Our investigative team has uncovered that Georgia plays a crucial role in facilitating Russia’s military supply chain, despite international sanctions. Drones, computer processors, GPS devices, and memory cards, although banned from being exported to Russia since December 2022, are still finding their way into Russia via Georgia.
Uncovering the Routes In one experiment on May 21, we posed as customers seeking to transport 30 drones from Tbilisi to Samara. Contacting the transportation company “Cairo Logistics,” we were assured by an operator named Evgeni that the drones would reach their destination through Azerbaijan or Iran, with a 100% guarantee of delivery. The price quoted was 500,000 rubles ($5,815), significantly higher than the regular rate, indicating that bribes were involved.
Cairo Logistics, operating under the legal name LLC “Service-Multi,” openly admitted to altering origin documents to circumvent sanctions. This company, registered in Moscow in 2018, claims to have extensive experience in transporting sanctioned goods by rerouting through Turkey or Azerbaijan.
Another Experiment: Integrated Circuits – We further tested the waters by attempting to send 60 Intel processors and 30 HDD memory cards to Russia via “Cargo Rapido.” Unlike other companies that refused outright, “Cargo Rapido” agreed to transport the items unofficially, without export declarations, for a 10% “insurance” fee. The operator, Natalia, assured us that everything would be handled off the books.
The Data Speaks Volumes – Our investigation revealed significant increases in the export of dual-use items from Georgia, particularly to neighboring countries and Central Asia:
- Radio Navigation Equipment: Exports surged by 213% in 2023, totaling $304,520. These devices, which can be used for GPS navigation, have been found in downed Russian aircraft in Ukraine.
- Integrated Circuits: Georgia exported $261,580 worth of these components in 2023, a 36% increase from 2021. These circuits are critical for military equipment.
- Digital Data Processing Blocks: Armenia received $3 million worth of these items from Georgia in 2023, a dramatic increase from previous years. These blocks are essential for modern digital electronics used in military applications.
- Sound/Image Receiving and Transmitting Equipment: Exports to countries like Kazakhstan and Azerbaijan increased by 34%, with these nations acting as intermediaries to Russia.
The Legal Loopholes – Exporting dual-use items from Georgia requires a permit from the Revenue Service. However, enforcement is inconsistent, allowing sanctioned goods to pass through. The Georgian Revenue Service claims to have tightened controls, yet our findings and official statistics suggest otherwise.
International Scrutiny and Recommendations
Georgia has been identified by the US State Department and the European Union as a key player in sanctions evasion. To combat this, recommendations include adopting measures similar to Lithuania, which has imposed national sanctions and tightened export restrictions to prevent sanctioned goods from reaching Russia.
Conclusion
Our extensive investigation highlights Georgia’s pivotal role in the illegal supply chain feeding Russia’s military. Despite the sanctions, dual-use items continue to flow through a network of companies exploiting legal loopholes and logistical routes. In response to our findings, we approached the Georgian Revenue Service for an interview to discuss their enforcement measures and the loopholes our investigation revealed. Unfortunately, they declined our request for an interview, providing only a general written statement that lacked any substantive detail on their strategies to address this critical issue.
For a more in-depth look at the investigation and detailed data, visit our full article.
