Tbilisi will terminate the contract for the purchase of subway cars from a russian company after the imposition of sanctions

The Tbilisi City Hall will terminate the contract with the russian company Metrovagonmash, which has been subject to US sanctions.

Source. This was reported by the city administration.

"Georgia applies international financial sanctions. Consequently, the Tbilisi City Hall does not intend to cooperate with the sanctioned company, and the contract with Metrovagonmash will be terminated," the statement said.

Tbilisi City Hall signed a contract for the supply of railcars with Metrovagonmash in March 2021. The russian company won a tender for the supply of 40 new railcars for the Tbilisi metro. The tender was organized with co-financing from the European Bank for Reconstruction and Development.

Last year, in March, the bank suspended the payment of about €50 million to the russian company for the cars.

In February of this year, the Tbilisi mayor's office announced that it had decided not to terminate the contract with Metrovagonmash.

"Given the fact that we could not find an alternative supplier of railcars for the price that suits us, and the transition to the next stages of the tender would have caused a 30-35% increase in the purchase price, we tried to complete negotiations with the existing supplier," said Vice Mayor Irakli Khmaladze.

On May 19, the U.S. Treasury Department adds Metrowagonmash to the sanctions list. Gold mining companies Polis and Polymetal, as well as russian officials, businessmen and top managers, were also subject to restrictions.

Background. As reported, protests continue in Georgia against the landing of the first russian plane in four years.