AGP Executive Report

Wine & Tourism: Georgia opened Stalin’s hidden 40,000-bottle wine cellar in Tbilisi, with French and Georgian rarities now set for auction and proceeds aimed at launching a winemaking school. Construction & Health: Batumi is moving ahead with a new unified medical complex at the republican hospital site, including an emergency coordination center and a multifunctional polyclinic, with phased operations expected by year-end. Energy & Corporate Moves: TELASI’s ownership is set for a full buyout as Silk Road Holdings BV changes tender conditions to purchase the remaining shares of the Tbilisi power company. Trade & Logistics: A China-Europe freight push is growing via the Trans-Caspian route through Kazakhstan, Azerbaijan, Georgia and Turkey, with volumes rising and Russia’s transit role at risk. Civic Pressure: Thousands marched in Tbilisi demanding EU integration and new elections, keeping political uncertainty front and center for business planning. EU-leaning Security Context: Zelensky urged Europe to support Georgia and other neighbors facing Russian pressure, linking defense industry capacity with diversified economic ties.

EU Integration Pressure: Thousands marched in Tbilisi demanding EU ties and new elections, with opposition leaders blaming the government for obstructing accession and calling for a fresh electoral mandate. Energy & Trade Corridors: Ukraine’s intelligence service says China is boosting freight to Europe via the Trans-Caspian route through Kazakhstan, Azerbaijan, Georgia and Turkey, with Kazakhstan Railways planning major investment to scale the corridor. Wine Industry & Tourism: Georgia opened Stalin’s 40,000-bottle wine cellar for the first time; the government plans an auction and to use proceeds to support a winemaking school, aiming to attract collectors. Construction & Healthcare: Adjara is building a unified medical complex in Batumi, including an emergency center and multifunctional polyclinic, with gradual commissioning expected by year-end. Transport & Logistics: Kazakhstan is also weighing the Baku–Supsa pipeline as an export option, underscoring the South Caucasus’ growing role in Eurasian energy logistics. Local Enforcement: Georgia arrested six foreign nationals in Tbilisi over alleged large-scale indoor cannabis cultivation in rented apartments. Electricity Market Watch: Russia’s electricity generation rose 1.8% year-on-year in Q1 2026, with exports including shipments to Georgia.

Energy & Transit: Georgia and Azerbaijan signed a 20-year electricity supply/transit framework and extended a 2003 gas deal, plus restored daily Tbilisi–Baku passenger rail and discussed making a new BTK rail section fully operational—though critics say the full agreement texts remain undisclosed, raising questions for long-term energy independence. Power Market: Russia’s electricity generation rose 1.8% in Q1 2026, with exports up 5.8% and shipments including to Georgia, underscoring the region’s still-interlinked grids. Health Infrastructure (Batumi): Adjara is building a unified medical complex at Batumi’s republican hospital, including an emergency coordination center and an N1 multifunctional polyclinic, with gradual operation expected by year-end. Transport/Logistics: Kazakhstan is exploring additional oil export routes, including the Baku–Supsa pipeline, after Azerbaijan and Georgia agreed to restore pipeline operations. Industry & Regulation (Tbilisi): Georgia arrested six foreign nationals over alleged large-scale indoor cannabis cultivation in rented apartments, with seizures including THC and equipment. Aviation/Trade: Georgia’s auto market is adjusting to higher customs duties for vehicles over 6 years old from April 2026, while electric vehicles are exempt—shifting costs and liquidity for importers. Wine Sector: Georgia opened the historic “Wine Factory No. 1” enoteca in Tbilisi with up to 20,000 rare bottles aged over 200 years, including items linked to Stalin, and plans an auction to fund a new wine education school.

Georgia Economy Watch: Geostat says Georgia’s economy grew 6.2% in April (8.3% average for Jan–Apr), with manufacturing and services leading; exports rose 21% to $2.4bn and petroleum refining support helped lift April GDP. Energy & Exports: Russia’s electricity generation rose 1.8% in Q1 and exports increased 5.8% to 2.12bn kWh, with shipments reported to Kazakhstan and Georgia. Power/Infrastructure Deals: Georgia and Azerbaijan’s latest agreements include a 20-year electricity framework, a 20-year gas deal extension, and restoring daily Baku–Tbilisi passenger rail; the Baku–Supsa pipeline is also back in the conversation as Kazakhstan explores export routes. Azerbaijan–Georgia Transit: Kazakhstan is weighing the Baku–Supsa pipeline as an oil export option, after Azerbaijan and Georgia agreed to restore pipeline operations. Wine Industry & Tourism: Georgia unsealed Stalin’s 40,000-bottle wine collection in Tbilisi, planning an auction to fund a new wine education school. Telecom/Connectivity: spusu cut roaming data prices across 115 countries, including reductions for Georgia. Security/Industry Link: Georgia arrested six foreigners over alleged large-scale indoor cannabis cultivation in Tbilisi apartments, with police citing seized THC, plants, and processing equipment.

Auto Policy Shock: Georgia’s auto market is bracing for a structural shift after higher vehicle customs duties and a new excise tax logic from April 2—clearance costs for cars older than 6 years can jump sharply, while electric vehicles are exempt, pushing dealers to adapt fast. Macroeconomy Watch: Geostat says Georgia’s economy grew 6.2% in April (8.3% for Jan–Apr), with manufacturing and services leading; exports also rose strongly, helped by the start of domestic petroleum refining. Wine & Tourism Industry: Georgia opened a new enoteca at “Wine Factory No. 1” in Tbilisi with up to 20,000 rare bottles, including historic Stalin-linked items; the government also plans to unseal and auction a ~40,000-bottle collection to fund a wine education school. Trade & Logistics: Kazakhstan is weighing the Baku–Supsa pipeline as an export route, while Georgia and Azerbaijan have already agreed to restore it, aiming to diversify oil flows via the Black Sea. Environment Enforcement: Georgia fined a Liberia-flagged vessel 100,000 GEL for polluting the Black Sea with industrial wastewater, requiring payment and damage compensation before it could leave territorial waters.

Energy & Transit: Kazakhstan is weighing the Baku–Supsa pipeline as an oil export route, even as its 2026 exports fall amid lower Tengiz output and constraints at Caspian Pipeline Consortium and Novorossiysk. Power Costs: Georgia Power will cut typical residential electricity bills by about $4 a month after the regulator approved rate changes, using federal nuclear tax credits to offset fuel and storm costs. Finance & Capital Markets: The National Bank of Georgia highlighted growing corporate bond issuance momentum, citing EUR 11m in 2-year bonds under Tegeta Holding’s USD 60m program and record activity across sectors. Environment & Agriculture: Georgia’s Environment Protection and Agriculture Ministry signed grant agreements with the Caucasus Nature Fund to fund operations for the Aragvi and Truso protected landscapes. Urban Infrastructure Oversight: Tbilisi officials say rehabilitation at Avlabari subway station is being reviewed after reports of leaking during rain, with the city audit service tasked to study the work. Pharma Quality: GM PHARMA hosted an Azerbaijani GMP inspection ahead of planned exports, signaling continued expansion of its quality systems. Regional Trade Signals: New Georgia–Azerbaijan deals on electricity supply/transit, gas purchase extensions, and restored rail service are raising questions about transparency and long-term energy independence.

Energy Security Shock: Russia says it may suspend a 2013 deal that discounts gas, oil products and diamonds for Armenia if Yerevan pursues EU membership, with an expert estimating Armenia’s replacement costs could reach $230–$400m a year. Georgia–Azerbaijan Trade & Transit: New, undisclosed agreements signed in Baku include a 20-year electricity framework, a 20-year gas-purchase extension, and restored daily Tbilisi–Baku passenger rail, while critics warn about transparency and Georgia’s long-term energy independence. Banking Oversight: Georgia’s Parliament approved the National Bank of Georgia’s 2025 annual report, including inflation near target and a May 2026 policy rate hike to 8.25%. Pharma Quality Move: GM PHARMA hosted an Azerbaijani GMP inspection at its EU-GMP compliant facility, supporting planned exports to Azerbaijan. Logistics Corridor Push: Kazakhstan targets raising Middle Corridor container traffic to 10m tons by 2030, with the route running through Azerbaijan and Georgia. Industry & Standards: PureCycle Technologies announced ISO 9001:2015 certification for its plastic recycling quality management system, signaling readiness for scaled customer supply.

Commercial Real Estate: Colliers reports Tbilisi’s office market stayed on track in 2025, with 52 modern business centres (~300,000 sq.m.), Class A/B making up about 70% of supply, and as much as 150,000 sq.m. more under construction—mostly around Saburtalo—while demand is led by finance, insurance and investment plus IT and professional services. Sanctions & Finance: The UK sanctioned three Georgia-registered firms (Arvix, Rapira, Aifory) over alleged Russia-focused exchange activity; Georgia’s National Bank says they were outside its oversight, while the Investigative Service says cases were already underway and resulted in fines and suspended sentences. Energy & Transit Politics: Russia’s press secretary Dmitry Peskov framed gas subsidies to Armenia as “aid” at Russia’s expense, while a TASS factbox reiterates how Russian gas reaches Armenia via Georgia through the North Caucasus-Transcaucasia pipeline—keeping regional energy leverage in focus. Creative Industries: Tbilisi hosted a UNESCO Creative Cities Network Media Arts meeting (27–29 May), bringing together representatives from 20+ cities to discuss media art, digital creativity and international collaboration. Legal/Industry Spillover: Georgia’s appeals panel ordered a new trial in a highway collision case, citing improper jury instructions on the “sudden emergency” doctrine.

Energy & Trade Pressure: Russia warned Armenia it could suspend or terminate its 2013 gas, oil products, and rough diamonds supply deal if Yerevan keeps moving toward EU accession, raising the stakes for regional energy security. Energy Diplomacy: Russian press secretary Dmitry Peskov framed Russia’s gas subsidies to Armenia as “aid” paid for by Russia, while pointing Armenia’s Gazprom pricing terms as a commercial matter. Creative Industries & Media Arts: Tbilisi hosted the UNESCO Creative Cities Network Media Arts subgroup annual meeting (27–29 May), bringing together representatives from 20+ cities to discuss media art, digital creativity, and international cooperation. Construction & Urban Environment: Residents near the Vere River Gorge protested the long-delayed “Ixori” 48-story towers project, saying its scale is unacceptable for the environment and violates local legal and aesthetic standards. Connectivity & Regional Logistics: Georgia is positioning itself as a gateway for India to Europe, the Black Sea, and Central Asia, with growing interest in logistics and related sectors. Public Health Industry: GM PHARMA joined World Hypertension Day with free consultations and diagnostics for Georgians, including cardiology services and ECGs. Sanctions & Finance: The UK announced new sanctions targeting Russia-linked crypto and shadow payment networks, including entities tied to Georgia.

Entrepreneurship Pulse: On the eve of Russia’s Entrepreneurs’ Day, Sberbank Analytics says Tyva led revenue growth among entrepreneurs (+41.5%), followed by Kalmykia (+34.9%) and Chukotka (+34.5%), while Moscow still hosts 20% of legal entities. Georgia Legal & Utilities: A Georgia appeals court revived a malpractice case against a chiropractor, and another panel sent back a billing dispute involving Georgia Power, both hinging on procedural missteps. Sanctions & Crypto: The UK rolled out its first Russia-sanctions targeting crypto exchanges and “shadow” payment routes, naming firms tied to Russia-focused networks that include Georgia-linked platforms. Connectivity & Trade: Kazakhstan is pushing a $10bn rail freight expansion between China and the EU, with the Middle Corridor spotlighted through Georgia and the Caspian route. Regional Business Moves: BALFIN and Jumbo extended their exclusive brand partnership across Armenia, Azerbaijan, Georgia and more, adding a China logistics hub. Energy Prices (US): GasBuddy’s May 16 week showed Georgia averages edging up, with some counties hitting standout lows for regular and midgrade.

Protest Crackdown: Opposition Alliance demonstrators started a march from TSU toward Rustaveli Avenue, but police blocked plans to bring in sound equipment for a stage near Parliament, turning the Independence Day rally into a fresh test of street politics. Armenia–EU Rail Pivot: Turkey lifted its rail blockade for Armenian cargo via Akhalkalaki–Kars, giving Armenia a new EU route through Georgia and signaling a wider shift away from Moscow’s rail grip. US–Armenia Push: US Secretary of State Marco Rubio signed a strategic partnership with Armenia’s FM ahead of June 7 elections, including critical minerals and a proposed southern transit corridor. Sanctions Pressure on Georgia-linked Crypto: The UK sanctioned Russia-linked crypto and payment networks, naming Georgia-registered firms tied to the Kremlin-backed A7 system. Regional Trade & Logistics: Jumbo and BALFIN expanded their exclusive Jumbo partnership into Georgia and neighboring markets, adding a China logistics hub. Energy/Transport Watch: A Baku–Tbilisi passenger train service resumed, while UN expects CIS and Georgia growth to moderate in 2026. Local Costs: GasBuddy reports show Georgia’s midgrade and regular prices edging up week-to-week, with pockets of lower deals in several counties.

Fuel Watch: Georgia’s gas prices ticked up in the week ending May 16, with regular averaging $3.98/gal statewide. The cheapest regular spot was in Turner County at $3.85, while Dougherty County hit $3.52 at one station. Premium averaged $4.85/gal, with Brantley County’s low at $4.69. Midgrade averaged $4.44/gal, and Murray County posted $4.14 as the week’s low. Diesel averaged $5.08/gal, with Early County’s low at $5.39. Regional Connectivity: After a six-year gap, the Baku–Tbilisi passenger train resumed using modern Stadler carriages. Macroeconomic Outlook: The European Commission forecasts Georgia’s GDP growth at 5.0%–5.5% for 2026–27, led by services and consumer activity, while warning politics and higher energy costs could weigh on investment. Energy & Trade: Georgia’s long-term energy cooperation with Azerbaijan continues, and Tether launched in Tbilisi with plans for a digital GELt.

Agriculture Costs: Georgia’s agricultural production unit costs jumped 15% year-on-year, driven by higher prices for annual crops and live animals, according to Geostat. Port Planning: Prime Minister Irakli Kobakhidze says the Anaklia deep-sea port’s first phase is still realistic for 2029, with a cooperation model decision with the Chinese-Singaporean consortium expected in the coming months after contract terms were revised. Energy & Transit: Azerbaijan reported 556 million tons shipped via the BTC pipeline to date, while Georgia is also pushing connectivity with a new national park near the Azerbaijani border and regional logistics momentum ahead of TransLogistica Caspian (June 1–3, Baku). Regional Security & Trade: Armenia’s election campaign is tied to Turkey normalization as the Akhalkalaki–Kars rail link reopens, and Kazakhstan received WOAH recognition for foot-and-mouth disease-free zones covering its territory. Cyber Enforcement: The Netherlands seized 800 servers and arrested two people tied to hosting infrastructure used for Russian cyberattacks.

Cross-Border Crime: Georgia detained a Kazakh couple wanted internationally for allegedly producing synthetic drugs in Kazakhstan, with investigators saying the husband ran a lab in Almaty while the wife handled financing. Agri-Extension: Khulo hosted an information meeting for potato farmers, where researchers discussed certified seed material, disease management, and high-altitude growing guidance for Adjara’s Highlands. Regional Trade & Transport: Armenia says the Akhalkalaki–Kars rail link through Georgia and Turkey is now open for exports and imports, a potential boost for Middle Corridor-style routing. Middle Corridor Push: A US–Eurasia Transport Forum in Los Angeles brought together Azerbaijan, Georgia, and Kazakhstan to pitch logistics and port cooperation tied to the Trans-Caspian route. Fuel Watch (Georgia): GasBuddy’s week ending May 16 showed midgrade as low as $4.04 in Baldwin County and regular as low as $3.78 in Appling County, while diesel hit $4.67 in Peach County.

Fuel Watch: GasBuddy’s week ending May 16 shows Georgia’s premium averaging $4.85 (+ from the prior week), with McIntosh County’s lowest premium at $4.69 (one station). Diesel averaged $5.08 statewide, while Cherokee County hit $4.68 (one station) and Richmond County posted $4.67 (one station). Regional Trade & Transport: Armenia opened a rail route to Turkey via Georgia using the Akhalkalaki–Kars corridor, plugging into the BTK network and aiming to cut logistics costs and delivery times. US–Eurasia Logistics Push: The US–Eurasia Transport Forum in Los Angeles, hosted by the Port of Long Beach, focused on expanding the Middle Corridor with port-to-port cooperation (Long Beach–Baku/Aktau/Kuryk/Poti/Batumi) and new business opportunities. Energy Diplomacy: Russia stepped up energy pressure on Armenia ahead of June elections, arguing discounted gas should track Armenia’s “geopolitical vector,” while Armenia says pricing is contract-based. Public Safety: A Tbilisi construction-site dispute on May 23 ended in a fatal stabbing; police detained a suspect and opened a murder case. Sports: The Indy 500 saw Ed Carpenter eliminated after a Turn 1 crash on Lap 27.

Fuel Watch: GasBuddy’s week ending May 16 shows Georgia’s premium prices averaging $4.85, with the cheapest reported premium hitting $4.23 in Lowndes County and $4.24 in Columbia County; midgrade lows include $3.99 in Cobb County and $4.01 in Houston County, while regular lows include $3.69 in Gwinnett County and $3.69 in Long County; diesel’s statewide average sits at $5.08, with standout county lows like $4.58 in Dade County and $4.79 in Ware County. Energy Politics (Armenia): Russia is ratcheting up pressure on Armenia ahead of June’s parliamentary vote, warning that closer EU alignment could raise gas prices and trigger trade barriers. Regional Power Links: Bulgaria, Azerbaijan, Türkiye, and Georgia agreed to map out acceleration steps for the Azerbaijan–Bulgaria Green Energy Corridor, aiming to strengthen connectivity between Southeast Europe and the Caspian region. Election Context: An ODIHR interim report says Armenia’s June 7 election is unfolding in a polarized environment, with unresolved concerns around the legal framework and campaign conditions.