Tag Archives: Georgia

Russia econ problems hit Georgia

DEC. 18 2014, (The Conway Bulletin) — In an interview with Reuters, Georgian PM Georgy Margvelashvili said
that the downturn in the Russian economy had hit Georgia’s alcohol and water exports hardest. Russia allowed imports of water and wine from Georgia last year after a ban in 2006.

ENDS

(News report from Issue No. 213, published on Jan. 7 2015)

European parliament ratifies Georgia deal

DEC. 18 2014, (The Conway Bulletin) — The European Parliament in Strasbourg ratified an associated deal with Georgia which deepens economic integration. The deal is important to Georgia because it moves it closer to its aim of joining the EU. At the same time the breakaway region of South Ossetia announced it wanted a stronger union with Russia.

ENDS

(News report from Issue No. 213, published on Jan. 7 2015)

Bank of Georgia to buy PrivatBank

DEC. 5 2014 (The Conway Bulletin) – Bank of Georgia, which is listed on the London stock exchange and is the largest bank in the country, said it wanted to buy the Georgian subsidiary of Ukraine’s PrivatBank. PrivatBank is Ukraine’s largest bank. Bank of Georgia said that it had agreed a preliminary deal to buy the bank for $51m.

ENDS

(News report from Issue No. 212, published on Dec. 10 2014)

Georgian and Armenian currencies fall

DEC. 5 2014 (The Conway Bulletin) – The Georgian lari and the Armenian dram have fallen sharply against the US dollar. The lari hit its lowest level for 10 years and the dram its lowest level since 2006. The root cause of the collapse of the currencies is the weakening of Russia’s economy because of a collapse in oil prices and Western- imposed sanctions.

ENDS

(News report from Issue No. 212, published on Dec. 10 2014)

Georgia moves to stop IS recruits

DEC. 9 2014 (The Conway Bulletin) – Georgia announced new rules to try and prevent people moving through its territory en route to fight for the radical Islamic State group in Syria, media reported. On the same day, media reported another Georgian citizen from the Pankisi Gorge that borders Chechnya had been killed in Syria.

ENDS

(News report from Issue No. 212, published on Dec. 10 2014)

FDI jumps in Georgia

DEC. 9 2014 (The Conway Bulletin) – Foreign direct investment (FDI) in Georgia, vital for its economy, soared to $508m in the third quarter of 2014, its highest quarterly intake for six years.

The data from Georgia’s national statistics office also showed that China had contributed $149m, 29% of the total. This is double China’s previous record FDI injection in Georgia. By way of comparison, the entire quarterly FDI for Georgia in Q2 2014 was $151m.

These figures are good news for Georgia but it has to tread carefully.

Clearly an increase in FDI is good. Georgia’s economy is reliant on FDI as a major source of income. When Georgia and Russia fought a brief war in 2008, FDI dried up, hurting the economy.

But an influx of Chinese money poses new problems and new strains. China has opened a cultural office in Tbilisi and Southern China Airline now offers direct flights to Urumuqi in the west of the country.

Chinese companies, though, often prefer to fly in workers from China rather than hire local workers, straining relations with local communities.

Of course, Georgian policymakers will welcome the rise in Chinese investment. They must also manage it carefully.

ENDS

(News report from Issue No. 212, published on Dec. 10 2014)

Former Georgian minister takes role in Ukraine

DEC. 2 2014 (The Conway Bulletin) – Ukraine’s president Petro Poroshenko appointed a former health minister under ex-Georgian president Mikheil Saakashvili, an arch foe of Russia’s President Vladimir Putin, to his government.

Alexander Kvitashvili served as health minister under Mr Saakashvili from 2008 until 2010 and will now take over the same post in Mr Poroshenko’s government.

Although Mr Kvitashvili will not head a high-profile department it is nonetheless significant. Russia’s President Putin reviles Mr Saakashvili, Russia and Georgia fought a brief war in 2008, and any link between the current Ukraine government and the former Georgian government will probably irk him.

“I’ve been working on reforms in Ukraine for the last three months, but my love for this country has a much longer history,” Mr Kvitashvili said.

He has now taken Ukrainian citizenship.

Ukraine’s government is currently fighting a civil war in the east of the country. It has accused Russia of supply weapons and soldiers to the rebels.

Mr Saakashvili, currently living in New York, also said that he had turned down a post in Mr Poroshenko’s government. He said Mr Poroshenko had offered him the post of deputy PM but that he had turned down the position because he didn’t want to renounce his Georgian citizenship.

ENDS

(News report from Issue No. 211, published on Dec. 3 2014)

NATO keen on Georgia training centre

DEC. 2 2014 (The Conway Bulletin) – NATO re-affirmed it is looking to open a training centre in Georgia despite Russian threats. At a press conference, NATO director-general Jens Stoltenberg said: “No other third country can veto or try to stop partnership between NATO and a sovereign nation as Georgia.”

ENDS

(News report from Issue No. 211, published on Dec. 3 2014)

Ex-Georgian President charged again

NOV. 27 2014 (The Conway Bulletin) – Prosecutors in Georgia charged former president Mikheil Saakashvili with complicity in the murder of banker Sandro Girgvilani in 2006, media reported. Girgliani was killed after a row in a bar with interior ministry officials. Mr Saakashvili is living in self-imposed exile in New York.

ENDS

(News report from Issue No. 211, published on Dec. 3 2014)

Bosch opens Georgia warehouse

NOV. 27 2014 (The Conway Bulletin) – German engineering company Bosch said it would open a 1,600sqm warehouse, that’s about a third of the size of a football pitch, in Tbilisi to supply power-drill equipment to Georgia, Armenia and Azerbaijan. The opening of the Bosch warehouse is a vote of confidence in the region’s economy.

ENDS

(News report from Issue No. 211, published on Dec. 3 2014)