Ivane Machavariani, the Minister of Finance of Georgia, explains the reasons for writing off 100 million GEL from the gas distribution company KazTransGas-Tbilisi.
According to the minister, the decision was correct in terms of business. According to Machavariani, the company had problems with functioning due to the financial obligation of the company. In addition, the problem was a 96 million liability in the state budget. According to the minister, it was a kind of a deal, because the company "KazTransGas" complained to the Arbitration Court. The suit was not filed and the government wrote off 100 million.
According to Machavariani, after the debt is annulled , the company will operate more efficiently.
The dispute in the international arbitration between the Government of Georgia and the Kazakh company has been in progress since 2017. The Kazakh side demanded compensation for damages. At the same time, the debt of "KazTransGas-Tbilisi" ltd to the budget amounted to 96 million lari.