Georgian railways revenues go down

In the first half of 2012 Georgian railways received profit of 37 million GEL– 56 million less than in the same period for last year. 100% shares of Georgian railways were transferred to the Georgian Partnership Fund headed by former PM Nika Gilauri. Meanwhile, Georgian railways' debt has increased while profit decreases. Analysts do not exclude that some time from now the government will make a decision to privatize and sell Georgian railways. Under these circumstances, Russia will be interested, as it already owns Armenian railways renamed as South Caucasus Railways. If Russia buys Georgian railways it could definitely connect Georgian railways with Armenia/South Caucasus railways and then to the railways in the breakaway region of Abkhazia. This presents a threat to Georgia’s strategic position.