An examination of the geopolitical situation of Georgia demonstrates that it plays a key role in the whole Caucasus region and far beyond it. Criminalization processes and formation of corrupt ruling clans in Georgia in post-Soviet era, and local armed conflicts seriously undermined security both national and regional. During last decade internal armed conflicts in Georgia have been transformed into uncontrolled criminal zones, and smuggling was intensive through these territories.

An analytical review of the current situation in Georgia after the “Rose Revolution” in November 2003 allows better understand the reasons and atmosphere in which contraband trade was flourished in the country, how it threatens stability and security in the Caucasus region and in Europe, and what measures have been taken by the Government of Georgia to minimize it. Contraband trade through conflict zones in Georgia is not just a national problem. The more Georgia becomes integrated into the European community the more it is responsible for European security.

The presentation looks at the current state of fighting against contraband trade by examining the following factors: Georgian legislation and its implementation; the activities of organizations, which are responsible for struggle against contraband and implementation of projects aimed at its minimization in Georgia; and political, economic, and administrative measures aimed at minimization of contraband trade in Georgia.

Our assessment of contraband trade is based on data from the Georgian Border Guards, Department of Intelligence, Ministry of State Security, Ministry of Internal Affairs, General Prosecutor's Office, courts, local and international NGOs, opinions of experts, analyses of publications in Georgian media, and interviews with people who are directly involved in smuggling. This helps us to understand the main forms, mechanisms, and groups which participate in contraband trade through different regions of Georgia which is a country of international transit ways from east to the west, and from north to the south.