Georgian economy buffeted by Russia, Ukraine crises - president

By Adrian Croft BRUSSELS (Reuters) - Georgia's economy has been buffeted by the Russian currency crisis and the Ukrainian conflict but it is still growing strongly, President Georgy Margvelashvili said on Thursday. Margvelashvili spoke to Reuters from Strasbourg, where he watched the European Parliament ratify an EU-Georgia trade and cooperation accord, describing this as an important step towards Georgia's eventual goal of EU membership. The Georgian economy was generally in good shape but had suffered some side effects from the plunge in the Russian rouble and the Ukraine crisis, he said in a telephone interview. "The fluctuation of the rouble has hit some of our main products on the Russian market which are basically alcohol and beverages," Margvelashvili said. "The products have become more costly in that market so for sure it has hit some of our wine production. It is not catastrophic, but we do feel the problems with the rouble," he said. Russia reopened its market for Georgian wine, mineral water and fruit last year after imposing bans in 2006, but relations between Moscow and Tbilisi are still tense following their 2008 war over two Moscow-backed breakaway regions in Georgia. The Ukraine crisis had also brought trade, economic and security complications for Georgia, but the economy was still growing at 5-6 percent per year, Margvelashvili said. The Georgian economy "has quite an ability to survive hard times and that's what we are doing," he said. The IMF said in November it expected Georgia's economy to expand by 5 percent this year, in line with the government's forecast, after growth slowed down to 3.3 percent in 2013 from 6.2 percent the year before. A political crisis last month raised concerns in the West about Georgia's commitment to integrating with the EU and NATO. Prime Minister Irakly Garibashvili sparked the resignation of his foreign minister by dismissing his pro-Western defence minister. Margvelashvili weighed into the row last month, urging Garibashvili to re-commit to European integration. Western countries have also expressed concern that the government has persecuted political opponents, an issue raised by some European Parliament members on Thursday. He said the level of democracy had increased in Georgia but the country's officials needed time to adapt to a new political environment. Margvelashvili said Georgia was determined to remain on its path towards joining the EU and NATO. "Absolutely. It is not a choice of our political leadership, it's not a choice of any party. It is a unanimous choice," he said. (Editing by Hugh Lawson)