Western goods reaching Russia through Georgia
Western goods reaching Russia
The New York Times has published an article by Ivan Nechepurenko about Western goods being imported into Russia, according to which, after Russia invaded Ukraine and Europe severed trade ties with the occupying country due to sanctions, Russia soon found alternative ways. The author notes that every day in Georgia trucks line up on the border with Russia.
“Loaded with automotive parts, industrial materials and various products, they wait several days to cross the border and complete the journey, which usually starts in Turkey and ends in various cities in Russia,” Nechepurenko writes.
As he explains, Georgia has become a convenient logistical channel between Russia and the outside world, and the transport of goods through Georgia and neighboring countries (Armenia and Azerbaijan) has helped Russia make up the consumer shortfall caused by the invasion of Ukraine:
“Although some goods are in short supply and many Western companies have suspended operations, the government says the Russian economy shrank by just 3% last year. While growth prospects remain bleak, the immediate collapse due to Western sanctions that some economists predicted has not happened.”
The article also mentions that it is the fastest land route from Georgia to Turkey, which has become for Russia one of the main trade routes connecting it with the West. The article cites a study according to which, in the first six months of 2022, the transit of goods between Turkey and Russia tripled, and most of it moved along the roads of Georgia.
“It is impossible to say what part of European cargo passing through Georgia is subject to EU sanctions. The emergence of the country as the main link in trade with Russia points to potential flaws in the EU sanctions policy,” Nechepurenko writes.
- Most Russian companies registered in Georgia after February
- “If they close the border, there will be only one way left – war.” Stories of refugees from Russia
According to a new report from Transparency International-Georgia, there are 17,000 Russian companies registered in Georgia, more than half of which were registered after the start of the war in Ukraine.
The report also says that in 2022, Georgia’s economic dependence on Russia has increased significantly, although it is not dependent, absent the Russian element.
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