GEORGIA'S LEAVING THE CIS WILL NOT SURPRISE ANYONE

 

Caspian Energy Investor (CEI): Mr. Bezhuashvili, could you formulate today's basic principles of Georgia's foreign economy? Which countries are priority issue for Georgia today?

Gela Bezhuashvili, Foreign Minister of Georgia: Priorities of foreign economic policy reflect Georgia's intention to protect its economic interests and ensure full-scale integration with international economic processes. Thus, our foreign economic priorities represent the increase of the country's export potential and attraction of investments in order to maintain sustainable and dynamic macroeconomic growth and secure a decent place in the global transport and energy space, strengthen regional and transnational relations and cooperation with international organizations.

 I would like to note that Georgia, compared to other countries, is running liberalization process, including an overall privatization, which in turn significantly boosts the formation of competitive market and ensures the country's economic sustainability.

Georgian economic diplomacy will be thoroughly using those tools, instruments and opportunities arising from its membership in WTO in order to master and protect its relative advantages and interests in the world arena as much as possible.

At present Georgia is already using its preferential trade regimes with the EU, the USA, Canada, Switzerland, Japan and Turkey. The further Georgian export markets diversification calls for continuation of active talks in order to establish similar regimes with other large trade partners of Georgia.

Georgia is a member of free economic trade zone within GUAM (uniting Georgia, Ukraine, Azerbaijan and Moldova). Furthermore, we have a free trade regime with Armenia, Turkmenistan, Kazakhstan, and Uzbekistan. The similar agreement with the Russian Federation was suspended in a unilateral order by the latter for the reasons that did not depend on us.

Our efforts will be aimed at approval of similar mutual free trade agreements with the remaining CIS countries. The strategic importance is attached to talks on free trade agreements with Turkey, the USA and the EU.

One of priority issues of Georgia's foreign economy is attraction of foreign investments. Taking into consideration that Georgia lacks funds for major investment projects, the foreign capital attraction is a matter of special importance for the future development of country's economy. The most attractive sectors for investors in Georgia's economy are energy, transport, tourism, construction, processing industry, agriculture. In this context one should note at this stage Georgian government created quite a favorable investment climate, firstly in regulatory and contract base concerning capital investments, as well as direct, private and ‘portfolio' investments.

Large and econometrically substantiated economic designs covering the Caspian and Black Sea regions are a significant factor in opening new workplaces, accelerating economic growth and competitiveness. Georgia wields its rich experience in introduction of transnational projects and, due to this factor, it is necessary to keep on working intensively in this field. Georgia also attaches priority to such transport investment projects as Baku-Tbilisi-Kars railway and autobahn construction. It is also a priority to construct high voltage power lines linking Georgia's energy system to neighboring countries.

Based upon new realities in energy markets, the new special significance is acquired by new alternative projects of energy transportation to Georgia and European countries, first of all from the Caspian region. 

 

CEI: How is Georgia's cooperation with Caspian countries developing?

Gela Bezhuashvili: Georgian diplomacy pays special attention to developing and strengthening relations with littoral states. Investors from Caspian region have started operating in Georgia so far, and economic ties are expanding.

In particular, economic ties between Georgia and Azerbaijan have been strengthened: in 2006 Azerbaijan‘s investments in Georgian economy were growing up; trade turnover between the two countries increased significantly, the International Bank of Azerbaijan opened its branch office in Georgia; Azerbaijani entities invested in Georgia's food industry; the basis was laid for implementation of Baku-Tbilisi-Kars project.

Regarding investing in Georgia's economy, most proactive are Kazakh companies that have significantly increased their interest in Georgia, in particular its energy, communications and tourism sector. Established and launched, Commission for Economic Cooperation between Georgia and Kazakhstan considerably promotes the development of trade and economic cooperation between our countries.

I have already mentioned several successful projects covering the Black Sea and Caspian regions, such as regional projects Heydar Aliyev Baku-Tbilisi-Ceyhan, Baku-Supsa, and Baku-Tbilisi-Erzurum. It is important that Kazakhstan has already joined Baku-Tbilisi-Ceyhan project. Other projects may acquire Trans-Caspian status as well.

The agreement under Baku-Tbilisi-Kars project is a key event, a kind of a milestone in deepening the cooperation between the Black Sea and Caspian regions and opening huge prospects not only to our regions. It is extremely important that this project directly forms the chain of Caspian region-Black Sea region-the EU, thus acquiring special importance, including that of diversification of sources and routes of energy transportation.

Tbilisi Declaration of Regional Cooperation signed February 7 by leaders of Azerbaijan, Georgia and Turkey in Tbilisi marks the beginning of new and intensive phase of regional cooperation and underlines the importance of joint regional projects for long-range partnership relations of the countries in the region.

One should continue mutually beneficial cooperation in the future and involve new parties in it. In light of operating projects bringing together the Black Sea and Caspian regions and with an account for actuality of diversification of sources and routes of energy transportation it would be really positive to involve Turkmenistan in such projects, and with this regard cooperation with this country will be a priority for Georgia.

Proceeding from new reality in energy markets, projects for seeking new alternative routes of energy transportation via Georgia to European countries, firstly from Caspian region, will further remain the priority for Georgia's economic diplomacy.

 

CEI: What is your opinion on the CIS's future? Is Georgia still going to remain in this organization? What could be done to turn this association into a viable structure?

Gela Bezhuashvili: Lately the CIS member-countries, and Georgia being one of them, are really concerned about its inefficiency. We opine that membership in the Commonwealth shall benefit our citizens and our state as whole. There are many agreements in CIS format governing legal relations among the member-countries. Hasty leaving this organization will result in a regulatory vacuum in our relations with many states, including our strategic partners.

At present we are negotiating with our CIS colleagues to ensure succession of relations with our partners. Thus, in case Georgia decides to leave the CIS it will not be a surprise for anyone and least painful for trade, industry and business.

  

CEI: Does Georgia's membership in the CIS prevent it from integration with European and Euro-Atlantic associations?

Gela Bezhuashvili: Georgia's integration with European and Euro-Atlantic associations is a systematic and steady process that in a greater extent depends on us and intensity of transformations within the country, as well as on the level of democratization and our approaching to the standards of these structures in many fields.

In 2006 we launched the Intensive Dialog with NATO (and hope to pass to the Action Plan for Preparation to Obtain Membership), and signed the Action Plan within European Neighborhood Policy. Thus, it is obvious our membership in the CIS does not prevent our progress and integration with the above mentioned associations.

 

CE: What kind of partner can Georgia be for the EU?

Gela Bezhuashvili: By integration with European and Euro-Atlantic associations, Georgia is fortifying its democratic transformations and provides security. However, both the EU and NATO are acquiring a reliable partner that gets more and more important in view of the European and Euro-Atlantic security, an ally that, together with its partners, contributes to stability and security across the region.

The contribution of Georgia, both present and potential, to Europe's energy security is crucial as well. And, being also an important factor, in the name of Georgia NATO and the EU have a reliable partner sharing all-European values and interests. Thus, Georgia's approaching NATO and the EU is an appropriate and mutually beneficial process which, we hope, will continue to benefit all parties.

 

CEI: How important is Russian factor in Georgia's foreign policy?

Gela Bezhuashvili: Georgia is interested in good-neighborhood, mutually beneficial, pragmatic, predictable and equal relations with the RF. This mainly means mutual respect for sovereignty and territorial integrity of our states.

Russia is our neighbor and we share common culture and history. Georgia is open for dialog with Russia and for actually strong, friendly and neighborly relations we repeatedly spoke of. We are ready for a dialog but, naturally, not at the cost of our sovereignty, territorial integrity or the right to choose our future. Hopefully in the nearest time Russian-Georgian relations will be no more encounter economic and transportation blockades and Georgians will not be persecuted just because they are Georgians.

I also hope Russia will use its potential sagely to settle conflicts in Georgia as I am strongly convinced that stable and united Georgia is good for Russia as well as stable and democratic Russian is good for Georgia.

Recently at the conference in Sochi Russia's president Vladimir Putin said Russia would be making its adequate contribution to settlement of conflicts on South Caucasus and doing its best to solve these problems. But it is obvious that supporting aggressive separatism the RF is not promoting the conflict settlement and prevents stable development of the region.

 

CEI: What are you expecting from relations within GUAM?

Gela Bezhuashvili: GUAM organization has a good potential boosted by coordination of its member-countries in primary fields of cooperation. GUAM aims at strengthening democracy, domination of law, protection of human rights and freedoms and economic development of member-countries, as well as at regional security. Extended cooperation in these and other areas and boosted regional integration will bring GUAM countries even closer to European and Euro-Atlantic standards.

Within GUAM special attention is attached to development of economic cooperation, in particular the projects supporting trade and transport, and utilization of free trade zone potential. The special attention is paid to the use of GUAM's transit potential for delivery of Central Asian and Caspian energy to the countries of Europe, so as to raise Europe's interest in our region and GUAM in particular.

Last time the military and political cooperation and emergency management and conflict solution issue has acquired took on special significance. The main stress is made on establishment of joint peacemaking unit and civil policy forces within GUAM in order to take part in various UN and OSCE operations, both humanitarian and peacemaking. I am sure GUAM will succeed in gaining authority and reputation in this field as well.

 

Thank you for the interview.