Page 63 - GEORptNov21

Rising wheat prices drivers for a sharp rise in Georgian inflation
The Russian government said at the start of February it would impose a floating tax for wheat exports from June 2. In Georgia, about 80,000-100,000 tonnes of wheat are harvested every year. That covers less than 10% of the overall consumption countrywide.
Last year, 87.3% of the wheat imported into Georgia (430,236 tonnes) came from Russia. Georgia plans to partially replace Russian wheat with Kazakh grains with the Russian wheat export tax doubling per tonne, according to executive director of the Georgian Flour Producers Association Levan Silagava, speaking in March.
The main drivers for a sharp rise in inflation, seen by Galt & Taggart analyst Kavtaradze as climbing to above 10% by the end of the year (the IMF’s projection is 9.4%), are base effects following subsidies paid by the government in the winter of 2020-2021 and the increase in the price of bakery products consecutive to rising wheat prices expected on the regional market. Kavtaradze added that “inflation will be affected by rising prices for bread products, although the pressure of other categories may be eased and balanced. But this does not mean that there will be a significant downward trend in inflation in the coming months.”
9.1.10 TMT sector news
EU may finance undersea fibre-optic cable to Georgia
Georgia’s post-Covid connectivity plan targets investments of €3.9bn
The European Union (EU) is considering financing the construction of a new fibre-optic cable in the Black Sea, said Lawrence Meredith, the European Commission's Director for Relations with the Eastern Neighborhood and Institution Building, who paid an official visit to Georgia in mid-October.
"Strengthening digital connections is being considered by laying fibre-optic cable on the seabed. At the same time, we want to support Georgia's regional digitalization and develop internet access in the regions,” Meredith said at a conference in Batumi, quoted by Business Media Georgia (BMG).
The Georgian government itself announced the laying of a new internet cable in the Black Sea in early 2021. At that time, Minister of Economy Natia Turnava said that Georgian State Electrosystem (GSE) was considering the construction of a high voltage power transmission cable connecting Romania. Along with the same cable, the state-owned company is also studying the possibility of laying an internet cable. The World Bank's assists GSE in evaluating the project.
"The Black Sea submarine cable project, which is currently being studied, aims to connect the power systems of Georgia and Romania (in a broader sense - the regions of the South Caucasus and the Eastern Balkans) via the Black Sea. The technical survey, it should be a 500-kV HVDC cable, about 1,000 MW capacity," said GSE officials. The project also envisages the laying of a new internet cable at the bottom of the Black Sea.
Today, Georgia has access to the internet mainly through the internet cable on the bottom of the Black Sea. Caucasus Online is the owner and operator of the fibre-optic cable connecting Bulgaria-Georgia.
Connectivity has been put at the top of the agenda in Georgia, following a visit earlier this month from Europe's commissioner for neighbourhood and enlargement, Oliver Varhelyi.
In an address to officials, Várhelyi said the country was facing issues due to its lack of communications connectivity with other nations and to vital utilities such as in electricity provision.
As a result, during his trip Várhelyi announced a series of proposals to
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