About Civil.ge
Eng | Geo | Rus
Last updated: 01:04 - 23 Jun.'17
RSS
Mobile
Twitter
Facebook
Closure of Ergneti Black Market Boosted Customs Revenues
Civil Georgia, Tbilisi / 2 Sep.'04 / 14:45

This market in Ergneti in the conflict zone was
once a major trading center for smuggled goods.
Now it is closed and empty.

According to the press release issued by the Georgian Customs Department on September 1, closing down Ergneti market in the South Ossetian conflict zone, which was once a major trading center for smuggled goods from Russia, helped to increase revenues.

The Kazbegi checkpoint is the only land border linking Georgia with Russia that is controlled by the official Tbilisi. In August 2004 the revenues at Kazbegi customs checkpoint increased five-fold as compared to those in January and reached 4,6 million Lari (approximately USD 2,5 million) against the 900,000 Lari (approximately USD 500,000) in January 2004.

According to the Georgian Finance Ministry, that total customs revenues in August have doubled when compared to August 2003 and reached 65 million Lari (USD 36,1 million). Certainly not all of the growth in revenues is directly attributable to closing of Ergneti market, but the economists estimate that the impact is significant.

The Customs Department also reported that smuggling through Ergneti is estimated to have caused an annual USD 120 million damages in unpaid taxes to Georgian budget per year.

Mainly fuel, food, wheat, and tobacco products were smuggled from Russia via breakaway South Ossetia into the Ergneti Market and then to the rest of the Georgia. The goods were also smuggled from Georgia to Russia - mainly alcohol used for producing the counterfeit vodka in North Ossetia. However, the Georgian authorities provide no estimates for the volume of this trade.

Market in Ergneti was closed down by the Georgian authorities in late May and early June, causing protest of the authorities in breakaway South Ossetia.

Latest News
23 Jun.'17 01:04
Moscow Cuts ‘Investment’ Funding for Tskhinvali
90% of South Ossetia’s budget for 2017 was subsidized by the Russian Federation.
22 Jun.'17 17:20
Crime Wave Stirs Public Outcry in Abkhazia
Public demands action to stop “lawlessness” in the region, authorities promise to investigate the cases.
21 Jun.'17 16:59
Senior MEP: Mukhtarli Case ‘Very Alerting’
Rebecca Harms called for “an independent investigation” both in Azerbaijan and Georgia.
21 Jun.'17 16:16
Parliamentary Opposition Renews Calls for Plebiscite over Constitution Reform
Movement for Liberty - European Georgia submitted 150,000 signatures to the Government administration.
21 Jun.'17 14:21
Venice Commission on Georgia’s New Constitution
The Council of Europe’s (CoE) advisory body for legal affairs released its opinion on June 19.
21 Jun.'17 11:48
FM Janelidze Joins EaP Ministerial in Luxemburg
Federica Mogherini chaired the EU and EaP foreign ministers’ gathering to discuss further cooperation.
20 Jun.'17 19:05
PACE Media Freedom Rapporteur on Mukhtarli Case
Volodymyr Ariev calls for immediate release of Azerbaijani journalist.
20 Jun.'17 18:23
Prime Minister Kvirikashvili on Mukhtarli Case
Giorgi Kvirikashvili calls for avoiding “premature conclusions” over the Azerbaijani journalist’s case.
20 Jun.'17 17:40
President Declines Request for Convening Special Parliamentary Session
Margvelashvili caled on the Parliament to continue working on a ‘consensual’ text of the constitution.
20 Jun.'17 16:07
Georgian Journalists Request Meeting with PM Kvirikashvili
Journalists speak of ‘delayed’ investigation and unaddressed questions in Afgan Mukhtarli’s case.

About Civil Georgia
Civil.Ge © 2001-2017, Daily News Online
Registered office: 2 Dolidze Str, 4-th Floor.
76