Russian energy firm Inter RAO has launched a new dispute against the Government of Georgia.
As Russian news agency Commersant reports, Inter RAO structures, the Netherlands-incorporated Silk Road Holding B.V. and Gardabani Holdings B.V is seeking compensation for losses worth of $175 million stemming from Georgia's currency devaluation.
Inter RAO structures claim the loss was due to a refusal to raise energy tariffs when the Georgian national currency Lari was devaluated.
The company bought Georgia’s two hydro-power plants Khrami-1 and Khrami-2 in 2011. Inter RAO also owns a 75 percent stake in electricity distribution company Telasi, which serves the capital Tbilisi.
The Inter RAO structures are registered in the Netherlands and are protected by Georgia-Netherlands agreement on mutual protection of investments.
The new dispute was applied to the World Bank’s International Centre for Settlement of Investment Disputes.
Earlier in June Inter RAO began arbitration proceedings in Stockholm against Georgia over electricity tariffs. The company demanded to raise the electricity tariffs and claimed compensation of $125 million.