London South East | The UK's favourite investor portal.

Posted by DomFok on the 16th May :-

Brief Zaza Statement
https://commersant.ge/ge/post/xelisufleba-avrcelebs-yalb-axal-ambebs-titqos-saqartveloshi-276-amerikuli-kompania-mushaobs-frontera-senatorebis-werils-afasebs
Zaza Mamulaishvili, the director of the oil company "Frontera", evaluated the letter of the congressmen. Speaking to Kommersant, he said the Georgian government was trying to create an illusion among the population and US politicians that the country had close ties to American business. According to him, the information spread by the government about 276 American companies operating in Georgia is false.

"American investments are being made from Georgia. Authorities are spreading false news that 276 American companies are operating in Georgia, which is a lie. They want to deceive the Georgian population and politicians in the United States into believing that they have a close relationship with American business. In fact, they are harassing, harassing and persecuting any American investment in Georgia, which is why the United States has raised its voice.

According to him, the trend of expulsion of American companies from Georgia started in 2013, which was due to the act of sanctioning the fair business practice initiated by the congressmen.

"The reason for initiating the act is the persecution of American companies in our country. These senators and congressmen have long known our activities, they support the strategic partnership between Georgia and the United States, the economic and democratic development of our country. For them, of course, the events that took place here do not go unnoticed. Quite a disturbing tone can be seen in their letter. The state continues to use violence, they want to take away this project. If this trend is not radically changed, other companies will be included in the letter in the future. Which company would be willing to work in a country whose government is hostile to American investment? I don’t accidentally use the word - hostile. This document describes the attitude and attitude of the Georgian government towards American companies in many US documents.

If anyone wants and is interested in investing in Georgia from the US, of course, they will think about it and will most likely change their minds. In the post-pandemic period, this issue becomes even more urgent, for us every dollar and lari is searchable by candlelight. At the same time, instead of everything the government is doing to attract investment and create jobs, on the contrary, it is persecuting the existing ones, ”said Zaza Mamulaishvili.

Mariam Morgoshia

Posted by Looed on the 16th May :-

News Round-Up
"MP Kobakhidze: Polarization of Georgian politics conditioned by the presence of criminals into politics" -https://1tv.ge/en/news/mp-kobakhidze-polarization-of-georgian-politics-is-conditioned-by-the-presence-of-criminals-into-politics/

"Georgian Dream, Opposition on President’s Decision to Pardon Ugulava, Okruashvili"
- https://civil.ge/archives/352086

"Why I’m optimistic Georgia’s reforms can change Ukraine"
- https://www.atlanticcouncil.org/blogs/ukrainealert/why-im-optimistic-georgias-reforms-can-change-ukraine/

"The Presidency of the Council of Europe of Georgia Received a High Assessment"
- https://www.georgianjournal.ge/politics/36583-the-presidency-of-the-council-of-europe-of-georgia-received-a-high-assessment.html?rnd=1589541130.5003"MP Kobakhidze: Polarization of Georgian politics conditioned by the presence of criminals into politics" -https://1tv.ge/en/news/mp-kobakhidze-polarization-of-georgian-politics-is-conditioned-by-the-presence-of-criminals-into-politics/

"Georgian Dream, Opposition on President’s Decision to Pardon Ugulava, Okruashvili"
- https://civil.ge/archives/352086

"Why I’m optimistic Georgia’s reforms can change Ukraine"
- https://www.atlanticcouncil.org/blogs/ukrainealert/why-im-optimistic-georgias-reforms-can-change-ukraine/

"The Presidency of the Council of Europe of Georgia Received a High Assessment"
- https://www.georgianjournal.ge/politics/36583-the-presidency-of-the-council-of-europe-of-georgia-received-a-high-assessment.html?rnd=1589541130.5003

Mumblings from Moldova / Urges from Ukraine
"Chicu Risks Losing his Majority in Moldovan Parliament"
- https://balkaninsight.com/2020/05/15/chicu-risks-losing-his-majority-in-moldovan-parliament/

"Moldova: The consequences of failed Russian credit. What next?"
- https://neweasterneurope.eu/2020/05/15/moldova-the-consequences-of-failed-russian-credit-what-next/

"Ukraine hopes that its strategic focus on EU and NATO membership will be reflected in the final document of the forthcoming Eastern Partnership summit."
- https://www.ukrinform.net/rubric-polytics/3025830-prystaiko-we-expect-eu-to-review-approaches-towards-cooperation-with-ukraine-georgia-moldova.html

Posted by Looed on the 16th May :-

Attempt to Salvage the elections
TBILISI -- Georgia’s president says she has pardoned two jailed opposition leaders -- a former Tbilisi mayor and an ex-defense minister -- in a bid to salvage a foreign-brokered deal between the opposition and the ruling party on election reforms.
President Salome Zurabishvili made the announcement late on May 15, a day after opposition parties threatened to abandon the agreement if "political prisoners" were not released.
The sides have failed to move forward since the deal was inked on May 8, triggering what Zurabishvili called a “political crisis” that threatened the “democratic and European future” of the South Caucasus nation.
Georgia’s opposition parties also vowed to boycott parliamentary sessions until several jailed politicians who they say have been convicted on politically motivated charges are freed.
They claim the release was a condition of the May 8 deal, which the governing Georgian Dream party denies.
The two pardoned politicians are Gigi Ugulava, a former mayor of Tbilisi and leader of European Georgia-Movement for Freedom, and former Defense Minister Irakli Okruashvili, who leads the Victorious Georgia party.
Describing the two as “odious figures,” Zurabishvili insisted she was not pardoning political prisoners.
“I declare with full responsibility that today there are no political prisoners in Georgia,” the president said.
Ugulava, who helped organize anti-government protests in summer 2019, was sentenced earlier this year to 3 years and 2 months on charges of misusing public funds. It was his second conviction on similar charges.
Okruashvili was sentenced to 5 years in prison after being found guilty of organizing and taking part in the violence that marred the rallies, which lasted for weeks.
Opposition parties insisted that Georgia's electoral system unfairly favored Georgian Dream, and demanded it be changed to a proportional system ahead of parliamentary elections set for October this year.
Under the March 8 memorandum of understanding facilitated by U.S. and EU officials, parliament should consist of 120 members elected through a proportional voting system, while 30 members would be elected through a majority system.
The electoral threshold for proportional elections will be set at 1 percent and a capping mechanism will mean that no single party receiving less than 40 percent of the votes cast will be allowed to hold a majority of seats in parliament.
Under the current electoral system, 73 of 150 parliamentary seats are claimed by candidates who finish first in district races. The remaining seats are distributed proportionally to the national share of the vote that a party wins.
This led to Georgian Dream, led by billionaire founder Bidzina Ivanishvili, winning 76 percent of the legislature's seats even though it won just less than half of the popular vote.
Source - https://uazmi.com/news/post/hEeIQwmGCCpuSjwziRGh58

Posted by Looed on the 16th May :-

Article - "U.S. lawmakers urge administration to protect US business and assess Ivanishvili's ties w
I am posting this one as its from Voice Of America (Georgian site) and has a slightly different take - ie "call for public briefing"

"Republican senators and congressmen have called on Secretary of State Mike Pompeo and Treasury Secretary Steve Mnuchin to hold a public briefing on the harassment of American businesses in Georgia. The letter, which was sent to the administration, was signed by members of the Senate Foreign Relations Committee, Ted Cruz and John Cornin, and Congressmen Judy Arrington and Marquine Malin.

The letter, released by Senator Ted Cruz on May 15, said the authors were concerned about governance problems in Georgia, particularly with "America's rivals and enemies, including Georgia's illegal financial ties with Iran," which threatens US national security and business interests.

The letter said that foreign direct investment in Georgia had fallen by about 50% over the past year and that taxes and bureaucratic barriers had increased for Western businesses, including those for American businesses.

U.S. lawmakers say the American company Frontera has become a target of restrictions and regulations by the Georgian government, which is now threatening to expel the company from the country. The letter also mentions "Conti Group", which participated in the construction of a deep-water port in Anaklia. Construction of the port has been suspended at this stage, and Conti Group has abandoned the project.

"This has made it difficult for American companies to prevent the deepening of Georgian-American relations. Frontera Resources is a Texas-based company that is the largest US investor in Georgia's oil and gas sector. They have invested more than $ 500 million to discover oil and gas resources. Frontera has recently been subject to regulations and restrictions, and the Georgian government is potentially threatening to expel him from the country.

"In 2019, another American company, Conti Group, faced the same problem with the port of Anaklia, which led to the delay of the project. These delays and complications are directly related to geopolitical interests, "the letter reads.

Frontera, a company based in the state of Senator Ted Cruz, first invested in Georgia in 1997. In 2019, the State Oil and Gas Agency of Georgia terminated the contract with the company after the decision of the Arbitration Tribunal. The Georgian side stated that according to the decision of the arbitration, the company violated the contract, which gives the state the right to terminate the contract.

The letter also talks about Georgia's avoidance of sanctions against Iran. "Georgian businesses and the financial system have been bypassing US sanctions on Iran for years (since 2013). Recently, the port of Batumi was once again observed in illegal trade with Iran, ”lawmakers said."

Posted by Looed on the 16th May :-

Pt.2

"Moreover, in parallel with the expulsion of legitimate businesses, illegal commercial activities have taken place. Georgian businesses and the Georgian financial system have had a bad reputation among US sanctions officials for years, as they have been a sideline for US sanctions on Iran since 2013, when our government learned that three Iranian businessmen in Tbilisi were small. The Nco Institute was taken over and used to transfer money, as well as for other types of activities that involved exchanging money, including businesses and airlines along the Black Sea coast. The combination of the country's western orientation and many ports in the country makes Georgia an ideal target for Iranians. Indeed, recent reports suggest that the port in Batumi has again become a target for Iranian oil-related illegal activities.

We declare that:

The current government of Georgia - led by the Georgian Dream party - is engaged in the expulsion of American, legitimate businesses that have invested in Georgia's economy and future;

Every such action is motivated by geopolitical goals, including, as we have been told, Bidzina Ivanishvili, the chairman of the Georgian Dream party, and the Russian government;

Actions related to Georgia's Black Sea ports jeopardize critical security interests in the United States, including:

1. Deliberate expulsion of American companies from port construction aimed at reducing Georgia's dependence on Russia;

2. Deficiency of the mechanism of coercion of American sanctions against Iran, especially in relation to port activities.
Georgia is a strategic partner in the Caucasus and aspires to join NATO. From a military point of view, Georgians have taken resources for our mission in Afghanistan. The country geographically offers a critically important route for trade and energy from the Caspian Sea to Eastern Europe. Reliable US-Georgia cooperation is a necessity for American interests, which in turn requires Georgia to return to good governance.

Confused geostrategic and business interests require a clear response from the federal government, as always we are ready to provide you with the resources needed to support and protect US national security, ”the joint letter from senators and congressmen reads."

Source - https://publika.ge/ted-kruzis-werili-pompeos-romelshic-bidzina-ivanishvilis-rusettan-kavshirzea-saubari/

Posted by Looed on the 16th May :-

Article - "Letter from the senators - we are concerned about Georgia's connection with America's ene
Pt.1

"U.S. senators and congressmen have written to US Secretary of State Mike Pompeo and Secretary of the Treasury Department Stephen Mnunich discussing the Georgian government's crackdown on American businesses.

The letter emphasizes that the Georgian government is interested in expelling American businesses for geopolitical purposes. The authors of the letter also talk about Bidzina Ivanishvili, the chairman of the Georgian Dream party, in connection with the Russian government, as one of the motivators of the Georgian government's actions.

Senators and congressmen have expressed concern over Georgia's ties with US enemies, which they say are contrary to US strategic goals.

The letter was signed by Senators Ted Cruz and John Cornin, as well as Congressmen Jody Arrington and Marquine Mullin.

See full letter:

"We are writing to express our concern about the deterioration of good governance in Georgia and the alleged illegal financial activities. We are particularly concerned about Georgia's connection to America's fierce opponents and enemies at the expense of our strategic interests and business interests.

Foreign direct investment in Georgia has fallen by almost 50% in recent years, while taxes and bureaucratic hurdles have risen for Western businessmen.

The problems of good governance have directly prevented American companies from doing business in Georgia and deepening cooperation with the country. Texas-based Frontera Resources is the largest US investor in Georgia's gas and oil development sector. They invested $ 500 million in oil and gas exploration. Extremely restrictive regulations have been imposed on Frontera recently, and now the company is threatened with expropriation by the Georgian government. In 2019, another American company, Conti Group, was expelled from the Anaklia Port Construction Consortium in exactly the same way, as a result of which the project was suspended.

These complications and disputes are significantly exacerbated by geopolitical implications. Frontera's energy-intensive activities were aimed at making Georgia stable and energy independent. The project to build a port in Anaklia was aimed at reducing Georgia's dependence on Russia's port infrastructure."

Posted by Looed on the 16th May :-

Article - "Four U.S. Lawmakers Accuse Georgian Dream, Ivanishvili of “Ties to American Hostile Rival
Lots in a similar vein around today - Pt.1

U.S. senators and congressmen have sent a letter to Secretary of State Mike Pompeo and Secretary of the Treasury Stephen Mnuchin over the harassment of American companies and businesses in Georgia.

The authors of the letter are Senators Ted Cruz and John Cornin, as well as Congressmen Jody Arrington and Marquine Malin.

Dear Secretaries, Pompeo and Mnuchin,

We would like to express our concern over the disruption of governance in Georgia and the potentially illegal economic activities. In particular, we are concerned about Georgia's ties with America's enemies, which run counter to our business and strategic interests.

Foreign direct investment in Georgia fell by about 50% last year, while taxes and bureaucratic barriers to Western business increased.

This made it difficult for American companies to operate and hindered the deepening of Georgian-American relations. Frontera Resources is a Texas-based company that is the largest US investor in Georgia's oil and gas sector. They have invested more than $ 500 million to discover oil and gas resources. Frontera has recently been subject to regulations and restrictions, and the Georgian government is potentially threatening to expel him from the country.

In 2019, another American company, Conti Group, faced the same problem with the port of Anaklia, which led to the delay of the project. These delays and complications are directly related to geopolitical interests.

Frontera's activities were aimed at making Georgia an energy independent, and the port of Anaklia would reduce Georgia's dependence on Russia.

In short, the legal business was pushed to expel him, and his place was taken by illegal trade.

Georgian businesses and the financial system have been pushing for US sanctions on Iran for years (since 2013). Recently, the port of Batumi was once again observed in illegal trade with Iran.

We declare that:

• The current government of Georgia is wildly dreaming of expelling American businesses that are investing in Georgia's economy and future;

• Such activities are motivated by geopolitical goals and indicate Bidzina Ivanishvili's possible connections with the Russian government;

• The expulsion of American companies from the port project is aimed at reducing Russia's influence on the ongoing processes in Georgia;

• There are gaps in the implementation of US sanctions, specifically in the context of ports.

Georgia is our strategic partner in the Caucasus and an important ally of NATO. From a military point of view, Georgians are helping us in the mission in Afghanistan. Geographically, the country is at a critical juncture in trade from the Caspian Sea to Eastern Europe. Georgian-American relations are important for the United States, which in turn obliges Georgia to cooperate

Posted by Blownitalready on the 14th May :-

Moldova translated
Georgia terminated the contract with Frontera Resources. What will Moldova do?

The Oil and Gas Corporation and the State Oil and Gas Agency of Georgia broke the contract with the American company Frontera Resources International LLC.
It should be noted that in this case we are talking about a company with which the Democratic government in 2017 concluded a concession agreement for a period of 50 years for the right to explore oil and gas fields in Moldova. The Georgian authorities filed a lawsuit against the concessionaire in an international arbitration court. One of the demands put forward by the Georgian side was the return of territory that Frontera does not use for oil exploration and production (99%). The company was also required to pay corporations a natural resource charge and legal fees.

What is this information for? Everything is simple - the American investor, thoroughly caressed and advertised by the previous government, has not yet begun to fulfill the obligations undertaken with respect to Moldova. More than three years have passed since the signing of the agreement, and no American investments were received in the republic - the “partners” did not even think to start any work in this area and begin exploration.
In July last year, the government, led by Maya Sandu, decided to suspend the concession agreement, signed with the American company Frontera Resources International LLC. However, the whole principle of the AKUM bloc was exhausted on this, no further action was taken. Apparently, in the light of the new “priorities”, the so-called right-wing opposition pushed the solution to this problem into the background so that, God forbid, not cross the path to our “Western partners,” since only the Russian Credit Agreement can be criticized and disassembled by commas. "This leg, the one who needs a leg!".

The agreement with Frontera Resources states that the concessionaire receives the exclusive right to geological exploration of hydrocarbons in Moldova with the subsequent exploitation of the deposits, and the conditions for the extraction of minerals, if discovered, will be stipulated in a separate contract signed by the parties. The concession period is 50 years, of which five years the company can engage in exploration of deposits, and then 45 years of their development. The area on which Frontera Resources is allowed to conduct subsurface exploration is 12 thousand square meters. km, we are talking about the south of Moldova. The contract stipulates that the study will determine the amount of minerals that will go to the balance of the state, after which the government will develop the conditions for their extraction. Environmental requirements are also specified.

Posted by Moleinahole on the 13th May :-

RE: New Frontera statement ?
A bold maybe desperate move?
The gloves are off when that kind of statement emanates from the US govt rather than FRR to my mind. But public conflict like this helps Russia so there is room for some hope that wiser heads could be talking behind closed doors. If that was the case however you would think FRR would say nothing.
But have we seen anything official from the US side on this saga yet?
We will soon find out whether Frontera have burned all their political goodwill or still have friends in the right places.
Ratcheting up the rhetoric will only work if behind you is someone with a large stick to back up your rhetoric with meaningful action.
If the GG think they have a strong hand hey will just sit this out with the arbitration ruling in their pocket. The fact FRR are making the noise might make for good media entertainment but plays into the politics and in itself will not result in resolution.
So what are the ways out here?
1. GG take the license and FRR lose.
2. GG relent and/or leave FRR with 1%. FRR then need to secure funding or a partner to resolve debts and fund development.
3. As 2 but FRR have already got a deal in principle to develop.
4. As 2 but FRR get the 1% but then lose it anyway to FTI liquidating assets to pay Outrider.

I think unless there is a back ground deal in principle then people need to be realistic here as we are in the frying pan at the moment and most ways out of here involve giving away shares of whatever we might be left with. Which option you think is most likely may depend on whether you are an optimist or a pessimist.

Posted by R8pilot on the 13th May :-

Commersant / Kommersant is Russian for businessman. Is this an official FRR statement or more media BS trying to divide the two as all the info in the article has been previously used?!

Posted by Contra on the 13th May :-

I think that the desperation is more to do with "Georgia Dream" (that's a misnomer if ever there was one). With an October election looming they are running out of time to monetise their corruption for if they lose all they have to look forward to is no more power, no more influence and a real prospect of criminal action against some of them.
The main reason for SN handing over to Zaza must have been that a Georgian would be the wise choice to fight Frontera's corner rather than an American. Who now can doubt that all the silence we have experienced has been absolutely necessary. The fight that has and still is going on and largely hidden from us has been as dirty as can be.
All we can hope and believe (I do) is that we will win this battle. It all sounds very melodramatic but we are now down to the final battle which is there for the winning.

Latest Share Chat

Member Info for Madpunter

Followers

Following

Posts (Last 30 Days)

Posts (All Time)

Last Post

Member Since

Share Chat Post Distribution (Last 30 Days)

Activity Log (Last 30 Days)

Latest Share Chat

Member Info for Madpunter

Followers

Following

Posts (Last 30 Days)

Posts (All Time)

Last Post

Member Since

Share Chat Post Distribution (Last 30 Days)

Activity Log (Last 30 Days)

Please enter at least 2 characters

No results found

Search results

Recently viewed

Trending