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Will the Ergneti Market Be Reopened or Not?

January 23, 2013

Levan Sepiskveradze

Discussion on the reopening of the Ergneti market, which was closed in 2004 in Shida Kartli, has been rekindled in political circles and the society of Georgia for the last few months. Prime Minister Ivanishvili initiated the idea before the parliamentary elections. Public reactions to the idea differed, but everybody admitted that this issue was worth consideration and discussion.

Before the Rose Revolution, the Ergneti market functioned for about seven years, located between Ergneti village in Gori district and Tskhinvali. People there mostly traded untaxed fuel, sugar, cigarettes, wheat flour and corn imported from Russia. Other, mostly smuggled products—fruit,vegetables and others were sold there as well. Ossetian and Georgian people, who were often opposed due to the armed conflict, used to cooperate with each other in the Ergneti market, trading their products there. These trades showed that the resources of reconciliation had not been exhausted.

Locals say the Ergneti market had both its positive and negative sides. They believe that if the market is reopened, products should be taxed on the place,, because otherwise it would cause another wave of smuggling and corruption.

Zaza Kakhabrishvili, resident of Liakhvi Gorge: “I support the idea of opening the market. But an important point is that products should be taxed in Ergneti village in order to discourage people from doing illegal trading. When the market was functioning, Bagiata mineral water was the only product, produced in South Ossetia, sold in the market. Everybody loved the water here and it was cheaper than Georgian mineral water. As for the other products, everything was Russian. However, since prices were low, almost all of eastern Georgia used to come  here and buy wheat flour, sugar and other products. Locals support the idea of opening the market. However, we do not want to see narcotics imported here from Tskhinvali like in the ‘90s. Georgian and Ossetian youth were afflicted with this disease then, and many of them died from  drug addiction. I hope our government considers this threat.”

Theleader of the parliamentary majority, Davit Berdzenishvili, said that the previous government should have legalized the Ergneti market rather than close it. On January 11, Berdzenishvili said in the Press-Club of Maestro that the previous government made a disastrous mistake in 2004 when it escalated an already exacerbated conflict. The MP said: “It is necessary to normalize relations with both Tskhinvali and Sokhumi, and the Georgian side needs legalized relations with people living in our territory.”

Foreign minister of Georgia Maya Panjikidze raised the issue of the Ergneti market before Georgian Dream came to power. Panjikidze said that the Ergneti market was not an ideal one, but it would have promoted reconciliation between Georgian and Ossetian people. “The Ergneti market had always been a very important place. Georgian and Ossetian people used to meet each other there. Nobody claims that it was an ideal market, but if everything is legalized and smuggling is prohibited there, the reopening of the market will support the reconciliation process between Georgian and Ossetian peoples.”

Representatives of the new government of Georgia have declared several times that they are ready to start dialogue with de facto government of South Ossetia with regard to reopening the Ergneti market. Unfortunately, the Tskhinvali side has not responded to this initiative yet.

Murat Jyoev, representative of the Ossetian side in post-conflict regulation issues, said in an interview with Russian newspaper Izvestia that the reopening of Ergneti market is not of interest to Ossetians and refused to make a larger comment. Izvestia wrote that Bidzina Ivanishvili’s government drafted a set of proposals to Tskhinvali with regard to reopening the Georgian-Ossetian market in Ergneti village.

According to the Russian edition, proposals from the Georgian side are prepared in the parliamentary commission on the restoration of territorial integrity; experts and the Ministry of Reintegration also take part in the process.  The chairman of the parliamentary commission, Giorgi Volski, told Izvestia that the economic and social welfare of 30,000 Georgian and Ossetian people are linked with the Ergneti market.

Peasants from Ergneti village have different opinions about the opening of the market in Ergneti. Giorgi Kasradze said it will bring an economic benefit to the population of Liakhvi Gorge. However, since it is a different time now, he thinks that the reopening of the market might escalate the situation in the conflict zone.

Giorgi Kasradze: “When the Ergneti market was functioning, wheat flour and sugar were the cheapest here and it was very good. Many locals earned money then. However, my family had a very negative experience. We could not leave home at night because the village was not controlled at all and everybody was free to do whatever they wanted. One Ossetian person left a truck full of 40 tons of fuel to store. The next night, masked robbers attacked me; they took the car and our money from us. I am afraid similar things will happen again. Moreover, we are still not protected. Only god knows what will happen then…”

A short time ago, an alternative to the Ergneti market—the town of Akhalgori—was also actively discussed. Newspaper Rezonansi published information about opening a market in Akhalgori on January 19. “Locals say a large trading facility might be opened in Akhalgori, close to the de facto border, which will replace the Ergneti market. Officials do not say anything about it,” the article of the Rezonansi read.

State Minister for Reintegration Issues Paata Zakareishvili does not confirm information about the possible opening of a market in Akhalgori. The Minister said his ministry has not discussed the opening of an alternative market in Akhalgori and he denied the rumors spread about it.

Representatives of the parliamentary minority and members of the president’s political team think the opening of Ergneti market is a “tough case”. The new regional governor of Shida Kartli, Andro Barnov, said the issue of the Ergneti market is a populist step for the new government. “The opening of the Ergneti market is a very tough issue. I share the position of the National Movement with regard to this case and think that opening this market  would contain some threats. I have many questions about this case, and I will definitely bring them up to government representatives. Claiming that the market is necessary to reconcile people is not correct, but if we make sure that all possible threats are avoided, we are not against cooperating with anybody. At this stage, I think it is a populist step which would have a short-term positive and a long-term negative effect.”

Despite many problems, the opening of Ergneti market is still on the agenda. It was one of the pre-election promises of the Georgian Dream Coalition. Despite controversial approaches, the majority of the population of Georgian villages in the conflict zones positively evaluate the prospect. They believe a market is much better than war and hostility. 

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