The Dynamics of the Development of Economic Relations Between Russia and Georgia Under the Rule of “Georgian Dream”

It is no longer news that modern politics and economics are inseparable and interdependent substances.Accordingly, alongside the implementation of political systemic changes, the nature of economic relations often changes as well.In this regard, Georgia is no exception.Specifically, following the systemic changes that occurred after the parliamentary elections of 2012, the new government had a different economic vision from its predecessor, which ultimately significantly altered the architecture of the Georgian economy.However, systemic shifts in the Georgian economy developed not through revolution but rather evolution, and they shifted proportionally to the change in political direction.In general, the Georgian economy is as vulnerable as the country itself, with its political and institutional components.It is excessively influenced by both domestic and external factors, which mostly make it unstable.Economic instability, in turn, is typically a source of increased risks both from socio-economic and political perspectives.The economy of independent Georgia has gone through multi-phase stages of turbulence throughout its existence.It has been directly tied to the level of political stability in the country and fluctuated accordingly.The issue of economic relations with the Russian Federation has been a chronically politicized topic, which has constantly remained a matter of contention within the Georgian political spectrum.Part of the political spectrum considered it unacceptable to establish close economic ties with a country driven by imperialist ideas and, at the same time, an occupying force, on the grounds that such a relationship could have disastrous consequences for the country politically.This argument was not without basis, considering that close economic ties with Russia have repeatedly become problematic for various states.Typically, the Russian market is a lever at the Kremlin's disposal, used to subdue "disobedient" neighbors and partners.However, on the other hand, there have always been pragmatists who have consistently tried to separate and distinguish the political segment from the economic one.They believed that maintaining economic ties with Russia was vitally important for Georgia's economic interests.

Authors

Publication Details

Journal
European Journal of Economics and Management
Published
2025-01-01
DOI
https://doi.org/10.46340/eujem.2025.11.2.1
Primary Topic
Global Socioeconomic and Political Dynamics
Type
article
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article

The Dynamics of the Development of Economic Relations Between Russia and Georgia Under the Rule of “Georgian Dream”

Amiran Khevtsuriani, Zurab Kvetenadze
European Journal of Economics and Management
Global Socioeconomic and Political Dynamics
article

The Dynamics of the Development of Economic Relations Between Russia and Georgia Under the Rule of “Georgian Dream”

Amiran Khevtsuriani, Zurab Kvetenadze
article en

Abstract

It is no longer news that modern politics and economics are inseparable and interdependent substances.Accordingly, alongside the implementation of political systemic changes, the nature of economic relations often changes as well.In this regard, Georgia is no exception.Specifically, following the systemic changes that occurred after the parliamentary elections of 2012, the new government had a different economic vision from its predecessor, which ultimately significantly altered the architecture of the Georgian economy.However, systemic shifts in the Georgian economy developed not through revolution but rather evolution, and they shifted proportionally to the change in political direction.In general, the Georgian economy is as vulnerable as the country itself, with its political and institutional components.It is excessively influenced by both domestic and external factors, which mostly make it unstable.Economic instability, in turn, is typically a source of increased risks both from socio-economic and political perspectives.The economy of independent Georgia has gone through multi-phase stages of turbulence throughout its existence.It has been directly tied to the level of political stability in the country and fluctuated accordingly.The issue of economic relations with the Russian Federation has been a chronically politicized topic, which has constantly remained a matter of contention within the Georgian political spectrum.Part of the political spectrum considered it unacceptable to establish close economic ties with a country driven by imperialist ideas and, at the same time, an occupying force, on the grounds that such a relationship could have disastrous consequences for the country politically.This argument was not without basis, considering that close economic ties with Russia have repeatedly become problematic for various states.Typically, the Russian market is a lever at the Kremlin's disposal, used to subdue "disobedient" neighbors and partners.However, on the other hand, there have always been pragmatists who have consistently tried to separate and distinguish the political segment from the economic one.They believed that maintaining economic ties with Russia was vitally important for Georgia's economic interests.

European Journal of Economics and ManagementVol. 11(2)
Openalex Percentile: Top 85%
Global Socioeconomic and Political Dynamics
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The Dynamics of the Development of Economic Relations Between Russia and Georgia Under the Rule of “Georgian Dream” — Amiran Khevtsuriani, Zurab Kvetenadze · European Journal of Economics and Management (2025) | TGRS Research Map | TGRS