Minister of Economy and Sustainable Development, Natia Turnava and the Ambassador of Japan to Georgia, Imamura Akira, signed the Agreement between Japan and Georgia for the Liberalisation, Promotion and Protection of Investments.
The agreement envisages the introduction of legal protection mechanisms for investments carried out in both countries, which should facilitate the private capital movement, stimulate entrepreneurial initiatives, develop economic resources effectively and deepen economic relations between Georgia and Japan.
“By signing this agreement and through our active work, we will do our best to bring as many Japanese investors as possible into various fields of the Georgian economy to create new jobs especially in the post-COVID period, when we need active investments,”- Natia Turnava said.
According to the Minister, the negotiations on the agreement between the countries started in 2017. Since then, the Ministry of Economy and Sustainable Development, as well as the Ministries of Foreign Affairs and Finance have very actively worked. Up to six rounds of the negotiations took place, which eventually ended with the signature of the above-said agreement.
“This is a very important agreement that will create a strong framework not only to protect investment assets in Japan and Georgia, but also encourage businessmen to invest in foreign countries. The implementation of the agreement will be a very good message to Japanese businesses that the business environment in Georgia has been improving more and more. The agreement ensures the protection of investments and the liberalisation of new investments in Georgia. We have high hopes that Japanese-Georgian cooperation in this field will further develop,” - the Japanese Ambassador to Georgia, Imamura Akira, said.
Prior to the signing of the agreement, Natia Turnava met with the Japanese Ambassador to Georgia, Imamura Akira, and discussed the issues related to the deepening of trade and economic cooperation, as well as Japanese investment activity in the Georgian market.
It was noted that Japan is a considerable investing country for Georgia and investments implemented by Japan are of crucial importance. Particular attention was paid to the cooperation in such sectors as hydropower, “green hydrogen” production, infrastructure, agriculture, transport and transport corridor development, etc.
It was also mentioned at the meeting that there are 26 companies operating in Georgia with the participation of Japanese capital. According to Q3 2020 data, investments carried out by Japan in the Georgian economy amounted to $15.4 million and the main investment sector was energy. In the spring of 2020 one of the largest Japanese energy companies, TEPCO Renewable Power (TEPCO RP) invested in the Georgian energy system and acquired 31.4% of the shares of one of the largest projects.
The meeting highlighted the fact that the existence of a bilateral investment agreement between Georgia and Japan will become a significant legal basis and an additional incentive for Japanese investors to encourage investment in Georgia.
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