Member Info for Looed

Nice title, shame about the rest of it.

Title - "What Does Impede The Development Of American Business In Georgia? Will common sense prevail?"

Its all about "notorious" FRR - https://medium.com/@peradze.giorgi/what-does-impede-the-development-of-american-business-in-georgia-c3a00d2d002e

This rant is hosted on a US blogging sharing platform called "Medium". The author neglects to mention he is part of the GG being 'Deputy Chair of the Competition Agency'. Seems the more traditional western style media has little appetite for this type of view if they have to resort to this type of exposure?

There is a condensed version of the NDI report here -

https://www.interpressnews.ge/en/article/108807-ndi-report-political-will-needed-to-translate-georgias-electoral-reforms-into-strong-democratic-elections/

Another 'helping hand' from USAID - this time sponsoring a report called "Georgia Election Watch", produced by NDI. NDI is "a nonprofit, nonpartisan organization working to support and strengthen democratic institutions worldwide through citizen participation, openness and accountability in government. NDI has organized more than 250 international observation missions or assessments to more than 65 countries, including numerous assessments in Georgia since 1992."

This is the report intro -

"Georgia will hold parliamentary elections on October 31, 2020. The National Democratic Institute offers this analysis of the pre-election environment based on in-depth interviews conducted July 28 - August 4, 2020 with representatives of the Georgian government, political parties, the electoral administration, civil society, the media, domestic and international observer organizations, and the diplomatic community; ongoing interaction with the full range of electoral stakeholders; and the Institute’s expertise and relationships developed over 25 years of programming in Georgia. This report highlights the electoral framework and administration; the campaign environment; the role of media and disinformation; gender and inclusion; and the impact of covid-19. The Institute has assigned experts to conduct long-term, in-depth analysis of the key themes highlighted in this report and will continue to monitor the overall election process through its conclusion. NDI may issue further analysis and recommendations through the election period and will issue a comprehensive assessment of the overall electoral process shortly after the elections."

The full report is here (the discussion on the media backs what we already know) -

https://www.ndi.org/sites/default/files/NDI%20-%20Georgia%20Election%20Watch%20Report%20-%20Final%20-%20August%2019%2C%202020%20-%20ENG.pdf

'Geocase' is a west-leaning Georgian think-tank. In an interview published yesterday discussing Georgia-US relations, Dr. Prof. Khatuna Burkadze, of Geocase makes the following statement at the end of the interview -

"Georgia with the US support should succeed in achieving greater integration with the global economy, strengthening energy security and establishing itself as a transit and logistic hub by carrying out large-scale economic projects.

Also, it is vital to launch the negotiations on a free-trade agreement between Georgia and America. In this regard, it is essential to highlight Georgia’s strategic location, located at the critical crossroads.

A free-trade agreement would encourage greater American investment in Georgia as well as increase the number of American tourists, further strengthening co-operation between Georgia and America in the security sphere.

In the post-pandemic international system, multi-dimensional co-operation with the United States will assist Georgia to achieve its greater goals on its Euro-Atlantic path."

Over the past 12 months or so, there have been multiple articles and opinion pieces calling for a Free Trade Agreement. Might explain why the GG have been spending so much money on lobbying.

If such a deal is being discussed, then US actions to get the current GG into shape makes more sense. Might also explain why FRR want to hold out and possibly prevent this taking place before 31/10. If FRR doesn't get the deal it wants - then neither does the GG. At least not to a timeline they might prefer.

The GG also has some power here - they know their potential strategic importance so must also have some negotiating power.

Geocase interview -
https://www.interpressnews.ge/en/article/108802-dr-khatuna-burkadze-as-a-strategic-partner-the-united-states-steadily-supports-georgia/

Typical article on US-Georgia FTA -
https://www.forbes.com/sites/kenrapoza/2020/03/05/why-does-everyone-suddenly-want-a-free-trade-deal-with-georgia/#4286104550e6

"U.S. Ambassador to Georgia Kelly C. Degnan joined CEC Chairperson Tamar Zhvania in a ribbon-cutting ceremony to open a new USAID-supported cybersecurity server center."

https://ge.usembassy.gov/ambassador-degnan-participates-in-opening-of-cec-cybersecurity-server-center/

Let's hope he gets questioned about it next time he does some media. It never looks good to give a pretty specific date and then not explain why circumstances have changed.

We are in the odd situation of both sides agreeing / threatening to release the Award - but both failing to do so!

Pt.2

To implement the CDCS, USAID will work with a broad range of partners and stakeholders, drawing on multiple partnership opportunities that the Agency’s policies present (e.g. the Private Sector Engagement Strategy, expanded government-to-government mechanisms, and the New Partnerships Initiative, to name a few). This means integrating more local partners into procurement, supporting country-led solutions and co-creating development interventions, scaling up institutional capacity development of strategic partners, promoting innovation, and increasing engagement of youth and women.

By the end of the strategy, USAID will have laid the foundation for a legacy that advances Georgia’s path to Euro-Atlantic integration; supports Georgia in protecting itself from one of its greatest threats - external malign influence; and helps Georgian citizens benefit from improved governance, rule of law, and high-value employment opportunities.

https://www.usaid.gov/georgia/cdcs

More carrots -

Pt.1

COUNTRY DEVELOPMENT COOPERATION STRATEGY - GEORGIA

Georgia is the United States’ key and reliable partner in a geostrategic region of vital importance. As the U.S. government continues its steadfast support of Georgia’s integration into western political and economic structures, USAID has developed a new, five-year Country Development Cooperation Strategy (CDCS) to partner with Georgia on its challenging Journey to Self-Reliance (J2SR) while advancing Euro-Atlantic integration and strengthening resilience to malign influence.

As a frontline state, Georgia finds itself at a critical juncture, with its gains and aspirations put to the test. Georgia’s Abkhazia and South Ossetia regions are occupied by Russian forces. Russia’s "borderization" efforts (i.e. the installation of fencing on Georgian territory near the administrative boundary line of South Ossetia) indiscriminately and disproportionately affect civilians living in the area, as the country continues to face a precarious geopolitical situation, sitting at the crossroads of Asia and Europe and between Russia and Iran. Despite these challenging circumstances, Georgia has remained determined to complete its transition to a free-market democracy. The progress Georgia has made on this path over the last decade has not been easy, and in many cases, it has come through U.S. and European Union engagement and foreign assistance. In many spheres, Georgia has turned out to be a leader in advancing reforms to strengthen its economy and its governing institutions. Going forward, Georgia can build on this progress to shift toward taking a greater role over its development course to achieve its strategic goals.

USAID’s development assistance over the next five years is designed to strategically capitalize on Georgia’s successful reforms and development gains while addressing challenges related to potential democratic backsliding and a geopolitical environment that threatens to undermine the country’s development gains and territorial integrity. The CDCS reflects the priorities of the U.S. National Security Strategy, and it is aligned with the Georgian government’s reform agenda and Euro-Atlantic aspirations. The strategy focuses on three development objectives: (a) resilience to external malign influence strengthened, (b) fragile democratic gains consolidated through enhanced citizen responsive governance, and (c) inclusive high-value employment opportunities provided through increased economic growth.

Zaza had previously stated in the press and on TV that the Award would be ready for release in 10-14 days. Based on that timeline the '14th day' was 10th August.

In the statement that DomFok shared from last Friday Zaza was again calling for talks.

If the redacted version of the Award is now ready - it should be, he's had 4 months to redact - he should come out and say "were are ready - what's your side waiting for?" Or use the same tactic as the GOGC and threaten to release the Award anyway.

As I recall, shareholders have been mentioned twice.

We got a mention in Translation #1 -

"..it is very important for businesses to have a good image of the country, a good image of the project, so that shareholders, banks, funds, where interested in working in that country and investing in the country. If the country has a very bad name, a very bad authority, a very bad image abroad, it will lead to the fact that these investment banks, funds, shareholders, various companies will no longer be interested in coming to Georgia."

Approx April or May there was a news site with Zaza. He was a bit more explicit on the above and how he was having to show one face to SH while things where going poorly in Georgia. I think he was referring to the last SH meeting in 2018.

As far as the translations go, he has never been asked a question about shareholders. He always talks about American / foreign investments so presumably we are covered by that.

Please share if there are more references out there.

I omitted this other 'carrot' from the article I posted earlier -

"Gakharia and Boehler discussed the possibility of opening a DFC regional office in Georgia, which could cover the countries of Eastern Europe, South Caucasus, and Central Asia."

Tenners let's hope so. I think rather than support regime change, the US would be happier to see specific changes in the current regime.

The US continues to mould the GG so it further aligns with US foreign policy. This time via the DFC, the investment arm of the US Govt. Pompeo sits on the BOD.

Georgian PM, CEO of US International Development Finance Corporation discuss projects, private sector development in Georgia

Georgian PM Giorgi Gakharia discussed current and future U.S. International Development Finance Corporation (DFC) projects in Georgia and the role of the DFC in promoting the development of the private sector in Georgia with DFC CEO Adam Boehler earlier today.

This is yet another clear demonstration of the high level of cooperation with the U.S. - a strategic partner of the country - not only in terms of democratization and security but also in terms of the economy,” said Gakharia.

Gakharia noted the importance of signing a trade agreement between Georgia and the United States in order for economic relations between the strategic partners to become even more active.

He also spoke about the importance of foreign direct investment in the country especially under the conditions of the pandemic. He expressed his gratitude to the DFC for supporting and funding projects such as Georgia's maritime and port infrastructure including the PACE Terminal in Poti Port, financial sector, energy, communications, healthcare and tourism.

Adam Boehler noted Georgia's significant positive results in the fight against the pandemic and praised both the decisions made by the country's authorities and the efforts of the citizens of Georgia.

Gakharia and Boehler discussed the possibility of opening a DFC regional office in Georgia, which could cover the countries of Eastern Europe, South Caucasus, and Central Asia.

They also noted the importance of strengthening private investment funds in the region."

https://agenda.ge/en/news/2020/2540

The DFC is quite open about its agenda -

"DFC makes America a stronger and more competitive leader on the global development stage with greater ability to partner with allies on transformative projects."

And specific to Georgia -

"The project also advances U.S. interests in a region of critical strategic importance, by supporting an alternative to Russian ports used to transport goods between Europe and Central Asia."

https://www.dfc.gov/investment-story/expanding-trade-and-port-capacity-georgia

Mole - thanks for your reply.

I found the official "Income Reports", filed by Cornerstone, that show the income was received this year. US$80K in Q1 and US$80K in Q2 (up from US$50K per Q in 2019).

Q1 - https://disclosurespreview.house.gov/ld/ldxmlrelease/2020/Q1/301173002.xml
Q2 - https://disclosurespreview.house.gov/ld/ldxmlrelease/2020/Q2/301192703.xml

I did contact Cornerstone to ask if the public record was correct. No reply so far - and likely little chance of any sort of reply - but I will keep pushing these groups to try and see if we can find anything out.

Thats a lot of cash coming from somewhere. I agree that your Pt.2 / Pt.3 makes sense - but do you have any view on what the implications of this might mean for shareholders ?

Johnathansxx - I am not questioning how the money has been spent. I am asking how did we get the money to pay for this.

Thats just the headline stuff - please see the RNS for more information.

Updated Resource Estimate - 40% Increase in Indicated Resource, Toral Pb, Zn & Ag Project, Spain
Europa Metals, the European focused lead-zinc and silver developer, is pleased to announce the results of an updated independent Mineral Resource Estimate, reported in accordance with JORC (2012), in respect of its wholly owned Toral lead-zinc-silver project located in northern Spain ("Toral" or the "Toral Project").

Highlights:

· Updated independent Indicated and Inferred Mineral Resource Estimate for Toral, reported in accordance with JORC (2012). The input database for the estimate, included:

o 113 diamond (including wedges) and 4 reverse circulation (RC) drill holes totalling 60,915.65 metres, and 19 underground channels for 18.75 metres.

o Drill holes TOD-024 and TOD-025 and updated fault models for the first time.

· Indicated resource estimate of approximately 3.8Mt @ 8.3% Zn Equivalent (including Pb credits) and 30g/t Ag, representing an approximate:

o 40% increase in Indicated resource tonnes;

o 38% increase in Indicated contained tonnes of zinc to approximately 180,000 tonnes;

o 36% increase in Indicated contained tonnes of lead to approximately 150,000 tonnes; and

o 32% increase in Indicated contained ounces of silver to approximately 3.7 million ounces.

· A total resource of approximately 17Mt @ 6.9% Zn Equivalent (including Pb credits), 4.1% Zn, 2.9% Pb and 24 g/t Ag, including:

o 720,000 tonnes of zinc, 510,000 tonnes of lead and 14 million ounces of silver.

Outlook

The Company expects to utilise the updated resource model, together with ongoing engineering analysis and the upcoming third phase metallurgical results, for assimilation into updated preliminary economic parameters, to be conducted by Bara Consulting, ahead of a Pre-Feasibility Study. The revised economics will represent an update to those derived from the 2018 Scoping Study, bringing the significant amounts of work completed, and data obtained, over the last two years into the operating and financial model for Toral. Prior to establishing the revised economic parameters, the Company intends to announce updates in respect of the third phase metallurgical test work and ore sorting.

In this very long article about the Caucasus Online saga, and Anaklia Port -

"In 2017, Georgia filed a lawsuit against American oil company Frontera Resources, accusing it of a “significant breach of the contract". Earlier this year, officials in Tbilisi announced that the company would be allowed to operate in Georgia, but only within one percent of the original area. The lawsuit filed by the Georgian government prompted a harsh reaction by the US. A group of US congressmen sent a letter to the State Secretary and Secretary of the Treasury, in which they addressed the problems that American investors are experiencing in Georgia, noting that “foreign direct investment into Georgia decreased by nearly 50%, while taxes and bureaucratic barriers have increased for Western businesses.”

And

"Georgia’s actions towards foreign investors in recent years have already resulted in the deterioration of the investment climate in the country and a significant drop in foreign investments.

According to the Georgian national statistics office, foreign direct investments (FDI) in Georgia decreased significantly in 2018-2020. In 2017, the country attracted nearly $2 billion in FDI, while in 2019 this figure amounted to $1.2 billion. In the first quarter of 2020, FDI in Georgia amounted to $165 million, a 42 percent decrease compared to the same period in 2019.

The former US Deputy Secretary of State believes the incident with Caucasus Online could further weaken the business climate and investment attractiveness of Georgia.

“This will certainly not have a positive impact on the investment climate in Georgia. […] The US and EU are already asking questions about the real reason for this decision. As far as I know, the Parliamentary Assembly of the Council of Europe has already expressed its desire to appeal to the Venice Commission regarding these changes,” Bryza said in an interview with Business Media.

Actions taken by the Georgian government against various international investors like Frontera Resources, ADC, Caucasus Online and others in recent years are endangering the country's international reputation and relations with major partners, including the U.S.-Georgia ties and the EU-Georgia association perspectives.

Earlier this year, the US announced that it may suspend about 15 percent of financial aid to Georgia for 2021, until the its government takes serious steps to strengthen democratic institutions, fight corruption and protect foreign investors."

Full article is here - https://caspiannews.com/news-detail/georgias-actions-to-seize-foreign-company-disrupt-telecommunications-corridor-between-europe-asia-2020-8-13-28/

A couple of months or so ago the amount contributed to politicians in 2020 - as reported on open secrets.com - was around US$35K. A while back a poster shared that the amount had increased to approx US$44K.

I just checked the site and found another page which I don't think we have seen before. That shows that in addition to above amount, FRR has also donated US$160K in 2020 to their long-time lobbying firm - "Cornerstone Government Affairs".

Total contributions to "Cornerstone" are as follows -

2020 - US$160K (to date)
2019 - US$200K
2018 - US$200K
2017 - US$50K
https://www.opensecrets.org/federal-lobbying/clients/lobbyists?cycle=2017&id=D000071040

Zaza has been asked a couple of times about "Cornerstone" and this is what he said in Translation #1 which doesn't seem to fit the data on opensecrets -

"Yes, we had a relationship with „Cornerstone“, but in 2019 we no longer had a relationship. I.e. We had this relationship with "Cornerstone“ and they did some work for us and we ended the contract. So we don't even have a contract with them. So to argue that lobbyists work is not really correct at this moment."

So far in 2020, out of 162 major donors to the O&G lobby, FRR are 55th on that list.
https://www.opensecrets.org/federal-lobbying/industries/summary?cycle=2020&id=E01

How are we paying for this?

It is important to have a truly independent judiciary and parliament, where the diversity of votes and interests is represented, I think Georgia has been taking steps in this direction in recent months, – said Kelly Degnan, the US ambassador to Georgia, at the annual Conference Georgia and its Neighbourhood.

The ambassador responded to the speeches of the speakers at the conference and spoke about the importance of the rule of law and democratic institutions in Georgia.

Jim O’Brien mentioned the importance of the commitments of rule of law, the enforcement of the rule of law. It is also important to fight corruption and properly appreciate the achievements that Georgia has already achieved, as well as to ensure a stronger civil society and censorship-free media that will help democratic institutions become stronger as any healthy democracy. Also important is a truly independent judiciary and parliament, where the diversity of voices and interests is represented, and I think Georgia has been taking steps in this direction in recent months.

We will see if Georgia follows the political will to build democratic institutions to accomplish that difficult task, and if it does, it will certainly be a leader in the region and an exemplary success story beyond the region”, – Kelly Degnan said.

According to Ambassador, as US Deputy Secretary of State Stephen Biegun said at the conference, active democracy in Georgia and the commitment to closer integration with the West are the most important elements of US-Georgia relations.

“The United States and Georgia have a common vision for the region, which is to ensure its stability, conflict resolution, and prosperity, as Georgia continues to develop toward democratic governance. This view is shared by the European Union” – Kelly Degnan said.

At the same time, as the ambassador noted, she is confident that the US and EU partners will do everything for Georgia’s success.

http://en.kavkazplus.com/news.php?id=5621#.XzUrKC17HGI