First Deputy Minister of Finance Giorgi Kakauridze says Georgia has not yet agreed on a payment schedule for USD 94 million it owes Russian company Inter Rao following the outcome of an international arbitration dispute. Speaking to BMG, he explained that negotiations are still underway, and only after an agreement is reached will the obligations be reflected in the state budget.
“This will require some negotiation, agreement on a schedule. The schedule has not yet been established. When negotiations are completed with the company and we know when and how much should be covered, it will be reflected in the budget. At this stage, it cannot be included, since the 2026 budget has not yet been prepared,” Kakauridze said. He added that the dispute is no longer a fiscal risk but a “material result,” meaning only the timing and terms of payment remain under discussion.
On August 21, 2025, the World Bank’s International Centre for Settlement of Investment Disputes (ICSID) rejected Georgia’s appeal and upheld its previous ruling of October 27, 2022, which required Georgia to pay USD 76 million to Inter Rao. Since the payment was delayed, interest accrued at SOFR + 2%, raising the total amount owed to more than USD 94 million.
Kakauridze also noted that he does not yet have information regarding the parallel arbitration case involving Enka Renewables, which in 2024 won USD 383.2 million against Georgia. That case is still under appeal. According to the State Audit Office, as of the end of 2024, Georgia was engaged in arbitration disputes worth a total of USD 3.3 billion.
