Politico-economic situation in Georgia
With the outbreak of the Ukraine war, hopes for a rapid recovery of international tourism and the Georgian economy were dashed. Before and especially during the pandemic, Russia and Ukraine were among the most important target markets for Georgian tourism.
But the Ukraine war also led to further polarization and destabilization of the political system in domestic politics. After the outbreak of the Ukraine crisis, the incumbent ruling party, the Georgian Dream, announced that Georgia would not participate in the economic sanctions against Russia so as not to further strain the already tense relationship with Russia. The decision prompted the recall of the Ukrainian ambassador in Tbilisi and led to large street protests and calls for the resignation of acting Prime Minister Irakli Garibashvili. The latter reacted in a political about-face by submitting an application for EU membership to Brussels.
At the same time, since the invasion of Ukraine, thousands of Russians, including many opposition figures, have fled to Georgia to escape suffocating Western sanctions and a feared escalation of repression by the authorities. This influx is causing mixed feelings among many Georgians. Thousands, for example, have signed an online petition calling on the government to introduce a visa regime for Russian nationals and stricter immigration rules.
BPN activities in Georgia
Despite all these events, BPN Georgia has started very well into 2022. By the beginning of June, a total of 10 final selections had been made and 11 contracts signed. Among other things, thanks to the cooperation with the base bank, which is beginning to bear fruit. We also got off to a good start in terms of seminars. Due to the persistently high Corona case numbers up to mid-March, primarily online events were held.
Challenges
The images from Ukraine bring back unpleasant memories of the 5-day war between Georgia and Russia in 2008 for both employees and BPN companies. The fear that Georgia is the next country on Putin's wish list is omnipresent. The general public mood is tense, which makes BPN's work on the ground more difficult.
