Russia’s Big Business Comes to Georgia

Up to hundred leading businessmen of Russia will discuss investment projects in Georgia at the Russian-Georgian Business Forum in Tbilisi on May 28-29, described by the Georgian officials as the largest-ever business event in the country.

“Russian businessmen are ready to invest billions in Georgia,” German Gref, the Russian Minister for Economy and Development told reporters upon his arrival in Tbilisi on May 27.

“Russian businessmen come to Georgia with particular investment projects; many of them are acceptable for us, some of them need to be thoroughly considered,” Georgian Prime Minister Zurab Zhvania, who paid visit to Moscow on May 24-26, told reporters.

The details of the investment projects will become clear during the forum.

Georgian President Mikheil Saakashvili called for the Russian businessmen for investing in Georgia, particularly in Adjarian Autonomy.

He said, “business has no nationality,” hinting that Georgia is open for both Russian and western investments. In exchange Georgian officials vow to create favorable business climate in the country.  
 
Details of the Business Forum in Tbilisi were agreed during the Georgian Prime Minister’s visit to Russia. Boosting of economic ties was one of the top issue discussed in Moscow, Zurab Zhvania said after the visit.

Russian Prime Minister Mikhail Fradkov said after talks with his Georgian counterpart on May 25 that the two countries prepared an agreement on economic cooperation.

Russian news agency RIA Novosti reported quoting Mikhail Fradkov that the issues of increasing electricity supply to Georgia, as well as participation of the Russian experts in rehabilitation of the Georgian power facilities were discussed during the talks with Zurab Zhvania.

“We also discussed possibilities of setting up joint energy ventures, as well as investments in the Georgia’s transport and oil business,” the Russian Prime Minister said.

“We are sure that Russian investments have a great future in Georgia,” Zurab Zhvania told reporters after the talks with his Russian counterpart.

Russia has already invested in Georgia’s energy sector. Last year, two Russian power giants Gazprom and Unified Energy Systems of Russia entered to the Georgian energy market.

Ex-President Shevardnadze’s administration’s decision to give a go-ahead to the entry of Russian energy giants was harshly criticized by then opposition leaders, who later took over the power and now lead the country.

Georgian officials say that the country’s legal base offers a favorable conditions to the foreign investors and gives no privileges to the local businessmen, however independent analysts say that current tax code still remains an obstacle to business development in Georgia.

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