KazTransGas to request Georgia to return control over LLC KazTransGas-Tbilisi
"The Georgian side was sent a trigger letter with a proposition to start negotiations on regulation of the investment dispute arisen from KTG's investment in LLC KazTransGas - Tbilisi", a press release reads. As reported earlier, LLC KazTransGas - Tbilisi was established by KTG in 2006 in pursuance of the memorandum signed by KTG and Georgian Economic Development Ministry on 26 December 2005 on supplying gas to Tbilisi and adjusting regions. During the period from 2006 through 2009 KTG had invested approximately 130 mln U.S. dollars in development of LLC KazTransGas - Tbilisi and in gasification system of the Georgian capital city. Despite KTG's 100% ownership of LLC KazTransGas-Tbilisi shares, the municipal court of Kutaisi satisfied a motion of the Georgian National Energy and Water Supply Regulatory Commission (GNERC) to appoint a special managing administrator over LLC KazTransGas - Tbilisi. As a result, KTG has been deprived of his rights to partake in business operations of its own daughter company. KTG believes that such actions taken by the Georgian authorities infringe on their rights as a foreign investor fixed in national legislation of Georgia and international investment protection agreements. KTG hopes for constructive position of the Georgian side and soonest regulation of the dispute within the pre-arbitral procedures. In case if pre-arbitral regulation fails, JSC KazTransGas will launch investment arbitral proceedings as per the provisions of the Energy Charter Treaty dated 17 December 1994 and the Agreement between the Government of the Republic of Kazakhstan and the Government of Georgia on mutual protection of investments dated 17 September 1996 and other international agreements as well as the national legislation of Georgia. The Kazakh side will request Georgia to return its control over LLC KazTransGas-Tbilisi and reimburse the damages equaling the amount of KTG's investment in the project.
