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Posted by Contra on the 6th Mar :-

RE: Article in Daily Telegraph
Despite constant Russian provocation and aggression (Russian troops continue to illegally occupy over 20% of Georgia’s territory today following the brief war in 2008), the current Georgian government has built a miracle. GNI per capita is the highest in the region, it has a free, vibrant multi-party democracy (the electoral system is mixed, like the Scottish Parliament system), it is by far the “Most Free” country in the region according to Freedom House’s annual research (it scores more than double Turkey’s score on Freedom metrics), and perhaps most impressively the country sits in a lofty 7th place globally in the World Bank’s “Doing Business” rankings - better than the UK and Australia, and above 26 of the 27 EU Member States.

The country has achieved this with policies that prioritise a competitive economy, commitment to free markets and investment, and low tax and regulatory burdens. Special Economic Zones have been touted in Georgia, just as they have in post-Brexit Britain, with a similar goal. BP is one of several UK firms that has benefited from the open Georgian economy: it has operated in the country since the mid-90s, building the South Caucasus Pipeline and operating in the Southern Gas Corridor, the key East-West transit route that traverses Georgia.

A key difference of course, is that while the UK archipelago has the good fortune to be peaceful and far removed from aggressive autocracies, Georgia sits in one of the most volatile and over-militarised regions in the world. The Georgian Dream government has recognized that unfortunate reality, and their lowering of tensions with Moscow has not only allowed Georgia’s economic miracle to continue, but has brought stability to a region that otherwise could become a flashpoint of East-West tensions, as it has been in the past.

The Department for International Trade has already signed a trade continuity and strategic cooperation agreement, ensuring that UK-Georgian ties will not be disrupted post-Brexit: but we can and should do more. Ongoing Russian aggression must be met with resolve and support for the pro-Western government in Tbilisi. This is not theoretical: US and UK security and intelligence services recently revealed the existence of a massive Russian cyberattack focused on Georgia. Tbilisi’s goal of condemning aggression without being unnecessarily provocative is a difficult needle to thread and they deserve public political support as well as the kind of security support that revealed the existence of the cyberattack.

The world outside the EU is imperfect, but ‘Global Britain’ should be about strategic engagement with the world as we find it. It should mean a hard-headed recognition of strategic partner governments and then a commitment to support them. Georgia is the clear answer in the south Caucuses region.

Posted by DomFok on the 6th Mar :-

Beka Natsvlishvili - Government of Georgia "fired" 86 employees of Frontera
The Georgian government has "dumped" 86 employees of the Frontera company, Beka Natsvlishvili, an independent lawmaker, said.
According to him, the government had a notice of environmental action against the company, which was the basis for a legal dispute that allowed the oil and gas company, as a 50 per cent shareholder, to enter management and solve employee problems, though the Georgian government did not take the step. he went.
"They obey the letters and remarks of several senators in exchange for no more severe criticism of the electoral system by senators and congressmen. They exchanged the fate of their 86 citizens for a more comfortable environment for the electoral system. They had filed a lawsuit alleging that the company would be dealing with an oil and gas company, not Frontera's management.
As an owner of a 50 percent stake in the oil and gas company, it would be possible to enter temporary management, purchase oil and pay employees accordingly. But they chose a different path, staffing them and creating a better environment for the electoral system. It is the colonial attitudes and consciousness of our government and, unfortunately, the whole political spectrum that cannot move us forward.
I appeal to the Government to ensure that all employees at Frontera keep their jobs because their fate is unclear because they are on strike and the Frontera management has dismissed them. It is not guaranteed that they will be reinstated.
These people have not been paid for 14 months, have bank debts, their families are living with relatives because of the cold, and the government is silent about it. The government should start compensating for their salaries and providing them with the basic financial means needed to meet the basic needs of their families, " Beka Natsvlishvili said

https://www.interpressnews.ge/ka/article/588487-beka-nacvlishvili-sakartvelos-mtavrobam-kompania-pronteras-86-tanamshromeli-gadaagdo

Posted by Looed on the 5th Mar :-

Pt.3
"Hostility to American Investments" - such a language reflects the sentiment of Americans about the current situation in Georgia. I think there will be some communication because a lot of people are ready to contribute to improving that relationship and creating better investment opportunities for American business.
-Distributed information about Frontera's 11-month debt to employees. Protests also took place, what is the situation in this regard now and how would you rate the stir?
-Frottera has never had debt with anyone in Georgia for 24 years. When we talk about harassment by the government, this is part of this strategy. High-level officials are constantly harassing our former employees, and it is precisely because of these people that this 11-month debt has been created. There were emotional speeches, they even came to our office. This is a man-made situation whose sole purpose is to discredit the business and name of the company. It all started years ago, not just in Georgia. Georgian authorities have sought to tarnish the image of the company in Washington, Moldova and other countries. Unfortunately, many officials have played a negative role and still do. Such rallies are being organized, they have lobbyists, Georgian embassies in different countries are spreading the word that we are not a trusted company.

-Are you going to communicate more with the public?
- We are going to actively communicate with the public. We want people to understand how rich this country is and how much of its economic strength it will benefit from the multibillion-dollar plan and process we are currently working on. We want to contribute to creating a better investment environment in the country, not as it is now. If this continues, it will take even worse forms.

There are two links and both a a pic of Zaza

- https://www.facebook.com/permalink.php?id=266662557104&story_fbid=10156568421987105

- https://commersant.ge/ge/post/frontera-resources-mtavrobis-gadawyvetileba-qveyanashi-momushave-umsxvilesi-kerdzo-amerikeli-investoristvis-arbitrajshi-echivla-siurprizi-iyo?fbclid=IwAR3T9DPp7cBttKwbJRyEYuryU9siaqDLC6MV7ozdyjnMudFVciEDVLt5SOw

Posted by Looed on the 5th Mar :-

Pt.2
In such a situation, when the process is complicated, the terms of the contract are not fulfilled, the rights of the company are neglected, further investment is very difficult.
-What about the dispute between
Frontera on international arbitration, at what stage is this dispute? Do you think you can continue negotiations with the government?

- 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.
However, we are ready to continue the negotiations, but I do not hope that there is such interest on the other side that this dispute is resolved. - Do you have any expectations or do you suppose that the US government will receive another letter on this case?
- I do not rule out and think that there will be such communication from the US. Too many people in the US political and business circles are really concerned about this. For years, the perception that Georgia is a strategic partner of the United States has not really reflected a friendly attitude towards American investment.

Posted by Looed on the 5th Mar :-

Zaza interview
Pt.1
In recent critical messages from the United States, the name of the company Frontera has twice been voiced. First Republican Congressman Markuin Malin wrote a letter to George Gakharia, speaking of a decline in FDI in Georgia. He cited the oil and gas company Frontera, for example, as one of the victims of the Georgian government's harassment. Later, while addressing the US House of Representatives, Congressman Pete Olson criticized Bidzina Ivanishvili and also cited a company called Frontera, Texas, which has a dispute with the Georgian Oil and Gas Corporation and is unable to function.

Given the current situation, Kommersant offers an exclusive interview with Zaza Mamulaishvili, Director of the American Oil and Gas Company in Georgia:

- In a letter sent by the US Congress to the Georgian government, the Republican Congressman expresses his concern over the country's deteriorating democratic values ??and economic deterioration. One example of business harassment is cited by the company Frontera Resources, with which Georgia currently sits in international arbitration. How would you assess the strategic partner's attitude towards Georgia's investment environment and how do you view Georgia's investment climate? Is there any pressure on business and American companies in Georgia today?

-Unfortunately, the investment environment is not really good and one of the evidences is that FDI in Georgia has been reduced twice in the last two years. Subtracting these reduced investments from offshore, such as Panama, would appear to minimize the amount of foreign investment. In this respect, American investment is probably the first in a series of widespread harassment in recent years. Our investment, which exceeds half a billion US dollars, is one striking example of this. That is the reason for the concerns expressed by US congressmen about the harassment of American companies.

-What kind of harassment are you talking about?

- Frontera Resources has discovered a large supply of both natural gas and oil in Georgia. In the process, when we started extracting natural gas, under the contract, we had the right to build a gas pipeline and order a gas pipeline to deliver the gas we had obtained to our customers.

Although authorized by the treaty, the Ministry of Energy and the relevant authorities refused to build the pipeline. The company tried at every level in the government to reach a decision, but nothing happened until congressional intervention again and the government refused to grant it permission. .
We built a gas pipeline, and the government refused to give us the license we needed to transport the gas we had obtained in that pipeline. Communication was re-introduced from Congress again and then given us a license.

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