Georgian Economy Minister about GEL
"Compared to the previous year, pressure on our currency is reduced by 100-180 million dollars, and respectively, we are sure that GEL is bound to regain value in the mid-term period.
Also, I would like to point out that if market players fail to make correct expectations, the National Bank and the central government will take all necessary measures. Among them, we will consider adjustment of the budget if the country needs it once again, though at this stage we cannot see any need for it", - said Georgian Minister of Economy Dimitri Kumsishvili.
As the Minister said, his agency has daily contacts with the Finance Ministry and the central bank and analyzes the current situation.
According to Minister Dimitri Kumsishvili, the GEL will regain value in the mid-term period.
Georgian Prime Minister meets with CEO of OMV Petrom SA which will explore oil and gas in Georgia
Today, Georgian Prime Minister Irakli Garibashvili, together with Minister of Economy and Sustainable Development Natia Turnava, held a meeting with the leaders of OMV Petrom SA, a company that will explore oil and gas in Georgia.
The meeting at the Administration of the Government emphasized the importance of this project. The relevant agreement places Georgia among the countries with oil and gas shelf exploration.
The project involves extraction, and collection, acquisition, and processing of geological and geophysical data for oil and gas extraction in the course of 25 years on the Black Sea's continental shelf.
The Prim Minister emphasized that the Georgian Government welcomes cooperation with OMV Petrom-a subsidiary of OMV, which ranks among Europe's top 10 oil companies-and is ready to provide support toward the project's successful implementation.
According to the Head of Government, the entry of such a large company reaffirms that Georgia's business environment, including in the area of oil and gas extraction, is transparent and appealing to world-class oil giants.
During the meeting, OMV Petrom was represented by CEO Christina Verchere, Exploration and Appraisal Director Bernhard Krainer, and Business Development and Commercial Director Jose Rafael Duque-Ramirez.
After the meeting with the Prime Minister, the relevant agreement was signed, at the Government Administration, by Giorgi Tatishvili, Head of the State Agency for Oil and Gas at the Ministry of Economy and Sustainable Development, on one hand, and by Jose Rafael Duque-Ramirez and Bernhard Krainer, on the other, as representatives of OMV Petrom SA.
On June 22, 2020, the State Agency for Oil and Gas LEPL at the Ministry of Economy and Sustainable Development announced an open international competition for the general oil and gas license encompassing the Black Sea's license blocks 2 and 3. OMV Petrom SA, a member of the large Austrian oil group OMV, won the license to operate in block 2.
The tender's wining company will carry out 2- and 3-dimensional seismic exploration works, and drilling will commence in the last phase of the project. The value of the drilling phase will depend on exploration results.
The value of a similar project involving the exploration of the Domino well by Austrian OMV in Romania's territorial waters is 1.5 billion USD. Exploration work on the Black Sea is underway in Turkey, Russia, Bulgaria, Romania, and Ukraine. Exploration work has resulted in the discovery of large hydrocarbon wells in Romania and Ukraine. Bulgaria, where the company also operates, is close to a similar commercial discovery.
Press Service of the Government Administration
Dimitry Kumsishvili: “State economic policy is fully supported by the International Monetary Fund”
“Our state economic policy is fully supported by the International Monetary Fund,” - the First Vice Prime Minister of Georgia, Minister of Economy and Sustainable Development Dimitry Kumsishvili stated at today’s press conference.
Dimitry Kumsishvili highlighted that the board of the International Monetary Fund made a decision to approve the first assessment of Georgia and support the economic policy of our country. Besides, the Minister added that the program of the International Monetary Fund itself is built on the 4-point plan thus supporting the development plan of the Government of Georgia.
As Dimitry Kumsishvili commented, the survey of the International Monetary Fund confirms that Georgia will keep up the economic growth under the conditions of the fall of inflation from the following year.
“It is obvious that Georgia’s foreign position will be improved. The annual budget envisages both fiscal consolidation, as well as all budget parameters for macroeconomic growth,”- the First Vice Minister noted.
Silk Road Forum should lead increasing our country’s transit potential – Vice PM Dimitri Kumsishvili
The Silk Road Forum benefit should reveal in increasing our country’s transit potential, - Georgia’s Vice PM Dimitri Kumsishvil has declared at Tbilisi before the forum begins.
According to him, Tbilisi hosts the second Silk Road forum with 2000 delegates and visitors from 60 countries.
‘We have delegates of very high level. Prime ministers from two countries are here as well as vice PMs and ministers from different countries. Generally, the forum essence and benefit should reveal in leading to encourage our country’s transit potential as well as the investments Georgia is implementing in basic infrastructure. The investments made by the private sector and other significant infrastructure should also be beneficial that will result in creation of new jobs and inclusive development of economy,’ Kumsishvili has remarked.
In response to a question whether the Silk Road can replace the Karsi-Akhalkalaki railway, Kumsishvili said that the railway represents continuation of the Silk Road being one of the branch of it. According to him this is the way connecting Azerbaijan, Georgia and Turkey and in turn, it will be the possibility that will increase our hub capacity by 15 million tons in total.
In response to a question over revealed benefits of the Silk Road first forum, Dimitri Kumsishvil said that a lot has happened for two years.
‘In March 2015 Georgia and China signed an agreement on the Silk Road development and in November 2015 we hosted the first Silk Road forum in Tbilisi. Afterwards, we completed the trade agreement on free trade with China… As a result, cargos turnover increased, as well as the railway turnover today we enjoy from the Asian countries including China. We are very proud of it saying all this confirms that the shortest road is on Georgia and this is reality today… Currently we know that it takes only 9-12 days for shipment to Europe via our hub from China. So, the wishes and opinions expressed in 2015 is now reality,’ Kumsishvili has remarked.
According to him a set of important agreements are planned to be signed today.
Tbilisi Silk Road Forum is opening today.
Giorgi Gakharia Met Shanghai Vice Mayor
Minister of Economy and Sustainable Development of Georgia, Giorgi Gakharia, within the framework of the visit to the People’s Republic of China, had a meeting with the Vice Mayor of Shanghai, Zhou Bo. Further enhancing of bilateral trade and economic relations and the Free Trade Agreement signed between Georgia and China were the main topics of the conversation. The Minister and the Vice Mayor also discussed the upcoming Silk Road Forum to be held in November in Tbilisi.
“The interest of the Chinese side towards Georgia is clear and it became even more obvious when several days ago, an Agreement was signed between the largest Chinese company CEFC and the Georgian Government. We examined the Free Trade Zone in Shanghai, which was very impressive and we believe their experience can well serve us. China is a huge market for our export, its share is increasing and we should pay even more attention to the related issues. I believe such meetings are of mutual benefit since we establish relevant working groups, just like today, which aim to further develop the certain issues” – Giorgi Gakharia stated.
Deputy Minister of Economy and Sustainable Development, Giorgi Cherkezishvili and the Ambassador Extraordinary and Plenipotentiary of Georgia to the People’s Republic of China, Davit Aptsiauri, also attended the meeting.
Chinese-Georgian Business Forum Held in Xiamen
Georgian delegation, headed by the Minister of Economy and Sustainable Development of Georgia Giorgi Gakharia, introduced the Georgian investment environment at the Chinese-Georgian Business Forum held in Xiamen. Deputy Ministers of Economy and Sustainable Development – Nino Javakhishvili and Giorgi Cherkezishvili delivered speeches at the Forum. The importance of the Forum in terms of further development of the trade relations between the two countries was specially emphasized.
Within the framework of the visit, a Memorandum of Understanding was signed between the Georgian Government and one of the largest Chinese company CEFC. The Minister of Economy and Sustainable Development of Georgia, Giorgi Gakharia also signed an Agreement on handling 75% share of the Poti Industrial Zone to the Chinese conglomerate CEFC.
“The Agreement envisages handling of the 75% share, which belonged to the state, and the management right of the Poti Industrial Zone to the CEFC. The Poti Industrial Zone is a very important asset for the economy of the country and its vital to reorganize and actively develop it. We believe that the Chinese company will bring success to the Zone since they have the ability, the power andthe knowledge to manage such a complex and large project. We will start cooperation on this project in the nearest future” – Giorgi Gakharia stated.
“This really is a fact to welcome, as it will facilitate additional cargo inflow through Georgia” – the CEO of the Georgian Railways, Mamuka Bakhtadze noted.
Approximately two hundred Georgian and Chinese private companies participated in the Business Forum.