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Georgia not yet Sees Risks Associated with Export of Wine to Russia

In January-July 2014 wine exports reached approximately USD 102 million, that  is 117% more than in the same period of 2013, exports it bottled wine amounted to  31.3 million at an average price of  USD 3.2 per bottle.

65% of wine exports fall on  Russia.

“Commersant” tried to figure out how risky representatives of the Georgian government and business consider wine exports to Russia due to the latest developments.

 According to the Minister of Agriculture Otarpa Danelia, at this stage there is no risk.

“For us, the priority is to diversify exports and we have a specific position on the matter. First of all, I can say that the export is carried out consistently, the relevant departments of Russia and Georgia cooperate well, and at this stage there are no risks. But in any case, diversification is a major challengefor us. Therefore, we need to be mobile in order to be able to start deliveries to alternative markets at any time. In addition, we should not forget about Europe, the integration with which becomes irreversible, and the market is practically open. In this regard, we are working very effectively and if some of our producers have contacts and trade relations, we help them in every way, “- said the Minister.

According to him, it’s wrong to talk about the possibility of an alternative to the Russian market, it is necessary to talk about the diversification of exports.

“The ability to export to a particular country depends on many factors – today it exists and tomorrow it may not be, because the situation in the country has changed, the requirements have changed. Therefore, a diversification of markets  leads to the balance. Our goal is  to minimize the risks, and thereis  difficulties if on some market, then we should be able to replace it. Preconditions for diversificationexist. For example, we had  very useful meetings in China,”- the Minister states.

As the price of the wine, Otar Daneliya notes that demand for Georgian wine has grown and accordingly, the price, and it happens not only in one market, but also on all.