Mariam Kvrivishvili: “Turkey is Georgia’s leading trade partner and a major investor.”
Verdict: FactCheck concludes that Mariam Kvrivishvili’s statement is TRUE.
Trade turnover between Georgia and Turkey exceeded USD 3.2 billion with Turkey leading the list at 13.8% of the total. Turkey has held the position of Georgia’s top trading partner for the past 20 years and ranked second in the late 1990s and early 2000s. The country maintains its leading position primarily due to imports which surpass exports by a factor of six or more. Turkey occasionally ranks in Georgia’s top five destinations in terms of exports alone, but not consistently.
Turkey was Georgia’s fifth-largest source of foreign direct investment, sharing the fourth-fifth place with the United States in total FDI inflows between 1996 and 2024. Turkish TAV operates at Tbilisi and Batumi international airports. Two countries are also linked by major infrastructure and energy projects, including the Baku-Tbilisi-Ceyhan oil pipeline, the Shah Deniz gas pipeline and the Kars-Akhalkalaki railway. These projects have brought significant investments from Turkey, Azerbaijan and the United Kingdom over the past three decades. However, one major project failed to materialise – the USD 800 million Namakhvan hydroelectric power plan. Following its cancellation, the arbitration court ordered Georgia to pay USD 383 million in compensation, amounting to more than GEL 1 billion.
Considering the statistical accuracy of the statement (Turkey is Georgia’s leading trade partner and a significant investor), FactCheck concludes that Mariam Kvrivishvili’s statement is TRUE.
Analysis
Commenting on trade and economic relations with Turkey, Mariam Kvrivishvili stated: “Turkey has been Georgia’s leading trade partner and a major investor for years which clearly confirms the strong economic ties between the two countries and the growing dynamics of cooperation.”
Trade turnover with Turkey exceeded USD 3.2 billion in 2024 with Turkey leading the list at 13.8% of the total. Although Turkey’s share decreased to 12.3% in January-June of 2025, it continued to hold the leading position.
A free trade agreement between Georgia and Turkey was signed in November 2007 and entered into force in November 2008. Whilst the agreement facilitated trade, Turkey had already become Georgia’s leading trading partner in 2006 and has held that status for the past two decades. It consistently ranked second prior to 2006, following Russia.
Graph 1: Trade Turnover with Turkey (USD Million)
Source: National Statistics Office of Georgia
Georgia has consistently run a negative trade balance with Turkey over the past 30 years. This deficit averaged 74% between 2013 and 2024 with imports outweighing exports by six to seven times.
Turkey’s top position in trade turnover is largely driven by imports. Turkey accounted for an average 18% of Georgia’s imports from 2013 to 2024 – but only 7% of exports. Turkey’s export share was notably higher between 1995 and 2010, peaking at 17%.
Turkey ranked seventh in Georgia’s export destinations in the first half of 2025. It held sixth place in 2023 and 2024 and was seventh again in 2019. Its best export ranking came between 2015 and 2017 when it reached third place. Turkey has ranked second only to Russia in domestic exports since 2014 and has not moved above the fourth place since 2014 (export data before 2014 is not available).
Graph 2: Trade Turnover with Turkey (USD Million)
Source: National Statistics Office of Georgia
What do we sell to Turkey and what do we buy from Turkey? Georgia exported USD 145 million worth of ferrous metals, USD 62 million in clothing and USD 40 million in electricity to Turkey in 2024. The exports for 2023 included USD 83 million in electricity, USD 57 million in clothing and USD 38 million in ferrous metals. As for imports, Georgia purchased USD 170 million worth of pharmaceuticals, USD 77 million in oils and petroleum products and metal structures from Turkey in 2024. Imports in 2023 included USD 153 million in pharmaceuticals, USD 85 million in light vehicles and USD 63 million in metal structures.
The second part of Mariam Kvrivishvili’s statement concerned investments. Georgia received USD 93 million in foreign direct investment (FDI) from turkey in 2024, ranking fifth in this category. Whilst Turkey has mostly ranked between fourth and sixth in recent years, it sometimes reached second place in the 2010s. Only the results from the first quarter are available as of August during which Turkey invested USD 28 million in Georgia – over 15% of total FDI. However, it is too early to draw conclusions about any trend changes based on a single quarter. Turkey’s share of investments exceeded 27% in the first quarter of the previous year but the annual share decreased to around 7%.
Graph 3: Foreign Direct Investment from Turkey (USD Million)
Source: National Statistics Office of Georgia
Georgia received a total of USD 28.8 billion in FDI between 1996 and 2024 with Turkey holding fifth place at an 8% share. It would be more accurate to say that Turkey and the United States share fourth-fifth place as the difference between them is minimal – just 0.1%.
Graph 4: Total Foreign Direct Investment Received in 1996-2024 (USD Million)
Source: National Statistics Office of Georgia
Georgia is connected to Turkey by the Baku-Tbilisi-Ceyhan oil pipeline the Shah Deniz gas pipeline and the Kars-Akhalkalaki railway. These projects have brought significant investment inflows into Georgia from Azerbaijan, Turkey and the United Kingdom. Turkish TAV operates at two international airports – in Tbilisi and Batumi.
The largest hydroelectric power plant in independent Georgia’s history – Namakhvan HPP – was to be built by a Turkish company. The project was valued at USD 800 million. The plant was expected to have a capacity of 433 MW and produce 1.5 billion kWh annually. The project did not take place. Then Prime Minister Irakli Gharibashvili stated in 2021 that the plant would no longer be built under the current contract terms. Georgia later lost an arbitration case against the Turkish company and was ordered to pay USD 383 million (GEL 1.035 as of August 2025).
Overall, whilst Turkey has been Georgia’s leading trade partner for the past two decades, most of the trade turnover comes from imports. Turkey’s position in export fluctuates, sometimes within top five, sometimes not.
Turkey ranks fifth in FDI. The two countries are linked by significant energy and infrastructure projects. Although cooperation could have deepened, the USD 800 million Namakhvan HPP project did not materialise and Georgia had to pay nearly half that amount in arbitration compensation.
Considering the statistical accuracy of the statement (Turkey is Georgia’s leading trade partner and a significant investor), FactCheck concludes that Mariam Kvrivishvili’s statement is TRUE.
