Economic Press Monitor February 12 - 18, 2023	Days:  04 11 18 25 04

economic & politics

BANKEBI DA FINANSEBI: “IN 2022, IN 10 MONTHS, 109,955 RUSSIAN CITIZENS OPENED BANK ACCOUNTS IN GEORGIAN COMMERCIAL BANKS”

February 17, 2023 - From February 24 to December 31, 2022, 109,949 Russian citizens opened accounts in Georgian commercial banks. Besides, accounts were opened by 6 legal entities (i.e. Russians opened 109,955 accounts in total).




REZONANSI: “SOON, SO-CALLED GUEST WORKERS WILL ARRIVE IN GEORGIA MASSIVELY”

February 17, 2023 - Construction sector is the first in Georgia, where the majority of those employed in major construction projects are foreigners, mainly Chinese, the newspaper says.

Shota Burjanadze, founder of Georgian Restaurateurs Association, says that a similar trend is expected in the HORECA sector, where salaries have increased by 50-200% after the pandemic.




TABULA: “SAAKASHVILI’S TRANSFER AND CONSIDERATION OF IMPOSING SANCTIONS ON IVANISHVILI – RESOLUTION OF THE EUROPEAN PARLIAMENT”

February 16, 2023 - The European Parliament adopted a resolution in connection with the state of health of ex-President of Georgia Mikheil Saakashvili. The document was supported by 577 MEPs with 33 votes “contra” and 26 abstained.




NETGAZETI.GE: “IF THEY DON’T GIVE US THE STATUS, LET THEM KEEP IT FOR THEMSELVES – KALADZE”

February 16, 2023 - Tbilisi Mayor Kakha Kaladze assures that the Georgian authorities “have done and are doing everything” to ensure receiving by the country of the status of EU membership candidate.

However, if the EU “will make a political decision not to give the candidate status”, “let them keep this status for themselves”, Kaladze declares.




FORBES GEORGIA: “BIDEN NOMINATED ROBIN DUNNIGAN AS US AMBASSADOR TO GEORGIA”

February 15, 2023 - US President Joe Biden has nominated Robin Dunnigan as the US ambassador to Georgia. The ambassador’s candidacy must be approves by Senate.




REZONANSI: “TEMUR CHKONIA, WHOSE BUSINESS HAS SPREAD ITS WINGS, CALLS ECONOMIC GROWTH AN ILLUSION”

February 15, 2023 - “We are under an illusion because of economic growth”, declared businessman Temur Chkonia. “Our economy is growing at the expense of the war”, but “this growth cannot be sustainable, since the war cannot last long”, he said.




TABULA: “EUROPEAN PARLIAMENT REGISTERED TEXT OF THE RESOLUTION, WHICH REQUESTS SANCTIONING OF IVANISHVILI”

February 14, 2023 - A version of the resolution has been registered in the European Parliament, which requests sanctioning of Bidzina Ivanishvili (billionaire founder of the ruling Georgian Dream).

Overall, 5 texts of the resolution have been submitted to the European Parliament, 2 of which speak about Ivanishvili’s political influence.




REZONANSI: “ECONOMISTS DEMAND REGULATION OF PRICES AND TRADE TRANSACTIONS BY THE LAW”

February 13, 2023 - Paata Kvizhinadze, member of the ruling Georgian Dream, first deputy chairman of the Parliament’s Fiscal Committee, does not exclude possibility of collusion on the local market regarding food prices.

“Why is there an 80% markup? This probably implies some kind of collusion”, Kvizhinadze declares.

macroeconomics & budget

BANKEBI DA FINANSEBI: “BUDGET OF BATUMI INCREASED BY 33.5M LARI AND AMOUNTED TO 318M LARI”

February 14, 2023 - Batumi City Hall declared that the city budget increased by 33.5 million and made up 318 million lari. In particular, financing of infrastructure development has been increased by 27.6 million lari, up to 124 million lari.

energy, oil & gas

BANKEBI DA FINANSEBI: “THE COMMISSION HAS APPROVED RULE OF CONNECTING POWER PLANTS UP TO 15 MW TO THE GRID”

February 17, 2023 - Georgian National Energy and Water Supply Regulating Commission has approved the rule of connecting small power plants with a capacity of up to 15 MW to the distribution network.

The newspaper explains that the new regulation allows investors to pre-determine costs and timing of connection to the electricity network.

conflict and court

FORBES GEORGIA: ““CREDIT SUISSE” PAID BIDZINA IVANISHVILI COMPENSATION OF $210 MILLION – “BLOOMBERG””

February 17, 2023 - Referring to Bloomberg, the magazine reports that Credit Suisse has paid Bidzina Ivanishvili (billionaire founder of the ruling Georgian Dream) $210 million in compensation. The Swiss bank did not specify, following which litigation this amount was paid.




FORBES GEORGIA: “GEORGIA LOST $76M ARBITRATION DISPUTE WITH “INTERRAO””

February 16, 2023 - Georgia has lost arbitration dispute of $76 million with InterRAO, which was considered since 2017 by the World Bank International Center for Settlement of Investment Disputes (ICSID).

Georgia also lost an investment lawsuit with InterRAO in the Stockholm Arbitration Tribunal.

companies

TABULA: “WHAT DOES THE RUSSIAN COMPANY OF OTAR PARTSKHALADZE PROMISE TO FOREIGN INVESTORS IN GEORGIA?”

February 16, 2023 - Otar Partskhaladze, Georgia’s former prosecutor general, owns 50% in the Russian company Moscow Business Brokerage.

Other stake owners in the company are Russian citizens Nikoloz Kartozia (15%) and Victoria Bokeria (35%).




FORBES GEORGIA: “WITH SUPPORT OF “SAKARTVELOS BANKI”, COMPANY “GAMMA” WILL OPEN BUSINESS CENTER COMPLYING WITH INTERNATIONAL STANDARDS”

February 15, 2023 - Construction and realty company Gamma will open a new business center in Tbilisi, on the Chabua Amirejibi highway (Vake-Saburtalo district), which will be located on 12,000 square m.

The project cost makes up $20 million, $2.5 million of which is a loan from Sakartvelos Banki (Bank of Georgia).




BANKEBI DA FINANSEBI: “INTERNATIONAL TECH-COMPANY “THOUGHTWORKS” WILL COOPERATE WITH “TBC” FOR THE FIRST TIME IN THE REGION”

February 14, 2023 - The international technology consulting company Thoughtworks will cooperate with Georgian TBC Group. This is the first partnership in the region for Thoughtworks.




FORBES GEORGIA: “WITH SUPPORT OF “SAKARTVELOS BANKI”, 4-STAR “EPIGRAPH TOWN HOTEL” WAS OPENED IN TBILISI”

February 14, 2023 - A 4-star Epigraph Town Hotel was opened on Tabukashvili Street, in the center of Tbilisi. The 31-room hotel is located on area of 778.6 square m.

transport & communications

BANKEBI DA FINANSEBI: “BATUMI AND POTI PORTS HANDLED 12.4M T OF CARGO IN 2022”

February 13, 2023 - In 2022, Georgian ports handled 12.4 million t of cargo. If compared with 2021, the volume has increased by 12.8%, the newspaper reports.

international cooperation

BANKEBI DA FINANSEBI: “TRACECA COUNTRIES UNDER CHAIRMANSHIP OF GEORGIA WILL WORK OUT A SINGLE TARIFF POLICY”

February 13, 2023 - Proceeding from the existing geopolitical situation, priorities have been revised and greater priority has been given to the Transport Corridor Europe-Caucasus-Asia (TRACECA), says Asset Assavbayev, secretary general of the Permanent Secretariat of the TRACECA Intergovernmental Commission.

During Georgia’s TRACECA chairmanship (2023), we plan to elaborate unified tariff approaches to the direction of container transportation, Assavbayev reported.

agriculture & food

BANKEBI DA FINANSEBI: “THERE ARE ALWAYS QUESTIONS ABOUT PRICE OF BREAD, BUT ALL STORES HAVE THEIR OWN PROFIT MARGIN – DOLIDZE”

February 15, 2023 - Malkhaz Dolidze, chairman of Georgian Bread Producers Association, declares that “from the point of view of food security, certain wheat reserves exist in the country today”. I can say that we have a reserve for 34 months, which makes up approximately 65,000 t, he specifies.