Georgian PM pledges domestic business “will be free”,”not face problems” amid continued political tensions

Georgian Prime Minister Irakli Kobakhidze on Thursday pledged businesses across the country would “remain free” and “face no challenges”, amid domestic political tensions with ongoing public protests against the Government’s decision not to have European Union accession talks on agenda until 2028.

Georgian Prime Minister Irakli Kobakhidze on Thursday pledged businesses across the country would “remain free” and “face no challenges”, amid domestic political tensions with ongoing public protests against the Government’s decision not to have European Union accession talks on agenda until 2028.

Making the comment in an interview with Imedi TV, Kobakhidze emphasised the Government’s responsibility for the “significant achievement” of “ensuring business freedom” since the ruling party came to power in 2012.

The Prime Minister criticised “misinformation being propagated by some domestic media outlets and political figures” regarding the Government’s decision, urging business leaders to “engage responsibly” with the information provided.

If you are a businessman, you should have a little more responsibility to read the [Government statement] from cover to cover. The first paragraph states that we not only continue our efforts towards European integration but also aim to become a member of the EU by 2030, [and that] we will meet over 90 percent of the obligations outlined in the Association and Free Trade agreements [with the bloc]”, Kobakhidze said.

When you have [this statement] and find yourself believing the falsehood that was initially spread by Mtavari [Arkhi], Formula, and TV Pirveli, and later repeated by the Ambassador of the European Union [about the Government suspending EU integration], I see an issue of good faith here. This raises concerns about indifference towards your own country”, he added.

When making a political statement, whether you are a businessman or anyone else, it is important to take responsibility for what you say. You should be considerate and thoroughly read the statement you are responding to. Everything is laid out clearly, yet some continue to repeat the falsehoods spread by the United National Movement media and echoed by the EU Ambassador. This behaviour indicates dishonesty. They are aware of the facts, which is why they avoid public discussion”, Kobakhidze said.

The Prime Minister said the opening of negotiations “should not be viewed as a singular issue [used] for blackmail against Georgia”. He emphasised the importance of regular European Council meetings to “prevent the subject from being used as leverage”.

What is important for us is that the European Council meets once a quarter, and they do not allow this issue to become a point of blackmail against the Georgian people. This is the main issue we aimed to avoid. I am prepared for everything else”, he said.

Kobakhidze underscored the Government’s “commitment” to European integration, asserting it remained a “primary choice without alternative” for the country.

During the interview the Prime Minister alleged “pressures being placed on businesses”, particularly by “those linked to the previous Government”, and warned against “return of political racketeering seen before 2012”.

Even today, they are applying pressure on businesses, engaging in bullying, and trying to meddle in politics just as they did before 2012. However, they can no longer operate in the same way; they can no longer confiscate property or extort money from people. However, in this form, they attempt to undermine business”, Kobakhidze claimed.

If a businessman chooses to align with those political forces, it suggests to me that they are simply waiting to outlast the political changes. I have no other explanation for this situation. Regardless, business will remain free, which is our main achievement since 2012, and businesses will not face any problems. We are committed to ensuring this”, he added.

The Prime Minister also emphasised business “should not interfere deeply in political affairs”.

Just as the Government cannot encroach on the freedom of business, business cannot enter politics to such an extent. These principles hold true in all countries. However, when scenarios like Maidan [protests in Ukraine between 2013-2014] are created, these principles seem to no longer apply. One of the goals of our detractors is to undermine all principles within the state to achieve their aims”, he said.

In comments on his recent meeting with the domestic business community, Kobakhidze suggested the business representatives should share their thoughts on the discussion. He described the gathering as “important” for him, adding it had “allowed for an exchange of opinions” and opportunity for participants to “ask critical questions”, “many of which” he said were addressed during the gathering.

Everyone heard the questions and answers, and I believe that most business leaders had their inquiries resolved, whether related to European integration or overall stability. I made a promise to everyone to ensure stability, peace, and tranquillity in our country”, he said.

The Prime Minister noted “short-term fluctuations” in the economy “always impact businesses” and the exchange rate of the national currency, adding in the past, both the exchange rate and the overall economic situation had “stabilised quickly each time” following political tensions.

The situation is similar now. As soon as this intense resource issue was resolved, the lari’s exchange rate stabilised immediately. Of course, the National Bank played a significant role in this process, and economic conditions are gradually becoming more stable. From January, we anticipate a full recovery of the economic growth rate that we have experienced over the past four years, so there is no threat to businesses regarding this matter”, he said.

After our meeting, we proposed holding a public discussion with business representatives who had expressed critical views, in an open format. When we reached out to them, they requested we not disclose their names; however, most people would likely understand who we were referring to. They ultimately declined the invitation for a public discussion. If they believe they are right, why not participate in the conversation? They seemed hesitant and refused to engage in a live broadcast. We aimed to facilitate a constructive discussion”, Kobakhidze added.

In response to a question about his views on domestic companies who took critical positions with regards to the Government but “profit from economic ties with Russia”, the Prime Minister claimed “some people resent the Government’s pragmatic policy”.

In response to this, we ask them: if you trade with Russia and export your goods, how can you simultaneously demand that we adopt an impractical approach towards Russia and impose the same sanctions [on the country as the international penalties placed on it for its invasion of Ukraine]?”, Kobakhidze said.

When the European Parliament urged us to impose sanctions on Russia, did anyone raise a critical voice against their demands? [They prefer] to continue trade relations with Russia, and we cannot blame them for this – on the contrary, we ourselves are in favour of maintaining trade relations with Russia. However, if you are a businessman profiting from this and engaging in trade with Russia, why have you not spoken out against the European Parliament’s unreasonable demands to the Georgian authorities?”, he added.

Kobakhidze concluded by claiming the businesses in question did “not have answers to these questions, which is why they struggle to participate in the discussions”.

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