Irakli Kobakhidze Meets Business Leaders Amid Political Crisis in Georgia
Georgian Dream PM Irakli Kobakhidze met with big business leaders, including signatories of the Free Business Platform, to discuss the country’s political crisis and explore potential solutions. The meeting, which lasted four hours, highlighted differences of opinion within the business community over the assessment of the current situation. Comments by Levan Davitashvili, Minister of Economy of Georgia, following the meeting suggest that the meeting was called by the government to calm the business community and assuage its concerns amid political tensions and Georgia’s growing international isolation.
The Free Business Platform, established on December 15, has garnered support from over 2,200 companies demanding new elections. The group argues that the country’s U-turn from its pro-EU trajectory poses risks to the business sector and the broader economy. However, opinions among business leaders remain split.
We have collected some comments of the business representatives made before and after the meetings.
Comments Made Before the Meeting
Noshrevan Namoradze, the founder of VR Holding, praised the stability of the last decade and drew a comparison with the situation in Ukraine. He asked the TV Pirveli journalist who asked for a comment, whether he thought the new elections would diffuse the tensions, whether she wanted the same situation in Georgia as in Ukraine, saying that “she wouldn’t be able to achieve it here”. He also asked her if she remembered the country as it was before 2012, saying that after the GD government came to power “the country has rested for the last 12 years”.
Tea Zakaradze, General Manager of TAV Georgia, emphasized the need for stability but remained open to elections as a solution. “Our business—aviation—needs peace and stability. If new elections are the solution, this step should be taken. If the situation continues like this, it will affect business in January-February,” she warned.
Others, like Beso Ortoidze, Director of Arsi, underscored the urgency of de-escalation. When asked what Kobakhidze said he said, the same positions were voiced by the government as the ones voiced publicly. He noted also that “more than 2,000 companies, including ours, have demanded snap elections and the release of prisoners. We will listen and, perhaps, receive an answer,” he said.
Irakli Iashvili, the founder of the East Gate Group, highlighted fears of currency instability, implying that someone was attacking the national currency by telling journalists: “Do you think it is right that the GEL exchange rate is being attacked? I understand the demands, but I do not agree with the devaluation of the GEL,” he said. “Businessmen and politicians should mind their own business, but only in a way that satisfies me”.
Meanwhile, Giorgi Margvelashvili, founder of Tbilvino, reiterated the Free Business Platform’s demands. “We, more than 2,200 business representatives, have made our statement public. We named the solution to the crisis there, which is the release of prisoners and new elections,” he said.
Beka Bekaia, Managing Partner of Nutrimax, said that he expects answers from the Prime Minister on how to de-escalate the situation in Georgia, stressing that businesses are now in a very “difficult situation”. He noted that certain sectors are facing particularly tough conditions, citing for example the lack of tourists, which puts the hospitality sector in a difficult position. “I think the main thing is to de-escalate. Depolarize, because it is impossible to live like this. Elections could be one of the solutions”.
Comments Made After the Meeting
Zurab Chkhaidze, General Director of Kakhetian Traditional Winemaking: “The government team has a specific plan, which includes ensuring that the country’s development continues at the pace it is now. I think that this [growth] rate, as it is, and these monthly and quarterly data are very good. [Journalist: Was there talk of new elections?] Yes, they will be in four years”.
Beso Ortoidze, General Director of Arsi: “The government’s positions are the same as what they say publicly. There was no difference, only more details that were discussed”. He confirmed that new elections were discussed at the meeting.
Giorgi Margvelashvili, founder of Tbilvino, stated that many did not share his sentiments, however there were some representatives of the business community that expressed views about the disproportionate use of force, and the ill-treatment of prisoners. “The initiative was expressed to continue these meetings, especially with those groups that are critical of the current events,” he noted.
Tea Zakaradze, General Manager of TAV Georgia: “We discussed all the issues that are important today and received comprehensive answers to all our questions. The Prime Minister promised us that steps will be taken as soon as possible to resolve all this. There was no talk of new elections. There was no position regarding new elections, and I will tell you directly that we went through all the nuances in great detail… We talked about it and [the PM promised] that prisoners will be released before the New Year.”
GD’s Economy Minister’s Statement
GD’s Minister of Economy and Vice-Prime Minister, Levan Davitashvili, said after the meeting that the dialogue with business representatives was “very interesting” and that the opinions of both those who support the government’s policy and those “who have questions” were heard. He said that every question was answered during the meeting and special attention was paid to the discussions on the course of the government, with the leadership of the GD promising to proceed according to its pre-election promise “with dignity and prosperity towards Europe”.
“We talked about the current processes, the extreme polarization that exists in the society, and the challenges that our country faces today in terms of stability. Of course, the business community and all groups in the society want peace and prosperity in our country. Regardless of the political platform of different groups in our society or business, I think everyone has the same desire: to have more prosperity, a stable and predictable development environment in this country,” Davitashvili stated.
Davitashvili noted that it had been decided to hold more meetings with those businessmen who had “different opinions” so that they could “get some explanations about the policies being implemented in the country today”.
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