Ukrainian unrest challenges Georgia
30 January, 2014
Ukrainian unrest challenges Georgia
Georgia expects repercussions from the unrest in Ukraine, one of its major political and economic allies in the former Soviet Union, especially regarding European Union aspirations. Ukraine is the Georgia’s third most important trade partner, receiving 7% of its exports and sending 8% of its imports.
Moreover, it provides the leading export market for agricultural products such as wine and citrus, and almost replaced the Russian market when Russia imposed an embargo on Georgian agriculture products in 2006. And it contributes
significantly to tourism; after three quarters of last year an estimated 79.5 thousand Ukrainians had visited Georgia, an increase of 69% over the previous year. Trade turnover with Ukraine averages a billion USD yearly.
Prolonged turmoil in Ukraine will affect Georgia both politically and economically, diminishing exports and imports. Already the Chamber of Commerce of the Autonomous Republic of Achara is warning Georgian businesspeople about potential jeopardy to their interests in Ukraine. So far wine producers report no difficulties, but do not rule them out in future.
However, there are positives. In response to developments in Ukraine, the EU has pushed forward to the end of this summer the date for Georgia to sign its association agreement with the EU, meaning freer Georgian access to European markets.
“The Ukrainian scenario forced EU to step up and engage with Georgia while Russia is busy,” Soso Archvadze, an economic analyst, told Georgian Journal. “Now the situation is who will precede who to enhance control in Georgia and in the entire post-Soviet region generally. If the endorsement process would have been protracted longer it might have become more unpredictable.”
However, Georgia has to pass an endurance test. Neither governmental nor non-governmental sectors doubt that Russia will increase pressure on Georgia once Ukraine is stabilized and the Sochi Olympics are over.
Georgian government, however, reassures that Russia has less leverage on it than on Ukraine, and nothing will divert it from its EU course, but some analysts find the argument naïve. Georgia may not be dependent on gas from Russia, but the latter’s investments in Georgian electricity are significant.
Archvadze fears that if Ukraine ultimately opts for Europe, an enraged Kremlin will use Georgia to retaliate against Europe, which meanwhile will avoid direct confrontation since it is dependent upon Russia for gas by some 26%, and has vital yearly exports to Russia valued at around half a trillion USD.
Demur Giorkhelidze, an economic analyst, believes Georgia’s expectations of the EU market are exaggerated since Georgian production is underdeveloped and the country has poor export potential. “We already have a preferential [GSP+] trade regime with the EU that allows more than 7 thousand products to be exported to Europe, but Georgia cannot fill these quotas,” he said. He expects that once trade with the EU is unhindered, its exports will flood Georgia, and government really has to think about how to boost local production to compete.
“The EU is not a charity organization and of course countries with high production and developed exports, particularly Germany, will benefit from their high quality technology and products” to make a big move into the Georgian market, he suggested.

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.
Innovative and reliable online shop in Georgia -
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 Head Speaker List featuring Circle, and Genesis Mining when Digital Mining Leaders Convene In Tbilisi on September 21-23
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.
Exchange Rates
GEL Exchange Rate
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
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