Economists: Georgia needs relations with Russia

Economists: Georgia needs relations with Russia

The development of relations with Russia is the most reliable choice for today's Georgia, which can allow the country to restore its economy and raise citizens’ standard of living, President of the Foundation for Economic Research, Mikhail Khazin, scientific director at the Institute of Economics Academy of Sciences, Ruslan Grinberg, and a member of the State Duma Committee on energy Ivan Grachev said in an interview with a ‘Vestnik Kavkaza’ correspondent.

Ahead of the 98th anniversary of the proclamation of the Democratic Republic of Azerbaijan, Georgia and Armenia (Georgia's independence day on May 26th, the Republic Day of Azerbaijan on May 28th, and the Day of the Republic of Armenia on May 28th) 'Vestnik Kavkaza' publishes opinions of Russian politicians, economists and cultural figures about relations between Russia and these countries. And today, the Independence Day of Georgia, we bring to your attention a part of the conversation with economists, dedicated to the Russian-Georgian relations.

Above all, Mikhail Khazin drew attention to the fatal consequences from the economic viewpoint of today’s Tbilisi aspirations to the West. 

‘‘It is an economic disaster for the republic. Georgia, like any other Transcaucasian republic, except for Azerbaijan that has reserves. Georgia can sell their products only to the North and Russia. Because in the south – Iran and Turkey - produce the same products, but only cheaper. As for the necessity for economic development, Tbilisi needs relations with Russia,’’ he said.

‘‘With the help of Saakashvili the US made Georgia one of the two main anti-Russian projects that destroyed relations with Russia and led Georgia’s economy to collapse. Georgian made an attempts to become a transit country, but after oil and gas prices decreaesd it became clear that this scenario did not work. The only chance is more or less sensible development. It it doesn’t happen it will lead to total poverty and other problems,’’ Mikhail Khazin said.

Supervisor at the Institute of Economics recalled that it has never been easy to establish ties with independent Georgia. "Our relations after the collapse of the USSR were not close. Georgian statehood construction was based on the nationalist foundation, even at times of Gamsakhurdia when the very dangerous ‘Georgia for Georgians’ slogan led to numerous victims. "Then it was a great Georgia’s mistake. Today, we see a renewed call for the restoration of relations with Russia, the situation is changing radically. Now we have all opportunities for establishing good relations,’’ Ruslan Grinberg said.

Ivan Grachev expects that the improvement of relations will happen through enhanced economic cooperation. 

"We will be able to achieve this with the help of the economy. I am sure that if we gradually establish economic ties and agree on the opening of the railway to Armenia, in this case we will be able to return to normal diplomatic relations. According to trade statistics, import-export natural ties are being restored despite the fact that the West managed to create a huge problem in Russia and Georgia," the deputy noted.

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