Georgian Product Back to Russian Market
11 November, 2011
Georgian Product Back to Russian Market

Agreement on establishing international monitors at internationally acknowledged borders of Georgia, achieved as a result of Georgian-Russian talks over Russia’s bid for the  World Trade Organization, is expected to incorporate Russia in the WTO, make Georgian state borders more transparent and pave the way for Georgian product back to the Russian market.

The agreement is initialed and pending the final endorsement by November 10, 2011,  Nino Kalandadze, Deputy Foreign Minister of Georgia, informed media at the traditional Monday briefing on November

7, 2011.

She accentuated that the document is a breakthrough, which can provide control over economic borders of Georgia within its breakaway territories of Abkhazia and South Ossetia. In August of 2008 Russia routed Georgia in a five-day war and acknowledged sovereignty of its rebelling regions.

Georgia, already the WTO member, claimed that the trade turnover within the conflict zone is completely non-transparent, which poses security risks and withhold its consent to Russia’s WTO bid [that can be approved through consensus, the basic WTO membership principle] unless Russia agrees to restore Georgian customs check-points.

Under international pressure Georgia agreed to establish international monitors on the non-transparent trade corridors in order to allow Georgia to have just resemblance of economic border control. Russia hesitated first but agreed after a week-long time out on November 2, 2011.

The monitoring includes deployment of private monitor companies on both sides of questioned trade corridors, and exchange cargo turnover information between Georgian and Russian sides through third party in electronic format.

Georgian government trumpeted this agreement as a victory of Georgian diplomacy as far as through international monitors Georgia gets a lever to restore a legal control over its economic borders completely after almost 20-year interval.

“This is an underlined achievement taking into consideration that cargo turnover between Georgian-Russian borders was completely uncontrolled for past years and was not subject to any supervision,” Kalandadze stressed.

However Georgian analysts speak of other benefit Georgia can get from Russia WTO membership of which Georgian government prefers to be tightlipped – getting back to Russian market. Georgian agriculture product, wine and mineral water hurled out of Russian market in 2006 under alleged quality problems can find their way back as soon as Russia enters the WTO gate. All potential quality and standard-related disputes will be settled through the WTO dispute council in frames of the WTO regulations.

“The WTO regulates free international trade turnover between its member-states and Russian embargo on Georgian product will be removed automatically as well as the US will have to revoke the Jackson-Vanik agreement to Russia,” Demur Giorkhelidze, an economic analyst, told Georgian Journal.

Russia accounted for roughly 56% and 45% of Georgian wine and mineral water exports respectively before the 2006 embargo. Sales of wine and mineral water decreased almost by 90% in 2006-2007 and even today after hitting new markets Georgian wine and mineral water sales lag by 30-40% behind the pre-embargo statistics.

Georgian government’s standpoint is that Georgian entrepreneurs would better focus on the US and EU markets with fairer game rules rather than Russian market that may be unpredictable for political reasons.

Giorkhelidze thinks Russian market cannot be replaced completely in the near prospect as hitting new markets requires lots of money that Georgia cannot afford at the moment.

According to Soso Tsiskarishvili, a political-economic scientist, Georgia by its consent gained trust of its western partners as well as slight prospects that “its relationships with Russia will become normal within the frames of international communication.” Moreover, WTO will take over Georgia’s burden in difficult trade relationship with Russia.

He worries however that the consent between Georgia and Russia over the WTO bid may affect relationship of Georgia with its breakaway republics if wrongly interpreted. To escape problems he proposes to create a social monitoring group that should supervise the process over the international monitoring of disputed borders and include Abkhazians and South Osetians together with the official Tbilisi in it.

Davit Narmania, Board Chairman of Center for Economic Problems Research, approves Georgia’s and Russia’s agreement over the WTO bid, since Georgia will have an effective tool in trade relationships with Russia that it lacked before. He regrets however Georgia failed to satisfy its claim for deployment Georgian customs officers on its disputed borders.

“That’s not just geographic or political borders, it is economic borders of Georgia and Georgia’s claim to restore official Tbilisi’s control there was quite legal,” Narmania elaborated.

Giorkhelidze counters that Georgia got as much as possible in the WTO talks since it was a part of big political game, the entire world was interested to have Russia [the largest economic power outside the WTO] within the global trade club and Georgia could not and should not oppose the international opinion.

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.
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
September 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