Georgia at a Crossroads
On the eve of one of Georgia's largest natural wine events, Zero Compromise, large protests rock Tbilisi. What happens to Georgia's wine scene? Will it survive as a vibrant international destination for natural wine lovers? Let's take a quick look at the issues here and what it may mean for exporters and wine lovers of Georgian wine in the future.
The Law
Georgian lawmakers have tentatively approved a controversial "foreign influence" bill, sparking fresh street protests against the legislation criticized for mirroring a repressive Russian law. The "Transparency of Foreign Influence" legislation compels civil society organizations with foreign funding to register as "organizations carrying out in the interests of a foreign power." Any organization within Georgia that receives funds of over 10% will be classified as a foreign agent.
When Russia invaded Ukraine in 2022, Georgia refrained from joining anti-Russian sanctions and has not openly criticized Moscow for its actions in Ukraine. In response, Moscow reinstated direct flights between the two countries and abolished visa requirements for Georgian nationals imposed in the early 2000s.
The East v West battle is now fully integrated into Georgian politics. In April 2023, a nationwide poll by the International Republican Institute found that 89 percent of Georgians support joining the EU, the highest number recorded for years. Georgia is in a very precarious situation, being on Russia's doorstep and with the EU being bogged down in Ukraine. With the appetite for war amongst the EU population dwindling, it’s perhaps understandable that the Georgian governing party does not want to upset Russia for the time being.
The inevitable sanctions on Georgian exports loom as Georgia becomes a vassal state of Russia; it's a matter of when, not if.
The government is perceived as pro-Russian. The EU, which has granted Georgia candidate status, "strongly condemned" the violence and urged the government to respect the right of peaceful assembly.
Georgia's president, Salome Zurabishvili, who is at odds with the ruling party, condemned the move as "against the will of the population." She described it as "a direct provocation — a Russian strategy of destabilization." "I am heartbroken to hear Ivanishvili’s vision for Georgia’s future," said Gabrielius Landsbergis, Lithuania’s foreign minister.
Baia’s wine and Isabelle Legeron at RAW New York in 2023
Many regard Georgia as the birthplace of Natural wine, an industry that is in full flow. Isabelle Legerons Raw Wine fairs has quite a large Georgian representation throughout the world. Georgiasn wine exposure to the west onlly really changing in the 2000’s as trade opened up after the Collapse of the USSR.
Georgian Wine Exports 2023
Georgia earned $217,303,000 from wine sales in the first ten months of 2023. Natural grape wines ranked third among the top ten export goods.
The top ten export destinations for Georgian wine are as follows:
Russia – $144 million, 53,547 tons
Poland – $11.7 million, 4,652 tons
Ukraine – $11.6 million, 4,158 tons
China – $9.4 million, 2,632 tons
Kazakhstan – $8.1 million, 2,599 tons
Belarus – $6.2 million, 2,177 tons
USA – $4.2 million, 680 tons
Germany – $3.2 million, 876 tons
Latvia – $3.2 million, 948 tons
Lithuania – $1.8 million, 547 tons
Russia stands as Georgia's second-largest trading partner. In 2022, trade turnover between the two countries amounted to $2.5 billion.
Recent customs data from the Trade Data Monitor platform reveals that Georgia's trade volume with Russia has surged by nearly 22 percent since Moscow's full-scale invasion, allowing it to bypass imposed sanctions.
There's a growing likelihood of the EU imposing comprehensive sanctions and an embargo on Georgian goods in the near future.
The EU is currently deliberating its 11th round of sanctions against Russia, contemplating unprecedented measures targeting nations maintaining business ties with Moscow.
Let's hope that the predominantly left-leaning natural wine drinkers and enthusiasts refrain from boycotting Georgian wine due to the political support for Russia, as the populace does not endorse this stance. Please support Georgian wine and its farmers wherever you are; grab a bottle and show your support.
Sources
https://thegrapereset.com/natural-wine-events/zero-compromise
