Economy Minister: Georgia didn't cancel the contract with Frontera due to the strategic relations with the US

Economy Minister: Georgia didn't cancel the contract with Frontera due to the strategic relations with the US

access_time2020-07-30 17:04:24

According to Natia Turnava, Minister of Economy and Sustainable Development, Georgia had the right to cancel the contract with Frontera based on the arbitration decision.


Turnava notes that the state didn't cancel the contract with Frontera due to the strategic relations with the US.



The international arbitration backed every demand of Georgian side and we had a full opportunity to cancel the contract with Frontera, because they couldn't enforce the responsibilities they bore - there was an essential breach in the contract. Due to the fact that we appreciate the relations with our strategic partner US, and Georgia's attracting investment image, we took the decision to let Frontera stay within the area of contract and continue their oil extraction activities. Due to this, every attempt to undermine the partnership between us and our strategic partner is feeble and futile. The result will be that certain congressmen will find themselves in an awkward situation because Frontera and their lobbyists provide them with the wrong information, - stated Turnava.


For the record, the Georgian government took the decision not to cancel the contract with Frontera Resources and let the company continue its activities on the contractual territory where the oil extraction has been carried out since the Soviet times. The territory makes up 1% of the state oil search area, the remaining 99% was returned by Frontera to the state according to the decision of the Arbitration court.

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