AGP Executive Report

Middle Corridor Momentum: Georgia’s ports and rail keep climbing as the Georgian International Maritime Forum in Batumi (“Where Seas Meet Corridors”) highlighted rising demand, faster transit, and plans to mobilize about $7bn by 2032 to modernize transit infrastructure. Black Sea Power Link: A UN official in Azerbaijan pointed to practical regional energy cooperation, including an undersea electricity cable plan connecting Azerbaijan and Georgia to European markets via Romania. Azerbaijan Manufacturing Push: Ilham Aliyev opened a new paper and hygiene products plant in Garadagh, targeting domestic demand and exports (including to Georgia) and creating about 240 jobs. Tech & Quality in Georgia: Tester’s Day 2026 at Pullman Tbilisi showcased software testing and quality engineering, with TBC Tech speakers focusing on AI-enabled quality and next-gen test automation. Governance & Housing Reality Check: A construction-focused report says Tbilisi’s dilapidated-building replacement program is too small because most residential stock is already amortized. Media Under Pressure: A journalism piece describes how independent outlets in Georgia are fighting to stay alive after funding clampdowns. Aviation Safety (Black Sea): A Belgian-Luxembourgish light aircraft ditched after engine failure near Turkey after departing Batumi; both aboard were recovered unharmed.

Road & Infrastructure: Georgia signed the Batumi–Sarpi new road deal with China Railway Tunnel Group, a direct boost for Black Sea connectivity and regional freight. Aviation & Services: The $15m Ambassadori Aviation Village opened in Kachreti, adding an airfield, aviation school, and service hub, with plans for a private air-transport network. Industrial Manufacturing: Azerbaijan’s Fabriora Group opened a paper and hygiene products plant in Garadagh, using automated tech from Germany/Italy/Türkiye, targeting exports to Georgia and creating 240 jobs. Regional Logistics: The V International Black Sea–Caspian Transport Forum in Baku highlighted Azerbaijan’s role in corridors and freight flows, with panels on ports, terminals, and multimodal connectivity. Energy & Trade Links: Kazakhstan reported higher oil pipeline throughput and rising CPC volumes, underscoring how export routes keep shaping regional industry. EU Policy Pressure: US and Canadian forestry groups lobbied to weaken the EU’s anti-deforestation rules affecting timber and paper goods. Business Environment: Georgia’s Kulevi refinery halted Russian crude processing amid EU sanctions pressure, signaling ongoing supply-chain shifts.

Aviation & Tourism: Georgia opened a $15m “Ambassadori Aviation Village” in Kachreti, adding an airfield, aviation school, service hub and pilot residences, with plans for a private air-transport network. Urban Infrastructure: The Municipal Development Fund announced a third attempt to design the rehabilitation of the Tbilisi Philharmonic, with a 6.5m GEL procurement and work aimed at modern stage systems, utilities, accessibility and full building upgrades. Rail & Logistics: At the Georgian International Maritime Forum in Batumi, Kazakhstan’s transport vice minister highlighted Middle Corridor digitalization, including a proposed digital map of routes and a single-window approach for maritime services. Regional Connectivity: A Middle Corridor conference in Baku stressed fixing rail, container supply and coordination bottlenecks, arguing for a single transit operator and shared IT platform across customs in Kazakhstan, Azerbaijan and Georgia. Mining & Labor: Georgia’s appeals court upheld long prison sentences for four Chiatura mine protest leaders, tied to violence charges from April 2025. Governance & Policy: Armenia’s former Security Council secretary Armen Grigoryan joined PMCG as a senior advisor and is already working on TRIPP feasibility, a US-backed connectivity plan linking Azerbaijan’s Nakhichevan via Armenia’s Syunik. Hospitality Investment: Accor signed a franchise deal to bring Swissôtel to Batumi, targeting an early-2027 opening.

Tbilisi Infrastructure: The Municipal Development Fund has announced a third tender for the rehabilitation of the Tbilisi Philharmonic (Concert Hall), with bids due Nov. 9 and an estimated cost of 6.5 million GEL, aiming to modernize stage systems, acoustics, elevators, utilities, and safety while making the venue fully accessible. Middle Corridor Logistics: At the Georgian International Maritime Forum in Batumi, Azerbaijan’s port advisor urged fixes to capacity and coordination on the Trans-Caspian “Middle Corridor,” including a single transit operator and a joint IT platform among customs bodies in Kazakhstan, Azerbaijan, and Georgia to speed freight. Energy & Industry Finance: Suniva completed an $835 million capital raise to build a second U.S. solar cell plant and expand capacity to 5.5 GW, signaling continued investment momentum in solar manufacturing. Legal & Business Risk: Georgia-based legal disputes surfaced in the U.S. around workplace and healthcare claims, including a CBRE employee alleging retaliation after raising fraud concerns and a PruittHealth case tied to a large negligence verdict.

Tbilisi Dry Port & Tram Push: Georgia’s economy minister met “Abu Dhabi Ports Group” on the Tbilisi Dry Port project, while Tbilisi City Hall signed a GEL 287.6M contract for the Didi Dighomi–Didube tram line and also signed design/construction for the tram line—more transport infrastructure momentum for the Middle Corridor. Batumi Education Upgrade: Ajara officials toured Batumi school and kindergarten projects, including rehabilitations at Public Schools No. 4 and 5 and Kindergartens No. 3, 12 and 18, expanding capacity and modernizing facilities. Maritime & Logistics Focus: IMSO’s DG joined the Georgia International Maritime Forum in Batumi, and Azerbaijan Railways advisers stressed backhaul freight to boost Middle Corridor volumes—key for regional shipping and container flows. Energy/Trade Links: Georgia’s Kulevi refinery halted Russian crude processing amid EU sanctions pressure, while Georgia is also looking at major port investment (Anaklia Deep Sea Port) as regional connectivity grows. Agriculture Outlook: Georgia expects a higher 2026 almond harvest (~4,500 tonnes), though exports of blanched almonds fell earlier this year. Industry/Business: Azerbaijan textile output is reaching Georgian and Moldovan markets, signaling continued regional manufacturing spillover.

Education & Infrastructure in Batumi: Ajara’s government and Georgia’s Infrastructure and Education ministries toured Municipal Development Fund projects, including completed upgrades to Batumi Public Schools No. 4 and 5 (2,400 total students), full rehabilitation of Kindergartens No. 3 and 12, and ongoing works at Kindergarten No. 18, with modern teaching spaces, updated engineering systems, and accessibility improvements. Energy & Renewables: Georgia marked the start of construction of the Imereti wind power plant, Georgia’s first Chinese-invested new energy project, aimed at boosting green electricity and energy independence. Transport & Logistics (Middle Corridor): Azerbaijan Railways is pushing backhaul freight to grow and stabilize cargo volumes along the Middle Corridor, citing infrastructure upgrades across Kazakhstan, Azerbaijan, and Georgia. Ports & Urban Mobility (Tbilisi): Georgia’s Economy Minister met Abu Dhabi Ports Group on investment progress tied to the Tbilisi dry port, while Tbilisi City Hall signed an agreement for tram line design and construction with a joint venture involving Turkish firms. Aviation & Tourism: Georgia opened a $15m aviation complex in Kakheti (Ambassadori Aviation Village) with an airfield, flight school, hangar capacity, and pilot training plans. Industry & Mining (Georgia): Krakatoa Resources reported first 2026 drilling results from its Zopkhito gold-antimony project in Georgia, confirming high-grade gold and antimony mineralisation continuity.

Transport & Aviation: Armenia and Georgia are pushing closer ties after talks in Batumi, with ministers highlighting new direct air routes and more flights, alongside freight logistics and energy cooperation. Maritime & Connectivity: Georgia used the Georgian International Maritime Forum (GIMF 2026) to underline Middle Corridor ambitions, saying cargo flows could triple by 2030 and travel times could be cut with the right investments. Ports & Rail Investment: Georgia’s government reiterated a long-term plan to expand rail capacity, speed up cargo transit, and scale port and airport throughput—aimed at boosting regional trade. Energy & Green Corridors: Azerbaijan reiterated plans for green energy corridors linking renewable resources to markets, including the Caspian–Black Sea–Europe Green Energy Corridor involving Georgia. Agriculture Exports: Georgia’s blueberry exports remain heavily concentrated: over 90% of shipments went to Russia in the May 1–Sept 1 period, with export value up year-on-year. Aviation Training: Georgia inaugurated the Ambassadori Aviation Village in Kakheti, pitching it as a USD 15m boost for tourism and pilot training with internationally recognized licenses.

Transport & Logistics Push: Georgia is pitching a major scale-up of the Middle Corridor, with plans to double railway capacity, cut cargo transit times by half, double port capacity and triple airport capacity, alongside over 1 billion lari in railway modernization this year and a target to attract about $7bn by 2032. Anaklia Deep Sea Port: The government says it will invest $700m in the Anaklia Deep Sea Port under a state “landlord” model, aiming for operations in 2029 with initial capacity of at least 600,000 TEU and about 10m tons of dry cargo. Business Links: An International Business Council (MDS) delegation met Georgian business bodies (GEDC, GCCI, EBA, EU-Georgia Business Council, AmCham) to discuss trade, investment, B2B missions and support for market entry. Energy Trade Watch: Azerbaijan’s SOCAR is expanding cooperation with China National Petroleum Corporation, signaling a shift from raw exports toward processing and higher-value downstream production. Culture & Industry Soft Power: Batumi’s International Maritime Forum and Georgia’s broader connectivity push are framed as route diversification and supply-chain reliability priorities.

Energy & Fuel Prices: GasBuddy-reported retail fuel snapshots show Georgia drivers paying volatile prices, with the lowest diesel deals spotted in places like Clayton County ($4.89/gal) and Fulton County ($4.92/gal), while premium and midgrade prices also varied by county (e.g., Glynn premium at $4.16/gal; Cobb midgrade at $3.75/gal). Regional Energy Trade: Azerbaijan’s SOCAR is pushing deeper industrial energy cooperation, including a meeting in Baku with China National Petroleum Corporation that signals a shift toward downstream processing and higher-value production. Armenia Fuel Supply Debate: Social media and analysts are reacting to reports of Azerbaijani diesel and gasoline shipments to Armenia, with commenters linking lower prices to transport-cost advantages and possible political signaling. Business Cooperation: The International Business Council (MDS) visited Georgia to discuss trade, investment, and B2B cooperation with local business bodies, including support mechanisms for market entry. Environment & Transport Compliance: Georgia’s Environmental Supervision Department recorded 20,727 vehicle emissions norm violations across Tbilisi, Rustavi, Kutaisi, and Batumi since monitoring began in 2023. Local Economy & Partnerships (Batumi): Batumi’s mayor met energy-club representatives to discuss infrastructure, urban mobility, and diversifying trade and business opportunities. Peace Process Watch (Georgia-Abkhaz): A Tbilisi opinion argues Georgian-Abkhaz dialogue is stuck in “inaction” and a “paradigm-less peace,” citing mistrust and drift in current policy.

Energy & Fuel Costs: Georgia’s fuel debate is heating up as politicians and analysts trade blame over rising gasoline and diesel prices, with claims that retail chains and SOCAR-linked supply shifts are driving costs. Trade & Business Links: A Kyrgyzstan–Georgia business delegation (MDS) met Georgian institutions to push B2B deals, investment attraction, and market entry support. Industry & Infrastructure: Batumi is actively seeking new business partnerships, with the city highlighting infrastructure, mobility, and new trade spaces. Environment & Transport Compliance: Georgia’s Environmental Supervision Department reported 20,727 vehicle emissions violations across Tbilisi, Rustavi, Kutaisi, and Batumi since monitoring began in 2023. Regional Energy Cooperation: North Macedonia and Serbia joined the Vertical Gas Corridor, expanding access to southern supply routes via Greece. Geopolitics & Pressure: Tbilisi accused Turkey of interfering in internal affairs, focusing on Adjara and alleged attempts to expand Turkish influence.

Fuel Prices in the US (Georgia angle): GasBuddy data shows midgrade and diesel price dips in several Georgia counties in the week ending Aug. 29, with Hart County regular at $3.59 and Fulton County diesel at $4.92—another reminder of how quickly global oil and regional supply shifts hit the pump. Nuclear Power Momentum: A US push for advanced reactors is gaining traction, with multiple privately developed test reactors reaching criticality this summer, while data centers keep driving demand for new power sources. Georgia Fuel Tax Pushback: Tazo Datunashvili (Lelo) again called for scrapping the fuel excise tax, blaming fuel price spikes on the Georgian Dream government. Batumi Business & Infrastructure: Batumi’s mayor met the Caspian Energy Club to discuss new partnerships, with a focus on infrastructure, urban mobility, and expanding trade and business spaces. Environment Monitoring: Georgia’s vehicle emissions watchdog logged 20,727 non-compliance cases across Tbilisi, Rustavi, Kutaisi, and Batumi since Sept. 4, 2023. Health Supply: Georgia’s Health Minister says givinostat for Duchenne muscular dystrophy will arrive in Tbilisi early next week. Regional Energy Cooperation: North Macedonia and Serbia joined the Vertical Gas Corridor, aiming to tap supply routes via Greece and LNG terminals. Trade/Industry in the region: Armenia EXPO 2026 opened in Yerevan, with Georgia among participating markets and a clear push for productivity, investment, and export-oriented industry.

Fuel Supply & Refining: SOCAR Georgia Petroleum imported its first 5,000-tonne EN 228 petrol shipment from Italiana Petroli (SOCAR Group), a move meant to diversify Georgia’s fuel sources and keep supplies aligned with European standards. Port & Maritime Works: Anaklia deep-sea port construction is accelerating, with marine dredging activity reported as progressing alongside broader port development. Energy Partnerships: Batumi is actively seeking new business partnerships after a city hall meeting with the Caspian Energy Club, with an emphasis on infrastructure and expanding trade and business spaces. Air & Trade Infrastructure: North Macedonia and Serbia joined the Vertical Gas Corridor, widening access to southern gas routes via Greece and LNG supply options—an energy connectivity signal for the wider region. Environment & Transport Compliance: Georgia recorded 20,727 vehicle emission violations across Tbilisi, Batumi, Kutaisi and Rustavi since monitoring began in 2023, with passenger cars and minibuses driving most breaches. Health & Pharma Access: Georgia’s Health Minister says givinostat for Duchenne muscular dystrophy is set to arrive in Tbilisi early next week, alongside progress toward a second treatment option. Local Industry & Services: Batumi’s municipality says a 6 million lari tender was announced for a new Coast Guard office in the city, pointing to continued public infrastructure spending. Cross-border Tensions: Georgia accused Turkey of pressuring Adjara and interfering in internal affairs, with the dispute tied to claims over the region’s status and growing Turkish business influence.

Fuel Supply & Refining: SOCAR Georgia Petroleum imported its first 5,000-tonne EN 228 petrol shipment from Italiana Petroli (SOCAR Group), a direct commercial deal meant to diversify Georgia’s fuel sources and keep supplies aligned with European standards. Sanctions & Energy Security: Black Sea Petroleum says Kulevi refinery has fully stopped processing Russian crude, switching to non-Russian feedstock after EU sanctions pressure, with Libyan crude arriving as part of the transition. Health & Pharma: Georgia’s Health Minister says Duchenne muscular dystrophy drug Givinostat has been shipped to Tbilisi and should arrive early next week, after preparations including a registry and doctor training with Italfarmaco. Urban Development: Tbilisi City Hall approved removing recreational-zone status for a riverbank plot near Dry Bridge to allow a family-linked project to build a café/restaurant complex. Hospitality & Real Estate: Marriott and PASHA Real Estate Group signed plans for three new hotel/residential projects across Azerbaijan and Georgia, including a Le Méridien hotel in Tbilisi. Environment & Transport: Georgia’s emissions monitoring since Sept 2023 found 20,727 vehicle violations across Tbilisi, Batumi, Kutaisi and Rustavi.

Rare Disease Care: Georgia says Duchenne muscular dystrophy drug Givinostat will arrive in Tbilisi at the start of next week, with patient registry, doctor training, and a state-funded programme ready after an agreement signed July 31. Energy & Sanctions: Georgia’s Kulevi refinery has stopped processing Russian-origin crude, fully switching to non-Russian feedstock after EU sanctions pressure, and it also received its first Libyan crude shipment. Fuel Supply & Downstream: SOCAR Georgia Petroleum imported its first EN 228 petrol batch from Italiana Petroli (SOCAR Group), aiming to diversify supply and keep European-standard fuel flowing. Air Quality Enforcement: Georgia recorded 20,727 vehicle emission violations across Tbilisi, Batumi, Kutaisi and Rustavi since roadside checks began in 2023, with passenger cars and minibuses leading the breaches. Hospitality & Real Estate: PASHA Real Estate and Marriott signed plans for three new hotel/residential projects, including a Le Méridien in Tbilisi and Ritz-Carlton developments in Azerbaijan. Logistics & Trade Routes: Discussion around the Middle Corridor and Trans-Caspian connectivity focused on cutting transit delays and making projects investable for companies.

Georgia Investment Pulse: Georgia logged a second straight record year for business expansions and job growth, with $35.2B in project investments for the fiscal year ending June 30 and expansions driving most new jobs. Black Sea Energy Watch: Black Sea Petroleum says Georgia’s Kulevi refinery has fully shifted off Russian crude, pointing to a new Libyan shipment as EU sanctions deadlines loom. Middle Corridor Logistics: Austria and Kazakhstan are pushing the “Middle Corridor” agenda, focusing on cutting transit times and making cross-border logistics networks investable. Batumi Aviation Development: Ambassadori Island Batumi hosted international private aviation pilots, highlighting plans to strengthen air connectivity and future runway use. Georgian Legal/Business Climate (US-linked): Georgia court activity included major class-action and labor-related developments (Waffle House tobacco fee challenge; Topgolf server wage settlement), underscoring how Georgia remains a key venue for industry disputes. Regional Security Signals: Russia’s security council deputy said Moscow sees potential for interregional economic cooperation with countries including Georgia, framing it as moving beyond trade into joint production chains.

Port & Logistics: Georgia’s Anaklia deep-sea port push is accelerating, with a shift to a multi-investor model that keeps China in the mix but reduces single-country dependence—an approach that could reshape the Middle Corridor’s competitiveness. Agriculture & Skills: Environment and Agriculture Minister Davit Songulashvili toured regional farms and processing sites, highlighting poultry, greenhouse crops, organic strawberry and dairy operations, plus the Swiss Agricultural School Caucasus—aimed at strengthening the agricultural value chain and vocational training. Regional Trade & Industry: Armenia’s industrialists say the Armenian-Turkish border opening could boost trade, investment, construction and jobs, while arguing local firms are ready to compete with Turkish businesses. Food & Grain Supply: Armenia’s 2025 wheat, corn and flour imports remained overwhelmingly sourced from Russia, underscoring ongoing supply concentration even as trade volumes shift. Business & Finance: Georgian bitcoin financier Giorgi “George” Bachiashvili reportedly sold a Miami mansion for $51.5M, adding another twist to his high-profile legal and business saga.