It is spread over three kilometers on the Georgian side, and 500 meters on the South-Ossetian side. In the middle, the checkpoints of the de facto border between South Ossetia and the rest of Georgia. The border is porous and the controls are random for the public transports connecting the Georgian cities to Tskhinvali.

On the Georgian side, kilometers of tangerines for the whole Russian territory. On the South-Ossetian side, cheap Russian gas for Georgian buyers.
And yet, Ergneti market which recently opened, has nothing in common with its previous configuration. The Georgian and South-Ossetian traders are standing along the road, leaving the plains bordering this road deserted when it was before crowded with retailers.

From political declarations to economic reality

December 2004. In two days the wholesale greengrocers of the region pass the word around over the phone: it is once again authorized to cross the border, unofficially. In Ergneti and its deserted market, the 350 to 400 usual resellers who come from Western Georgia (Batumi, Poti and Zugdidi’s regions) are back.

This market may once again supply the whole Russia with seasonal goods. The road is lined with apples and tangerines. « Those products are the most profitable ones », explains Avtandil. « We sell half of our goods to Russian resellers and half to South-Ossetians resellers. Then, they sell those products on markets from North-Caucasus up to Moscow». In his Jigouli and its trailer, Avtandil carries a two tons load of tangerines from Zugdidi, and also from Gali, in Abkhazia. In front of the continual comings and goings of utility vehicles and trucks, about a hundred tons of tangerines is sold every day.

The abundance of such products demonstrates the importance of this market for the Georgia’s parallel economy: not only for the resellers, but also for the thousands of Georgian farmers. As a matter of fact, to prevent such exportations in the long term would deprive this population from incomes, and thus would create the risk of a crisis in the country. The Russian demand is huge, and the whole Georgian production may largely be sold off on its market only.

Is there any other alternative? The official Russian-Georgian but also Armenian-Russian trades transit on the second road connecting Georgia to Russia, the so-called Military road. It winds through the high Caucasus mountains, above an altitude of 3000 meters. But this way is official, and as such is subject to taxation. It is also much too long and located too high for our street vendors, used to the quick and profitable Ergneti’s business. « I can wait here from one hour to a maximun of two days for my goods to be sold. » adds Avtandil.

Southward, the Armenian market could be another alternative, but it is « too small and not easily accessible », says Otar, a second reseller. Adding also: « In Armenia, we have to provide top-quality products because this market is demanding, more than in Russia ».

Hundred of resellers patiently wait for customers. Cars and trucks registered in Russia and South-Ossetia come here to get their supplies and cross back the Georgian checkpoint without any trouble. An opposite attitude of the Georgian frontier guards would probably suffocate a part of Georgia’s economy.

Persisting oil

Taxis but also lines of heavy-load trucks (bearing the sign Pustoi) are standing along the road between the Georgian and the South-Ossetian checkpoints, located only 200 meters away from each other. Those trucks are private Russian carriers, working for occasional buyers. On the request of Russian or South-Ossetian customers, they go on the Georgian side to load goods and then deliver it in Russia.

A stone’s throw away, hundreds of containers scattered before the South-Ossetian checkpoint but also much further away have been deserted. On those, the prices and the types of fuel are still encrusted in the rust. The oil trade which was once enriching the multitude of local resellers that they be South-Ossetian or Georgian, ceased after the Georgian authorities intervened in last June. Or just about it…

Rolan, Georgian taxidriver comes here to fill up sometimes. «Here the petrol 93 is less expensive. One liter costs 1 lari compared to 1.20 in Georgia» he says, as an experienced customer. « But the quality of the petrol is not as good here, it’s unofficial Russian petrol. Sometimes, there is also Chechen petrol, but it is of very low quality.», he adds.

While serving his customer, Zaza indicates that «the situation is not the same as it was before. The 500 fuel resellers that were working here are gone. We are just three people left running this kind of business». In front of his two 50 tons containers, Zaza explains that «customers have become scarce, and they just come here for their personal consumption, 30 liters at the maximum.» Despite the fact that there is no competition anymore, his incomes have dropped from 400 to 200 laris a month.

One of his South-Ossetian colleague joins us. He explains : « the business is quite bad for people of modest means. But the economic blockade on fuel, which was demanded by Saakashvili, benefits certain people. In fact, the smuggling has never stopped. Some local high-officials - Georgian and South-Ossetian- are involved in the trade of fuel, but also cigarettes and liquors». Zaza adds : « they are also supported by someone from North-Ossetia». Names are given. « One just has to spend days and nights here, as I do, so as to find out the importance of this traffic. The convoys may also take a parallel path, through the plain.», he finishes.

But the very name "market" is refuted by those who do their business here, in Ergneti. Affraid that this place might be once again closed down by the Georgian authorities, all of them call it a trading and meeting place. Not a market.