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Posted by erazzel on the 23rd July :-

I am going to discount your comments Mole.

AFter going underground for a perios of time and giving the impression its all doom & gloom, you surface when positivity arises to get all wobbly again.

So you are discounted as FRR & ZM are cracking on.

Posted by Moleinahole on the 23rd July :-

Erazzel for the record over the past 18 months I have been having to deal with an infirm parent with advanced parkinsons with dementia living 300 miles away from where I live. The past 2 months he has been in and out of the care homes and critical hospital care - when I'm away I don't post. Twice in the last month he has been recovered in hospital - last time on sunday night. So just give your sniping a rest. I've just filtered you - filter me if you don't want to hear a realistic view.

I have a considerable sum invested here and I'll post how I see it. As of today the company remains in a precarious position. That is a fact. The last set of accounts from mid 2018 were not good. No one would be happier than me to see a return to better times here. But lets not be kidding ourselves after what has been a torrid time since 2016 - not just 2018 that serious challenge here does not remain. And the way shareholders have been blanked out is wrong and normal norms of the companies articles need to resume as soon as possible. I'm not going to make any excuses for that either as it has caused considerable angst.

Posted by EkXoc on the 23rd July :-

I think everyone needs to calm down abit. There is no point being judgemental until all is done and dusted and we have ALL the information (that we will ever get). What is patently clear here is that this is NOT a NORMAL investment there have been hurdles and challenges which are off the scale. Huge rewards do not go without huge risk, there is no such thing as a free lunch. Fact is despite everything the good ship FRR has so far weathered a storm of unprecedented magnitude for which we should be grateful and to some extent in awe. During this time we have been drawn together as a community not without its antagonists, however for the most part this board has remained respectful and decent which really does set it apart from pretty much all other I have seen and for that reason alone we should be proud. Many posters have felt secure enough to post about thier personal woes which is extraordinary for a share BB. What has happened here is quite special I think.
My very best wishes at this time go to Zeps and Mole. May we remain humble and content with whatever providence has bestowed upon us. But let us also dream of touching the stars.

Posted by Looed on the 23rd July :-

Pt.2

Nevertheless, in order to maintain the reputation of a country with a model investment environment, the Georgian side offered Frontera an extension of the three-month termination agreement on the basis of a bilateral agreement, so as not to close the dispute settlement space and continue a positive outcome-oriented bilateral dialogue. - m also refused.

Today, the Georgian government has decided not to terminate its contract with Frontera and to allow the company to resume operations in the part of the original contract area where oil production has been under way since Soviet times. It is about 1% of the state search area, because about 99% of this area, "Frontera", according to the arbitral award, has already returned to the state.

The decision of the state is conditioned by the strategic tasks facing the country, namely:

It is important for Georgia to have an international reputation related to the investment environment of the country, which constantly receives high marks and despite the absolute position of the state in the dispute with "Frontera", it is inadmissible to cast a shadow on this feature. Maintaining a highly positive perception of the reputation and investment climate of the country is our most important task.

The relationship with the United States, which is the main strategic partner of our country, is a fundamental and principled issue for us. Although the issue of Frontera is not a topic of discussion in official relations at all, it is unequivocally undesirable for us to have an excuse in the highly diverse political spectrum of the United States to use this absolutely routine commercial dispute to the detriment of strategic relations between our countries. Georgia's investment image and close relations with the United States are important, first and foremost, for its ties with the American business community, as special attention is always paid to attracting American investment to Georgia.

Finally, the decision allows Frontera Resources Georgia Corporation to stop mobilizing and dealing with lobbyists, instead focusing on fulfilling the obligations it has accumulated to its employees. With the creditor and continue the activities in terms of carrying out exploration work.

With this approach, we emphasize Georgia's sincere desire to have an open and transparent relationship with Frontera, for which it is also desirable for the company to make public a summary of the arbitral award that does not contain confidential information about the company and that sheds light on the dispute. Excessive interest and speculation on the issue will end this, and stakeholders (including U.S. senators and congressmen) will also receive relevant information from open source.

http://www.economy.ge/index.php?page=news&nw=1541

The last post was posted by Looed.

Posted by Looed on the 23rd July :-

Official statement from Ministry
Pt.1

As it is known to the public, as a result of the arbitration dispute initiated in the Hague Arbitration Court, the Arbitration Tribunal upheld the legal position of the Georgian side against Frontera Resources Georgia Corporation and filed a lawsuit against the Oil and Gas Corporation and the State Oil Company.

In particular, the Arbitral Tribunal found that Frontera had materially breached the contract of 25 June 1997 for the distribution of products and the processing plant, which in turn became a solid legal basis for the termination of the contract. In addition, the Arbitral Tribunal ordered Frontera to return the search area (approximately 99 percent of the contract area) to the state and to reimburse the costs incurred by the Georgian side in the arbitration dispute (total payment of approximately USD 6). .

It should be noted that according to the 1997 contract, Frontera had to search for new commercial hydrocarbons within 10 years in order to find and further exploit them. After this deadline, Frontera requested an additional 2 times the search. Extension of the search term, which was satisfied by the Georgian side, thus, the total search term was increased by 20 years, which is an unprecedented example in the industry. The refusal to return the search area became the basis for the corporation and the agency to file an arbitration dispute with the Hague Permanent Court of Arbitration.

However, it should be noted that before the arbitration dispute, the corporation repeatedly appealed to Frontera, offering to resolve the issue through mediation, which, unfortunately, the company refused.

Moreover, after the arbitral award, Frontera, in order to maintain ambiguity in the Georgian and international communities, rejected the Georgian side's offer to make the arbitral award public and launched an information campaign damaging the image of the Georgian state, aimed at routinely resolving international legal disputes. .

Unfortunately, several members of the US Congress, Georgia's main strategic partner, Georgia's friends, were mentally involved in the campaign launched by Frontera, who were again provided with false information about current events by Frontera leaders and lobbyists hired by them.

As the confirmation of the fact of substantial breach of contract by Frontera from the international arbitration created a solid legal basis for the termination of the contract with him, on April 27 of this year, the State Oil and Gas Agency informed Frontera of this intention. According to the contract, 90 days after the sending of this notice, ie on July 27 of this year, the contract expired and, consequently, "Frontera" would no longer have the right to conduct oil and gas operations in the contract area.

Posted by JRjnr on the 23rd July :-

Another one -The Ministry of Economy has changed its mind again and will not terminate the contract
The Ministry of Economy and Sustainable Development changed its mind again and decided not to terminate the contract with the oil and gas company Frontera. According to the agency, the company will be left with the right to work on only 1% of the state search areas, as the remaining 99% was returned to the state by an arbitral award.

The ministry directly says that this is due to the desire to maintain an international reputation related to the investment environment and to have good relations with strategic partners, in particular with congressmen from the US. The agency also notes that this will allow Frontera to "stop trying to mobilize lobbyists" and instead "focus on fulfilling" commitments.

"Such an approach underscores Georgia 's sincere desire to have an open and transparent relationship with Frontera. "It will be completed and stakeholders (including US senators and congressmen) will also receive relevant information from an open source," the Ministry of Economy said in a statement.

The dispute between the company Frontera and the state has been going on for several years and during this period the parties have repeatedly changed their position regarding future cooperation. In a recent ruling, the state intended to terminate the contract with Frontera after the dispute in the arbitral tribunal ended.

Mutual accusations between the parties were not foreign even before the arbitral award, but then became more frequent. Both sides claimed that the decision was in their favor and accused each other of failing to meet obligations and pressure. The state demands that Frontera make the arbitral award public and argues that it will shed light on everything. Frontera opposes this, explaining that the documents contain information on corporate secrecy.

https://on.ge/story/60355-??????????-???????????-????-??????????-??-????????????-?????????-??-??????

Posted by DomFok on the 23rd July :-

The government will no longer terminate the contract with Frontera
https://www.interpressnews.ge/ka/article/610678-mtavroba-pronterastankontrakts-agar-moshlis/

The Georgian government has decided not to terminate its contract with Frontera Resources Georgia Corporation and to allow the company to continue operating in the part of the original contract area where oil production has been under way since Soviet times. We are talking about about 1% of the state search area, because about 99% of this area "Frontera" has already returned to the state according to the arbitral award.
According to a statement issued by the Ministry of Economy and Sustainable Development, "the decision of the state is conditioned by the strategic goals of the country, namely: Shadow in any form to attach to this characteristic. "Maintaining a very positive perception of the reputation and investment climate of the country is our most important task."
According to the statement, "Relations with the United States, which is the main strategic partner of our country, is a fundamental and principled issue for us. Although the issue of Frontera is not a topic of discussion in official relations at all, it is unequivocally undesirable for us to have an excuse for anyone in America's highly diverse political spectrum to use this absolutely routine commercial dispute to the detriment of strategic relations between our countries. "Georgia's investment image and close relationship with the United States are important, first and foremost, for its relationship with the American business community, because special attention is always paid to attracting American investment to Georgia."
As it is known to the public, as a result of an arbitration dispute in the Hague Arbitration Court, the Arbitration Tribunal upheld the Georgian position against Frontera Resources Georgia Corporation and sued the Oil and Gas Corporation and the State Oil Company. In particular, the arbitral tribunal found that Frontera had materially breached the contract of 25 June 1997 for the distribution of products and the processing plant, which, in turn, became a solid legal basis for the termination of the contract. In addition, the decision of the arbitral tribunal, Frontera was instructed to return the search area (approximately 99 percent of the contract area) to the state and reimburse the costs incurred by the Georgian side in connection with the arbitration dispute (total payment obligations approximately $ 6 million). It should be noted that according to the 1997 contract, Frontera was to carry out exploration work within 10 years in order to discover and further exploit new commercial reserves of hydrocarbons. After the expiration of this period, "Frontera" requested 2 more times to extend the search period, which was satisfied by the Georgian side. Consequently, the total search term has been increased by 20 years, which is an unprecedented example in the in

Posted by Looed on the 23rd July :-

Report on Anti-western Propaganda in Georgia
This report covers 2019 and for some reason I can't cut and paste. There is no mention of FRR and though there is nothing surprising in the report, but it shows how incidents like Anaklia Port can be made anti-western.

https://civil.ge/archives/360158

Adam Kinzinger shows how to sit on the fence, badly.
I can understand why Kinzinger gets so much press in Georgia. He is a "Georgia-messy-but-USA-also-messy-right!" kind of chap.

This is part of his reply to a question on electoral reform -

"Well, look, it was messy, right? I mean it was a really difficult process and you know, we were happy to play the role in mediating that but the hope is that Georgia in the future can get to a point where no necessarily need the outside mediators, but that’s the part of growing as a democracy. You know, it’s a divided time, right? I know in the US even right now it’s very divided but we can kind of handle through that."

On GD and links with Putin -

"So, I don’t think that means that all the congressmen agree with that, I don’t think it means anything like that, because you know, we disagree on everything out here, and that’s what’s awesome about democracy, people can have their voice heard in a republic. Do I think that? No."

By Georgian standards it a pretty long interview. I am not sure if he is a paid lobbyist for GD (I couldn't see anything on opensecrets) but his comments could be endlessly spun by the GD from now to the election.

https://www.georgianjournal.ge/politics/36631-adam-kinzinger-i-strongly-support-georgias-immediate-nato-membership.html

Posted by Madpunter on the 23rd July :-

It's called diplomacy. What if the GD and BI have realised that they might lose power and now want to deal with FRR, Uncle Sam, the EU and the UK, instead of Russia, China and Iran (FRR has been quiet the last few weeks)? Would those in prominent positions with the GD want some sort of protection, as they might be worried after what happened with Litvinenko and Skripal? This might explain Adam Kinzinger's support for immediate NATO membership. Also, while Uncle Sam might want regime change in Georgia, IMHO they won't want people to think that they have manipulated the election. Uncle Sam has to abide by the rules, whereas other countries don't care what people think and will muddy the waters with propaganda. Hence, only a 15% cut in aid, instead of cutting all aid, could be perceived as a veiled threat. All still to play for IMHO.

Posted by Looed on the 23rd July :-

The US National Defence Authorisation Act
The Act has over 600 pages and after a quick scan I think this is all it says this Georgia (most other countries get more coverage)-

"Sense of Senate on United States partnership with the Republic of Georgia (sec. 1246)
The committee recommends a provision that would express the sense of the Senate that the United States should promote its
enduring strategic partnership with the Republic of Georgia".

I guess there are supporting documents etc which allow the following statement to be made by the GD -

US House of Representatives adopts National Defence Authorization Act with a separate sub-chapter about relations with Georgia

US House of Representatives' National Defence Authorization Act which included a separate sub-chapter about relations with Georgia, - noted FM Davit Zalkaliani to journalists and stated that the bill in question is very important and speaks of the irreversibility of the US-Georgia strategic partnership.

"The bill once again affirms Georgian sovereignty and territorial integrity. The non-recognition policy is also acknowledged. There is an important emphasis put on deterring and stopping Russian aggression in terms os increasing Georgian sustainability in defense and security direction, including in a sense of providing defense capabilities - lethal and as well as non-lethal. It's also important that this document recognizes Georgia's interoperability and as well as deepening the relations with Georgia and other NATO member states in the context of the Black Sea. The bill notes that, 180 days after the adoption of the bill, the State Secretary in coordination with Secretary of Defence should present a report about the type of economic aid which Georgia and other non-member countries will receive from the US. The report should include issues such as IDPs in Georgia, Azerbaijan, Moldova and Ukraine and the people killed by foreign powers in the occupied territories of Georgia. The report will also touch upon the steps taken towards the rule of law and the strengthening of democratic institutions in Georgia. I think that this bill is another example of the fact that the US-Georgia strategic partnership is at its highest point than ever. When the bill will be sent to the Senate, I hope it will go through all procedures as successfully", - stated Zalkaliani.

https://www.interpressnews.ge/en/article/108495-us-house-of-representatives-adopts-national-defence-authorization-act-with-a-separate-sub-chapter-about-relations-with-georgia

Posted by Looed on the 22nd July :-

Pt.3

Exactly how many American companies operate in Georgia today is a matter of debate. In a July 11 PR puff piece for U.S. publication The Hill, Georgian Dream MP Irakli Beraia wrote that “more than 300 American companies” are currently doing business in the country without problems. It is not clear where this inflated number came from, because Beraia provides no evidence to substantiate it. Meanwhile, the Georgian government has provided a list of over 200 registered companies that, according to the official position, are “American investors in Georgia.” This list is likely what Turnava was referring to, when she told Amb. Degnan that U.S. investment has increased by 34% this year.

But in fact, not more than a dozen of those companies actually have majority-American ownership and physical operations in Georgia. The vast majority appear to be shell corporations or companies that can only be considered “American” in the loosest and most technical sense of the word. Many of the companies on the Georgian government’s list, so-called “U.S. investors” whom the ruling party officials boast about to the U.S. Ambassador and the people of Georgia, have majority owners of Georgian and other nationalities but have one American citizen as a minority shareholder. It is misleading, to say the least, that the Georgian government claims these companies as examples of U.S. investment in the country.

For example, the TV channel POSTV, a ruling-party mouthpiece which is owned by convicted sexual harasser Shalva Ramishvili and primarily known for lambasting the pro-Western opposition, is considered by the Georgian government to be an “American company operating in Georgia.” POSTV features on the list of 200+ “American investors” because one of its minority shareholders, Nugzar Rukhadze, is a U.S. citizen. There are several companies which are majority-owned by Iranian investors, with 10% or less ownership by Americans, yet are still claimed as U.S. investments in Georgia. To use these companies as examples of how well the Georgian government treats American investors, is a textbook example of disinformation.

What’s more, the Georgian government sometimes points to the ubiquity of American brands like McDonald’s, Wendy’s, and Hilton Hotels as examples of successful U.S. investment in Georgia. Of course, this does not correspond to reality, because these brands are franchised to local Georgian businessmen. An American brand name is not the same thing as American investment, and surely the Georgian Dream officials must understand this.

Posted by Looed on the 22nd July :-

Pt.2

Regrettably, several media outlets appear to be amplifying the Georgian government’s propaganda narrative. At least one of these, OC Media, is partially funded by U.S. taxpayers through the National Endowment for Democracy (NED). Nevertheless, OC Media regularly runs stories that serve the interests of Georgian Dream by discrediting Frontera, even publishing baseless accusations that the American company contributed to the suicide of a former employee.

That OC Media piece, on July 10, was essentially a regurgitation of a Facebook post by Georgian labor organizer Irakli Petriashvili. Petriashvili’s credibility is questionable at best. Photos on social media show him marching in the 2017 Tbilisi May Day demonstrations alongside Georgian Communists, who are carrying banners with the hammer-and-sickle -- prohibited in Georgia as a symbol of hate. Thus, Petriashvili’s comments take the character of radical political agitation more than evidence-based criticism of American investors, and it is disappointing that they were reproduced wholesale by a presumably independent media outlet. Another frequent critic of American investment in Georgia, Sopiko Japaridze, is the founder of the self-declared “Marxist Feminist” organization Solidarity Network. Her thinly-sourced hit pieces about Frontera have been published by far-left outlets like Jacobin Magazine, and the Georgian government cites these agenda-driven opinions as unimpeachable evidence for their position.

With the help of such ideological opponents of American investment, Georgian Dream does not allow the facts to get in the way of their agenda. On June 22, Georgian Minister of Economy Natia Turnava had a meeting with the U.S. Ambassador Kelly Degnan, in which Turnava claimed that U.S. investment in Georgia has increased by 34% in the first quarter of 2020. This claimed “increase in American investment” is quite suspicious and unexpected, because foreign investment in Georgia has dropped overall by 42% since Q1 of 2019. Indeed, foreign investment overall has fallen precipitously since Georgian Dream came to power and has now declined to its lowest level since 2006. Even the global financial crisis of 2008 -- also the year Russia invaded Georgia and occupied part of Georgian territory -- did not have such a devastating effect on foreign investment as Ivanishvili’s informal rule.

Posted by Looed on the 22nd July :-

Statement from Georgian Strategic Analysis Centre
This is the group that hosted the press conference with Zaza and Seth Char, and is also the group in the post that Oopsi shared yesterday.

Pt.1

American Investment in Georgia: “Dreams” vs. Reality
By Christina Pushaw

In recent months, the Georgian government has faced several waves of criticism from the U.S. Congress. Prominent senators and congressmen have highlighted the ruling Georgian Dream party’s democratic deficiencies, informal rule by oligarch Bidzina Ivanishvili, and the mistreatment of American investors in Georgia. In particular, the case of Houston-based oil and gas company Frontera Resources -- the biggest U.S. investor in Georgia, which has worked in the country for more than two decades -- has drawn attention from the highest levels of the U.S. government.

Senator Ted Cruz, one of the most influential U.S. politicians, on May 15 sent an open letter to the State Department and Treasury raising the alarm about the deterioration of U.S.-Georgian relations since Georgian Dream came to power in 2012. Members of Congress from both the Republican and Democratic parties have also endorsed a bill to sanction those Georgian authorities who treat American investors unfairly. A few weeks later, 13 members of the Republican Study Committee (RSC) signed a strategy document that called Ivanishvili “a close ally of Putin.” These lawmakers represent not only themselves but the largest ideological caucus in Congress, which counts 147 Congressmen and Congresswomen among its members.

The Georgian government’s response to criticism from Washington has been appalling. Ruling party officials have crossed every red line in communicating with Americans: calling U.S. congressmen & Senators “lobbyists,” accusing congressmen who oppose Ivanishvili of taking bribes from Frontera, and claiming that half the congressmen who signed the RSC document “didn’t know what they signed.” While the Georgian government regularly asserts that the “strategic partnership” with the U.S. is stronger than ever, accusing U.S. lawmakers of serious crimes is totally unacceptable for a strategic partner.

Moreover, the Georgian ruling party has launched a propaganda campaign to discredit the American lawmakers and investors who have raised well-founded concerns about the pressure on U.S. businesses in Georgia. Georgian taxpayers have footed the bill, to the tune of GEL 42 million, from the state budget to fight Frontera in court and on Capitol Hill. These funds may have been better used to create value for the country and for Georgian citizens, most of whom are facing unthinkable economic hardship in the aftermath of the COVID-19 pandemic. No amount of high-priced lobbying will help Georgian Dream in Washington, as long as the truth is not on their side.

Posted by Looed on the 22nd July :-

Adam Kinzinger gets into a little bit of a spin
Adam Kinzinger sits on a subcommittee of the Foreign Affairs Committee and is co-chair of something called the US-Georgia Friendship Group. Its website doesn't seem to have been updated since in 2015. He did take part in one or two of the govt-critical "Senators letters".

This is what he reportedly said on Imedi TV which is pro-Govt -

"American Congressmen Adam Kinzinger claimed that certain conditions mentioned over the draft-project regarding the foreign financial aid to Georgia should not be problematic for Georgia.

As Kinzinger told Imedi TV, the text does not have to do with sanctions. “I do not expect that the draft-project prepared by Assigning Committee outlining certain conditions for 15% of foreign financial aid to Georgia is problematic. Such cases are not rare.

When Americans allocate money for assistance to an ally, they deserve to know that the money is used purposefully. I do not expect that 15% of foreign financial aid to Georgia will be suspended,” Kinzinger said.

According to the Congressman, the topic of sanctions is used for political interests in Georgia.

“Our countries have strong partnership that will continue in the future. I would not classify this case as a sanction. A sanction takes individuals or governments as target. This is not a sanction with respect to Georgia. . . . There have been no talks about use of sanctions against Georgia if we do not consider several blogs that I have read about this issue,” Kinzinger said."

https://1tv.ge/en/news/adam-kinzinger-i-do-not-expect-that-15-of-financial-aid-to-georgia-will-be-suspended/

He was also on Zaza-friendly Mtavari TV and the spin is slightly different -

"We are focused on the October elections so that the Georgian people can express their will," said U.S. Congressman Adam Kinzinger in the "Guest of the Day" program at Mtavari Channel.

According to Kinzinger, since he is the chairman of the U.S.-Georgia Friendship Group, he has no intention of interfering in Georgia's internal affairs. However, he notes that the activation of Russian trolls and bots in the run-up to the elections is worrying. In addition, he confirmed the need to implement the 8 March agreement.

As for the possibility of cutting U.S. financial aid to Georgia by 15%, according to the Congressman, the main thing is for the Georgian government to take into account U.S. criticism in order to more effectively address existing problems. "We have the same challenges in America, but at the same time, we are working with our partners to give them more freedom, for everyone to be able to express their opinions and for everyone to have a stake in government" said Kinzinger.

https://mtavari.tv/en/news/11067-were-focused-october-elections-adam-kinzinger

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