The Cost of Russian Sanctions for Georgia

The Cost of Russian Sanctions for Georgia

The Cost of Russian Sanctions for Georgia

The crisis in Ukraine will almost instantaneously affect trade and capital flows between Georgia, Ukraine, and Russia, experts predict. The effects will likely be negative and hit Georgia in a situation of economic recovery. Russia and Ukraine are among the top 5 destinations for Georgian produce, together absorbing about 14% of total Georgian exports in 2013. Georgian exporters, together with citizens who depend on remittances from these countries, will be the first who will feel the impact of the crisis in Russia and Ukraine. There is also expected to be an unpleasant consequence for the ever-increasing share of tourists coming to Georgia.