26.06.2025. (Caucasian Journal) The European Bank for Reconstruction and Development (EBRD), a key driver of economic development in Central and Eastern Europe, Central Asia, and the Southern and Eastern Mediterranean, is also an active player in the South Caucasus. The Bank's investments in private enterprise, infrastructure, and sustainable development are very significant.
Today, we are privileged to interview Alkis Vryenios DRAKINOS, Director and Regional Head of the Caucasus for the EBRD, who began his tenure in Tbilisi in 2023.
▶ ქართულად: The Georgian version is here.
Alexander KAFFKA, editor-in-chief of Caucasian Journal: Dear Alkis, welcome to Caucasian Journal! Thank you for your time. You’re no stranger to our region, correct? Could you begin by sharing your professional background and previous experience in the South Caucasus?
Alkis DRAKINOS: Dear Alexander, many thanks for inviting me to the Caucasian Journal. I see it as a privilege to have the opportunity to share my experience and views with your readers. Yes, you're right, I'm not a stranger to the Caucasus. I first visited the region 30 years ago when I was a young Associate Banker at the EBRD, and it all started here in Tbilisi! This was my first professional visit bearing the business card of EBRD in a country of operations of the Bank, and it marked me for life.
As for my professional background and previous experience, I first graduated from Athens University in 1985 (BA Economics) and continued my studies, obtaining an MSc in Regional Development from Pantion University, Athens in 1989, and an MBA from Manchester Business School in 1992 with a scholarship from the Onassis Foundation. In 2005, I also completed the London Business School Corporate Finance Programme.
Combining studies with full-time employment in my younger years, I started my career at the National Bank of Greece in the 80s, and then joined the EBRD in 1993, where, until 2000, I supported banking sector projects in a number of countries, starting with Georgia. In 1998, I opened and headed the EBRD office in Armenia and then moved to the private sector where from 2000 through to 2012, I worked as Senior Manager, Financial Advisory Services at KPMG, as International Transaction Officer for the European Union Mission in Kosovo, as Principal Banker at Black Sea Trade and Development Bank - with whom I had my fist banking sector project in Azerbaijan twenty years ago, and as Head of New Markets at Eurobank EFG.
Finally, I rejoined the EBRD in 2012 to head the EBRD Office in Turkmenistan, before taking on the role of Deputy Director for Greece in 2015. Then, over the period 2017-2023, I headed the EBRD Resident Office in Tashkent, and from September 2023, I came to Tbilisi as Regional Director for the Caucasus.
AK: Perhaps there is a memorable episode from the Caucasus you could you share with our readers?
AD: Thank you for this question, Alexander. As I already mentioned above, that first ever business trip to the Caucasus 30 years ago marked my life.
I still remember landing at Tbilisi International Airport, which looked so different the today's airport, at 4:00 AM in the morning, feeling exhausted after a 6-hour flight from London. At the time, the building that stood out was the VIP facility there, and I remember the airplane was guided by the ground staff very close to that spot (I wonder is it still in use?), so as soon as the door opened, there was a band playing the national anthem of Georgia and a few meters away, was standing the then President Shevardnadze waiting for us so early in the morning to greet us and welcome us to the country.
The warm words of President Shevardnadze opened my eyes, making me understand that working for the EBRD is not just a job...
I was not expecting such honour and such a rich buffet lying on the VIP hall’s dining table, and I frankly think none of us did. Our most senior representative at that mission was a gentleman by the name David Hexter, who in today's EBRD structure would be the Managing Director for Financial Institutions. Thank God, David was a smart and talented senior professional who fortunately pulled out by heart a great response to the President’s welcome speech without complaining that we had not prepared for him a briefing note or draft speech…
At the time, the warm words of President Shevardnadze opened my eyes, making me understand that working for the EBRD is not just a job. At that point in time, realizing the importance of the Bank’s mandate and the way the EBRD was viewed in Georgia and its other Countries of Operation marked me for life. This is why I am here, 30 years later, feeling proud to continue working for EBRD and especially in the Caucasus: Here in Georgia, the culture of my birthplace makes me feel at home.
Here in Georgia, the culture of my birthplace makes me feel at home.
AK: Quite impressive! Now, your Tbilisi office oversees the EBRD’s activities in all three countries—Armenia, Azerbaijan, and Georgia (and this aligns with the focus of our Caucasian Journal). What do you think is the reason the EBRD consolidates these countries' projects under a single framework? Is it operational convenience, or does the EBRD see integration potential? Are there pan-Caucasian or multi-country projects that must be mentioned?
AD: In my mind, Armenia, Azerbaijan, and Georgia are rightfully considered as a distinct region due to their combined geographical, cultural, and geopolitical uniqueness. The three countries together are at the intersection of Europe and Asia, boasting their territories as a true borderland between civilizations. The Greater and Lesser Caucasus Mountains dominate the landscape, creating natural barriers and diverse ecosystems stretching between the Black Sea and the Caspian Sea, having a distinct climate. Due to their location and geography, they have also been influencing trade between civilizations for centuries. Further, the ethnic mix and diverse traditions and the coexistence of Christian and Muslim traditions make the three countries a unique, diverse region with distinct variety as well as common cross-country values such as respect for the elders and deeply rooted family values. But besides these geographic and social facts that the region is blessed with, including having considerable natural resources and significant renewables potential, I see the three countries as the perfect conduit for trade between Asia and Europe – the heart of the Middle Corridor, as well as a region of strategic importance for global peace and security.
Regional scale projects that are worth exploring and seem worth supporting are those that capitalize on the region’s cross-continent connectivity and combined renewables potential. I like the term pan-Caucasian you used. Concepts and projects that when fully developed could fit the term pan-Caucasian include (i) all those promoting the Middle corridor, as well as (ii) the Black Sea cable and the Transcaspian cable that together can be seen as mutually supportive systems of energy transmission infrastructures, providing energy security and exports, improving the lives of local populations and connecting all three Caucasus countries.
I see the three countries as the perfect conduit for trade between Asia and Europe – the heart of the Middle Corridor, as well as a region of strategic importance for global peace and security.
AK: Moving from regional to national levels, could you discuss the current state and prospects of EBRD partnerships with each country you oversee?
AD: We discussed above many good reasons why Armenia, Azerbaijan, and Georgia form a unique region and why the three countries together have the scale, the resources, and the potential to attract projects of intercontinental importance.
The EBRD, being a demand-driven institution, has customized its Country Strategies and operational priorities in reflection of the distinct features of economic development and transition needs in each of the region’s countries.
Armenia, Azerbaijan, and Georgia together form a unique region with the scale, resources, and potential to attract intercontinental projects.
This approach worked exceptionally well in 2024, when in the three countries combined, we invested 1.25 billion euros, marking a historical record. We achieved this by focusing on:
(i) private sector development - particularly of SMES through local banks, and connectivity infrastructure priorities in Armenia;
(ii) renewables development and banking sector support in Azerbaijan;
(iii) private sector development - particularly of SMES through local banks, plus renewables development in Georgia.
AK: Are there specific EBRD projects—completed, ongoing, or planned—you'd like to highlight in any of these countries?
AD: Thinking of an indicative project in each country to underline the diversity of sectors and possibilities that the region has, I would pick Armenia’s Sisian-Kajaran road corridor, Azerbaijan’s Asco Caspian Shipping project, and Georgia’s Ruisi wind project.
In the case of Armenia’s Sisian-Kajaran road corridor, we are financing the construction of a new easy-to-drive road in the country’s mountainous centre-west regions, aiming at supporting landlocked Armenia’s connectivity and export potential to the North and South.
We heard that one of the first cargos that these ships would be transporting would be sugar from Brazil to Uzbekistan! This alone shows the potential and the opportunities that are open for the region as a whole.
In the case of Azerbaijan, we are financing the purchase of two vessels for ASCO Caspian shipping that will be operating in the Black Sea and beyond, supporting trade of goods across continents through the Middle Corridor. Indicatively, we heard that one of the first cargos that these ships would be transporting would be sugar from Brazil to Uzbekistan! This alone shows the potential and the opportunities that are open for the region as a whole.
As for Georgia, I would pick the over 200 megawatt Ruisi wind project, the largest wind renewables project in the region, supporting green transition, contributing to regional energy security, and strengthening Georgia’s energy trading potential, possibly including the Back Sea Submarine Cable in the future.
Notwithstanding the above operations, we are active in supporting the private sector and SMEs development in all three countries, either directly or through banks. We support critical infrastructure, especially in water and waste management, and are proponents of green and inclusive growth and catalysts of good governance.
AK: What message do you have for potential EBRD’s regional partners—government bodies, companies, entrepreneurs?
Over the years, EBRD has cumulatively invested 12 billion euros in the region.
AD: I would flag that over the years EBRD has cumulatively invested 12 billion Euro in the region, and that we have offices in Baku, Tbilisi, and Yerevan, plus that our teams of over 80 staff from over 10 nationalities comprising of professionals with strong sectoral expertise.
We scrutinize our counterparties for integrity, promote digitalization, and have a strong track record in responding to crises such as the foreign debt crisis in Greece, the COVID pandemic, the earthquakes in Türkiye, and Russia’s war on Ukraine, to name a few from a longer list.
My concluding message is that we are a strong demand-driven development IFI promoting transition to green economies, advancing stronger economic governance, and strengthening human capital and equality of opportunity for all through all our financing.
AK: Beyond your EBRD role, you're a seasoned banking and finance expert. How do you assess the investment climate and FDI prospects in these countries?
AD: Stating common knowledge, successful FDI attraction by any country is a function of its political and macroeconomic stability, business climate, conducive legal framework, growth potential, market size, and transport, energy, and telecoms infrastructure.
In the case of the three Caucasus countries, each one is in a different phase of the economic transition cycle, has different competitive advantages, faces different development challenges, and the economies of all three are structured differently.
▶ I see GEORGIA boasting a well-diversified and resilient high-growth economy, but its newly formed political landscape is seen as a risk by some possible FDI providers.
▶ AZERBAIJAN possesses rich hydrocarbon resources coupled with significant wind and solar potential, but the legislative, regulatory, and corporate governance frameworks need further improvement to catalyse economic diversification.
▶ In ARMENIA, while economic growth is supported by strong energy, banking, pharmaceuticals, and information technology sectors, lingering geopolitical tensions could still be seen by some as potential risks to the economy.
Living in Tbilisi and visiting Yerevan and Baku often, I see Georgia boasting a well-diversified and resilient high-growth economy, but its newly formed political landscape is seen as a risk by some possible FDI providers. In turn, I see that Azerbaijan possesses rich hydrocarbon resources coupled with significant wind and solar potential, but the legislative, regulatory and corporate governance frameworks need further improvement to catalyse economic diversification; and in the case of Armenia, I see that while economic growth is supported by strong energy, banking, pharmaceuticals and information technology sectors, lingering geopolitical tensions could still be seen by some as potential risks to the economy.
I also believe in the combined potential of the three Caucasus countries to draw investment that addresses global challenges such as climate action and the development of sustainable trade and transport links.
While each country continues to shape its own policies to attract FDI, I believe the EBRD is particularly well-positioned to support these efforts through targeted investments and policy support. At the same time, I also believe in the combined potential of the three Caucasus countries to draw investment that addresses global challenges such as climate action and the development of sustainable trade and transport links. These countries’ strategic location between Asia and Europe offers a unique opportunity to generate lasting prosperity for their peoples.
AK: Your tenure coincides with Georgia and Armenia's steps toward closer European integration. Do you have any comments regarding this?
AD: European integration is a reforms heavy multi-year transition process and over the last years the two countries have been following different paths towards coming closer to or even integral parts of the European Union. Personally, I remain hopeful for their success and will follow closely how they navigate the challenges ahead. I wish to see them realise their visions.
Furthermore, I see increasing engagement between Azerbaijan and the EU, particularly in the context of existing and potential energy and transport corridors. This deepening cooperation underscores the strategic proximity of the Caucasus to Europe and offers hope that such initiatives will continue to bring Azerbaijan and the EU even closer together.
AK: Finally, are there any additional insights or perspectives you'd like to share with our readers?
AD: It has been a wide-ranging conversation and I would like to close by sharing that I am deeply fond of the Caucasus region and wish to see it reaching its full potential in achieving lasting peace and economic prosperity for its peoples, connecting Asia and Europe, contributing its fair share to the global climate action. Finally, being highly appreciative of the region’s natural beauty and rich traditions, I also wish to see the three countries become a first-choice tourism destination to get the region more widely known and cherished.
AK: Thank you very much!
Read the Georgian language version here.
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