AGP Executive Report

Legal & Politics: Aleko Elisashvili’s lawyer has filed a lawsuit in Tbilisi City Court against Parliament Speaker Shalva Papuashvili, alleging repeated public remarks violated Elisashvili’s presumption of innocence and harmed his honor and business reputation. Telecom & Trade: IT specialist Ruben Muradyan says Team Telecom Armenia’s explanation of its AzerTelecom cooperation doesn’t remove risks, warning that “no plans” for transit can differ from what the deal could enable for Armenian traffic and dependence. Real Estate: Archi is running a one-day “Big Discount Day” on July 5 for apartments at Archi Horizon in Tbilisi’s Ortachala, with buyers encouraged to register in advance. Business & Education: GEMS School Management and Omnia Georgia signed a pre-operational deal to open a GEMS-managed international school in Tbilisi’s Isani district in September 2029. Regional Economy: Georgia and Tajikistan’s prime ministers met in Dushanbe, with both sides stressing deeper cooperation across sectors and coordination in international forums. EU Sentiment: A new poll reports 71% of Georgians support EU accession, while 67% trust the EU—though the bloc’s positive image fell to a decade low. Competition/Regulation: Georgia’s Competition Agency fined “Orbi Group Batumi,” signaling continued enforcement in the local market.

US-Iran Talks & Trade Security: Mediators said the first US-Iran negotiation round in Switzerland delivered “encouraging progress,” with a 60-day roadmap and a mechanism to prevent incidents in the Strait of Hormuz—an issue that matters for regional commerce and Georgia’s wider neighborhood stability. Georgia–Tajikistan Business Push: PM Irakli Kobakhidze’s first official visit to Tajikistan highlighted plans to deepen cooperation across sectors and coordinate in multilateral frameworks. Connectivity & Telecom: Armenia’s Team Telecom and Azerbaijan’s AzerTelecom agreed on commercial internet transit, raising questions about regional route diversity and infrastructure interdependence. EU Accession Mood Check: An EU Neighbours East survey found 71% of Georgians back EU membership, but 49% say the country isn’t moving the right way; unemployment, poverty and low pay top concerns. Digital Tourism Boost: Google Street View launched in Georgia, aiming to improve global visibility and support tourism and small business promotion. Competition Watch: Georgia’s Competition Agency fined Orbi Group Batumi 500 lari for incomplete information provision. Private Sector Moves: GEMS School Management and Omnia Georgia signed a pre-operational deal to open a GEMS-managed international school in Tbilisi’s Isani district in 2029.

Georgia–Tajikistan Deals: PM Irakli Kobakhidze’s first official visit to Dushanbe delivered three economic cooperation agreements covering tourism, civil aviation and a joint intergovernmental commission, with officials flagging direct flights and growing trade as key business opportunities. Infrastructure & Tourism Push (Adjara): Adjara leadership reviewed end-stage works on the Khulo–Zarzma road and discussed new resort projects at Goderdzi, aiming to improve access, boost tourist flows and attract investment. Energy Regulation & Grid Links: GNERC member Giorgi Pangani took part in the first meeting on South Caucasus Energy Connectivity in Belgium under the EU4Energy framework, pointing to continued work on regional energy integration. EU Accession Mood: A new EU-commissioned survey finds 71% support for EU membership in Georgia, but positive views of the EU itself fell to 40%—the lowest in a decade—while unemployment, poverty and low pay top public concerns. Food & Trade Flows (Flowers): Georgia bought a record 218.2 tons of flowers from Armenia in May, after Russia imposed a temporary ban on Armenian flower imports from May 22, reshaping regional supply dynamics. Local Business Loss: Hospitality pioneer Temur Ugulava, credited with bringing Holiday Inn to Georgia and building Adjara Group’s hotel brands, died at 56.

Georgia–Tajikistan Deal-Making: Georgian PM Irakli Kobakhidze’s June 19-20 visit to Dushanbe produced a joint communiqué and 11 cooperation documents, including a new intergovernmental economic commission, aviation and tourism agreements, and audit/corruption cooperation—aimed at boosting trade and direct air links. Central Asia Transit Push: Kobakhidze said deeper Central Asia ties are a top foreign economic priority to unlock Georgia’s transit potential, with Tbilisi positioning itself as a Europe–Central Asia corridor. Armenian Flowers Surge: Georgia imported a record 218.2 tonnes of flowers from Armenia in May (about $750k), with Armenian blooms dominating total imports; the spike follows Russia-linked restrictions that pushed Armenian producers to seek alternative markets. Crypto-Laundering Accusations: Opposition MP Lasha Parulava alleged a network laundering “Russian bloody money” in Georgia and warned of “international sanctions,” tying the claims to the Security Service and Georgian Dream. Energy Corridor Watch: Commentary on the Middle Corridor and Hormuz risks highlighted how shipping confidence and regional energy routes can quickly swing global fuel markets.

Georgia–Tajikistan Deal-Making: Georgian PM Irakli Kobakhidze wrapped up a June 19-20 visit to Dushanbe where both sides signed 11 cooperation documents, including air transport, tourism, education/science, climate and a joint intergovernmental economic commission—aimed at boosting trade and Georgia’s transit role. Central Asia Push: Kobakhidze said deeper Central Asia ties are a top foreign economic priority, with Georgia linking seven countries to Europe via the Black Sea and preparing further visits in the region. Armenia–Georgia Customs Talks: Armenia’s ambassador met Georgia’s newly appointed Revenue Service head to discuss trade, economic and customs cooperation. Azerbaijan Energy Snapshot: Azerbaijan reported natural gas production of 20.935 bcm in Jan-May 2026 and said exports rose in volume but fell in revenue amid lower prices. Trade Flows: Georgia’s trade turnover with Azerbaijan hit $570m in Jan-May (+9%); passenger car exports to Azerbaijan fell in value while imports from Azerbaijan grew. Sanctions & Shipping Risk: An Indian captain of a sanctioned Russian shadow-fleet tanker was arrested in the UK and charged with breaching sanctions, underscoring ongoing enforcement pressure on maritime trade routes.

Central Asia Transit Push: Georgian PM Irakli Kobakhidze says deeper ties with Central Asia are now a top foreign economic priority, aiming to boost Georgia’s transit role between Europe and the region as he wraps up a visit to Tajikistan and lines up further stops including Kazakhstan and July return visits by Uzbekistan and Turkmenistan. Customs & Revenue Cooperation: Armenia’s ambassador met Georgia’s newly appointed Revenue Service head to discuss trade, economic and customs cooperation, while Georgia also discussed customs cooperation with Armenia in Tbilisi. Bilateral Deals in Tajikistan: A joint communiqué after Kobakhidze’s June 19-20 visit highlights a new chapter in Georgia–Tajikistan relations and signed agreements across civil aviation, agriculture, tourism, science, education, culture, sports and climate change. Trade with Azerbaijan: Georgia–Azerbaijan trade turnover hit $570m in Jan-May (+9% y/y); imports from Azerbaijan rose 24.5% to $300.5m, while exports fell 4.6% to $269.2m, with passenger cars still a key export line. EU Pressure on Georgia: European Parliament reports call for targeted sanctions and raise concerns over democratic backsliding and reforms, including possible visa-free travel suspension if inaction continues.

Georgia–Tajikistan Diplomacy: Prime Minister Irakli Kobakhidze’s June 19–20 visit to Dushanbe wrapped with a joint communiqué and a package of agreements, with both sides calling it a “new chapter” and signing deals across civil aviation, agriculture, tourism, science/education, culture, sports and climate change, plus a new intergovernmental economic commission. Trade Flows: Georgia’s foreign trade turnover with Azerbaijan rose 9% in Jan–May to $570m; imports from Azerbaijan climbed 24.5% to $300.5m, while Georgia’s exports to Azerbaijan fell 4.6% to $269.2m. Cars Market: Georgia exported 1,926 passenger cars worth $66.4m to Azerbaijan in Jan–May, but Azerbaijan’s imports of cars from Georgia dropped 38% in value. Economy Watch: GeoStat says Georgia’s Q1 2026 GDP grew 9% year-on-year, led by information/communication, transport, trade and financial services, while agriculture and construction contracted. Banking Policy: Georgia reduced the foreign-currency reserve requirement from 25% to 20%, freeing about $250m for the sector without changing loan activity. EU Signal: An EU Parliament report again criticized Georgia over democratic backsliding and reform gaps, raising pressure on visa-free travel and sanctions compliance. Trade Integrity: Georgia’s environment and agriculture ministry denied claims that Armenian strawberries are being re-exported to Russia via Georgia under third-country labels. Regional Connectivity: Georgia and Tajikistan also signed 11 cooperation documents aimed at expanding trade, transport/logistics and energy links.

Georgia–Tajikistan Deal-Making: Prime Minister Irakli Kobakhidze kicked off his first official visit to Dushanbe, signing 11 cooperation documents with Tajikistan covering trade, transport/logistics, energy, industry, agriculture, education, culture and tourism—aimed at boosting long-term economic ties. Georgia’s Trade Snapshot: Geostat says Georgia’s goods trade (excluding undeclared trade) rose 3.7% y/y in Jan–May 2026 to $10.439bn; exports hit $3.107bn (+19.8%) while imports fell 1.9% to $7.331bn, leaving a $4.224bn deficit (40.5% of turnover). EU Politics & Business Climate: An EU NEIGHBOURS East survey finds 71% of Georgians support EU accession (67% trust the EU), while the European Parliament adopted a sharply critical Georgia report, citing democratic backsliding and possible visa-free suspension risks. Banking & Dollarization: Georgia’s banking sector cut foreign-currency reserve requirements from 25% to 20%, freeing about $250m for the sector, with officials saying it won’t slow lending. Food Supply Pressure: Frozen fish imports rose sharply, with average import prices up 30%, raising costs for retail chains. Regional Finance: Lion Finance Group’s Armenian subsidiary Ameriabank placed $50m in 8% perpetual AT1 notes, fully allocated ahead of schedule. EU–Azerbaijan Energy Trade Context: A new analysis highlights the EU–Azerbaijan relationship as pragmatic and interest-driven, centered on the 1999 Partnership and Cooperation Agreement.

Tbilisi Tuition Reform: Tbilisi Mayor Kakha Kaladze says the city’s student tuition funding program will be amended from the autumn semester, with the master’s stipend for successful students rising to 1,000 GEL per semester from 562.5 GEL. Sanctions & Ports: Georgia’s Foreign Ministry summoned the UK Ambassador over UK sanctions concerns, rejecting claims that a Russian “shadow fleet” vessel accessed a Georgian port earlier in 2026 and stressing Tbilisi has not violated sanctions. Tourism & Business Links: Preparations are underway for the Georgia–Israel Business Forum in Jerusalem, with Israeli Knesset member Dr. Akram Hasson saying it should unlock a new wave of investment, including hotel projects tied to Wyndham. Tech & Startups: Global Tech Weekend Tbilisi (June 19–21) is set to bring over 10,000 attendees and regional tech ecosystem players together across multiple stages and networking areas. Energy Logistics: Wildberries plans a Central Asian logistics hub in Uzbekistan, investing over $300 million and using a new sorting and warehouse complex to consolidate regional distribution and exports. EU Pressure on Georgia: Multiple reports highlight the European Parliament’s push for targeted sanctions and visa-free travel concerns tied to Georgia’s reforms and political prisoners.

Tbilisi City Hall Watch: Tbilisi Mayor Kakha Kaladze said perpetual Category A taxi permits will be canceled if the issuance fee isn’t paid, with daily penalties accruing for unpaid holders. Municipal Infrastructure: The city also plans a municipal multi-functional sports center on the Tskneti Highway, with a design competition set to run until July 17. Energy & Renewables: Flamingo Capital Group Georgia installed 13 solar power plants near Tbilisi’s Vaziani area, totaling 6.5 MW. Regional Trade Pressure: Armenia reported exporting 411 tons of greenhouse vegetables and strawberries (plus about 1.8 million flowers) to 15 countries, including Georgia, while Russia continues restrictions on multiple Armenian products; Armenia also said apricot exports reached 162 tons with first shipments to Ukraine and Georgia. EU/Policy Signals: The European Parliament adopted a report calling for reforms first and membership later, while also raising concerns over political prisoners and visa-free travel risks. Business & Finance: Georgia’s National Bank kept the monetary policy rate unchanged at 8.25%. Tech & Events: Global Tech Weekend Tbilisi opens June 19–21, with international guests arriving ahead of the main program.

EU-Georgia Policy: The European Parliament adopted reports urging Georgia to release political prisoners and warning that continued inaction could jeopardize visa-free travel, while also criticizing the Kulevi terminal’s sanctions compliance and alleging a strategic turn toward China, Russia and Iran. Occupied Regions: Russia’s envoy Marat Kambolov has been approved as the “prime minister” of the Tskhinvali (South Ossetia) region, with local officials citing demographic decline and the need for jobs and services. Energy & Trade Outlook: Georgia’s wider economic links remain in focus as reports highlight EU moves on trade support for Armenia amid Russian restrictions, alongside ongoing regional energy and logistics cooperation themes. Business & Economy: Georgia’s National Bank kept the monetary policy rate unchanged at 8.25%, while separate coverage points to foreign capital interest in Georgia’s economic performance and the growth of tech exports. Global Context for Markets: China’s nuclear buildout is accelerating on AI-driven power demand, and EU health ministers debate coordinated medicine pricing responses to US “most favoured nation” pressure—both signals that could shape future costs and investment flows.

EU-Georgia Relations: The European Parliament adopted a Georgia report by 436 votes to 145, warning that democratic backsliding and repression could stall EU progress and pushing for the release of people imprisoned on political grounds; it also flags lower Georgia alignment with EU sanctions and concerns about possible use of Georgian ports and refining infrastructure to bypass restrictions. Sanctions & Maritime Scrutiny: Georgia’s Foreign Ministry summoned the British ambassador over UK statements tied to the SILVAR vessel, saying Georgia has no record of sanctions violations and calling the UK emphasis “worrying.” Monetary Policy: The National Bank of Georgia kept the refinancing rate unchanged at 8.25%, citing May inflation at 5.7% driven mainly by energy prices and noting recent oil-price declines amid optimism around a US-Iran peace path. EU Trade Pressure on the Region: The EU is reportedly preparing emergency trade support for Armenia, including tariff cuts on about 20 food and agricultural categories worth roughly €420m annually, to offset Russian import restrictions. Legal/Media Case: Tbilisi prosecutors launched an investigation into alleged “false accusation” linked to film director Goga Khaindrava and the TV company Formula. Business & Tourism: Nino Jeladze represented Georgia at central banking meetings in London, discussing reserves, CBDCs and AI; Georgia also eyes more tourism and investment momentum through events like Global Tech Weekend Tbilisi 2026.

Tbilisi Business & Industry: Ishvi, a new craft brewery, is set to open in Tbilisi at the end of June after three years of development, with planned annual capacity of 365,000 liters and in-house lab quality control; at launch it will roll out five beer styles including NEIPA, Belgian-style wheat (WIT) and stout. Energy & Costs: U.S. fuel prices stayed volatile in the week ending June 6, with diesel averaging $4.94 per gallon in Georgia (down week-on-week) and multiple counties reporting standout low prices, underscoring how global oil shocks and shipping disruptions keep feeding local pump swings. EU Health Policy: EU leaders and industry at an Athens conference warned Europe must choose between staying a pharmaceutical producer or relying more on imports, as off-patent medicines are framed as a strategic asset for supply security and jobs. Sanctions & Shipping: The UK seized and charged a captain tied to Russia’s “shadow fleet” tanker Smyrtos, accused of sanctions-breaching oil shipments, with the case now moving through UK courts. Regional Trade Links: Georgia and Serbia are preparing a free trade agreement, while Georgia–Kyrgyzstan talks highlighted plans to deepen the Middle Corridor and simplify trade and transport connections.

Georgia-Serbia Trade Push: Georgian PM Irakli Kobakhidze and Serbian President Aleksandar Vucic said a free trade agreement is close, with Serbia to open an embassy in Tbilisi; Vucic cited 36.4% growth in bilateral trade in early 2026 and urged faster transport links to tap the Middle Corridor. Banking & Households: Georgia’s National Bank tightens foreign-currency lending: from July 1, loans up to GEL 1 million must be in GEL (with limited exceptions), affecting FX-linked and indexed credits. Remittances: Remittances rose in May to up to $400m, up 7.1% year-on-year, led by the US ($64m) and with China’s share still small. Jobs & Wages: GeoStat reports Q1 2026 average nominal earnings up 8.9% to 2,363.8 GEL, with the biggest gains in mining and quarrying and financial/insurance. Capital Markets: Nutrimax’s debut public bonds highlight growing corporate bond activity; the NBG vice-governor stressed more issuers mean more long-term financing options. Regional Logistics: Kyrgyz logistics firms increasingly use the Middle Corridor via Black Sea, Azerbaijan, Georgia and the Caspian, citing steadier volumes amid regional instability. Energy & Sanctions Spillover: UK sanctions and court cases continue around Russia’s “shadow fleet,” underscoring how global oil trade and enforcement can ripple into regional markets. EU Dialogue Signal: Georgian Parliament’s foreign relations chair asked Luxembourg to raise with the European Commission the resumption of dialogue with Georgia, including on the transparency law.

Consumer Policy: Georgia’s government will allocate 53,000 GEL to build a website with details on the “social basket” and discounted essential products, run by the Competition and Consumer Protection Agency. Aviation & Tourism: Russian airline Red Wings expands its 2026 summer network to Georgia, adding six new direct Batumi routes and serving 15 Russian cities overall. Tech & Marketing: Coach Visibility Agency released a free guide for fitness and wellness coaches on how to get their brands cited in AI answers as AI search cuts into traditional Google traffic. Maritime Sanctions: The UK seized the Russian-linked “shadow fleet” tanker Smyrtos in the English Channel; the captain Ajay Pant was charged by the National Crime Agency for alleged sanctions breaches. Regional Trade: Kazakhstan is pushing the Middle Corridor with a planned $10bn rail and infrastructure push, citing rising China-to-Europe freight via Azerbaijan, Georgia and Türkiye. Energy: BP and SOCAR say advanced tech at Azerbaijan’s Azeri–Chirag–Gunashli field is boosting recovery and output. Business & Agriculture Data: Georgia’s slaughterhouse sector in 2025 handled 511.1k livestock units and produced 65,279.8 tons of meat, with poultry the largest share of slaughtered output. Diplomacy: Serbia’s Vučić met Georgia’s Kavelashvili in Tbilisi, highlighting plans to deepen trade, tourism, transport and energy ties. Events: Tbilisi’s Taste Tbilisi food-and-music festival returns June 20–21 at Leonidze Park.

Georgia-Serbia Business Push: President Mikheil Kavelashvili met Serbia’s Aleksandar Vučić in Tbilisi, with both sides stressing expanded trade, business ties, tourism, transport, energy and new technologies, as Georgia and Serbia continue talks on a free trade agreement. Fraud Crackdown: Georgia’s Interior Ministry reported arrests in Tbilisi over alleged misappropriation and fraud involving public position and official-linked schemes, with penalties up to nine years. Transport Oversight: Georgia’s Infrastructure Minister Revaz Sokhadze said special scales will be installed on highways to record cargo truck weights, as part of ongoing enforcement. Crypto Mining Enforcement: Police in Mestia seized 76 additional crypto mining devices, bringing the total to 330, citing illegal electricity use and income generation. Green Finance Boost: Microbank Crystal received GEL 300,000 in technical assistance from the Asian Development Bank to expand green lending, with a focus on MSMEs and women entrepreneurs. Regional Trade Link: Russia shipped another wheat batch to Armenia via Azerbaijan, underscoring the growing rail transit corridor that now connects Armenia with Georgia and Turkey. Food & Tourism Calendar: Tbilisi’s Taste Tbilisi festival returns June 20–21 at Leonidze Park with street food, live music, Georgian drinks and an agro-market featuring rural entrepreneurs.