Georgian Oil Producers Call for Easing State Regulations

The Union of Oil Producers, Importers and Consumers of Georgia, as well as several local oil-producer companies sent an open letter to Georgian President Mikheil Saakashvili, claiming that the restrictions imposed by the State Oil and Gas Regulatory Agency hinders this sector?s development and boosts oil and fuel smuggling in the country.

?Due to the local oil production the contraband has been reduced and this was the very reason why the previous authorities of Georgia carried out purposeful measures against [the local oil production business]? The Rose Revolution elevated hopes among the entrepreneurs that favorable conditions for further functioning of this business would have been created. However, unfortunately the old practice is still in force,? the open letter of oil producers reads.

According to this message, the State Oil and Gas Regulatory Agency ?artificially drags out granting of licenses [to oil producers]; as a result the enterprises stand still.?

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