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Sunday, January 12, 2025

Reshaping Perspectives and Catalyzing Diplomatic Evolution

The share of the Russian Federation in Georgian wine exports in 2022 increased to 63.7%

Russia exported the most Georgian wine in 2022. In particular, 73,128 tons of wine worth $160.8 million were shipped from Georgia to the Russian Federation, while the Russian Federation’s share Russia in Georgian wine exports increased from 54.6% in 2021 to 63.7% in 2022.Poland came in second place in 2022 with 6,706 tons worth $14.5 million, and Ukraine came third, which last year exported 6,446 tons of Georgian wine from worth $13.5 million. Next come China (3,988 tons, $12.5 million), Kazakhstan (3,788 tons, $10 million), Belarus (3,172 tons, $7.5 million) and the United States ( $5.2 million, 1,039 tons).Chairman of the Georgian National Wine Agency, Levan Mekhuzla, believes that the share of Georgian wine exports to the Russian Federation has increased against the backdrop of the war in Ukraine, as the supply of alcoholic beverages to Russia from a number of countries has decreased as a result of international sanctions.”As a result, the demand for Georgian wine has increased sharply in Russia,” Mekhuzla believes.Recall that Georgia participates in all international financial sanctions against Russia, but at the same time Tbilisi has not introduced individual sanctions against the Russian Federation. This decision caused irritation in Kiev. In their defense, representatives of the Georgian leadership claim that the introduction of individual sanctions against the Russian Federation by Georgia will not affect the Russian economy, although at the same time it will cause significant harm to the Georgian economy .With the experience of the Russian embargo on Georgian food, including wine and mineral water, imposed by Moscow in 2006 against the backdrop of deteriorating bilateral relations, many Georgians are unhappy with the increase in exports to the Russia. Some opponents criticize the authorities, arguing that they provide Moscow with additional leverage to pressure Georgia and accuse the ruling Georgian Dream party that relevant government agencies are not doing enough to diversify markets for Georgian products.At the same time, a deputy of the opposition United National Movement, former director of the National Bank of Georgia, Roman Gotsiridze, noted in an interview with media that if the state is obliged to create an investment climate stability in the country in order to attract foreign investors, at the same time, “more activity” and Georgian winegrowers. This, he said, concerns the company’s introduction of new technologies to improve the production process, as well as the “constant search” for new markets.In particular, according to Gotsiridze, an economist by profession, market diversification takes a long time, but working in this direction is a “vital factor” and especially for Georgian producers, given the instability of the Russian market. Although, as the deputy notes, Georgian winemakers often prefer “the titmouse in their hands”, that is, the fact that the wide recognition of Georgian wine in the Russian Federation guarantees successful sales without too much d ‘efforts.”Such an approach is very likely to bring a long-term negative experience,” says Roman Gotsiridze.It should be noted that the budget allocated by the state for the promotion of Georgian wine increases every year. In 2023, this amount was more than $5.2 million, or 16% more than in 2022. According to the wine agency, the priority markets in 2023 are the United Kingdom, Germany, Latvia, Lithuania, China, Poland, the United States, Estonia, South Korea and Japan .Mentions of winemaking as the main industry in the territory of Georgia are found in Assyrian, Ancient Greek and Byzantine sources. Laboratory analysis of dust grains from cultivated vine pits, found in Georgia on scrapings from ceramic vessels dated to the 6th millennium BCE, showed the presence of wine in it. This confirmed the version that a man first grew a wild vine, and then insisted on wine from its fruits in the territory of Georgia. Some linguists claim that the word “wine” has Georgian roots. Supporters of this point of view see a semantic connection with the Georgian name of the product – “ghvino” (ghvino), which comes from the word “gvivili” – “fermentation”.It should be noted that in 2013, the Georgian method of making wine in “qvevri”, a large clay vessel buried in the ground, was included in the list of intangible cultural heritage of UNESCO.

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