Georgian Authorities, UES Chief Pledge for Cooperation

Government Tries in vain to Allay Fears Over UES Entry

Visit of Anatoly Chubais, chief of the Russian state-owned Unified Energy Systems (UES) in Tbilisi on August 6 further increased controversy over the entry of the Russian power giant in Georgia. While Chubais was holding talks with the country’s leadership, demonstrators protesting the monopolization of the Georgia’s energy sector by Russia rallied in the capital city.

Despite opposition among the country’s political circles the UES will start operation in Georgia from August 15. 

During the talks with the Georgian President Shevardnadze, Energy Minister Davit Mirtskhulava and State Minister Avtandil Jorbenadze, the chairman of board of directors of the UES Anatoly Chubais discussed details of cooperation between the company and the Georgian government.

“I am extremely satisfied with talks with the Georgian authorities,” Anatoly Chubais said at the joint news briefing with Energy Minister Davit Mirtskhulava after the!
talks.

Chubais confirmed that under a contract betwee!
n the US company AES and UES, the Russian company acquired 75% of shares of AES-Telasi electricity distribution network, two 600 mega watt power plants of AES-Mtkvari, power lines to transit electricity to Turkey and Armenia, as well as rights to manage Khrami I and II power plants. 

Chubais tried to dismiss Georgian political circles’ fears that the entry of the Russian energy giant, would lead to mounting political pressure on Georgia by Russia. He said “UES’s entry in Georgia is purely economically-motivated. This was not a political or Kremlin-guided deal. It was just a commercial agreement of the two companies. The Georgian side knew everything ever since 2002.”

“Now we will be able to not only import electricity to Georgia, but also generate the power locally and distribute it in Tbilisi and other regions of the country. We will be also able to transit electricity to Turkey, which is particularly important for us. By ent!
ering the country, we became a part of the Georgian energy system and we will try to enhance our business, since there are good opportunities for the development,” Chubais said at a joint press conference with the Georgian Energy Minister David Mirtskhulava on August 6.

The UES chief said that close cooperation with Georgia as well as with other CIS countries is of strategic importance for the Russian company.

The Georgian authorities also claim that entry of the UES has nothing to do with politics and vow to solve the energy shortage problem in Georgia.

“Georgia always lacked energy resources and therefore we always needed tight cooperation with Russian energy companies. In this view Russia is the best partner, because in times of energy crisis we have been receiving additional power from Russia. This winter promises to be much better,” said Energy Minister David Mirtskhulava.

However, Mirtskhulava’s and Chubais’s sta!
tements proved insufficient to reduce criticism of the opposi!
tion. Furthermore, after unscheduled meeting with the Parliament’s Chairperson Nino Burjanadze, it has become known that the Georgian government knew about negotiations between the companies and did nothing to at least purchase the capital stocks of Tbilisi electricity distribution company.

“I asked Chubais directly, whether the Georgian side would be able to purchase the capital stock. Surprisingly, he replied that the government has never suggested such proposal to the Russian company, although it was quite possible. Now I need to know why such proposal was never made,” Burjanadze told journalists, after meeting with Chubais in late evening of August 6.

Nino Burjanadze tried to get answer to her question in the same morning, before Chubais’s arrival at the Government Meeting where she appeared unexpectedly. She requested the President and the whole government the information on what was done to prevent takeover of the strategic energy !
facilities by the Russian side, causing President’s outrage. “Please give us some time. Chubais will arrive and we will know everything,” Shevardnadze interrupted Burjanadze’s speech at the government’s meeting.

“It is true, everything has become clear. It is already known that the government did nothing to keep the strategic objects in hands. Apparently the President, the State Minister, the Energy Minister and other officials were personally interested in the takeover,” says MP Irakli Chubinishvili, chairman of the Parliamentary special commission, which investigates reasons of the energy crises.

Opposition argues that the government’s claims that the next winter will be better, is not enough to justify takeover of the strategically important facilities by the Russian side. “I am sure people do not want electricity at a price of independence,” Nino Burjanadze said.

Chubais’s visit in Tbi!
lisi was held on the background of public protests in the str!
eets. The youth anti-governmental movement “Kmara” (Enough), which was joined by the several MPs, public figures and celebrities followed Chubais everywhere, protesting against UES’s entry in Georgia.

“Kmara” activists held simultaneous protest actions at the Tbilisi airport and in front of the Parliament’s building. They attempted to organize the action at the State Chancellery (President’s administration) and the Energy Ministry as well, but the Police raided the rally injuring couple of activists.

Despite public protest and resistance of the opposition parties, it seems that Chubais received guarantees of the Georgian government that he will be able to conduct business successfully in Georgia.

“I do not understand position of certain political forces. I think we are not doing something bad. If they do not like Russian com!
panies and prefer Americans, than it is a matter of their tastes and we have nothing to do with this,” Chubais said.

Some experts say that the acquisition of the strategic energy facilities by the Russian company might be just a beginning. Georgia owes the UES around 40 million Lari (approximately USD 19 million) for imported electricity. Thus experts suppose that the Russian company might try to taker over other strategic facilities in Georgia as a repayment of the debt.

By Tea Gularidze, Civil Georgia