AGP Executive Report

Electricity Exports Watch: Georgia’s power exports to Turkey hit a 10-year low in May, with volumes down 4.8x and revenues down 7.8x as Turkish prices slid to record lows, squeezing the economics of exports. Grid Balancing: Overall exports fell 73.1% in May to 0.05 TWh, while domestic consumption rose slightly, forcing output limits to protect supply-demand balance. Sanctions Ripple in Media Advertising: Nestlé launched an internal probe after its products were advertised on sanctioned Imedi TV, and Procter & Gamble has now paused advertising and cut ties with the channel following UK sanctions. Fertilizer Supply Chain: Four fertilizer cargoes (urea, DAP and sulphur) cleared the Strait of Hormuz and are heading to India, supporting Kharif-season reserves amid regional shipping risks. Energy Sanctions Loopholes: A Kyiv School of Economics analysis says the EU’s Russian oil “refining loophole” ban reduced product flows from key refineries, but loopholes still allow Russian-linked fuel to reach other markets. Aviation Links: China Eastern is resuming Shanghai–Stockholm flights and says new long-haul routes to Tbilisi are under consideration.

Real Estate Push: Archi Horizon in Tbilisi’s Ortachala is getting a one-day “Big Discount Day” on July 5, with buyers able to purchase apartments under construction in Georgia and abroad. Media & Compliance: Procter & Gamble has cut ties with Imedi TV after the channel was sanctioned by the UK and branded a Russian state mouthpiece, following internal ethics checks. Fertiliser & Trade Flows: Four fertiliser cargo ships (urea, DAP and sulphur) cleared the Strait of Hormuz and are heading to Indian ports, underscoring how Middle East shipping rules can quickly ripple into agricultural supply chains. Local Business & Regulation: Georgia’s Competition and Consumer Protection Agency fined Orbi Group Batumi 500 lari for not providing requested information. Education Investment: GEMS School Management and Omnia Georgia signed a pre-operational deal to open an international school in Tbilisi’s Isani district in September 2029. Population & Demand Signals: GeoStat reported Georgia’s 2024 census at 3.93m people, with Batumi up sharply and Tbilisi continuing to grow—useful context for housing, services and labour planning.

Tbilisi’s Growth Snapshot: GeoStat says Georgia’s population hit 3.93 million in the 2024 census, with foreign residents at 3.4% (133,857 people), led by Russians and Indians—useful context for labor, housing and consumer demand. Education & Real Estate: GEMS School Management and Omnia Georgia signed a pre-operational deal to open an international school in Tbilisi’s Isani district in September 2029, signaling continued private education investment. Business Regulation: Georgia’s Competition Agency fined Orbi Group Batumi 500 lari for not fully providing requested information, a reminder that compliance is getting tighter. Outdoor Advertising Tech: Alma is pushing data-driven outdoor campaigns, aiming to help brands measure impact more precisely. Fitness Sector: Reform Sport Club keeps expanding as demand for modern gyms grows. Regional Connectivity: AzerTelecom and Telecom Armenia agreed to route Armenia’s international internet traffic via Azerbaijan, boosting route diversity for the South Caucasus. Energy/Trade Watch: Four fertiliser cargo ships cleared the Strait of Hormuz for India, underlining how shipping rules still steer agriculture supply chains. Industry Loss: Hospitality entrepreneur Temur Ugulava, founder of Adjara Group, died at 56.

Hospitality & Tourism: Georgian hospitality pioneer Temur Ugulava dies at 56 in the US after a lung cancer battle; credited with bringing Holiday Inn to Georgia and later building Adjara Group behind Rooms Hotels and Stamba Hotel. Regional Infrastructure: Adjara head Zurab Pataradze tours high-altitude projects, saying Khulo–Zarzma road works are near completion and new Goderdzi resort facilities are moving ahead to boost tourism and investment. Energy Regulation & EU Linkages: GNERC member Giorgi Pangani took part in the first South Caucasus Energy Connectivity meeting in Belgium under the EU4Energy/CEER framework. Road Building: Georgia’s Roads Department launches an international tender for two sections (lots 4 and 5) of the Tbilisi bypass road, with expressions of interest due by Aug 3. Agribusiness Trade: Competition authority data shows 81% of Georgia’s sunflower oil imports in 2025 came from Russia. Central Asia Push: PM Irakli Kobakhidze says deeper Central Asia ties are a top foreign economic priority, positioning Georgia as a transit corridor; his Tajikistan visit followed a Kyrgyzstan trip.

Central Asia Transit Push: Georgian PM Irakli Kobakhidze says deepening ties with Central Asia is now a top foreign economic priority, aiming to use Georgia’s Black Sea links to boost its transit role; the plan follows recent visits to Tajikistan and Kyrgyzstan and sets up further moves toward Kazakhstan and return visits by Uzbekistan and Turkmenistan. Customs & Trade Links: Armenia and Georgia discussed customs cooperation after Georgia’s Revenue Service head met Armenia’s ambassador, while Georgia also denied claims that Armenian strawberries were routed to Russia via Georgian territory. Agriculture Under Pressure: Georgia’s flower trade with Armenia is surging despite Russian restrictions, with Armenia accounting for over 63% of Georgia’s flower imports in May; meanwhile, broader regional embargoes are threatening farmers’ cashflow as goods fail inspections. Food Access via Local Supply: Georgia’s WIC Farmers Market Nutrition Program is bringing fresh local produce to Bulloch County residents at the health department on June 23-24, supporting nearby farmers. Energy & Shipping Risk: Commentary highlights how uncertainty around the Strait of Hormuz could disrupt global oil and fertilizer flows—an issue with direct knock-on effects for regional logistics and input prices.

Central Asia Transit Push: Prime Minister Irakli Kobakhidze says Georgia is prioritizing deeper ties with Central Asia to unlock economic potential and strengthen its role as a Europe-to-region transit corridor, pointing to growing trade links since 2022 and planned visits to Kazakhstan plus return visits by Uzbekistan and Turkmenistan. Tajikistan-Georgia Deals: Following high-level talks, Georgia and Tajikistan signed a package of cooperation agreements covering air transport, tourism, education and science, economic cooperation governance, climate and environmental risk work, and sports. Georgia Economy Snapshot: GeoStat reports Georgia’s Q1 2026 GDP grew 9.0% year-on-year, with the biggest positive contributions from information and communication, transport and storage, wholesale/retail, finance, and arts—while agriculture and construction contracted. Energy & Shipping Watch: Analysts flag that Middle East shipping risk around the Strait of Hormuz remains volatile, with fertilizer and ammonia cargo flows still sensitive to corridor safety—an issue that matters for regional supply chains feeding agriculture. Azerbaijan Gas Output: Azerbaijan produced 20.935 bcm of natural gas in Jan–May 2026, with exports rising in volume but revenues down on lower international prices.

Central Asia Transit Push: Georgian PM Irakli Kobakhidze says deeper ties with Central Asia are now a top foreign economic priority, aiming to use Georgia’s Black Sea links to unlock transit potential; he visited Tajikistan after a Kyrgyzstan trip and is set to go to Kazakhstan, while Tbilisi prepares return visits from Uzbekistan and Turkmenistan. Customs & Trade Ties: Armenia’s ambassador to Georgia met Georgia’s newly appointed Revenue Service head to discuss trade and customs cooperation, as Georgia also denied claims that Armenian strawberries were re-exported to Russia via Georgia. Macroeconomy: Georgia’s GDP grew 9% year-on-year in Q1 2026, with standout contributions from information and communication, transport and storage, and wholesale/retail, while agriculture and construction contracted. Energy & Regional Context: Reports highlight rising pressure on fuel supplies and prices globally, including Russia’s refinery drone impacts and localized gas price movements in the US—useful context for how volatility can spill into regional energy markets.

Georgia Economy: GeoStat says GDP grew 9.0% year-on-year in Q1 2026, with the biggest positive lifts from Information & Communication, Transport & Storage, and Arts; Agriculture and Construction contracted. Agri-Food Trade: Georgia’s environment ministry denies claims that Armenian strawberries are being re-exported to Russia via Georgia, calling the reports speculative and harmful to bilateral ties. Food Supply & Prices: Frozen fish imports into Georgia jumped 30% in average import price, pushing market pressure as Georgia remains heavily import-dependent. Exports: Georgia exported 23,600 tonnes of apples (Aug 2025–May 2026), up 30% in volume and 53% in value, with Russia the main buyer. Blueberry Push: Georgia’s blueberry sector is expanding fast, with an international industry visit highlighting integration efforts and expectations of higher yields. Regional Connectivity: The Middle Corridor is set to triple capacity, with Georgia’s rail upgrades and logistics role highlighted as Azerbaijan strengthens its transit push. Energy Policy: TELASI net metering switch requests in Tbilisi are being declined automatically from June 3, shifting solar producers toward net accounting. Governance & Courts: Seven people were sentenced to five years in Georgia’s “4 October case,” tied to the 2025 election-era palace unrest. Diplomacy: PM Irakli Kobakhidze leads Georgia’s first official visit to Tajikistan, aiming to expand cooperation across sectors.

Macroeconomy: Georgia’s GDP grew 9% year-on-year in Q1 2026, with the biggest positive lifts coming from Information & Communication, Transport & Storage, and Finance, while Agriculture and Construction contracted. Agri-food trade: Georgia denied claims that Armenian strawberries are being re-exported to Russia via Georgia under Turkish labels, calling the reports speculative and harmful to bilateral economic ties. Fruit exports: Georgian apple exports rose 30% in the 2025/26 season, reaching 23,600 tonnes worth $17.4m, with Russia still the main buyer. Blueberry push: Georgia’s blueberry sector is getting international attention as growers seek stronger market positioning and higher yields. Energy & connectivity: Azerbaijan reported a 2.6% rise in gas transit through the Baku–Tbilisi–Erzurum pipeline (Jan–May 2026), reinforcing its role in regional supply routes. EU/region business climate: EU officials discussed ways to bolster Armenia’s resilience and diversify after elections, including support for greenhouse farmers. Local industry support: Adjara met farmers in Kobuleti under agriculture programs, including machinery support and vineyard seedlings production.

Energy & Trade: Azerbaijan reported gas transit through its main pipelines of 17.574bn cubic meters in Jan–May 2026, up 2.6% year-on-year, with 54.1% flowing via the Baku–Tbilisi–Erzurum line supplying Georgia and Türkiye. Logistics & Investment: Wildberries says it will build a Central Asian logistics hub in Uzbekistan, investing over $300m and using the hub as a consolidation and export base for regional producers. Industry & Infrastructure: Georgia’s Foreign Ministry summoned the UK ambassador over claims a Russian “shadow fleet” vessel accessed a Georgian port, rejecting what it calls misleading speculation about sanctions compliance. Agribusiness: Armenia exported 162 tonnes of apricots in early shipments to Ukraine and Georgia, while greenhouse farms received new benefits to offset Russia-related export restrictions. Urban Development: Tbilisi is set to get a municipal multi-functional sports center on the Tskneti highway, as new public infrastructure plans move forward. Business & Tech: Global Tech Weekend Tbilisi opens June 19–21, bringing 10,000+ attendees and company pavilions to boost regional tech connections. Legal/Compliance: Georgia’s courts saw major decisions in the first half of 2026, including rulings tied to election materials and damages caps.

Construction & Housing: Tbilisi City Hall plans a municipal multi-functional sports center on Tskneti Highway, with a design competition set to close July 17. Urban Development: Batumi’s municipal fund has launched a tender to prepare detailed project and cost estimates for the rehabilitation of the “Magnolia” residential building, with documentation procurement estimated at 2.25 million GEL (ex VAT). Agri-Exports: Armenia exported 162 tonnes of apricots—first shipments to Ukraine and Georgia—while greenhouse vegetables, strawberries, and flowers also moved abroad; Georgia is listed among top destinations. Trade Pressure: Armenia’s government says it will expand benefits for greenhouse farms to offset export restrictions tied to Russia’s import bans. Cultural Heritage Risk: Georgia’s heritage agency accuses a Georgian Church diocese of illegally demolishing a 6th-century basilica in Zguderi, Kareli Municipality, to make way for a new church. Tech & Industry Networking: Global Tech Weekend Tbilisi 2026 opens June 19–21, bringing together startups, investors, and tech leaders for regional ecosystem-building. EU Policy Watch: A European Parliament report warns Georgia could face suspension of visa-free travel for the whole population if reforms stall. Media/Film Industry: Balkan Doc Market’s BDC Discoveries launches a call selecting eight documentary projects (creative + investigative) for development in Sofia.

Nuclear Race: China is set to overtake the U.S. as the world’s top nuclear power generator within five years, driven by AI-driven electricity demand and faster, cheaper reactor builds—an energy shift that could ripple into regional power planning and industrial costs. Central Asia Gas: Canada-listed Condor Energies says it’s ramping up gas output in Uzbekistan after taking over legacy fields, signaling renewed foreign interest and faster upstream growth in the region. EU-Georgia Visa Risk: A European Parliament report warns that continued inaction by Georgian authorities could lead to suspension of visa-free travel for the whole population, while also criticizing a strategic tilt by Georgian Dream toward China, Russia, and Iran. EU-Armenia Trade Support: The EU is preparing emergency measures to redirect Armenian food exports to Europe after Russian restrictions. Construction Skills: Wiregrass Georgia Technical College wrapped a Georgia Power-funded Summer Construction Training Program, boosting hands-on trade pathways for students. Energy Prices Watch (US): GasBuddy data shows Georgia’s regular gasoline averaging about $3.81 per gallon in the week ending June 6, with local lows in multiple counties.

EU Accession Pressure: The European Parliament adopted a resolution warning that Georgia’s democratic backsliding could stall EU membership, citing laws targeting civil society and media, including the “foreign agents” framework and restrictions on assemblies. Georgian Policy Reorientation: The same EU vote says Georgian Dream is shifting toward cooperation with China, Russia and Iran, raising concerns about strategic projects like the Anaklia Deep Sea Port and arguing Middle Corridor success depends on rule of law. Central Banking & Inflation: Georgia’s National Bank kept the monetary policy rate unchanged at 8.25%, pointing to energy-price volatility and external shocks while noting core and services inflation risks. EU Trade Support for Neighbors: The EU is preparing emergency trade measures to help Armenia offset Russian import restrictions on food and agricultural exports, with potential tariff cuts covering about 20 product categories worth roughly €420m annually. Energy Prices (US, Georgia-linked data): GasBuddy reported Georgia-wide averages for the week ending June 6: regular $3.81/gal, midgrade $4.29/gal, premium $4.70/gal, diesel $4.94/gal, with multiple counties posting single-station lows.

EU Watch: The European Parliament is set to vote on a Georgia report by MEP Rasa Juknevičienė, citing “democratic backsliding,” repression, media limits, and stalled EU accession—an escalation in Tbilisi–Brussels tensions. Craft Beer & Local Industry: Tbilisi’s Ishvi craft brewery plans an end-June launch after three years of development, targeting 365,000 liters annual capacity and launching five beer styles with in-house lab quality control. Energy & Trade Links: Serbia’s Vučić met Georgian leaders in Tbilisi to push cooperation, including plans for a free trade agreement and support for Georgia’s EU path. Agriculture Outlook: Georgia expects a 30–40% increase in blueberry yields, signaling a potential boost for farm output and exports. Regional Logistics: Kyrgyz logistics firms are actively using the Middle Corridor, with Georgia and Kyrgyzstan also discussing direct air links to strengthen trade flows. Food & Packaging Compliance: Georgia’s business ecosystem is watching global packaging rules as recycled-content requirements tighten in the region, with companies preparing PCR-compliant materials ahead of deadlines.

Georgia–Serbia Trade & Transport: Serbian President Aleksandar Vučić told Georgian officials he’s studying Georgia’s “unprecedented” growth, citing 9.3% Q1 expansion and a reported 12% construction lift, while Georgian PM Irakli Kobakhidze said only a few issues remain before a free trade deal and pushed deeper logistics links via the Middle Corridor. Local Wages & Capital Markets: GeoStat reported average monthly nominal earnings in Georgia rose 8.9% to 2,363.8 GEL in Q1 2026, with top gains in mining and quarrying; meanwhile the National Bank highlighted Nutrimax’s debut public bonds as a sign of expanding animal-feed sector access to long-term financing. Middle Corridor Logistics: Kyrgyz logistics firms are actively using the Middle Corridor to move cargo from Europe through the Black Sea, Azerbaijan, Georgia, the Caspian, Kazakhstan and Turkmenistan, with growth tied to better infrastructure and faster transit procedures. Energy & Sanctions Spillover: Serbia’s energy sector moves ahead as MOL and Gazprom-linked NIS talks get a 15-day extension, underscoring how sanctions and refinery continuity remain central to regional supply planning.

AI & Energy Race: China is set to overtake the U.S. as the world’s top nuclear power generator within five years, driven by AI-driven electricity demand and faster, cheaper reactor builds—an external pressure point for Georgia’s energy planning. Sanctions & Shipping: The UK seized a Russian-linked “shadow fleet” tanker in the English Channel, underlining how maritime enforcement is reshaping regional logistics that Georgia’s ports and trade routes depend on. Middle Corridor Push: Kazakhstan is investing $10bn to expand the Trans-Caspian route linking China–Europe via Kazakhstan, Azerbaijan, Georgia and Türkiye, with freight volumes nearly tenfold since 2022—good news for Georgia’s connectivity agenda. Caspian Oil Tech: BP and SOCAR highlighted advanced drilling and production tech at Azerbaijan’s ACG field, signaling continued investment in regional energy output. Georgia-Serbia Business Ties: Serbian President Vučić met Georgian leaders in Tbilisi, with economic cooperation flagged across trade, tourism, transport, energy and new technologies. Wine Industry Niche: Georgia’s “old vines” are gaining export momentum as heritage-focused natural wine producers win international attention. AI Infrastructure in the Region: Armenia’s Eleveight AI is building an NVIDIA-powered “AI factory,” with Georgia noted in its regional vision. Local Business: Express Oil Change & Tire Engineers opened a new store in Port Wentworth, Georgia.