Interfax: Georgia has diversified export markets, does not fear new Russian embargo – finance minister

TBILISI. Dec 3 (Interfax) – Georgia has diversified its export markets to an extent that, if Russia once again imposes a ban on Georgian imports, this would not be as strong a blow to local producers as it was in 2006, Georgian Finance Minister Nodar Khaduri believes.

“Russia is no longer number one trade partner for Georgia, and our markets have been diversified,” Khaduri said at a press conference on Tuesday when asked about possible implications of Russia’s embargo on Georgian imports in the period before it signs an association agreement with the European Union.

Georgian businesses did not have to leave other markets in order to return to the Russian one, he said.

“Our businessmen know that the Russian market is very good and large, and everyone is glad about its opening, but they did not enter there at the expense of leaving other markets,” he said.

Along with the resumption of Georgian exports to Russia, Georgia has also increased the volume of its exports to Ukraine, Turkey, Azerbaijan, Armenia, Kazakhstan and some other countries, he said.

In light of the events in Ukraine, which is among Georgia’s key trade partners, the minister suggested that exports to the country might somewhat decrease.

“It’s understandable that, due to these events, exports may somewhat falter, but I don’t think this will cause serious damage to Georgian companies,” Khaduri said.

According to the National Statistics Service, Georgia’s trade with Russia grew by 38.1% to $591.6 million in January-October 2013 compared to the same period in 2012, making 6.9% of Georgia’s foreign trade turnover. Georgian exports to Russia in the first ten months of 2013 grew by 250% to $130.9 million, making 5.7% of all Georgian exports.

Russia moved up to fourth place from sixth on the list of Georgia’s largest trade partners between the end of October 2012 and the end of October 2013, following Turkey, Azerbaijan and Ukraine.

Russia imposed a ban on imports of wine, mineral water, and agricultural products from Georgia for quality concerns in 2006. Since June 2013, Georgian products have been gradually returning to the Russian market.