Georgia Appealed Against Russian InterRao
Georgia lost a USD 76 million arbitration dispute with the Russian energy giant InterRao. The dispute was conducted at the International Center for Settlement of Investment Disputes (ICSID) since 2017.
In addition, Georgia also lost another investment dispute with InterRao at the Stockholm Arbitration Tribunal, in which the country was ordered to pay USD 112 million.
BMG asked the Ministry of Justice when the compensation will be paid to the company and how many millions should be paid by the country within the framework of this dispute. Accoridng to the Ministry, it is clear that the total amount of imposed compensation is USD 112 million, while the decision is appealed and the country will not have to pay compensation to the Russian company. InterRao demanded compensation of USD 200 million for Georgia in the dispute.
The subject of the dispute with Inter Rao was tariff incomprehensibility. The argument of the investor was that Georgia violated the terms of the investment agreement and the investment memorandum, which caused multi-million losses.
Inter Rao owns 75% of the shares of Telasi, the company responsible for Tbilisi's energy supply. In addition, the Russian energy giant owns two hydroelectric power stations in Georgia, "Khramhesi 1" and "Khramhesi 2", through the Holland-based company Gardabani Holdings B.V. And until December 2016, it also owned the old Gardabani thermal station.