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Posted Looed on the 15th August :-

RE: Lobbying
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 ?

Posted DomFok on the 14th August :-

NEW FRONTERA STATEMENT ?
Frontera calls on the Prime Minister to respect his own decision and fulfill it

Posted: 42 minutes ago

Oil company "Frontera" releases another letter and calls on the Prime Minister, Giorgi Gakharia, to respect and implement his decision.

The letter states that on June 23, the Prime Minister publicly stated that the Georgian government was not going to terminate the contract with Frontera. The company notes that despite this, no attempt has been made by the government to put these words into real action.

After the constructive statement of the Prime Minister, we received a message from the government that the government is only "temporarily suspending" the contract termination procedure. "We have made numerous attempts to meet with government officials to lay the groundwork for Frontera to make future and mutually beneficial investments in the future, but the government does not respect the decision of the Prime Minister and the government and continues its intimidation and disinformation campaign," the statement said.
The company says that the information spread is false, as if the government won the arbitration dispute, and 84 employees of "Frontera" have not received their salaries for 17 months.

We again call on the Prime Minister and his government to stop the campaign to spread lies aimed at discrediting our company and instead to make public statements sincerely, and our company in the spirit of true partnership. "We appeal to the Government of Georgia to abide by the decision of the Arbitral Tribunal, to respect the terms of the contract, to meet for a constructive dialogue and to guarantee that we can return to work safely, without threats of termination, intimidation or new conditions," Frontera said.
Recall that the Government of Georgia, in the light of the decision of the Hague Arbitration Tribunal, still extended the contract with "Frontera" and allowed the company to continue operating in the part of the original contract area where oil production was still underway since the Soviet era. The Georgian government justified this decision with the strategic tasks facing the country, in particular, the need for Georgia to have a positive reputation as an investment country and to maintain a positive relationship with the United States.

https://mtavari.tv/news/13320-prontera-premiers-moucodebs-pativi-stses-tavisive

Posted Moleinahole on the 14th August :-

Looed that is the right question. The why is self evident having started a political campaign then it's no surprise that it has continued given the events having embarked on this journey.

The how again raises the question of funding. If the oil and gas was blocked with presumably the Georgian bank accounts and all the revenue then how are they doing it?
An excellent question for which there are a few possibilities.
1. They accrued some money in the past to spend now. Possible but unlikely. We know from court papers they were down to $50k in the bank end of 2018 and that is the last record I know of cash. Last accounts were not swelled by production either.
So internally generated funds are unlikely.
2. Borrowed or injected money - seems the most likely. They must be getting or have got some cash in either as a result of the green transaction of which we know nothing at all of the financials or someone has extended credit. They might have mortgaged future production given the inherent risks commercial banks would be most likely not an option. Seems most likely they have got some cash from a transaction we are not privy to and the reason why the company should be presenting accounts to explain the financial position to shareholders! One could speculate why they would not publish a set of accounts at the moment.
3. Cash from Steve/Zaza. That's possible indeed FTI have asked the question who is behind the green arrangement.

So to me whoever is behind the green transaction are the obvious candidates as they have most incentive to see a result. There are other creditors who would not like to see FRR fold but would they go beyond extending credit?
The other final possibility is that cornerstone have provided the lobbying but not been paid either I suppose!
The absolute left field field is FRR draw support from some shady govt or quasi govt agents that enables them to carry on. All of which would make not paying the workers (allegedly) all the stranger.
To me the non payment of workers makes more sense as a result of something FIT have done but we know alot of them must have been contractors maybe uniserve employees who relied on the development work which has stopped since 2018.

The previous post was posted on the 14th and not the 13th August.

Posted Looed on the 14th August :-

FRR gets a mention....
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/

Posted Looed on the 13th August :-

Ambassador Degnan gives Georgia a polite "must try harder"
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

Posted Looed on the 11th August :-

Another employee protest
The fired employees of the oil company "Frontera Eastern Georgia" held a rally in Dedoplistskaro - the protesters are again demanding timely repayment of salary arrears and reinstatement in service.

They stopped a car belonging to the company, which was planning to export oil, for several hours today and did not allow them to leave the area.

According to the gathering, the severe financial crisis became the reason why one of the employees of the company ended his life by committing suicide.

We worked for months and now the company does not want to repay this debt. We were unfairly fired. The state also won the Frontera arbitration dispute and ordered us to pay off our debt, but so far the company's management does not want to comply with the decision. Behind us our families and children, we no longer know what to eat them. "He had no money for medicine and it was very difficult, so one of our employees committed suicide," said one of the protesters.

Giorgi Janiashvili, the manager of the company Dedoplistskaro, has no answer to the question when and in what time the debt will be transferred to the former employees.

The state recently won an arbitration dispute against Frontera. The arbitral award sets out the relevant obligations of Frontera in terms of both the return of the search area and the reimbursement of the relevant funds.

A few days ago, the government made a decision, according to which each dismissed employee of the company will receive 1,200 GEL at a time, said the Minister of Economy Natia Turnava after the August 6 government session.

The company "Frontera" owes 84 employees, about 17 months, a total debt of up to one million GEL. The employees sued the company "Frontera" in court eight months ago. The fired employees have been holding similar rallies on a permanent basis for several months.

Recall that the Georgian government, in the light of the decision of the Hague Arbitration Tribunal, still extended the contract with "Frontera" and allowed the company to continue operations in the part of the original contract area where oil production was still underway since the Soviet era. The Georgian government justified this decision with the strategic tasks facing the country, in particular, the need for Georgia to have a positive reputation as an investment country and to maintain a positive relationship with the United States.

https://mtavari.tv/news/13142-pronteras-tanamshromlebma-saprotesto-aktsia

Posted Chris572 on the 11th August :-

Part2
"Unfortunately, instead, the government has disguised itself as the current kleptocratic oligarchy. International observers know that our business experience is a real-time indicator of what is really happening in the country's geopolitical and economic landscape. "The Georgian government is constantly trying to attract the attention of the West and seek foreign aid, but at the same time it is silently instilling the values ??that the Russian invasion of 2008 should have inherited. This is a very dangerous masquerade. The goal of the 2008 Russian invasion has been largely achieved." In order to significantly destroy the free enterprises of the Western private sector.Our business and the prospect of Georgia's energy independence related to it has been damaged and halted by the government, which was prevented by the Russian military invasion 12 years ago. We could not have imagined that after this horrific war, we would find ourselves in an environment where democratic reforms are opposed and Russian, Iranian and Chinese private sector investments are welcomed by the government more than by the Americans. As the largest US private sector investor in Georgia, we have met with the Prime Minister and his Government many times over the past year to try to return the positive spirit of the US / Georgia Partnership Frontera Resources Corporation - 3040 Post Oak Blvd, Suite 1100 - Houston, Texas 77056 USA . Unfortunately all these appeals were ignored, or we were rejected in response.However, as we saw in the last week of July, the pro-American masquerade continues, with other priorities. "The president, the prime minister and his government have more time to meet with Iranian officials to discuss normalization of relations and economic development," Frontera said in a statement, urging the government to work with him directly and in good faith.According to which the company calls on the government to act directly and in good faith with it:According to which the company calls on the government to act directly and in good faith with it:

"We respectfully urge the government to remain committed to the arbitral tribunal's decision, to respect the terms of the contract, to meet constructively and to guarantee that we will continue to work without threats, intimidation or new terms," ??the statement said.

According to the Minister of Economy and Sustainable Development of Georgia, Natia Turnava, the government has decided to provide a one-time assistance of 1200 GEL to the former employees of the company "Frontera":

Posted Chris572 on the 11th August :-

NEWS
Frontera: The Georgian government has continued its disinformation campaign against our company

August 10, 2020
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The American company "Frontera" responded to the decision of the Georgian government to provide a one-time 1200 GEL assistance to the former employees of "Frontera". In particular, the statement states that the Georgian government has continued its disinformation campaign against the company, calling Frontera employees "former employees" and announcing its decision not in person but through the media:

"Instead of having a direct connection with the company, as is appropriate for a constructive partnership, members of the government have again chosen to make a public statement on a fabricated issue, the obvious reason for which is pre-election advertising. The public should be aware that the government has not even attempted to work with our company to find out or clarify facts about our employees. In return, they again made a wrong public statement about the so-called August 6th.

If the government was really interested in the well-being of our employees and the business that ensures the well-being of our employees, then they would not have casually spent 40 million GEL on legal services to terminate our contract through international arbitration against us in 2018, which ended in government failure. "The question is, why did they decide to spend this huge amount of money to kill private American investment, when they knew that their success would create massive unemployment and economic downturn in Tbilisi and Kakheti?" Deliberately uses the International Court of Justice as a weapon during the year:

"The only reason for this is to damage our business and our employees, forcing us to leave Georgia. In the end, their corrupt attempt failed, but I wonder who is responsible for the misuse of such valuable state funding in the face of Georgia's shattered economy? A two-year costly legal dispute alone did not prove to be enough for those who ordered it. At the same time, the government has created regulatory resistance to increase pressure, blocking crude oil exports and preventing the sale of extracted natural gas. In addition, we do not reimburse VAT debt Frontera Resources Corporation - 3040 Post Oak Blvd, Suite 1100 - Houston, Texas 77056 USA, which exceeds 20 million GEL. Is this the action of a government that"Who is interested in encouraging private American investment and long-term employment for the people?" According to the statement, then, 12 years ago, it was hard to imagine that a government would come that, according to the company, had removed the country from its pro-American and pro-democratic policies:The country has moved away from pro-American and pro-democracy policies:The country has moved away from pro-American and pro-democracy policies:

Posted Looed on the 11th August :-

The fact that such a strategically important project was derailed by domestic political squabbling does not reflect well on Georgia. Foreign firms will be less likely to invest there, especially in things like infrastructure projects which require long-term commitments. This should be a grave concern for Georgia, where FDI inflows have already fallen from an average of $1.8 billion per year between 2014 and 2017 to $1.3 billion in 2018 and 2019, according to government data.

Access to Western investors, businesses, and insurers – which requires those actors to believe they will be treated fairly – is a vital economic and security asset for Georgia. Investors bring more than capital and expertise; they form connections between business communities in Georgia and the West which in turn create political connections. If the steady march of bad press about Anaklia dissuades some Western firms from investing in Georgia, the country will be forced to choose between slower economic growth and new benefactors.

The obvious choice would be China, with its deep coffers and penchant for investing in dysfunctional countries along trade routes to Europe. This is not just a far-fetched hypothetical. Secretary of State Mike Pompeo has cited the risk of Georgia “falling prey to Russian or Chinese economic influence” as one reason Anaklia is so important. Chinese investment in Georgia would invite the same concerns about debt traps, a lack of transparency, and political influence that accompany Chinese investments everywhere.

Georgia is still a success story for democracy and free enterprise in a tough neighborhood. The Anaklia fiasco is a step backwards. Georgians must now recognize the danger of politicizing critical investments. Parliamentary elections in October are the perfect opportunity to voice support for Anaklia and for keeping their country open to foreign businesses.

Georgia’s friends in Washington, meanwhile, should provide the kind of guidance that is based on principle, not favoritism. In April, Georgia prevailed in an arbitration dispute with Frontera, the American oil company, which the Hague Permanent Court of Arbitration found had failed to pay wages and engaged in other unscrupulous behavior over the years. Instead of supporting Georgia’s efforts to move on, some members of Congress (who took contributions from Frontera), tried to get the State Department to withhold aid to Tbilisi, tying – improbably – the Frontera dispute to Russia. Tbilisi had no choice but to cave.

That’s how Beijing and Moscow do business. If Washington wants Georgia to succeed as a transparent and free democracy, it should support the country’s efforts to play by the rules – and support negotiations with the Anaklia Development Consortium.

https://eurasianet.org/perspectives-arbitrations-are-not-a-good-look-for-georgia

Posted Looed on the 11th August :-

Perspectives | Arbitrations are not a good look for Georgia
This is focused on Anaklia Port and does reference FRR a couple of times -

Pt.1

Tbilisi’s handling of the Anaklia port project, especially soon after another noisy dispute with a foreign investor, is hurting its reputation and undermining Georgia’s security.

The investors behind Anaklia, an ill-fated deep-water port project in Georgia, late last month filed arbitration claims against the Georgian government after accusing it of undermining the $2.5 billion project.

Georgia needs the port. And if it doesn’t want to find itself sucked into a Chinese debt trap, it needs to stop tussling with Western investors. The arbitration filings came just days after Tbilisi backed down in another conflict with another investor, Frontera, an American oil company – under myopic pressure from Washington.

This latest escalation in the bitter public dispute over Anaklia is a blow to Georgia’s national security for two reasons.

First, it is yet more evidence that Anaklia will not be built anytime soon; the arbitration process will make it difficult for the government to attract new investors. As the country’s first deep-water port, Anaklia is an essential part of Georgia’s plan to transform itself into a transit hub between Europe and Asia, a strategy intended to boost trade, integrate deeper in the Euro-Atlantic economic system, and ultimately pull Georgia out of Russia’s sphere of influence.

The move by the Anaklia Development Consortium (ADC) – which was founded by a rival to the head of Georgia’s ruling party – came after the government blamed it for failing to raise enough money for the port and terminated its contract in January. ADC, for its part, maintains that the government made it impossible to attract investors.

The Anaklia saga also undermines Georgia’s security by damaging its reputation as a safe place to invest. Georgian officials like to boast about their country’s free trade agreements and high place in ease of doing business rankings. The ability to attract foreign investors not only spurs growth, it creates connections with American and European business communities and spares Georgia from having to accept predatory loans from China to build new infrastructure.

Already Chinese investors are active in coal mining, housing construction, and rebuilding roads.

The ruling Georgian Dream party has always claimed it supports Anaklia. Behind the scenes, however, it has appeared to sabotage the project by refusing to provide guarantees to international financial institutions, and launching what smells like a politically motivated money laundering investigation against former ADC chairman Mamuka Khazaradze. Clearly there is a personal rivalry between Khazaradze, who has started his own political party, and the head of Georgian Dream, Georgia’s de-facto leader Bidzina Ivanishvili.

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