Georgia Removes Offshore Intermediaries in Azerbaijan Power Deals
Georgia Scraps Offshore Intermediary in Azerbaijani Power Imports
Georgia has eliminated the use of offshore intermediary companies in its power imports from Azerbaijan, following years of investigative reporting on inflated costs and connections to prominent businessmen.
According to reporting by Hetq, the Tbilisi government had long relied on secretive offshore entities to facilitate electricity purchases from its neighbor, a practice that obscured pricing and benefited connected intermediaries. The decision to scrap these intermediaries represents a transparency shift in Georgia's energy sector.
The move comes after sustained scrutiny of how government contracts were structured and which parties profited from the arrangements. The change is expected to provide clearer pricing mechanisms and reduce opportunities for cost inflation in power importsβa significant expense for Georgia's budget.
