Russia suspends free trade agreement with Georgia

Georgia has resumed wine exports to Russia in 2013 for the first time since 2006 embargo. Photo by N.Alavidze, 30 Jul 2014 - 23:17, Tbilisi,Georgia

Russia’s Ministry of Economic Development has developed a draft law to suspend the agreement between Russia and Georgia on free trade, Russian media reports.

The draft bill was uploaded on an official portal where authorities disclosed legal information.

The initial free trade agreement was signed on February 3, 1994.

Russian media stated the suspension of Russia’s free trade agreement with Georgia has been agreed by other agencies within the Russian Federation, including the Ministry of Foreign Affairs, Ministry of Economic Development and Ministry of Justice.

Russia’s move could be related to Georgia’s signing of the Association Agreement (AA) with the European Union (EU), which will bring Georgia closer to the west.

On July 18 Parliament of Georgia ratified the AA, which included the Deep and Comprehensive Free Trade Area agreement (DCFTA), which will come into force on September 1 this year.

Meanwhile Georgia resumed wine exports to Russia in 2013 for the first time since 2006. Exports of Georgian mineral water, fruits and vegetables were approved to be sold on the Russian market and will begin to be exported soon.

Georgian officials have not made any statement responding to Russia’s intentions to suspend its free trade agreement.