Garibashvili wants the Georgian government to build large HPPs

Irakli Garibashvili, the Prime Minister of Georgia, stated that the government should develop huge hydroelectric projects. His comments to reporters occurred during a regional visit in Kutaisi, the capital of Western Georgia, which has seen significant months-long protests against the neighbouring Namakhvani HPP project, which has since been suspended.

"The state has the necessary resources. I've already assigned the economics minister a relevant duty,” the Prime Minister stated, and added "the entire economy team is working in this direction. I believe that huge hydropower facilities, such as Namakhvani, Nenskra, and Khudoni, should only be built with state participation, so that they belong to our people and the state, rather than private investors," he stated. "We are buying more and more power every year, importing from Azerbaijan and Russia, and this is a concern," the Prime Minister said.

The contentious Namakhvani HPP project, which includes two independent HPPs on the Rioni River, Georgia's longest river running completely inside its borders: the Lower Namakhvani HPP (333 MW) and the Upper Namakhvani HPP (333 MW), brought Georgia's energy strategy into sharp light (100 MW).

Locals oppose the planned building for a variety of reasons, including environmental concerns, and the proposal was met with vehement opposition. Their months-long tent protest developed into a huge national movement, with enormous protests conducted around the country, including in the Georgian capital of Tbilisi in May 2021.

Georgia eyes joining Single Euro Payment Area

Georgia voiced its desire to join the Single Euro Payment Area (SEPA) during the working group meeting, according the Georgian Parliament's Press Service.

The Working Group on Georgia's SEPA Accession conducted another meeting, detailing the previous year's efforts as well as Georgia's membership prospects in the Single Euro Payment Area.

"Georgia's admission to SEPA will be a watershed moment in the country's path to EU membership. It would ease bank transfers to EU member states, given the growing trend of remittances from EU countries," Maka Bochorishvili, a member of Georgia's parliament, made the point.

The Group focused on the legal preconditions, especially the possibility of implementing the EUAA promises, to describe the particular actions that Georgia should take on the route to SEPA membership.

The commercial turnover between Azerbaijan and Georgia increased in the first quarter of 2022

From January to March 2022, Georgia's overall trade turnover with Azerbaijan was $355.3 million, accounting for 9.2% of total foreign trade turnover, according to the National Statistics Office (Geostat).

The present value has climbed by 42% since the reporting period of 2021, when it was $250.2 million. From January to March 2022, Azerbaijan ranked fourth among Georgia's key commercial partners, according to Geostat. The top three countries were Turkey ($562.4 million), China ($461.9 million), and Russia ($383.2 million).

Meanwhile, Georgia’s imports from Azerbaijan in the reporting period of 2022 amounted to $230 million, which is an increase of 57.6%, compared to $145.9 million over the same period of 2021. Thus, Azerbaijan ranked fourth among Georgia’s top trading partners by imports from January through March 2022, Geostat said.

Georgian exports to Azerbaijan in the reporting period of 2022 totalled $125.3 million, which is an increase of 19.9%, compared to the same period of 2021 ($104.5 million). Azerbaijan ranked second among Georgia’s main export partners from January through March 2022, the report said.

Meanwhile, Georgia’s foreign trade turnover (excluding non-declared trade) from January through March 2022 amounted to $3.8 billion, which is an increase of 37.9%, compared to $2.7 billion over the same period of 2021.

Georgia and German firm discussing building of wind power plants

Georgia is in talks with German VENSYS Energy AG on the start of manufacturing of wind power plants, according to Mamuka Mikashavidze, President of the Georgian Wind Energy Association.

The purchase of a necessary technological licence for production is now being discussed with VENSYS Energy AG, a German gearless wind turbine manufacturer owned by Chinese Goldwind.

"We want to introduce you to the Permanent Magnet Direct Drive, which is the most recent wind energy innovation. Magnets generate power, which is not the case with this technique. It also doesn't have an extra gearbox or require oil changes, making it more environmentally friendly while also producing 12-15 percent more electricity," Mikashavidze expressed.

Meanwhile, in late March 2022, the Georgian Ministry of Economy and Sustainable Development, Ioseb Loladze, DELTA State Military Scientific-Technical Center, and Georgian Wind Energy Association signed a memorandum on the start of industrial production of wind power plants in Georgia.

Rothschild company prepared plan to turn Georgia into financial hub

The head of the financial company Rothschild & Co., Ariel Mallard de Rothschild, arrived in Tbilisi and presented the Georgian Prime Minister Irakli Garibashvili with a strategic plan to turn the republic into a financial hub. The strategy includes specific projects and steps that will help turn Georgia into a multifunctional regional hub.

The press service noted that the plan is primarily designed to attract investment and create new jobs. It is also planned that the strategy will help introduce modern financial and technological innovations, which will help develop strong financial centres in the country.

Garibashvili announced the government's readiness to start implementing the steps proposed by Rothschild & Co. as soon as possible.

It is worth noting that earlier Garibashvili spoke about plans to create special financial zones in Georgia. Foreign companies will be granted a special tax regime there. One of them is planned to be founded near the Tbilisi Sea, and the other near Batumi.

Georgia's International Trade in January-March 2022

According to preliminary estimates issued by the National Statistics Office (Geostat), Georgia's international trade turnover in the first three months of 2022 was USD 3.87 billion, up 37.9% over the same time last year.

Exports climbed by 43.3% to USD 1.17 billion year over year, while imports increased by 35.7% to USD 2.7 billion. In January-March 2022, the trade deficit was USD 1.52 billion, accounting for 39.4% of total trade turnover.

Turkey led the list of Georgia's major trading partners by turnover, with USD 56.4 million, followed by USD 461.9 million from China, USD 383.3 million from Russia, USD 355.4 million from Azerbaijan, and USD 213.1 million from the United States.

With USD 220 million in exports, China was Georgia's most important commercial partner, followed by Azerbaijan with USD 125.4 million, Russia with USD 109.8 million, Turkey with USD 99.2 million, and Bulgaria with USD 94.7 million.

In terms of imports, Georgia's major commercial partners were Turkey, China, Russia, Azerbaijan, and the United States, with USD 562.4 million, 461.9 million, USD 383.3 million, USD 355.4 million, and USD 213.1 million, respectively. Copper ores and concentrates headed the list of export commodities in January-March 2022 with USD 271 million. It was followed by ferroalloys — USD 160.1 million; cars — USD 94.9 million; nitrogen fertilisers — USD 76.5 million; wine or fresh grapes — USD 45.8 million; mineral waters — USD 32.7 million; medicines — USD 28.3 million; spirits — USD 23 million; precious metal ores and concentrates — USD 22 million; gold — USD 21.4 million; other commodities — USD 395.9 million. Petroleum oils were first on the list of import items with USD 244.5 million, followed by copper ores and concentrates — USD 222.5 million; cars — USD 211 million; petroleum gases — USD 184.2 million; medicines — USD 85.2 million; telephone sets — USD 63.6 million; automatic data processing machines — USD 42.3 million; electricity — USD 29.9 million; bars and rods of iron or non-alloy steel — USD 23.4 million; polyacetals and epoxide resins — USD 20.8 million; other commodities – USD 1.6 billion.