Asian Development Bank economist: “Georgia benefited from sanctions against Russia — but not for long”
Albert Park, Chief Economist at the Asian Development Bank (ADB), told InterpressNews that Georgia initially benefited from the Russia–Ukraine war and the sanctions imposed on Russia, as it became a preferred transit route for cargo bypassing Russia. However, he now sees growing uncertainty.
Specifically, Park points to three major geopolitical uncertainties:
- the possible lifting of sanctions on Russia;
- the establishment of peace in Ukraine;
- changes in the current policy of the Donald Trump administration.
According to the economist, if these developments materialise, Georgia could lose part of the business it attracted after the war in Ukraine began — and this could have a notable impact on the country’s economy.
Albert Park:
“I think we need to focus on making Georgia as efficient as possible along the Middle Corridor trade route by reducing transaction costs and eliminating any existing delays.
Economists see it this way: when people get used to a route that is more cost-effective, they don’t want to return to the old system. So Georgia can retain this business — but only if it remains competitive in service provision. At this stage, the priority should be maintaining service efficiency until sanctions are lifted.
I believe Georgia will be able to retain some of this business, though not all of it — that will depend on how effectively you can provide services.”
sanctions against Russia
