The Government of Georgia decided not to terminate its contract with Frontera Resources Georgia Corporation and to allow the company to continue operating in the part of the original contract area where oil production has been under way since Soviet times. It is about 1% of the state search area, as about 99% of this area has already been returned by Frontera to the state in accordance with the arbitrage decision.

“The decision of the state is conditioned by the strategic goals of the country. It is inadmissible to cast a shadow on the international reputation of Georgia’s investment environment, which is constantly rated highly positively. It is our primary task to maintain the positive perception of Georgia’s investment climate.

Relations with the U.S., which is the main strategic partner of our country, is a fundamental and principled issue for us. Although the issue of Frontera is not a topic of discussion in official relations at all, it is unequivocally undesirable for us to give anyone in USA’s highly diverse political spectrum a pretext to use this absolutely routine commercial dispute to harm the strategic relations between our countries.

Georgia’s investment image and close relationship with the U.S. are important, first and foremost, for the relationship with the American business community, because special attention is always paid to attracting American investment to Georgia”, - reads the statement of the Ministry of Economy and Sustainable Development.