Member Info for Looed

Pt.2

The new legislation clarifies that U.S. sanctions related to Nord Stream 2 apply to vessels engaged in all pipelaying activities, as well as to those who facilitate providing those vessels, as well as to those who provide insurance, port facilities, or tethering services for those vessels, and ultimately to any company that provides certification for the Nord Stream 2 pipeline to begin operations.

In May 2019, Sens. Cruz and Shaheen introduced the Protecting Europe's Energy Security Act, legislation imposing devastating, targeted sanctions on vessels that Putin needs to complete the Nord Stream 2 pipeline. Their bill advanced out of the Foreign Relations Committee with overwhelming support and was signed into law in the National Defense Authorization Act of 2020.

Sen. Cruz has led a months-long bipartisan and bicameral fight to stop Putin's pipeline, which if completed, would vastly strengthen President Vladimir Putin at the expense of the rest of the free world.

Source - https://www.cruz.senate.gov/?p=press_release&id=5156

Pt.1

Sens. Cruz, Shaheen Introduce Legislation Expanding Sanctions to Block Completion of Nord Stream 2

WASHINGTON, D.C. - U.S. Sens. Ted Cruz (R-Texas) and Jeanne Shaheen (D-N.H.), members of the Senate Foreign Relations Committee, joined by Sens. John Barrasso (R-Wyo.), Tom Cotton (R-Ark.), and Ron Johnson (R-Wis.), today introduced legislation clarifying and expanding the sanctions of their bipartisan bill, the Protecting Europe's Energy Security Act, to block the Nord Stream 2 pipeline's completion.

"There is bipartisan and bicameral consensus that Russia's Nord Stream 2 pipeline poses a critical threat to America's national security and must not be completed," Sen. Cruz said. "Last year, both parties and both chambers of Congress came together to pass Sen. Shaheen and my bipartisan bill, the Protecting Europe's Energy Security Act, in the NDAA, which was then supported, signed, and implemented across the administration. Nevertheless Putin continues to try to circumvent those sanctions, and so this new bill will once and for all clarify that those involved in any way with installing pipeline for the project will face crippling and immediate American sanctions."

"While there were skeptics, the original sanctions legislation I authored with Senator Cruz was tremendously effective at thwarting the completion of the Nord Stream 2 pipeline," Sen. Shaheen said. "We must now continue that effort and ensure that Russia does not surreptitiously extend its malign influence throughout Europe. Nord Stream 2 threatens Ukraine, Europe's energy independence and gives Russia an opening to exploit our allies. Congress must once again take decisive action and stand in this pipeline's path."

"The Nord Stream 2 pipeline is a Russian trap. It makes Europe and our allies more dependent on Russia and more prone to Russian influence. We're committed to blocking all Russian efforts to complete this dangerous pipeline," Sen. Barrasso said. "Our bipartisan bill expands targeted sanctions on those involved in assisting with the construction of this pipeline. These sanctions will prevent Russia from bolstering its geopolitical weapon."

"Halting construction of Nord Steam II demands our continued vigilance," Sen. Cotton said. "These expanded sanctions will help complete our mission to stop Moscow from using the pipeline to drive a wedge between Eastern European nations and the rest of Europe."

"Preventing Russia from using its energy resources as a geopolitical weapon is in America's national security interests," Sen. Johnson said. "This legislation's expansion of targeted sanctions will send a strong message to Putin that Russia's continued aggression has consequences."

"UNM, as the biggest opposition party concedes 6 majoritarian districts out of 8 in Tbilisi"
(Wiki states that after the last election "A majority of the UNM's electoral list defected to European Georgia, leaving the UNM with six members in parliament.")
https://www.interpressnews.ge/en/article/107764-nika-melia-unm-as-the-biggest-opposition-party-concedes-6-majoritarian-districts-out-of-8-in-tbilisi

"Carl Harzell: 8th March agreement and its spirit is very important for Georgian democracy; I believe that it will be successfully fulfilled" says the EU Ambassador to Europe
https://www.interpressnews.ge/en/article/107762-carl-harzell-8th-march-agreement-and-its-spirit-is-very-important-for-georgian-democracy-i-believe-that-it-will-be-successfully-fulfilled

Same guy, the dangers of a "closed economy"
https://www.interpressnews.ge/en/article/107760-carl-harzell-thanks-to-the-open-market-economy-and-international-trade-georgia-will-become-richer-and-more-successful

Pt.2
"At the same time, Frontera's attempt to seize the gas field in the East
In Georgia, which could provide cheaper and more competitive gas to Georgian consumers, the state was constantly confronted with the cancellation of the contract, misinformation and expropriation of state media. Why? ”They write.

At the end of the letter, the authors read "Why the government is working and spending so much money" to terminate the contract with the largest investor in the United States, if the soul is really a Georgian-American strategic partnership.

Georgia has reached the Russian-style kleptocracy - an open letter from the leaders of the Frontera to Gakharia
Frontera's case
Frontera Resources is an American-based company that aims to extract oil and gas. The company Frontera Research Georgia started working in Georgia in 1997 and during this time they have repeatedly stated that they have found a large supply of gas. The state and the frontier were arguing with each other in the arbitral tribunal, which has repeatedly been the subject of political speculation.

The dispute between the LEPL Georgian State Oil and Gas Agency, JSC Oil and Gas Corporation and the company Frontera Research Georgia has ended in the Arbitration Court. State organizations said they had won the arbitration and met most of their demands, which the Fronter denied, accusing them of trying to discredit the company.

The state terminates the agreement with the front - what happens and what the parties cannot agree on
Also, the agency and the corporation claimed that the arbitral tribunal had found a breach of contract on the part of the Frontera, which allowed them to terminate the contract. Frontera denied this either.

Nonetheless, the Oil and Gas Company said it had notified the Frontera and the contract would automatically be considered terminated upon expiration of the term specified in it (July 27 of this year). They also called on the Front to implement the decision of the Arbitration Tribunal, including the payment of funds to the Georgian side (approximately USD 6 million).

In parallel with these events, US senators and congressmen addressed a letter to Secretary of State Mike Pompeo and Finance Minister Stephen Mnuchin in Georgia over the harassment of American companies and businesses. The authors of the letter were Senators Ted Cruz and John Cornin, as well as Congressmen Jodi Arrington and Marquine Malin.

Pt.1 (some of this is a rehash of the letter)

Natia Turnava, the Minister of Economy, responded to the Prime Minister's open letter to the Prime Minister. In response to the criticism and accusations, he reiterated that the Front had lost the arbitration dispute and had to fulfill its obligations.

He also called on the company to disclose the decision of the Administrative Court, which will shed light on who is right in this dispute. The parties have no right to make the decision public without the mutual consent of the parties. State-owned corporations say they will announce the decision if the frontline agrees. The company is silent on the matter.

"The answer is very simple. We always respond to such a statement from the company Frontera with complete calm. We respond in accordance with all international norms.

If you want to get more information and the ultimate truth about it, let's call on the company Frontera to publicly announce the decision made by the international arbitration, "Turnava said.

A member of the company's board of directors, Frontera, and the president of the Georgian delegation addressed an open letter to Prime Minister Giorgi Gakharia, saying Georgia had come to the Russian-style kleptocracy and disguised itself as a sharer in American democratic values ??and a free market. Steve Nicandros and Zaza Mamulaishvili say the investment and business environment in the country has deteriorated and they are asking the Prime Minister why their American company was facing obstacles when it did not have the same problems with Russian, Iranian and Azerbaijani companies.

"Russian energy giant Rosneft entered Georgia in 2013 and has been working tirelessly since then, despite US sanctions and Georgia's violations of the law. Rosneft has been allowed to be strategically based in the port of Poti, in terms of oil trading and fuel distribution structures. An arbitrary attempt by an arbitral tribunal later found illegal. Why? " - Mamulaishvili and Nikandros are reading.

According to them, the Frontera was facing obstacles when the natural conditions for the import of natural gas were granted to the Georgian government. Gazprom and SOCAR were negotiating with the Iranian government on gas imports.

I won't post the article - it rehashes the latest letter and talks about the conflicting views from both sides regarding the arbitration result. There is nothing new so I won't cut and paste it but its here if you want a read -

https://on.ge/story/57497-??????????-??????-??????-??????-???????????????-?????????-??????????????-????????

(Woody166 - this article sums up the current situation regarding the fallout from the Arbitration.)

True economic growth for all cannot exist under this system. Ultimately the real losers are the Georgian people and their families. Hence, Georgians leaders must be held accountable by their actions and not their political rhetoric.

1:19 mark

List other American companies that have had issues

1:33 mark

If you have seen the TV news segment, you can see they show the letter and there are some differences between the original English version and the Georgian versions that we have been discussing.

The English version starts with "We respectfully ask today for your intervention to stop the arbitrary, illegal termination between the company and the State. The ongoing effort to expropriate our company holdings highlights a lack of respect for the rule of law"

In the video its at the 1:09 mark

And then this -

Like other US companies in recent years the reality is that today we find an unwelcoming and increasingly dangerous business environment that seeks to disregard the rule of law that seeks to weaponise the judiciary system, disregard the rule of law and state-capture over US private-sector partnerships. this is not the Georgia we have come to love during our 23 years of dedicated corporate citizenship that has motivated us too invest over $500m in our work to help Georgia achieve its oil and gas energy independence

1:14 mark

This site has a copy of part of the letter - appears to be dated 2nd June.

https://infonews.ge/??????????-??????-?????/

Similar to the article that DomFok posted.

"Steve Nicandros, chairman of the board of directors of the American oil company Frontera, and Zaza Mamulaishvili, president, have written a letter to Prime Minister Giorgi Gakharia.
In the letter, the company's management says it has seen growing anti-American sentiment and discriminatory attitudes toward US investment in Georgia since 2013, but hopes that now that the government's legal action against Frontera is over, they will close the door on a constructive spirit. You will send a signal to American companies.

(Then they reprint the letter)

reads a letter sent to Giorgi Gakharia by Steve Nicandros, Chairman of the Board of Directors of Frontera, and Zaza Mamulaishvili, President."

Source - https://www.interpressnews.ge/ka/article/602904-pronteras-xelmzgvaneloba-giorgi-gaxarias-cerilit-mimartavs/

Some observations. No more talk of joint statement and no mention of GOGC. Nothing on the actual details of the Arbitration. Feels like SN has been drafted in to "Americanize" the company. Maybe he will start to do interviews as well to enforce the foreign investor angle.

The transcript of the radio interview Keysersoze shared was originally due to be delivered today. The project got delayed because of a the payment verification issue which now seems to be resolved. The translator says he needs an additional 2 days, so hopefully it will be completed by Saturday.

Reports that the Georgian PM has quit -

"Media: Georgian Prime Minister resigns" - https://apa.az/en/europe/Media:-Georgian-Prime-Minister-resigns-322408

And subsequent reports that he didn't -

https://www.interpressnews.ge/en/article/107736-tbilisi-mayor-denies-reports-about-pms-resignation

https://www.interpressnews.ge/en/article/107738-gia-volski-reports-about-giorgi-gakharias-resignation-are-being-spread-in-order-to-cover-up-many-interesting-topics

Who says, amongst other achievements that he "was the co-founder and chief scientist for Frontera Resources Corporation, where he conducted extensive oil field development in Eastern Europe and Central Asia" and is taking part in "Weathering the Storm in the Current Oil and Gas Crisis Wednesday, 10 June 2020, 11 a.m. MDT"

A bit of a stretch I know but would he be likely to mention FRR if it really was a corrupt / poorly performing / all the negative things that are stated?

https://www.geosociety.org/documents/gsa/careers/weathering-oil-crisis-20200610.pdf

It is dated 2020 and at almost 200 pages this is more of a book than an article. Its purpose is -

"The publication deals with the current state of oil and gas sector, prospects for its development and energy security of Georgia; it also focuses on regional oil and gas potential, production and delivery prospects to the European market. Special attention is paid to the transit and inland transmission pipelines, their reliability and safety, preconditioning security of supply to local and European markets. It also highlights the issues of harmonization of Georgian energy legislation with the European one and institutional structures as well as the integration of the market into the single energy space, discussing the corresponding legal grounds."

It doesn't get into company-level specifics - FRR is only name checked on a map showing all the blocks. In-depth discussion of Georgia starts on p73

"Proven oil reserves of all deposits of Georgia, as of 2018, total to about 1.5 million tons and gas reserves - about 4.0 bcm. Probable reserves of oil is 4,81, possible reserves are 21,52bln tons, gas - 4, 9 and 6.8 bcm respectively."

- http://weg.ge/sites/default/files/book_4_25_21.03.2020.pdf

About the author - "In 2007, Teimuraz Gochitashvili joined the Georgian Oil and Gas Corporation, holding positions of Advisor, Chairman of the Supervisory Board, Technical Director, Commercial Director, Head of Strategic Planning Department." though it doesn't read as a pro-GOGC manifesto.

Cheers Toatie - lets hope you get to keep that promise one day - hopefully soon!

Goit - Paypal doesn't work for me. It won't accept my UK bank cards as the billing address is Taiwan - it must be a UK address for Paypal. It won't accept my Taiwan bank cards as it doesn't accept an English name with a local address. If I use my made up Chinese name (we need a made up Chinese name for our Health Insurance cards) it won't work as it doesn't match the name on my local bank cards. My local bank cards won't use my Chinese name as it doesn't match the name in my passport. And on and on it goes!

Bet you are sorry you asked :-)

The GOGC statements also refer to "LEPL “State Agency of Oil and Gas”" which I have also searched. The only reference I can find to FRR is statements from 2016-17 (but when you click on the link there is no statement to read)

http://energy.gov.ge/index.php?lang=eng and http://www.economy.ge/?page=home (Both show as being 'LEPL')

Mole - thanks for restating that - I am sure you must feel like you have done it 100 times already.

There was a GOGC statement that implied the termination covered the whole of the PSA. While that does seem to have been walked back - that is in large part an assumption. There was no mention of the asset move in the last statement and it wasn't mentioned when the GOGC first started making statements - which seems to be were we have found ourselves again. Hopefully an omission on purpose rather than a case of "we dealt with this in our previous statement"

OK - I have hired the guy and agreed USD110. He says the translation will be done by Thursday. There is one issue with verifying my payment details which I hope I can resolve tomorrow. No need to offer to contribute - too difficult anyway given my location (which is partly why its hard to verify the payment issue). Instead, maybe you can arrange something together in UK and get another piece translated? If anyone wants to know the how I am happy to share the process.

So hopefully the payment issue gets sorted and Thursday we might have something to discuss.

Wazza10 - yes that's what I am noe trying to figure out - GOGC seem to say the developed land is not contested, they then issue termination which if what they say is right applies to the 99% (though it did for a while seem like it was for everything, and it still could be), so in that case the 1% can only be dealt with under a new deal. But we haven't seen any evidence of that or what GOGC cant just announce it.