AGP Executive Report

Construction & Permits: Georgia’s parliament adopted in third reading amendments to the “On Special Protection of Green Plants” law for Tbilisi, tightening conditions for cutting woody plants when a construction permit exists. Wine & Agribusiness: The parliament also approved changes to the “On Vine and Wine” law: the “small wine cellar” output cap drops from 40,000 to 25,000 liters, “home wine” is replaced with “natural wine,” and certified alcohol labeling plus organoleptic testing rules are expanded. Digital Economy & Retail Tech: Georgian startup Kovzy says it cut the cost and complexity of restaurant e-commerce by bundling POS, QR menus, online ordering, loyalty, and delivery into one SaaS platform. Regional Connectivity: Azerbaijan, Georgia and Türkiye reaffirmed energy and transport cooperation in Istanbul, highlighting the Middle Corridor and Baku–Tbilisi–Kars railway. Business Events: Tbilisi Coffee Festival returns Sept 26–27 at Expo Georgia, with competitions, workshops, and business meetings. Finance/Infrastructure: Georgia and the World Bank signed a $372m loan for railway and road projects.

Wine Sector Reform: Georgia’s parliament approved amendments to the “Law on Vine and Wine,” cutting the annual production limit for “small wine cellars” from 40,000 to 25,000 liters and shifting “home wine” to “natural wine,” with stricter rules on synthetic pesticides and mandatory labeling and organoleptic testing for export and local sales categories. Hospitality & Real Estate Investment: Archi and NEXT announced a USD 300 million Swissôtel Kobuleti Beach Resort on Georgia’s Black Sea coast, with pre-sales opening and construction set to boost the tourism and development pipeline. Tech for SMEs: Kovzy, a Georgian SaaS platform for restaurants, says it can launch a functional online ordering and payments setup in days, aiming to reduce the cost and complexity of e-commerce for small hospitality businesses. Regional Connectivity: Azerbaijan Railways will add extra carriages to the Baku–Tbilisi–Baku service from mid-June to handle summer demand, supporting cross-border passenger mobility. China Partnership Upgrade: Georgia and China formally elevated ties to a comprehensive strategic partnership, with leaders citing growing trade and “tangible benefits” from the relationship.

Energy Diplomacy: Georgia will receive 500 million m³ of Azerbaijani gas annually under a renewed 20-year deal, with “social” pricing unchanged—another step in keeping the South Caucasus energy pipeline stable. Regional Power: Russia’s Inter RAO says electricity exports/imports to Turkey and Georgia may resume only from September, linking volumes to prices and grid balance in southern Russia and Georgia. Oil & Infrastructure: BP says it will transfer operations of the Baku–Supsa pipeline to Azerbaijan and Georgia while staying involved under contractual obligations, with the handover process expected to finish in June. Tech & Business: TBC Bank Group’s Tapuz Limited has won Uzbekistan’s competition approval to acquire OLX, with conditions to prevent misuse of group influence and payment lock-in. Industry Finance: EBRD extended a €10m loan to Aversi Pharma to renovate and automate a Tbilisi central warehouse, aiming to cut energy use up to 40% and strengthen pharma logistics. Tech Ecosystem: Studio Liberty is the main partner of Global Tech Weekend Tbilisi 2026 (June 19–21), positioning Tbilisi as a tech hub for the Caucasus and Central Asia. Foreign Policy: Georgia, Turkey, and Azerbaijan signed an Istanbul joint declaration after their 10th trilateral meeting, with the next meeting planned in Georgia.

Energy Deal: Georgia extended its 20-year gas supply agreement with Azerbaijan for another two decades, keeping deliveries at 500 million m³ annually under “social” pricing, with the PM saying guaranteed volumes and terms have improved. Pipeline Operations: BP says it will transfer operations of the Baku–Supsa pipeline to Azerbaijan and Georgia while staying involved under contractual obligations, with the handover expected to finish in June. Regional Connectivity: Turkey, Azerbaijan and Georgia signed the Istanbul Declaration after their 10th trilateral foreign ministers’ meeting, pledging deeper cooperation on transport and energy links including the Baku–Tbilisi–Kars railway and Middle Corridor. Pharma Logistics Upgrade: EBRD extended a €10m loan to Aversi Pharma to renovate and automate a new Tbilisi central warehouse, targeting up to 40% energy savings and a more resilient supply chain. Consumer Protection: Georgia’s competition and consumer protection agency will take the presidency of ICPEN from July 1, with a September international conference planned in Tbilisi. Tourism & Real Estate: Archi and NEXT unveiled the $300m Swissôtel Kobuleti Beach Resort, with construction set to begin and pre-sales opened.

Trilateral Connectivity Push: Foreign ministers from Türkiye, Azerbaijan and Georgia met in Istanbul for the 10th round, pledging deeper cooperation on security, energy, trade and climate, with a clear focus on regional transport links like the Middle Corridor and the modernized Baku–Tbilisi–Kars railway. Consumer Protection & Digital Markets: Georgia’s Competition and Consumer Protection Agency (GCCA) says it will take the presidency of ICPEN from July 1, with a September conference in Tbilisi and priorities centered on building trust in the digital age, including AI-era consumer rights. Regional Business Watch: Georgia’s Batumi City Hall signed a contract for a new road segment near the Gonio bridge and the landfill area, pointing to ongoing local infrastructure delivery. Energy/Transit Context: Coverage also highlights how BTK modernization boosts Eurasian freight capacity and supports East–West rerouting amid supply-chain disruption risks.

South Caucasus Connectivity Push: Georgia, Türkiye and Azerbaijan wrapped their 10th trilateral foreign ministers’ meeting in Istanbul and signed the Istanbul Declaration, reaffirming cooperation on trade, investment, energy security, transport and the Middle Corridor as regional tensions and supply-chain disruptions grow. Batumi Road Works: Batumi City Hall is preparing a new road contract near the Batumi landfill, with a reported 5.35-million GEL deal for construction in the Gonio bridge–New Boulevard extension area. Energy Supply Angle: Azerbaijan’s role as an alternative supplier is getting attention as Iran–Israel tensions raise risks for global oil and gas routes, with Japan receiving an Azerbaijani crude cargo after the Hormuz-related disruption. EU Trade Logistics for Armenia via Georgia/Turkey: Armenia and the EU moved toward technical formalization of an agreement on goods exports, with delivery routes including air and transit through Georgia and Türkiye—important for regional freight flows. Tech & Business Calendar: Global Tech Weekend Tbilisi returns June 19–21, aiming to draw 20,000+ attendees and connect startups, investors and industry across Georgia. Labor Rules Watch: Hungary moved to end its guest-worker residence-permit system, tightening entry for workers from Georgia and Armenia under accelerated procedures.

Middle Corridor Momentum: A new analysis says China-Europe freight is shifting fast as the Northern Corridor faces sanctions costs, pushing more cargo through Kazakhstan–Caspian–Azerbaijan–Georgia–Türkiye routes, with Trans-Caspian volumes and container transit surging. Regional Diplomacy: Türkiye, Azerbaijan and Georgia will hold their 10th trilateral foreign ministers’ meeting in Istanbul, with transport connectivity, transit networks and energy security on the agenda. Energy Industry Watch: BP says Azerbaijan’s ACG offshore field has started first commercial nonassociated gas production, aiming to add a gas hub and boost supplies toward Europe. Georgia-US Law Enforcement: Georgia’s Interior Ministry, with FBI support, arrested an international fugitive at Tbilisi airport over alleged INTERPOL-listed sanctions violations. Labor Migration Policy: Hungary is tightening guest-worker rules by ending accelerated visas for workers from the Philippines, Georgia and Armenia, with officials citing wage and labor-market concerns. Food Supply Chain: WFP says fortified biscuits reached Afghanistan via a nine-country land route after border and Strait of Hormuz disruptions.

Regional Diplomacy: Türkiye, Azerbaijan and Georgia will hold their 10th trilateral foreign ministers’ meeting in Istanbul on June 8, with talks expected to focus on South Caucasus coordination, transport and transit links, and energy security. Armenia’s Election Watch: Armenian PM Nikol Pashinyan told reporters the vote should strengthen regional cooperation, citing peace with Azerbaijan and deeper ties with Georgia, while expressing optimism about reopening links with Türkiye under the “Crossroads of Peace” connectivity push. Energy & Industry: BP says Azerbaijan’s ACG offshore field has started first commercial nonassociated gas production, aiming to add a gas hub to keep the long-running oil asset productive and boost supplies toward Europe. Labor Migration Policy: Hungary has moved to stop issuing residence permits and work visas for guest workers from non-EU countries including Georgia, Armenia and the Philippines, with officials citing wage and labor-market pressure concerns. Food Supply Chain: WFP says fortified biscuits reached Afghanistan via a longer route through nine countries after border and Strait of Hormuz disruptions, including transit through Georgia and Azerbaijan. Local Agriculture & Nutrition: Georgia’s WIC program will expand access to fresh local produce via farmers markets, with events scheduled June 23-24 at the Bulloch County Health Department.

Middle Corridor & logistics: New reporting highlights how a “new Eurasian trade reality” is pushing expansion of the Middle Corridor, with BTK rail and broader land-transport links repeatedly framed as the backbone for moving goods between Asia and Europe. Energy security: As Iran threatens regional fuel shipping, Azerbaijan is positioned as a gas buffer, while SOCAR’s growing role across Israel’s energy supply chain underscores how quickly regional energy bets are shifting. Armenia vote & regional pressure: Armenia’s June 7 elections are being treated as a geopolitical referendum between Brussels/Washington and Moscow, with Russia’s economic pressure and trade restrictions (including bans on Armenian exports) adding heat to the campaign. EU digital identity & biometrics: Debate around EUDI Wallets intensifies as regulators and researchers clash over whether biometrics can be used as a sole verification method—an issue that could affect rollout timelines and trust. Labor mobility policy: Hungary will stop issuing worker visas to people from Georgia, Armenia and the Philippines, tightening guest-worker inflows and raising questions for regional employers reliant on migrant labor. Aid supply chain: WFP says fortified biscuits reached Afghanistan after a long detour through nine countries, showing how disruptions in key routes can reshape industrial-scale humanitarian logistics.

Fuel Costs Watch: GasBuddy price checks show Georgia premium averaging $4.75/gal (down week-on-week), with standout lows like $4.07 in Dade County and $4.39 in Fulton County; regular also eased to about $3.87 statewide, including $3.82 in Bleckley County. Black Sea Security: A sea drone self-destructed near Romania’s Constanta port after alleged Russian jamming, with Romania citing warnings that helped avoid casualties—another sign of widening spillover risk. Armenia–EU Trade Pressure: The EU pledged over €50m in emergency support for Armenia after Russia expanded agricultural import bans, including plans for flower shipments to Latvia. Regional Energy & Logistics: SOCAR completed its near-total acquisition of Italy’s Italiana Petroli, while Georgia reissued tenders for the Rustavi–Red Bridge and Algeti–Sadakhlo highway sections to strengthen East–West and North–South corridors. Work Visas: Hungary will suspend new work visas for Georgians, Armenians, and Filipinos, citing wage and job pressure.

Real Estate & Construction: Colliers Georgia says up to 150,000 sq m of new office space is under construction in Tbilisi, with most supply expected from Saburtalo and also activity in Didi Digomi, Samgori and Nadzaladevi. Energy & Industry: SOCAR says it has completed its 99.82% acquisition of Italy’s Italiana Petroli after approvals, expanding its integrated energy and logistics footprint in Europe. Transport Infrastructure: Georgia has reissued tenders for the Rustavi–Red Bridge and Algeti–Sadakhlo highway sections, a 61.2 km, four-lane concrete route with bridges and interchanges, backed by an EIB loan and the state budget. Business & Tourism: NEXT, Archi and Swissôtel officially launched the $300m Swissôtel Kobuleti Beach Resort project, signaling a push for premium Black Sea tourism. Sustainability: UNDP highlights circular-economy and greening efforts in Georgia, including solar and greenhouse upgrades in Khobi and Poti. Regional Context: Georgia’s PM used the Tbilisi Sustainable Development forum to link growth with peace, security and energy resilience. Legal/Policy: A Georgian appellate court upheld anti-SLAPP fee awards in an attorney defamation dispute.

Black Sea Tourism & Real Estate: NEXT and Archi, with Swissôtel, officially launched the three-tower Swissôtel Kobuleti Beach Resort in Kobuleti, with a high-profile site presentation and a symbolic capsule drop marking the start of a major premium tourism and property push. Construction Costs: Georgia’s Construction Cost Index rose 1.1% month-on-month in April 2026 and 3.8% year-on-year, driven mainly by higher transportation, fuel and electricity costs. Energy & Power Pricing: Georgia Power’s two major utility proceedings were settled, with near-term customer fuel charges expected to ease, though the filings highlight how climate-driven costs can still flow through the cost-recovery system. Regional Trade & Logistics: The Baku–Tbilisi–Kars railway entered full-scale operation on June 2, boosting freight along the Trans-Caspian route and strengthening Georgia’s role in Eurasian transit. Sustainability in Industry: UNDP, with EU and Denmark support, showcased circular-economy and green initiatives in Khobi and Poti, including solar installations and water-saving greenhouse irrigation. Agriculture & Geopolitics: Russian restrictions on Armenian agricultural imports are intensifying, with Moscow signaling it will shift contracts toward Azerbaijan—an indirect pressure point for the wider South Caucasus supply chain. Labor Mobility: Hungary will suspend work visas for citizens of Georgia, Armenia and the Philippines, tightening guest-worker recruitment rules that could affect regional staffing in services and manufacturing.

Energy Corridor Watch: Georgia is weighing a green hydrogen pipeline alongside a planned Black Sea electricity cable to strengthen the Black Sea green energy corridor and boost energy security through regional cooperation. Rail & Trade Logistics: The upgraded Baku–Tbilisi–Kars railway is now in full operation, with annual freight capacity rising to 5 million tons, and Georgia’s PM signaled possible future cooperation with Armenia on the BTK project. EU Integration & Regional Industry: The EU has agreed to formally open accession talks with Ukraine and Moldova on the first cluster of issues, a move that could reshape regional trade rules affecting Georgia’s neighbors. Business Climate: Geostat reports Georgia’s business sector turnover rose 11% in 1Q26 to 62 billion GEL, with production value up 12.4% and employment up 3.7%. Local Development: A $300 million Swissôtel Kobuleti Beach Resort project is moving forward, reflecting continued investor interest in Georgia’s tourism and construction pipeline.

Black Sea Energy Corridor: Georgia is weighing a green hydrogen pipeline running alongside a planned undersea electricity cable, aiming to export clean gas and boost regional energy security. Regional Logistics: The Baku–Tbilisi–Kars railway entered full-scale operation on June 2, with Georgia’s upgraded section lifting annual freight capacity to 5 million tons and strengthening the Middle Corridor. Tourism & Real Estate: Archi and NEXT unveiled the $300m Swissôtel Kobuleti Beach Resort in Kobuleti, signaling continued investor confidence in Georgia’s Black Sea hospitality push. Business Performance: Geostat reports Georgia’s business turnover rose in 1Q26 (up year-on-year), alongside higher production value and employment. Agriculture & Environment: Minister Davit Songulashvili highlighted the Ministry’s role in environmental protection and agricultural development during Independence Day events in Tbilisi. Energy Industry Context: BP says South Caucasus Pipeline gas transport increased in 1Q26, reflecting steady throughput from Shah Deniz to Azerbaijan, Georgia and Türkiye.

Middle Corridor Boost: The World Bank approved a $372m TC-GATE project to upgrade Georgia’s rail freight capacity, modernize key road segments, and reform transport institutions—aiming to cut logistics costs and support Georgia’s role as a Europe-Asia transit hub, with benefits for 900,000 people. Macroeconomy Watch: The EBRD lifted Georgia’s 2026 GDP growth forecast to 6% (from 5.5%), citing strong services and tourism, while warning Middle East conflict could hit tourism and raise imported energy costs. Inflation Update: Geostat data shows May annual inflation at 5.7% (down from April), with transport and food still driving price pressure. Real Estate Expansion: eVoost AI signed an exclusive commercialization deal with Mardi Holding to market Batumi projects Mardi Hills and Mardi Aquapark internationally, using AI for demand generation and lead qualification. Energy Tech Offshore: bp deployed multilateral well technology in Azerbaijan’s ACG field to unlock additional reserves and extend production life. Crypto Policy Signal: Tether plans to invest in Georgia and launch GEL₮, a lari-pegged token, raising questions about transparency and government involvement.

Middle Corridor Boost: The World Bank approved $372m for Georgia’s TC-GATE project to modernize rail and key roads, cut logistics bottlenecks, and strengthen the Trans-Caspian Transport Corridor; total cost tops $750m and includes new energy-efficient electric locomotives, with benefits for 900,000 people. Rail Freight Capacity Jump: The upgraded Baku–Tbilisi–Kars line is now in full operation after Georgia’s modernization, lifting annual freight capacity from 1m to 5m tons and reinforcing the Middle Corridor as a major Eurasian route. Energy & Grid Pressure: Georgia plans to install electricity meters across Mestia after officials blamed illegal crypto mining for pushing 2025 consumption to 133m kWh (about 13x normal), straining the grid and causing repeated outages. Crypto Policy Watch: Tether says it will invest in Georgia and launch a GEL₮ stablecoin pegged 1:1 to the lari, a move that signals growing crypto ambitions but raises transparency concerns. Real Estate Tech Push: eVoost AI and Mardi Holding signed an agreement to expand international sales and marketing for Mardi’s Batumi projects using AI lead qualification. Packaging Sustainability Win: PureCycle and StackTeck produced a living hinge cap using up to 100% PureFive recycled polypropylene, showing recycled resin can meet demanding packaging performance needs.