AGP Executive Report

Energy & Transit: BP has officially handed operatorship of the Baku–Tbilisi–Ceyhan oil pipeline to Azerbaijan’s SOCAR, with SOCAR’s subsidiary taking over BTC transit sections and shared activities with the South Caucasus Pipeline—keeping the commercial structure intact. Ports & Logistics: A first press tour of Batumi’s Oil Terminal and Batumi Seaport highlighted the facilities’ role in connecting Caspian and Central Asia supply to Black Sea and European markets, with 1,200+ employees and cargo volumes reported for early 2026. Trade & Investment: Georgia and Uzbekistan are stepping up economic ties ahead of President Mirziyoyev’s July 2 visit, with a roadmap covering trade, transport, logistics, hospitality and investment. Infrastructure Planning: Tbilisi has launched a tender to study the city railway corridor using existing lines, aiming to improve links to Mtskheta, Rustavi, the airport and eastern districts. Industry & Business: GM PHARMA unveiled a renewed brand identity, stressing its manufacturing and export footprint across the region. Public Watchdog: Studio Monitori says it faced a coordinated cyberattack after publishing an investigation into “Trump Tower” in Tbilisi and alleged online casino links.

Energy & Transit: BTC pipeline operatorship shifts from bp to SOCAR Midstream Operations LLC effective 1 July 2026, covering all BTC sections in Azerbaijan, Georgia and Türkiye (with Sangachal terminal staying under bp), while BTC has already moved 4.7bn barrels to world markets. Urban Infrastructure: Tbilisi City Hall launched an international tender for a technical-economic feasibility study of a city railway corridor using existing rail links to Mtskheta, Rustavi and Tbilisi airport, with applications open until July 13. Trade & Business: The Georgia–Uzbekistan Business Forum is underway in Tbilisi with ~70 Uzbek firms and ~250 Georgian firms, focusing on construction, logistics, agriculture, healthcare/pharma, textiles and B2B deals. Real Estate: Galt & Taggart reports Tbilisi apartment sales at 3,748 units in May 2026; demand is steady in the primary market while secondary sales jumped, with prices broadly stabilizing. Education & Industry: Georgia’s education reform will overhaul textbooks by 15 Sept 2028 and gradually introduce mandatory school uniforms from grades 1–6 this year. Public Debate & Media: Studio Monitori says it faced a coordinated cyberattack after publishing an investigation into “Trump Tower” in Tbilisi and alleged online casino links. Regional Energy Policy: Armenia’s gas tariffs for residents will remain unchanged, effective 1 Aug 2026, according to the PSRC.

Business & Trade: The Georgia-Uzbekistan Business Forum is underway in Tbilisi, with about 70 Uzbek firms and 250 Georgian companies lining up investment pitches and B2B meetings across construction, logistics, agriculture, healthcare, pharmaceuticals, and textiles. Regional Connectivity: Georgian PM Irakli Kobakhidze met Kazakhstan’s Olzhas Bektenov in Astana, agreeing to deepen trade, investment, energy, transport/logistics, and digital cooperation under a new strategic partnership framework. Industry & Agriculture: Georgia’s Minister of Environmental Protection and Agriculture visited Nutrimaxi’s animal feed plant in Kvemo Kartli, highlighting 80,000 tonnes annual capacity and exports across the region, alongside state support for compound feed production. Tourism & Construction: A castle-inspired five-star Sky Castle resort is planned near Batumi (Gonio), aiming for 2031 opening with 430 rooms and a medieval-themed design tied to the Battle of Didgori. Legal & Compliance: Georgia’s courts sentenced two Kinderly Georgia founders to 10 years each over embezzlement tied to surrogacy contracts, while US regulators pursued Georgia employers over religious accommodation disputes. Fraud Tech Watch: A new investigation describes how AI-powered tools from American tech are being used to industrialize online romance scams, including cases involving victims from Georgia.

Surrogacy Crackdown: Tbilisi City Court sentenced Kinderly Georgia founders Armen Melikyan and Ruslan Tymoshenko to 10 years each for embezzling over ₾2 million from Chinese clients and surrogate-related funds, highlighting regulatory gaps in Georgia’s fast-growing fertility services. Agri-Food & Jobs: Environment and Agriculture Minister David Songulashvili visited Nutrimaxi’s compound animal feed plant in Kvemo Kartli, a 80,000-ton capacity facility employing 200 people and exporting across the region, supported by Rural Development Agency and agrocredit programs. Regional Trade & Transit: Kazakhstan and Georgia moved to deepen a strategic partnership in Astana, focusing on trade, energy, logistics and digitalization, with plans to expand oil shipments via Baku–Tbilisi–Ceyhan and boost Middle Corridor container flows. Ports & Connectivity: Kazakhstan signaled interest in increasing its footprint at Georgian ports beyond Batumi, including Poti and Anaklia, as both sides push Trans-Caspian transport upgrades and digital government cooperation. Black Sea Business Climate: Georgia Parliament Speaker Shalva Papuashvili told PABSEC that the Azerbaijan–Armenia peace process and Baku–Tbilisi–Kars rail commissioning create new opportunities for trade, transport, energy and digital connectivity. Agricultural Exports Watch: Azerbaijan reported a 38% jump in pear exports in early 2026, with Russia still the top buyer, while shipments resumed to Turkmenistan after a 16-year gap. Industry Risk & Fraud Tech: An AP/Frontline investigation says scammers are using AI software from American tech firms to scale online fraud, with victims including people in Georgia—raising pressure for stronger safeguards.

Kazakhstan–Georgia Strategic Push: In Astana, Prime Minister Irakli Kobakhidze met Kazakh PM Olzhas Bektenov and President Kassym-Jomart Tokayev to formalize a strategic partnership covering trade, investment, energy, transport and digitalization, with a clear focus on expanding Middle Corridor transit and boosting AI cooperation. Oil & Transit Logistics: Kazakhstan said it plans to raise oil shipments via the Baku–Tbilisi–Ceyhan pipeline, while both sides also discussed growing container traffic and port cooperation beyond Batumi, including Poti and Anaklia. Agri-Food Trade: Kazakhstan–Georgia agricultural turnover topped $116m, up 77% last year, as talks targeted more grain, flour, vegetable oil, pasta, meat, dairy and chocolate exports. Regional Finance: The Eurasian Development Bank approved potential expansion with 11 new members, including Georgia, signaling wider regional development financing. Industry Exports: Georgia exported 9,000 tons of fruit and vegetable juices worth $14.2m in Jan–May 2026, with the US, Australia and Germany among top destinations.

Middle Corridor Push: Kazakhstan’s Tokayev and Georgia’s Kobakhidze backed a roadmap to deepen cooperation across energy, investment, transport, agriculture, digitalization and tourism, with TITR container volumes rising and targets for 3,000 container trains by 2029. Port Expansion: The U.S. DFC is funding a new berth at Poti’s New Sea Port with a $25m loan to Pace Group, aiming to lift bulk capacity by 1m tonnes and create 50 jobs—positioned as Middle Corridor support. Trade Numbers: Georgia’s fruit and vegetable juice exports climbed 22% to $14.2m in early 2026, shipping 9,000 tons to 42 countries, led by the U.S., Australia and Germany. Surveillance Concern: A report by Algorithm Watch alleges Georgian authorities use Russian facial recognition tech to identify anti-government protesters in Tbilisi. Water & Waste: A letter warns plastics persist for centuries and points to risks from recycling and industrial contamination, while separate local flood coverage focuses on debris sorting and disposal options.

Middle Corridor Logistics: Kazakhstan, Azerbaijan and Georgia are pushing a unified long-term tariff model for the Trans-Caspian International Transport Route, with plans to boost Caspian shipping capacity, dredge with Azerbaijan and upgrade Kuryk port—aimed at raising containerized cargo volumes. Poti Port Expansion: A new berth is being built at Poti’s New Sea Port, backed by a second US$25m DFC loan to PACE Group, to expand bulk cargo handling by another 1m tonnes. Maritime Skills & Industry: Batumi marked International Day of Sailors with awards at Batumi International Container Terminal, highlighting maritime education and the role of Georgian crews in transport. SME Export Push: EU and UNDP support helped 306 Georgian SMEs (73% women-led) improve export readiness, creating 960 jobs and getting 25 firms into EU markets for the first time. Energy & Trade Pressure: Russia extended its sulfur export ban to Dec 31, 2026, while allowing shipments to EAEU partners and Georgia’s breakaway regions—an issue for fertilizer supply chains. Local Business Spotlight: Vazisubani Estate in Kakheti is being promoted internationally as Georgia’s wine tourism and quality benchmark.

Middle Corridor Logistics: Kazakhstan, Azerbaijan and Georgia are working on a unified long-term tariff model for the Trans-Caspian International Transport Route, with plans to expand Caspian shipping capacity, dredge with Azerbaijan and upgrade Kuryk port—plus a push to grow containerized cargo volumes. Port Expansion in Georgia: A new berth is being built at Poti New Sea Port with a USD 25m U.S. DFC loan to PACE Group, aiming to boost bulk cargo handling capacity by another 1 million tonnes. SME Exports: EU and UNDP support is helping Georgian SMEs break into EU markets: 306 firms trained since 2023, 25 entering EU markets for the first time, and reported export revenue growth. Maritime Skills & Industry: Batumi marked International Day of Sailors with awards at the Batumi International Container Terminal, highlighting maritime education and Georgian crew professionalism. Energy & Compliance Watch: Russia extended its sulfur export ban to support fertilizer supply, while separate reports flag illegal crypto mining tied to power-grid load. Regional Security Drills: “Caucasus Eagle 2026” special forces exercise concluded near Tbilisi with Azerbaijan, Georgia and Türkiye.

Port Expansion: The U.S. DFC-backed second berth project at Poti’s “New Sea Port” is moving ahead, with a USD 25m loan to PACE Group and a planned jump in bulk cargo capacity—another push for Georgia’s Middle Corridor role. Maritime Recognition: Batumi marked International Day of Sailors with awards for Georgian seafarers and students from the Batumi State Maritime Academy, underlining the skills pipeline behind shipping and port operations. SME Exports: EU-UNDP support helped Georgian SMEs expand: 306 firms trained since 2023, 960 new jobs created, and 25 first-time entries into EU markets. Finance & Digital Assets: Georgia’s National Bank says its stablecoin regulation model is region-first, while the IMF reports FX reserves above $7bn are strengthening stability and lowering sovereign risk. Energy & Industry Tech: Russia extended its sulfur export ban to protect fertilizer supply, while separate reporting highlights how illegal crypto mining strains power grids and how OCR errors can cascade in AI document processing. Security Drills: “Caucasus Eagle 2026” special forces exercises concluded near Tbilisi, signaling continued regional defense cooperation among Azerbaijan, Georgia, and Turkey.

Port Expansion: Georgia’s New Sea Port of Poti is moving ahead with a second berth, backed by a fresh USD 25m U.S. DFC loan to PACE Group, aiming to boost bulk cargo capacity by another million tonnes and strengthen Middle Corridor trade. Maritime Skills: Batumi marked International Day of Sailors with awards for Georgian seafarers and a ceremony at the Batumi State Maritime Academy, underlining the role of maritime education for industry growth. SME Exports: EU and UNDP support is helping Georgian SMEs break into EU markets: since 2023, 306 firms (73% women-led) have gained export readiness, creating 960 jobs and landing 25 first-time EU market entries. Energy Security: Prime Minister Irakli Kobakhidze says Georgia secured Azerbaijan gas guarantees for over 2 billion cubic meters at favorable prices, alongside gasification progress for 10,000 more households. Regional Logistics: Kazakhstan, Azerbaijan and Georgia are working on a unified long-term tariff model for the Middle Corridor to improve transport predictability and containerized cargo flows. Fuel Crunch Abroad: North Ossetia reports over 20% of petrol stations out of fuel, with an online availability board tracking shortages. Textiles Trade: ITM 2026 in Istanbul drew 48,257 professional visitors from 105 countries, signaling continued demand for textile machinery and investment links.

Textiles & Trade: ITM 2026 wrapped up in Istanbul with 1,000+ exhibitors from 59 countries and 48,257 professional visitors, underscoring how textile machinery and technical textiles are pulling international investment despite visa friction. SME Exports: EU and UNDP support helped 306 Georgian SMEs boost export readiness, creating 960 jobs and getting 25 firms into EU markets for the first time ahead of Micro-, Small and Medium-sized Enterprises Day (27 June). Energy Security: Georgia says it secured Azerbaijan gas guarantees for over 2 bcm at favorable prices, while PM Kobakhidze also highlighted “Enterprise Georgia” financing 1,279 entrepreneurs and progress on the Kutaisi Technology Hub. Finance & Digital Assets: The IMF reports Georgia’s FX reserves above $7bn are adequate for moderate stress, and the NBG showcased its stablecoin regulatory model as a regional first. Logistics Corridor: Kazakhstan, Azerbaijan and Georgia are working on a unified long-term tariff model for the Middle Corridor to improve containerized cargo flows. Industry Inputs: Russia extended its sulfur export ban to end-2026, with limited exceptions for EAEU partners and transit—an issue for fertilizer supply chains.

Middle Corridor Logistics: Kazakhstan, Azerbaijan and Georgia are working on a unified long-term tariff model for the Middle Corridor, alongside infrastructure moves like Caspian fleet expansion and port modernization. EU Diplomacy: EU Special Representative Magdalena Grono says the EU will keep supporting the Azerbaijan–Armenia peace process, with Baku talks also covering transport and logistics opportunities. Georgia Energy Security: Prime Minister Irakli Kobakhidze says Georgia secured guarantees for over 2 billion cubic meters of Azerbaijani gas at favorable prices, while also expanding gasification to new settlements. Enterprise Georgia Jobs: Kobakhidze reports “Enterprise Georgia” financed 1,279 entrepreneurs, including 543 industrial projects worth GEL 824m, targeting thousands of jobs, plus progress on a Kutaisi Technology Hub. Rail Planning in Tbilisi: ADB launched a tender for a feasibility study on a regional rail system linking Tbilisi, Rustavi and Mtskheta, with possible upgrades using existing Georgian Railway infrastructure. Spatial Planning Reform: Parliament backed amendments to Georgia’s spatial planning and construction code, focusing on cultural heritage sites and protected zones in Tbilisi. Trade & Food Safety: Armenia and USDA representatives discussed export rules for agricultural products and flowers to the US, including phytosanitary certificates, traceability and lab capacity, aiming to boost shipments via Turkey transit. Fuel Flows: Azerbaijan sent another rail shipment of gasoline and diesel to Armenia via Georgia, adding to growing cross-border fuel and transit volumes. Local Business Legacy: Georgian entrepreneur Temur Ugulava, known for hospitality development, has died at 56.

Transport & Ports: The U.S. Development Finance Corporation (DFC) signed a second $25m loan with PACE Group to finish the second berth at Georgia’s new Poti Seaport, adding 1m tons/year capacity and boosting Trans-Caspian Corridor trade. Rail & Urban Mobility: The Asian Development Bank (ADB) launched a tender to pick a consultant for a feasibility study on a regional rail system linking Tbilisi, Rustavi, Mtskheta and the future Airport City, including demand forecasts and environmental and social assessments. Construction & Heritage Rules: Parliament backed amendments to the Spatial Planning Code that tighten how construction permits and public supervision work around cultural heritage objects and protected zones in Tbilisi. EU–Georgia Visa Debate: Georgia’s speaker accused the EU of “fascism” after an initiative to keep visa-free entry only for select groups like students and journalists. Middle Corridor Momentum: Georgia’s PM highlighted port modernization and rising cargo turnover as construction starts on a new Poti berth, while regional coverage points to Kazakhstan’s pivot toward China and Baku’s push for connectivity. Food & Trade Compliance: Armenia’s food-safety regulator met USDA officials to discuss agricultural and flower exports to the US, phytosanitary certificates, traceability and lab capacity. Audit & Governance: Georgia’s State Audit Service reported 36.5m GEL in violations found in 2025 audits, with procurement and budget resource management among the main problem areas.

Poti Port Expansion: The U.S. Development Finance Corporation (DFC) signed a second $25 million loan with PACE Group to finish the second berth at the new Poti Seaport, adding about 1 million tons of annual bulk-cargo capacity and boosting Middle Corridor trade efficiency. Transport & Trade: Georgian PM Irakli Kobakhidze said port and corridor upgrades are accelerating as cargo turnover in Georgian ports rose 21% in the first five months and Poti’s new project grew 78% over three years. Business Diplomacy: Tbilisi will host a Uzbekistan–Georgia business forum on July 1, with focus on agriculture, electrical industry, and modern building materials plus B2B talks on joint investment projects. Public Finance Oversight: Georgia’s State Audit Service reported 36.5 million GEL in 2025 violations across 44 audits, with procurement and budget resource management among the biggest problem areas. Regional Logistics Signals: Freight tonnage slowed in May, but tighter capacity helped lift the market; shipment indicators showed mixed improvement after a softer stretch. EU Visa Row: Georgian Parliament Speaker Shalva Papuashvili criticized an EU proposal to suspend visa-free access for most Georgians while keeping it for select groups, calling it “fascism.” Food & Exports Pressure: Armenian flower growers dispute optimistic export forecasts as Russia’s restrictions tighten, with Georgia still a major buyer of Armenian flowers.

Fuel Security & Regional Trade: Russia is reportedly in talks with Kazakhstan to import about 50,000 tonnes of AI-92 gasoline after Ukrainian drone attacks hit central Russian refineries, cutting output by roughly 25% year-on-year; Moscow is also weighing export curbs, higher subsidies for refiners, and imports, while Kazakhstan says it hasn’t received an official request and notes Atyrau refinery maintenance from June 26–July 20 could tighten supplies. EU-Georgia Diplomacy & Transport: Italy’s deputy foreign minister visited Tbilisi, meeting Georgian Dream and opposition figures, with talks covering trade, energy, tourism and defense, and renewed focus on Georgia’s Middle Corridor role. Middle Corridor Tariffs: Kazakhstan says it’s working with Georgia and Azerbaijan on a unified long-term tariff model for the Middle Corridor, alongside port and fleet upgrades including Kuryk port modernization and Caspian dredging. Industrial Policy (Armenia): Armenia plans to shift toward a high-value-added economy and create five industrial zones, pairing the move with logistics and transport infrastructure. Construction in Batumi: Ambassadori Island’s first tower in Batumi has entered a new construction phase, with deep 65-meter foundation piles and work progressing ahead of schedule. Labor & Oversight (Georgia): A study says women from Central Asia are being recruited into Georgia’s surrogacy market via social media, raising concerns about opaque recruitment and supervision.

Middle Corridor Logistics: Kazakhstan, Georgia and Azerbaijan are pushing a unified long-term tariff model for the Trans-Caspian “Middle Corridor,” alongside port and fleet upgrades like Kuryk port modernization and joint dredging—aimed at boosting Asia-Europe freight competitiveness. EU Connectivity & Aviation: During a Brussels visit, Kazakhstan secured an aviation agreement with the EU, advanced short-stay visa facilitation talks, and signed business packages worth $12bn+—with connectivity, energy security and supply-chain resilience in focus. Georgia Surrogacy Scrutiny: An Oxford study says Central Asian women are being recruited into Georgia’s surrogacy market via social media, raising concerns about opaque recruitment, accommodation pressure and payment disputes. Energy Infrastructure Watch: Battery energy storage is accelerating in the US, with Georgia flagged as gaining traction through utility procurement—an indicator for regional grid modernization pressures. Construction in Batumi: Ambassadori Island’s first tower in Batumi has entered a new construction phase, with deep 65m foundation piles and active works ahead of schedule. Local Industry Deal: Mexaniki Temir Zavodu in Azerbaijan was appointed as CERATIZIT’s authorized distributor across the Caucasus, targeting faster tooling access for metalworking, automotive and energy sectors. Transport Disruption (Georgia-related coverage): A GDOT lane-closure plan near Valdosta Mall was postponed to after the July 4 holiday, with power-pole relocation cited as the reason.