Trade turnover with Russia

Up until 2006 Russia was Georgia’s main trade partner, but from this year onwards Moscow imposed a number of sanctions banning the entry of Georgia’s agricultural products, mineral water and wine to the Russian market. Nevertheless there did remain some trade between the two countries. However, following Russia’s invasion of Georgia in 2008 trade turnover decreased dramatically. In 2006 import from Russia was over USD 0.5 bln. In 2007 Russian imports were valued at almost the same figure, in 2008 they decreased to that point, and in 2009 the figure was USD 0.28 bln. As of September 1, 2010 the figure is just USD 183 mln. As for Georgian exports, in 2005 Georgia exported USD 153 mln worth of products to Russia, in 2006 USD 75 mln, in 2007 USD 45 mln, in 2008 USD 29 mln and in 2009 USD 18 mln. This year exports to Russia have increased a little, reaching USD 25 mln; the largest component of the export figure to Russia is electricity.

Analysts think that even if Georgia manages to return to the Russian market it will face problems since the Russian consumers no longer consider Georgia a friendly country. Borjomi water and fruits may have more chance than wine, according to analyst Emzar Jgerenaia.