Caucasus Business Week #114

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September 21, 2015, Issue 114 PRIVATBANK’S FORMER SHAREHOLDER AND DIRECTOR TO MANAGE CAPITAL BANK

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September 21, 2015 #114

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BE INFORMED, DO BUSINESS

Construction of Nenskra HPP Begins

leksandre Chochia, the Privatbank’s former shareholder (1.1%) and director, will manage Capital Bank.

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LIBERTY BANK MANAGEMENT RESHUFFLES ANNOUNCED FOR OCTOBER 1

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leksi Khoroshvili, Chairman of the Liberty Bank Audit Committee, will be promoted to the position of the Director General of Liberty Bank. The news became known to CBW exclusively.

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MOODY’S: GEORGIA’S HIGH RATING REFLECTS RATE OF ECONOMIC GROWTH

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he high rating of Georgia - Ba3 reflects the high rate of economic growth of Georgia stated in the report of the international rating agency Moody’s Credit Analysis: Georgia”. Pg. 10

COST OF LIVING GROWS TO 157.9 GEL

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s of the minimum food basket, a working man needs 157,9 GEL for living. The index exceeds by 2,3 GEL comparing to the rate of July, while - by 7,3 GEL if compared to August, 2014.

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MCDONALD’S OPENS NEW RESTAURANT IN TBILISI

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cDonald’s new restaurant opened in Tbilisi. The opening ceremony was attended by Tbilisi Mayor David Narmania and the Vice Prime Minister Giorgi Kvirikashvili.

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BATUMI SOCAR HOSTED RECEPTION OF ELISO BOLKVADZE’S MUSIC FESTIVAL

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atumi “SOCAR” Office held reception for Eliso Bokvadze music festival. Among the honored guests were globally well known Azerbaijan pianist Perhad Badalbeili.

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Georgian Railway Starts Fulfilling Georgia-EU Association Agreement Georgian Railway has started fulfilling the Georgia-EU associated membership agreement, under which the company must introduce 8 main instructions and regulations. In this respect the experience of the EU member countries is of crucial importance. To share their experience representatives of the European Railway Agency (ERA) arrived in Georgia. The delegation is led by ERA executive director Libor Lochman, who attended the September 18 workshop at the Radisson hotel and shared the ERA experience to the Georgian Railway representatives.

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THINGS GEORGIAN PM DID IN CHINA

Internet Market is Saturated with Provider Companies, but Monopoly Still Runs

On August 14, 2015 the Georgian Economy Ministry Agency for Innovations and Technologies sealed an agreement with Detecon company, a member of the German Deutsche Telekom Group.

The agency announced an inauguration of developing universal high-speed internet infrastructure in Georgia. Under the agreement, the German party will carry out preparatory works for the proj-

ect implementation. However, the process has become questionable for both private and NGO sectors. The project calls for providing about 2 000 settlements with broadband internet network. All secondary schools and libraries will be switched to the new infrastructure. The government asserts all providers and operators will have unlimited access to the network without any discrimination. Pg. 6

Dimitri Kumsishvili: GEL will Strengthen in Medium-term Period

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Kakha Kaladze: USD Further Rise will Affect not only Power Sector Pg. 10 Huawei and Georgian Government’s Current Cooperation Plans MARCO XU Director of Tbilisi Huawei Technology Co.

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Tea-Packing Enterprise Opens in Ozurgeti

New Building Code – New Standards to Construction Companies The new building code has been already developed. The parliament will discuss the document in autumn session. Construction companies and the housing sector experts have been long waiting for developing and enacting this document.

Finally, the Authorities have satisfied this demand. The new building code is expected to be enacted at the end of 2015.

The bill was forwarded to the Government. The

working variant was developed jointly with construction companies, sectoral associations and various offices. The document includes many regulations, the Economy Ministry says.

The document obliges construction companies to submit geological and expert conclusions. The new code also introduces mandatory certification of engineers and architects, as well as a concept of adjacent zones near public spaces.

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GeoPlant company has launched a new tea-packing enterprise in Ozurgeti, the Guria Region, as part of the Produce in Georgia state program. The enterprise is equipped with modern technologies in line with international standards.

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Protests in Kakheti

Batumi Investment Forum 2015 Summary With over 200 participants, Investment Forum Batumi 2015 was successfully held in Batumi at the Hilton Hotel in the Black Sea Region of Ajara.

The event was organized by Cushman & Wakefield | Veritas Brown together with the Georgian National Investment Agency and the Govern-

ment of Autonomous Republic of Ajara. The forum brought together key policy-makers, government officials, investors and businesspeople who discussed different investment opportunities and business prospects across the Ajara region. Business Week is proud to share the insights of the event that have significantly changed the investment climate in Georgia.

Ajara A.R. Finance and Economy Minister David Pg. 9 Baladze opened the Forum.

This year’s harvest season has seen a very poor start in Georgia so far, with Gurjaani grape farmers taking to the streets last week to protest the low prices put on their product.

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2 MAIN EVENTS NEW US AMBASSADOR IAN KELLY ARRIVED IN TBILISI

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mbassador Ian Kelly and his wife Francesca have arrived in Tbilisi.

As the Ambassador has told reporters at Tbilisi International Airport, he has been working as a diplomat for 30 years and always wanted to serve in Georgia.

“I feel very confident in saying that I don’t think you will find a stronger advocate for Georgia and its Euro-Atlantic vocation, and I don’t think you’ll find a more passionate supporter for deepening U.S. – Georgian relations” – said Ambassador Kelly I hope to present my credentials tomorrow and because I have to present my credentials, I obviously don’t want to say too much before I meet the President tomorrow. But let me just say that my main priority I think will be to support Georgia and to deepen bilateral relationships between the U.S. and Georgia.

ARGUS CASPIAN - BLACK SEA TRANSPORT CORRIDOR 2015

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nternational Conference ‘Argus Caspian Black Sea Transport Corridor 2015’ has been opened in Hilton Batumi today.

Chairman of Ajara AR Government Archil Khabadze welcomed the invited guests. The heads of 14 countries’ vehicles and transportation companies will share experience and innovations of their companies for two days. They will also talk about the development of transport corridor in economic turbulence conditions, regional transit devaluation and decreased business activities.

The forum is attended by representatives of major oil and transportation - logistics companies, including more than 120 delegates from oil refineries and fuel users from Azerbaijan, Bulgaria, Ukraine, Turkey, Spain, Venezuela, Singapore and other countries.

GEORGIAN PARLIAMENT HOSTS INTERNATIONAL CONFERENCE ON TRANSPARENCY

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fficials from about 20 countries are in Tbilisi to participate in an international conference about legislative openness.

Parliament of Georgia is hosting the two-day Open Government Partnership’s (OGP) Legislative Openness Working Group (LOWG) conference.

The OGP is a multilateral initiative of the United States and Brazil, in which 63 governments work together with citizens to promote transparency, fight corruption and use technology as an enabler of governmental openness.

The two-day forum Openness Obligation: the Parliamentary Action Plans, Standards and Tools focused on the progress of the working group in terms of legislative openness, including development of Open Parliament action plans and Open Parliamentary Data International norms and standards establishment aspects.

LITHUANIA VOICES STRONG SUPPORT FOR GEORGIA’S EU VISA FREE AMBITIONS Occupation of our territories of Abkhazia and [Tskhinvali] South Ossetia is the price we pay for our Euro-Atlantic aspiration,” Georgia’s Minister of Justice Thea Tsulukiani said during her visit to Lithuania.

The Georgian official, who was invited abroad by her Lithuanian counterpart, today met with several high-ranking Lithuanian officials including the country’s Prime Minister, Foreign Minister, head of the Seimas (Parliament of Lithuania) and more. At all meetings Tsulukiani spoke about Georgia’s visa liberalisation plans, occupation problems and the pace of reforms Georgia was required to implement for it to become the part of the European space. Lithuanian Prime Minister Algirdas Butkevicius stressed Georgia achieved “excellent” results while fulfilling its obligations for gaining a visa free regime with European Union (EU) countries.

GOVERNMENT NEWS

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MINISTER OF ECONOMY: GEL WILL STRENGTHEN IN MEDIUM-TERM PERIOD

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eorgian Economy Minister Dimitri Kumsishvili says that the national currency will gain its value in the medium term.

“The pressure on the national currency has decreased in comparison with last year, and based on the current data, we can predict the strengthening of the lari in the medium term. If necessary, we can adjust the budget, although, at this stage there is no such need, “- says the Minister.

According to him, amid the current macroeco-

nomic parameters, the lari is too undervalued.

“When we talk about a new balance of imports and exports – this is real data that show us a flow of currency inflow. Current figures show a reduction in imports by about $ 180 million, respectively, the pressure on the lari is lower than usual.

A forecast that the national currency will begin to strengthen in the medium term is based on this fact, “- the Minister says.

In his words, the Ministry of Economy conducts almost daily consultations with the Ministry of Finance and the central bank.

CONSTRUCTION OF NENSKRA HPP BEGINS

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he Partnership Fund has started the construction of the controversial Nenskra Hydropower Plant.

The fund, along with the Korean company K-Water, the Georgian government, Commercial Operator of Electro-energetic Systems and JSC Georgia Electric System have signed the implementation agreements package at a meeting at Radisson Blu hotel on August 31.

The package includes an implementation agreement, the electricity purchase agreement and other related contracts.

According to director of the fund Irakli Kovzanadze, all the details have been agreed on and a construction company will now start the mobilization of resources for the HPP construction.

“This is the largest hydropower plant ever constructed throughout independent Georgia’s history,” Irakli Kovzanadze said. A 280 mega-watt power station will be constructed on the Enguri tributary in Svaneti. It is estimated to be able to produce 1.2 billion kWh per year. The construction will take approximately five years.

Georgia’s Green movements are against the building of HPPs on Georgian territory, as according to them the constructs will seriously damage eco-systems and locals will have to leave their households.

The statement released by the NGO Green Alternative reads that if the Nenskra HPP is constructed it will result in the cutting of 400 hectares of Svaneti forests and will change the natural landscape of the western Georgian region, which are especially attractive for tourists.

The NGO also reads that the change of the climate of the area will cause worsening of health

of locals and melting of icy slopes.

Svaneti residents have been protesting the construction and vow that they will not allow big HPPs on their soil.

The process of constructing big HPPs was launched under the previous government. The current state leadership promised before their election that they would have suspended the process as it might have been harmful to the environment.

However, when elected, the building of HPPs has become one of the state priorities.Georgia’s Energy Minister Kakhi Kaladze has stated that the country required energy and big HPPs.

EU MONITORING MISSION IN GEORGIA HOLDS FIRST MEETINGS IN RUSSIA SINCE 2011

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he European Union Monitoring Mission (EUMM) in Georgia has been given its first opportunity in four years to address Russia about its ongoing provocation of Georgia in a bid to resolve the issues in Georgia’s two occupied regions and at the Administrative Boundary Line (ABL). For the first time since 2011, head of the EUMM in Georgia, Kęstutis Jankauskas, visited Moscow on September 15-16 and held meetings with Russia’s Deputy Foreign Minister Grigory Karasin and chief of the Border Security Directorate of the Russian FSB Border Service Nikolay Kozik.

An announcement on the EUMM website stated the main purpose of the group’s visit to Russia was to maintain working contacts in Moscow and to address the concerns of all sides in order to maintain stability and prevent escalation of the situation on the ground. Both meetings were held in a friendly, constructive and professional atmosphere,” the EUMM said.

The EUMM said the security situation in Georgia and along the ABL with Tskhinvali (South Ossetia) and Abkhazia was discussed with the Russian side within the framework of preparations for the next round of the Incident Prevention and Response Mechanism (IPRM) meeting in Georgia

and the Geneva International Discussions.

Issues of borderisation, freedom of movement, access of local population to agricultural land as well as military exercises were raised and discusse,d as were practical issues such as interaction in the field between security actors,” said the EUMM. Commitment of all sides to use the existing instruments such as the IPRM meetings and the hotline was stressed in order to maintain stability and predictability on the ground,” the agency added. The 58th IPRM meeting will take place on September 23 while the next round of the Geneva International Discussions will be held on October 6-7.

GEORGIAN RAILWAY STARTS FULFILLING GEORGIA-EU ASSOCIATION AGREEMENT

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eorgian Railway has started fulfilling the Georgia-EU associated membership agreement, under which the company must introduce 8 main instructions and regulations. In this respect the experience of the EU member countries is of crucial importance.

To share their experience representatives of the European Railway Agency (ERA) arrived in Georgia. The delegation is led by ERA executive director Libor Lochman, who attended the September 18 workshop at the Radisson hotel and shared the ERA experience to the Georgian Railway representatives.

At the workshop Lochman provided a detailed description of the recommendations that must be introduced in Georgia for establishing EU directives and regulations in the railway field.

David Bakradze, the Georgian State Minister for European and Euro-Atlantic Integration Issues, opened the workshop. The due regulations must be enacted in Georgia in 2018-2020-2012 years,

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he noted.

“Georgian Railway is member of the European Railway Agency. Sharing the European experience is of crucial importance for adjusting our everyday life, legislation and Railway sector to the European standards. It is important that our friends assist us on this way and this factor opens new opportunities to us to achieve these standards thanks to assistance of our European partners.

At this stage, we are passing a preparatory period.

None of these regulations is easy for fulfillment.

All of them require much effort. Consequently, we should get prepared for the period of their enactment”, David Bakradze said.

Georgia will cooperate with the EU in the railway and, in general, transportation fields as part of the EU associated membership agreement, Akaki Saghirashvili, a head of the Georgian Railway operations management department, noted.

“Georgian Railway should introduce 8 directives and regulations stage by stage due to years. We have already taken certain steps in this direction.

We have set up a special group and created its working statute.

The years of 2018-2020-2012 are deadlines when the directives must have been enacted. Main aspects of these directives are – safety, opening the market, determination of tariff of the railway infrastructure company, issues related to passengers’ rights, cargo transportation operators and so on. Significant directives exist regarding the environment protection that will be established stage by stage. As a result, the railway will become more flexible in Georgia and we will have genuinely European standard railway”, Saghirashvili said.

It is worth noting the objective of the European Railway Agency is to back the enhancement of the business and create healthy environment to European Railway operators and railway infrastructure companies for taking bolder and more successful steps. ERA unites over 70 infrastructure managers and railway operators. Georgia is one of the ERA partner countries.

The weekly is distributed to top companies, banks, embassies, state sector, Tbilisi and Batumi hotels, Tbilisi, Batumi and Kutaisi Airports, as well as in the town of Marneuli. The newspaper will also penetrate Azerbaijan in the near future

Editor: Nino Gojiashvili. Mobile phone: 595 050404 Reporters: Nutsa Galumashvili; Lazare Gvimradze; Shiva Parizad

Source: www.commersant.ge, www.bpi.ge, www.gbc.ge, www.agenda.ge, www.civil.ge

PUBLICITY September 21, 2015 #114

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#GeorgiaChina September 21, 2015 #114

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THINGS GEORGIAN PM DID IN CHINA

China seems to be the next big thing for Georgia. Last week Georgian Prime Minister Irakli Garibashvili has completed his 5-day visit to China for the World Economic Forum in Dalian. While in China, the Georgian PM did quite a bit of impressive things that might have slipped your attention if you weren’t following updates on his visit as intensively as the Georgian journalists have been.

The PM made sure to tell his Chinese counterparts that Georgia is eager to cooperate and would be an ideal partner in the region.

The PM had meetings with such impressive figures as the Premier of China Li Keqiang, President of Asian Infrastructure Investment Bank Jin Liqun, Huawei’s Senior Vice President, heads of Chinese Silk Road Fund and the like. Here are some highlights from PM’s visit to China, where he:

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Talked FreeTalked Anaklia Trade NegotiaPort Investtions with China ment OpportuniGeorgia will be the first country in the region to launch negotiations with China about free trade, ties from China said Georgia’s Prime Minister Irakli Garibashvili

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in Dalian.

From the Georgian side, the Memorandum was signed by the Director of JSC Vagonmshenebeli, Badri Tsilosani, whereas, the signatory from the Chinese side was the President of Dalian Locomotive and Carriage Building Plan, Min Xing.

Met with the Chinese TV

Signed a Jump-Started One of the meetings was with representatives of Memoranafter meeting his Chinese counterpart Li Keqiang the POWERCHINA investment corporation. The on September 10.

PM’s Administration said the company had “conExport of Geor- dum of Cooperacrete plans” to invest in Georgia, and had showed particular interest in Anaklia Port. gian Wine to Chi- tion Between DaRaised Subject nese Port City of lian and Ajara of Asia InfraReceived an Memorandum of Cooperation was signed in the of the working visit on September 10. It Dalian structure InvestHonorary Doc- Georgia will soon begin exporting wine to one frames was signed by the Chairman of Ajara AR Governof China’s major port cities, Dalian. Georgian ment Archil Khabadze and Mayor of Dalian Xiao ment Bank and tor Degree from Wine Company (GWC) signed a Memorandum Shengfeng. with Dalian Free Trade Zone today to solidify the The agreement provides equality, cooperation and sharing knowledge and experience based on Georgia Coopera- Beijing University deal.

Garibashvili said Georgia already enjoyed posi- mutual benefit in economic, agriculture, health tive relations with China but he hoped to forge care, tourism, culture, education, transport, ention deeper cooperation in the future, stated the Prime vironment protection, service industry, city planAt the September 11 meeting, the AIIB president Met with the Minister’s press service. The volume of Georgian ning and other fields.

Jin Liqun stated that Georgia will be among the wine to be exported to Dalian was not specified. first countries that the newly established AIIB Huawei and will start making operations.

Visited the Jin Liqun said he had visited Georgia twice. AcMitsubishi RepreNegotiated a cording to him, the country has made a significant progress in the past period. “The Asian InfrastrucGreat Chiture Investment Bank is interested in Georgia’s sentatives $200m Investtransport, logistics and energy sectors,” he said. Delegation of a large international corporation nese Wall Irakli Garibashvili in his turn stressed Georgia’s Mitsubishi will visit Georgia- This statement was ment into Tkibuli strategic geographic location, its amicable busi- made by the chairman of the board of Mitsubishi ness environment, and the Free Trade Agreement Yorihiko Kojima with Georgian PM Irakli GaribInvited the Thermal Power ashvili. with Europe.

Huawei, the telecommunications giant that has Chinese been successfully operating in Georgia for the last Plant fifteen years, expressed its interest in a so-called One of China’s largest enterprises has expressed Stressed Geor- “safe country” concept. This means that Huawei its interest in investing almost $200 million USD Delegation to Visit is interested in building safety infrastructure and in Georgia’s energy sector. gia’s Role in building Internet systems in Georgia’s cities and State-owned enterprise Dongfang Electric has Georgia the countryside. pledged to contribute about $180-$200 million Georgia is preparing to host hundreds of highNew Silk Road for construction of a 150 megawatt Thermal level officials from China and the surrounding Power Plant (TPP) in Georgia’s western Tkibuli region at the upcoming Tbilisi Silk Road Forum region.

Project Talked Georon October 15 -16, where global leaders will disDongfang Electric is one of China’s most influen“Georgia has proven that we are a reliable transit cuss how to reinstate the ancient Silk Road route tial corporations that engage in the manufacturing country. Georgia’s economy is growing, we are between Europe and Asia. gian-Chinese of power generators and the contracts of power building and strengthening the democratic instiThe Silk Road Fund, with a $40 billion USD budstation projects locally and around the world. tutions, and providing for the business and media get, focused on exploring new trade-economic Locomotive Confreedom,” Georgia’s PM stated at the “New Silk benefits and opportunities to connect European Road” Session held within the World Economic and Asian economic markets, is among the instruction Forum in Dalian. vited guests.

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“We are definitely ready to become the part of the New Silk Road route. Our aim is to use Georgia’s strategic location as best we can,” said Garibashvili.

The Georgian-Chinese venture to manufacture the locomotives with asynchronous engines and their spare parts will be built in Georgia, according to the Memorandum of Cooperation signed

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caucasus business week

HUAWEI AND GEORGIAN GOVERNMENT’S CURRENT COOPERATION PLANS One of the pertinent subjects raised during the PM’s visit to China was further developing Huawei’s business in Georgia. The Chinese telecommunications giant Huawei entered Georgia in 2001 and has since then established meaningful partnerships with the local mobile networking companies. Today, there are talks of Huawei assisting Georgia in becoming so-called “safe city” and establishing Internet (National Broadband) throughout the country. CBW spoke with Huawei’s Director of Tbilisi Huawei Technology Co. Marco Xu about this and PM’s visit to China in general.

MARCO XU Director of Tbilisi Huawei Technology Co.

- Huwawei Vice President said the company would be involved in the project of so-called “Internatization” of Georgia. Huawei also expressed its interest in implementing the “Safe Country” concept in Georgia. What does this mean exactly?

- What we’ve discussed with Georgia’s PM in China is mainly about “Safe-City” and “National Broadband” projects. Both projects will bring great benefit for every citizen in Georgia.

“Safe city” is about a video monitoring system in the city, video/audio emergence call system, command

center and intelligence analysis system. For instance, right now there are lots of cars in Tbilisi that drive in opposite direction if there is no policeman nearby. If the monitoring system is implemented, the system will make an automatic photo of the car, read the license plate of the car and give penalty to the owner. It will help improve the traffic and safety for the citizens of country. Huawei has built lots of safe city projects worldwide; it helps to reduce traffic accidents, as well as the criminal rate.

National Broadband is about building an internet connection to each village in the countryside, all EU countries and China has such program, the purpose of National Broadband is to close the internet GAP between countryside and the city. Countryside residents can have

“Chinese Market is Very Attractive for Georgian Wine due to Strong Economy and Quantity of Population” VAZHA BERIDZE Economic Expert The perspectives for Georgia’s relations with China are of vital importance. Georgia-China trade-economic relations are being efficiently developed. These relations are based on mutually beneficial interests. Therefore, we are able to suppose, including in the context of this visit that the Georgia-China relations may turn into a strategic partnership in the near future, as the quality of relations and interests between China and Georgia are of the highest level. With the strong and rising economy China strives for the European market to export more products and services and capital to Europe. On the way of this aspiration Georgia is shortest destination in the context of the Silk Road historical route.

This visit has also outlined bilateral interests.

The issue is of the Khashuri-Samtredia highway construction. At the meeting the Chinese party expressed readiness to make specific investments in the Anaklia seaport construction, in other important projects.

The wine market expansion is also of vital importance, because the Chinese market is very attractive for the Georgian wine due to strong economy and quantity of population. At the same time, Georgia’s relations with China contains absolutely unimportant and minimum negative aspects in terms of national interests and this is additional advantage that will make our ties with China more attractive.

similar Internet access as the city residents, so the people in countryside could enjoy the modern life and doing business through the Internet.

Also through the National Broadband, government could build remote education for the people in the village and provide remote medical checks and diagnosis through the Internet. It will be a big benefit for those people in the village who are far away from schools and hospitals.

- Another subject was developing the “Electronic Governance” project. Is it true that Huawei is involved in this project?

- For “Electronic Government” project, Huawei has not been involved yet, but we are very interested in this project since we have lots of experience in this field. We will follow the procedure of the Georgian gov-

“China Carries out Very Flexible and Comfortable Investment Policy, Especially for Georgia” LEVAN KALANDADZE, Economic Analyst China is one of the most important and interesting directions for Georgia from the strategic point of view. I do not mean only a development of trade relations and free trade regime establishment with China, but, first of all, I mean the investment potential and the interest China is showing to Georgia, as well as joint projects that may be implemented in Georgia.

Georgia posses serious potential for implementing investment projects, especially major investment projects. Therefore, proper and valuable employment of the Chinese factor will considerably change the whole picture in our country.

Chinese investors are expected to show special interest in major energy, transportation infrastructure and agriculture projects, as well as communications and international logistics services that will transform Georgia into a regional hub of international importance.

China carries out very flexible and comfortable investment policy, especially for Georgia. At the same time, this is a cheaper resource that may bring additional comfort and benefits to Georgia if we ensure proper investment policy and offer proper investment projects to Chinese partners.

The Georgian Government’s first efforts for developing economic ties with China are successful. At this stage, we should outline specific priorities in proper and efficient way to introduce proper investment offers and interesting projects to the Chinese party.

ernment to have further talks with the government organizations.

- How would you personally comment on Georgia’s new Chinaoriented policy? How would you assess its potential?

- As a business organization representative, I think the current cooperation between Georgia and China is one of the best developments for the business; it’s a win-win situation for both countries. China is a very huge market for Georgian products and tourism. China could consider Georgia as a transition Hub between Asia and Europe in the transportation and ICT industry.

“The Government announced plans on Free-Trade Agreement with China, but no Document is signed yet” EMZAR JGERENAIA Economic Analyst Garibashvili administration has announced that Free Trade Agreement with China was being discussed, but the document is not put out yet.

This is a complicated question, because on the one hand, every country in the world dreams to penetrate China’s huge market, which has 1 billion 600 million population. It’s such a volume that any entrepreneur dreams to have an access to even a tenth of such a market.

On the other hand, it is quite a big challenge for the Georgian business, as it is the policy of the Communist Party-influenced elements of the free market to have fixed low costs and prices.

Chinese products are extremely hard to compete with. So think what the competition scales are for the Georgian entrepreneurs. In addition, Chinese goods are widely represented in Georgia.

Every product here bears the “Made in China” sticker, our market is practically open for the Chinese businesses. Therefore, there will be no complications for the China-Georgia opening Free Trade.

Chinese Premier urges FTA negotiation with Georgia

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hinese Premier Li Keqiang met Georgia’s Prime Minister Irakli Gharibashvili at the Dalian State Guesthouse on Sept 10. Li expressed his hope that the two countries will start the substantive negotiation of Free Trade Agreement (FTA) as soon as possible, so as to promote bilateral trade to a new level.

China is willing to integrate its strategies with Georgia and to take an active part in infrastructure construction including port, highway and railway, Li said. China and Georgia have mutual respect and treat each other equally, Li said, noting that China respects the development path chosen by the people of Georgia in accordance with their own national conditions. Li said the Chinese government supports the efforts made by Georgia’s government to promote social development and is willing to see that Georgia plays more positive role in international and regional issues.

Li also said he hopes the two countries will deepen people-to-people exchanges.

“Strong Partner with Interest in Developing East-West Transport Corridor” Nodar Chichinadze President of the Association of Young Financiers and Businessmen (AYFB) Establishment of tight economic relations with the world’s one of the major and quickly-growing economies should be positively appraised.

Any visit, especially on the level of top officials, is of crucial importance. Similar visits signify both parties prioritize enhancement of economic relations.

Georgia possesses vital geographical location at the east-west shortest corridor. Relying on only its own efforts Georgia cannot valuably employ the potential of this location. At least, there are no sufficient financial resources. In this situation the country should find a strong partner interested in developing this transportation corridor. China is a similar country. We know a new multimillion foundation was set up in China to implement the silk road project. During the Georgian Prime Minister’s visit to China,the information was spread a new transportation route project may be implemented in Georgia and its investment value exceeds one billion USD. Hence, China is considered to be one of the fastest locomotives in the contemporary world in terms of economic development. Therefore, Georgia’s involvement in this locomotive will bring only positive result to the Georgian economy.

ECONO-MIX

6 HEADLINES PRIVATBANK’S FORMER SHAREHOLDER AND DIRECTOR TO MANAGE CAPITAL BANK

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leksandre Chochia, the Privatbank’s former shareholder (1.1%) and director, will manage Capital Bank.

The incumbent director Lasha Khoperia was appointed on the position in spring 2014 after former stakeholders Gabrielashvili/Aleksidze withdrew from the structure and Aleksandre Kurtanidze became a 70% stakeholder.

The former Investbank was moved to a rehabilitation regime several months ago.

Before April 1, 2014 the bank was managed by the National Bank’s interim management for 5 months because the bank had ignored supervisory norms.

The NBG interim management entered the bank in November 2013 too, as the bank lacked for liquid assets.

Investbank launched operation in 2003. The bank’s stakeholders were: London International Bank Ltd (20.8%), Allied Partners Investments Limited (72.68%), Buadze Enterprises Ltd (6.52%). Joseph Kay was an indirect holder of 93.49% stake.

The bank’s structure was changed several times.

GDP INCREASED IN GEL IN Q2, WHILE DECLINE IS FIXED IN USD

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akstat” published detailed indexes of Georgia’s GDP. As of official data, Georgia’s GDP has been 7,772 billion GEL in the current prices, which has made up 3,4 billion USD. The growth totals to 61 million in GEL, while GDP in USD is decreased by 658 million comparing to Q2 of 2014, while the figure has been 4,06 billion USD in Q2, 2014.

The trend is different on per capita in terms of GDP volume, growth is fixed in USD as well as in GEL. The new census indicators of the country has conditioned the following in Q1 and Q2 of 2015, whereas calculated values, the census data, and indicators were used in demographic data of the previous years.

EUROPEAN COMPANIES INTERESTED IN BUYING “ENERGOPRO” AFTER SIGNING THE ASSOCIATION AGREEMENT

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egotiations are still going on regarding the sale of the share in the distribution company “Energo-Pro Georgia”. As they say in the company, the European companies interested in purchasing “Energo-Pro Georgia” after Georgia signed the Association Agreement with the European Union. ccording to the Energy Minister Kakha Kaladze, “Energo-Pro Georgia” is holding serious negotiations with leading European companies, including companies from France, Italy. Kaladze notes that the company wants to sell a certain share, however, they have no information at what stage are the negotiations.

Avto Dvalishvili, the head of the Public Relations Department at “Energo-Pro Georgia” states in a conversation with “Commersant” that as soon as the agreement was ratified, European companies showed interest in the companies operating in Georgia.

SOCAR NOT TO INCREASE GAS TARIFF FOR GEORGIAN POPULATION

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akhir Mamedov, head of SOCAR Energy Georgia has declared about it to news agency Trend.

According to him, the signed contract between Azerbaijan SOCAR and Georgian Oil and Gas Corporation includes all direction of social gas consumption.

“The agreement regulates gas tariffs as well. We do not plan to review this contract in the near future, as for the consumption of commercial gas, we think about it due to GEL devaluation.

However, decision is not adopted yet”, Mamedov declares. Cost of 1 cubic m gas totals to 0,4562 GEL (0,19 USD) for Tbilisi population, while 0,4 GEL (over 0,17 USD) – 0,5 GEL (0,21 USD) – for the regions.

Gas price for commercial consumers totals to 0,84 GEL (0,35 USD) on per cubic m.

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INTERNET MARKET IS SATURATED WITH PROVIDER COMPANIES, BUT MONOPOLY STILL RUNS How the 2 billion GEL Universal Internetization Project Proceeds

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n August 14, 2015 the Georgian Economy Ministry Agency for Innovations and Technologies sealed an agreement with Detecon company, a member of the German Deutsche Telekom Group. The agency announced an inauguration of developing universal high-speed internet infrastructure in Georgia.

Under the agreement, the German party will carry out preparatory works for the project implementation. However, the process has become questionable for both private and NGO sectors.

The project calls for providing about 2 000 settlements with broadband internet network. All secondary schools and libraries will be switched to the new infrastructure. The government asserts all providers and operators will have unlimited access to the network without any discrimination.

Cartu Bank will finance the project by about 120 million GEL. The decision was taken after the Economy Ministry competition for the project implementation failed.

No company showed interest in the Economy Ministry proposal. The competition terms did not include strategy and potential investors could not understand why and in what they should spend money, Ucha Seturi, an expert for the Institute for Development of Freedom of Information (IDFI), said.

“There are several officials in the Government who are accustomed to verbally assuring in something without having laid down a strategy on paper. They took certain steps, but they fail.

The announced competition was of artificial and superficial character without any target on result.

This project is an enormous gift and opportunity, but we can spend this money, arrange the network and receive no results or very unimportant

results. This factor is a major problem. We have difficulties with the network security and there is no solution determined”, Seturi noted.

After the competition failed, the Economy Ministry hired German Detecon consulting company due to the experienced and the price offer.

The full consulting work includes 7 phases, namely: analysis of the demand, design of the network, assessment of the value, planning of the implementation and so on. It was announced from the very beginning Georgia was inclining to the Lithuanian model and this was not the best experience, as this model does not make focus on internet users, namely, users’ knowledge and skills for a use of computer and internet, Seturi said.

A major part of the population in regions cannot pay for internet services and buy computer equipment, Seturi added.

‘Besides the financial part, the users have no experience in using PCs. Our citizens must be connected to the internet to exchange certain data, receive emails, search out and spread information, in one word, to be active, including in the agriculture products growing, sales part, in penetrating foreign markets”, the IDFI expert pointed out.

Similar projects that are related to the communications business and development of other economic sectors and the social-political life should be implemented through universal involvement, experts assert.

“The internetization project implementation should not depend on change in power or policy.

It should not be ceased or revised. I mean the strategic direction. Therefore, this process should be maximally transparent and public at all levels. For example, the digital broadcasting project was a success thanks to a wide involvement of all

players and interested parties”, the information development institute’s board chairman Levan Avalishvili said.

The internet connection services are regulated by the Georgian National Communications Commission (GNCC). The body is also involved in the Prime-Minister’s special board for internetization. The GNCC chairman Vakhtang Abashidze says the project should be implemented in a more transparent environment.

“The universal internetization is a very expensive project. The issue is of several hundreds of millions. The Government should implement the project promotion and public subsidization programs. Discussions will be underway on this issue. The process should be more transparent so as all interested parties participate in it”, Abashidze said.

Small providers operate in absolutely unclear situation, Mikheil Gotoshia, a director of AlterNat mobile communications company, noted.

They have no information how the government will implement the universal internetization project and what is the role of small providers in this project, he added.

The new network may be also monopolized. The idea is wonderful in itself, but even one mistake may fail the whole project. For example, a major operator may subdue the internet infrastructure or the internet signal may be provided by one operator or it may be sold later as a one lot… There are many challenges, many problems. Even one mistake may lead these 150 companies to bankruptcy, Gotoshia said.

Unlike Mikheil Gotoshia, the GNCC member Kakha Bekauri rules out similar threats.

“You can visit any district in Tbilisi and witness that only Silknet covers one District and no other operator functions in the same zone. In another district only Caucasus operates and there is no other provider. We say there are several companies, but in reality, this is untrue and only a monopolist serves this or that district. This situation will change. All internet providers will have access to the network and any subscriber in Tbilisi or in a village will have various alternatives. Very simply: if the price and quality are unsatisfactory, the subscribers will choose provider with desirable prices and service quality without leaving home”, Kakha Bekauri noted and added the internetization design is being currently developed and the process will end in 3 months.

NEW BUILDING CODE – NEW STANDARDS TO CONSTRUCTION COMPANIES

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he new building code has been already developed. The parliament will discuss the document in autumn session. Construction companies and the housing sector experts have been long waiting for developing and enacting this document. Finally, the Authorities have satisfied this demand. The new building code is expected to be enacted at the end of 2015.

The bill was forwarded to the Government. The working variant was developed jointly with construction companies, sectoral associations and various offices. The document includes many regulations, the Economy Ministry says.

The document obliges construction companies to submit geological and expert conclusions. The new code also introduces mandatory certification of engineers and architects, as well as a concept of adjacent zones near public spaces.

The revised variant of the code was agreed with all parties and forwarded to the Government, David Gigineishvili, a head of the Economy Ministry Department for Space planning and Building Policy, noted.

“In the working process, a lot of remarks were expressed from various sectors. All remarks and recommendations have been analyzed and embodied. Consensus has been achieved to a certain extent with the private sector, associations and various Ministries”, Gigineishvili said.

The development sector backs the current variant of the building code, as the business association

has submitted a letter to the Economy Ministry confirming the association members approve the code, Gigineisvili added.

“There are many development companies united in the business association and their letter signifies the development companies also approve the submitted bill”, Gigineishvili noted.

The government meeting will discuss the bill in the near future and the document will be forwarded to the Parliament, he added.

The association of developers of Georgia joined the working process form the very beginning. All parties have provided huge job, the association chairman Irakli Rostomashvili said.

‘There were several issues on which I was agreeing or not with the bill authors, but finally we achieved a consensus. In general, the law may be

a good one, but it must be executed. I am genuinely interested how they will execute the law, what leverages they will use.

If anything is not performed valuably, the legislation should not be accused. The code cannot do anything in itself. Professional officials are required to perform due works.

If a professional specialist, we will receive good results. Therefore, I cannot insist something with full persuasion. Officials appointed by political grounds will fail.

The current situation in the housing sector was brought by ignorance. Lack of experience has mostly damaged the construction sector.

Professionals should have been involved in the process and we would receive entirely different results”, Irakli Rostomashvili noted.

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TEA-PACKING ENTERPRISE OPENS IN OZURGETI

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eoPlant company has launched a new tea-packing enterprise in Ozurgeti, the Guria Region, as part of the Produce in Georgia state program. The enterprise is equipped with modern technologies in line with international standards.

“Restoration of the tea production is one of the key priorities of our government. I have instructed the Agriculture Ministry to lay down a tea production development program. The document will be approved at the government session and publicized soon. We plan to engage in extensive efforts to revive the Georgian tea production,

give impetus to the development of this industry in Georgia”, Georgian Prime Minister Irakli Gharibashvili pointed out. The Chinese party is interested in Georgian tea imports, the PM noted referring to his recent visit to China.

Mr. Gharibashvili thanked GeoPlant director Mikheil Chkuaseli for his contribution to the

Georgian tea industry recovery.

GeoPlant’s tea-packing enterprise is located on over 1 300 square metre space and is funded under the Produce in Georgia program. The company plans to produce a total of 570 tons of packaged tea within two years. The company manufactures over 60 sorts of tea products.

“

Mikheil Chkuaseli Performs Genuinely Georgian Affair.

Today we have launched a very important project and unveiled a tea-packing enterprise in Ozurgeti to enable local farmers to come here and sell their products. I would like to express my deep gratitude to GeoPlant director Mikheil Chkuaseli and assure you he and his team perform the genuinely Georgian affair

MIKHEIL CHKUASELI GeoPlant director: “Our country records a 200-year history of tea production. Georgia used to rank fifth in the USSR in terms of tea production. I believe the tea is one of the important items that should become Georgia’s brand product. This will be a very important fact in not only Guria and Samegrelo Regions. We possess huge potential to manufacture fruit tea, plant tea. We have already involved the Regions of Mtskheta-Mtianeti, Kakheti and Samtskhe-Javakheti in this process. I believe this will be very important direction in the whole country.

In 2015 we will finish rehabilitating about 300 tea plantations to increase green tea harvest on a hectare and to improve the leaves’ qualitative characteristics. Moreover, we will also rehabilitate the enterprise and install new technological lines for green and black tea manufacturing. We should consider these two projects as a whole in terms of employment and a growth in output.

By 2017 both enterprises will employ 80-100 persons. Everything depends on the number of shifts. I am sure our new enterprise will operate in three shifts by the end of 2015. As to the primary production and the volume of raw materials we will receive at the end of 2016, I can make preliminary forecasts, but everything depends on weather conditions. Therefore, I would abstain from making untimely prognosis”.

“

The Prime Minister

“All of us acknowledge unanimously a progressive thought and talent of the Guria residents. Guria is the center of the Georgian Politics, the center of thought. I expressed my deep respect and love to this region and population”.

PRIME MINISTER, HONORABLE RESIDENTS OF OZURGETI AND THE ALEGROBA IN GURIA

O “I usually keep the “This is the best Gurieli tea at my advertisement study. I drink only for the Gurieli Georgian tea and tea” only the Gurieli tea”

zurgeti Mayor Beglar Sioridze unveiled a traditional festival of the Alegroba in Ozurgeti jointly with Prime Minister Irakli Gharibashvili, the Guria Region Governor Gia Salukvadze and Ozurgeti MP Zviad Kvachantiradze.

The Prime Minister greeted Guria residents and noted the Guria Region is the center of the Georgian Politics. After that Ozurgeti Mayor named honorable residents of the city of Ozurgeti: Jemal Chkuaseli, Zinaida Salukvadze, Vladimer Tsanava, Vladimer Salukvadze and Gabriel Mdinaradze. The Prime Minsiter also opened a tea enterprise in Ozurgeti jointly with Mikheil Chkuaseli and visited the village of Shemokmedi to attend the inauguration of a new square.

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PROTESTS IN KAKHETI A Poor Start for Harvest Season 2015 in Georgia

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OTAR DANELIA Minister of Agriculture “Times when the state interfered by force in the harvesting process and determined grapes prices are over. The market determines the prices. In recent years, a number of systemic changes were made to the development of viticulture and winemaking. The process has been made more healthy and available. Important steps were taken in this direction. Next year even more important projects will be implemented.”

akheti, Georgia – This year’s harvest season has seen a very poor start in Georgia so far, with Gurjaani grape farmers taking to the streets last week to protest the low prices put on their product.

The declining export of the Georgian wine has pushed grape prices down by roughly 40-55% compared to last year, when the average price for a kilo of grapes varied from GEL 1 to GEL 1.9, depending on quality and variety of grapes in Kakheti region, which is home of more than half of Georgia’s vineyards.

Grape growers were protesting for almost 10 dys in Gurjaani, demanding from the authorities to increase subsidies and claiming that the existing prices fail to cover their expenses.

Similar to last year, the government keeps subsidizing grape prices, adding GEL 0.35 per kilo of white grape on top of what the wine maker companies and processing factories will pay; subsidies amount to GEL 0.15 per kilo of red grape in Kakheti.

Part of the grape growers demand meeting the country officials, while the other part believes that such meetings would have no effect whatsoever.

ZURAB MARGVELASHVILI Owner of Tbilvino “Everyone has a right to express their protest within the boundaries of law. The demands put out by the wine growers do not surprise me, because they try to sell their product for the highest possible price. Any product, be it cucumber, tomatoes or onions will sell for as much as there is demand for it. Every buyer and seller should consider themselves what is the best price of their product according to market demand.”

FARMERS SOZAR SUBAR Minister of Internally Displaced Persons “It is obvious that the prices of grapes, as for instance, that of potatoes cannot always be the same.

Sometimes they fluctuate. This depends on many factors - primarily on the crop and its demand.

The market economy system is called a market economy because all participants must obey its laws. This year we have a great harvest mainly due to the new hail-protection system, which allowed to save about 30% of the crop. Now the price for grapes is what it should be.”

“Is this a price? This is a shameful price. Dollar has increased by 85 tetri against lari. Compared to last year the price of grapes has decreased by 30 tetri! We can’t even cover the expenses.”

“We will demand the government to resign if they don’t increase grape prices!”

ZURAB CHKHAIDZE Director of Kakhetian Traditional Winemaking “The company has done everything possible to prevent a drop in sales. Specifically, Georgian wine was exported to a new market of Malaysia. The company increased its capacity and added a new building that allows processing of additional 3 tons of grapes.

At this stage, the company exports Georgian wine to 15 countries. The diversification process is very time consuming and requires market investigation and study. The current difficult situation requires putting emotions aside and working.”

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INVESTMENT FORUM caucasus business week

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With over 200 participants, Investment Forum Batumi 2015 was successfully held in Batumi at the Hilton Hotel in the Black Sea Region of Ajara. The event was organized by Cushman & Wakefield | Veritas Brown together with the Georgian National Investment Agency and the Government of Autonomous Republic of Ajara.

BATUMI INVESTMENT FORUM 2015 SUMMARY

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he forum brought together key policy-makers, government officials, investors and businesspeople who discussed different investment opportunities and business prospects across the Ajara region.

Business Week is proud to share the insights of the event that have significantly changed the investment climate in Georgia.

Ajara A.R. Finance and Economy Minister David Baladze opened the Forum with the speech that was followed by Minister of Economy and Sustainable Development of Georgia Mr. Dimitri Kumsishvili, the Chairman of Government of Ajara A.R. Mr. Archil Khabadze. The speeches covered the curren dynamics in the Georgian economy and reform initiatives that have improved the country’s business environment. They gave the general overview of the investment opportunities in the region and updated the audience on the projects that are planned for this year.

“Ajara is a quite significant region of Georgia in terms of investment opportunities. Ajara government’s objective is to closely cooperate with the local and international investors; let them know more about our region’s investment potential. In 2012, 152 million U.S. dollars worth of investments were made in Ajara. In only two quarters of 2015, this number has already grown to 165 million U.S. dollars,” said David Baladze.

Welcoming speeches were followed by eight hours of interactive panel discussions, high-level presentations and interaction between delegates and speakers. It was an unparalleled experience for all attendees in terms of the informational update they received about the investment climate and opportunities in Ajara region and Georgia.

Bruno Balvanera, the Director for Caucasus, Moldova and Belarus at European Bank of Reconstruction and Development (EBRD) moderated the panels.

Giorgi Pertaia, Director of the Georgian National Investment Agency stressed in his presentation that Georgia occupies 15th place in the World Bank’s category of Doing Business and is 22nd on Heritage Foundation’s Index of Economic

Freedom. He talked about the general positive business atmosphere of Georgia.

The day was designed to provide an opportunity for guests to make contact and network with senior figures from the business and financial communities, as well as the public sector and the government.

“Delegate feedback was highly positive and Cushman & Wakefield | Veritas Brown can announce that several high profile projects in Batumi have received investor pre-contacts as a direct result of the conference” said Tom Day, Regional Director- Hospitality & Investor Services of Cushman & Wakefield | Veritas Brown” On the next day participants were invited to the site tour where they had the opportunity to get acquainted with the current investment projects in the region such as Metro City, Atlas Georgia, Babillon Tower, Alphabet Tower, Grand Hotel Batumi Sea, Grand Resort Development, Dreamland Oasis, Porta Tower Batumi, Princess Hotel Batumi, Crown Plaza Batumi, Semiramida Gardens Holiday Complex, Gogebashvili str. 18.

It is obvious that Georgia has demonstrated its repeated readiness to serve as a positive investment environment with its different investment opportunities and ready projects, thus Georgia is definitely a competitive country to invest.

DIMITRI QUMSISHVILI Minister of Economy and Sustainable Development of Georgia “At the forum we will comprehensively discuss the issue of accessibility of finances and opportunities in the Ajara Region and the whole country. About 200 delegates have arrived from several tens of countries, including representatives of international financial institutions and foundations. All forums are of crucial importance for us. At the Forum we will offer the existing instruments to investors and all persons interested in making investments in Georgia. We will also discuss the issue of accessibility of finances in details, as well as the potential in the Ajara Region and the whole country”.

ARCHIL KHABADZE The Ajara Government Chairman “Today’s meeting represents a platform for a constructive dialogue between the domestic business and the Government. This dialogue is necessary and important for successfully planning investment projects. This forum will enable to better introduce investment environment in our countries. We will deliver detailed information about the business projects in the region and encourage the new relations”.

DAVID BALADZE The Ajara Finance and Economy Minister “For the last 3 years we have done our best to increase investments inflows by 100%. I would like to express my deep gratitude to you for arriving and participating in the forum. We will thoroughly introduce our potential and provide comprehensive information on the region’s investment environment and the ongoing projects”, Baladze noted.

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KAKHA KALADZE: USD FURTHER RISE WILL AFFECT NOT ONLY POWER SECTOR

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f the dollar continues to strengthen, it will have a serious negative impact not only on the energy sector, but also other economic sectors,” the Minister of Energy Kakha Kaladze states.

According to him, after Georgian Dream came to power, the electricity tariffs declined significantly but returned to the previous level due to the strengthening of the dollar. “We’ve got the result

– at the beginning of 2013, we reduced the tariff by 4 tetri, but due to lari devaluation, it returned to the previous level. If the dollar continues to strengthen, it will have a serious negative impact not only on energy but other sectors as well,” the Minister says.

In his words, certain politically engaged groups show panic about power outages in the winter period.

“Someone deliberately spreads misinformation about the supply of electricity on schedule. I can say with full responsibility that nothing like this will happen, and Georgia will never return to a time when the electric power was supplied on schedule. There are no problems that could lead to this result. I have repeatedly said and I repeat now that the country does not face such a threat.

Now we are carrying out a lot of projects in order to meet domestic demand for electricity and begin its large-scale export abroad. Georgia has the potential to become an exporter of electricity to Europe,” the Minister notes.

MOODY’S: GEORGIA’S HIGH RATING REFLECTS RATE OF ECONOMIC GROWTH

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he high rating of Georgia - Ba3 reflects the high rate of economic growth of Georgia - stated in the report of the international rating agency Moody’s Credit Analysis:

Georgia”.

“Georgia has many strong sides of lending, institutional sustainability and business -oriented environment that have contributed to economic development in the past 10 years. Although, due to lower demand since the middle of 2014 , in 2015 -2016 economic growth will be lower than

earlier forecast. The situation around the current account deficit has worsened, exports and remittances from abroad have reduced ,”- one of the analysts Ernest Sergenti says.

Moody’s forecasted economic growth of 2% in Georgia in 2015, and GDP growth of 3% in 2016.

The report also says about a negative impact the situation in Russia has had on Georgia.

“However, the signing of an association agreement with the European Union is a positive factor that promotes stability and high rating of the country, and this in turn contributes to the medium-term strengthening of state institutions and economic growth. The country also carries out modernization of transport infrastructure and reforms to strengthen its competitiveness, productivity and exports, “- the Moody’s report says.

According to the report, the long-term continuation of the factors hindering the growth of Georgia’s economy and geopolitical tensions may have a negative effect on the country’s rating.

IRAN-ARMENIA RAILWAY PROJECT WILL BE MORE EFFICIENT IF GEORGIA JOINS

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ran-Armenia railway project will be more efficient if Georgia also joins it, economist Ashot Tavadyan stated at the conference “Iran: Lifting of Sanctions and the Possible Regional Developments” held in Yerevan.

These movements may put more pressure on Georgia to allow a northeast railway transit through its territory. Such a route would go through breakaway Abkhazia, where Russian troops have been busy restoring Soviet-era tracks.

Faced with domestic pressure not to compromise on the railway with Russian troops stationed in Abkhazia, Tbilisi insists that restoration of the Russia-Georgia-Armenia link is not possible for now.

Armenia hopes China soon will agree to pay for a planned railway to Iran. The planned railway could give Iran access to the Black Sea for large-scale shipments of exports and landlocked Armenia a significant role as a transit country. The state of the railway link is not clear yet. Iranian officials said they are building their portion of it, while Armenia is looking for the means to construct its own. Armenian Prime Minister Hovik Abrahamian 17:30 wedn. Excel statistics 18:30 thu: consuner behavior 18:30 and on saturday at 12hopes to scare up investment for the railroad from China during his upcoming September 23-25 visit. Yerevan and Beijing have already been in touch about the railway, according to Abrahamian.

NUMBER OF SIGHNAGHI VISITORS GROWS BY 53%

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widely advertised by the previous government the town of Signagi is satisfied with the number of tourists as compared to July-August of last year, the number of tourists has increased by 53%.

In the words of Signagi governor David Janikashvili, the city is manly visited by Polish, Israeli, Russian, Ukrainian and Saudi Arabian citizens.

He says the owners of all hotels operating in the

town are satisfied with the current season.

“The hotels will work at full capacity for at least one month. Both family-type and private hotels are filled. There are a lot of tourists everywhere.

There are cases when tourists can’t find the apartment, “- Janikashvili notes.

He says the overnight in the hotel costs GEL 10-200.

Signagi governor expects the number of tourists will not reduce till the end of October.

RUSSIAN TOURISTS SPENT $315.3 M IN GEORGIA

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ccording to the Georgian Economy Minister Dimitri Kumsishvili, revenues of the tourism industry received from Russian tourists in Georgia amounted to more than $315.3 million in January-August period of 2015.

In January-August of 2015 the number of visitors from Russia increased by 15% compared to the same period of last year. During the first eight months of 2015 642, 934 Russian visitors came to Georgia. The number of visitors from Rus-

sia grew due to the restoration of direct regular flights between Georgia and Russia interrupted in 2008, says Minister of Economy and Sustainable Development of Georgia.

“Visitors from Russia are solvent and their contribution to the economy of Georgia in JanuaryAugust 2015 amounted to GEL 756.7 million,” the head of the Department states. Kumsishvili also notes that in January-August 2015 passenger air transportation to Russia increased by 92% in comparison with the same period of last year.

MORE ARAB TOURISTS SHOW INTEREST IN GEORGIA

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eorgia is quickly becoming one of hottest new holiday destinations among the UAE residents,Tradearabia reported.

Travel searches for Georgia, which was negligible until the last few years, saw a 300 per cent growth since the last year with latest stats from the Georgian National Tourism Administration revealing that Georgia received 852,377 visitors in August– a 10 per cent increase from the same period in 2014.

The number of guests who visited Georgia between January-August was also higher than previous years. In the first eight months of 2015, a 6 per cent increase was seen in the number of

visitors to Georgia (more than 3.9 million visitors.) The country has also recorded a 36 per cent increase in visitors from Kazakhstan while 54 per cent more guests came from Belarus and 35 per cent more came from Moldova.

Visa on arrival, a short flight duration and a unique mix of the European and Asian cultures, is making Georgia a favoured destination for the Middle East residents. Travellers with valid UAE residency visa or UAE citizenship can get Visa on Arrival to Georgia.

Air Arabia, Etihad Airways as well as Fly Dubai have regular direct services to Tbilisi, the capital of Georgia from Sharjah, Abu Dhabi and Dubai respectively.

COST OF LIVING GROWS TO 157.9 GEL

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s of the minimum food basket, a working man needs 157,9 GEL for living. The index exceeds by 2,3 GEL comparing to the rate of July, while - by 7,3 GEL if compared to August, 2014.

According to Sakstat, minimum living wage of an average family amounts to 264,8 GEL.

One member family needs 139,8 GEL for living, two-member family – 223,7 GEL, three-member – 251,7 GEL, four-member – 279,7 GEL, five-member – 314 GEL, while six member – 372 GEL. It should be noted, that as of the official statistics, more than 126,5 thousand families need subsistence allowance in Georgia, who get monthly aid from the state.

LAST YEAR RECORDS 10% GROWTH IN GEORGIA’S VEHICLE MARKET

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here is one car per four citizens in Georgia on average, says Ministry of Interior, which seems much more when you are in the streets of Tbilisi. According to the Ministry’s data, the number of automobiles in the country grows consistently every year; last year’s growth constituted almost 10 percent.

Most of the vehicles (80%) in Georgia are passenger cars and SUV’s, among which the most popular colors are grey (27,7%) and white (16%).

It is worth noting that most of the cars in Georgia

have been manufactured more than 10 years ago.

Only 2% of the total vehicle pool in Georgia was manufactured within the last 3 years.

The most widespread vehicle models in Georgia are Mercedes-Benz and Opel. However, Nissan’ and Subaru’s presence on the Georgian market has considerably grown; the growth coefficient amounts to 1,7 and 1,5.

As to the specific models, Opel Astra and Opel Vectra are still the leaders on the Georgian automarket. After that, Mercedes Benz E and Mercedes-Benz C classes follow.

GEORGIA KEEN ON PROMOTING ECONOMIC COOPERATION WITH IRAN NEGATIVE TRADE BALANCE eorgian Finance Minister Nodar ment and entrepreneurship atmosphere in GeorKhaduri said the country’s offi- gia, the minister presented a detailed report to the SHRINKS 9.4% IN AUGUST cials are ready to take effective Iranian delegation, hoping that Ghadir Investment

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measures in line with boosting economic and commercial cooperation with Iran, IRNA reported.

In a meeting with an Iranian delegation from Ghadir Investment Company, he also described development of economic and commercial cooperation with Iran as significant.

As to customs and taxation laws as well as invest-

Company would make necessary decisions to take part in the country’s projects in near future.

The company listed transportation, energy, construction and communications as the interested areas of cooperation.

The company also invited the Georgian finance minister to visit Iran to get further acquainted with the company’s activities.

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egative trade balance decreased by 9,4% at the expense of import reduction in August comparing to July.

According to “Sakstat”, volume of negative trade balance has been 433 million USD in August, which is less by 45 million comparing to July.

Export volume from Georgia has made up 190 million USD in August, the figure exceeds by 3 million comparing to July, while the rate is less by 23% if compared to previous August.

As for import, its volume has been 623 million USD and less by 42 million comparing to the index of July.

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LIBERTY BANK MANAGEMENT RESHUFFLES ANNOUNCED FOR OCTOBER 1

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leksi Khoroshvili, Chairman of the Liberty Bank Audit Committee, will be promoted to the position of the Director General of Liberty Bank. The news became known to CBW exclusively.

Aleksi Khoroshvili came to the bank jointly with other members of Lado Gurgenidze’s team 6 years ago. Khoroshvili has chaired the Audit Committee for the past six years.

Currently, Giorgi Arveladze is a Liberty Bank Director General. He was appointed to the position 2 years ago. At this stage, Lado Gurgenidze leads the Liberty Bank Supervisory Board as an Executive Chairman.

TBC BANK NAMED AS TOP-RATED BANK FOR BEST SERVICES

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ccording to the online poll conducted by the newspaper Banking & Finances the Georgian consumers rate TBC Bank’s services as the best. The poll was conducted at BFM.ge between September 1-14 and 2,222 individuals casted their vote in it.

36% or 793 voters said the TBC Bank offers the best services in Georgia’s banking sector. Bank of Georgia came second in the polls, with 30% or 673 voters.

Ten banks that have most shares on the Georgian market were represented in the poll. Liberty Bank was also named among the three best Geor-

gian banks, with 159 votes, which is only slightly more than those of Bank Republic’s 154.

The rest of the votes in BFM.ge’s poll were allocated the following way: VTB Bank with 117 votes; Procredit Bank with 103 votes; Cartu Bank with 68 votes, Kor Standard Bank with 33 votes, BazisBank with 32 votes, Pasha Bank with 24, other banks received 66 votes in total.

Votes distribution in BFM‘s poll: 2,222 voters participated in BFM.ge’s poll. It is important to note that only one unique vote could be cast from one IP address, which eliminated the possibility of one individual voting several different times.

MCDONALD’S OPENS NEW RESTAURANT IN TBILISI

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cDonald’s new restaurant opened in Tbilisi. The opening ceremony was attended by Tbilisi Mayor David Narmania and the Vice Prime Minister Giorgi Kvirikashvili. The new restaurant, which is located in the vicinity of the US Embassy, is fully adapted for disabled persons. “Another new outlet was opened in the capital, which will create additional jobs. This area, which was a car parking, has revived in the recent period. Here, the Youth Olympic Festival was held and the new sports facilities were built in the neighborhood. After the construction of McDonald’s restaurant, the territory will be further developed”, Narmania says. A total of GEL 4.7 million was invested in the new restaurant. The restaurant employs 60 people.

BATUMI SOCAR HOSTED RECEPTION OF ELISO BOLKVADZE’S MUSIC FESTIVAL

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atumi “SOCAR” Office held reception for Eliso Bokvadze music festival.

Among the honored guests were globally well known Azerbaijan pianist Perhad Badalbeili, also UNESCO Artist for Peace, pianist Eliso Bolkvadze and others. Supreme Council Avtandil Beridze and the Mayor of Batumi Giorgi Ermakov also attended the ceremony.

Perhad Badalbeili talked with CBW and made some comments in this regard.

It is the first time I have visited Batumi and it’s amazing seaside town. I am really pleased that we have arrived to attend Eliso Bokvadze’s music festival. Mrs Eliso is doing a very significant job, not only for Georgia, but for other countries as well. I’m glad that I know such pianists, like Alexander Toradze, Eliso Virsaladz and Eliso Bolkvadze. The people of the world famous name.

“I know that music is a part of cultural heritage and belongs to the intangible cultural heritage

for Georgia. With this festival, we are not only getting acquainted with Georgian music but with world famous artists.” Perhad Badalbeili said.

Eliso Bokvadze who initiated the festival three years ago, notes that it aims at promoting classic music, discovering and supporting young artists.

The fact that famous artists participate in festival is showing that festival has important name, I would like to thank Socar for hosting such ceremony.

In addition serious statements were made at the festival and I think that festival will gain serious outcomes.

TELIASONERA WILL GRADUALLY EXIT GEOCELL AND LEAVE GEORGIAN MARKET

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eliaSonera quites Georgia, who will be Geocell’s new owner is unknown.

TeliaSonera is not a long-term owner in Region Eurasia According to Telecommunications company, the decision was made to gradually cease activities in Eurasia and strengthening positions in European regions, including Sweden.

TeliaSonera will increase focus on its Regions Europe and Sweden within the strategy of creating the new TeliaSonera. A process has been initiated in order to reduce the presence in Region Eurasia and over time fully leave.

Company’s CEO Johan Dennelind announced they will start coping with larger markets.

We realise that this will be a complex task that will take time. We are conducting this process market by market as each country and operation

has its unique situation, but the ambition is to eventually leave the entire region.

TeliaSonera has contributed in improving Eurasian operations, they created more well-managed companies. And now they believe that those companies will operate and develop successfully further.

AGRICULTURE 12 GEORGIA AND THE EU LAUNCH A NEW RURAL DEVELOPMENT COMPONENT IN KAZBEGI caucasus business week

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n Friday, 11 September 2015, the European Union and the Ministry of Agriculture of Georgia presented the new plans for support to Rural Development in Georgia.

Head of the mission “People in Need” Lorian Gonnie greeted the audience and talked about the program.

As the program is implemented together with Ministry of Agriculture of Georgia, Nodar Kereselidze deputy Minister aslo attended the event.

The launching ceremony took place in the municipality of Stepantsminda,and presented three pilot projects in Lagodekhi, Kazbegi and Borjomi municipalities.

The first part of the project will last for 28 months.

Then the project will expand and continue in the

September 21, 2015 #114

future years in other regions of the country.

“Each territory has its own unique features and communities and local authorities need capacities and support to identify and implement their own strategies for development. We came from the very diverse region which is Europe. We have huge experience in developing agriculture and we are glad to share it with Georgia,” said Deputy Head of the EU Delegation to Georgia Carlo Natale.

The ceremony represents the starting point to the EU-funded €3 million support to the rural development component under the European Neighbourhood Programme for Agriculture and Rural Development (ENPARD). The rural development approach recognizes that each territory has its own unique features, and that communities and local authorities need capacities and support

to identify and implement their own strategies for development. On this basis, starting with the three pilot projects in rural areas of Georgia, over the next years EU support will be expanded to other regions, helping Georgia establish a rural development policy following the best practices across Europe.

The EU support to rural areas of Georgia will also help enhance ownership of local development processes, improving capacities and providing resources and incentives for better rural services and jobs in a variety of activities related to agriculture, eco-tourism and other rural businesses.

The new rural development projects in La-

godekhi, Kazbegi and Borjomi municipalities will help create Local Action Groups (LAGs), consisting of representatives from local authorities, private sector and civil society, for the elaboration and implementation of local development strategies.

Partners of these NGOs have longstanding experience of rural development support in Europe, such as Fundación ETEA of Spain, the National Network of Local Action Groups of the Czech Republic and the Angus Council of Scotland.

In general, Georgia was currently benefitting from €52 million in support to agriculture and rural development through ENPARD.

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WORLD NEWS

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Russia Decreased Tariffs for Goods Imported from Iran

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ussia has decreased tariffs for goods imported from Iran to boost mutual trade, Mehdi Sanaei, Iranian Ambassador to Russia said.Moscow has decreased the customs tariffs from 27 percent to 3-7 percent, Sanaei said, Iran ’s official IRNA news agency reported Sept. 17.The ambassador made the remarks in a meeting with Iranian trade delegation, which is in Russia to seek business opportunities.The 52-member delegation includes officials from Iranian Kurdistan, Markazi and Chaharmahal and Bakhtiari provinces trend news reported.

A Microsoft Store has opened in Tehran

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Iran FM Visits China

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hina and Iran find mutual benefits in many areas,” Iranian Foreign Minister Mohammad Javad Zarif told his Chinese counterpart, Wang Yi, at the beginning of a meeting to pay a visit to Beijing at the invitation of his Chinese counterpart as well as Prime Minister Li Keqiang.

China is the biggest customer of Iranian oil and Zarif said their economies were “complementary”. The two countries faced “similar challenges as well as opportunities”, he said.

He praised China’s “positive” role in the nuclear

World Powers Undermining Iran With Low Oil Price

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ran’s President Hassan Rouhani says certain major oil producers collaborated with world powers to put Iran and Russia under pressure by taking measures to bring down the prices of oil. “During the days [that Iran was under the pressure of the sanctions], some big producers of oil that are dependent on world powers decided to reduce the price of oil from $110 per barrel to $40 per barrel to undermine Iran and recently even Russia,” Rouhani has been quoted by the media as saying. Oil revenues provide the lifeline of the Iranian economy and officials have already acknowledged that falling prices have severely undermined the country’s economic performance.

negotiations between Iran and the P5+1 countries and expressed hope that Beijing would proceed with its approach.

The Chinese premier, for his part, said the Vienna nuclear agreement would help solve ongoing problems in the Middle East and across the world.

“We both agree that the unrest in West Asia and North Africa regions is not sustainable, it should be solved in a political way and we should seek a solution that can address the concerns of different parties,” Wang said.

On the afternoon of September 15, 2015, Premier

Li Keqiang met with Foreign Minister Mohammad Javad Zarif of Iran at the Great Hall of the People.

Li Keqiang pointed out that China attaches great importance to Iran and China-Iran relations. China is willing to make joint efforts with Iran to continue to grasp the general direction of the development of bilateral relations from a strategic perspective, thus push bilateral relations to a higher and deeper level and jointly maintain and promote peace and stability in the region and the neighboring areas of the two countries..

Microsoft Store has opened in Tehran for sales of mobile phones produced by the multinational US technology giant, an Iranian news agency says. If confirmed, it will be the first US company to open a presence in Iran, coming on the heels of a landmark nuclear agreement reached in July to lift all trade sanctions on the Islamic Republic. According to the Tasnim news agency on Thursday, “the American company of Microsoft stole a lead to open a mobile phone sales store in Iran”.

“This five-unit store has been opened by Pars Samtel, the exclusive agent of Microsoft mobile phones, at Iran Mobile Marketplace on Hafez Avenue in Tehran, with the company’s banner ad clarifying that the store is the first in Iran,” it said.Microsoft has been long eyeing the huge Iranian market of 80 million people where over 90% of computers use a version of the company’s Windows.

US Senate Democrats Blocked a Resolution Against the Iran Agreement

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S Senate Democrats have blocked a resolution against the Iran agreement for a third time in a week, sealing a major foreign policy victory for President Barack Obama.As was expected, the Republicans failed once again on Thursday to gather the 60 votes needed for the resolution of disapproval in the 100-member chamber. With neither chamber of Congress expected to go for another vote on the Iran nuclear agreement, the Obama administration is certain to save the agreement after months of intense lobbying efforts.

Opponents of the Vienna nuclear accord appeared to acknowledge defeat ahead of Thursday’s vote.”This agreement is moving forward, we all know that,” said Cardin, the ranking member of the Foreign Relations Committee.GOP Senator Bob Corker said that Republicans understand that “42 senators are causing a filibuster to take place and that we’re not every going to be able to get to that vote on conscience.”

Iran could turn into the largest exporter of natural gas to the European Union by 2030

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ollowing the implementation of the Joint Comprehensive Plan of Action (JCPOA) and the ensuing lifting of sanctions against Tehran, a report said. “That would put future gas supplies from Iran on a similar level to current imports from North Africa and help reduce the bloc’s dependence on shipments from Russia. Russia currently ships around 130bcm a year to the EU,” the report added.Following the conclusion of nuclear talks between Iran and the Group 5+1 (Russia, China, the US, Britain, France and Germany) on July 14, European business executives and politicians are already shuttling to Iran to lay the groundwork for investment and trade.The comprehensive nuclear deal between Iran and the six powers would terminate all nuclear-related sanctions imposed on Iran after coming into force tansim news reported.

Meeting with an Iranian visiting delegation, Georgia’s Minister of Finance called for boost in ties with Tehran

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ccording to IRNA, a Georgian News Agency reported a meeting between Georgian Finance Minister Nodar Khaduri and a delegation from an Iranian investing company.

During the meeting the Georgian official expressed his country’s willingness for expansion of economic and trade ties with Tehran as he described development of economic and commercial cooperation with Iran as significant in near future.

Khaduri also recounted customs and taxation laws as well as investment and entrepreneurship atmosphere in Georgia for the Iranian delegation expressing hope for having the Iranian company invest in Georgia’s desired projects.

The same report accounts that the Iranian side has voiced interest in areas of energy, construction, transportation, infrastructures, and communication.

To get further acquainted with the company’s activities, the Iranian company also invited the Georgian minister to visit Iran.

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Embassy United States of America Embassy 11 Balanchivadze St., Dighomi Dstr., Tbilisi Tel: 27-70-00, 53-23-34 E-mail: tbilisivisa@state.gov; askconsultbilisi@state.gov United Kingdom of Great Britain and Northern Ireland Embassy 51 Krtsanisi Str., Tbilisi, Tel: 227-47-47 E-mail: british.embassy.tbilisi@fco.gov.uk Republic of France Embassy 49, Krtsanisi Str. Tbilisi, Tel: 272 14 90 E-mail: ambafrance@access.sanet.ge Web-site: www.ambafrance-ge.org Federal Republic of Germany Embassy 20 Telavi St. Tbilisi Tel: 44 73 00, Fax: 44 73 64 Italian RepublicEmbassy 3a Chitadze St, Tbilisi, Tel: 299-64-18, 292-14-62, 292-18-54 E-mail: embassy.tbilisi@esteri.it Republic of Estonia Embassy 4 Likhauri St., Tbilisi, Tel: 236-51-40 E-mail: tbilisisaatkond@mfa.ee Republic of Lithuania Embassy 25 Tengiz Abuladze St, Tbilisi Tel: 291-29-33 E-mail: amb.ge@urm.lt Republic of Latvia Embassy 16 Akhmeta Str., Avlabari, 0144 Tbilisi.

E-mail: embassy.georgia@mfa.gov.lv Greece Republic Embassy 37. Tabidze St. Tbilisi Tel: 91 49 70, 91 49 71, 91 49 72 Czech RepublicEmbassy 37 Chavchavadze St. Tbilisi ;Tel: 291-67-40/41/42 E-mail: czechembassy@gol.ge Web-sait: www.mzv.cz Japan Embassy 7 Krtsanisi St. Tbilisi Tel: +995 32 2 75 21 11, Fax: +995 32 2 75 21 20 Kingdom of Sweden Embassy 15 Kipshidze St. Tbilisi Tel: +995 32 2 55 03 20 , Fax: +995 32 2 22 48 90 Kingdom of the Netherlands Embassy 20 Telavi St. Tbilisi Tel: 27 62 00, Fax: 27 62 32 People’s Republic of China Embassy 52 Barnov St. Tbilisi Tel: 225-22-86, 225-21-75, 225-26-70 E-mail: zhangling@access.sanet.ge Republic of Bulgaria Embassy 15 Gorgasali Exit, 0105 Tbilisi, Georgia Tel: +995 32 291 01 94; +995 32 291 01 95 Fax: +99 532 291 02 70 Republic of Hungary Embassy 83 Lvovi Street, Tbilisi Tel: 39 90 08; E-mail: hunembtbs@gmail.com State of Israel Embassy 61 Agmashenebeli Ave. Tbilisi Tel: 95 17 09, 94 27 05 Embassy of Swiss Confederation’s Russian Federation Interests Section Embassy 51 Chavchavadze Av., Tbilisi Tel: 291-26-45, 291-24-06, 225-28-03 E-mail: RussianEmbassy@Caucasus.net Ukraine Embassy 75, Oniashvili St., Tbilisi Tel: 231-11-61, 231-12-02, 231-14-54 E-mail: ukraina_pu@wanex.net; emb_ge@mfa.gov.ua Consular Agency: 71, Melikishvili St., Batumi Tel: (8-88-222) 3-16-00/ 3-14-78 Republic of Turkey Embassy 35 Chavchavadze Av., Tbilisi Tel: 225-20-72/73/74/76 E-mail: turkemb.tbilisi@mfa.gov.tr Address: 8, M. Abashidze str.

Batumi, Georgia; tel: (8-88-222) 7 47 90 Republic of Azerbaijan Embassy Kipshidze II-bl . N1., Tbilisi Tel: 225-26-39, 225-35-26/27/28 E-mail: tbilisi@mission.mfa.gov.az Address: Dumbadze str. 14, Batumi Tel: 222-7-67-00 Fax: 222-7-34-43 Republic of Armenia Embassy 4 Tetelashvili St. Tbilisi Tel: 95-94-43, 95-17-23, 95-44-08 E-mail: armemb@caucasus.net Web: www.armenianembassy.ge Consulate General, Batumi Address: Batumi, Gogebashvili str. 32, Apt. 16 Kingdom of Spain Embassy Rustaveli Ave. 24, I floor, Tbilisi Tel: 230-54-64 E-mail: emb.tiflis@maec.es Romania Embassy

TBILISI GUIDE

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7 Kushitashvili St., Tbilisi Tel: 38-53-10; 25-00-98/97 E-mail: ambasada@caucasus.net Republic of Poland Embassy 19 Brothers Zubalashvili St., Tbilisi Tel: 292-03-98 Email:tbilisi.amb.sekretariat@msz.gov.pl Web-site: www.tbilisi.polemb.net Republic of Iraq Embassy Kobuleti str. 16, Tbilisi Tel: 291 35 96; 229 07 93 E-mail: iraqiageoemb@yahoo.com Federative Republic of Brazil Embassy Chanturia street 6/2, Tbilisi Tel.: +995-32-293-2419 Fax.: +995-32-293-2416 Islamic Republic of Iran Embassy 80, I.Chavchavadze St. Tbilisi, Tel: 291-36-56, 291-36-58, 291-36-59, 291-36-60; Fax: 291-36-28 E-mail: iranemb@geo.net.ge United Nations Office Address: 9 Eristavi St. Tbilisi Tel: 225-11-26/28, 225-11-29/31 Fax: 225-02-71/72 E-mail: registry.geo@undp.org Web-site: www.undp.org International Monetary Fund Office Address : 4 Freedom Sq., GMT Plaza, Tbilisi Tel: 292-04-32/33/34 E-mail: kdanelia@imf.org Web-site: www.imf.ge Asian Development Bank Georgian Resident Mission Address: 1, G. Tabidze Street

Freedom Square 0114 Tbilisi, Georgia Tel: +995 32 225 06 19 E-mail: adbgrm@adb.org; Web-site: www.adb.org World Bank Office Address : 5a Chavchavadze Av., lane-I, Tbilisi, Georgia ; Tel: 291-30-96, 291-26-89/59 Web-site: www.worldbank.org.ge Regional Office of European Bank for Reconstruction and Development Address: 6 Marjanishvili St. Tbilisi Tel: 244 74 00, 292 05 13, 292 05 14 Web-site: www.ebrd.com Representation of the Council of Europe in Georgia Address : 26 Br. Kakabadze, Tbilisi Tel: 995 32 291 38 70/71/72/73 Fax: 995 32 291 38 74 Web-site: www.coe.ge Embassy of the Slovak Republic Address: Chancery: 85 Irakli Abashidze St. Tbilisi, 0162 Georgia Consular Office: 38 Nino Chkheidze St. Tbilisi, 0102 Georgia Phone: 2 222 4437, 2 296 1913 e-mail: emb.tbilisi@mzv.sk

Hotels in Georgia TBILISI MARRIOTT Tbilisi , 13 Rustaveli Ave. Tel: 77 92 00, www.marriott.com COURTYARD MARRIOTT Tbilisi , 4 Freedom Sq. Tel: 77 91 00 www.marriott.com RADISSON BLU HOTEL, TBILISI Rose Revolution Square 1 0108, Tbilisi Tel: +995 32 402200 radissonblu.com/hotel-tbilisi RADISSON BLU HOTEL, BATUMI Ninoshvili Str. 1, 6000 Bat’umi, Georgia Tel: 8 422255555 http://radissonblu.com/hotel-batumi SHERATON METECHI PALACE Tbilisi , 20 Telavi St. Tel: 77 20 20, www.starwoodhotels.com SHERATON BATUMI 28 Rustaveli Street • Batumi Tel: (995)(422) 229000 www.sheratonbatumi.com HOLIDAY INN TBILISI Business hotel Addr: 1, 26 May Square Tel: +995 32 230 00 99 E-mail: info@hi-tbilisi.com Website: http://www.hi-tbilisi.com BETSY’S HOTEL With Marvellous Tbilisi Views Addr: 32/34 Makashvili St. Tbilisi Tel: +995 32 293 14 04; +995 32 292 39 96 Fax: +995 32 99 93 11 E-mail: info@betsyshotel.com Website: http://www.betsyshotel.com

Restaurants CORNER HOUSE Tbilisi, I. Chavchavadze ave. 10, Tel: 0322 47 00 49; Email: contact@cornerhouse.ge RESTAURANT BARAKONI Restaurant with healthy food.

Georgian-European Cuisine Agmashenebeli Alley 13th Phone: 555 77 33 77 www.barakoni.com CHARDIN 12 Tbilisi , 12 Chardin St. , Tel: 92 32 38 CAFE 78 Best of the East and the West Lado Asatiani 33, SOLOLAKI 032 2305785; 574736290 BREAD HOUSE Tbilisi , 7 Gorgasali St. , Tel: 30 30 30 BUFETTI - ITALIAN RESTAURANT Tbilisi , 31 I. Abashidze St. , Tel: 22 49 61 DZVELI SAKHLI Tbilisi , 3 Right embankment , Tel: 92 34 97, 36 53 65, Fax: 98 27 81 IN THE SHADOW OF METEKHI Tbilisi , 29a Tsamebuli Ave. , Tel: 77 93 83, Fax: 77 93 83 SAKURA - JAPANESE RESTAURANT Tbilisi , 29 I. Abashidze St. , Tel: 29 31 08, Fax: 29 31 08 SIANGAN - CHINESE RESTAURANT Tbilisi , 41 Peking St , Tel: 37 96 88 VERA STEAK HOUSE Tbilisi , 37a Kostava St , Tel: 98 37 67 BELLE DE JOUR 29 I. Abashidze str, Tbilisi; Tel: (+995 32) 230 30 30 VONG 31 I. Abashidze str, Tbilisi Tel: (+995 32) 230 30 30 BRASSERIE L’EXPRESS 14 Chardin str, Tbilisi Tel: (+995 32) 230 30 30 TWO SIDE PARTY CLUB 7 Bambis Rigi, Tbilisi Tel: (+995 32) 230 30 30

Cinemas AKHMETELI Tbilisi. “Akhmeteli” Subway Station Tel: 58 66 69 AMIRANI Tbilisi. 36 Kostava St. Tel: 99 99 55, RUSTAVELI Tbilisi. 5 Rustaveli Ave. Tel: 92 03 57, 92 02 85, SAKARTVELO Tbilisi. 2/9 Guramishvili Ave. Tel: 8 322308080,

SH. RUSTAVELI STATE THEATRE Tbilisi. 17 Rustaveli Ave. Tel: 93 65 83, Fax: 99 63 73 TBILISI STATE MARIONETTE THEATRE Tbilisi. 26 Shavteli St. Tel: 98 65 89, Fax: 98 65 89 Z. PALIASHVILI TBILISI STATE THEATRE OF OPERA AND BALLET Tbilisi. 25 Rustaveli Ave. Tel: 98 32 49, Fax: 98 32 50

Galleries ART GALLERY LINE Tbilisi. 44 Leselidze St. BAIA GALLERY Tbilisi. 10 Chardin St. Tel: 75 45 10 GALLERY Tbilisi. 12 Erekle II St. Tel: 93 12 89

Real Estate International Real Estate Company (IREC) Tbilisi. 9 P. Aslanidi St. Tel: +995 32 238 058 Mob: 599 95 76 71 Email: Info@irec.ge www.irec.ge

GSS Car rental offers a convenient service for those who are interested in renting car in Georgia. Rental fleet mainly consist of Japanese made SUV’s, the company has various models of cars including sedans and minivans which are in good technical condition.

Contact information: Email: info@gsservices.ge.

Address: Shalva Dadiani 10

Akhvledianis Khevi N13, Tbilisi, GE. +995322958377; +995599265432

Theatres A. GRIBOEDOV RUSSIAN STATE DRAMA THEATRE Tbilisi. 2 Rustaveli Ave. Tel: 93 58 11, Fax: 93 31 15 INDEPENDENT THEATRE Tbilisi. 2 Rustaveli Ave. Tel: 98 58 21, Fax: 93 31 15 K. MARJANISHVILI STATE ACADEMIC THEATRE Tbilisi. 8 Marjanishvili St. Tel: 95 35 82, Fax: 95 40 01 M. TUMANISHVILI CINEMA ACTORS THEATRE Tbilisi. 164 Agmashenebeli Ave. Tel: 35 31 52, 34 28 99, Fax: 35 01 94 METEKHI – THEATRE OF GEORGIAN NATIONAL BALLET Tbilisi. 69 Balanchivadze St. Tel: (99) 20 22 10 MUSIC AND DRAMATIC STATE THEATRE Tbilisi. 182 Agmashenebeli Ave. Tel: 34 80 90, Fax: 34 80 90 NABADI - GEORGIAN FOLKLORE THEATRE Tbilisi. 19 Rustaveli Ave. Tel: 98 99 91 S. AKHMETELI STATE DRAMATIC THEATRE Tbilisi. 8 I. Vekua St. Tel: 62 59 73

THE BEST GEORGIAN HONEY OF CHESTNUTS,ACACIA AND LIME FLOWERS FROM THE VERY HART OF ADJARA MATCHAKHELA GORGE IN THE NETWORK OF GOODWILL, NIKORA AND SMART

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caucasus business week

Two residential complexes include 464 apartments with parking, green area, outdoor swimming pool and playground for children. ”Metrocity” is unique with its special maintenance services.

“Metrocity” integrates two five star hotels, private school and residences with private swimming pool, panoramic terrace restaurants, casinos, Spa, shopping center including 100 brand stores, sport club, cinema, bowling center, playground for children, gold sand beach and the biggest conference hall in Transcaucasia for 1500 guests.”MetroCity” can be found just 2 km from Batumi International Airport and 500m from the city center. The complex with its location is harmoniously mixed with mountains and sea views.

The project implementation has begun in February 2015 and will be successfully completed in April 2017.

Residences from 38 m2 to 300 m2 are available.

10% Deposit 36 MONTH INTERNAL CREDIT 25% Deposit 60 MONTH INTERNAL CREDIT

STARTING PRICE IS FROM 1425 $ Address: Leh and Maria Kachinsky Str.1, Batumi Tel: +995 577 14 17 14 sales@metrocity.ge www.facebook.com/MetroCity.GE

www.metrocity.ge

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