Features of Saakashvili’s Policy

Opinion.ge

While the US and western European countries have stopped economic cooperation with the Islamic Republic of Iran, Georgia increases its cooperation even more. Officially, however, Mikheil Saakashvili’s government follows the western course.

Not long ago, Iranian news agencies reported on economic agreements signed between Teheran and Tbilisi. The chair of the Trade Chamber of Georgia, Kakha Baindurashvili, and head of the transit agency at the Ministry of Economy of Georgia, Mikheil Khmaladze, visited Iran to sign a cooperation agreement.

Georgian national TV-channels, who usually broadcast similar visits by Georgian government officials, did not report anything on the agreement with Iran. Nor did Vera Kobalia’s institution [the Ministry of Economy and Sustainable Development of Georgia] comment the agreement.

Opinion.ge tried to find out details about the cooperation between the Georgian government and Iran, and why the Georgian population were not informed about it and if the the cooperation with Iran  is in keeping with Georgian official policy.

We asked the deputy foreign minister of Georgia, Nino Kalandadze, to comment on Georgian foreign policy with regard to Iran and the West. Kalandadze replied to Opinion.ge that Georgia is a sovereign state and economical cooperation with its neighbors is vital; that no secret policy is held by Georgian authorities and cooperation with Iran does not undermine our cooperation with Western countries.

Nino Kalandadze: Georgia is a sovereign state, it independently chooses its partners and forms of cooperation with them. Additionally, Georgia has openly declared that it is eager to have extremely close cooperation with economically sustainable states. When the tourist potential from Iran is increasing on a daily basis in Georgia, of course we wish to have close economical cooperation with a country of huge economical potential in the region. However, it does not mean that we have breached our general policy or that it somehow undermines our policy with regard to the West. These relations are completely transparent. Our allies and partners have information about it. So, it is within Georgia’s interests to maximize its trading cooperation with large states  as well as Georgia's potential to attract more and more tourists. As for informing Georgian society, I do not share your view that the Georgian population does not have information about it. I am openly talking about this cooperation again. A delegation from Iran visited Tbilisi and an economical commission was set up here whose activities were covered by national media, as far as I know. There is no hidden policy. It is openly declared moreover when Georgia tries to increase its economical potential and attract foreign citizens with its market and, in turn, open foreign markets for our citizens. From this standpoint, every country is a vitally important partner for us.”

It is unclear if the statement of the deputy minister is the official position of the government of Georgia.

As for one of the concrete agreements with Iran, on February 27, Kakha Baindurashvili signed a memorandum on increased economic cooperation with the private sector in Teheran. The document was signed during a meeting between representatives of Georgian and Iranian private sectors. The participants in this session also agreed to set up a Common Council of Businessmen, with members from both countries.

The president of the Trading Chamber of Industry and Resources of Iran, Muhamed Nahvandian, evaluated the results achieved and said: “By taking effective measures and implementing reforms in the Georgian economy, relevant ground has been prepared for Iranian businessmen to launch businesses in this country.” Kakha Baindurashvili said that Iranian businessmen will be able to have access to larger markets via Georgia. “We have created advantageous conditions for Iranian businessmen by protecting them from double taxes,” the head of the Georgian Trading Chamber said.

The Georgian government signed another agreement with Iran, this one one transport movement between the two countries. Mikheil Khmaladze from the Georgian Ministry of Economy and his Iranian colleague Said Abdalahim signed a cooperation agreement.

Opinion.ge got in touch with Kakha Baindurashvili and asked him to comment on the issue. He said that the Trading-Industrial Chamber of Georgia actively signs similar cooperation agreements with other countries too. This particular agreement aims to develop business cooperation between the Iranian and Georgian Chambers, politics has nothing to do with it and no information is hidden either.

However, as we have already noted, Georgian media sources did not report on the Georgian-Iranian meetings. The government agencies which were to inform the media about ongoing negotiations (Ministry of Economy and Sustainable Development of Georgia, Trading-Industrial Chamber, Foreign Ministry of Georgia) did not inform them for unidentified reasons.

The world tightens its economical and political sanctions against Iran every day. Presumably, all EU states will declare an embargo on the Iranian bank system after the US and Great Britain has already done so. In fact, Teheran has lost its traditional export markets for its fuel. From July 1, 2012 EU will completely prohibit the import of oil from Iran. Japan and China have also significantly reduced procurement of Iranian petrol.

Nowadays, only Armenia and Georgia are economic partners of Iran. It also has close relations with Russia and Belarus. Iranian domestically produced chemical substances are actively imported to Georgia as well as agricultural products and plastic items. Georgian roads rehabilitated and paved with financial aid from the US is constructed using Iranian bitumen.

While the international community, particularly USA, actively recommends Teheran to halt its nuclear program, the Georgian government supports Iranian economic development and purchases the aforementioned Iranian bitumen, paying with American money. If we consider that Irans trade relations are in a deadlock and even former allies try to distance themselves, we can conclude that Georgia acts as Iran's last hope.