Georgian Wine And Water under Russian Spotlight
07 March, 2013
Georgian Wine And Water under Russian Spotlight
While Georgian wineries, spirit distillers and mineral water companies are expecting results of Russian inspection, scrutinizing sanitary standards of Georgian enterprises in order to admit Georgian product back to Russian market, Georgian economic analysts recommend solution of the quality issues through the World Trade Organization. A group of Russian experts having inspecting technical and sanitary conditions of Georgian alcohol drink and mineral water producer enterprises at spot past week, left Georgia on February 28, 2013, leaving companies in uncertainty until the
final verdict whether or not the inspected enterprises respond to Russian standards is drawn out.
The inspection was sent by Genadi Onishchenko, Head of RospotrebNadzor, a sanitary body of Russian Federation, to Georgia after the Georgian delegation met with Onishchenko in Moscow early this past February in order to discuss return of Georgian product to Russian market after six-year trade embargo. Onishchneko hurled Georgian wine, mineral water and agriculture product off Russian market under alleged quality problems thus inflicting a huge impact on Georgian export dependent on Russia by around 18% by 2005. The key victim was wine and mineral water as Russian share in their export accounted for around 70 and 60% respectively. Commensurately wine and mineral export dropped by similar figures in 2006. Some wineries even reported of 90% drop in sales. Gradually the industry diversified its export markets and recovered but the biggest wine export figure making 22 million bottles past year is far below the pre-embargo data accounting to around 57 million bottles out of which 52 million came on Russia.
And only after Russia’s enrollment at World Trade Organization (WTO) in 2012 Georgia, already a WTO member, got a chance to get back to Russian market as the WTO prohibits any kind of trade barriers between the members of this reputable international trade club. However, Russia lingered to open up its market due to very quality issues and required to hold special at-spot-inspection of enterprises willing to export to Russian market to double-check whether or not they respond to Russian standards. Official Tbilisi appeased.
Out of 80 Georgian companies submitting request on reappearing at Russian market Russian experts inspected 40 alcohol drink producers [wineries and brandy producers] and four mineral water companies at the first phase. Inspection is free of charge and all companies aspiring to Russian market will be inspected, Ministry of Agriculture (MOA) informs. According to Giorgi Margvelashvili, Director General of Tbilvino winery, the inspection includes two phases. This first one was aimed on checking technical and sanitary conditions of enterprises and after positive results Russian experts will hold the second phase to test the quality of wines themselves.
However, neither government nor companies can name the exact timeline when Russian inspection will provide with the answer on this first examination or how long the entire inspection procedure will last. They just hope for better.
“At first sight they seemed pleased when checked the winery but I cannot say anything for sure, the final result will be informed to MOA,” Margvelashvili told Georgian Journal.
Mikheil Saakashvili, President of Georgia, gave a negative outcry to the Russian inspection as of insulting one for product of other countries enter without this kind of at-spot inspections to Russia.
“Are we still in the Soviet Union when Russians used to arrive to Georgia and we had to run to and fro to please them and scratch them bellies, are not we supposed to leave this epoch behind?” Saakashvili inquired in confusion affronting new government, wineries and even Onishchenko in consequence. The latter nearly canceled the inspection but changed his mind eventually as after shift of power Saakashvili with almost expired office term and belonging to the ex-ruling party acts as an opposition and is no decision-maker.
Margvelashvili argues that other countries, Ukraine for example, also do similar inspections and there is nothing unusual. But economic analysts find completely redundant the said quality inspection of enterprises that export their product world over and have international quality certificates. As a matter of fact Georgian wine and mineral water companies who managed to hit EU market [after Russian market was closed] put their enterprises in full compliance with the state-of-the-art standards. Besides, Georgian law obliges the export-orientated companies to streamline their production standards and technologies with the EU standards.
Some analysts regret that Georgian authorities do not use the WTO format to solve the problem more effectively.
“I cannot understand this here quality inspection of Russian experts,” Demur Giorkhelidze, an economic analyst, said in the interview to Georgian Journal. “Russia has such a strong border control that no bad product may penetrate there. If nevertheless they have quality pretensions with our companies, that export to the EU by the way, let solve the issue through the WTO quality dispute council that will make unbiased conclusion. This process will be shorter and stricter. I think it is our authorities’ defect that they cannot use the WTO lever properly.”
Irakli Lekvinadze, an economic analyst, agrees that the said inspection is redundant but reminds that Russia never complies with the rules of international organizations and the diplomatic way of solving the quality issue on the state-to-state level can be more effective.
But all assess Saakashvili’s statement as harsh and undermining the underway Georgian-Russian trade restoration process.
“Fortunately, nobody takes him seriously anymore,” Lekvinadze said.
Print
Other Stories
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,
Winemakers to produce Kvanchkara in its place of origin - Racha
Khvanchakara is a semi-sweet Georgian red wine which originates from Racha, in the western part of Georgia. Kvanchkara is made of two types of grape Mujuretuli and Aleksandrouli.
The level of Georgian wine and Chacha exported has increased
The National Wine Agency of Georgia has recently published statistical information about the level of Georgian wine and Chacha exported between January and July, 2018.
New fire engines to be Manufactured in Georgia
The Acting Head of the Emergency Management Agency Shalva Khutsishvili said that the old Zili fire engines (which were made in the USSR) will be phased out and replaced with new ones, manufactured in Georgia.
Georgia witnesses a record number of tourists
The Georgian National Tourism Administration publishes statistical information about international visits to Georgia.
Canadian businessman plans to build a hotel in Bakhmaro
Canadian businessman Vadim Malishev plans to build a hotel in Bakhmaro resort, Guria, in the western part of Georgia.
Coffee Factory will open in Tbilisi in October
The first coffee factory (which will be located on the Kakheti highway) in Tbilisi will open in October.
Places in Georgia where real estate is the most expensive
The real estate market in Georgia is growing annually. In Tbilisi as well as other regions of Georgia new developments are increasingly taking place.
How much does a vacation cost in Tbilisi?
It is the middle of summer and those who have not yet taken a vacation are looking for an appropriate place for sure!
The price for extreme sports in Georgia
Georgia offers a variety of options to extreme sport lovers.
The number of Georgians who own property abroad increases
The number of foreign properties owned by Georgians is increasing.
How much does Taxi cost in Tbilisi?
Stories how Taxi drivers try to deceive passengers and charge them with more money than they should pay are known for everybody all over the world.
What are the highest paid areas in Georgia
According to the data collected by the National Statistics Office of Georgia in the first quarter of 2018 the highest paid jobs in Georgia are found in the financial and insurance fields.
PHOTO OF THE DAY
Exchange Rates
GEL Exchange Rate
Convertor
19.09.2018
20.09.2018
USD
1
USD
2.6188
2.6179
EUR
1
EUR
3.0593
3.0606
GBP
1
GBP
3.4414
3.4517
RUB
100
RUB
3.8673
3.9087
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
2.6179
EUR
1
EUR
3.0606
GBP
1
GBP
3.4517
RUB
100
RUB
3.9087