AGP Executive Report

Fuel to Abkhazia: Georgia’s PM Irakli Kobakhidze says petrol shipments to occupied Abkhazia were carried out by private businesses under authorization, but the move has sparked a fresh political fight over whether it helps Russia’s war effort. Corporate response: Repsol says it is stopping supplies after backlash and insists Solidus did not coordinate further sales with it, while Solidus and other reports claim the deliveries were legal and aimed at easing shortages. EU scrutiny: The EU’s latest annual report flags “significant backsliding” in Georgia, citing pressure on civil society and independent media and noting candidate status has effectively stalled. Regulator action: Georgia’s communications regulator fined opposition TV Pirveli for bias and objectivity breaches in broadcasts. Regional connectivity: Azerbaijan’s Ilham Aliyev outlined Nakhchivan development plans and a TRIPP connectivity vision, positioning the exclave as a future logistics and transport hub. Local economy & infrastructure: A Georgian company confirmed supplying about 300 tonnes of petrol to Abkhazia amid controversy, while separate reporting highlights ongoing public debate over how business activity intersects with sanctions and occupied territories.

Fuel to Abkhazia Under Scrutiny: Repsol says fuel shipped to occupied Abkhazia was bought by Solidus, but Solidus did not coordinate further sales with the company—while Georgia’s government and opposition trade blame over whether the deliveries could help Russia. Political Pressure on Tourism: PM Irakli Kobakhidze accuses a “deep state” of trying to scare off Russian tourists and weaken Georgia’s economy, as critics call the Abkhazia fuel deal “high treason.” Azerbaijan–Georgia Finance: Pasha Bank appoints Punhan Narimanov as chairman and CEO of its Georgian arm, signaling continued expansion in regional payments and banking. Energy Corridor Talk: Armenia approved a KfW-backed plan to expand electricity exchange with Georgia toward 1,050 MW, boosting cross-border power trade prospects. Transport Safety: A minibus crash at Gomis Mta killed four Belarusian tourists; the driver was arrested for lacking the proper license and failing to ensure safe operation. Media Regulation: Georgia’s communications regulator fined opposition TV Pirveli for bias and lack of objectivity.

Fuel Politics in Abkhazia: Georgian opposition leader Elene Khoshtaria calls fuel deliveries to occupied Abkhazia “high treason,” arguing the “commercial transaction” was ordered from Moscow and enabled by Georgian Dream-linked authorities. Government Response on Tourism & Economy: PM Irakli Kobakhidze accuses a “deep state” of trying to weaken Georgia’s economy by discouraging Russian tourism and escalating tensions with Russia. Banking Appointments: Azerbaijan’s Pasha Bank names Punhan Narimanov as chairman and CEO of its Georgian arm, effective Aug. 3, after senior roles in Azerbaijan’s fintech and banking sector. Power Trade: Armenia approved a KfW-backed €120m loan for the “Caucasus Transmission Network IV” project, aiming to raise electricity exchange capacity with Georgia toward 1,050 MW. Local Enforcement: Tbilisi police detained five minors over group theft and robbery, with damage exceeding 30,000 GEL. Weather Disruption: Heavy rainfall caused traffic problems in Tbilisi, including water flowing on Heroes’ Square road.

Fuel to Abkhazia: Georgian officials and opposition parties kept pressing the government over who supplied petrol to occupied Abkhazia amid shortages, with multiple outlets citing claims that business entities—not the state—handled deliveries and raising concerns about sanctions circumvention. Courtroom & Business Risk: A former senior official testified in the bribery trial of ex-SSSG chief Grigol Liluashvili, alleging he personally received cash from businesspeople—while the defense questioned whether there is solid proof. Energy & Infrastructure: Armenia and Azerbaijan moved to expand electricity exchange capacity with Georgia, while regional reporting also highlighted new overland power-corridor talks involving Azerbaijan, Georgia, Türkiye and Bulgaria. Local Economy & Weather: Heavy rainfall disrupted traffic in Tbilisi, including around Heroes’ Square and on the right bank of the Mtkvari. Public Safety: Tbilisi police detained five minors for group theft and robbery, with reported damage exceeding GEL 30,000. Regional Trade Signals: Azerbaijan reported strong 2026 corridor freight growth in Jan–Jul, underscoring continued competition for Middle Corridor and North–South routes.

Fuel & Abkhazia Supply Row: Georgia’s government and opposition traded accusations over fuel deliveries to occupied Abkhazia, with officials saying business supplied petrol amid shortages while critics call it a security and sanctions-bypass scheme. Sanctions & Crypto: Binance will stop processing transactions with several Russia-linked crypto platforms after new EU sanctions, including services tied to Georgia among the listed jurisdictions. Energy Trade: Armenia approved a KfW-backed “Caucasus Transmission Network IV” loan, aiming to raise electricity exchange capacity with Georgia to 1,050 MW. State Asset Deal: A state-owned building near Tbilisi’s Freedom Square was auctioned for GEL 34.81m, more than double the starting price, with buyer obligations to invest and activate commercial use. Legal/Business Risks: A Georgian court case continues as a former senior official testified in the bribery trial of ex-SSSG chief Grigol Liluashvili, alleging cash handovers tied to businesspeople. Independent Media Support: Sinatle marked its first anniversary, highlighting how donations helped keep independent online outlets running under mounting state pressure.

Fuel to Abkhazia: Gakharia for Georgia Party has filed a parliamentary question to PM Irakli Kobakhidze demanding details on how fuel was imported into occupied Abkhazia by business entities, including routes, quantities, and the legal basis for any government consent. Fuel supplier claims: Radio Liberty reports that Georgian company “Solidus” says it delivered about 300 tons of fuel to Abkhazia via the Enguri Bridge, mainly for Gali residents and local gas stations, while Georgia’s opposition and industry groups dispute the scale and responsibility. Disinformation probe: Myth Detector says it found 230 AI-generated fake Facebook accounts linked to Georgian Dream messaging, targeting “Russophobia” narratives after Kobakhidze’s Aug. 12 briefing. Energy logistics: Kazakhstan increased oil shipments to the BTC pipeline via Aktau port, sending 155,000 tons in July (+11.5% y/y), reinforcing Central Asia’s push for diversified export routes. Telecom investment: SkyTel secured loan financing with ProCredit Bank and EBRD to expand its internet infrastructure nationwide. Markets: Gold prices in Georgia were reported steady at $4,345 per ounce (global quote), with local gram rates also listed. Safety/health: Belarusian tourists injured on Gomi Mountain remain in Batumi Republican Hospital, with two patients still in intensive care.

Abkhazia Fuel Row: Georgian PM Irakli Kobakhidze says petrol delivered to occupied Abkhazia came from Georgian businesses, not the government, amid denials from the Union of Oil Products Importers and claims by opposition that the volume was far larger; Radio Liberty reports Solidus supplied about 300 tons via the Enguri bridge for Gali’s population, while Solidus says it acted as a “bridge” between Georgian and Abkhaz business. Border Disruption: Georgia’s Revenue Service suspended all control procedures at the Kazbegi customs post after an alarm in the Devdoraki gorge; staff and border staff were evacuated, and operations are set to resume once risk factors subside. Trade Performance: Deputy Economy Minister Vakhtang Tsintsadze cites record July exports (+30% to $792m) and record Jan–Jul trade turnover ($15.5bn, +7.5%), pointing to competitiveness of locally produced goods. Energy Cooperation: Armenia approved a €120m KfW loan for the Caucasus Power Transmission Network, linking Armenia and Georgia via high-voltage lines; separately, Azerbaijan’s Ilham Aliyev reiterated plans for electricity exports to Europe via Georgia and Türkiye. Digital & Logistics: Analysts assess the Trans-Caspian “Sumgayit–Aktau” fiber-optic line as part of the Middle Corridor’s digital push, with commercial impact still uncertain. Crypto Enforcement: Georgia’s Finance Ministry Investigation Service detained a manager of an unregistered crypto business, seizing cash, equipment and bank cards. Diplomacy: Germany appointed Barbara Voss as its new ambassador to Georgia, pledging continued support for Georgia’s democratic and pro-European course.

Fuel & Politics in Abkhazia: PM Irakli Kobakhidze confirmed 3,000 tonnes of fuel were delivered to occupied Abkhazia by a private business under Georgia’s “Law on Occupation,” while Abkhazia’s de facto authorities said they did not obstruct imports from Georgian-controlled territory amid ongoing supply difficulties. Energy Transit & Regional Deals: Georgia’s PM said strategic ties with Azerbaijan and Turkey must deepen, and Georgia’s deputy economy minister said Azerbaijan-Georgia-Türkiye-Bulgaria talks are underway on an overland electricity transit corridor to boost Georgia’s role as an energy hub. Electricity Exports to Europe: Azerbaijan’s Ilham Aliyev said the route to Europe for electricity runs through Georgia and Türkiye, aligning with the corridor discussions. Agri-Food Exports: Georgia’s environment ministry reported 24% of fruit and vegetable juice exports went to the US and 21% to Australia in Jan–July, with Russia, Germany and Israel also key markets. Construction & Heritage: Renovation at Tbilisi’s Melik-Azaryants building uncovered hidden underground levels tied to the site’s early 1900s infrastructure. Crypto & Sanctions: Georgia’s investigation service arrested a manager of an unregistered VASP, seizing crypto and cash, while the US sanctioned a Georgia-based crypto firm over alleged IRGC-linked transactions. Protests & Governance: Pro-European demonstrators continued daily actions in Tbilisi, demanding a return to Euro-Atlantic integration and free elections.

Crypto Sanctions: The U.S. Treasury sanctioned a Tbilisi-based cryptocurrency company and its operator over alleged transfers tied to the IRGC, adding to Georgia’s growing scrutiny over sanctions evasion. Abkhazia Fuel Row: PM Irakli Kobakhidze confirmed gasoline was shipped from Georgian-controlled territory to occupied Abkhazia by “private business,” while the opposition demanded the supplier’s name and warned it could effectively support Russian military bases. Protests in Tbilisi: On the 623rd day of daily demonstrations, pro-European protesters gathered at the Parliament and City Hall calling for political prisoners’ release and an end to repressive practices. Energy & Infrastructure: Georgian Roads Department said a 21.3 km Tbilisi–Manglisi road rehabilitation is planned to finish in 2027, while separate reporting highlighted concerns about repeated power outages and unclear causes. Regional Energy Trade: Azerbaijan’s Ilham Aliyev said electricity exports to Europe would run via Georgia and Türkiye, with a second transmission line under consideration. Local Business/Legal: Tbilisi City Court dropped key witnesses in the Partskhaladze mafia-related case, while a court in Curaçao invalidated Aviator trademark registrations in an international dispute.

Crypto Crackdown: Georgia’s Finance Ministry Investigative Service detained the head of a crypto firm accused of illegal virtual-asset conversions and operating without National Bank registration; authorities seized cash, cards, documents and crypto, and say the suspect faces 3–5 years. US Sanctions: The same week, the US imposed sanctions on Georgia-registered Shelbit and its owner over alleged Iran-linked ties, raising compliance pressure for fintech and crypto businesses. Transport Costs: Georgian freight to Russia and Central Asia saw price jumps of 10–15%, with carriers citing Russia-side security risks, fuel shortages and tighter controls; further increases could follow. Energy & Trade: Azerbaijan reiterated it can supply gas to Ukraine if needed, while new deals on electricity and Azerbaijani gas to Georgia were reported as already in force. Tourism & Real Estate: Pontus and Rotana plan a Rotana-branded ski resort in Gudauri, aiming to turn the destination into a four-season investment draw. Education Retail: School uniforms for first-graders go on sale nationwide from Sept 1–14, with later phases for grades 2–6.

Sovereign Credit Boost: S&P upgraded Georgia’s outlook from “stable” to “positive” at the BB level, marking the first time the country has received a positive outlook, according to the Economy Ministry. Banking Leadership: PASHA Bank Georgia named Punhan Narimanov as CEO, outlining a push to support businesses and deepen regional partnerships. Energy & Infrastructure: Georgia’s agreements with Azerbaijan on electricity supply and transit, plus Azerbaijani natural gas supply, have entered into force, while the government also announced road maintenance funding for the Tbilisi–Senaki–Leselidze highway. Trade & Risk Watch: A new EPRC report warns Georgia’s food security remains highly exposed to Russian supply shocks, citing near-total dependence on Russian wheat and flour imports. Tourism & Investment: Rotana and Pontus plan Rotana’s first ski resort worldwide in Gudauri, aiming for year-round demand. Governance & Heritage: Gelati Monastery’s protection zone was granted special regulation status, with planning duties assigned to the Spatial and Urban Development Agency. Security & Sanctions: The US sanctioned Tbilisi-based crypto firm Shelbit over alleged Iran-linked sanctions evasion, while Russia again signaled readiness to expand “pragmatic ties” with Georgia.

Banking Leadership: PASHA Bank Georgia says Punhan Narimanov has been confirmed as Chairman of the Board and CEO, highlighting the bank’s plan to keep backing Georgian businesses and regional partnerships. Energy & Infrastructure: Georgia’s agreements with Azerbaijan on electricity supply and natural gas transit have entered into force, while the Roads Department reports periodic repair works on an 11.4 km stretch of the Tbilisi–Senaki–Leselidze highway in Khobi. Digital Economy: Silknet broke ground on Georgia’s first Tier III certified commercial data center in Tbilisi, targeting 2 MW for AI and enterprise services with operations expected in 2027. Trade & Connectivity: Central Asia and Azerbaijan are expanding cooperation across the Caspian via the Middle Corridor framework, with presidents signing the Cholpon-Ata Declaration. Business Tech: Alpaca launched Mentionify, a generative engine optimization platform, and introduced an employee stock option plan. Policy & Governance: Georgia appointed a new Head of the Environmental Supervision Department, Paata Kiladze, as part of leadership rotation. Regional Context: Russia again signals readiness to expand “pragmatic ties” with Tbilisi, citing trade and tourism.

Digital Infrastructure: Silknet broke ground in Tbilisi on Georgia’s first Tier III certified commercial data center, a 2MW facility built for high-availability cloud and AI workloads, aiming to be operational in 2027. Energy & Transit: Kazakhstan is weighing new oil export routes that would bypass Russian Black Sea bottlenecks, including increased flows via Baku-Tbilisi-Ceyhan and Baku-Supsa through Azerbaijan and Georgia. Trade & Markets: Georgia sold about $195,000 worth of potatoes to Armenia in the first half of the year, signaling continued food trade ties in the region. Social Policy: Georgia’s poverty allowance is shrinking again, with payments discontinued for 7,235 people in one month as eligibility reviews continue. Tech Talent: Georgia’s National AI Team won 2 gold, 3 silver, 2 bronze and 1 honorable mention at IOAI 2026 in Astana, supported by TBC. Regulation & Compliance: Georgia’s investigative service arrested three people over falsified alcoholic beverages and counterfeit excise stamps.

Roads Overhaul: Georgia has set up a new state road maintenance structure: under a PM decree, 100% of shares in Georgian Roads Operator LLC were transferred to the Ministry of Infrastructure for management, with the company tasked with road upkeep and a planned initial capital investment of about GEL 63 million. Power Reliability: After three major blackouts in two weeks, Prime Minister Irakli Kobakhidze said the State Security Service investigation will be followed by public disclosure of the causes once sensitive details are cleared. Energy Shock in Abkhazia: Reports say Abkhazia is facing a fuel crunch, with long queues and purchase limits at petrol stations, hitting residents and small businesses that rely on deliveries. Regional Oil Logistics: Ukraine agreed to stop attacking non-Russian tankers and related infrastructure tied to Kazakhstan’s Black Sea oil exports via the CPC terminal, potentially easing tanker-market disruptions. Transport Diversification: Kazakhstan is weighing alternatives to CPC, including BTC and Baku-Supsa and Trans-Caspian routes, as export corridor uncertainty grows. Telecom Expansion: Ucom says it is expanding international roaming and 5G roaming coverage, with roaming subscribers and mobile data use abroad rising sharply in 2Q 2026. Education Reform: Education Minister Givi Mikanadze met heads of educational resource centers, discussing curriculum updates, teacher development, inclusive education, and textbook/digital resource access with World Bank I2Q support. Politics & Courts: Three people have been charged in the 2024 attack case involving opposition MP Nika Melia, with charges tied to violence during election campaign events.

Sovereign Credit Boost: S&P Global revised Georgia’s sovereign rating outlook to positive from stable, citing stronger reserves, robust growth, prudent fiscal policy, moderate debt and a stable banking sector. Transport & Trade: Georgia cut Tbilisi–Batumi rail travel time to about 4 hours, while officials also reviewed key transport projects in Batumi. Energy & Infrastructure: Georgia faced a third nationwide blackout in weeks, with power supply later reported as resumed; separate reporting also points to mass power outages in Abkhazia after a key plant failure. Food & Agribusiness: Russia sharply increased imports of Georgian farmed trout, reaching a record $1.6m in June, as Georgia became Russia’s sole buyer of aquaculture salmonids. Security & Markets: Turkey temporarily restricted some Black Sea ship traffic amid attacks, potentially adding friction to oil and grain flows; Russia also renewed claims that it wants to prevent Georgia being pulled into a new conflict. Business & Finance: Georgia’s finance ministry said its investigative service arrested three people over falsified alcoholic beverages and counterfeit excise stamps. Public Pressure: Tbilisi protesters marked day 619 of continuous demonstrations, demanding release of political prisoners.

Sovereign Credit Boost: S&P Global upgraded Georgia’s sovereign outlook to positive, citing stronger reserves, solid growth (8.3% average over three years), prudent fiscal policy, moderate debt and a stable banking sector. Energy & Infrastructure: Georgia’s power system faced another nationwide blackout, while reports also say the electrosystem head resigned after the outages—raising questions for investors about grid reliability. Trade & Security: Turkey restricted some commercial Black Sea ship traffic into the region amid rising Russian-Ukrainian attacks, though vessels to Georgian ports reportedly kept moving—an issue for Georgia’s logistics and port planning. Sanctions Pressure: The U.S. Senate passed sweeping Russia sanctions legislation backed by late Lindsey Graham, including tougher measures that could reshape regional trade routes and costs. Local Business & Finance: Georgia’s Finance Ministry says it arrested three people over falsified alcohol and counterfeit excise stamps. Food & Imports: Russia sharply increased imports of Georgian farmed trout, making Georgia its sole supplier of salmonids—showing how niche agri exports can surge even amid wider geopolitical strain. Politics & Public Pressure: In Tbilisi, protesters marked the 619th day of daily demonstrations, demanding the release of political prisoners. Regional Credit/Markets: Georgia’s exports and banking activity remain in focus as lenders and investors watch currency lending trends and macro stability.