President Shevardnadze dismissed in his radiobroadcast on August 4 US cr!
iticism over unfavorable investment climate in Georgia and hailed entry of the Russian state-owned Unified Energy Systems (UES), which replaced US company AES.
As a result of the deal the Russian power giant, which already owns 50% of the power lines in Georgia, acquires 75% of an electric distribution company Telasi in capital city, power plants Khrami-1, Khrami-2 and two power blocks of AES Mtkvari. Thus the Russian state-owned UES becomes the monopolist in the Georgian energy system causing concern of the local political circles.
The US embassy in Georgia on July 31 expressed regret concerning the AES Corporation’s decision to sell its assets in Georgia, saying US company’s pull out from the country ”reflects difficult investment climate in Georgia.”
The US embassy’s explanation on AES decision to pull out from Georgia caused President Shevardnadze’s protest. “I can not understand the reason of this kind of stat!
ement. Of course the investment climate in the country is not!
ideal; however the situation is not so grave. Many projects, including construction of the Baku-Tbilisi-Ceyhan oil pipeline, are in progress. The company’s pull out is connected with the financial crisis in the AES itself,” Shevardnadze said in the interview to the national radio.
In the wake of this statement US Ambassador in Georgia Richard Miles held a confidential meeting with the Secretary of the Georgian National Security Council Tedo Japaridze. After the meeting Ambassador Miles refrained to make any comments.
President Shevardnadze in his radiobroadcast also slammed the AES for “covert talks with the UES” without notifying Georgian side, which is the owner of 25% of Telasi shares, regarding the company’s intention to sell its assets. However President added “there is no way left to obstruct the deal between the AES and UES.”
The opposition parties call the government to sue against the AES in the London Court!
of International Arbitration, because the company violated the agreement with Georgia and did not inform the authorities regarding the foreseeable deal in advance.
“Law suit against AES is possible, but it will take too much time and the population will suffer,” Shevardnadze said.
President Shevardnadze downplayed opposition’s fears that the entry of the UES reflects a revision of country’s unequivocally pro-Western foreign policy. Opposition leaders say that Russia will use its monopoly over the energy sector for political pressure on Georgia.
“I don’t see anything negative in the entry of the Russian company in Georgia. Russia does not need to purchase the Tbilisi electricity distributing company to mount pressure on Georgia. It will be enough for the company to switch off its own high-voltage electricity transmission lines to black out not only Tbilisi but entire Georgia,” Shevardnadze stated.
Shevardnadze sa!
id Georgia should develop equal ties with both the United Sta!
tes and Russia. “Along with the Great Silk Road projects through the East-West route, the North-South direction is also being developed. I mean that the cooperation with GazProm and the UES of Russia is a part of the North-South direction,” Georgian President said.
He expressed readiness to discuss with the chief of the UES Anatoly Chubais, who is expected to visit Georgia in the nearest days, the prospects of the company’s activity in Georgia. “The work of the Georgian government with Anatoly Chubais was rather fruitful for past years. Georgia often failed to pay the cost of consumed electricity in due terms, however Chubais never blacked out Georgia,” Shevardnadze said.
By Tea Gularidze, Civil Georgia
