Gov’t not to terminate contract with Frontera Resources Corporation

Gov’t not to terminate contract with Frontera Resources Corporation

access_time2020-07-23 14:42:39

The Georgian government has decided not to terminate its contract with Frontera Resources Georgia Corporation and to allow the company to continue operating in the part of the original contract area where oil production has been under way since Soviet times. It is about 1% of the state search area, as about 99% of this area has already been returned by Frontera to the state in accordance with the arbitrage decision.

According to the statement issued by the Ministry of Economy and Sustainable Development, "The decision of the state is conditioned by the strategic goals of the country, namely: It is inadmissible to cast a shadow on the international reputation of Georgia’s investment environment, which is constantly rated highly positively. It is our primary task to maintain the positive perception of our country’s investment climate”.

According to the statement, "Relations with the United States, which is the main strategic partner of our country, is a fundamental and principled issue for us. Although the issue of Frontera is not a topic of discussion in official relations at all, it is unequivocally undesirable for us to give anyone in America's highly diverse political spectrum a pretext to use this absolutely routine commercial dispute to harm the strategic relations between our countries. Georgia's investment image and close relationship with the United States are important, first and foremost, for the relationship with the American business community, because special attention is always paid to attracting American investment to Georgia."


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