Kazakh gas transportation company to regain control of its subsidiary in Georgia
Astana, Kazakhstan, Nov. 14
By Daniar Mukhtarov - Trend:
Kazakhstan's gas transportation company, KazTransGas, will get back control over its subsidiary in Georgia, the KazTransGas-Tbilisi LLC.
This decision was made following talks between the prime ministers of Kazakhstan and Georgia, Karim Massimov and Irakli Garibashvili in Kazakhstan's capital Astana, according to KazTransGas press service.
Earlier in 2009, a special manager was appointed to the KazTransGas-Tbilisi, under a decision of a court in the Georgian city of Kutaisi on the initiative of Georgian Oil and Gas Corporation. The measure was taken due to KazTransGas-Tbilisi's 80 million GEL debt (about $45 million as of Nov. 14).
Previously, a settlement agreement was signed between KazTransGas and Bank of Georgia in Tbilisi.
Under the agreement, KazTransGas-Tbilisi's $10 million debt was written off on penalties and interest rates.
Another important step towards the settlement of disputable issues has been an agreement to restructure KazTransGas-Tbilisi's $34 million debt to the Georgian Finance Ministry.
"Kazakhstan's national gas and gas supply operator, KazTransGas, believes that the agreements show the common interest of the parties in further development of constructive partnership, and pave way for realization of strategic business direction in Georgia's gas sector," KazTransGas press service said.
A memorandum on investment activities in Georgia was signed in Tbilisi, Dec. 26, 2005, between KazTransGas and Georgia's Economic Development Ministry.
In order to realize the memorandum the KazTransGas created March 2, 2006 the KazTransGas-Tbilisi with a 100-percent equity interest in the authorized capital, registered in Georgia.
KazTransGas-Tbilisi acquired gas transportation assets owned by the company Tbilgazi at a price of $12.5 million.
The total length of the gas distribution system of Tbilisi is over 2,400 kilometers.
KazTransGas-Tbilisi renders services to over 300,000 gas users, including 4,900 facilities of domestic purpose, as well as 500 large industrial enterprises.
Edited by SI