Georgian Dream Strengthens Relations with Iran

Transparency International Georgia’s latest report shows that as relations between Georgia and its Western allies steadily worsen, the ruling Georgian Dream party is strengthening political and economic connections with non-democratic regimes, particularly Iran.

The report points out that this path toward authoritarian states has intensified since the outbreak of the Russia-Ukraine war in 2022, The Caspian Post reports citing Georgia Today. “Georgian Dream sees non-democratic countries as political and economic alternatives to the United States and Europe,” TI Georgia states.

This shift was particularly visible in May 2024 when Prime Minister Irakli Kobakhidze attended the funeral of Iranian President Ebrahim Raisi, followed by his participation in the July 30 inauguration of Raisi’s successor where chants of ‘Death to America’ and ‘Death to Israel’ was present in the background.

During that meeting, Iran’s new president, Masoud Pezeshkian, emphasized Tehran’s foreign policy goals: “Strengthening ties with neighboring countries and the region is a priority of the Islamic Republic of Iran.” Kobakhidze responded by praising Iran’s ‘important and constructive position in the region’ and welcoming the ‘friendly atmosphere’ between the two countries.

This relationship is reinforced by growing economic interdependence. Georgia’s trade turnover with Iran hit a record $322 million in 2024, nearly triple the volume from 2012. Imports from Iran, largely made up of black metals, construction materials, plastics, and food, reached $285 million. Exports to Iran totaled $37 million.

Foreign direct investment from Iran has also noticeably expanded. While only $8 million entered Georgia between 2006 and 2012, the figure jumped to $41 million in the following 11 years. Key sectors include trade, construction, industry, and transportation.

Tourism and migration trends also fall into this path. Nearly 146,000 Iranian visitors came to Georgia in 2024, nearly double the figure from 2012, with 2018 marking the peak at 291,000. Post-pandemic, Iranian tourism is growing at an average annual rate of 19%, with 2023 alone bringing in $128 million in tourist spending. Over the past decade, nearly 10,000 Iranians have relocated to Georgia.

The TI Georgia report mentions that this deepening partnership is the result of geopolitics, warning that Georgia’s strategic ties may be changing its path and long-standing Euro-Atlantic goals.