AGP Executive Report

EU Sanctions & Power Supply: The EU’s 21st sanctions package targets Russian energy firm Inter RAO, the indirect owner of about 75% of Tbilisi electricity distributor Telasi, raising fresh nerves after Georgia’s recent nationwide blackouts; Georgia’s central bank says Telasi itself isn’t sanctioned and banks will keep servicing it in lari to protect critical supply. Electricity Trade Watch: A Galt & Taggart study says Georgia carried out no commercial electricity exports or imports in June, with Turkey rejecting imports over low prices—exports resumed in July as Turkish prices rose. Real Estate Investment Trend: In Tbilisi, bulk purchases of 30–50 apartments in new projects are becoming common, with investors eyeing 25–30% returns; Batumi is seeing much higher foreign participation, around 47% of transactions. Middle Corridor Logistics: Kazakhstan’s KTZ shipped mineral fertilizers to the UK via the Trans-Caspian route, moving through Azerbaijan and Georgia to Poti/Batumi before onward sea freight—another push to diversify Eurasian trade flows. Maritime Education: Adjara’s government backed Batumi State Maritime Academy, stressing its role in training future maritime logistics and port managers for Georgia’s Black Sea transit ambitions. Energy Security Probe: Georgia’s security service opened a sabotage investigation after consecutive nationwide outages, keeping the focus on grid resilience and industrial risk.

EU Sanctions & Energy Security: The EU’s 21st sanctions package targets Russia-linked energy assets in Georgia, including Inter RAO (indirect owner of Telasi) and the Kulevi refinery, with Georgia’s National Bank saying banks will keep servicing Telasi in lari to protect critical power delivery. Power & Grid Risk: Georgia’s State Security Service is investigating weekend nationwide blackouts as possible sabotage after outages hit Tbilisi and other cities, disrupting metro and water supply. Oil Refining Pressure: EU measures also move against Russian crude processing in Georgia, with Black Sea Petroleum previously signaling a pause in Russian refining to comply with the new restrictions. Industry & Infrastructure: Georgia’s energy storage push continues with Georgia Power’s new Moody Battery Facility, while local infrastructure work is underway in the region. Media & Access: Transparency International Georgia says Georgian Dream’s parliamentary accreditation rules are being used to restrict critical journalists, revoking or limiting access for up to 15 media representatives. Culture & Tourism: Georgian trio Mandili lands four Bulgaria concerts starting July 28, boosting cross-border cultural demand.

Energy & Sanctions: The EU’s 21st sanctions package added Russia’s Inter RAO, indirectly tied to Georgia’s Telasi and hydropower assets, raising compliance questions even as the National Bank of Georgia says banks will keep servicing Telasi in lari to protect uninterrupted power supply. Power Reliability: Georgia’s State Security Service is probing the nationwide blackouts from 24–25 July, including whether sabotage was involved, after outages disrupted metro and water services. Oil Refining Pressure: Brussels also sanctioned Georgia’s Kulevi refinery for Russian crude links, with the company previously signaling a pause in Russian refining to meet commitments. Grid Investment: Georgia Power cut the ribbon on the 49.5MW Moody Battery Facility, aimed at boosting grid reliability and supporting solar integration. Ports & Logistics: Georgia chose a fully state-owned “landlord port model” for Anaklia Deep Sea Port, keeping core infrastructure under state control while inviting private terminal operators. Tourism & Culture: Georgian trio Mandili will play four concerts in Bulgaria, while Plovdiv hosts the 30th International Folklore Festival featuring a Georgian ensemble. Local Business Regulation: Georgia delayed key single-use plastic food packaging restrictions to give businesses more time, pushing some bans into 2027 and beyond.

Energy Security & Grid Stability: Georgia’s State Security Service opened a sabotage probe after nationwide power outages hit Tbilisi and multiple regions in two days, with authorities citing repeated disruption of critical infrastructure and promising staged updates. EU Sanctions & Georgia’s Energy Links: The EU’s 21st Russia package added Inter RAO (75% owner of Telasi) and tightened pressure on Russian-linked energy and crypto networks, while Georgia’s Kulevi refinery faces a six-month deadline to stop Russian oil processing. Electricity Market Pressure: Opposition claims crypto mining in Georgia consumes about 6% of electricity and strains the grid, arguing preferential terms keep “parasitic” operations afloat. Ports & Trade Logistics: Georgia moved Anaklia Deep Sea Port to a fully state-owned “landlord port model,” aiming to attract multiple terminal investors without transferring core infrastructure ownership. Regional Energy Corridor Shift: SOCAR took over operatorship of the BTC pipeline from BP, reshaping management of a key South Caucasus energy route. Tourism & Consumer Economy: Tbilisi’s $150m airport expansion (TAV) targets capacity growth to 10m passengers by 2028, while restaurants report 20–25% fewer visitors amid weather and shifting travel patterns. Business & Branding: Starbucks entered Georgia via Kuwait’s Alshaya Group, highlighting how Arab capital is underwriting Western consumer franchises. Environment Regulation: Georgia delayed bans on single-use plastic food containers/cups to 2027 and pushed other plastic drink restrictions further out after consultations with business. Climate Governance: Covenant of Mayors – East marked 15 years of local climate action across the Eastern Partnership, including Georgia.

Energy Security: Georgia’s State Security Service has opened a criminal probe into consecutive nationwide power outages, citing suspicions of sabotage under Article 318, as officials still haven’t disclosed the technical causes. Grid Disruption: A second major blackout hit Saturday morning, leaving Tbilisi and other key cities without power and disrupting metro, rail, and water pumping, with restoration already underway in some areas. EU Sanctions Pressure: The EU adopted its 21st Russia sanctions package, expanding hits on energy, finance and crypto, including measures targeting Georgian-linked crypto platforms and the Kulevi oil refinery over Russian crude processing. Crypto vs. Power Debate: Opposition figure Roman Gotsiridze renewed calls to ban crypto mining in Georgia’s free industrial zones, arguing the sector consumes about 6% of electricity and strains the grid. Aviation Investment Interest: Georgia’s economy minister says Singapore’s Changi has expressed interest in the Vaziani airport operator tender.

Energy Security: Georgia’s State Security Service opened a criminal probe into the countrywide blackouts of July 24–25, citing sabotage suspicions under Article 318 after repeated nationwide outages left Tbilisi and other regions without power and disrupted metro, rail and water pumping. EU Sanctions: The EU added Russia’s Inter RAO to its 21st sanctions package, with indirect links to Georgia’s power assets Telasi, Telmico and the Khrami hydro plants, while also extending transaction bans to crypto platforms tied to Georgia in the broader Russia/Belarus measures. Crypto & Power Debate: Opposition figure Roman Gotsiridze renewed calls to ban crypto mining in Georgia’s free industrial zones, arguing the sector consumes about 6% of electricity and strains the grid. Infrastructure & Water: In Dalton, a public meeting set for July 30 will discuss a $10m loan-backed plan to replace aging drinking-water pipes—an example of how utilities are pushing faster upgrades to cut leaks.

Power & Security: Georgia’s State Security Service opened a criminal probe into the July 24–25 nationwide blackout, citing sabotage under Article 318, after repeated emergency outages left most of the country without electricity and disrupted metro, rail, and water pumping in Tbilisi. Energy Grid Stress: A second major outage hit less than 30 hours after the first, with official causes still not disclosed and the investigation ongoing. Crypto vs. Grid: Opposition figure Roman Gotsiridze renewed calls to ban crypto mining in Georgia’s free industrial zones, arguing the sector consumes about 6% of electricity and strains the system while benefiting from preferential terms. EU Sanctions Pressure: The EU adopted its 21st Russia sanctions package, extending measures that include Georgia-linked crypto platforms and targeting the Kulevi refinery over Russian crude processing. Aviation Deal Talk: Georgia’s Economy Ministry says Singapore’s Changi is interested in the tender for operating the new Tbilisi Vaziani international airport.

Power Crunch in Georgia: A nationwide outage left large parts of the country without electricity, halting the Tbilisi Metro and disrupting Georgian Railway services; GNERC has opened an investigation into the July 24 system-wide failure. Grid Pressure from Crypto: Opposition figure Roman Gotsiridze says crypto mining consumes about 6% of Georgia’s electricity and argues preferential tax and power terms are distorting the energy sector. EU Sanctions Hit Georgia’s Energy and Crypto: Georgia’s Foreign Ministry regrets the EU’s 21st sanctions package listing the Kulevi oil terminal and extending transaction bans to crypto platforms linked to Georgia; the EU also targeted Russia-linked crypto networks and shadow-fleet shipping. Workplace Safety: A worker died after falling at a Tbilisi construction site; police launched a probe under safety-rule violations. Food and Exports: Georgia’s ready-made sauce exports jumped 59% in June, while cherry exports to Russia rose and peach shipments fell. Aviation Deal Interest: Georgia’s economy minister says Singapore’s Changi operator expressed interest in the Vaziani international airport tender.

Energy Reliability: Georgia faced a nationwide blackout early July 24 (around 12:10 a.m.), with power also cut in Abkhazia; GNERC has opened an investigation into the electricity-system accident and says it will have full access to data from regulated companies. EU Sanctions on Georgian Industry: The EU’s 21st Russia sanctions package adds Georgia’s Kulevi oil refinery to a transaction ban regime with a six-month grace period, while also extending crypto transaction restrictions to 14 crypto service providers operating in Georgia and other jurisdictions. Crypto Compliance Pressure: EU measures also introduce a new tool that can trigger broader third-country bans on crypto-asset services tied to sanctions evasion, raising compliance risk for Georgian-linked platforms. Regional Trade & Logistics: Kazakhstan and Uzbekistan are planning to boost Uzbek freight through Kazakh Caspian ports Aktau and Kuryk, reinforcing the Middle Corridor route that runs via Azerbaijan and Georgia. Power Market Shock: Kazakhstan’s oil output fell sharply after CPC halted loadings at its Black Sea terminal, highlighting how disruptions ripple through regional energy supply chains. Local Industry Talent: RMG held its 2026 scholarship awards and industrial tour for selected students, spotlighting mining and copper enrichment operations in Georgia.

EU Sanctions Georgia-Linked Crypto and Oil: The EU approved its 21st Russia sanctions package, adding transaction bans on 14 crypto service providers operating in Georgia and targeting 94 banks/financial institutions, alongside new measures tied to Russia’s energy and military-industrial base. Kulevi Refinery Deadline: In a related move, the EU included Georgia’s Kulevi oil refinery in the same package, giving it a six-month grace period to stop processing Russian oil before restrictions kick in. Power Crisis Hits Georgia: A nationwide blackout struck Georgia early July 24, cutting electricity across most regions and suspending Georgian Water and Power pumping stations; Abkhazia later reported restoration. Energy Disruption Ripple: Kazakhstan’s oil output fell about 21% after CPC halted loadings at its Black Sea terminal, sharply reducing Tengiz production—another reminder of how shipping chokepoints and pipeline bottlenecks can quickly hit regional supply. Industry Talent Pipeline: RMG held a ceremony for 25 scholarship winners, with students touring the Madneuli quarry and a copper enrichment plant as Georgia’s mining and engineering talent pipeline gets a boost. Transport Investment Watch: A new Eurasian Development Bank report puts ongoing/planned Eurasian transport corridor projects at $345B, with Georgia included in the cross-border network map. Construction Updates: Plans surfaced for an HPP and data center near the Mtkvari River in Tbilisi and for a Batumi–Sarpi tunnel to start soon, though one contract still isn’t signed.

Logistics & Trade: Georgia and Kazakhstan are testing an e-permit system for international road freight, while Azerbaijan and Georgia have launched digital freight permits to streamline cross-border transport—another push to keep the Middle Corridor moving despite regional security risks. Energy & Sanctions: The EU’s 21st sanctions package adds the Kulevi refinery to a transaction ban tied to Russian oil processing, with the restriction set to start in six months; the EU also pauses the oil price cap adjustment until July 2027. Infrastructure: Tbilisi has started the full rehabilitation of Rustaveli Avenue (up to 50 million GEL), replacing underground utilities and upgrading lighting, with works due to finish by end of November. Industry & Food: Georgia exported 10,700 tons of fruit and vegetable juices worth $16.6m in Jan–Jun 2026, up sharply year-on-year; food producers also face tighter enforcement, with the Food Agency halting unregistered pickle production in Tbilisi. Business & Investment: OpenAI plans a 3.2 GW AI data centre campus in Georgia, promising commitments on electricity costs, water use, and community benefits. Tourism & Social Climate: Analysts say a Kakheti incident involving Russian-speaking tourists is unlikely to dent overall Russian tourist flows to Georgia, though it highlights tensions in parts of society. Ports & Finance: Batumi’s noise enforcement fined 24 entities for exceeding limits during the tourist season.

Infrastructure Upgrade: Tbilisi City Hall has started the full rehabilitation of Rustaveli Avenue, restricting traffic on Rustaveli Avenue and part of Merab Kostava Street while it replaces underground water, sewage, drainage and gas networks, moves overhead wires underground, upgrades sidewalks and road infrastructure, and installs new LED lighting; the works are due to finish by end-November, with a budget of up to 50 million GEL. Trade & Finance Diplomacy: PM Irakli Kobakhidze met Singapore’s political leaders and nearly 30 fintech firms during a visit aimed at investment, trade, transport and tourism, with talks also focused on deepening cooperation with Singapore’s financial centers and investment funds. Regional Logistics & Energy Context: Analysts discussed how Greater Caucasus transport, energy and digital networks are being reshaped by competing corridors and standards, with the Middle Corridor and TRACECA highlighted as key routes for cargo diversification away from Russia. Agribusiness Signals: Georgia’s food and beverage imports from Azerbaijan rose 63% in the first half of 2026, reaching $34 million, pointing to growing bilateral agricultural trade. Cross-border Freight Tech: Azerbaijan and Georgia launched an electronic permit system for international road freight transport, aiming to streamline cross-border logistics. Energy Cooperation: Azerbaijan increased natural gas exports to Georgia in early 2026, underscoring continued energy interdependence.

Azerbaijan–Georgia Trade & Food: Georgia imported $34m in food and beverages from Azerbaijan in Jan–Jun 2026, up 63%, highlighting a fast-growing agri link. Energy Flows: Azerbaijan also boosted natural gas exports to Georgia in the first five months of 2026, underlining the energy partnership. Cross-Border Logistics Digitized: Azerbaijan and Georgia launched an electronic permit (e-permit) system for international road freight, completing integration and moving from pilots to full rollout with an initial batch of 3,000 permits. Food Industry Export Momentum: Georgia’s ready-made sauce exports jumped 59% in June, reaching 188 tons worth $490k, with Russia, EU markets, the US, Azerbaijan and Israel as key buyers. Food Safety Enforcement: Georgia’s National Food Agency halted an unregistered pickle production facility in Tbilisi after inspectors found hygiene and infrastructure violations, fined the operator, and suspended production. Regional Transport Push: Turkmenistan and Georgia reaffirmed plans to expand transport cooperation around the CASCA+ corridor and rail-to-port throughput.

Food Safety Crackdown: Georgia’s National Food Agency suspended an unregistered pickle plant in Tbilisi after inspectors found hygiene and disinfection failures plus missing registration, fining the operator and halting production. Rural Economy: New data shows Georgia’s rural households fell 25.5% from 2014–2024 (to 476,679), driven by out-migration, aging, and farm consolidation, even as the number of agricultural enterprises rose. Green Logistics & Ports: DP World secured a €25mn EBRD loan (with EU and national support) to electrify Romania’s Constanta South Container Terminal, cutting emissions and boosting shore power for vessels—relevant for Black Sea–Georgia trade flows. Energy Transit Under Strain: Tanker attacks near the CPC terminal have disrupted Kazakh oil exports; CPC reportedly stopped accepting crude as storage filled, while Ukraine denies involvement in drone strikes. Regional Trade Facilitation: Georgia and Azerbaijan launched digital e-permits for international road freight, aiming to streamline cross-border transport. Environment Cooperation: Tbilisi hosted the Caucasus Eco-Corridors Fund forum to advance transboundary landscape conservation with Georgia, Armenia, and Azerbaijan.

Georgia–Azerbaijan Trade & Logistics: Georgia and Azerbaijan launched a bilateral electronic permit exchange for international road freight, letting carriers use e-permits via one online system; the Land Transport Agency says it cuts paperwork and speeds cross-border processing, with full rollout planned for 2027. Regional Connectivity: Azerbaijan’s cargo route planning is also getting a boost as the Zangezur corridor is expected to shorten distances, reduce border crossings, and lower logistics costs for shipments to Europe. Port & Trade Links: Georgian Post signed a cooperation agreement with Cainiao/Alibaba’s logistics platform, signaling deeper e-commerce logistics integration. Energy & Transport Pressure: Rising diesel prices are squeezing Georgia’s trucking industry, with the Georgia Trucking Association warning higher fuel costs could feed into broader supply-chain and consumer prices. Cross-border Economic Signals: Georgia earned $59.5m from visitors from Azerbaijan in Q2, while Georgia exported locally produced goods worth $76.9m to Azerbaijan in Jan–Jun (+10.7%). Industry Finance: TBC and FMO closed a landmark USD 210m syndicated financing deal to upgrade treasury infrastructure.

Cross-Border Logistics: Georgia and Azerbaijan launched a bilateral e-permit exchange for international road freight, moving permit handling into a single online system and aiming for full digital rollout in 2027. E-commerce Supply Chains: Georgian Post signed a cooperation agreement with Cainiao (Alibaba’s logistics platform) to build a regional transit and distribution network for cross-border e-commerce across Central Asia and beyond, positioning Georgia as a mail-and-cargo hub. Industrial Costs Watch: Georgia’s Producer Price Index for industrial products fell 0.8% month-on-month in June but rose 5.9% year-on-year, with mining/quarrying and manufacturing easing while electricity and utilities increased. Trade Flows: Azerbaijan imported $76.9m of locally produced Georgian goods in Jan–Jun, up 10.7%, keeping Georgia among Azerbaijan’s top export sources. Finance for SMEs: Microbank Crystal secured a $20m senior loan from FMO, with 20% earmarked for green finance and support for MSMEs. Energy Context: Europe’s gas market faces renewed risk as Gulf tensions push LNG and gas prices higher, keeping pressure on regional energy costs.