Is Georgia acting as a proxy for Russia to force Armenia into paying reparations?
Russia's influence over the food and beverage industry is raising concerns among Armenian exporters, as they face increased scrutiny and delays when transporting alcoholic beverages through Georgia en route to Russia.
In recent weeks, exporters have reported lengthy transit delays, prolonged customs inspections, and spontaneous laboratory testing, leading to significant financial losses and threatened access to crucial export markets in Russia and the Baltic states.
On May 13, representatives of several Armenian alcohol producers staged a protest outside the Georgian Embassy in Yerevan, expressing concerns that their shipments, not intended for sale within Georgia, were being unnecessarily tested.
Hayk Shahnazarian, owner of one affected company, stated, "We're now paying $100 a day for every truck stuck in Georgia. But that's not our biggest loss. We could lose a market because of this and find ourselves on the brink of bankruptcy."
Armenia's Economy Minister, Gevorg Papoyan,/addressed the issue publicly on May 15, stating that "the reasons [for the delays] are not clear to us." He also indicated a planned visit to Georgia to resolve the matter personally.
However, Papoyan's visit has not taken place yet. A week after his comments, he informed reporters that Armenia was engaged in "very active discussions" with Georgia, but that the situation was unfolding in a way that made his visit unlikely to have any impact.
Some in Yerevan suspect Georgian officials might be acting at Russia's behest to disrupt Armenian exports. Over the past two years, the geopolitical dynamics between Armenia and Georgia have shifted: while Armenia has tried to distance itself from Moscow and draw closer to the United States and European Union, Georgia has shunned Western values and revived ties with Russia.
Russia has a history of wielding trade leverage to punish perceived geopolitical disobedience. For instance, in 2006, a Georgian wine embargo proved detrimental to the economy when then-Georgian leader Mikheil Saakashvili pursued policies aiming to qualify Georgia for EU and NATO membership.
Georgian authorities, however, maintain that nothing unusual is happening with customs procedures. Representatives of the Georgian Revenue Service stated that "standard customs procedures were being followed."
On May 15, Russian newspaper Izvestia published a report on a meeting between Georgian and Russian business representatives in Moscow. The discussion allegedly touched on concerns over the quality of Georgian products, including cognac. The article mentioned plans for a new laboratory in Georgia and tighter control over what is being transported through the Upper Lars checkpoint, a major transit route for Armenian exports.
It is worth noting that the Izvestia report did not mention Armenia or its products specifically. However, it coincides with the ongoing delays at the Georgian border. Allegations of quality shortcomings surrounding Armenian beverages are nothing new in the Russian market.
There has been a significant decline in cross-border traffic from Armenia, with land transit through Georgia dropping by 20.3% in April compared to the same month in 2024, and total cargo volume declining by 30.2%. The border testing procedures, including on-the-spot laboratory checks, have reportedly been in place for approximately a month and a half.
- Concerns about Russia's influence over business policy and legislation are rising, as Armenian exporters face delays and scrutiny with their food and beverage shipments through Georgia, potentially impacting business in Russia and the Baltic states.
- Amidst these challenges, Armenia's Economy Minister, Gevorg Papoyan, has addressed the issue publicly, stating that the reasons for the transit delays are unclear, and he plans to visit Georgia to resolve the matter personally.
- Some in Yerevan suspect that Georgian officials might be acting under Russia's behest, disrupting Armenian exports, as geopolitical dynamics between Armenia and Georgia have shifted over the past two years.
- Russia has a history of using finance and trade leverage to influence political affairs, as shown by the 2006 Georgian wine embargo, aimed at pressuring the Georgian government's pro-Western policies.
- Recent news suggests that Georgian officials, in a meeting with Russian business representatives, discussed plans for tighter control over what is transported through the Upper Lars checkpoint, a major transit route for Armenian exports, due to concerns over the quality of Georgian products, including cognac – a matter that could indirectly affect Armenian exports and business relations with Russia.
