Loan Larization Scheme to Launch on September 17
A single-use scheme for loan larization (de-dollarization of national currency), which has been developed by the Georgian Government in cooperation with the National Bank, will be launched on January 17, 2017, while the details of this plan will be approved by the Government at today's meeting.
Georgia's Prime Minister Giorgi Kvirikashvili instructed the Minister of Finances to provide a detailed explanation of this process and relevant procedures after today's meeting of the Government, to provide answers to all possible questions that may arise.
"This is the right process seeking gradually to decrease the dependence of our population and the financial sector on the dollar, and we believe that this project will prove a success," the Prime Minister stated.
On Prime Minister’s decision, Georgian Government to make European Commission’s questionnaire public
The European Commission's questionnaire, designed to form an opinion on Georgia's bid to EU membership, will be made public by the Georgian Government. This decision was made at today's meeting of the Government Commission on EU Integration of Georgia, chaired by Prime Minister Irakli Garibashvili.
The first part of the special EU membership questionnaire was handed over to Georgia on April 11, in Luxemburg. Based on this questionnaire, the European Commission will develop a document known as the Opinion on granting candidate country status.
The questionnaire consists of political and economic sections. In near future, Georgia will receive the second part comprising sectorial topics and compatibility with EU legislation by sector.
PARLIAMENT ADOPTING RESOLUTION ON POSSIBLE MILITARY ESCALATION IN UKRAINE
At Today’s Plenary Session, the Parliament adopted the Resolution on Possible Military Escalation in Ukraine with 74 votes.
The document developed by the members of the Parliamentary Majority Giorgi Khelashvili, Maka Botchorishvili, Levan Karumidze, Givi Mikanadze and Tamar Taliashvili was introduced to the MPs by the First Deputy Chairman of the Foreign Relations Committee Giorgi Khelashvili.
The Parliament, according to the resolution, expresses grave concern about a possible military escalation in Ukraine and condemns any intention directed against a sovereign state and its territorial integrity, which poses a new threat not only to Ukraine but also to regional peace and security.
The resolution further notes that the Georgian Parliament urges on the Georgian government to continue its contribution to the prevention of war in Ukraine by using diplomatic instruments and working closely with strategic partners.
The majority of the opposition, according to Giorgi Khelashvili, is attempting to avoid supporting important state resolutions by providing an excuse rather than a cause.
According to him, the same thing happened to the constitutional record that backed Georgia's integration into the European Union and the Euro-Atlantic area, such as the Parliamentary resolution on foreign policy that referred to Russia as Georgia's occupier, but the UNM refused to endorse it.
Giorgi Khelashvili once again addressed the opposition before the discussion and called for support for the document.
"The opposition, led by the United National Movement, is almost unanimously opposed to the resolution. This is disappointing, because it would be desirable for us to pass a resolution with the support of all political forces. We can boldly conclude that the aim of the opposition is not to participate in the development of real foreign policy, but only political manipulation. I call on other political parties and factions, if not the National Movement, to take a historical perspective and vote for this resolution, because years later, their signatures will not be found on this resolution”, - Giorgi Khelashvili said.
Most of the opposition MPs demanded from the initiators of the draft that the text of the resolution clearly state the Russian Federation, saying that the document would gain support only in this case and would not remain just a one-party document of the ruling team.
Administration of the Parliament of Georgia
Interim measures indicated concerning Georgia
The Court has decided to indicate interim measures in the case of Saakashvili v. Georgia and has asked the Georgian Government to provide it with information on the applicant’s state of health, to guarantee his safety in prison and to provide him with appropriate medical care.
The applicant, Mikheil Saakashvili, is the former President of Georgia. Having been convicted for a number of offences committed while in office, he is currently serving a prison sentence. The applicant claims he is a victim of ‘political persecution’ and has been on hunger strike for 41 days.
The country’s Interagency Development and Reform Council established to develop Georgia’s 10-year development plan, in line with Irakli Garibashvili’s initiative
On the Georgian Government's decision, the country's Interagency Development and Reform Council has been established to develop Georgia's 10-year development plan, in line with Prime Minister Irakli Garibashvili's initiative.
Designed to ensure effective response to the country's challenges, the Interagency Council will be chaired by the Head of Georgian Government.
The Development and Reform Council will consist of Ministers, MPs, and other officials. The Development and Reform Councilis authorized to create working groups and subgroups, and, if need be, invite representatives of other institutions, specialist and experts from relevant areas, and/or private sector actors.
The Development and Reform Council seeks to submit the country's 10-year development plan to the Government of Georgia no later than May 31, 2021.
The decree on the establishment of the Development and Reform Council has been signed by Prime Minister Irakli Garibashvili.
Press Service of the Government Administration
ANAKLIA DEVELOPMENT CONSORTIUM AND PRINCIPAL INTERNATIONAL INVESTOR FILE ARBITRATION CLAIMS AGAINST GEORGIA
Claims Seek Substantial Damages Caused by Government’s Campaign to Undermine Port Project
that would have created Economic Prosperity for Georgia
TBILISI, GEORGIA, 30 July, 2020 – The Anaklia Development Consortium (ADC) and Mr. Bob Meijer, one of its
principal investors, on 29 July filed separate arbitration claims against Georgia in relation to their rights in the
Anaklia Port Project. Together the two claims seek to recover the value of ADC's and Mr. Meijer’s rights in the
Project. The value of those rights is substantial, in excess of US$ 1.0 billion, representing ADC's and Mr. Meijer's
losses directly resulting from the Georgian Government’s campaign to undermine the Anaklia Port Project.
ADC was awarded the Anaklia Port Project in 2016. The Project (together with an associated Special Economic
Zone) is intended to make Georgia a strategic hub for regional trade between Asia and Europe, creating
thousands of jobs and generating substantial taxes and revenue for the government, and revitalize the Georgian
economy at a time when the nation most needs an economic boost. There is no other port facility or location
along the Black Sea in Georgia other than Anaklia that is capable of fulfilling the economic promise of a worldclass deep water port.
The Anaklia Development Consortium, which was established to develop the Anaklia Port Project, is comprised
of both Georgian and international investors. ADC is bringing its claim in the International Court of Arbitration
of the International Chamber of Commerce (ICC). Mr. Meijer, a prominent Dutch businessman with a long
record of successful investments in Georgia and worldwide, is bringing his claim in the International Centre for
Settlement of Investment Disputes (ICSID), under the Georgia-Netherlands Bilateral Investment Treaty.
Following a two-year campaign by the current Government and the ruling Georgian Dream Party to block ADC’s
efforts to succeed with the Project, in January 2020 the Government unlawfully terminated the agreement and,
in the process, caused ADC and it investors to lose the full sum of their investments, denying them future profits
and causing them to be damaged financially and reputationally.
Even though the Government had originally awarded ADC the sole right to develop the Project following a
competitive and transparent selection process, and even though it was understood that Government support
was necessary for the success of the Project in order to enable ADC to attract international investors and
financing, in fact the Government changed course and undertook an overt and covert campaign to ensure the
Project could never succeed.
Representatives of the Government on numerous occasions criticized the Project and its shareholders, publicly
and in private meetings, telling potential investors and lenders that the Government did not wish them to
Anaklia Development Consortium.
participate, and making clear to U.S. government officials that the Project did not have the support of the
Georgian government. This aggressive campaign against the Anaklia Port Project by the Government caused
great damage to ADC and its investors.
Among the illegal and unethical actions of the Government and the Georgian Dream party was the launching of
a baseless money laundering criminal investigation against Mamuka Khazaradze and Badri Japaridze, two
prominent and successful Georgia businessmen who are principal investors in the Project. The intention of the
slanderous allegations against Messrs. Khazaradze and Japaridze was to discourage any investors or lenders
from supporting the Project. Such support was necessary for the Project to proceed. Unfortunately the
Government’s campaign succeeded, insofar as investors and lenders withdrew their interest and declined to
participate in the Project without a clear statement of support by the Georgian Government. Both the Public
Defender of Georgia and Transparency International Georgia subsequently found that the charges against
Messrs. Khazaradze and Japaridze were without merit.
The following statement from ADC reflects the views of ADC and Mr. Meijer:
“The investors of the Anaklia Development Consortium continue to believe firmly that the Anaklia Port
Project and Special Economic Zone should be allowed to proceed, and that the Project will create
unequalled economic opportunity for Georgia. However, that success can only come with the active
support of the Government, and we remain committed to finding a way to get this Project back on track.
“In the meantime, ADC and its investors must protect their interests. While we have made every effort
to engage with the Government to explore possible solutions, we have been rebuffed at every step.
“In a patriotic gesture, ADC paused in its filing of these claims during the height of the Covid-19
pandemic, so as not to burden the Government with any distractions as it fought to protect Georgians.
“Regrettably, the Government is forcing this decision to commence arbitration, and the Government
must bear the responsibility for its consequences.
“The Government would have everyone believe that it terminated the investment agreement because
ADC failed to meet certain obligations under the contract. In reality, the Government deliberately acted
to ensure that ADC could not succeed with Project development. In this instance the Government abused
its power because the ruling party and its leader decided the Project’s success was contrary to their own
political and economic interests. In the process, the people of Georgia are victimized by the
“The reversal of the Government’s support for the Anaklia Port Project and ADC, and its aggressive
campaign to undermine the Project, ADC and its investors (driven at the behest of the Georgian Dream
party and its leader, Bidzina Ivanishvili) seem to be driven by several motives but there are two obvious
ones. First, it would appear that Mr. Ivanishvili may have a vested interest in the development of the
free industrial zone connected to Poti Port. Second, it would seem that Mr. Ivanishvili and Georgian
Dream are sensitive to pressure from Russia, which has made clear its opposition to a deep water port at
Anaklia (which is very close to the de facto border with Russian-occupied Abkhazia) and the western
support that would come with it.
“By its campaign to undermine the Anaklia Port Project and force it into arbitration, the Government is
damaging the Georgian economy. Beyond the matter of foregoing the economic benefits that the
Anaklia Port and economic zone would generate or the unnecessary considerable financial liability, the
Government is in effect discouraging international investors from pursuing any investments in
Georgia, facilitating the further loss of jobs and revenues by the country and stalling the momentum for
placing Georgia on the map as a regional trade hub between Asia and Western Europe.
“Finally, the manner in which the Government has conducted itself in its attacks on ADC, its investors
and the Project itself could be in violation of one of the conditions of the proposed U.S. government aid
to Georgia, under which 15% of the aid is withheld until the U.S. Secretary of State can affirm that the
Government of Georgia has been, according to the legislation, ‘protecting the rights of foreign
businesses to operate free from harassment and to fully realize all due commercial and financial benefits
resulting from investments made in Georgia.’
“The responsibility for these consequences rests solely with the current Government and the ruling
NOTE: ADC and Mr. Meijer are represented by a team led by Mr. Andy Moody at Baker McKenzie in London and
Ms. Ketevan Kvartskhava at BLC in Tbilisi.
Further details can be found at http://anakliadevelopment.com