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
Georgian citizens are granted the right to work in France
The French Embassy in Georgia made remarks on granting Georgian citizens the right to work in France
The New York Times: Bitcoin declines but Georgia still bet on it
The New York Times has recently published an article about reasons, challenges and causes of generating Bitcoin in the former Soviet country Georgia.
EU to allocate € 13 billion for Eastern Partnership countries, including Georgia
The European Union together with the World Bank plans to allocate investment worth € 13 billion for infrastructure projects in the Eastern Partnership countries.
Anaklia Port and its importance for Georgia
In 2016, Anaklia Development Consortium was authorized to launch the construction of Anaklia Port.
Cryptocurrency mining threatens electrical network in Abkhazia
In the breakaway region of Akbhazia rampant cryptocurrency mining is threatening the shaky electrical network, reports an article of the news portal EuroNet.
Caucasus Wine University to be opened in Gurjaani
In the Kakheti region a new viticulture campus of the Caucasus University is in the process of planning.
Photos describing life of the poorest in Georgia
Fight with poverty should be among top priorities of every government in every country.
Training farmers to rescue the organic hazelnut production in Georgia
Even drizzling rain and unpleasant gusts of wind can’t prevent the farmers from coming and participating in the agricultural training.
Bleak times for organic farmers in Georgia – but there is hope
Organic hazelnut production is a delicate plant in Georgia that has emerged just a couple of years ago. Various pests, among them the Asian stink bug Parosana, trouble hazelnut farmers and menace their livelihood – even before their businesses could really take off.
Hybrid car imports are going through the roof in Georgia
Thanks to their fuel economy, the popularity of hybrid cars is increasing in Georgia, where fuel affordability is low and prices for fuel are unstable.
The New Year offer from MAQRO Construction - Apartments with unbelievable discounts and the parking spaces for FREE!
Location, green yard, spaces for various needs, experience of the construction company and parking space are the main important criteria for potential buyers of apartments.
Interview with the co-founder of Kiwi Vegan Café – the first vegan place in Tbilisi
Behind the Kiwi Vegan Café stands a group of activists who wants to raise Georgian’s awareness for animal rights and welfare.
Biblusi opens first shop for tourists - Georgian
The largest book shop in Georgia Biblusi opens the first shop specially designated to the needs and interests of tourists and named it Georgian.
Georgia improves by five ranks in the Prosperity Index
In the overall Prosperity Index rankings, Georgia has climbed by 5 positions from 85 to 80 when compared to last year. As such, Georgia is the best performing country in the CIS zone.
The future is bright for electric cars in Georgia
The numerous hybrid cars in the streets of Tbilisi cannot be overlooked. Entrepreneur Sulkhan Gvalia calls them “pagers”, referring to the predecessor of mobile phones.
Georgia’s fight against the big tiny enemy – Asian Parosana
It’s a tiny creature, but the harm it did to the Georgian agriculture sector was and still is immense.
New cable route: from Kobi to Gudauri in 15 minutes
On the 15th of December, cable transport is scheduled to be opened connecting Kobi and Gudauri.
Tourist boom in Gudauri – majority of hotels are booked by foreigners
Gudauri is among the most popular winter resorts in Georgia.
Medical tourism increases in Georgia
In the last 9 months, Georgia was visited by 19 500 foreigners for medical and recovery purposes.
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.
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
February 2019
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