AGP Executive Report

Armenia–Energy Connectivity: Prime Minister Nikol Pashinyan says Yerevan is weighing electricity imports if needed, including from Azerbaijan, and is also discussing options with Georgia, Iran and Türkiye, with an EU-funded converter station being built on the Georgia border to support cross-border power flows. Georgia–Banking Flows: Georgia’s National Bank data show ruble-denominated deposits in Georgian banks jumped 32.9% in July to GEL 98.6m, as speculation about a new Russian mobilization and increased travel spur more transfers. Oil & Gas Security: Black Sea Petroleum says its Kulevi refinery has fully switched to non-Russian-origin crude oil as of Aug. 24, after feedstock diversification that began with Kazakh supplies and is expected to include Libya through 2027. Hospitality Leadership: Deborah Sivertsen, chairing the European Business Association Hospitality Committee in Georgia, highlights people-first leadership at Sheraton Grand Tbilisi Metechi Palace, signaling a push to shape the wider local hospitality sector. Regional Politics: Georgia’s Regional Development Minister Mamuka Mdinaradze resigns from politics, while Armenia’s parliament approves its 2026–2031 government programme with a stronger EU-facing agenda and peace/normalization priorities. Digital Business Tooling: Viral SEO launched an AI assistant that connects to Google Search Console and turns site data into plain-English, page-specific fixes for founders and business owners.

Real Estate & FDI: Ambassadori Island Batumi has signed an investment agreement with UAE developer HOLM Developments for a 140,000 sq m multifunctional complex, positioning the artificial-island project as a new magnet for foreign direct investment. Energy & Trade Routes: A Middle Corridor-focused analysis highlights how Kazakhstan’s uranium flows to Western customers increasingly rely on transit via Azerbaijan and Georgia, underscoring the corridor’s role in Europe’s energy security. Aviation Logistics: Etihad Cargo appointed Aviareps as Cargo General Sales Agent in Uzbekistan, aiming to expand freight sales after Etihad launched Abu Dhabi–Tashkent direct flights. Cybersecurity & Banking: Georgia Tech-linked research warns that Android banking apps are the most targeted malware category, with attackers able to bypass phone-based authentication and move money without user action. Urban Development: Tbilisi’s demolition of the modernist “Rike Tubes” arts complex has sparked public outcry over the city’s skyline and spending priorities. Regional Infrastructure: Armenia will reallocate 1.1 billion drams for North-South highway corridor works, including tunnels and supervision. Corporate Ownership: RFE/RL reports multiple Ivanishvili-linked companies shifted direct ownership from Luxembourg entities to his wife, Ekaterine Khvedelidze, amid offshore-transfer legislation.

Banking & M&A: Armenia’s Arins Group (via AGE S.A.) has signed to acquire Georgia’s Terabank and the Biltmore Tbilisi hotel, pending National Bank of Georgia approval; the deal could reshape Georgia’s financial sector and raises questions about external links. Energy & Trade Corridors: ADB will allocate $400m for modernization of border crossing points across Middle Corridor countries, while PMCG says the corridor needs private capital and stronger financial infrastructure to unlock faster trade growth between Azerbaijan, Georgia and Kazakhstan. Local Economy & Tourism: Georgia’s hotel numbers rose 4.5% in 2025, according to Geostat, as the country pushes tourism growth despite structural hurdles. Cross-border Finance: National Bank data shows Russian ruble deposits in Georgian banks exceed ₾98.6m, highlighting continued currency-linked flows. Legal/Business Climate: Tbilisi has fined a company behind Rustaveli Avenue construction for not working 24/7, a reminder that delivery and compliance remain key for major projects. Regional Security Context: Russia’s Zakharova renewed claims of support for occupied Abkhazia and Tskhinvali, keeping political risk in the background for investors.

Banking & Currency: Georgian banks’ ruble deposits climbed to ₾98.605 million in July 2026, up 48% year-on-year, according to National Bank data. Tourism & Hospitality: Geostat reports Georgia’s hotel numbers rose 4.5% in 2025, reaching 2,783 hotel-type establishments, with Adjara and Tbilisi leading. Regional Trade & Logistics: The Asian Development Bank plans a up-to-$400m financing mechanism to modernize border crossing points across CAREC countries, including Georgia, aiming to cut freight delays and costs. Business Climate in Adjara: Adjara’s government met local business representatives and the regional Chamber of Commerce to discuss investment, trade expansion, and support for entrepreneurs. Healthcare Reform: Georgia’s primary healthcare reform moves forward as the Health Minister met sector representatives on expanded services and a new age-based financing model. M&A in Finance & Real Estate: Armenia’s Arins Group agreed to acquire Georgia’s Terabank and the Biltmore Tbilisi hotel, pending National Bank approvals. Politics & Courts: Jailed ex-PM Irakli Garibashvili posted on Facebook explaining why he skipped a court hearing after new bribery allegations.

Banking & M&A: Armenia’s Arins Group has signed an agreement to acquire Georgian lender Terabank, pending approval by the National Bank of Georgia; Terabank is Georgia’s sixth-largest by assets. Ports & Trade: Poti port handled a record 404,760 TEU in Jan–Jul 2026 (+7% y/y), with July hitting a monthly high of 65,759 TEU, adding pressure to berth, yard and logistics capacity. Maritime Business: Batumi will host the Georgia International Maritime Forum 2026 on Sept 7–8, aiming to boost the Middle Corridor and regional maritime connectivity. Energy & Fuel Prices: Georgia’s retail fuel picture remains mixed in the latest U.S. GasBuddy reports, with regular averaging $3.74/gal statewide (week ending Aug 15) and local lows reported in multiple counties. Regional Policy: Armenia’s PM Nikol Pashinyan says the country is entering a “Fourth Republic,” outlining a 2026–2031 programme that includes applying for EU membership and reducing dependence on Russia. Security & Risk: Georgian authorities seized up to 33 kg of drugs worth about 6 million GEL, while separate reporting highlights cross-border criminal activity and the broader business risk from illicit markets.

Banking Ties: Armenia’s ambassador Ashot Smbatyan met Georgia’s National Bank head Natia Turnava to discuss expanding cooperation in financial and banking sectors. Maritime & Trade: Batumi will host the Georgia International Maritime Forum (GIMF 2026) on Sept 7-8, drawing about 400 delegates to spotlight the Middle Corridor, logistics connectivity and public-private partnerships. Power Sector Leadership: Georgia’s Ministry of Economy introduced David Vardiashvili as the new head of the Georgian State Electrosystem, replacing Vano Zardiashvili, as the operator’s management reshuffles. Defense Procurement Case: Prosecutors charged former PM Irakli Garibashvili with taking a large bribe tied to secret Ministry of Defense procurement, alleging tender manipulation and inflated prices in a medical equipment deal. Fuel & Energy Links: Reports on fuel supplies to Abkhazia highlight continued mutual dependence via the Inguri HPP, as social media and local drivers discuss supply and pricing pressures. Regional Business Climate: Azerbaijan set a 2030 tourism target of 3.8 million visitors, aiming to reverse a 2026 H1 decline and address structural hurdles in the sector.

Armenia’s 2026–2031 agenda: Prime Minister Nikol Pashinyan presented a five-year government action plan covering security, economic policy and democratic reforms, with a key focus on “institutionalizing peace” with Azerbaijan and boosting civil-society and business trade links. Tbilisi enforcement: Tbilisi City Hall fined Smart Solutions ₾5,000 total for failing to keep Rustaveli Avenue renovation work running 24/7, despite four separate penalties tied to the same breach. Georgia politics & justice: Ex-PM Irakli Garibashvili faces a new corruption charge in prison over alleged bribe-taking linked to a Gori Military Hospital tender, with his family calling it political persecution. Harvard funding cut: Georgia scrapped funding for Harvard’s Georgian Studies Programme, effectively ending the initiative after the government stopped support. Energy & cyber risk: Reports say Iranian-linked hackers temporarily shut down a UK power plant for four days, raising concerns for critical infrastructure security. Trade & regional connectivity: Etihad Cargo appointed AVIAREPS as its cargo sales agent in Uzbekistan, supporting commercial growth after Etihad launched passenger flights to Tashkent. Market ripple: S&P warns Russia’s expanded import restrictions could cut Armenia’s exports by about 2% of GDP, with summer-fall effects expected to intensify later in 2026.

High-Profile Court Case: Lawyer Mariam Gogoreliani says accused former State Security chief Grigol Liluashvili could testify at his next court hearing, adding the prosecution is finishing its examination before defence witnesses are questioned. Anti-Corruption Push: Prosecutors have brought a new charge against jailed ex-PM Irakli Garibashvili for allegedly taking a particularly large bribe tied to secret Defence Ministry procurements, with prosecutors citing GEL 750,000 and alleged losses up to GEL 7 million. State Sector Leadership: The Economy Ministry introduced Davit Vardiashvili as the new General Director of the Georgian State Electrosystem, outlining his prior roles across energy and public administration. Civil Society vs. Kremlin Narrative: More than 100 Georgian civil society figures and public figures signed a statement accusing Georgian Dream-linked groups of promoting Russian propaganda and increasing trade/financial/energy dependence on Russia. Regional Connectivity: Armenia’s PM Nikol Pashinyan detailed the TRIPP railway route, stressing economic stakes and investor concerns over a Russian-managed segment. Development & Resilience: The ADB launched an AI technical assistance project with Azerbaijan (also covering Georgia) to strengthen infrastructure resilience and disaster-risk adaptation. Local Economy & Services: Tbilisi public schools are undergoing major rehabilitation works ahead of the new school year, including yards, classrooms and bathrooms.

Energy & Sanctions: Georgia’s Kulevi refinery is starting to pivot away from Russian crude as EU sanctions tighten, with July imports of Kazakh oil marking a first step in diversifying feedstock ahead of a January 2027 deadline. Fuel Market Watch: Abkhazia’s motorists report higher gasoline prices after “Rosneft” shipped 960 tons of AI-92, but social media complaints suggest the supply boost may not fix shortages. Regional Security Cooperation: Ukraine and Kuwait are moving to deepen defense ties after Kuwait ratified a 2026 decree-law formalizing an agreement from 2018, focused on training and joint projects rather than equipment sales. Cyber Risk to Infrastructure: Iran-linked hackers shut down a UK power plant for four days, prompting new guidance to energy firms on strengthening cyber defenses—an issue that resonates for the region’s critical infrastructure. Public Health (Adjara): Adjara officials reviewed maternal and child health programs, citing 14 targeted initiatives funded with over 10 million GEL for the year. Elections in South Ossetia: South Ossetia’s CEC registered four candidates for the September 18 presidential vote after rejecting one bid, with claims of “simulation of competition” from excluded contenders.

Energy & Sanctions: Georgia’s Kulevi refinery is starting to shift away from Russian crude as EU sanctions tighten, with July imports of Kazakh oil marking a first step in feedstock diversification ahead of a January 2027 deadline. Fuel Prices in Breakaway Regions: Abkhaz drivers report sharp fuel price hikes after “Rosneft” shipped 960 tons of gasoline to the region, with social media users questioning whether supply will actually ease shortages. Cybersecurity & Critical Infrastructure: Iran-linked hackers reportedly shut down a UK power plant for four days, prompting new guidance to energy firms and raising concerns about attacks on electricity infrastructure. Elections & Governance: The Trump administration plans to deploy 1,000 “monitors” and potentially ICE personnel to polling places this November, with critics saying the move is meant to deter or discourage voting. US Immigration Policy: A US judge struck down Trump’s 75-country immigrant visa suspension as “contrary to law,” affecting applicants including Georgia and neighboring countries. Georgia-Related Research Funding: Harvard’s Georgian Studies Program has closed after Georgia’s education ministry refused to extend funding, citing a missing “agreed program.” Regional Trade: Azerbaijan’s oil exports to Bulgaria surged in Jan–July, while another Russian shipment to Armenia moved via Azerbaijan as transit flows expand.

US Immigration: A Biden-appointed judge in Manhattan struck down the Trump administration’s suspension of immigrant visas for nationals of 75 countries, ruling it was “contrary to law” and exceeded the authority of Secretary of State Marco Rubio; the decision affects Georgia among other countries. Georgia-EU Academic Funding: Harvard’s Georgian Studies Program has closed after Georgia’s education ministry refused to extend funding, citing the lack of an “agreed program” for the next phase. Energy & Trade: Georgia’s oil supply is starting to diversify: it imported Kazakh crude for the first time in July, while Russia still remains a major supplier; the shift is tied to EU sanctions and refinery economics. Security & Crime: Tbilisi police seized up to 4 kg of Alpha-PVP in a major drug operation, arresting a foreign citizen linked to an illegal sale plan. Regional Logistics: Azerbaijan and Georgia discussed customs cooperation as truck queues at border posts remain a live issue. Culture in Batumi: “Night Serenades 2026” has moved to Batumi, with concerts scheduled for Aug. 21, 23 and 25.

Russian Emigration: Interest in leaving Russia has nearly doubled since July as fears of another mobilisation grow, with Relokatz reporting requests rising from about 70 to 120 a day; popular destinations include Serbia, Armenia and Georgia. Tbilisi Security: Georgian police seized up to 4 kg of Alpha-PVP in Tbilisi in a drug trafficking case, with the drugs valued at about 1.5 million GEL. EU & Georgia’s Path: Commentary argues EU enlargement is back, but Brussels still needs “homework” on decision-making and funding rules; another piece says Georgia’s EU ties have been put into a coma and development support is shifting toward trade and investment. Harvard & Georgian Studies: Harvard’s Kartvelian Studies Program was suspended after Georgia and Harvard failed to agree on a new funded phase, with the education ministry citing missing program and budget details. Regional Trade & Transit: Reports say Russia-to-Armenia cargo is increasingly routed via Azerbaijan after transit restrictions were lifted, while Azerbaijan’s oil exports to Bulgaria surged 4.5-fold in Jan–Jul. Information & Politics: A Georgia-focused analysis claims Kremlin-friendly narratives are being “internationalized” through Georgia’s own media ecosystem, flipping the usual FIMI direction.

Energy & Trade Ties: Georgia’s fuel supply to occupied Abkhazia remains a flashpoint as authorities and companies trade accusations over tariffs, licensing and continued deliveries. Business & Regulation: Georgian authorities detained the owner of Marneuli’s Mamed Gas after a dispute with GNERC and SOCAR over petrol pricing and alleged illegal operations, underlining how energy regulation is hitting local operators. Cross-Border Logistics: Azerbaijan and Georgia border agencies reported live freight queues and measures to ease congestion, with Red Bridge seeing the biggest backlog on the Georgia line. Sanctions & Tariff Evasion: A new US White House report flags Georgia among countries accused of helping China’s “transshipment” schemes, raising the risk of diplomatic friction and tighter enforcement. Investment & Economy Data: Georgia’s foreign direct investment rose 19.3% in 2025 to $1.9bn, according to Geostat, keeping investor interest in focus. Local Economy & Tourism: Bainbridge’s Old Post Office rehabilitation and a new Marriott riverfront hotel in Georgia’s downtown spotlight how property upgrades are being marketed as jobs and footfall engines.

Abkhazia Fuel Supply: Georgia’s fuel shipments to Russian-occupied Abkhazia are still sparking backlash as shortages persist and residents report queues and higher prices, including a new batch of AI-92 gasoline tied to Rosneft with only part earmarked for station sales. Customs Cooperation: Georgia and Azerbaijan agreed to improve coordination at border checkpoints to keep international cargo moving smoothly, with plans for expanded talks to review measures. Corporate Moves: Rustavi Steel has sold its rebar production line to PM Metal, signaling a shift in focus for the Rustavi-based metallurgical group after earlier exits by Irakli Rukhadze from other assets. Civil Society vs. Georgian Dream Narratives: Georgian civil society issued a joint statement accusing the ruling Georgian Dream and affiliated groups of amplifying Russian propaganda ahead of the 18th anniversary of the 2008 war. Cybersecurity: A China-linked espionage campaign dubbed “SilkParasite” used Google Drive to hide malware traffic, with targets reportedly including Georgia among other regional states. FDI Snapshot: Georgia’s foreign direct investment rose 19.3% in 2025 to about $1.9bn, according to Geostat. Regional Trade: Georgia increased imports from Azerbaijan by 25%, while Armenia-Azerbaijan exports are said to be edging toward resumption “soon,” supported by infrastructure talks.

Georgia–Turkey Ties: Prime Minister Irakli Kobakhidze met Turkish Ambassador Mustafa Turker to deepen the strategic partnership, with talks also covering regional projects and trade/economic cooperation alongside a shared push for stability in the South Caucasus. Energy & Security in the Black Sea: Romania destroyed a marine drone near the Neptun Deep gas project, highlighting rising risks to critical energy infrastructure from drone and mine threats tied to the Ukraine war. Education & Household Costs: Georgia’s school uniforms for primary grades will go on sale from September 1, with set prices and an online ordering option plus cashback via banks for parents. Public Policy & Pensions: Opposition MP Tazo Datunashvili says Georgia’s accumulative pension reform has “collapsed,” arguing most savers receive only about 300 GEL annually and calling for urgent overhaul. Media & Culture: The Georgian National Film Center denied it could influence Locarno’s screening of “Tear Gas,” saying it did not grant consent because the final version was never submitted under its procedures. Regional Economy Watch: Georgia’s fuel deliveries to Abkhazia remain politically charged, with reports of shortages and limits at stations continuing to feed debate over supply routes and responsibility.

Fuel & Occupied Abkhazia: Georgian PM Irakli Kobakhidze says the government approved fuel shipments from Georgian-controlled territory to occupied Abkhazia under the occupation law, with about 680 tonnes delivered by Aug. 18 via Solidus LLC, arguing it’s meant to rebuild trust amid shortages and denying any Russia-military link. Trade Links: Georgia’s imports from Azerbaijan rose 24.8% in Jan–July to $416.1m, while exports to Azerbaijan edged up 2% to $408.6m, keeping Azerbaijan among Georgia’s key trading partners. Border & Migration Pressure: Reports say a possible new Russian mobilization scare is driving a record flow at Verkhni Lars, with more than 20,000 crossings in a day and long traffic jams. Regulatory/Compliance: Kyrgyz authorities identified Instagram job ads targeting abroad work without permit info, warning citizens to verify permits via migrant.kg. Healthcare & Business Tech: Codoxo will moderate a NAMPI 2026 session featuring Georgia’s DCH on using AI-generated leads to progress Medicaid fraud investigations. Corporate/Finance: Geostat reports Georgia’s FDI hit $1.9bn in 2025, up 19.3% year-on-year.