Itera group sues Georgian Energy Ministry at Arbitration Court

TBILISI, April 1 (RIA Novosti, Marina Kvaratskhelia) - Russia's No.1 independent gas producer Itera said Saturday it had filed a claim against the Georgian energy ministry at the arbitration court of the Russian Chamber of Commerce and Industry.

Teimuzar Gadzhiev, Itera representative in Georgia, said the claim was over Georgia's failure to honor a 2003 debt restructuring agreement.

"Under the agreement, the Georgian side is to pay the outstanding $46 million debt in quarterly installments within seven years," he said. "Yet we were told that the Energy Ministry had no authority to sign the 2003 agreement. We find this incomprehensible since the restructuring agreement was signed by former Energy Minister David Mirtskhulava, who was duly authorized by President Eduard Shevardnadze."

The Itera representative said that after the claim was lodged, Georgian Prime Minister Zurab Nogaideli directed Georgian Justice Minister George Kavtaradze to study the situation.

Georgian public sector and commercial organizations owe Itera a total of $103 million for natural gas supplies since 1996.