Reporter London: Frontera representative in US lobbied for Georgian Dream’s interests
Frontera lobbied for Georgian Dream
The British outlet Reporter London published an article claiming that the American oil company TXN Energy (formerly Frontera) is lobbying in the United States for the lifting of international sanctions on the Georgian government.
According to journalist Thomas Rowley, by taking this stance, the company is defending the Georgian Dream regime, which is distancing itself from Western institutions and building closer ties with Russia.
The article includes a comment from Eka Gigauri, head of the organisation Transparency International Georgia, who spoke about the company’s CEO.
According to her, Mr Nikandros is “effectively defending those who have destroyed democracy in Georgia and created a business environment where only those close to the authorities can succeed“.
Gigauri noted that his lobbying activities in Washington clearly benefit the Georgian Dream government, which is now pursuing pro-Russian and pro-Chinese policies – something, she added, that cannot be aligned with American interests or democratic values.
The article states that Steve Nikandros, who has been involved in the oil and gas business in Georgia since 1997, sent a letter to Republican congressmen in September urging them not to support a bill proposing the withdrawal of diplomatic recognition of the Georgian government.
Reporter London writes that Nikandros’s letter also mentions a plan to resume $100 million worth of investments in Georgia, particularly in the development of oil and gas fields in the east of the country — which may indicate the company’s return after many years of legal disputes.
Background
Frontera is an American oil and gas company that has operated in Georgia since 1997, primarily at fields located in the Kakheti region. In 2017, the Georgian government terminated its contract with the company over its failure to meet obligations.
Frontera appealed to international arbitration, but in 2020 the court ruled in Georgia’s favour, finding that the company had no evidence of possessing oil or gas resources. Since then, Frontera has effectively ceased operations.
According to Reuters, Steve Nikandros, an American businessman with commercial interests in Georgia, has in recent weeks personally urged US lawmakers not to pass the MEGOBARI Act — a bill that could put pressure on the Ivanishvili government.
The outlet reports that lobbying on behalf of Georgia’s anti-Western government angered senior Republican congressman Joe Wilson.
Data from Open Secrets shows that Nikandros has donated more than $200,000 to Republican lawmakers and affiliated political committees and organisations.
The US House of Representatives passed the MEGOBARI Act on 6 May. The act requires the US president to impose sanctions on members of the Georgian regime, their supporters, and their family members.
According to the document, the MEGOBARI Act obliges the US president to sanction foreign nationals — including Georgian officials – who pose a threat to Georgia’s security and stability. The sanctions include visa restrictions and asset freezes.
On 6 September, The Hill, citing sources, reported that late last month Senator Markwayne Mullin persuaded Senate Majority Whip John Thune to exclude the MEGOBARI Act from the National Defense Authorization Act (NDAA) package. Mullin had also blocked an earlier request for the bill’s expedited passage earlier this year.
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