10 July 2019, 09:10

Economists tell about implication for Georgia of Russia's sanctions

The ban on the import of Georgian wine into Russia may lead to export drop by 200 million US dollars a year, Georgian economists believe.

The "Caucasian Knot" has reported that Russian State Duma MPs voted for the imposition of economic sanctions against Georgia in the form of a ban on the import of Georgian wine and water, as well as on money transfers.

The sanctions were imposed after Giorgi Gabuniya, a presenter of the "Rustavi-2" Georgian TV Channel, had obscenely addressed Vladimir Putin.

Economists have agreed that a ban on the delivery of goods to the Russian market would have a negative impact on Georgian economy, since the Russian market is the second most important for the exporters of Georgian wine. During the year, Georgia may lose up to 200 million US dollars, experts believe.

Mikhail Tokmazishvili, a former board member of the National Bank of Georgia, has noted that inflow of foreign currencies will decrease due to the ban on the export of wine to Russia, and a decrease in the number of tourists, which may affect the exchange rate of the lari, the Georgian national currency.

Demur Giorkhelidze, an economist, believes that sanctions may affect the lari's exchange rate, which is already falling because of "fundamental problems of the Georgian economy."

Giorgi Kepuladze, the chairman of the NGO "Society and Banks", has linked the fall in the exchange rate of the lari with the government's wrong economic policy.

"We are watching a panic buying of foreign currencies. The solution is that we should not depend on markets of other countries," he has explained.

This article was originally published on the Russian page of 24/7 Internet agency ‘Caucasian Knot’ on April 15, 2019 at 05:44 pm MSK. To access the full text of the article, click here.

Author: Inna Kukudjanova, Galina Gotua; Source: CK correspondents

All news

September 22, 2019 11:07

  • Makhachkala Imam reports law enforcers' threats to believers

    Law enforcers summon parishioners of the "Tangim" mosque and threaten to put them on the so-called "prophylactic registration", Nigmatula Radjabov, the mosque Imam, has stated. The official reasons for the raids on the mosque are not related to the religion, but only the "Tangim" receive such threats, Idris Yusupov, a journalist, has confirmed.

September 21, 2019 22:04

September 21, 2019 21:56

  • Journalists beaten up in Ingushetia assess prospects of their complaints to ECtHR

    The journalists and rights defenders, who suffered, when their minibus of the Joint Mobile Group (JMG) was attacked in Ingushetia in 2016, have complained to the European Court of Human Rights (ECtHR), indicating violations of five articles of the European Convention of Human Rights (ECHR). However, the victims have no hope that their complaints to the ECtHR will contribute to the resumption of an effective investigation of their case in Russia.

September 21, 2019 15:21

  • Residents of South Ossetia mark Republic Day with parade and mass festivities

    On the occasion of the Republic Day in South Ossetia, four days-off were announced, September 20-23. According to the tradition, residents of Tskhinvali, the capital, came to the military parade and festivities, although not everyone knows the meaning of the holiday. In 1990, with the proclamation of the South Ossetian Republic, the process of the collapse of the USSR began, said Mamuka Areshidze, a Georgian political analyst.

September 21, 2019 15:17

News archive