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Kazakh Management may Return to “KazTransGas – Tbilisi” this Year

Tbilisi gas distribution company owned by the Kazakh state company “KazTransGas” may soon come back under the control of the Kazakh management – Director General of “KazTransGas-Tbilisi” Sanzhar Shokataev told  “Commersant”.

At the same time, he notes, at this stage, the issue on the company’s sale is not relevant, in spite of the statement  that it can be sold.

“In September, a delegation from Astana will arrive in Tbilisi, which will hold the final negotiations to  determine  the company’s future. The further development of the company in Georgia will depend on them. With regard to the sale of “KazTransGas – Tbilisi”, the Kazakh government is selling 50 other Kazakh companies. However the issue of whether Tbilisi gas distribution company would be sold or not, will be resolved  during this visit. If negotiations are successful, then it is possible that we’ll returnto the company later this year,”- said Shokataev.

According to him, the Kazakh side will face a problem with the privatization, if it intends to sell the company which has a debt to the state.

“It’s really a problematic issue, but it can be resolved through negotiations with the government of Georgia,” – Shokataev notes.

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 havepassed, and the government of Georgia states that “KazTransGas” has not paid the debt, that’s why the company is still under state control.