Itera Seeks for Writing-off its Debts to Georgia

The Russian energy giant Itera, which owns 90% of shares of the Georgia?s fertilizer producer ? Azot  chemical factory in the town of Rustavi near Tbilisi, urges the Georgian side to write-off the debts of the factory 22 million Lair (USD 11 million).

In exchange it offers rescheduling of the 18 millions Lari (USD 9 million) debt of the Tbilisi gas distributing company TbilGazi.

Itera, which was the only provider of gas to Georgia for recent years, purchased shares of Azot, the biggest manufacturer of mineral fertilizers in Southern Caucasus, in 2003.

?Georgia?s total debt to Itera, including the debt of TbilGazi, amounts to USD 103 millions. 46 million Lari [USD 23 million] out of this sum consist the debt of state-run enterprises and organizations. It will be better if the debt of Azot is written-off in exchange of rescheduling TbilGazi?s debts,? Tamaz Pataridze told Civil Georgia on May 29.

?In case of agreement, the amount of investments made by Itera into Azot may increase up to USD 6 millions.? Pataridze added.

Itera has already invested USD 4 millions in Azot.

Itera has cooperated with Georgia since 1996. In 2003 the company delivered around 1 billion cubic meters of gas to Georgia. Itera holds majority ownership of 11 Georgian gas distribution companies, including TbilGazi.