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Russian Embargo

Possible Russian Embargo will Have Little Impact on Georgia

Recently, Russia’s Ministry of Agriculture confirmed that the Ministry had started discussing a proposal to impose embargos for several countries, one of which was Georgia.

International development consulting company, PMCG publishes a report on the possible impact of Russian Embargo on Georgian Exports.

In 2014, the breakdown of Georgian wine exports by country noticeably differed from 2005 (before Russian embargo). The share of the Russian market in Georgian wine exports decreased significantly (by 15 percent). In 2005, the share was 77% while in 2014 it had decreased to 62%.

It should be noted that in 2005 Georgia exported to 93 countries, while by 2014 the number of countries had increased to 120.

From 2005 to 2014, the annual average growth rate of Georgian export (excluding Russian market) was 18.8% and exports increased by US $1 874.5 mln, in total.

After 2005 Georgian export has undergone a structural change; dependency on the Russian market has decreased and the diversification of export took place.

1
Alongside the diversification of the market for Georgian wine export, from 2005 to 2014 the annual average growth rate of Georgian wine export (excluding Russian market) was 19.7% and export increased by US $50.9 mln, in total.

2

Alongside the diversification of the market for Georgian wine export, from 2005 to 2014 the annual average growth rate of Georgian wine export (excluding Russian market) was 19.7% and export increased by US $50.9 mln, in total.