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
Doing business in Georgia has become easier than in America
According to the Doing Business 2019 report published by the World Bank, Georgia ranked 6th among 190 countries in terms of simplicity of doing business. This was an improvement over two ranks compared to last year.
Problems that foreigners frequently face in Georgia
The importance of Georgia as a tourism hub is growing year after 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.
Equivalent 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.
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