Economy Minister claims Georgia’s dispute with Russian energy company will not affect electricity tariffs

Georgian Economy Minister Natia Turnava says that the country’s dispute with Russian energy company Inter RAO, which is demanding compensation from the Georgian government for damages caused by the lari depreciation, will not affect the electricity tariffs in Georgia. 

The Arbitration Institute of the Stockholm Chamber of Commerce obliged Georgia to pay 80.5 million USD to Inter RAO on November 23, 2021 as a result of the dispute that began in 2017 when Inter RAO filed a lawsuit against Georgia.

Turnava stated that ‘a rather difficult agreement’ was signed with the Russian state company during the previous United National Movement (UNM) government, emphasising that ‘the tariffs should not be increased.’

• Georgia obliged to pay $80.5 mln to Russian energy company Inter RAO in compensation for lari devaluation

We always defend the interests of consumers at such times. An increase of tariffs is a very sensitive issue for the population and we always try to prevent this from happening,” said Turnava.

She also noted that the Arbitration Court ‘only partly agreed’ with Inter RAO’s demand, adding that they asked for more than 200 million USD while the ruling obliged Georgia to pay 80 million USD. 

The Georgian government has appealed the decision which was announced on November 23, calling the ruling ‘unfounded.’ 

The Russian energy company, which owns two hydropower plants Khrami-1 and Khrami-2 in Georgia and 75% of Georgia’s electricity distribution company Telasi, claims that the measures taken by the Georgian government back in 2014 had an adverse effect on Inter RAO’s investment, demanding ‘compensation for the damage caused by the depreciation of the lari.’