SOME ISSUES OF ECONOMIC RELATIONS BETWEEN GEORGIA AND RUSSIA
SOME ISSUES OF ECONOMIC RELATIONS BETWEEN GEORGIA AND RUSSIA

Summary/Abstract: Since the collapse of the former Soviet Union, the Russian Federation has always sought to maintain its leverage over the former Soviet republics. The same was towards Georgia, which had been an independent state in 1918- 1921 and was violently "Sovietized" in 1921. Since the early 1990s, Georgia had been a member of the Commonwealth of Independent States (CIS) despite the fact that it gained its independence. The goal of this was: First, to maintain traditional ties before establishing new economic relationships; second, to ensure territorial integrity. Unfortunately, the CIS failed to live up to its expectations, more than 20% of Georgia's territory was occupied by Russia and Georgia pulled out of the CIS block. Currently, Georgia has severed diplomatic relations with Russia. The economic relations between them are characterized by the volatility, which is often determined by political factors from Russia’s side. In the post-Soviet era, Russia still managed to own large energy facilities in Georgia. Its interests are far greater than those of railroads and pipelines in Georgia, which are still unrealized. Nevertheless, Russia is an important trading partner for Georgia in terms of export, import and investment. In addition, many of our compatriots are employed in Russia and send a large amount of remittances to Georgia. Relations between the two countries were particularly strained - especially after the August war in 2008. Georgia will never accept the occupation of its indigenous territories, so Russia is deeply concerned about Georgia's Euro-Atlantic aspirations. Currently, bilateral economic relations are also tense, and issues of bilateral sanctions are being discussed, which will not be beneficial to either party. In the light of the foregoing, the paper deals with the dynamics of exports, imports, investments, remittances and more between Georgia and Russia at the contemporary stage.

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