“Russo-Georgian Business Council” Ponders Expansion of Transport Links to Georgia

On September 19, the “Russo-Georgian Business Council,” established at the Russian Chamber of Commerce and Industry, held a session in Vladikavkaz, in Russia’s North Caucasus. Vladimir Padalko, Vice President of the Chamber of Commerce, stressed the need for expanding the transport links with and through Georgia, while the local media reported that Georgia was increasingly becoming “a logistical hub to the world” for Russia.

The following proposals were mentioned for improved transport links:

• A year-round ferry service linking Russia with Georgia and Turkey was said to be in the late planning and early implementation stages. “Now a ferry for 150 cars and 300 passengers is being launched, which will operate practically all year round. This will not solve the problem [of logistics with Georgia], but it is still an addition” – said Padalko.
• During the meeting, the railway connectivity between Georgia and Russia was mentioned. Padalko said the deliberations are ongoing on whether the new railway should be constructed through Ingushetia (North Caucasus) or the old one through Abkhazia be reopened, which he believes “will represent a pivotal moment.”
• An appeal has been made to airlines to lower ticket prices for passengers traveling between Russia and Georgia in both directions.
• Equipping the Larsi checkpoint with capacity for electronic registration of cargo was requested by businesspeople dealing with transit.
• The re-opening of vehicle transit through the occupied Tskhinvali region/South Ossetia was proposed.

The Council reported that the representatives visited the Larsi checkpoint on September 20 and planned to travel to Georgia to continue discussions.

The Russo-Georgian Business Council was established in February 2023 and, alongside Russian officials, brings together businesspeople who represent the Georgian diaspora in Russia. So far, no formal participation of the businesses established in Georgia has been reported. According to official records, the Council is headed by one Yuri Balashov, listed as board chairman of the “Innovation Company RUMB Ltd.,” which is based in Russia’s town of Dubna since 2019. It reportedly is a small company that mainly works on producing navigation, meteorological, and geodesic equipment.

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