07TBILISI2772, RESOURCE NATIONALISM IN GEORGIA

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Reference ID Created Released Classification Origin
07TBILISI2772 2007-11-07 14:17 2011-08-30 01:44 CONFIDENTIAL Embassy Tbilisi

VZCZCXRO0400
RR RUEHDBU RUEHFL RUEHKW RUEHLA RUEHROV RUEHSR
DE RUEHSI #2772 3111417
ZNY CCCCC ZZH
R 071417Z NOV 07
FM AMEMBASSY TBILISI
TO RUEHC/SECSTATE WASHDC 8126
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE

C O N F I D E N T I A L TBILISI 002772 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR EUR/CARC AND EEB/ESC/IEC/EPC:BGGRIFFIN 
 
E.O. 12958: DECL: 11/05/2017 
TAGS: EPET ENRG PREL PGOV GG
SUBJECT: RESOURCE NATIONALISM IN GEORGIA 
 
REF: STATE 150999 
 
Classified By: Ambassador John F. Tefft, reason 1.4(b) and (d). 
 
(C) Georgia has very small proven reserves of oil and gas. 
It has negotiated PSA's with two American companies, Canargo 
and Frontera, to develop particular geographical areas. 
Development rights to other blocks of the country have 
recently been auctioned, mainly to foreign investors, who are 
beginning to re-analyze Soviet era studies of their potential 
and do studies of their own.  "Resource nationalism", as it 
is defined in refel, does not feature significantly in 
Georgia's political and economic discourse, nor have any 
actions been taken to Embassy's knowledge that reflect such 
an attitude.  Canargo has sometimes commented to Emboffs that 
its PSA does not provide for adequate incentives for further 
exploration.  However, the new Minister of Energy of Georgia, 
Alexander Khetaguri, recently told Canargo he is willing to 
change the PSA to make the potential rewards for development 
greater.  No mention has been made of trying to pull back 
advantages granted under the PSA's.  GOG policy has been to 
withdraw the government from involvement in business and from 
ownership of all but the most strategic of national assets. 
"Resource nationalism" would run counter to the overall 
direction of policy of the government in this regard. 
TEFFT

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