ANALYTICS

Will Armenia Buy Batumi Port for $ 600 Million? Provocative work has been going on for a long time - Kazakh investors “survive” from the port

20.12.19 18:10


On December 18, the Armenian newspaper Zhamanak wrote that Armenia is interested in buying the port of Batumi. According to the newspaper, the port was put up for sale by the Georgian authorities for $ 600 million. “Some circles in Armenia are trying to raise funds to buy a port in Batumi, which ensures uninterrupted transportation of goods from Armenia,” the publication writes. According to newspaper sources, the idea of ​​creating a joint-stock company with the participation of representatives of the diaspora is being discussed. “Any successful person must make an initial investment in order to successfully investigate the matter, but no one has expressed such a desire at this stage!”

 

“Armenia, which is landlocked, is subject to the 1958 UN Convention on the High Seas. This document, adopted by UN member states, states that intercontinental states should have free access to the sea and enjoy the same rights as coastal states. According to the preamble of the Convention, coastal states must ensure free transit of traffic to neighboring states that have no access to the sea, ”they quickly began to refer to international standards.

 

The Ministry of Economy and Sustainable Development of Georgia reacted to this information. It refuted the information circulated by the Armenian media about the possible sale of the port of Batumi. "The information circulated by the Armenian media is not true. The port of Batumi was leased for a period of 49 years with the right to manage the Batumi Oil Terminal company," the ministry said.

 

However, as you know, "there is no smoke without fire." And the fact that the Armenian lobby has been “eyeing” for a long time to get full control over the port of Batumi is direct confirmation.

 

As it happens most often, the best way to buy a cheaply “liked” object is to arrange unbearable conditions for a competitor. Armenia’s rival in the struggle for control over the Batumi port is known - it is the current investor in Kazakhstan.

 

Kazakh state-owned company KazMunaiGas became a port investor in 2006. Then her “daughter” “KazTransOil” together with the “daughter” of the Greenoak Group “Batumi Oil Terminal” created a joint venture Batumi Terminal to ensure the transfer of Kazakh oil to the port.

 

Since then, Kazakhs have begun to actively invest in the development of the Batumi port. And in 2007 they even decided to build a $ 1 billion oil refinery in Batumi. In the end, the Greenoak Group in February 2008 sold the right to manage the Batumi port to KazMunaiGas. The amount of the transaction was not disclosed, although experts estimated it at $ 200 million.

 

However, six months after obtaining the right to manage the port, the Kazakhs changed their minds to build refineries in Batumi. Then, at KazMunayGas, the reason for their decision was explained by the unstable political situation in Georgia (the war in August 2008), which was largely provoked by the Armenian lobby, headed by Russian Foreign Minister Sergei Lavrov-Kalantarov... As a result, the Kazakh side decided to move at that time oil through Russian ports, which offered more favorable conditions than investing in the development of infrastructure in Georgia. This immediately negatively reflected on the performance of the Batumi port. They began to fall.

 

So, in 2010, the cargo turnover of the port of Batumi amounted to 11 million tons, then in 2013 - 8.3 million tons., In 2016 - 5.6 million tons in 2017 - up to 4.2 million tons. Last year, the port of Batumi reduced its cargo turnover by another 11.9% to 3.7 million tons.

 

A sharp reduction in port cargo turnover forces the investor to reduce costs and “optimize” personnel. And here, certain forces provoke an aggravation of the situation, provoking strikes and conflicts.

The most high-profile conflict occurred in the spring of 2018. Then, on the morning of April 2, port workers refused to go to work, demanding to stop reorganization in the port, not to dismiss employees, and also to dismiss Daniyar Muhamed-Rakhim, the general director of the Batumi Sea Port. In protest, eight people went on a hunger strike.

 

As a result, the Kazakh investor was forced to make concessions, which only worsened the performance of the port. At the same time, it is possible that the strike was provoked by “external instigators”. Those who want to “survive” Kazakh investors from the port, forcing them to “cheapen” it.

 

And now, apparently, the Armenian side is already getting ready for the fact that it will have its own port on the Black Sea, “squeezed” from the Kazakhs. “... in Armenia they are interested in buying the port of Batumi, which is owned by the Kazakh state company Kazmunaygaz. Batumi port in Georgia is going to be sold for $ 600 million, ”Zhamanak wrote.

 

A month ago, the Minister of Territorial Administration and Infrastructure Surena Papikyan recently confirmed that the Armenian government is in talks with Russia to acquire two ferries.

 

Trade Representative of the Russian Federation in Armenia Andrei Babko stated that “Armenia has begun negotiations with Russia on the purchase of two ferries, and if the republic’s authorities are interested in a ferry on the Black Sea, then ships can be quickly found. After the construction of the Kerch bridge, several ferries that crossed the strait remained underloaded there. They will allow trading with Russia bypassing the Upper Lars mountain pass, which often closes in winter. So if we are interested in Armenia, we will quickly find both ferries and suppliers. But so far we have not received such requests. If we see any interest, then negotiations can definitely be continued, ”said Andrei Babko.

 

Also on December 18, 2019, the chairman of the Permanent Parliamentary Commission on Regional and Eurasian Integration, MP from the Prosperous Armenia Party, Mikael Melkumyan, stated that the ultimate goal of the efforts of the Armenian side to build its own logistics infrastructure on the Black Sea coast of Georgia should be the opening of a terminal in Poti or Batumi.

 

“Negotiations are ongoing, let's see how events will develop. I’m sure that after a while Armenia, following the example of Kazakhstan, will be able to open a terminal in Poti or Batumi, ”Melkumyan said then.

 

And judging by the recent events, the Armenian lobby is creating problems in Batumi for Kazakhstan, on the one hand, and, on the other hand, negotiating ferries for "its" port, is already close to putting Batumi in its hands.

 

But here the important position of the government of Georgia is important. Batumi to succumb to the Armenian side, even for $ 600 million or a large sum, after obvious criminal intrigues against the current port investor and after Armenia and the Armenian lobby in Russia provoked many problems that did not allow Kazakhstan investor to receive dividends from Batumi management port - this means, in fact, to encourage "international robbery."

 

It was this robbery in fact that the Armenian lobby was engaged in various tricks and adventures, creating problems for Kazakh investors in the Batumi Sea Port. If now we succumb to the pressure of the Armenian lobby and satisfy their desires, then serious provocations will certainly begin in various fields, including those related to state security and the territorial integrity of Georgia. We must not forget that the Armenian nationalists also include Adzharia and Batumi in their “great Armenia”.

 

 

 

KavkazPlus

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