Nov 27, 2008

Abkhazia: Georgia ‘Legalizes’ Power Production

Sample ImageGeorgian electricity companies have been the first to resume operations in the region, but property rights remain heavily circumscribed. 

Below is an article published by iStockAnalyst: 

The Georgian government has legalized the work of energy companies in Abkhazia and South Ossetia by granting them the right to conduct business activity there, Georgian Energy Minister Alexander Khetaguri told a press conference on Tuesday [26 November 2008]. 

This includes 27 energy companies engaged in electric power production, purchase and distribution, as well as maintenance work on the power facilities in Abkhazia and South Ossetia, he said. 

"These include, in particular, the Inguri HPP and Kaskad Perepadnikh GES HPP with facilities in the Gali district, Abkhazia, which participate in the power supply to the whole of Georgia," Khetaguri said. 

Under the governmental decree, restrictions are lifted for the State Electric System of Georgia, Energo-Pro Georgia, Georgian Oil and Gas Corporation, Gruzrosenergo, Telasi, Gruzenergoremont, etc., he said. 

The government has lifted restrictions for these companies so that they can operate without obstacles, he said. 

According to earlier reports, on October 23 [2008] the Georgian parliament adopted a law "On the occupied territories" declaring Abkhazia and South Ossetia as "occupied territories" and extending a special legal regime providing for a range of serious restrictions including on investment and economic cooperation. All deals on buying and selling property are stated as illegal under this law.