The re-export of cars from Georgia to Russia fell sharply in August after the country’s Ministry of Finance, at the urgent request of Western states, introduced a ban on the re-export of cars to Russia through the Kazbegi-Verkhniy Lars border checkpoint on the North Ossetian section of the Russian-Georgian border. So, if in July 1054 cars with a total value of $13.346 million were re-exported from Georgia to Russia, then in August only 85 units (worth $781.1 thousand) were re-exported.
According to the order of the Revenue Service of the Ministry of Finance, the ban on the supply of American-made cars to the Russian Federation came into force on August 1. And from September 26, European cars will not be allowed to cross the border either.
In the first half of this year, 4,840 cars were re-exported from Georgia to Russia. Their total cost is $65.8 million.
However, the re-export of cars from Georgia to Central Asian countries continues at the same pace. Experts have repeatedly expressed the opinion that some of these vehicles are then transported to Russia.
Over the past two years, the re-export of cars has become one of Georgia’s most important exports, reaching $1.178 billion this year – almost 33% of all exports.