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Energy Minister Does not Specify Terms of Returning KazTransGas-Tbilisi to Kazakh Management

According to Energy Minister Kakha Kaladze, the Ministries of Finance of Georgia and Kazakhstan are negotiating  over the return of the Tbilisi gas distribution company KazTransGas-Tbilisi to the Kazakh management.

“As far as I know, currently the parties are negotiating regarding the company’s debt. This is the only problem, there are no other complications,” the Minister says. Last year Kakha Kaladze said that KazTransGas-Tbilisi ownership would return back to the Kazakh, but this has not been done yet. In early 2015, the Deputy Minister of Energy of Georgia Mariam Valishvili told CBW that the work on this issue was underway, the subject was discussed by Prime Ministers of Georgia and Kazakhstan, and the documentation required for the return of Kazakh management was being prepared.

A few months ago, KazTransGas which includes the Tbilisi gas distribution company announced its intention to sell it. The Kazakh state company KazTransGas acquired Tbilisi gas distribution company Tbilgas for USD 12. 5 million in 2006. By 2009, the company has accumulated a debt of 80 million GEL. Some 68 million of this amount amounted to Georgian Oil and Gas Corporation.

In order to deal with the debts, in 2009 the corporation appointed a special manager. After the change of power, the Kazakh side hoped to return to the management of the company, but almost two years have passed, and the government of Georgia states that KazTransGas has not paid the debt and that is why the company is still under the state control.

Negotiations over the company’s return to Kazakh management started after the change of power in 2012; their successful completion has been announced several times, but despite this, KazTransGas-Tbilisi has not been returned to the Kazakh side yet.