Estonian investors: it’s the end of investments into Georgia

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Estonian businessmen who have been looking towards investment opportunities in Georgia say that the war will keep investors away for 10 years.

Äripäev writes that many Estonian businessmen were attracted to the rapidly growing Georgian economy that expanded 12.4 percent last year, mainly thanks to direct foreign investments.

One of the businessmen who have invested in Georgia is Mati Väärtnõu, CEO of Kellakeskus Ltd. He says that he may now lose his investment of about one million kroons that he made in a jewellery and fashion store in Thbilisi, capital of Georgia. “We have a valid rent contract by the end of the year,” he said.

Robert Antropov, chairman of Paldiski Port, said that the war in Georgia will affect the country’s economy and force out foreign investors.

“It is not important who started the war, the fact is that it will set back the whole economy, create instability and insecurity for investors and businessmen,” said Antropov who has visited Georgia in search of business opportunities.

Germund, a company owned by Aivar Vomm and Raivo Oissar, has been importing Georgian nuts into Estonia. The two men are also developing real estate in Thbilisi and are financing the construction of a residential apartment building with 71 apartments.

Andres Koger, CEO of Koger Partnerid that renovates the building of the Estonian embassy in Thbilisi, refused to comment the company’s business interests in Georgia.

One of the recent investments made by Estonians in Georgia was the acquisition of a winery in the Kahhethi area by Marcel Vichmann, Aivar Urm, Meelis Asi, Arnout Dirk Lugtmeijer and Sergei Balõbin. The businessmen invested about EEK 22 million in the project.