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KMG expects opening of rules of doing business in Georgia

Oil&Gas Materials 8 October 2010 10:45 (UTC +04:00)
The Kazakh Company KazMunaiGas (KMG) opening of rules of doing business in Georgia, KMG CEO Kairgeldy Kabyldin said.

Kazakhstan, Astana, Oct. 8 / Trend S.Suleymanov /

The Kazakh Company KazMunaiGas (KMG) opening of rules of doing business in Georgia, KMG CEO Kairgeldy Kabyldin said.

"We want to have transparent and open rules of the game in Georgia and in accordance with this, we want to run our business here and see that it is effective and acceptable," Kabyldin said.

The Kazakh side is still negotiating on the controversial financial situation around KazTransGas - Tbilisi ", he said.

"We are now considering the issues of arbitration over the Georgian side's actions," he said.

He recalled that KazTransGas-Tbilisi is a subsidiary of the KazTransGas with one hundred percent equity interest in the founding capital and that the Kazakh Company has invested $ 100 million in this project. However, two years ago the sides have contentious issues over collection of payment from consumers and the cost of purchased gas for the company.

"This asset is under external control since 2008 and this is due to the fact that the Georgian government has violated those investment commitments that were negotiated when we acquired the asset," Kabyldin said.

Kabyldin said The Kazakh and Georgian energy ministers met in early 2010. The sides agreed that KMG will continue to invest in gas distribution station in Tbilisi only if " we are offered appropriate business environment".

"Unfortunately, the Georgian side has not confirmed the continuity of the economic model, which we submitted to them, thus the negotiations are underway," he stressed.

"Regarding the social projects and the Batumi Kabuletti health center, then we see them in one package with KazTransGas - Tbilisi. Again, we want an open playing field and doing business," he concluded.

Eighteen months ago, Georgian President Mikheil Saakashvili has criticized the progress of construction of the nursing home in the resort town Likani by the Kazakh investors.

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