Economy

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Abkhazia

Russia cuts financial support to Abkhazia in ‘serious blow’ to relations

by OC Media

•3 min read

Abkhazia’s Foreign Minister has confirmed that Russia has cut financial support to Abkhazia for failing to enact pro-Russian reforms. Sergei Shamba told reporters on Tuesday that Russia had suspended the Socio-Economic Development Programme for Abkhazia two days earlier, on Sunday. Russian financial aid makes up a large proportion of Abkhazia’s government budget. The move comes amidst a growing rift between Abkhazia and Russia, with widespread public backlash over a number of measures push

Armenia

Russia claims Armenian strawberries and brandy ‘fail to meet regulatory standards’

by Arshaluys Barseghyan

•4 min read

Russian media have reported that a large amount of Armenian brandy, as well as a batch of Armenian strawberries, have failed to meet Russian standards. Armenian authorities have stated they have not received any official documentation from Russian authorities regarding these claims. On Wednesday, the Russian Mash Telegram channel reported that the ‘dangerous pesticide tebuconazole’ was found in a four-ton batch of strawberries exported from Armenia to Russia. The batch was selected for test

China

Opinion | Georgia’s one-sided relationship with China comes with significant risks

by Tinatin Khidasheli

•5 min read

The Georgian Government has increasingly moved to strengthen relations with China, hailing the economic potential of the partnership including high-profile infrastructure projects. But despite the optimism, the relationship has so far remained almost entirely one-sided, and in fact, opens the country up to substantial new risks. Georgia’s foreign strategic alignment has been profoundly influenced by its geopolitical location, historical context, and aspirations for closer integration with West

Armenia

Bank of Georgia to acquire Armenia’s Ameriabank for $304 million

by Arshaluys Barseghyan

•2 min read

Bank of Georgia has reached an agreement to acquire Ameriabank, one of the largest banks in Armenia, for $303.6 million. Bank of Georgia Group, which is listed on the London Stock Exchange, announced its proposed acquisition of 90% of the Armenian bank on Monday. The agreement would allow the European Bank for Reconstruction and Development (EBRD) to retain its 10% share in the bank. The acquisition still requires approval by regulators, including the Central Bank of Armenia. Founded in 1

Analysis

Datablog | People in Georgia are highly uncertain about their economic future

by Nino Zubashvili

•4 min read

Across various demographic groups, Georgians are uncertain about what their economic futures might hold, with those from lower-income backgrounds more uncertain than those with a higher income. Georgia today faces numerous structural challenges that hinder social and economic development, such as low productivity and low-quality jobs, poor quality of education, poor links between education and employment, high unemployment, and poverty. On top of this, high use of the dollar alongside the c

Demonstrations against rising fuel prices in Tbilisi on 27 March. Shota Kincha/OC Media.

Analysis

Datablog | Inflation and a Georgian’s choice of fuel

by Makhare Atchaidze

•3 min read

A global pandemic and Russia’s invasion of Ukraine have both contributed to skyrocketing rates of inflation worldwide. Georgia is no exception, as people reevaluated their preferences for fuel throughout the past two years. In August 2022, Georgia’s inflation rate stood at 10.9%, with the price of petrol rising by 18% and the price of diesel by 45% compared with those of August 2021 — this is due in large part to Russia’s invasion of Ukraine. In response to rising fuel prices, Georgian drive

Analysis

Datablog | Georgians are becoming wearier of economic ties to Russia

by Elene Ergeshidze

•3 min read

Georgia’s economic relations with Russia have been a point of contention for years; but how far has the war in Ukraine swayed public opinion? Imports to Georgia from Russia have been on the rise since 2011, and exports since 2013. As of 2021, 14% of Georgia’s exports went to Russia and 10% of Georgia’s imports came from Russia. But when looking at the recent past, there are clear indications that such economic reliance on Russia can be problematic. The ban on trade in 2006 and suspension of f