Bendukidze’s politics commendably uncomplicated

The Messenger, Georgia
messenger.com.ge
Sept 29 2004

There is increased concern in the Georgian media that the government
is planning to ‘sell the Georgian economy to the Russians.’ This
refers to government plans to privatize what are considered strategic
state assets, including gas pipelines, energy assets and ports.

A Gazprom delegation was in Tbilisi last week to observe the
investment climate here, and there is speculation that the Russian
energy giant wishes to buy Georgia’s main gas pipeline, which would
allow the company to transport gas from Iran’s gas fields to Russia.

During an interview with the Russian newspaper Kommersant, Minister
of Defense Giorgi Baramidze stated that Russian state companies would
be able to buy Georgian state assets. “I have in mind the main gas
pipeline, which connects Russia with Armenia via Georgia, as well as
the electricity transmission system and Georgian ports.”

What is surprising about all this is that before the Rose Revolution
the main accusation against Shevardnadze from the former opposition,
which is now in the government, was the fact that he was opposed to a
Western orientation, evidence of which was his government’s decision
to hand over parts of the Georgian energy sector (such as Telasi) to
Russia.

At the time it was suggested that the main Georgian gas pipeline
might be sold to Gazprom, but this was vehemently opposed by the then
opposition, which saw it as a ‘stab in the back’ for the Western
Shah-Deniz project. Not only would such a move negatively affect the
construction of the Baku-Tbilisi-Ceyhan gas pipeline, they said, it
would mean losing the chance to gain freedom from Russia in terms of
energy.

Today, however, the architect of the government’s new economic
policy, Minister of Economy Kakha Bendukidze, has placed the
privatization of state objects at the center of his policy, and he is
unconcerned who buys particular objects. What is important for him is
not whether they are Russian or of any other nationality, but that
they invest in the country and boost the economy.

While Bendukidze states that this is nothing more than good economics
and that the government does not take part in the privatization
process, which should remain transparent and apolitical, some
analysts argue that selling Georgia’s main gas pipeline to Gazprom,
which is part owned by the Russian government, cannot but have
political ramifications.

This has led the Georgian media to speculate that the invitation to
Russia to buy Georgia’s state assets must be politically-motivated,
at least in part. Russia will get its pipeline, the argument runs,
but must speed up its withdrawal of Russian military bases in Georgia
and change its position towards the separatist regions of South
Ossetia, no longer impeding Georgia’s efforts to restore the
country’s territorial integrity.

Many critics are concerned that if this is indeed the case, then the
Georgian administration is playing a dangerous game; and the
country’s strategic state assets may end up in Russian hands, but
without any change of stance regarding Georgia’s conflict zones, nor
any prospect of an early closure of Russian bases. In the meantime,
Georgia’s administration could seriously damage its relations with
the West.

Such a view is put forward by the newspaper Rezonansi: “The endless
arguments connected with Baku-Tbilisi-Ceyhan project, unclear talks
about gas exports from Iran, with which we damage Shah-Deniz gas
export project, the discrimination of TRACECA corridor, the
discussion of the issue to give gas pipeline to Russia – these are
mistakes that are useful only for one side and this is the country
which has exploited us for more then 200 years.”

However, Minister Bendukidze argues that it is a mistake to think in
terms of pro-West or pro-Russia when it comes to making economic
decisions about Georgia. Newspaper Akhali Taoba quotes him as
stating, “Our business is to take care of ourselves. It is necessary
to lead pro-Georgian politics and the pipeline privatization to be in
expected norms for the country.”

“Because of a pro-western position we denied Gazprom permission to
transport gas to Turkey, but Gazprom built a pipeline at the bottom
of the Black Sea and exported gas to Turkey anyway, and Georgia lost
the transit income. Now, if the Shah-Deniz group does not buy the gas
pipeline, the government will sell it to Gazprom,” he adds.

Bendukidze’s politics are commendably uncomplicated. His policies are
motivated not by seeking to play the big global game, but simply by
seeking to develop the Georgian economy, and hence to create jobs and
increase the quality of life of Georgians. If Gazprom appears as the
only potential buyer of Georgia’s pipeline, the minister says, and
the privatization will help boost the economy, then the government
should not hesitate in allowing it to do so.

Although Bendukidze has come in for a great deal of criticism in the
Georgian media recently, his policies are designed to improve the
lives of ordinary Georgians and should be welcomed.