Russia's aggression in Ukraine and the international sanctions imposed on it in response to this will hurt the Georgian economy, however, at this stage, the current situation in Georgia will not lead to an economic crisis.
Georgia's economic dependence on Russia: Trade, tourism, remittances, and Russian companies in Georgia
I.Key FindingsTransparency International Georgia has studied Georgia's economic dependence on Russia, as it poses a threat to the country. In particular, we analyzed the data on Georgia-Russia trade, incoming tourists, and remittances from Russia, as of the end of 2021, as well as Russian companies operating in Georgia and their participation in public procurement.
Key findingsFrom June 1, 2020, to September 15, 2021, up to 4,500 simplified public procurement contracts for the purchase of construction services have been signed. The total value of these contracts is up to GEL 125 million.
I. Key findings and recommendations
In March 2020, the Poti Port Operator Company received a land-use permit for the first stage of the port expansion and began construction of a new dock, while the government has not yet begun searching for new investors to build the Anaklia Port.
The Covid-19 pandemic has reduced Georgia's economic dependence on other countries, including Russia. In 2019, Georgia received USD 1.6 billion in revenue from Russia through tourism, remittances and exports, which was 9% of Georgia's GDP. In 2020, Georgia received about USD 900 million in revenue from Russia through the same channels, which was about 5.7% of GDP.
Transparency International Georgia studied 10 Georgian private companies that received the most money from simplified (direct) public procurement in 2020. Last year, all 10 companies received contracts worth a total of GEL 165 million.