The Republic of Georgia, a former member of the Soviet Union, has encouraged American investors to enter and help energize their economy. Unfortunately, this may just be theatrics as American real estate developer Iconia Capital LLC has found their project in the country’s capital plagued by corrupt government and court elements.
TBILISI, the Republic of Georgia, March 5, 2019:
The move to enter an emerging market country, who claim that they would like to be a hub of international business, seems like it would be a win-win for all involved. Unfortunately, American real estate developer Iconia Capital LLC, who specializes in designing, financing, and building apartment complexes and office buildings, has found out this is not necessarily the case.
Responding to the Republic of Georgia’s call for American investment, the investors of Iconia Capital did everything required under local law to begin work on a building project over four years ago, only to find themselves terrorized by a group of politically connected opponents: and discovering that the Georgian government’s will to protect or assist was small to non-existent.
Iconia Capital LLC CEO Seth E. Char points out, “In 1994, a bilateral investment treaty was signed between the United States and Georgia, which guarantees the rights and protections of American investors operating in Georgia. Under this international agreement, Georgia has an obligation to treat American investors fairly, if not favorably, as well as offer security for the investors and their projects in the country.”
A growing number of American political leaders are echoing Char’s sentiments.
U.S. Senator Brian Schatz, in reference to a complaint registered by Iconia Capital regarding their treatment by the government and courts of Georgia, wrote “It is important to protect U.S. citizens who are conducting business overseas and for foreign governments and businesses to honor their contractual agreements.”
Due to the endless illegal attacks on the investors’ business, and with the government’s refusal to act, Iconia Capital LLC officially initiated legal proceedings against the Republic of Georgia on Monday, Nov. 5 2018 by submitting a Notice of Arbitration under the United Nations Commission on International Trade Law (UNCITRAL) Arbitration Rules. The notice, which is backed by over 500 pages of evidence, is demanding financial compensation of 10 million USD.
While they wait for the next step in these legal proceedings, one thing is abundantly clear – U.S. businesses should not consider investing in the Republic of Georgia, until their courts, politicians, and police prove themselves to be able to abide by their own legal obligations to protect American guest investors in their country, as required by international law.
For more information be sure to visit www.iconiacapital.com.
Phone: +995 593 40 74 70