The volume of Russian fuel imports to Georgia has reached a record high. Part of the opposition has arisen that some firms use it for export to third countries. Expert opinion is divided on this issue.
According to the results of the first five years, according to the data of Gruzstat, the Russian Federation has become a selective sector of oil products trade: Georgia purchased about half a million tons of fuel in total, including about a third (140 thousand tons) from the Russian Federation. Remarkable growth dynamics: in May alone, Russian oil imports increased by 70% compared to the case. According to the results of five months, in comparison with the same period of the year, the volume of imports from Russia increased by 45%.
By country, the volume of imports of petroleum products corresponds to the following:
- Russia – (138,663 thousand tons) 28%;
- Romania – (103,889 thousand tons) 21%;
- Turkmenistan – (85,389 thousand tons) 16.5%;
- Bulgaria – (76,409 thousand tons) 15.5%;
- Azerbaijan – (56,507 thousand tons) 9.7%.
The recent history of open fuel sanctions in the port of Batumi has made a lot of noise about how Georgia complies with the management regime. choice of import options, does the company redirect fuel for re-export to third countries?
Experts do not have a common opinion on this issue. Head of Logistics at Geo Gulf Trans Giorgi Dzhakhaya believes that, despite the fact that Georgia has not joined the anti-Russian sanctions, the massive re-export of sanctions cargo due to the big problem of Georgia
“Imported fuel is not re-exported to third countries, it is technically difficult. Yes, Georgia did not join the sanctions, but the accession of certain port companies did not miss the sanctions oil and oil products, since they assumed obligations after the start of Russian aggression. I am convinced that even if the story did not get into the media, that tanker would still not be able to unload, since the sanctions cargo is easy to calculate. Now the lion’s share of Russian fuel comes by rail through Azerbaijan, and it is impossible to resell it under the guise of Georgian fuel, since Georgia does not produce it. I do not rule out that sanctioned fuel may be used for consumption, but the Georgian market is extremely small, which will not affect the sanctions against Russia in any way. I think the growth in imports is due to the fact that Russian fuel is cheaper than European.”
In turn, the managing partner of the audit firm Kreston Georgia David Papiashvili It is not formed that persons/companies appear under sanctions, several schemes can theoretically be used to transport goods, including heavy fuel through Georgia.
“I can directly say that under the current legislation, powers can be circumvented, for example, by creating resident companies by persons subject to powers, or those associated with legal entities subject to recovery. These firms can receive the status of a free industrial zone enterprise and be exempt from taxes, or the status of a separate trading company without a profit tax. This opportunity is not closed to Russian citizens. There are many schemes, and there are cases of precedents. In the first months, the appeal of Russians to our audit firm was very high. They directly defend that the search for a loophole opens companies in Georgia, transports goods in transit and does not transport taxes. Due to internal policy, our company does not serve Russian citizens, but these individuals knew about the advantages of a separate trading company and a free industrial zone enterprise. This is due to the fact that they can use this loophole, ” – David Papiashvili told BMG.
The issue of possible transportation of sanctioned cargo through Georgia was touched upon today by the US Ambassador to Georgia Kelly Degnan. According to her, the Georgian government takes the problem of sanctioned cargoes seriously. She told reporters that such properties are highly sensitive to increased consumption by the Customs Revenue Service and ministries.
“We have very good, fast interaction on such issues. It is very important that the government takes this problem seriously. We are very attentive to any attempts to achieve recognition and continue to do so. Kelly Degnan said.