Russia's ally Kazakhstan has pulled out of business deals worth billions of dollars in Georgia, a state company official said Thursday, the month after a conflict between Russia and Georgia.
State energy company Kazmunaigaz has abandoned plans to build a refinery in the Georgian port city of Batumi, while its subsidiary Kaztransgaz has cancelled the purchase of Georgian gas distributor Tbilgaz, the official said.
Referring to the refinery deal, the Kazmunaigaz official told AFP: "It's because of economic considerations. The capacity of the Rompetrol refinery is enough for us...The decision does not have any political subtext."
The project was valued at around $5 billion.
The official also said that Kaztransgaz out of economic considerations had cancelled its purchase of Tbilgaz, a deal worth an estimated $12.5 million when agreed in 2006.
Observers in the Russian media said the cancellations could be due to pressure from Russia.
Kazakhstan has voiced some support for Russia's military action in Georgia but has stopped short of joining Russia in recogniaing the independence of the two Georgian separatist regions at the heart of the conflict.