Training “Problematic Issues of Covenants Concluded between the Investor and the State, Shown with the Example of Georgia”

On November 27, 2020, the Association of Law Firms of Georgia organized an online training for its fellow members and covered the subject matter on: “Problematic Issues of Covenants Concluded between the Investor and the State, Shown with the Example of Georgia.” The training was led by Giorgi Svanadze, an ALFG member, Head of Legal Practice, EY Georgia.

The dynamic involvement of participants and giving and receiving their practical experience, got a discussion, arraigned in November, 2013, with respect to the amendment to the “State Property Law”, notably Article 20 (6) of the Law, quite an interesting. Predicated on the amendment, by any chance, an investor breaches the obligation, the state has the right to unilaterally terminate the contract and withdraw from it; hence, the property sold on the grounds of privatization returns to state ownership, and the investor is left with no reimbursement for the amount paid and the expenses incurred.

15 lawyers from ALFG sat in the training.