About Civil.ge
Eng | Geo | Rus
Last updated: 14:34 - 23 Oct.'16
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 Oct.'16 14:34
Repeat Elections in Four Precincts Go to Runoffs
UNM and GD candidates will compete in the second rounds in Marneuli and Zugdidi.
22 Oct.'16 20:39
Polls Closed, Vote Count Underway
Outcome of repeat elections will decide whether runoffs will be required in Marneuli and Zugdidi.
22 Oct.'16 14:11
CEC: Voter Turnout in Four Precincts by Noon
The highest voter turnout was recorded in precinct No.108 in the village of Jikhashkari by noon.
22 Oct.'16 11:00
Polls Open for Repeat Elections in Four Precincts
Repeat vote should decide whether races for Zugdidi and Marneuli majoritarian MP seats go into runoff.
21 Oct.'16 19:24
One Soldier Dead After Army Truck Overturns in Eastern Georgia
Accident occurred near the village of Bodbe when the truck was transporting 37 soldiers.
21 Oct.'16 13:50
Final Results of Adjara Elections
4 parties cleared threshold: GDDG - 45.13%; UNM - 29.62%; Burjanadze’s party - 5.89%, APG - 5.7%.
20 Oct.'16 19:10
Constitutional Court Elects New Chairman
Zaza Tavadze, who is a member of the Constitutional Court since 2010, took the chairmanship.
20 Oct.'16 14:29
Georgian, Russian Diplomats Meet in Prague
Russian MFA: “readiness to continue pragmatic course to gradually normalize” ties was reaffirmed.
20 Oct.'16 11:27
Georgia’s Foreign Trade in Jan-Sept. 2016
Foreign trade turnover declined 4.3% y/y, excluding one-off import of medicines.
19 Oct.'16 16:11
President Welcomes Proposal to Launch Group on Drafting Constitutional Amendments
President offers the group to be co-chaired by him, PM and parliament speaker.

About Civil Georgia
Civil.Ge © 2001-2016, Daily News Online
Registered office: 2 Dolidze Str, 4-th Floor.