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Seducing Russian markets

By Gvantsa Gabekhadze
Tuesday, September 6
"There is no obstacle for Georgian products to return to Russian markets--this is our Party’s achievement and we are ready to collaborate with the Georgian authorities on the issue" said the leader of the Free Georgia Party, Kakha Kukava on September 5, while summarizing his visit to Moscow.

“We have already solved all technical and legal problems for Georgian products re-enter Russian markets and can clearly state that Georgian wine and mineral waters can be presented there without any obstacles. The Russian side is not opposing this," Kukava stated. He underlined the fact that he had more authority to carry out trade negotiations than the current Georgian leaders. "As I express the attitude of 99% of our citizens, from a political point of view the Russian embargo has been profitable for Saakashvili in order to state that Russia is our enemy, which made them withdraw Georgian products from its market.”

Based on the opposition leader no other market can replace the Russian one since sales would increase.

According to Kukava currently the main obstacle for Georgian products to re-enter the neighbouring market is one created by Georgian authorities and not the Russian ones.

Russian authorities have also made recent statements about the issues, saying they are not against Georgian products returning to their markets; however, certain politicians and analysts consider that these statements are calculated in order to persuade Georgia to accept Russia’s participation in the World Trade Organization.

The favorable attitude is not shared by the current Georgian authorities who consider the opposition’s statements regarding the issue as a PR stunt. They insist that the Russian market “is not reliable”. Even if Russia opens its market for Georgian wine, “one day they may again kick you out,” as the Russian Market “is based on plunder, piracy, hypocrisy and illegality; but we have learnt to work in normal conditions. Russia considers us as a huge problem, so unfortunately at this stage we should not expect anything good from them,” Mikheil Saakashvili, said. Such statements have also been made by the Foreign Ministry of Georgia, as the officials from the Ministry underlined that in case Russia becomes a member of WTO, they would be forced to let Georgian products enter its market in any case. WTO rules demand this, thus no prior agreement is needed."

One important aspect should be considered. As one Georgian farmer From Kakheti told The Messenger, "the price suggested for grapes is the lowest, while our expenses caring for vineyards are very high.”

As analyst Ramaz Sakvarelidze told The Messenger, the authorities should not decide whether a market is needed or not, “as the market demands specify this.” According to the analyst, the Government is waiting for Russia’s adhesion to the WTO, and solving the problem in this context, “since according to the authorities, once Russia becomes a member of WTO it will be obliged to let Georgian products enter its market.”

According to fellow analyst Nika Chitadze the declarations by Free Georgia are a PR stunt only and nothing more: "First of all, such issues are agreed at a Governmental level and not between some opposition force and the Russians. The aim of such statements is only to make PR and to persuade some Georgians—especially those involved in wine production--that some opposition force is fighting for their rights and gaining those citizens' votes."

"Russia too is trying to make PR, but for Georgian anti-national forces, and especially for those that serve Russian interests," Chitadze told The Messenger. He mentioned that this issue could be solved at a Government level, "if Russia becomes a member of the World Trade Organization (and the chance of this exists) this issue can be set in the agenda. Cconsultations can also start even without this WTO factor. However, Russia's membership in WTO is the most likely alternative."