Nikoloz Alavidze, a former Deputy Minister of Economy and one of the founders of the initiative “Georgia First,” says Georgia’s second inclusion in an EU sanctions package represents serious reputational damage for the country.

Alavidze made the assessment in response to the EU sanctions imposed on the Kulevi oil refinery.

Speaking on PalitraNews’ “Resume” program, Alavidze said that while the amount of text dedicated to Georgia in the sanctions package may not be large, the fact itself is of serious significance.

“Georgia’s inclusion in the 21st package and the discussion of Georgia will account for approximately 10%. At first glance, 10% is not much and may seem positive, but it is extremely serious because Georgia is already appearing in a sanctions package for the second time. The history of sanctions is about preventing Russia from financing its barbaric war, and the message is that those who help Russia wage war are doing something very bad, and because your moral compass is broken, we will impose restrictions.

“For some, sanctions are even an opportunity, for example, for the economies of India, China and Pakistan. The past four years have been profitable because they bought Russian oil very cheaply.

“Being included in a sanctions package gives us nothing except reputational damage. The war will end, but negative labels will remain, and Georgia will also be associated with these negative labels,” Nikoloz Alavidze said.

He also said that another warning from the EU could indicate that the company may face problems in its relations with international partners, insurance companies and financial institutions.

“Another warning means that this company may face problems with international partners, insurance companies and financial institutions. It is possible that the relevant EU services, which, of course, make decisions based on evidence, no longer trust the government and have moved to communicate directly with the company.

“During the preparation of the previous package, this company was included together with Azerbaijan’s state oil company. At that time, the matter was considered as a whole and a postponement was granted with specific conditions. Most likely, during the first package, they did not speak with this company. Accordingly, the state undertook certain commitments. That is why it was removed from the list and we ‘got away with it’ thanks to Azerbaijan.

“The 21st package confirmed that the EU and relevant institutions no longer trusted certain commitments made by the Georgian state and established direct contact with the company,” Nikoloz Alavidze said.