Azerbaijan, Baku, Aug. 21 / Trend , E.Ismayilov/
Georgia's withdrawal from the Commonwealth of Independent States (CIS) will not affect the activity of the State Oil Company of Azerbaijan Republic (SOCAR) in the country, a source in the oil and gas market said on Aug. 21.
"Azerbaijan and Georgia are linked by strategic bilateral relations, and so Georgia's withdrawal from the CIS will have no impact on SOCAR's activities in this country," said the source.
The SOCAR is a major gas supplier in Georgia's domestic market and owns a network of filling stations, as well as selling Azerbaijani oil to Georgia. Moreover, the two major export pipelines, the Baku-Tbilisi-Ceyhan and the Baku-Tbilisi-Erzurum, which transport Azerbaijani oil and gas from the offshore Azeri-Chirag-Guneshli and Shah Deniz fields, pass through Georgian territory. Azerbaijan is developing these fields together with foreign companies.
SOCAR Energy Georgia deals with the distribution and marketing of oil and oil products on the market in Georgia. Co-founders of SOCAR Georgia include SOCAR - 51 percent, Petro-Trans FZCO - 32.7 percent and Ivan Chkhartishvili - 16.3 percent.
SOCAR also is an owner of the Kulevi oil terminal on the Black Sea coast of Georgia.
Azerbaijan and Georgia are also actively cooperating in the transport sector, where the Baku-Tbilisi-Kars railway project is being implemented. The construction of the Georgian section of the railway is being carried out with a 25-year loan worth $200 million issued by the State Oil Fund of Azerbaijan (SOFAZ) with a one percent interest rate.
Georgia decided to quit the CIS after the war in South Ossetia in August 2008. Georgia's formal leaving-taking from the organization lasted 12 months according to the CIS charter and from Aug. 18 Georgia has not been a member of the CIS charter. From this date it may continue participation in 75 treaties adopted within the Commonwealth, but may not continue in 400.
Do you have any feedback? Contact our journalist at: [email protected]