Kazakhstan may require the return of investments from Georgia for "KazTransGas-Tbilisi"

Almaty. October 5. Silkroadnews - The JSC "KazTransGas" (CTG) believe that the actions of the competent authorities of Georgia, who do not intend to return the company "KazTransGas-Tbilisi" under the control of the Kazakh company, violate the rights of foreign investors, which are set by national legislation of Georgia and international agreements on protection of investments, reported the press service of the KTG.
As explained, KTG initiates before arbitration settlement with Georgia to the return the investments in the company "KazTransGas-Tbilisi".
KTG looks forward to a constructive position of the Georgian side and the early settlement of the dispute within "before arbitration" procedures - reported in the national company.
So, on September 21, 2015 an international law firm Baker & McKenzie on behalf of KTG sent to the Georgian side "before arbitration" letter with a proposal to start negotiations on the settlement of investment disputes arising in connection with investments of JSC "KazTransGas" in the activities of "KazTransGas-Tbilisi".
The press service of the company recalled that the company "KazTransGas-Tbilisi" was created by JSC "KazTransGas" in 2006 pursuant to a memorandum signed between the KTG and the Ministry of Economic Development of Georgia on December 26, 2005, to implement the activities in gas supply of the Georgian capital and its surrounding areas. During 2006-2009, JSC "KazTransGas" in total invested in the development of "KazTransGas-Tbilisi" and the gas supply system of Tbilisi about $130 million.
However, despite the 100% ownership stakes in the company "KazTransGas-Tbilisi", from March 16, 2009 the Kutaisi City Court satisfied the request of the national regulatory commission of Georgia for Energy and Water regarding on the approval of a special control over the company "KazTransGas-Tbilisi" .
As a result, JSC "KazTransGas" is unable to participate in the activities of its subsidiary.
If before arbitration settlement will not lead to resolution of the dispute, "KazTransGas" will start the investment arbitration in accordance with the provisions of the Energy Charter Treaty from 17 December 1994 and the Agreement between the Government of the Republic of Kazakhstan and the Government of Georgia on encouragement and mutual protection of investments from September 17, 1996, and will demand the return of control over the company "KazTransGas-Tbilisi" and compensation not less than the amount of investment.