AGP Executive Report

Transport & Connectivity: The World Bank approved $372 million for Georgia’s Trans-Caspian Transport Corridor (TC-GATE) to modernize rail and key roads, cut logistics bottlenecks, and support reforms—aiming to strengthen Georgia’s role on the Middle Corridor. Regional Trade: Georgia’s Baku–Tbilisi–Kars upgrade is now tied to a major capacity jump to 5 million tons, with officials stressing the BTK as a strategic Georgia–Azerbaijan–Türkiye partnership. Health Policy: Parents of children with Duchenne muscular dystrophy met Prime Minister Irakli Kobakhidze, pressing for the import of modern drugs that slow progression and extend life. International Spotlight: Georgia was elected to the WHO Executive Board, with Deputy Health Minister Irakli Sania set to represent the country in global health agenda-setting. Sports & Culture: RAF announced its first international wrestling event in Tbilisi on July 11, featuring Merab Dvalishvili vs. Henry Cejudo.

BTK Railway Boost: Georgia’s upgraded Baku–Tbilisi–Kars line has officially moved from test mode to full operation, with the Georgian segment modernization raising annual freight capacity fivefold to 5 million tonnes—an important win for the Middle Corridor and Georgia’s logistics role. Regional Defense Ties: Azerbaijan’s Defense Minister Zakir Hasanov visited Georgian military facilities, meeting Georgia’s Deputy Prime Minister and Defense Minister Irakli Chikovani and touring the Mukhrovani Special Operations base. US-Georgia Cooperation: The U.S. Embassy welcomed arrests tied to an operation targeting illegal facilitation of entry into the United States and document forgery, with Georgian prosecutors saying two organized criminal groups were identified. Energy Policy Watch: Georgia’s gas tax suspension is set to end, while lawmakers elsewhere propose fuel tax holidays—highlighting how energy costs keep driving political debate. Sports in Tbilisi: Bahrain’s national team began a European camp in Tbilisi ahead of a friendly against Georgia, then plans to travel to Türkiye for another match.

BTK Railway Launch: Georgia, Azerbaijan and Türkiye officially kicked off full-capacity operations of the modernized Baku–Tbilisi–Kars line in Akhalkalaki, with officials saying capacity could reach 5 million tons and boost the Middle Corridor. Defense Ties: Azerbaijan’s Defense Minister Zakir Hasanov visited Georgian military facilities, including the Mukhrovani base, as both sides deepen cooperation. U.S.-Georgia Security Cooperation: The U.S. Embassy welcomed arrests in a joint operation targeting illegal facilitation of entry into the United States and document forgery. Domestic Politics: Prime Minister Irakli Kobakhidze hit back at Germany’s ambassador Peter Fischer, while opposition figures accused the government of “lies” and urged more active resistance. Energy Corridor Talk: Azerbaijan’s deputy energy minister framed the country as a regional energy bridge linking Central Asia, the South Caucasus, Türkiye and Europe, while officials also discussed harmonizing electricity market rules. Courts: Tbilisi City Court sentenced two defendants in the murder case of teacher Giga Avaliani. Economy/Policy: An IMF paper warned central banks across the region face renewed pressure that could threaten inflation control, stressing the value of independence.

Georgia-Azerbaijan Defense Ties: Azerbaijan’s Defense Minister Zakir Hasanov met Georgian PM Irakli Kobakhidze in Tbilisi, with both sides stressing expanding military cooperation and regional stability. Energy Crackdown: Georgia says it’s starting “effective steps” against illegal crypto mining in Mestia, including mass electricity meter installation, after the municipality’s power use reportedly surged and the grid faced outages. Regional Power Plans: Turkey’s energy minister says a new electricity corridor—“the electricity version of TANAP”—is being developed with Azerbaijan, Georgia and Bulgaria to expand cross-border power trade. Tbilisi Finance Agenda: Georgia will host a Tbilisi Financial Summit on Oct. 27–28, focused on regional economic corridors at the intersection of policy, finance and technology. Agriculture Reform: Environment and Agriculture Minister Davit Songulashvili highlights Georgia’s shift toward high-quality, export-ready farming, with stronger monitoring and extension services. Public Safety: Severe thunderstorm warnings hit parts of west Georgia, with damaging winds and hail possible.

Agriculture Reform: Minister Davit Songulashvili says Georgia’s agri-sector can compete through high-quality exports, backed by an Agricultural Co-Financing Project focused on faster farmer support, stronger monitoring, and better access to knowledge and extension services. Regional Transport: Georgia will officially launch the modernized Baku–Tbilisi–Kars railway on June 2, boosting freight capacity to 5 million tons per year and strengthening the Middle Corridor. Energy Diplomacy: At Baku Energy Week, officials discussed uninterrupted Azerbaijan gas supplies to Georgia and plans to expand cooperation into electricity corridors—an “electricity version of TANAP”—linking Azerbaijan, Georgia, Türkiye and Bulgaria. Security & Justice: Tbilisi City Court ordered pre-trial detention for two men accused of espionage, with the State Security Service alleging ties to foreign special services. EU Politics: Georgia’s government figures hit back at German Ambassador Peter Fischer over remarks on Georgia’s EU path, while the U.S. Embassy outlined State Department talks focused on sovereignty, economic ties, and resilience to external influence. Culture & Identity: TBC Concept Gallery announced Natela Grigalashvili’s exhibition on the Fereydani Georgians, tracing four centuries of preserved language and identity.

Stalin’s Wine Vault Opens: Georgia has unveiled Stalin’s hidden cellar in Tbilisi, revealing about 40,000 rare French and Georgian bottles after decades underground, with some reportedly dating back over 200 years and now set to be auctioned. EU Integration Protest in Tbilisi: Thousands marched in central Tbilisi demanding EU integration and new elections, accusing the government of blocking accession and calling for the release of people arrested after unrest in late 2024. Security Service Espionage Arrest: Georgia’s State Security Service arrested a citizen on espionage charges, alleging work for a foreign intelligence service and systematic contact with people in journalistic and expert circles. Higher Education Overhaul: The education minister outlined a new higher-education funding model with basic and performance-based components, plus a pledge of free public higher education starting 2026–2027. Public Health Focus on Tobacco: Georgia marked World No Tobacco Day with WHO-linked figures showing about 11,400 annual tobacco-related deaths and renewed anti-smoking measures, including standardized packaging. Batumi Rare-Disease Program: Georgia’s health ministry discussed expanding rare-disease care in Batumi, including multidisciplinary supervision for patients with neuromuscular conditions. Sports—Bahrain vs Georgia: Bahrain’s national team is set for a Europe camp and will play Georgia in Tbilisi on June 5.

EU Integration & Elections: Thousands rallied in Tbilisi demanding EU accession and new parliamentary elections, with opposition leaders calling for a fresh mandate and the release of people detained after earlier protests. Public Health: Georgia marked World No Tobacco Day with WHO-linked figures showing over 7 million annual deaths worldwide from tobacco, and about 11,400 in Georgia, warning that e-cigarettes and heated tobacco aren’t safe quitting tools. Security Service Crackdown: Georgia’s State Security Service arrested two people on espionage charges, including journalist Irakli Chikhladze and pro-Russian activist Gulbaat Rtskhiladze, citing covert contacts with foreign security services. Orthodox Church Diplomacy: The U.S. Embassy in Georgia published details of a State Department delegation meeting Patriarch Shio III, stressing Christian values and the Church’s role in reconciliation. Sports & Culture: A Qatari officiating team was appointed for the Georgia–Romania friendly in Tbilisi, while Georgia’s football spotlight also continues with Khvicha Kvaratskhelia’s PSG run. Tourism & Business: Visa opened its first business lounge at Kutaisi International Airport, aiming to upgrade the premium travel experience.

Business & Tourism: Visa opened its first “Business Lounge Powered by Visa” at Kutaisi International Airport, adding a 270-square-meter premium space with relaxation, work areas, a kids’ play zone and dining. Sports Diplomacy: A Qatari refereeing team will officiate the Georgia–Romania friendly in Tbilisi, led by Mohammed Al Mazeed, as football associations deepen technical cooperation. Public Safety & Justice: Georgia’s Interior Ministry opened an investigation after a 23-year-old Indian medical student, reported missing in Tbilisi, was found dead in the Mtkvari River; authorities registered a case under incitement to suicide, while family allegations point to harassment and extortion by a landlord. Security & Politics: President Salome Zurabishvili warned at the Black Sea Security Forum that Russia is waging a “hybrid war” against Georgia, using elections, propaganda and pressure to pull the country off its European path. Health Infrastructure (Adjara): Adjara officials visited construction of a unified medical complex in Batumi, including an emergency coordination center and a multifunctional polyclinic, with gradual operations expected by year-end. Culture: Georgian director Giorgi Kharebava said cinema is “above all emotion” as he joined the Golden Linden international film jury.

EU-Russia Standoff: EU High Representative Kaja Kallas says Russian troops’ continued presence in Georgia and Moldova is a direct security risk for Europe, pressing for discussions on possible demands. Georgia-Ukraine Reset: Prime Minister Irakli Kobakhidze says any improvement with Kyiv depends on “concrete practical steps,” after a deterioration tied to ambassador recalls, sanctions disputes, and Ukraine’s push for a “second front.” Tbilisi Crime Crackdown: Georgia’s Interior Ministry reports arrests of six foreign nationals accused of running large-scale indoor cannabis plantations in rented apartments across Tbilisi, with seized drugs and cultivation equipment. Digital Identity Scrutiny: Yoti challenges researchers from Georgia Tech and UC Irvine and invites an independent cybersecurity audit of its age-assurance platform amid wider debate over how age checks handle personal data. Tbilisi Gastro Week 2026: The 5th edition of Tbilisi Gastro Week runs May 31–June 7, partnering with Studio Liberty and featuring major international chefs and wine events. Sports & Culture: Batumi hosts a European women’s chess event where 15-year-old Anastasiia Hnatyshyn leads after extending a perfect 5/5 start.

EU-Angle: EU foreign policy chief Kaja Kallas says Russian troop presence in Georgia and Moldova is a direct security risk, while Moscow dismisses the remarks and Tbilisi demands concrete steps. Diplomacy: A U.S. State Department delegation visited Tbilisi for talks with Georgian Dream, opposition, business, and faith leaders, including meetings tied to a “reset” of bilateral relations. Economy & Finance: Georgia’s Ministry of Finance sold GEL 400m debut treasury securities via syndication, with demand far above offer, and Bank of Georgia priced $300m 6.50% notes due 2031. Innovation: The National Bank of Georgia won recognition for innovation support at regional fintech forums. Energy & Transit: Kazakhstan is weighing the Baku–Supsa pipeline as an export route, after Georgia and Azerbaijan agreed to restore the line. Environment: Parliament approved a new Rioni Strict Nature Reserve to protect sturgeon spawning in the Rioni River. Culture & Society: Georgia signed a Council of Europe audiovisual co-production convention for TV series, and Tbilisi opened a new enoteca tied to a 20,000-bottle rare collection linked to Stalin, now set for auction. Justice: Six police officers accused in a Gori assault case were remanded in custody; the victim was later transferred for further medical checks.

EU-Georgia Tensions: EU foreign policy chief Kaja Kallas says any EU talks with Russia should include troop withdrawals from Georgia and Moldova, and that military limits demanded for Ukraine must be mirrored for Russia. PM Irakli Kobakhidze Responds: Georgia’s prime minister pushes back, arguing the EU should back up statements with actions that protect Georgia’s national interests. US-Georgia Reset Talks: A US State Department delegation met Georgia’s National Bank and Economy Ministry, with both sides saying they’re ready to reset bilateral relations and restore strategic cooperation. National Bank Education Push: The National Bank of Georgia and Caucasus International University launched a documentary series on the history of Georgian money, with materials planned for distribution to schools. Environment Grants: Georgia’s Ministry of Environment Protection and Agriculture signed grant agreements with the Caucasus Nature Fund to fund operations for the Aragvi and Truso protected landscapes. Energy Security Warning: NATO-linked reporting highlights growing concern in Europe about Russia targeting energy infrastructure through sabotage and cyberattacks. Markets Watch: Georgia’s capital market sees continued momentum as bond issuances draw investor interest, including a EUR 11m placement.

EU-Russia Talks: EU foreign policy chief Kaja Kallas says any future negotiations on Ukraine should include military restrictions for Russia and the withdrawal of Russian troops from Georgia and Moldova, alongside demands that Moscow stop cyberattacks, drones, and election interference. Georgian PM Response: Prime Minister Irakli Kobakhidze pushed back on Kallas’ stance, arguing the EU has long opposed Georgia’s national interests and that statements must be backed by consistent action. Armenia Gas Pressure: Russia signals it could suspend or scrap a 2013 deal that shields Armenia’s gas, oil-product and diamond purchases from export duties, warning of major cost impacts if Armenia moves toward the EU. Regional Connectivity: The Baku–Tbilisi–Kars railway’s official opening is set for June 2 in Akhalkalaki, with Georgia, Azerbaijan and Türkiye expected to attend. Economy & Finance: Parliament approved the National Bank of Georgia’s 2025 annual report, with Natia Turnava citing stable macro indicators, inflation near target, and a May 2026 rate hike to 8.25%. Tourism Update: TBC Capital reports 1Q26 visitor trips broadly flat, with revenue up slightly, and stronger spending from the EU/UK offsetting weaker flows from Russia and Israel. Sports: Georgian chess event news highlights Mai Narva’s rise into the European women’s top three in Batumi.

Office Market Watch: Colliers reports Georgia’s Tbilisi office sector stayed on a steady growth track in 2025, with 52 modern business centres (~300,000 sq.m.) and up to 150,000 sq.m. more under construction, mostly around Saburtalo, while demand is led by finance, insurance, investment, and IT/media services. Police Accountability: Georgia’s Prosecutor’s Office opened an investigation into alleged police brutality in Gori after footage of officers using excessive violence during an arrest; PM Irakli Kobakhidze called the conduct “absolutely unacceptable.” Independence Day Diplomatic Row: The German Embassy urged Parliament Speaker Shalva Papuashvili to “check the facts” after his Independence Day remarks about Ambassador Peter Fischer, escalating a public dispute. EU-Minded Protests: Opposition Alliance leaders said the May 26 Independence Day rally was the first phase of nationwide mobilization and promised broader direct engagement next; Kobakhidze downplayed turnout, saying it showed the opposition has minimal support. Regional Connectivity: Galt&Taggart estimates Georgia could gain about $200m in tourism revenue in the second half of the year as the restored Baku–Tbilisi rail route offsets Middle East travel shortfalls. Rail Politics: Robert Kocharyan questioned Armenia’s Kars–Akhalkalaki railway prospects, arguing a direct Turkey link would make more sense for trade and agriculture.

Independence Day Protests: Thousands rallied in Tbilisi on Georgia’s Independence Day, waving EU and Georgian flags and demanding a return to Europe as opposition leaders accuse the government of democratic backsliding and a drift toward Moscow. EU Talks in the Spotlight: The demonstrations come as critics say EU accession talks were shelved and street protests and crackdowns have continued for months. Independence Day Ceremonies: Alongside the rallies, Georgia held official Independence Day events, including a parade at Freedom Square with military service recruits taking oaths. Christianity Anniversary Funding: The government approved 5.3 million GEL for nationwide events marking 1,700 years since Christianity became the state religion, running from June 1 to October 14. Regional Diplomacy: Georgia’s Independence Day drew international congratulations, including from Bulgaria’s Iliana Iotova, Morocco’s Mohammed VI, and Uzbekistan’s Shavkat Mirziyoyev. Transport Update: Georgia said passenger trains on the Baku–Tbilisi–Baku route have resumed, citing strong demand and expected tourism benefits.

EU Independence Day Protest: Thousands filled Tbilisi for a pro-Europe rally on Georgia’s Independence Day, waving EU flags and demanding new elections amid claims of democratic backsliding and a shelved EU timetable to 2028. Opposition vs. Authorities: Opposition leaders said they were blocked from bringing rally equipment, while Nika Gvaramia vowed the next protests would end with “real elections” and Bidzina Ivanishvili removed from politics. Regional Diplomacy: Georgia’s Independence Day drew international messages, including Armenia’s PM Pashinyan praising “strategic partnership,” and Italy’s Mattarella urging fresh momentum toward EU membership. Transport Boost: Georgia’s railway chief said Baku–Tbilisi passenger service has resumed daily, with officials linking it to higher tourist flows. Sanctions & Crypto: The UK hit 18 crypto platforms and banks tied to Russian sanctions evasion, including a network London says can move over $1.5bn. Security Forum: OSCE states condemned Russian attacks on Ukraine at a Vienna meeting convened at Ukraine’s request, with Georgia chairing the Forum for Security Co-operation.

Independence-Day Tensions: Opposition Alliance protesters started a march from TSU toward Rustaveli Avenue, blocking roads with Georgian and EU flags after authorities denied them sound equipment; President Salome Zurabishvili framed the moment as unity and said the regime is “on the verge of collapse.” Diplomatic Signals: Italy’s President Sergio Mattarella congratulated Georgia and urged fresh momentum toward EU membership, while leaders across Europe and the region sent Independence Day messages, including Belarus and the UAE. Security & Justice: A Tbilisi court jailed two Ukrainian nationals for explosives smuggling and cocaine possession. Sanctions Watch: The UK unveiled new sanctions targeting Kremlin-linked crypto and offshore payment routes, including Georgian firms tied to Russia-focused platforms. Economy & Connectivity: Georgia and Azerbaijan resumed the Baku–Tbilisi–Baku passenger train after a six-year gap, and Georgia’s government moved ahead with a Tether-backed lari stablecoin plan (GEL₮). Public Health: Ebola screenings ramped up at three US airports, including Atlanta.