Georgia and Russia Seem Intent on Resuming Trade
01 November, 2012
Georgia and Russia Seem Intent on Resuming Trade

Georgian wine and water may reappear on Russian market soon as both countries appear ready to resume trade relations. Georgian wine and spirit producers gird loins to undertake the quality-related procedures put out by Russian side in order to admit Georgian product back after 7 years of trade halt.

Genadi Onishchenko, Head of RosPotrebNadzor, the chief sanitary service of Russian Federation, sent inviting signals past week and official Tbilisi said yes. 
Based on Russian media, Onishchnko appears ready to discuss applications of

Georgian wine and mineral companies in order to admit them on Russian market if new Georgian government does not hamper the process. He also reminds Georgian entrepreneurs that the essential precondition for approval is arrival of trusted Russian specialist in Georgia to carry out on-spot inspections of applicant companies. 
In response, Davit Kirvalidze, a new Minister of Agriculture of Georgia, stated quite clearly on October 29, that Georgian government is interested to support the idea. 
“Georgian side will not hamper the process, moreover, we are interested to support each company willing to get to Russian market as much as possible. We are ready to discuss creation of working group, get experts [from Russia] if they arrive and accelerate this process,” Kirvalidze said adding that the entire world fights for getting a foothold at Russian market and it is important to Georgia to get there too. 
Russia hurled Georgian agriculture product [including wine, water, fruit and vegetables] off the market in 2006 for alleged quality problems. However economic and political analysts believed the real reason behind the trade embargo laid in political tension between countries aggravated since 2004 after the Rose Revolution government took the office term and chose a verbally incontinent diplomacy. Georgian President Mikheil Saakashvili sent offensive messages [even calling humiliating nicknames to Russian president] to the Kremlin and Irakli Okruashvili [now in exile], ex-economic minister of Georgia, said Russian market was suit to sell even fecal masses. 
The abusive policy led to a short-lived war with Russia in August of 2008 when Russia routed Georgia and occupied 20% of its territory that ended up by seizure of diplomatic relations between the two countries. Only in fall of 2011 when Georgia, already a member of the World Trade Organization (WTO) and able to veto Russian enrolment within the WTO, admitted Russia to the global trade club the trade embargo was canceled automatically [as far as the WTO regulation prohibits any trade restrictions between its member-states]. However no actual trade resumption ensued in practice for sides still remained quite hostile.
On the one hand the special quality-related procedures required by Onishchenko would never end even to such reputable companies as Davit Sarajishvili Brandy and IDS Borjomi International [producing Borjomi mineral water] both holding number of internationally acknowledged quality certificates and awards allowing both companies to export their product to the most pretentious EU market. 
On the other hand Georgian ex-government pressed on the business latently to prevent their appearance at Russian market. For example Borjomi that filed its application at Russian sanitary body as soon as Onishchenko verbally lifted embargo in summer of 2011 makes no comment on the issue for around a year. 
Sarajishvili behave more bravely. It has been permanently reporting how the application procedures were progressing if it can be said so as far as the application was practically frozen since past fall in spite of the fact that Onishchenko personally approved the Sarajishvili brandy as Elguja Bubuteishvili, Head of Sarajishvili Company, said in the interview to Georgian Journal. According to him, the only missing factor was the intergovernmental agreement. 
Due to the similar reason most companies inquired by GJ since fall of 2011 appeared uncertain to reappear at Russian market as found it risky for political reasons. Entrepreneurs still remember losses they faced when the market closed down in 2006 and Georgian export almost by 90% depending on that market went flat. Although nobody denied that Russian market [been traditional to Georgia for centuries in fact] still lured Georgian companies for their product was popular and sold easily unlike the EU market. 
“I would like to get back to Russian market as 90% of my sales came on Russia before embargo, but I prefer to wait,” Shalva Khetsuriani, President of Khetsuriani Cellar, told GJ in spring. So did Nabeghlavi mineral water and Tbilvino. 
The shift of power encouraged Georgian entrepreneurs to think of getting back to Russian market especially after Onishchenko’s last message. 
“Russian experts inspected my enterprise two months ago and approved everything, potential clients from Russia are already here willing to take my product but am still expecting for the final answer that depends on decision of governments I believe,” Bubuteishvili said this time. According to him, he has trustful information that Sarajishvili brandy is already on sale in Moscow restaurants but he has no idea how the product achieved that place. 
“I plan to submit an application, am just finding out what papers are necessary,” Khetsuriani, been quite wary for a long period, said decisively this time. However he expects the approval procedure to be long and tiresome due to Russian red-tape. 
Demur Giorkhelidze, an economic analyst, believes now when the governmental pressure is removed the trade restoration issue between Georgia and Russia will go smoothly in spite of the notorious Russian red tape. 
“Now the issue will be solved automatically as creation problems to trade for counters according to the WTO regulation,” he said adding that Georgian entrepreneurs who had sluggish competition years ago at Russian market should be prepared to a strenuous competition now as Russian market changed a lot and the best product of the world infested it lately. 
“ But it still keeps in memory our product and Georgian entrepreneurs who need huge investment to advertise their product on the EU market, may reach similar result by much less efforts in Russia as they miss familiar Georgian product,” He said.

Print
Other Stories
Inovative and reliable online shop in Georgia - Momitane.ge
Status of Georgia as a business and tourism interesting country is growing from year to year.
Tbilisi TV Broadcasting Tower – Better than the Eiffel Tower?
It is planned to renovate the Tbilisi TV Broadcasting Tower, one of the landmarks in the capital.
Georgian Fusion Menu by The Biltmore Hotel Tbilisi
5,895,914 international visitors have visited Georgia between January and August of 2018. Compared to the previous year the number has increased by 12.2 per cent.
Advertising of gambling and lucrative games may become banned in Georgia
Advertising of gambling and lucrative games may become banned in Georgia. Those who violate the new rule would be fined GEL 10 000.
Lebanese café-lounge Beirut opens in Tbilisi
What is necessary to organize an unforgettable event? – Fun, emotions, lots of surprises, good music and delicious menu.
Georgia second among the fastest growing tourist destinations in Europe
Georgia is among the fastest growing tourist destinations in Europe. The data is published by the UN World Tourism Organization.
Bitmain launches world digital mining summit in Tbilisi, Georgia
Bitmain CEO Jihan Wu and Roger Ver, CEO of Bitcoin.com Head Speaker List featuring Circle, DEX.top and Genesis Mining when Digital Mining Leaders Convene In Tbilisi on September 21-23
GAZELLE FINANCE GEORGIA AND TBC BANK HELP THE WESTERN REGIONAL CENTER OF MODERN MEDICAL TECHNOLOGIES EXPAND ACCESS TO QUALITY HEALTHCARE SERVICES IN KUTAISI, GEORGIA
TBC Bank and Gazelle Finance have teamed-up to support Medical City, a leading healthcare provider in the western region of Georgia to launch the Western Regional Center Of Modern Medical Technologies.
Equiavlent to buried treasure – resources that are underused in Georgia
For 2018 the IMF Commission has forecast an annual economic growth for the Georgian economy of about 5,5%.
Does the quality of Georgian wine increase and how the export affects it
If we look at the data collected about modern Georgian wine, we will find out that the Georgian wines produced between 2015-2017 are much better in terms of their quality and Oenologic features rather than the wines produced between 2009-2011.
Japan simplifies the visa requirements for Georgian citizens
Diplomatic and economic relations between Georgia and Japan are now moving to a new phase. Recently Japan has decided to simplify the visa requirements for Georgian citizens.
M&S (Marks and Spencer) and H&M collections to be produced in Georgia
Garments manufacturer MGMTEX will start production of the M&S and H&M trendy collections from this September.
The World Digital Mining Summit to be held in Georgia
The summit is scheduled to take place between 21st-23rd September in the Hualing Hotel, Tbilisi, Georgia.
Galt and Taggart - Tourism Boom Continues in Georgia
Tourism has become one of the key drivers for the Georgian economy. Galt and Taggart has recently published research about the Georgian tourism sector in the first half of 2018.
"The worst dream for Putin is that Russians want to live in Georgia"
This year, visitors to the Adjara region would notice that there is a boom in construction in and around Batumi.
Underground gas storage facility to be built in Georgia
KfW, a German government-owned development bank signed a EUR 150 million promotional loan with the state-owned Georgian Oil and Gas Corporation (GOGC) for the construction of the first underground gas storage facility in Georgia.
New gambling rules for Georgia
Georgian lawmakers are preparing a new draft law relating to online-casinos and gambling that will seek to curb gambling addiction in Georgia.
How expensive is it to visit Georgia?
The Georgian Lari (GEL) is the official currency of Georgia and is the only legal means of payment in the entire territory of Georgia.
Trade with the EU and the Commonwealth of Independent States (CIS) has grown significantly
Trade with the EU and the CIS has grown by 26% and 33.5 % respectively, says GeoStat, the Georgian National Statistics Office.
The unemployment rate decreases in Georgia
The unemployment rate decreased in Georgia by 1,9% and amounted to 12.1% in the 2nd quarter of 2018 compared with the previous quarter,
Memorandum of Understanding to be signed between Georgia and Malaysia
According to the Georgian Ambassador to Malaysia Nikoloz Apkhazava, Georgia plans to sign a Memorandum of Understanding (MoU) with Malaysia.
“Blauenstein Georgia” due to expand in Georgia
“Blauenstein Georgia” is planning to open more shops in Georgia. It is an agriculture company that sells meat products, meat and convenience food.
The amount of Direct Foreign Investment rises in Georgia
According to the information of the National Statistics Office of Georgia, the amount of direct foreign investment in Georgia has risen
It’s going to get  harder for foreigners to get residence permit in Georgia
It’s going to get harder for foreigners to get permit of residence in Georgia.
Mziuri Park in Tbilisi to be renovated soon
It was the dream of prominent Georgian writer Nodar Dumbadze that when the original Mziuri park was constructed and opened in 1892 that it should be a park for children,
PHOTO OF THE DAY
Exchange Rates
GEL Exchange Rate
Convertor
12.11.2018
13.11.2018
USD
1
USD
2.7146
2.7166
EUR
1
EUR
3.0800
3.0602
GBP
1
GBP
3.5325
3.4900
RUB
100
RUB
4.0430
4.0131
Other Stories
Recently Toyota rolled out Global Campaign under this slogan that reflects the Olympic and Paralympic Spirit of Encouragement,
A couple from Switzerland combines Swiss tradition and technology with Georgian products. Their cheese is made in the Georgian mountains and sold in local stores and hotels.
It has been more than five years since the residents of Lilo village, near Tbilisi, cannot open their windows.
63 000 GEL was received by the Georgian Agro Export Group which is just a small part of the European Neighbourhood Programme for Agricultural and Rural development.
Georgian entrepreneur Guka Tavberidze, who runs his own business in the UK and does it quite well, has been invited by BBC
The grand opening of 7-star The Biltmore Hotel Tbilisi took place in Georgia’s capital on July 31.
DUSHETI, Georgia – The Georgian government and the World Bank will allocate USD 5.6 million (12 million GEL) to fund
A new Georgian clothing brand named Person has emerged in Georgian market.
Georgia is in the midst of an economic maelstrom, Euronews reports.
Situation at Georgia’s mineral water market is interesting: over the last year, the volume of export has grown by 56 percent. According to “GeoStat”, over $114 million worth of mineral water was sold
GEL Exchange
USD
1
USD
2.7166
EUR
1
EUR
3.0602
GBP
1
GBP
3.4900
RUB
100
RUB
4.0131
November 2018
Mon Tue Wed Thu Fri Sat Sun
1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30