Is Georgia pleased with "Rosneft"?

A recent deal between the Russian oil giant "Rosneft" and the company Petrocas Energy Limited, which owns the oil terminal in the port of Poti and a network of gas stations in Azerbaijan, Georgia and Armenia, has provoked sharp condemnation from the Georgian authorities. Late this year "Rosneft" bought a 49% stake of Petrocas Energy from its owner, businessman David Yakobashvili, and with this officially entered the market of petroleum and petroleum products in the South Caucasus.

Economy Minister Giorgi Kvirikashvili was among the first to condemn the appearance of "Rosneft" in Georgia. Kvirikashvili said that Petrocas, which was previously owned by former President Mikhail Saakashvili and former defense minister David Kezerashvili, who is now involved in several criminal cases. He said he can only criticize the deal, as the Georgian authorities have no authority to control the actions of Petrocas.

A similar position was expressed by the Energy Minister Kakha Kaladze, also recognizing that the Georgian authorities can't affect Yakobashvili's company.

Giga Bokeria, the former head of the Georgian Security Council, denied Kvirikashvili's statement about Saakashvili's participation in the management of Petrocas, however he joined the condemnation of the deal, calling on the authorities to impose sanctions on "Rosneft".

Meanwhile, according to the website of "Rosneft", the head of Russia's state-owned companies, Igor Sechin, said the partnership with Petrocas plays a key role in ensuring the energy security of the region. David Yakobashvili, in turn, stressed the benefits that derive from the company's shareholders agreement, as well as the importance of the Transcaucasian energy corridor.

Note that on the day of the transaction in an interview with "Vestnik Kavkaza" vice-president of "Rosneft" Mikhail Leontiev said that the company is interested in the oil terminal in Poti. "In general, there are purely commercial advantages of Petrocas, particularly its oil infrastructure. Our main interest is the oil terminal in Poti, which is, in fact, an alternative trans-shipment point to fulfill our contract partners from the South Caucasus and, ultimately, from Central Asia," he said.

He also spoke about what the joint venture that created "Rosneft" and Petrocas will do. "The transportation of goods through the South Caucasus plus retail plus monetization of our oil, which is the most interesting part, of course. We have, among other things, an obligation of executive intergovernmental agreement with Armenia - as you know, the surest route of oil supplies to Armenia passes through the oil-loading terminal in the port of Poti," Mikhail Leontiev said.