and commercial interests of the United States. They want to drive out American interest and instead open the door wide open to Russian and Chinese interests. And all this, by the way, is well reflected in the last few bills. To be honest I could not understand. This is even included in the National Defense Authorization Act, where one of the requirements and conditions for the state to receive appropriate assistance is the pursuit of American business. The amendment was passed by 295 votes last week, and in a few days we will see even more published text and reflected situation with respect to American companies.
J1 - And, in your opinion, whether the fun was caused by the fact that we knew Senator Rish's amendment, which was very strict. Giorgi Rurua's name and surname were also written. Is it possible that this name was not included in this amendment, was that why the Georgian Dream was so happy?
GR - Maybe they lobbied for it as much as possible. I have information that in the United States, as well as in Brussels, Zalkaniani had arrived to somehow manage to avoid the issue of Giorgi Rurua in the European Parliament resolution, which by the way failed to achieve this success. Senator Rish's amendments have not been introduced, but the bill itself is essentially very critical. The same terms apply without actually embedded first and last names, but the principle is the same. But what is the main thing? The main story is that the United States has understood exactly what kind of political force is in power in Georgia, that they can not be trusted, and they are, so to speak, a very rare case of them, so, imagine what happens - on the one hand, the Georgian government promises that He will build the port of Anaklia, but with his other hand he was doing everything to prevent this story from happening.
#25 Pt.3
Zaza (contd) - To soften a little more with the secretary. But one interesting thing I want to tell you. I was told that a few hours before this telephone conversation, yesterday morning, the Secretary of State received another very harsh letter from a group of very well-known congressmen, addressing their growing concern about the persecution American investments and companies from Georgian Dream and Ivanishvili authorities. This concern was reiterated on the day when the Secretary of State spoke by telephone with the Prime Minister in the afternoon, and this part of the concern was reflected even more in their conversation.
J1 - Is it clear. This means that Pompeo's response may change in a short time because he has already received detailed information about what is really happening in Georgia regarding American business. However, before we continue the conversation, I would like to offer our viewers the statements made last week, when Natia Turnava and Davit Zalkaniani were making statements about the type of decision they made regarding Frontera.
Natia Turnava, Minister of Economics and sustainable Development of Georgia, (NT) - It was not an easy decision. As you know, our truth about "Frontera" has been confirmed by international arbitration. We have made a decision and suspend our request for termination of the contract, leaving this 1% of the area on which the extraction is practically carried out. "Frontera" can continue its activities for the term of the license.
Davit Zalkaniani, Minister of Foreign Affairs of Georgia, (DZ) - The issue of "Frontera" has never been a topic of discussion and it has not been given as much importance as the leaders of "Frontera" tried to show. In order for the ordinary, routine commercial dispute not to become detrimental to interstate relations, we have therefore made this decision.
#25 Pt.2
GR (contd) - The freeze can only affect a tranche directly targeted at the Georgian government and not for democracy or the media or other development in general. And all that we have seen in Congress is slowly being reflected in the messages of the executive branch, since the legislature, together with the president, determines foreign policy. And now we see that the statements of these congressmen have been slowly translated into the policy of the executive branch, and the United States will watch with magnifying glass how the elections will be held in Georgia and what will happen to the courts in Georgia.
J1 - Is it clear. thank you very much. As expected the rank gradually increased. Mike Pompeo has already been involved in relations with the Georgian government and he considered it necessary to warn the Prime Minister by phone. Against this background, the government still uses some kind of tricks. Take your case, the example of Frontera. What is the purpose? While the Georgian Dream knows very well that information will flow quickly to both Washington and Houston, and in general the strategic partner is already in control of everything. What do you think we are dealing with?
Zaza - We are dealing with a unique phenomenon, when even the highest officials in the Georgian government believe that they can do everything with lies and tricks. Although we see on a daily basis that this method does not work. Something amazing happened. The Prime Minister of Georgia, who made a public statement last Thursday as if the government had decided not to terminate the contract with our company. Two things happened the next day: the State Department and the Georgian ambassador to the United States immediately began sending a message to the United States administration and Congress that "how noble is the Georgian government and what good conditions the government creates for American investment." And, on the other hand, the Ministry of Economy sent us a letter saying that if before we were threatened with expropriation of our project and property on a specific date, now they do not tell us this specific date and can do it any day from today. By the way, it is now easier for the viewers to understand why Prime Minister Gakharia was in such a hurry and made this public statement last Thursday. He knew very well that a telephone conversation with the Secretary of State was scheduled for yesterday, and one of the agenda was to harass and drive American investment out of the country, create a bad environment for American companies, and that is why he made a statement to the Washington DC politicians.
Translation #25, Mtarvia with Zaza, from 12m mark, 29/07
Pt.1
J1 - The main political topic of the day is the messages from the United States. Mike Pompeo phone call, letters from Washington, Houston and we will talk about it with Giorgi Rukhadze and Zaza Mamulaishvili. Thank you very much. Before we begin the conversation, I would like to offer the viewer the statement made by Tea Tsulukiani today regarding the phone call made by Mike Pompeo.
Tea Tsulukiani, Minister of Justice of Georgia, (TT) - If we take only yesterday's telephone conversation between two people, against the background of this one contact and its content, of course, the speculations and statements of the opposition that the US is abandoning Georgia and the Georgian people and there is any kind of crack in this friendship and partnership becomes even more ridiculous. Even today, the opposition continues to fight against its own country, against its own people, when it makes various attempts to prevent Georgia from gaining support.
J1 - This was the statement of Tea Tsulukiani and the critical letters coming from Washington are addressed to the Georgian government, which did not fulfill its promises and there were initially separate messages to Georgia as a strategic partner and its government. What explanation would you give to today's statement of the Minister of Justice? Let`s start with you, Mr. Giorgi, and we will definitely hear your opinion as well (points to Zaza)
Giorgi Rukhadze, Media expert (GR) - Ms. Tea is right that the United States has not really left Georgia as a state and a Georgian people, but it is clear from all the steps we have seen over the past year that Washington's trust in Tbilisi and the Georgian government is completely diminished. And, all their subsequent steps are a confirmation that the US government no longer trusts the Georgian government. He is trying to turn Georgia into a bedrock so that he does not move and take the country there, which will ultimately hurt Georgia, the region and every citizen of Georgia. Now let`s start from the messages which we have received from Mike Pompeo. This was a clear message which was stating that Washington will not let Ivanishvili to falsificate the elections. The main message was in relation to the elections. Free and fair elections and equal conditions for all political entities or objects are the focus of this message. And the second issue is the court, that the Georgian government should be allowed to use the court for political purposes. It's about business, it's about the media, it's about political prisoners, and so on. Naturally, the messages from the Secretary of State were much more diplomatic than in Congress and the Senate. But I want to tell you that this is actually a mirror effect caused by the acts passed in Congress, we are talking about the Defense Authorization Act, we are talking about the Budget Appropriation Act.
Pt.3 (and final part)
J1 - So, this meeting did not take place and the consortium was not formed because of it. Which American companies were there and approximately how much investment were you talking about, Mr. Zaza?
Zaza - There was talk of a multi-billion dollar investment. The market capitalization of both companies exceeded $ 20 billion and as a result of the successful outcome of our work, they also joined us to expand the scope of our work. I only tell you what happened last year. We had many of these in previous years, when the government did nothing more than interfere.
J1 - Yes sir. Thank you, Mr. Zaza. We, in principle, journalists and probably the public are waiting for this decision to be made public. For greater transparency, it would be good for this arbitral decision to be made public and for us to be able to read, learn, and draw conclusions from it. Thanks for your time. Goodbye. Zaza Mamulaishvili, President of „Frontera Resources Corporation“ was our guest.
https://www.youtube.com/watch?v=FYVS1drEQAo&feature=youtu.be
#24 Pt.2
J1 - I would like to talk about a few more issues - Content of recent statements when the state said it would not suspend the contract and the area, which is about 0.84%, on which Frontera can continue to operate. After that you received some letter. What type of message was this letter telling us? What legal force did it have? In what form did you receive it from the state? Is the corporation lying to us about it?
Zaza - If you want I will tell you directly, yes, you are being lied by the corporation and the Ministry of Economy and the government. After the Prime Minister made a public statement last Thursday that the government was no longer going to terminate the agreement with us, two things happened the very next day: Firstly, The Foreign Ministry, through the embassy, immediately began disseminating this information to political circles in Washington. And, at the same time, the Ministry of Economy sent us an official message telling us that they had temporarily suspended the procedure for cancellation and termination of the contract, which means that if they had been writing to us earlier that we would terminate the contract illegally on the 27th, now it is unclear. It could be stopped on the 29th, or it could be on the 5th of August, or just in 3 months.
J1 - Were there any conditions in this message? If we say that "Frontera" will not fulfill its promise, in this case it will be stopped. In what form was it? Were there any conditions in this message that you received from the Ministry of Economy?
Zaza - Nothing was set out in this message except that we were told that the contract termination procedure was only temporarily terminated. This is also illegal because they have no legal right to do so.
J1 - What type of investment did the state prevent „Frontera“ from making? What were the issues that prevented „Frontera“ from acting as a result of the government's actions? Do you have specific numbers, what amount of investment you wanted to make and failed to do it? And what specific returns did you think you could have got from the investment?
Zaza - Of course, in practice, after 2013, when the interference in our activities became very intense, we could not drill as many wells as we had planned, we could not carry out our operations and we could not make the investments of the scale we thought we would. For example, last year we thought of forming a consortium with two large American companies and launching a multi-billion dollar development program in the Kakheti region of eastern Georgia. We asked the Georgian government, the Prime Minister and the Minister of Economy to meet with us and the other members of the consortium and confirm that Georgia welcomes the investment in the oil and gas industry, which was refused by both the Prime Minister and the Minister of Economy.
Translation #24 Business Media Georgia with Zaza, 28/07, 8m11s
Pt.1
J1 - American energy company "Frontera" publishes another statement. The company said in a statement that a few days ago, when the Georgian government announced that it would not suspend its contract with the company, the company was informed that the government would again try to suspend the contract with the it. Zaza Mamulaishvili, President of “Frontera Resources Corporation” joins us live. Mr. Zaza, welcome. Thanks for your time.
Zaza - Greetings
J1 - Mr. Zaza, the recent controversy between Frontera and the state, between the Gas and Oil Corporation, is in the mode of statements. There is literally no dialogue between these two sides. It may also be difficult for the public to draw conclusions because, for example, the Gas and Oil Corporation urges you to make the arbitral decision public. Why not make this arbitral decision public?
Zaza - You mentioned that very well. The Georgian government has chosen a special form of relationship with us, especially since we have been working in Georgia for 23 years and today our company is the largest American investor in Georgia. However, since such a form was chosen by the government to communicate with us, we also respond accordingly. As for the publicity of the arbitral decision, we certainly are not and have not been against this publicity. Even now I can call on the representatives of the state from this broadcast that if you want today, you want to meet tomorrow and publicly announce the decision of the arbitration, which is very clear and it is not necessary to be a lawyer to fully understand the content of this decision.
J1 - Mr. Zaza, we need the consent of both parties, in this case, when we had a conversation, for example, with the other party, we were told that we need the consent of Frontera to make the decision public. The latest statement, by the way, said that the silence on the part of the company could be seen as a sign of consent. That is, you agree to make this decision public.
Zaza - This is a very interesting legal formulation that our silence can be seen as a sign of consent and then made public. This is a vague wording and I can not comment on it seriously. But as for our formal consent, as we have said many times before, I would like to reiterate now - we are not against the announcement of this decision, but it must be done after the relevant legal procedures. And, what I mean by that - a decision contains a lot of technical, commercial, financial and personal information that may not be desirable for other parties to disclose. We legally agree with all stakeholders on this and probably this process will still take probably 10 days or 2 weeks. And, as soon as we get all the consent, then we will be able to officially, in writing, confirm to the state that we also agree to make it public. Before that, we are now saying that together we can do it today or tomorrow.