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Posted by Looed on the 22nd May :-

Pt.2
Another view - also cherrypicked -
"Is there any legal recourse when signatory states fail to implement the Convention?
The merits and usefulness of the New York Convention are clear and significant. Precisely because of the importance of the Convention for fostering cross-border business transactions and investment, the lack of monitoring of the Convention’s implementation is regretable. In other words, there is no international body that actively verifies whether all the signatory countries (and their courts) are fully in compliance with the Convention and the commitments made therewith. There are examples of countries whose courts refuse to enforce valid foreign arbitral awards, often on dubious grounds, although these countries have signed and ratified the New York Convention.....In other cases, judges may have a sort of protectionist or nationalistic bias and would choose to ignore the Convention or interpret it in a very narrow way, to favor the local party and refuse to enforce an award that was rendered against a local firm. This latter risk is even more pronounced when the local firm that is party to the contract is a state-owned enterprise (SOE). A local judge may then see it as their “national duty” to protect the local SOE, an asset or agent of the state, against foreign arbitrators and the foreign company with which the SOE has had a dispute."
http://documents.worldbank.org/curated/en/726311577800894244/pdf/How-Countries-can-Fully-Implement-the-New-York-Convention-A-Critical-Tool-for-Enforcement-of-International-Arbitration-Decisions.pdf
Note - The New York Convention is another term for UNCITRAL.

In various GOGC statements they keep referring to this as a purely "commercial matter". At first I thought that was just an obvious statement, but that term is a crucial part of the Arbitration process -
(States)..."that they only enforce arbitral awards arising out of disputes over commercial matters under the New York Convention. For this reason, it is equally relevant to the practical enforceability of MIC decisions under the New York Convention to identify which cases are considered to concern “commercial matters.....An enforcement according to the New York Convention would be legally conceivable; nevertheless, successful enforcement depends on the perspective of the specific national court having jurisdiction over enforcement. This can lead to divergent results, depending on the legal system."
https://link.springer.com/chapter/10.1007/978-3-662-59732-3_7

The GOGC focus on the commercial dispute aspect. Zaza is claiming FRR won, dragging in politics, CV-19, US interests. We need to see how FRR have won the commercial dispute. The more noise he is making, the less we are able to see the facts on why FRR can legitimately claim to have a win here. he won't share the Award due to "sensitive info", so I don't know how he can prove FRR have prevailed.

Posted by Looed on the 22nd May :-

The "inevitable court case challenging the GOGC"
Pt.1

StarRage and others have mentioned the likelihood of more court action. It sounds a plausible theory given the stark apparent differences . I have tried to find any instances of what happens when sides don't agree, sadly not much out there.

There is no mechanism to overturn the Award (though both sides seem "happy" with their own interpretation of the award). There is a 30 day window (since expired) where either side can seek a clarification or removal of an ambiguity to the Award. If such a request has been made we are now in the 30 day review and publish period. The chances of annulment is slight. They can only apply based on procedural grounds, not on how the Award is interpreted.

Any challenge must be in Sweden - "The decision to vacate arbitral awards issued under UNCITRAL rules lies with the domestic court in the place of arbitration."
https://www.law.georgetown.edu/international-law-journal/wp-content/uploads/sites/21/2019/06/GT-GJIL190015.pdf

I did find one article that has the following cherrypicked comments -
"You may have won the substantive hearing and secured your client a substantial arbitral award, but if the opposing party refuses to honour the award, the fight is not yet over. Unless an award is complied with or enforced, it has only limited reputational value......in many countries, arbitration is the only effective recourse a foreign investor may have against the state, so a reputation for non-compliance with awards can affect inward foreign investment......unlike court judgments, arbitral awards benefit from a number of international treaties providing effective and robust methods of enforcement"
https://www.kwm.com/en/knowledge/insights/enforcing-arbitration-awards-the-how-the-why-and-latest-developments-20160915

And

"While parties who have lost an arbitration and consider that the tribunal misjudged the facts, or the law may be frustrated that an award cannot be challenged as easily as a court judgment could be appealed, systemically this frustration is outweighed by the benefit and attractiveness of an international arbitration award being final, at least in most cases. So long as that finality is protected by national courts, it will continue to be an important reason for parties to continue to choose arbitration as their preferred dispute resolution mechanism."
https://globalarbitrationreview.com/chapter/1178486/awards-challenges

Posted by DomFok on the 22nd May :-

Article "Unprecedented statement The Georgian government is cooperating with America's enemies”
https://timesnews.ge/archives/1280

Georgian government cooperates with America's enemies! - The strategic partner of the country makes an unprecedented application. The US Senate openly accuses Bidzina Ivanishvili of anti-Western and pro-Russian ties.

Texas Sen. Ted Cruz, Senate Foreign Relations Committee member John Cornin, Congressmen Marquin Malin and Jodi Arrington - a letter from influential American politicians has already been sent to the State Department.

Influential American politicians have been interested in the illegal economic activities of the Georgian Dream since the ruling party began openly blackmailing American investment.

"Frontera Rivers", "Conti Group" - this is a small list of companies that the government has declared war on. Blocking the companies of the strategic partner and openly pouring water on the mill of the enemies of the United States will bring irreparable consequences, according to the non-governmental sector.

Analysts do not remember such a serious accusation from a friendly country. According to them, after this letter, the Russian game of the oligarch will end with the imposition of sanctions on Bidzina Ivanishvili.

Everyone in the opposition is convinced that unprecedented messages from the West will only say one thing - the oligarch's rule will end in the October elections.

The leader of the Labor Party has been writing letters to influential Senator Cruz on Ivanishvili's Russian-Iranian ties for a long time. Shalva Natelashvili thinks that his efforts have yielded results and that the oligarch will be sanctioned for non-governmental activities.

Throughout the day, the management team avoids serious allegations. He was the only chairman of the Georgian Dream faction who tried to respond to the unprecedented pressure by focusing on the case of a particular American company.

Now Mike Pompeo and Steve Mnuchin have to decide what price the Georgian Dream government and oligarch will pay for acting against the national interests of the United States and Georgia, and whether this political price will be sanctions.

Posted by keysersoze on the 22nd May :-

Frontera mentioned in article.
http://gazetiajara.ge/2020/05/21/?????-????????????-????/

Politician Aslan Lortkipanidze: The American company Frontera is financing the election campaign of the senators who are now accusing our state of suspending the company's activities.

May 21, 2020

Long article, heres a snippet

US senators accuse Ted Cruzida John Cornin of illegal oil trade with Georgia. We are talking about the company "Frontera", which, according to them, the government is going to expel from the country. At the same time, the senators say that they have left the Anaklia port for the "Conti Group". . . How true are the statements of the senators?Brand of illegal oil trade with Iran
The meeting clearly indicates the degree of falsification of the information sent by the Georgian opposition and the representatives of the non-governmental sector to the members of the Parliament of the partner country.
Unfortunately, the senators do not have the proper information and it would be good if our embassy would work better in this direction. On April 17, 2020, the International Hague Arbitration
Tribunal issued its final decision and upheld most of the lawsuits filed by the Georgian State Oil and Gas Company and the agency. The tribunal says Frontera Research Georgia Corporation has substantially violated the terms of its 1997 contract and ordered it to pay a certain amount in favor of the budget. The American company is also obliged to return to the state the territory that was given to it for research.

"Frontera" lied to the population about the discovery of 42 billion cubic meters of gas in the village of Yurmughanlo, Sagarejo Municipality, which was discovered during the Soviet rule. It was called the Green Gorge. The American company "Frontera" finances the election campaign of the senators who are now accusing our state of suspending the company's activities. The truth is that the company has unfortunately not been able to find new gas and oil supplies in Georgia since 1997, and has not fulfilled the terms of the agreement with Georgia, which, according to the Hague International Arbitration, will have to suspend operations for other reasons. Conti Group sells a 42% stake in the Anaklia consortium of its own free will and has not made any claims. Both the consortium and the Georgian government were concerned about this fact.
Apparently the company considered that this project was not profitable for it. It is also wrong to politicize this fact. Statements by senators are baseless.

Posted by Looed on the 22nd May :-

Pt.2
The letter mentions the port of Batumi as a target for Iran's illegal oil activities as well.
The Ambassador of the United States of America to Georgia Kelly Degnan made the first comment on the matter yesterday during the virtual press conference with the media.

She said as a representative of the executive team, she will refrain from commenting on the actions of other branches of government in the United States, because Congress is very independent, yet she noted that the statements about Georgia in the US are made by those who want to see a successful Georgia.

“What you can be sure of is that any comments that come from the US come from people, groups who sincerely want Georgia to succeed. They want Georgia to continue on the path to Euro-Atlantic integration. They want Georgia to fulfill its dream - to have a more free, strong democratic society that is also economically developed and offers its people a variety of economic opportunities that it deserves,” Degnan commented, adding that any kind of response that Georgia receives is imbued with this spirit and the desire to promote Georgia’s success.

Asked if she had discussed the Georgian government's ties with Iran, the ambassador said she will discuss ‘our relations with the Georgian government in a wider range.’ According to her, countries have very good cooperation and communication, especially on issues related to international and regional security.

Among other things, the US Ambassador stressed the importance of the independence of the judiciary and said that its transparency and efficiency are important for both democracy and economic development. “Investors need to know that the contracts they sign will be enforced and the court decisions will be fair and timely. Therefore, if these steps are not taken, investors will invest their money in another country,” said Degnan, adding that it is essential to create an independent judiciary in order to attract foreign, including American, investment in Georgia.

The decision of the International Arbitration Tribunal on the Frontera case has been interpreted in different ways by both sides. On April 21st, the Oil and Gas Agency and the corporation, which launched the dispute in 2017, announced that the arbitral tribunal had supported their interpretation of the norms of the contract and had met the vast majority of their claims. They said the tribunal had found that Frontera had substantially violated the contract, which was reflected in the refusal to return the search area (99% of the entire licensed area) to the state.

Posted by Looed on the 22nd May :-

Article - "American business in Georgia: Frontera’s case"
Finally - A Georgian based article that tries to at least show both sides of the story . Pt.1

"US Sens. Ted Cruz member of the Senate Foreign Relations Committee, John Cornyn, along with Reps. Jodey C. Arrington and Markwayne Mullin, sent a letter, dated May 15, to Secretary of State Mike Pompeo and Treasury Secretary Steve Mnuchin requesting a briefing in response to concerns about governance issues in Georgia, specifically Georgian illicit financial ties to America's rivals and enemies, including ties with Iran, that threaten US national security and business interests.

In the letter, they asked to be briefed about: The current government of Georgia, led by the Georgian Dream, is trying to drive out the American businesses that are investing in Georgia's economy and future investment; Such actions are motivated by geopolitical considerations, including Bidzina Ivanishvili's alleged links to the Russian government; Black Sea Port Activities for a Critically Important American Interest in Threatening Georgia, including: The premeditated expulsion of American companies from the port project is connected with the protection of Russia's influence on the ongoing processes in Georgia. Deficiencies in the implementation of US sanctions, in particular, in the context of ports.

Letter said that Georgia is a strategic partner in the Caucasus and an aspiring NATO ally: “Militarily, the Georgians have provided resources to our mission in Afghanistan. Geographically, the country offers a critical route for trade and energy from the Caspian Sea to Eastern Europe. A robust US-Georgian partnership is a necessity for American interests, which in turn requires Georgia to return to and bolster good governance.”

They wrote that over the last year, foreign direct investment into Georgia decreased by nearly 50%-while taxes and bureaucratic barriers have increased for Western businesses.

According to authors, these good governance issues have directly undermined the ability of American companies to operate in, and deepen our relationship with, Georgia. In the letter, the senators point out that the Texas company Frontera has become a target of restrictions and regulations by the Georgian government, and is currently facing possible expropriation. And in 2019, Conti Group was expelled from the port construction project in Anaklia, which has been suspended at this stage. The letter also spoke about the illicit trade. Authors reiterated Georgian businesses and the Georgian financial system have for years been notorious among the US sanctions officials as vehicles for circumventing American sanctions on Iran, citing the operation of a small bank by three Iranian citizens in Georgia in 2013, which involved air travel with financial transfers and the involvement of various companies. The letter mentions the port of Batumi as a target for Iran's illegal oil activit

Posted by Looed on the 21st May :-

RE: Kinzinger
The GOGC clip links to a TV news website. On the twitter link their is a version of the article I posted earlier - again no mention of FRR - but does mention Ankali Port -

Of course, there are some challenges in Georgia, but similar challenges will be everywhere with regard to politics or COVID-19, and the presidential election is approaching. Said.

According to the Republican congressman, there are still some issues to be resolved, but the main thing now is the elections.

"I hope that in October I will be able to come to Georgia in the role of election observer, it will depend on the air traffic and the working mode of the Congress. The Speaker of the Parliament, the government, the opposition deserve special praise, who have to find a solution in a difficult time, and it is likely that not everyone will like this solution, but this is democracy. With regard to COVID-19, the United States stands by Georgia in dealing with the consequences we are already seeing, ”he said.

He said he expects Congress to discuss global aid and believes that the United States should maintain and redouble its involvement globally in this issue and step up pressure on China, which is responsible for this pandemic.

"The economy will be hit hardest in both the United States and Georgia, and this is a time when we need to put aside our differences and work together on behalf of our people." Regarding the Anaklia Port project, I would like to say that I have talked to the Government of Georgia and as they told me they are interested in American investment in this project and I hope that this project will be implemented as soon as possible. I would like to congratulate our Ambassador to Georgia - Kelly Deganan, I think he is doing very well, he has a very nice job, "- said Adam Kinsinger."

Source - https://imedinews.ge/ge/politika/143594/adam-kinzingeri-gansakutrebul-sheqebas-imsakhureben-parlamentis-tavmjdomare-mtavroba-opozitsia-romlebsats-gamosavlis-dzieba-rtul-droebashi-utsevt-da-savaraudod-es-gamosavali-kvelas-ar-moetsoneba-tumtsa-stsored-esaa-demokratia

Posted by Looed on the 21st May :-

As an American seems to side with GOGC.....
...a Georgian has the following opinion, with veiled reference to FRR ? -

"Davit Bakradze: It will be impossible to pull the country out of the crisis and to recover economy without American investments
It will be impossible to pull the country out of the crisis and to recover economy without American investments, - Davit Bakradze, one of the leaders of European Georgia, said when commenting on the US Ambassador’s statement on the importance of independent judicial system.
According to Bakradze, all such messages mean that we should send the Georgian Dream home in the autumn elections.
"This statement of Ambassador Degnan is not an isolated statement. We all remember how harmful political persecutions were for American investments in Georgia. We all remember an unprecedentedly critical letter of congressmen a few days ago, when they addressed the US Secretary of State regarding the protection of American businesses in Georgia. Today a critical statement was made by the Ambassador.
All this, of course, harms the Georgian Dream in the first place, but it also harms Georgia and our citizens, because it will be impossible to pull the country out of the crisis and to recover economy without American investments. It is crucial for us to have foreign and, above all, American investments”, Bakradze said.
The above remarks were made by Davit Bakradze after US Ambassador Kelly Degnan, during a virtual press conference, stressed the importance of a fair trial for attracting investors, noting that without it, businessmen would simply invest their money in another country. "Businesses need to know that they are investing in a country that has a reliable judiciary, that their disputes will be resolved fairly and in a timely manner”, he said."

Source - https://www.interpressnews.ge/en/article/107501-davit-bakradze-it-will-be-impossible-to-pull-the-country-out-of-the-crisis-and-to-recover-economy-without-american-investments

Posted by Moleinahole on the 21st May :-

Indeed Looed focus on the game not the player with B2O. I've always been intrigued by his/her posts and if a PI then I tend to assume they have unearthed something others have not seen yet. Hence my request for source.
I'm just not confident here at the moment and I have spoken to the company since delist as I don't see how a deal could emerge from such determined litigation by both GG and Outrider. Title to the asset has been under two legal challenges. If it was a large country making deal it should have gone quiet while the details were worked through.
What is actually happening is the GG are using the process to shield themselves from US blowback. Outrider could be onto a massive loss here. And there a millions more in debts owed to others. So there will be many creditors who stand to lose here including employees and other suppliers. The old maxim about when you owe the bank alot they have a problem applies.
Hogan Lovels will have been conversing with FTI in the arbitration. So FRR have been fighting a complex multi faceted battle largely of their own making by running up too much debt and not returning the non development areas in 2017. Both these areas happen to be the two areas where disclosure to shareholders has been economical with the truth. It is that track record of economy that should inject a large pause for thought when looking at the reality of the current situation. Zaza may want to politicise this but my gut feeling is it will follow a strict legal process to conclusion. If there is a side out of court deal then all well and good or a last minute reprieve but seems unlikely to me but I would never rule out the possibility of one so strange is the company and its journey. I do think Zaza has tried to rescue the company over the past 3 years and that our interests are aligned. What I'm less sure of is whether confrontation has been the best strategy or whether in the end it was the only one left in the absence of a deal or a funding source to take the company forward. And to end in my opinion that could only happen with certainty on the asset which the arbitration and loan note litigation/security issues have made mighty difficult.

Posted by Looed on the 21st May :-

Pt.2
This is from an interview he gave on 5/3/20 -
"We very much hope that the arbitration will make a fair decision and it will be so. We also believe in our position to be true. We have been working in Georgia for almost 24 years and have never violated any of our contract terms. It was a great surprise to us the government's decision to sue arbitration for the largest private American investor in the country. We hope that everything ends up being the result we want.
"As for the negotiations, we were constantly referring to the government before and during the arbitration. No country is favorable when the largest energy investor is sued, especially if they had no solid fodder to do so.
We have always wanted to come to an agreement, as this would prevent all parties from spending a great deal of money during the arbitration process. It would have made the country better and more attractive for different companies in terms of investment. Unfortunately, the process that we thought was going to reach an agreement did not end in a meaningful way. There is no negotiation on the agreement at this stage. Extensive negotiations with the government have been going on for about six months, and we have agreed on the issues to be discussed. The state expressed a desire to have a greater economic interest in this agreement, and we were ready to do so.
Finally, whatever issues arose in the light of the existing agreement, I am sure It seems that their actions were not sincere. There were issues that were not on the agenda. They sought to amend the various clauses in the contract so that it radically changed the economic interest of the company in the contract. When you invest more than half a billion and then fundamentally want the state to change the economic terms of this contract, it is very difficult and virtually impossible to work in such a situation."

B-2-0 claims a goodwill agreement / OOCS was signed in July '19. If he is right then the arbitration only concerns the undeveloped land. If he is wrong and the termination applies to 100% of the area, there was no OOCS. These comments appear to give no indication of any settlement and Zaza's more recent comments point to a complete breakdown in relationships.

As stated repeatedly, B-2-0 offers no proof to help us verify these claims. With people hanging on to his version of events we really need to be able to verify as I can imagine the effect it might have on some if his theory is false.

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