Georgia's Automotive Gateway: US Cars Journey to Russia

Georgia, a pivotal re-export hub for US vehicular imports, finds many vehicles ultimately making their way to Russia, revealing a complex network amidst international sanctions.

Nestled in the Caucasus, Georgia has emerged as a significant conduit in the used car industry, particularly involving vehicles initially sourced from the US. The bustling automotive epicenter, notably in Rustavi, spans vast tracts filled with various models, including Mercedes, Jaguars, and even Teslas. A cornerstone in this trade is Caucasus Auto Import (CAI), which retrieves impaired cars from US auctions, rehabilitating them for resale. As demand for Western vehicles surges, Georgia's exports have soared, making vehicles the second-largest export after copper. Despite officially halting trade with Russia post-Ukraine invasion, loopholes imply a persistent flow of vehicles to Russia, routed through allied nations like Kazakhstan. Georgia's affordability in repairs and strategic geography amplify its role in this complex trade network, bolstering a thriving second-hand car market. The country's swift, cost-effective repair capabilities mark it as a cornerstone in re-export activities, though the political implications of its automotive transactions linger.