Economists tell about implication for Georgia of Russia's sanctions

The ban on the import of Georgian wine into Russia may lead to export drop by 200 million US dollars a year, Georgian economists believe.

The "Caucasian Knot" has reported that Russian State Duma MPs voted for the imposition of economic sanctions against Georgia in the form of a ban on the import of Georgian wine and water, as well as on money transfers.

Economists have agreed that a ban on the delivery of goods to the Russian market would have a negative impact on Georgian economy, since the Russian market is the second most important for the exporters of Georgian wine. During the year, Georgia may lose up to 200 million US dollars, experts believe.

Mikhail Tokmazishvili, a former board member of the National Bank of Georgia, has noted that inflow of foreign currencies will decrease due to the ban on the export of wine to Russia, and a decrease in the number of tourists, which may affect the exchange rate of the lari, the Georgian national currency.

Demur Giorkhelidze, an economist, believes that sanctions may affect the lari's exchange rate, which is already falling because of "fundamental problems of the Georgian economy."

Giorgi Kepuladze, the chairman of the NGO "Society and Banks", has linked the fall in the exchange rate of the lari with the government's wrong economic policy.

"We are watching a panic buying of foreign currencies. The solution is that we should not depend on markets of other countries," he has explained.