Georgian Railways Found Having an Indirect Procurement from a Sanctioned Company

On October 26, a local media TV Formula reported that the Georgian Railways, a state-run joint-stock company, has been linked to the sanctioned Russian company.

According to Formula, on April 13, 2023, the Georgian Railway signed a contract with the intermediary company TAVRIDA ELECTROSYSTEMS, which according to the tender documents, has been contracted to purchase equipment manufactured by the Russian plant V. VOROVSKY TIKHORETSK MACHINE CONSTRUCTION. The TIKHORETSK plant was sanctioned by the U.S. Treasury on September 14, but the Georgian Railways’ contract, according to the website of the State Procurement Agency of Georgia, remains in force. The contract is worth GEL 3 million.

Levan Davitashvili, the Minister of Economy of Georgia, declined to comment on this issue. However, the Georgian Dream MP Levan Kakhiani, said that this was “a case which requires individual approach and reaction.” “It is more than obvious that we have no relations with sanctioned companies, especially when it comes to the state,” Kakhiani added.

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