About Civil.ge
Eng | Geo | Rus
Last updated: 10:55 - 1 May.'18
Russia Targets Borjomi in Trade War with Georgia
/ 5 May.'06 / 17:51
Civil Georgia

Russia’s decision to ban the import of one of Georgia's most prominent export – Borjomi mineral water – five weeks after banning the import of Georgian wine, was not a big surprise amid Russia’s trade war with Georgia, officials in Tbilisi say.

The Russian consumer protection agency said it will revoke Borjomi’s safety certificates starting from May 7; meanwhile the agency instructed Russia’s customs service to prevent the import of Borjomi, citing the product’s failure to meet standards.

“The reason for this very difficult decision was the fact that an inspection carried out recently in the regions - especially in the Moscow region - showed that these waters, which are being advertised as 'Borjomi' water, do not, in reality, correspond to the specifications of this water,” Genady Onishchenko, the Russian chief sanitary inspector, told reporters.

“Out of the 69 samples of this mineral water [Borjomi] inspected in April in the Moscow region 68 failed to meet standards,” Onishchenko said in a letter to the Russian customs service on May 4.

Georgian Glass & Mineral Waters Company (GGMW), which produces Borjomi, has already denied these allegations as groundless.

Georgian Prime Minister Zurab Nogaideli said Russia’s recent ban is “a politically-motivated decision.”

“Although we are working towards re-entering the Russian market, we should work more actively towards entering new markets,” MP Nogaideli, who is currently visiting London for the business forum Invest in Georgia, told Imedi television on May 5.
“They are fighting against everything that is Georgian, which has nothing to do with fighting against falsification,” Mikheil Svimonishvili, the Georgian Agriculture Minister, said on May 5.

Parliamentary Chairperson Nino Burjanadze said Russia’s decision “was not a surprise.”

“This [ban of Borjomi] is yet another argument in favor of those people who demand Georgia’s withdrawal from the CIS [Commonwealth of Independent States],” Burjanadze told reporters on May 5.

President Saakashvili hinted on May 2 that Georgia may quit the CIS and instructed the government to estimate the possible economic consequences of withdrawal.

This ban of Borjomi on the Russian market is less painful for Georgia than the banning of wine, experts say.

The amount of mineral waters (all brands, including Borjomi and Nabeghlavi) exported to Russia is less than that of the export of Georgian wine – USD 23.6 million vs. USD 63 million in 2005, respectively.

On the other hand, the Georgian mineral waters’ foreign markets are more diversified than those of Georgian wine, which is mainly exported to Russia – up to 87% in 2005.

Last year the Georgian Glass & Mineral Waters Company (GGMW), which produces Borjomi, exported USD 22.1 million worth of Borjomi to Russia, according to the Georgian Department of Statistics (GDS). USD 7.7 million worth of Borjomi was exported to Russia during the first three months of 2006, according to the GDS.

GGMW claims that 50% of its entire production goes to the Russian markets, while 17% goes to Ukraine, 15% is consumed in Georgia and the remaining 15% goes to 25 other countries.

GGMW is one of the largest Georgian companies which turned into a multinational last year after it established a holding with the leading Ukrainian mineral water companies - IDS and Oscar Mineral Water Plant in Morshyn.

Latest News
01 May.'18 10:55
We Have Moved to a New Platform
Direct Your Bookmarks to https://civil.ge.
29 Apr.'18 03:54
Ruling Party Candidate Wins MP By-Elections
Givi Chichinadze will represent Vani and Khoni single-mandate constituency in the Parliament of Georgia.
28 Apr.'18 09:40
Polls Open for Vani and Khoni MP By-Elections
48,123 voters are eligible to cast their ballots in Vani and Khoni single-mandate constituency.
27 Apr.'18 17:23
State Dept’s Europe Affairs Point Man to Visit Tbilisi
Wess Mitchell will meet senior government officials and address the NATO-Georgia Public Diplomacy Forum.
27 Apr.'18 13:45
In Quotes: Georgian Politicians on Ex-PM Bidzina Ivanishvili’s Comeback
Bidzina Ivanishvili will be approved as the Georgian Dream party chairman at the upcoming convention.
26 Apr.'18 18:15
SG Jens Stoltenberg: Georgia NATO’s ‘Very Close’ Partner
The NATO Secretary General says Foreign Ministers meeting tomorrow will recognize the country’s progress.
26 Apr.'18 14:24
Ex-PM Ivanishvili to Chair Georgian Dream Party
Prime Minister Giorgi Kvirikashvili said Ivanishvili was ‘best equipped’ to add new dynamism to the party.
26 Apr.'18 11:12
Lawmaker Proposes Criminal Liability for ‘Insult of Religious Feelings’
The parliamentary human rights committee decided to set up a working group for scrutinizing the draft law.
25 Apr.'18 17:21
New Abkhaz Government Head Appointed
Gennady Gagulia has served as the Abkhaz “prime minister” twice - in 1995-1997, and 2002-2003.
25 Apr.'18 14:43
Watchdog Improves Georgia’s Press Freedom Ranking
None of the countries of the former Soviet Union (except the Baltics) are ranked ahead of Georgia.

About Civil Georgia
Civil.Ge © 2001-2021, Daily News Online
Registered office: 2 Dolidze Str, 4-th Floor.