Georgia predicts 20-25 pct increase in wine export by entering Russian market
By Sabina Idayatova
The Georgian Agriculture Ministry predicts an increase in wine export by 20-25 percent with the opening of the Russian market.
"It is supposed to export 7-10 million bottles of wine this
year," Georgian Minister of Agriculture David Kirvalidze said at
the press conference on Monday.
Russia banned imports of Georgian wines and two popular brands of
mineral water in 2006, citing poor quality of the products, in a
move widely condemned in Georgia.
Following October 1 parliamentary elections, the new Georgian
government started talks with Russia to get Georgian product back
to the Russian market. After the negotiations, both sides stated
that the embargo on the Georgian products could be lifted in
spring. This process is in progress now.
According to Kirvalidze, as a result of two inspections of the
Russian consumer watchdog-Rospotrebnadzor, 65 wine companies and
two mineral water producing companies received positive
estimates.
Meanwhile, the Georgian Borjomi mineral water received a state
registration certificate in Russia and the Russian branch of the
company - IDS Borjomi International - will conduct deliverlies. The
General Director of IDS Borjomi Georgia Zaza Kikvadze expressed his
satisfaction with the returning to the Russian market, considering
it as a promising one.
Kirvalidze further said that according to the data for today, seven
Georgian companies have already registered the production in the
Russian sanitary service, and this process continues. "The export
of the first party will already be possible in the near
future."
At the same time Kirvalidze noted that the negotiations held in
Moscow on April 1 on the export of Georgian agricultural production
in Russia were successfull.
"An agreement in principle has already been reached. Both Georgian
and Russian experts continue to work over technical regulations.
This process will soon come to the end, and step by step the
Georgian fruit and vegetables will be entered the Russian market,"
Kirvalidze stressed.
Kirvalidze earlier said that the exports of the Georgian
agricultural products to the Russian market would be implemented in
phases.
The first phase of the inspection by Rospotrebnadzor took place
in Georgia from February 25 to March 1. According to the results,
36 alcohol companies and four manufacturers of mineral water were
able to register their products for sale in Russia.
The second phase of inspection was held on Apr. 2-5 when the
Rospotrebnadzor experts checked the rest 35 companies willing to
export to Russia.
Georgia broke off diplomatic relations with Russia after their
August 2008 war over the breakaway republics of Abkhazia and South
Ossetia. Georgia lost one-fifth of its territory after the two
republics broke away. Georgia announced the two unrecognized
republics as occupied territories in September 2008.
Till the end of 2005 economic relations between Georgia and Russia
were developing sufficiently actively, the turnover was on the
rise, the intergovernmental economic commission was functioning.
However, the actions undertaken by the Russian side first deterred
the rate of development, then practically brought the level of
economic co-operation down to minimum.
The capacity of Russian investments in Georgia in 2009 comes to
amount of 10 253.4 Million US Dollars, and for second quarter of
2010 - 17 603.5 Million US Dollars.
The normalization of the previous bilateral relations between two
states is not far off, however warming between neighbors mostly
depends on the compromise that seems will take time from both
sides. Herewith, Georgia is ready to restore relations, except the
means of its territorial integrity, however, Russia is expecting
conclusive and definitive position toward Russia.