According to the government's decision, all the enterprises that buy Rkatsiteli and Kakhuri Green grapes from vineyards for at least 90 Tetri will receive 35 Tetri as a subsidy. According to Prime Minister Irakli Gharibashvili, 150 million GEL from the state budget will be spent on harvest subsidies this year.
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"Viticulture and winemaking is a strategic sector of the country, and our government has declared this sector one of the main priorities since coming to power. Taking a right, practical and tangible steps on our part brought a significant result. You remember that until 2012, there was only no encouragement for viticulture and winemaking. Still, the government directly intervened, asking our winegrowers to cut down the vineyards and not to hand over the grapes. Viticulturists were under direct pressure. We remember many examples of this very well. In addition, we remind you that if there were several dozens of companies in viticulture and winemaking, up to about 30 companies, this year there are more than 300. Their revenues amount to hundreds of millions of dollars. About 25,000 winegrowers are involved in this industry. It means strengthening their families.
We have decided that we will undoubtedly provide subsidies this year as well. The price of one kilogram of white grapes will be at least 90 tetri.
Not a single kilogram of grapes will remain unclaimed, and the state will provide maximum support to our winegrowers. About 300 wine companies will be involved in the process. We communicated with them; we had good meetings", - stated Irakli Gharibashvili.
According to the government, a record harvest of about 300,000 tons is expected this year.
"Subsidization is a necessary and only way to help the development of the industry, to promote and maintain the dynamics that we have had for years in the direction of viticulture and winemaking. Last year we had a record export of 107 million bottles of wine. This year we are maintaining growth dynamics in almost all priority markets; For example, in Poland, we have almost 40% growth. According to the data of the first seven months, we have 16% growth in the USA, almost double the figures in Japan; we also have growth in China, the Baltic countries and other priority markets; however, due to the unfortunate events in Ukraine, the war, in a market that is one of the most important for us, We have about a 50% reduction, which has had some impact on the export of wine products. Therefore, a decision on subsidy has been made. This year, we are helping the industry, winegrowers, and enterprises to maintain the dynamics of the industry's development" - this is how the Minister of Environment Protection and Agriculture, Otar Shamugia, explained the decision to subsidize the harvest.
In 2021, the government spent 138 million GEL on subsidizing the harvest. The reason for the subsidy was last year's over-harvest and the global pandemic. However, according to the "Transparency International - Georgia" research, several corruption problems are observed in the process of subsidizing the harvest; among them, preference is given to companies that donate to the ruling party and are connected to high-ranking officials.
A significant amount of the subsidy, more than 107 million GEL, was transferred to the state-owned LLC "Harvest Management Company".
"Harvest Management Company" LLC often announces simplified purchases. In 2021, 31 of the 83 companies registered for subsidy in the Wine Agency belong to current or former "Georgian Dream" members or are related to them and their families. The amount of 30,343,512 GEL was given to these 31 companies, which is 22% of the total subsidy amount.
Companies related to Prime Minister Irakli Gharibashvili received simplified purchases: "Wine Kakheti" LLC of his brother-in-law, Alexander Tamazashvili, "Kindzmaraul" LLC, the wine cellar of the former member of the majority of Parliament, former governor of Kakheti Irakli Shiolashvili, and the company of the former Minister of Internal Affairs, Alexander Chikaidze - LLC Rtvelis", they received a total of more than 800,000 GEL.
The 9-day-old company received the simplified purchase worth 900,000 GEL, "D G Elma" LLC, whose owner Tamar Alughishvili is the daughter of Nugzar Alughishvili, a businessman from Dedoplistskaro. According to reports in the media, Nugzar Alughishvili is a member of the close circle of Irakli Gharibashvili's family and the actual manager of his business.
Five large companies receiving the subsidy are related to the "Bolero and Company" company, whose head is Vakhtang Karichashvili. In total, these companies received more than 6 million GEL. According to media reports, Vakhtang Karichashvili is the business partner of Bidzina Ivanishvili's cousin, Ucha Mamatsashvili, and together with him, he owns a company in Britain.
"Kotekhi-Gurjaani Wine Factory" and "Dugladze Wine Company" LLC received more than 2 million GEL in total. These companies are related to Zaal Dugladze, a member of the Georgian Parliament from "Georgian Dreams". The wine company could participate in the subsidy program if it received more than 1000 tons of grapes from the vineyard. Due to this barrier, small wineries could not benefit from the subsidy.
