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dependence on imports of Azerbaijani gas. In addition to their contributions to mitigating climate change, these projects will also help Tbilisi manage its current account deficit, which has been on the rise and which is financed largely with foreign borrowing.
9.1.8 Metallurgy & mining sector news
Six Georgian miners died and at least three were injured when the tunnel in which they were working collapsed on April 5. The Mindeli coal mine, located near the town of Tkibuli in the region of Imereti some 200km west of the Georgian capital Tbilisi, is operated by Sakhakhshiri, a Georgian company. The mine operator claims that the accident was caused by a shock effect triggered by a rock burst, a spontaneous rock fracture that is a common occurrence in mines. The incident comes after another miner died in a different mine in the Imereti region on March 26, and amidst a flurry of criticism levelled at mining companies for not abiding by environmental and worker safety standards. On April 3, Agriculture and Environment Minister Levan Davitashvili criticised Rich Metals Group (RMG), a company registered in the Netherlands that operates a large gold and copper mining operation in Georgia, for polluting three rivers adjacent to its mine. The minister said that the government gave the company, which has invested $300mn in Georgia and employs 3,000 workers, nine months to stop releasing pollutants into the rivers.
The interior ministry has launched a criminal investigation against Sakhakhshiri, Georgiatoday has reported. Those found responsible for violating safety regulations risk up to five years of imprisonment.
Politicians like President Giorgi Margvelashvili and Parliament Speaker Irakli Kobakhidze called for stricter safety rules and an improvement in labour standards in Georgia’s mining industry.
9.2 Major corporate news 9.2.1 Oil & gas corporate news
Officials from oil distribution company Gulf Albania are under investigation for money laundering, media in Tirana reported on April 22. The owner of the group is Alexandre Gogokhia, a Georgian citizen who is also wanted by the authorities in Tbilisi in connection with money laundering, broadcaster Top Channel r eported. According to its website, Gulf imports fuel from “the best oil refineries in Europe” to supply quality fuel to Albanian drivers. It is in the process of building over 70 petrol stations across the country. It is owned by an offshore company the Universal Energy Group registered in Delaware, the US, which also owns Sun Petroleum in Albania, Top Channel discovered, though says the ultimate owner is Gogokhia. The Albanian prosecutor’s office is now investigating the case. It is also searching for another citizen, Albano Aliko, a former manager of Gulf, who is suspected of being involved in a €5mn fraud scheme. Gogokhia has a long history of controversy. He is linked to Davit Kezerashvili, Georgia’s youthful former defence minister, who was detained at Nice airport back in 2013 when trying to board a plane to Tirana, as he was wanted in multiple corruption charges, but later walked free. In 2014, Gogokhia was involved in a scandal related to former mayor of Tbilisi Giorgi Ugulava, was who was charged with illegally accumulating money for the United National Movement (UNM). The authorities claimed Ugualva acted as the head of a criminal group, which included
38 GEORGIA Country Report May 2018 www.intellinews.com