Press Digest 25.11.2014
Why has GEL devalued?
“The issue of Georgia’s occupation must be put on top of their agenda"
Annexation of Abkhazia is underway
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Why has GEL devalued?
“Value of GEL currency against USD has reportedly dropped again. In different currency exchange booths, one can buy 1 USD for 1.80 GEL. The National Bank last determined the GEL exchange rate on Friday. As the analytical experts maintain, if nothing changes in this direction for the better, the prices on different products will rise in Georgia as the new year approaches. What has caused this drop in GEL value? What kind of repercussions will it have? Will the prices on our product actually increase soon? The Alia gazette has discussed these issues with President of the National bank, Roman Gotsiridze,” reports the Alia gazette.
"It is a bit difficult to establish actual causes having resulted in the drop in GEL value right now. First we must carefully look over all factors having resulted in the devaluation of our currency. As you know, the National Bank very often uses such a term as “foreign reserve fund” that the National Bank can control via its leverages. This so-called reserve fund has not increased recently and this obviously means that the demand has remained the same; however, some problems have been detected in the currency distribution process. From this it follows that we have been faced with the deficit in foreign currency and only time can tell us whether this issue can be resolved easily or not,” states Mr. Gotsiridze.
"At this point in time, we lack any precise statistics giving us accurate information regarding the foreign investments in Georgia at this time. However, as it appears, the foreign currency that the Georgian Government was to get from different international organizations and that was to be poured into different infrastructural projects has not been transferred yet because of the fact that the aforementioned projects have stalled,” maintains the respondent.
“For 11 months, they have withdrawn as much as 7.4 billion GEL from our budget while 1.7 billion GEL is still left to be spent before the new year. Thus, these figures show that if compared to the last year, the situation in this direction has remained the same and our budget funds have been used rather inconsistently, and this obviously is nothing good for us. Although this year’s budgetary gap is not expected to be as alarming as in 2013,” alleges the President of the National Bank.
"GEL has devalued only recently and our key task now is to avoid increase in product prices and inflation; however, at the same time, I cannot hide that the National Bank is not obliged to handle issues linked to the country’s economy, employment or the currency rate. The bank will interfere in this process only if volatility in the GEL value will be actually alarming. GEL was devalued last year too. The only thing that we have left to do now is to hope that the scenario of 2013 will not be repeated this year too and the present processes will prove to be of short term,” concludes the respondent.
“The issue of Georgia’s occupation must be put on top of their agenda "
"Georgia has reportedly urged the UN to convene a Security Council Session after an agreement between Russia and the De-facto Government of Abkhazia has recently been completed. Foreign Minister Tamar Beruchashvili has already filed a report at UNO with a request to hold a session. As the Foreign Minister announced at yesterday’s briefing, Georgia will raise the issue of the recently negotiated illegal deal between Russia and Abkhazia at the international level and will involve different international organizations in this process,” reports the Rezonansi gazette.
“We have already urged the UNO and OSCE to call for the session.
We will definitely raise this immensely acute issue with the European Union, European Council as well NATO. We plan to visit different foreign countries in the near future. In addition, we have already held phone conversations with our partners. The Georgian Government will also undoubtedly raise this issue within the Geneva negotiations on December 10. To cut it short, we plan to strongly urge our international partners to condemn this so-called agreement and call loudly to the Federation of Russia to stop trampling on international law, norms and principles,” declared Tamar Beruchashvili.
"As TSU professor Korneli Kakachia states, the UNO Security Council special meetings are conducted only in extraordinary situations when international stability is at threat. “Any member state can request a special session and raise this or that issue that concerns it, endangers its safety or interests. I am clueless regarding the fact of whether or not this session will bring about any change but this step can really be defined as politically and morally wise,” announced Mr. Kakachia.
"Political expert Irakli Kikiani has positively evaluated the government’s move to call for the UNO special session. In the expert’s words, Georgia should have taken this step long ago. “Georgian diplomats must become more active in this direction. This is a supreme body the decisions from which must be taken into account under any circumstances. Thus, raising this issue was mandatory. The issue of Georgia’s occupation must be put on top of their agenda. The time when Russia will have to back down and make concessions will undoubtedly come. It will be forced to yield and return our occupied regions to us one day. Therefore, the International Community must not stop putting pressure on the aggressor before this day comes,” concludes Mr. Kikiani.
Annexation of Abkhazia is underway
“If the Government does not want Russia to annex Abkhazia and merge our territory with it, they must give this process a legal assessment as soon as possible. Cases must be filed against different separatist leaders as well as Khajimba,” declares “European Democrats” Leader, Paata Davitaia, regarding a recently completed agreement on “Alliance and Cooperation” between Russia and Abkhazia. Russia is expected to allocate 5 billion Russian rubles to the occupied region of Abkhazia in order to implement the agreement. In the words of Vladimir Putin, Russia will double the financial resources channeled in Abkhazia. According to Putin, the Russian investments in Abkhazia total 11 billion Russian rubles. In addition to their assistance, Russians have restored more than 160 buildings in the region. As the state run Agency Itar-Tas reports, the President of Abkhazia’s puppet regime declared in Sotchi that his country was forced to go through a very difficult situation for a rather long period of time; however, after the completion of this agreement, the de-facto leader hopes, that the country will advance to a new phase and the quality of life will improve for his people,” reports the Rezonansi gazette.
“According to the Georgian President, this agreement between Russia and Abkhazia is nothing more than a step towards annexation Georgia’s breakaway region. If we believe the President, this move from the Russian leader, jeopardizes stability in the South Caucasus and even more aggravates the Russian-Georgian relations. “We must bear in mind that if this issue is not handled adequately, Russia will keep pursuing its aggressive policy against us. Thus, we call loudly to the International Community to unite and fight against Russia’s annexation policy through joint efforts. Discussing this immensely vulnerable issue at different International Forums is of paramount significance today. We are simply obliged to take immensely heedful and well-measured steps and stay calmly focued while fighting against the aggressor,” announced Giorgi Margvelashvili.
“As Head of Abkhazia’s Supreme Council, Gia Gvazava, states the recently finalized agreement has, in fact, made Abkhazia a region of Russia. “We’ve repeatedly warned the Georgian authorities that sooner or later, this deal would be realized. Through the agreement, Russia has simply swallowed our region. It has brought Abkhazia under its wing by deciding to permanently finance it and, this, obviously, is nothing more than the annexation of the region,” declares Mr. Gvazava, who criticizes Georgia’s policy in terms of Russia by stressing that “embracing this state” and curing favour with it is not necessary. “I can get that we are a small country and we cannot grapple with the Russian bear. Clearly though, “embracing” the present Russian authorities can bring us nothing good. After Power changes hands here, the possibility of launching a constructive dialogue with the new government can surface but today we do not really stand a chance of doing this,” contends Mr. Gvazava.
"As expert on Caucasus issuers, Aleko Kvakhadze claims, the new government’s determination to thaw relations with Russia has not yielded any tangible results. On the contrary, it has lead Georgia to a crisis. Each time the issue of Crimea, Luhanks and Donets is raised at the international forums, not even a single word is spoken regarding our breakaway regions. Tell me is this right? Should this be so? If we refuse to involve the International Community in this process, Russia will keep taking arbitrary steps by pursuing its aggressive policy. According to international law, this document is not valid; however, if we keep being at our ease, Russia will strain to increase the number of those states that will recognize the independence of our breakaway region,” asserts the respondent
"It is worth noting that the agreement between Russia and Abkhazia is set to be valid for 10 years with the possibility of being extended for 5 years. Under the deal the parties assume the responsibility to pursue a coordinated foreign policy, establish a common defense, security as well as social and economic space, providing each other with social and economic support etc. Within the agreement, Russia also plans to integrate its troops with that of Abkhazia and to shield the region from aggression from other states. It should also be pointed out that under the agreement any military incursion in one of the country will be viewed as an attack on the other and each party will be obliged to provide the victim of aggression with due military support and assistance. One of the articles of the agreement also says that Russia will take all necessary measures to simplify the process of obtaining Russian citizenship for Abkhazians. In addition, according to the agreement, the amount of pensions distributed to the Abkhazian elderly will be determined by the legislation of Russia,” concludes the author of the article.
