Georgia and Kazakhstan’s mutual debts’ compensation impossible

13:30, 6 June 2013

BAKU-TBILISI. June 6. KAZINFORM - Despite the fact that «KazTransGas» (KTG) Kazakh Company is under duty to Georgia and the Government of Georgia is under duty to the Government of Kazakhstan, mutual debts compensation is impossible, this was stated by Nodar Khaduri, the Finance Minister of Georgia, to the mass media.

"We can not mutually compensate the Georgian Government debt and the debt of KTG despite the fact that KTG is a state-owned company in Kazakhstan and Georgia has the duty to Kazakhstan. We are working hard to ensure to take in both directions parallel steps to resolve the problems, but these two issues are not legally bounded", said N.Haduri.

The Minister noted that during his visit to Kazakhstan, he met with his counterpart Bolat Zhamishev and debated with him the KTG and Georgia’s money refunding.

"We have reached an agreement providing Georgian debt restructuring", said the Georgian minister.

It bears to remind that KTG Kazakh Company became the owner of the Tbilisi gas distribution company "Tbilgas" assets after the victory on the investment rate in May 2006. The investor paid USD 12.5 million for the company. At present "KazTransGas-Tbilisi" is controlled by the temporary Georgian administration, as the company has accumulated 80 million lari (GEL 1.66 = U.S. $ 1) debt to the budget. At the same time, Kakha Kaladze, the Minister of Energy of Georgia, offered to repay the Kazakh Company debt in compensation of Georgian debt to Kazakhstan which is equal to USD 100 million.

Oil & Gas Kazakhstan and Georgia Economy