AGP Executive Report

Azerbaijan-Georgia-Türkiye Defense Talks: Azerbaijan’s Defense Minister Zakir Hasanov said the trilateral format is key for regional stability, after the 13th meeting with Turkish and Georgian counterparts in a sign of deepening security cooperation. Middle Corridor Momentum: The World Bank Group launched a new “Middle Corridor: Next Stage” connectivity forum, highlighting how better logistics, customs and digital links could boost trade and cut travel times across the Trans-Caspian route. Fuel Price Pressure in Georgia and Abroad: A CNN report says US states are moving to curb diesel and gasoline costs amid Iran-war supply disruptions; Georgia is among those suspending fuel-related rules to ease prices. Georgia-US Protocol Debate: MP Giorgi Sharashidze criticized the government’s Trump handshake photo, arguing no substantive, business-focused meeting took place. Sanctions and Finance: The US Treasury sanctioned Russia-linked A7 Network after FinCEN traced over $17bn in transactions tied to sanctions evasion. Legal Update: Mikhail Timofeyev, sought by Russia, was released on GEL 50,000 bail in Georgia with strict movement and reporting conditions. UK Targets Georgian Disinformation: The UK imposed asset freezes and travel bans on four Georgian nationals tied to pro-Russian propaganda networks.

Middle Corridor Push: The World Bank says Trans-Caspian “Middle Corridor” upgrades could more than triple trade, cut transit times by two-thirds, lift regional GDP by 3.3% and create 2 million jobs by 2040—Georgia’s GDP forecast rises 3.6% by 2040. Logistics Investment: German Rhenus Group plans 14 terminals along the corridor via Uzbekistan, Kazakhstan, Azerbaijan and Türkiye, linking to its Europe network. Energy/Trade Diplomacy: Azerbaijan’s economy minister targets $20bn regional trade with Central Asia and joint production under a “Made in Central Asia” brand. Tbilisi Spending & Services: Georgia’s 2027 consolidated budget is set at GEL 37.531bn; Finance Ministry also confirms public-sector salary hikes from 2027. Media & Sanctions: UK-sanctioned Imedi TV reported 2025 accumulated losses near GEL 500m, with “going concern” doubt flagged by auditors. Legal/Anti-Corruption: Former State Security Service deputy Levan Akhobadze was released on 500,000 GEL bail as prosecutors cited reduced risk of witness influence. Real Estate: Ambassadori Island Batumi signed a UAE partnership with ONE Development for a $200m high-end complex. Public Life: Tbilisoba 2026 runs Oct 3–4 across multiple city venues, with City Hall authorized simplified procurements up to GEL 3.11m.

Tbilisi Metro Modernisation: Tbilisi Mayor Kakha Kaladze says the city will receive 111 new metro cars via a project supported by the Georgian government and the AIIB, with the first modern train expected in 2026 after a 34-year gap. Budget Watch: Georgia’s Finance Ministry released draft 2027 budget parameters: consolidated revenues of GEL 37.531bn, real growth forecast at 5.0%, inflation returning to 3.0%, and a deficit target of 2.5% of GDP. Real Estate & Investment: Ambassadori Island Batumi signed a $200m deal with UAE developer ONE Development at LIVEX 2026 in Abu Dhabi, positioning the project as an AI-integrated, high-end complex. Regional Connectivity: AIIB-related coverage highlights continued push for infrastructure and connectivity financing across the region, including Georgia-focused investment plans. Energy & Trade Context: Reports also point to Black Sea and Middle Corridor logistics as a growing route for fuel and trade flows, with Georgia and neighbors mentioned as potential supply links. Governance & Compliance: Separate reporting notes Georgia’s customs control procedures restored at Kazbegi checkpoint, alongside ongoing scrutiny of cross-border processes.

World Bank & Middle Corridor: A new World Bank report says Trans-Caspian Corridor investments could more than triple trade volumes by 2040, cut transit times in half, add about 2 million jobs, and require over $25bn in infrastructure plus another $30bn for logistics, terminals and digital systems. EU sanctions & Georgia transit: German-Austrian-Belgian investigators say suspects routed 53 passenger cars and six tractor units to Russia via third countries including Georgia, freezing assets worth about €7m. AIIB & regional connectivity: Georgia’s finance officials and partners keep pushing infrastructure finance; Nepal’s finance minister returned from AIIB’s Doha meeting where he was elected vice-chair, underscoring roads, power and communications investment. Tbilisi transport upgrade: Tbilisi Mayor Kakha Kaladze says the metro will be renewed with 111 new railcars, the first major addition in decades. Energy & prices: Dagestan’s fuel shortage and high prices are blamed on refinery shutdowns and supply dependence, while drivers say regulators aren’t doing enough. Politics & economy debate: Ex-PM Irakli Garibashvili and MP Giga Parulava trade accusations over who caused Georgia’s crisis and recovery. Sports & social backlash: A women’s league match in Guria was abandoned after players protested a club linked to an acquitted rape case.

Tbilisi Metro Upgrade: Tbilisi Mayor Kakha Kaladze says 111 new metro cars are being delivered via CRRC, calling it a historic milestone after the fleet last received new trains 34 years ago. Fuel Costs Relief: Georgia’s Governor Brian Kemp declared a state of emergency and suspended the motor fuel excise tax to ease high gas and diesel prices, also suspending weight limits for commercial vehicles. Finance Ministry Appointments: Georgia’s Finance Ministry named new heads for divisions of its Investigative Service and the finance minister discussed cooperation plans with the AIIB president. Customs & Transport: Customs control procedures were restored at Kazbegi checkpoint, while Georgia, Azerbaijan and Türkiye pushed faster customs cooperation to boost Middle Corridor trade. AI & Public Services (US): The US launched the AI-powered America.gov site, but its answers reportedly shifted within moments, raising questions about how government chat tools handle politics. Trade Tensions (US-Canada): A US ban on nearly $1bn of Canadian imports took effect, escalating Trump’s trade war with Canada. Market Watch (US fuel data): US reporting highlighted continued volatility in gasoline prices, with Georgia averages rising week-on-week.

Pharmacy Market Watch: PSP Pharma says a 2026 consumer study keeps it at the top of Georgia’s pharmacy market, citing 42% top-of-mind awareness, 82% of consumers using PSP, and 56% naming it the market leader. Middle Corridor & Trade Facilitation: Turkey’s deputy trade minister urged faster, simpler customs and shorter border waits at the Azerbaijan-Georgia-Türkiye customs committee meeting, arguing harmonized procedures and upgraded roads, rail and ports could boost Middle Corridor flows and attract investment. Diplomacy for Business: Georgian FM Maka Botchorishvili met Canada’s foreign minister Anita Anand in Toronto, with talks including Black Sea security and prospects to strengthen trade and economic ties via Georgia’s Middle Corridor role. Real Estate & Retail: Ambassadori Island Batumi unveiled “City Mall Batumi,” a 170,000 sq m retail and lifestyle project by IG Development Georgia, targeting a 2029 opening and 300+ brands. Energy/Regional Logistics: A World Bank report says Trans-Caspian Corridor (Middle Corridor) investments could more than triple trade volumes by 2040 and cut travel times, with Georgia among key corridor states. Aviation Sanctions Spillover: New US curbs on Iran’s aviation have halved Tehran flights and led to suspended or sharply restricted routes, including to Georgia and Azerbaijan, pushing travelers toward longer detours. Local Governance & Social Issues: Tbilisi protesters marked 670 days of demonstrations, demanding political prisoner releases and a return to Euro-Atlantic course.

Connectivity & Transport Finance: The Asian Infrastructure Investment Bank signed a EUR158.42m (about USD182m) deal with Georgia to upgrade 67.4 km of climate-resilient roads in Kakheti, boosting links between the Azerbaijan border, the East-West Highway and Black Sea ports. Customs & Trade Corridor Push: Azerbaijan, Türkiye and Georgia continued trilateral customs cooperation in Goygol, focusing on faster freight passage, simplified procedures and electronic information exchange; officials also stressed that Middle Corridor transit can unlock new investment opportunities. Regional Diplomacy: Armenia and Azerbaijan agreed to keep direct dialogue in New York, with economic and transport links on the agenda, while Armenia’s PM highlighted TRIPP progress and the peace treaty path at the UNGA. Aviation Sanctions Ripple: US sanctions on Iran’s aviation sector are driving flight cancellations and deeper isolation, with Iran filing complaints at UN/ICJ as countries halt services linked to Tehran. Local Economy & Infrastructure: Tbilisi roadworks on Rustaveli Avenue uncovered a cache of 1,000-year-old pottery, underscoring the city’s long economic crossroads role. Business & Community: First Commerce Credit Union and the Archbold Foundation launched the 2026 #FlamingoChallenge to fund breast cancer support locally.

Finance Diplomacy: Georgia’s Finance Minister Lasha Khutsishvili met Qatar’s Ali bin Ahmed Al Kuwari in Doha on the sidelines of the AIIB annual meeting, focusing on bilateral economic, investment and trade cooperation. Agribusiness Numbers: Georgia’s PM Irakli Kobakhidze said 2025 agribusiness output hit 20bn lari—2.5x 2012—while analysts note real growth shrinks once inflation and base-year prices are considered. Transit & Customs: Azerbaijan, Georgia and Türkiye held their 5th trilateral customs meeting in Goygol, with officials pushing faster border procedures and Middle Corridor upgrades to cut waiting times and unlock trade. Energy & Fuel Markets: SOCAR moved to cap petrol and diesel prices across Azerbaijan’s Italiana Petroli network, while Georgia’s own fuel-price watch shows gas averages rising week-on-week. Education Skills: Georgia’s deputy education minister met WorldSkills partners in Shanghai to discuss vocational assessment, certification and labor-market-aligned standards. Public Services: Tbilisi added 40 cleaning machines to improve city cleanliness, expanding municipal equipment capacity.

Diplomacy & Rights: Georgia’s Ombudsman Levan Ioseliani met Turkmenistan’s deputy FM Ahmet Gurbanov at the MFA in Turkmenistan, with both sides highlighting expanding political, trade-economic and humanitarian ties, plus plans for cooperation on human rights and parliament-to-parliament work. EU Accession Process: The European Commission is preparing membership “roadmaps” for the most advanced candidate countries, while Georgia, Turkey and Serbia remain stalled over concerns about democratic and judicial backsliding. Trade & Border Operations: Georgia’s Revenue Service says customs control procedures are fully restored at the Kazbegi checkpoint after operations were suspended due to an early-warning alarm in the Devdoraki Gorge. Domestic Economy (City Hall): Tbilisi City Hall reports delivery of specialized municipal equipment worth over 23 million lari by local firms GT Group and Tegeta. Politics & Security: Opposition held a “Russia Is the Enemy” march in Zugdidi marking the 33rd anniversary of the fall of Sokhumi, calling for a strong state, resilient economy, and European path. International Pressure on Iran: US sanctions are tightening aviation and banking links; reports say Azerbaijan, Georgia, Iraq, Oman and the UAE have revoked flight permissions for Iranian airlines.

Retail Expansion: Jumbo says it has identified locations for smaller stores in tourist areas, with first openings expected in 2027-2028; the group currently runs 89 stores across Greece, Cyprus, Bulgaria and Romania, and is also buying a ~60,000 sq m distribution center in Romania while adding logistics capacity in Thessaloniki. Sanctions & Aviation: The US is tightening Iran’s economic squeeze, with Treasury Secretary Scott Bessent saying envoys are pushing countries to restrict ties, including aviation and banking; reports say Azerbaijan and Georgia have revoked flight permissions for Iranian airlines, while the UAE suspended all Iranian airline flights. Energy & Shipping Risk: Trump rejected an Iranian proposal to reopen the Strait of Hormuz within seven days, while Iran says normalcy could return if US conditions from a June deal are met. Diplomacy & Trade Links: Sri Lanka appointed two honorary consuls in Georgia—one in Tbilisi and one in Batumi—to expand bilateral engagement and support the local Sri Lankan community. Tech & Security: Experts warn AI is moving deeper into warfare, potentially speeding decisions and raising nuclear escalation risks. Local Legal/Online Conduct: A Tbilisi court sentenced TikToker Zurab Kenchiashvili to 20 days in jail for insulting citizens on TikTok.

TRIPP & Middle Corridor: A new analysis says TRIPP’s biggest risk is “economic time” as Turkey, Azerbaijan, Kazakhstan and the EU already push parallel Trans-Caspian freight expansions—raising the stakes for Georgia and the region on construction speed, tariffs and operational efficiency. Azerbaijan Investment Push: President Ilham Aliyev told a Baku forum that Azerbaijan has attracted $350bn+ in investments over 20 years, with half as FDI, framing the South Caucasus as a connectivity and stability magnet. Regional Connectivity Diplomacy: Georgian PM Irakli Kobakhidze and Armenia’s Nikol Pashinyan signaled deeper strategic partnership and peace-through-connectivity messaging on UNGA sidelines, reinforcing Georgia’s role in the Middle Corridor. Georgia–Belarus Links: Belarus FM Maxim Ryzhankou met UN chief António Guterres and also discussed trade and economic cooperation with Georgian Deputy PM/Foreign Minister Maka Botchorishvili. Transport Rules Pressure: Russia proposes cutting visa-free stay for CIS and Georgian truck drivers to 90 days if those states pursue EU membership—an added uncertainty for regional logistics. Protests in Tbilisi: A “Georgia Against Ivanishvili” march drew renewed calls on political prisoners and opposition to extradition to Russia.

Border & Transport: Russia is proposing to cut the visa-free permitted stay for CIS and Georgian professional truck drivers from 180 days to 90 days if those states pursue EU membership. Media & Civil Society: Georgian press freedom advocates say journalists face physical, digital, psychological, and financial-legal pressure, with growing international concern about democracy under strain. Energy & Trade Corridors: Azerbaijan used the UN General Assembly to pitch itself as a Europe-Asia logistics hub, citing Middle Corridor freight growth and projects like Baku-Tbilisi-Kars and Alat Port; separately, SOCAR is considering exporting Uzbekistan-made diesel via its Kulevi terminal in Georgia. Regional Connectivity Deal-Making: Armenia’s PM says TRIPP implementation is moving via steps toward a TRIPP Development Company and ratification process, while Azerbaijan frames peace as already unlocking economic results. Aviation Sanctions Shock: Iran warns that if it can’t fly due to US aviation sanctions, no regional state should expect privileges; meanwhile, new sanctions have led to wider flight suspensions affecting routes including Georgia. Business & Finance: PASHA Bank discussed international financial cooperation at AIIF 2026 in Baku, focusing on investor confidence and private-sector financing. Legal/Customs: A Georgian court convicted a former deputy head of the Revenue Service over alleged abuse of powers in importing materials for counterfeit alcohol production.

Aviation Sanctions Hit Iran’s Routes: The UAE suspended all flights by Iranian airlines after new US sanctions took effect, with other Gulf states tightening access and reports saying Iranian carriers were also barred from Oman, Georgia and Azerbaijan—though some flights to Armenia, Russia, China and Türkiye reportedly continued. Middle Corridor & TRIPP Momentum: Georgia’s Economy Minister met China COSCO’s leadership, while regional connectivity talks at the Azerbaijan International Investment Forum highlighted the Middle Corridor’s trade potential and TRIPP’s role in value chains. Energy Cooperation Spotlight: Georgia’s Investment Agency CEO said Azerbaijani gas via the Southern Gas Corridor supports energy supply for 16 countries, linking infrastructure to regional cooperation. UNGA Diplomacy on Security: Georgian and Armenian leaders discussed South Caucasus security and joint economic projects, as Azerbaijan-Armenia peace progress was framed as a growth driver. Local Governance Watch: Tbilisi School No. 21’s status swung from “unsafe” to reopening for students, raising questions about how decisions and expert assessments were handled. Business & Legal Pressure: US regulators pushed a case involving Hyundai over a national origin bias probe, while a Georgia judge paused a Waffle House tobacco-fee dispute pending arbitration.

Connectivity & Trade: Georgia’s PM Irakli Kobakhidze told the UN General Assembly that the country plans to invest $7bn by 2032 in transport and infrastructure, including railway upgrades, the Anaklia deep-sea port, a new Tbilisi airport and highway expansion, alongside a Black Sea submarine fiber-optic cable to strengthen Europe-Asia digital ties. Regional Peace for Growth: Georgian FM Maka Botchorishvili said progress in the Armenia-Azerbaijan peace process is key for stability and economic growth across the South Caucasus, while PM Kobakhidze also framed the region as having a “genuine opportunity” to move beyond past divisions. Middle Corridor Push: Azerbaijan’s Deputy FM Elnur Mammadov highlighted the Middle Corridor’s wider role for trade, industry and even food markets via a “digital corridor,” and Georgia’s UN remarks echoed the same connectivity agenda. Finance & Talent: Tether, Pave Bank and GFTN signed an MoU for a Georgia-Singapore fintech scholars program starting in Aug 2027, linking top Georgian students to Singapore’s fintech ecosystem. Business Diplomacy: The British Embassy held a Batumi business brunch with Georgian firms including TBC Bank and Bank of Georgia to discuss regional projects and future cooperation. Azerbaijan Investment Signal: Azerbaijan climbed to 60th in the 2026 Global Attractiveness Index, with strong gains in dynamism and sustainability, as discussed at AIIF 2026 in Baku. Georgia-Serbia: Kobakhidze met Serbian President Aleksandar Vučić at the UN sidelines, with both sides pointing to rising trade and final-stage talks on a free trade agreement.

Iran Aviation Sanctions Hit Region: The UAE and Oman suspended Iranian airline flights after new US measures targeting third-country firms, with reports of service halts also affecting Georgia, Azerbaijan and Iraq—raising new travel and trade friction across the South Caucasus. TRIPP Connectivity Push: Georgia’s officials backed the US-backed “Trump Route for International Peace and Prosperity” (TRIPP), framed as a multimodal link under Armenian sovereignty that could boost the Middle Corridor; Kazakhstan called it a logical extension that could cut routes to Europe by about 1,000 km. Transport Investment Plan: Georgia plans about $7bn by 2032 for rail, ports, aviation and roads, spotlighting Anaklia and a new Vaziani airport to strengthen transit capacity. Energy Diversification Question: Armenia’s gas supply debate resurfaced as experts say short-term alternatives to Russian gas are limited, with Iran constrained by pipeline capacity and Azerbaijan/Turkmenistan seen for longer horizons. Fintech Education Deal: Tether signed an MoU with Pave Bank and GFTN to explore a Georgia–Singapore Fintech Scholars Program starting in 2027 for STEM students from Tbilisi State University. Security & Justice: A foreign national extradited from Tbilisi to the US faces terrorism-related charges tied to ISIS and al-Nusrah Front support networks.

TRIPP & Middle Corridor: Azerbaijan’s Deputy FM Yalchin Rafiyev told the 7th Caspian Business Forum in New York that the “Trump Route” can boost South Caucasus growth and help consolidate peace, stressing shorter, more predictable routes and resilient supply chains. Regional Connectivity: Azerbaijan’s FM Jeyhun Bayramov also highlighted TRIPP’s role in multimodal links between mainland Azerbaijan and Nakhchivan, plus energy connectivity, digitalization, and smoother customs. Georgia’s UN diplomacy: Prime Minister Irakli Kobakhidze is set to address the UN General Assembly today, focusing on occupation, reconciliation and Georgia’s connectivity projects; he also met UN chief António Guterres to discuss cooperation and security in occupied territories. Transport investment: Georgian Railway signed a $3.29m contract to renovate Tbilisi Central Station platforms 2 and 3, including canopies, drainage, lighting and new escalators. Aviation & sanctions pressure: Iran’s airlines cancelled some international routes after new US aviation sanctions; Georgia and Azerbaijan confirmed suspensions involving Iranian flights. Local governance & services: Tbilisi and nearby areas will face 36 hours of water restrictions from Sept 26 due to bridge works on the Aragvi River. Business & trade: Georgia exported fruit and vegetable juices to 47 countries; the economy ministry also met China’s BAIC International on cooperation prospects. Controversy: A Georgian Dream-linked smear campaign led to cancellation of anti-government musician Kordz’s Gori concert citing “security concerns.”