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.
Georgia also lost another investment dispute with InterRao at the Stockholm Arbitration Tribunal, in which the country was ordered to pay USD 112 million. It is not yet known which of these two judgments Georgia will have to enforce, because according to the existing definition, compensation for both disputes is not collected.
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.
Accoridng to the 2012 management report of "Telasi", a memorandum was signed between Inter Rao and the Georgian government on March 31, 2011, where the Georgian government gave the company a guarantee that the electricity tariff in the country would not be revised for 15 years.
