AGP Executive Report

Power & Grid Stability: Abkhazia suffered another blackout after a systemic failure at the Ingur HPP, the third major outage in two weeks, with officials saying the cause is tied to the emergency-control system rather than damaged units. Fuel Supply Pressure in Abkhazia: Despite a new batch of Russian gasoline arriving, drivers still face long queues and strict limits (20 liters per car), with authorities warning shipments can shift due to external factors. Trade & Border Friction: Azerbaijani truckers report weeks-long delays at Georgia’s Sarpi and Red Bridge checkpoints, saying documents are seized and no clear reasons are given, prompting an embassy request for clarification. Energy Corridor & Exports: KazMunaiGas plans to boost crude exports via the Baku–Tbilisi–Ceyhan pipeline by 31% in 2026 to about 1.7 million tonnes, supported by a new multi-year transit deal with SOCAR. Infrastructure Push: Georgia and the Asian Development Bank signed a $250m loan for the Tbilisi bypass road, aiming to speed up transport and reduce congestion. Logistics Disruption Risk: Black Sea security concerns are again highlighted as commercial shipping faces growing threats, adding pressure to regional commodity flows. Local Mobility: Georgia’s DOTD schedules road work across Southeast Georgia Aug 8–14, with overnight lane closures and traffic interruptions.

Energy Security in Occupied Abkhazia: A fuel shortage is hitting Sokhumi and other cities, with kilometer-long queues at Rosneft stations and a 20-liter per-car limit, while private stations reportedly charge far more—highlighting how Russia’s logistics strain is spilling into the occupied region. Customs & Sanctions Enforcement: Georgia’s Revenue Service says it stopped an attempt to move EU-sanctioned goods toward Russia via Sarpi, after a vehicle tried again with documents that didn’t match labels showing German and Croatian manufacture. Black Sea Shipping Risk: Black Sea freight is getting hit hard as war-risk surcharges and drone attacks push rates up to fourfold, with carriers citing disruptions tied to Russia’s Novorossiysk hub. Power Grid Pressure: Georgia faced a third major nationwide blackout in weeks; the grid operator linked it to testing at Enguri HPP during system failures, while opposition criticized the lack of warnings. Construction Costs: Geostat reports June 2026 construction costs rose 0.9% month-on-month, driven mainly by higher transport, fuel, and electricity costs. Tourism Demand: Georgia logged 145,513 visits from GCC countries in 2025, up 3.4%, as visa-free access and “value for money” keep the Gulf market growing. Regional Trade Links: Georgia and Turkmenistan advanced industrial cooperation and Middle Corridor plans via a business forum and a memorandum focused on construction-industry partnerships.

Power & Grid Watch: Georgia faced its third nationwide blackout in weeks after technical testing at Enguri HPP units, with metro and other services disrupted before restoration; Construction Costs: Geostat says June’s Construction Cost Index rose 0.9% month-on-month and 3.9% year-on-year, driven mainly by higher construction wages plus transportation, fuel and electricity; Black Sea Logistics: Shipping rates on Black Sea routes reportedly jumped up to fourfold as drone attacks and war-risk surcharges hit cargo flows, adding major pressure to regional grain and oil shipments; Energy Policy Risk: EU sanctions targeting Russian power firm Inter RAO could complicate electricity supply arrangements affecting Georgia; Regional Trade & Transport: Georgia–Turkmenistan ties deepen via a business forum and a memorandum aimed at industrial cooperation and boosting Middle Corridor cargo; Tourism Demand: GCC visits to Georgia reached 145,513 in 2025 (+3.4%), supported by short-haul access, visa ease and “value for money”; Digital Finance: hashbank, Georgia’s licensed digital bank, won “Best New Digital Bank Georgia 2026” in the UK Global Banking & Finance Review Awards.

Black Sea Trade Disruption: Shipowners are pulling back from CPC Black Sea exports again after attacks near the Novorossiysk terminal, leaving grain and oil flows jittery and raising costs for exporters. Power Reliability in Focus: Georgia’s electricity supply has been fully restored after the third large-scale blackout in two weeks, tied to Inguri HPP unit tests and planned isolated-mode operation; metro and rail had been hit, and some water disruptions followed. EU Sanctions Risk: EU moves to sanction Russia’s Inter RAO could complicate electricity delivery to Georgia via subsidiaries, with experts warning of longer-term instability. Regional Growth Watch: Georgia reported 8.6% economic growth in June and 7.9% for H1 2026, with manufacturing, transport, construction, IT, and finance driving gains. Infrastructure Push: Georgia and the Asian Development Bank signed a $250m loan for the Tbilisi bypass (Airport–Lochini and Lochini–Rustavi sections) to ease congestion and boost corridor capacity. Energy Diplomacy: Ukraine’s MFA says it has proposals to expand Azerbaijani business presence and diversify energy supplies, highlighting the Middle Corridor.

Transport & Infrastructure: Georgia and the Asian Development Bank signed a $250m loan for the Tbilisi bypass, covering the Tbilisi Airport–Lochini and Lochini–Rustavi sections, a four-lane route meant to cut congestion and boost corridor capacity. Energy & Industry: Black Sea Petroleum says Georgia’s Kulevi refinery is diversifying away from Russian crude ahead of EU sanctions—processing Kazakh oil and arranging Libyan-origin cargoes through 2027. Macroeconomy: PM Irakli Kobakhidze reported 8.6% year-on-year economic growth in June and 7.9% for H1 2026, with manufacturing, transport, construction, IT, and finance driving gains. Regional Energy Politics: Azerbaijan-US cooperation is entering a “new phase” after an Azerbaijani group moved from partner to operator by acquiring and operating Permian Basin assets in Texas. Black Sea Supply Shock: A surge in Black Sea attacks is disrupting grain and oil shipments, adding strain to global commodity flows. Energy Security at Home: Abkhazia residents say gasoline queues persist despite reported Russian fuel shipments and limits on purchases. Protests & Power Grid: Eurointegration supporters gathered again at Georgia’s Parliament despite blackouts, while officials dispute the causes behind recent nationwide power failures.

Tbilisi Bypass Funding: The Asian Development Bank has signed a loan agreement for $250 million to build the Tbilisi bypass, including two four-lane sections (about 18.9 km) to ease capital traffic and improve transit safety. Energy Supply Shift: Georgia’s only oil refinery, Kulevi, says it is phasing out Russian crude by switching to Kazakh and Libyan supplies ahead of EU sanctions deadlines. Consumer Watch: Georgia’s Competition and Consumer Agency reports 1,508 applications and a 106% jump in filings year-on-year in the first seven months, with 70% tied to online shopping and 93 traders fined for non-compliance. Regional Trade Corridors: Türkiye is discussing expanded oil and gas routes feeding the Ceyhan port, aiming to reduce reliance on the Strait of Hormuz and boost alternative export capacity. Gold Reserves Trend: World Gold Council data shows central banks bought 51 tonnes of gold in June, with Georgia listed among buyers.

Transport & Connectivity: Georgia and the Asian Development Bank signed a $250m loan for the Tbilisi bypass, covering the Airport–Lochini and Lochini–Rustavi sections (about 18.9 km, four lanes), aimed at easing capital traffic and boosting corridor capacity. Energy & Governance: Georgia’s Electrosystem head Vano Zardiashvili resigned after two nationwide blackouts, with reports pointing to regulator criticism and a planned replacement. Construction & Real Estate: Ambassadori Island Batumi’s first tower is progressing in two zones, with third-floor works underway in Zone A and deep foundation piling (to 65m) in Zone B. Consumer & Retail Oversight: Georgia’s Competition and Consumer Agency reports a surge in consumer rights complaints (online dominates at 70%), fines totaling 214,398 GEL across 221 cases, and 120 commitment agreements. Business & Industry Signals: ADB-backed logistics upgrades and the bypass plan land alongside broader Middle Corridor momentum, while Georgia’s aviation fuel supply chain is in focus as Uzbekistan turns to imports via Georgia and other channels.

Anaklia Port Push: Georgia accelerated Anaklia deep-sea port works after a contract revision cut costs by about $50m, with the first dredging vessel entering the sea area Aug 1 and the government aiming for the first ships by 2029. Power Sector Shake-up: Georgia’s main grid operator head Vano Zardiashvili left his post days after the July 24-25 nationwide blackouts, as regulators questioned whether the system could stay stable when disconnected from Azerbaijan’s grid. Middle Corridor Logistics: Azerbaijan–Georgia rail border crossing times are set to be cut twofold, with plans for real-time data exchange and streamlined inspections to boost freight and passenger flows. Fuel Supply Pressure in Abkhazia: Abkhaz drivers report worsening gasoline shortages, with long queues at stations and claims of low-quality fuel, despite reported arrivals of 414 tons of gasoline. Aviation Fuel Link to Georgia: Uzbekistan says it has arranged aviation fuel imports from Georgia and Iraq as demand rises 27% to 375,000 tons (Jul-Dec), with Batumi handling European-produced fuel while Kulevi’s aviation kerosene production is slated for 2027. Wine Industry Boost: Georgia’s National Wine Agency backed 13 wine festivals and professional events in the first half of 2026, while an International Sommelier Guild delegation toured wineries and held tastings in Tbilisi. Energy Sanctions Compliance: Black Sea Petroleum says it is moving away from Russian crude after being listed in the EU’s latest sanctions package, while also processing Kazakh crude and expecting Libyan shipments.

Anaklia Port Push: Georgia says Anaklia deep-sea port construction is being accelerated to the maximum, with first-phase completion targeted for 2029 and first ships expected then, after contract revisions and new dredging activity by Jan De Nul. Power-Sector Shake-Up: After Georgia’s July nationwide blackouts, the head of the country’s main grid operator, Georgian State Electrosystem, has left the post amid regulator-linked questions about grid stability and protection systems. Tbilisi Real Estate Heat: June data show demand jumping on both primary and secondary markets, with secondary sales hitting the highest monthly level since 2022 and permits rebounding after months of decline. Middle Corridor Logistics: Azerbaijan–Georgia rail border crossing procedures are set to speed up twofold, with more real-time data exchange and simplified checks aimed at boosting freight and passenger flows. Wine Industry Momentum: Georgia’s National Wine Agency backs 13 wine festivals and professional events in the first half of 2026, while an international sommelier delegation highlights growing interest in Georgian wine quality. Energy Supply Diversification: Black Sea Petroleum says it is moving away from Russian crude under EU sanctions pressure, while processing Kazakh crude and preparing additional shipments.

Port & Logistics: Dredging has started at Georgia’s Anaklia deep-water port, with a Belgian vessel beginning work on the access channel and planned sea-depth increase to 17.5 meters; the breakwater is next, dredging is set to finish by May next year, and the first phase targets up to 600,000 containers annually by 2029. Infrastructure Finance: The Asian Development Bank approved a $250m loan for the Tbilisi Bypass Road, aimed at boosting regional connectivity. Energy & Trade Corridors: Azerbaijan and Türkiye agreed to speed up energy corridor projects, including the Nakhchivan–Türkiye interconnector and the Azerbaijan–Georgia–Türkiye–Bulgaria Green Energy Corridor. Agri-Food & Market Access: Armenia’s embassy says Armenian fish exports to Georgia have begun after Russia tightened imports, with first consignments landing late July and more expected. Regional Business Climate: Adjara’s government reviewed development projects, including new cycling routes to Goderdze, studies on public air transport, and upgrades around the Khulo Alpine Botanical Garden. Tech & Skills: FAO is developing an AI tool to help identify Georgia’s cattle breeds, supporting better monitoring and planning for livestock producers. Public Services & Safety: Severe weather warnings for parts of Georgia include heavy rain, strong winds, and flooding risk.

Tbilisi Bypass Boost: The Asian Development Bank approved a $250m loan for Georgia’s Tbilisi bypass road, including an 18.9-km four-lane stretch to ease congestion and strengthen the East-West Highway and regional freight links. Armenian Exports Find New Route: Armenia has started exporting fish to Georgia after Russia tightened imports, with the Armenian Embassy saying shipments began late July and volumes are expected to rise. Adjara Tourism Infrastructure: Adjara’s government reviewed development plans focused on new tourist routes and roads around Goderdze and other sites, plus cycling links and studies for public air transport in Batumi. Middle Corridor Logistics: Kazakhstan Temir Zholy launched a multimodal fertilizer shipment from Ekibastuz to the UK via the Middle Corridor, using Poti and Batumi ports. Energy Corridor Push: Azerbaijan and Türkiye agreed to accelerate the Nakhchivan-Türkiye interconnector and the Azerbaijan-Georgia-Türkiye-Bulgaria green energy corridor projects. Fuel Pressure in Abkhazia: Abkhazia reported a gasoline delivery of 414 tons, but residents still describe queues and limited dispensing.

Crypto & Power: Russia extended its crypto mining ban to Moscow and the Moscow region from Aug. 15, 2026 through Dec. 31, 2032, citing grid strain from 65 data centers using about 734 MW. Armenian Exports to Georgia: Armenia’s embassy says fish and agricultural shipments are entering Georgia after Russia tightened imports, with first batches arriving July 27-30 and more expected. Adjara Development: Adjara’s government reviewed key tourism and infrastructure plans, including new cycling routes toward Goderdze and Khulo-Tago, possible public air transport in Batumi, and upgrades around the Khulo Alpine Botanical Garden. Transport & Trade: The ADB approved a $250m loan for Georgia’s Tbilisi bypass road, aiming to cut congestion and improve freight links. Middle Corridor Logistics: KTZ launched a multimodal mineral fertilizer shipment from Kazakhstan to the UK via the Trans-Caspian route, crossing Azerbaijan and Georgia and reaching Poti and Batumi ports. Energy Corridors: Azerbaijan and Türkiye agreed to speed up the Nakhchivan–Türkiye interconnector and the Azerbaijan-Georgia-Türkiye-Bulgaria Green Energy Corridor.

Transport & Connectivity: The Asian Development Bank approved a $250m loan for Georgia’s Tbilisi bypass, backing an 18.9-km four-lane section on the East-West Highway to divert transit traffic from central Tbilisi and cut freight delays. Agri-Trade: Armenia is expanding agricultural exports to Georgia, with first batches of products arriving July 27-30 and fish sales negotiations now concluded after Russia tightened restrictions. Regional Development (Adjara): Adjara’s government reviewed key tourism and infrastructure projects, including new routes and road upgrades toward Goderdze, plus plans for cycling links and studies on public air transport in Batumi. Logistics for Exports: Kazakhstan Temir Zholy launched a multimodal mineral fertilizer shipment to the UK via the Middle Corridor, routing through Azerbaijan and Georgia to Poti and Batumi before sea delivery. Energy Corridor Push: Azerbaijan and Türkiye agreed to accelerate the Nakhchivan–Türkiye interconnector and the Azerbaijan-Georgia-Türkiye-Bulgaria green energy corridor. Local Business & Consumer Impact: Abkhazia reported improved gasoline availability after a 414-ton delivery, but residents still describe shortages and limited dispensing at stations. Economy Watch: Georgia’s real GDP grew 8.6% in June and 7.9% across the first half, with manufacturing, transport, construction and ICT contributing most.

Agri Trade Boost: Armenia’s Embassy says first batches of Armenian agricultural goods reached Georgia between July 27-30, with more supplies planned and fish sales negotiations now successfully concluded. Transport & Logistics: The Asian Development Bank approved a $250m loan for Georgia’s Tbilisi bypass, backing an 18.9km four-lane segment to reroute transit traffic and cut congestion, travel times, costs and emissions. Energy Corridors: Azerbaijan and Türkiye agreed in Istanbul to speed up the Nakhchivan–Türkiye interconnector and the Azerbaijan–Georgia–Türkiye–Bulgaria Green Energy Corridor, with talks also touching the Caspian–Black Sea–Europe green corridor. Middle Corridor Exports: Kazakhstan Temir Zholy launched its first multimodal mineral fertilizer shipment to the UK via the Middle Corridor, moving through Azerbaijan and Georgia to Poti and Batumi before sea to Felixstowe. Power Reliability Watch: Georgia’s energy regulator says a 110-kV “Geguti” line outage may have contributed to the July 24 nationwide blackout, while ENERGO-PRO Georgia disputes that its line caused the collapse. Food Safety: Lidl US expanded a recall of Eridanous shortbread cookies due to undeclared wheat, soy, milk, egg allergens from foreign-language packaging. Local Business Tech: WeCharge says it’s expanding its power-bank rental ecosystem and preparing to enter the European market by year-end, operating 700+ stations across Georgia.

Georgia Economy Watch: GeoStat says real GDP grew 8.6% in June and 7.9% in 1H 2026, with gains led by manufacturing, transport/storage, construction, and info/communications, while mining and energy lagged. Power & Grid Risk: Georgia’s blackout probe is sparking a dispute after the energy regulator suggested an outage on the 110-kV “Geguti” line near the “Kutaisi 220” substation may have contributed to the July 24 nationwide outage; ENERGO-PRO Georgia rejects that its line caused the collapse. Energy Infrastructure: Transelectrica says the Georgia–Romania Black Sea submarine cable project is moving into marine survey prep to confirm the route and technical design data. Regional Trade & Connectivity: ADB approved a $250m loan for the Tbilisi bypass road, and Tbilisi’s dry port is set to invest up to $55m to expand Middle Corridor logistics. Tech & Industry: WeCharge, with 700+ power-bank rental stations across Georgia, is preparing to enter Europe by year-end. Agriculture & Food Links: Armenian agricultural products and fish are entering Georgia in early batches. Livestock Innovation: FAO is developing an AI tool to identify Georgia’s cattle breeds using field data and images. Food Safety: Lidl US expanded a recall of Eridanous shortbread cookies over undeclared wheat, soy, milk, egg and coconut allergens.

Black Sea Energy & Digital Infrastructure: Georgia–Romania submarine cable work moves into marine survey prep, while Azerbaijan’s Trans-Caspian fiber-optic line begins installation toward Aktau—both signals of faster connectivity planning across the region. Transport & Construction: The Asian Development Bank approved a $250M loan for Georgia’s Tbilisi bypass, backing an 18.9-km four-lane section to cut congestion and improve freight reliability. Energy Grid Stability: A Georgian energy regulator summary says a July 24 disconnection left Georgia’s grid isolated from Azerbaijan’s grid, triggering frequency/voltage drops and cascade shutdowns that led to a full blackout. Tech & Industry Development: Kutaisi’s former Parliament building reopened as Georgia’s largest technology hub, adding AI computing, labs, and startup/education facilities. Diplomacy for Business: Georgia’s foreign minister met the new US Chargé d’Affaires ad interim, Amy W. Diaz, to discuss next steps in bilateral cooperation. Mining: Krakatoa Resources accelerated drilling at its Zopkhito antimony-gold project in Georgia, moving from preparatory work into active resource definition.