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Russia’s new Black Sea naval base alarms Georgia

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In early November, 50 opposition MPs in Georgia urged NATO and EU member states to unite against Russia’s plan to establish a permanent naval base in Abkhazia, a breakaway region. The move has raised concerns that it could involve Georgia in Russia’s conflict in Ukraine and disrupt Tbilisi’s plans for a Black Sea port. Abkhazia, though internationally recognized as part of Georgia, has been under Russian and separatist control since the 1990s.

Georgia’s foreign ministry condemned Russia’s plan as a violation of sovereignty, but officials downplayed the immediate threat. Satellite imagery suggests ongoing dredging and construction at the port, indicating potential infrastructure for larger cargo ships. Some fear the base could involve Georgia in a conflict between Russia and Ukraine.

The head of Georgia’s Foreign Relations Committee emphasized the government’s focus on immediate threats, such as Russian forces near the occupation line. Despite assurances, concerns exist that the naval base could impact Georgia’s mega-infrastructure project—a deep-sea port in Anaklia, crucial for the Middle Corridor, a fast route between Asia and Europe avoiding Russia.

The Anaklia project was canceled in 2020, with accusations that the government yielded to Moscow’s interests. The cancellation led to international arbitration. The government maintains plans to revive the deep-sea port.

While Georgia has a pro-EU population, its government has a complex relationship with Moscow. Accusations of a pro-Russian stance were labeled “absurd,” citing EU agreements and aspirations. However, the delicate situation underscores Georgia’s vulnerability due to its history of conflicts with Russia and lack of NATO security.

Georgia alleges Russia is using the naval base to pressure against EU integration. A decision on Georgia’s EU candidate status is expected at a December summit. Officials assert Russia aims to undermine Georgia’s stability and European integration, showcasing its influence in the South Caucasus.

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Domino’s Pizza indicates shutdown of operations in Russia

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The owner of the Domino’s Pizza franchise in Russia has announced plans to close its branches and file for bankruptcy, signaling an end to its operations due to the challenging business environment in the country.

DP Eurasia, which operates 171 Domino’s Pizza outlets in Russia, has decided not to proceed with the sale of its pizza chain’s shops in the face of increasing difficulties. This move comes in the wake of Western companies disengaging from Russia following the Ukraine invasion and economic sanctions.

While some businesses have chosen to exit, others, including Domino’s, have faced criticism for remaining. DP Eurasia owns 68 of the Domino’s Pizza shops in Russia and franchises 103 to local operators. The company’s presence in Russia will be terminated as a result of this decision.

DP Eurasia, which also holds master franchise rights for Domino’s in Turkey, Russia, Azerbaijan, and Georgia, had been evaluating its options after sanctions were imposed. The Russian economy has been impacted by sanctions since the conflict in Ukraine in February 2022, leading to several well-known companies shuttering their operations.

Pressure was applied to other major brands like McDonald’s and Coca-Cola to follow suit. Some companies, such as Unilever, have defended their continued operations in Russia, citing complexities and potential takeovers by the Russian state.

Despite this, Domino’s Pizza Inc., the American multinational and master franchisor, clarified that it had ceased supporting the Russian market through its subsidiaries since early 2022.

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