Crisis - is an opportunity! Georgia - is a place for future opportunities!

I can imagine and understand what a surge of contempt this article will cause, but I am writing this as a professional, and it is meant for the professionals, entrepreneurs and for the true visionaries, because we have to be separated from emotions and emotional decisions. The war between Russia and Ukraine, which is undoubtedly a big tragedy, will have a significant effect on the economy of almost all the countries in the world. Therefore, I will attempt to highlight its effect on the financial sector of Georgia and describe the possible steps to obtain a long-term benefit.  

We can’t change the fact that these events have happened, nor can we avoid being influenced, and as in any crisis - this conflict has two sides.

A side of crisis and emotions, where we get a number of negative consequences:

• For small Georgia, both parties in the conflict are big trade partners. Both export and import will be difficult.
• There were sanctions applied with regard to the Russian banks, that have only touched one bank in Georgia. Besides, settlements with the Russian banks will become more complicated and will be monitored closely. 
• The flow of tourism and cash transfers will be reduced, the cash transfers from Russia are already partly banned.
• The flow of capital and Russian investments, that are highly present in Georgia, might be stopped. The cash flows could get frozen. 

All of this can and will be happening, if the entrepreneurs and the government itself would decide to give in to the emotions, and not to pragmatism.

Note, that I am talking about the national interests of a country, like any other country that will try to benefit from this situation: such as the UAE, the EU, China, Azerbaijan, Turkey etc. 

But on the other hand, Georgia has a stable financial sector and an effective national bank. That’s why if we exclude an extreme scenario, such as the world war, Georgia can and should supply a wise, weighted out state policy and the effective, demanded services from the side of the entrepreneurs and businesses. 

A side of pragmatism - where we get a number of unique opportunities:

• A transfer of business and the financial flows to Georgia. First, I would like to underline that profiting from someone else’s misfortune is not in Georgian traditions. It has always supported Ukraine in all the Ukrainian democratic maidans or even in the defence of its borders. Georgia - is a country that loves its neighbours. And above all, it has to think about helping people and businesses that are not responsible for the policies of the entire country or of some politician groups. Destroying lives and business opportunities.
• For this, you need to think quickly and act from a business perspective, without forgetting the socio-economic aspects. Demand needs to create supply. And Georgia, and all of its entrepreneurs, have to be prepared to deliver this high quality offer. 
• Provide Europeans, Ukrainians and Russians with an opportunity to move to Georgia and relocate their business. For many people, the ongoing processes are unpredictable and unacceptable. Many understand that soon they may end up behind an “Iron Curtain”. And Georgia can become attractive for them in many aspects.
• Georgia has to act effectively, in order to offer something that would interest them, if we are talking about a calculated and systematic approach and not a spontaneous decision.
• It is very likely that Georgia will become a hub for the certain flows of capital and goods. In recent years, the investment attractiveness of Georgia has decreased. Yet, in the post-Soviet space it is still considered relatively-optimal for a business country, and at the same time, a culturally familiar and close environment.

As a leader of the international consulting company Laduchi Consult, I clearly see and understand that this trend, and this opportunity could be attractive for our clients, businesses and specialists that are working in Russia and Ukraine, and wanting to leave, whether it is forced or voluntary. 

Georgia and Georgian entrepreneurs, the pragmatism and the interests of the country must dominate emotional manifestation. 

Crisis is an opportunity!