Caucasus Business Week #134 by Caucasian Business Week

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BUSINESS WEEK February 22, 2016 #134

February 22, 2016, Issue 134

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Nino Zambakhidze: We Appreciate Growing Efforts in Agriculture Sector Pg. 6

ANAKLIA SEAPORT POTENTIAL AND NEEDS Anaklia seaport is one of the superb projects that will be implemented in Georgia after multiyear discussions. Anaklia seaport is considered a component of another grand and important project of Silk Road and a main sea transportation hub to connect Europe with Asia. Pg. 9

MORE THAN 100 000 BORROWERS LOST PROPERTY IN GEORGIA

Kadagidze’s Presidency Ends

The portfolio of foreign currency denominated loans that are guaranteed by property has increased by 1.658 billion GEL year on year. This is a catastrophically high ﬁgure for the past years. Pg. 8

GEORGIA’S PERSPECTIVES AFTER VISA REGIME REMOVAL WITH IRAN

This signiﬁes the citizens of Iran who own ordinary passports of Iran are let enter Georgia without entrance visas and stay in the country for 45 days. Pg. 7

Pg. 4-5

SANOFI AGAINST FREEDOM OF SPEECH

THIRD MEETING OF BUSINESS CAFÉ Consultancy Company Insource continues Business Café meetings with exclusive sponsorship of PASHA Bank. The third meeting of the project was held in Rooms Hotel, Tbilisi, On February 17th. Pg. 8

Pharmaceutical Giant Threatens Georgian Media Outlet CBW editorial staff is obliged to respond to the letter sent to us by Sanofi, an international pharmaceutical giant. We at CBW see this letter as a direct threat and an unprecedented fact of pressure on mass media in the country. Ms. Nadia Labodovskaya, the head of the communications department of Sanofi Central Asia office, has contacted the Caucasus Business Week (CBW) editorial board and requested to remove the mention of Sanofi’s name from several articles published on the CBW website. The

articles pertain to the entrance of Humanity Georgia pharmaceutical company into the Georgian market. The article includes a quotation from our respondent, the Humanity Georgia director general. In this quotation Humanity Georgia’s director general says that a major part of their employees has gained working experience in such internationally renowned companies as Sanoﬁ, Pﬁzer, etc. CBW.GE Company has applied to Humanity Georgia to verify the information and received

an answer that several persons among their current employees have worked for Sanoﬁ (of which two ones currently work in the Humanity Georgia management chain), several ones have previously worked for Pﬁzer, Roche, Glaxosmithkline, Novartis, Berlon Chemie, Abbot, Teva and Ratiopharm / Merck Serono. Currently, these persons represent Humanity Georgia in the high and medium chains of the company management, the company explained. Pg. 2

ILIA TSULAIA: FOOTWEAR IMPORTSSALES WAS MY FIRST BUSINESS ACTIVITY Pg. 10

2 MAIN EVENTS KOBA GVENETADZE AT BUDGET AND FINANCE COMMITTEE MEETING

y the decision of the Georgian Presiden, Koba Gvenetadze is presented as a candidate member of the National Bank Board. At Budget and Finance Committee Meeting, he expressed his own visions on National Bank‘s main activities. According to him, it is rather important government to increase the reliance on domestic currency. In order to make Georgian Lari stronger, National Bank of Georgia has to deal with dedollarization, in other words Larization process.

GEORGIA ENHANCES IMPORTS OF RUSSIAN ELECTRICITY TO REGULATE SITUATION IN ABKHAZIA

e have taken decision to select the Russian Federation as the shortest and operative direction for imports of additional electricity volumes to somehow regulate the current heavy situation in Abkhazia, Georgian Energy Minister Kakha Kaladze said. At this stage, the central Authorities of Georgia cannot control the territory of Abkhazia, but Georgia, the international law and international community consider the occupied territories as a constituent part of the same country and consequently, it is the political responsibility of the Georgian government to equally care for its citizens. This is our goodwill and strong position.

NEWSROOM

SANOFI AGAINST FREEDOM OF SPEECH Pharmaceutical Giant Threatens Georgian Media Outlet

e at CBW want to stress that the article in question did not state that the majority of Humanity Georgia’s employees have worked speciﬁcally for Sanoﬁ, but rather a range of internationally represented pharmaceutical companies. This information does not represent a subject of special interest for CBW’s editorial

requests Sanoﬁ’s name not to be mentioned without a written letter of consent with the company. Otherwise, as the head of the Sanoﬁ representation in the Caucasus, Ms. Giorgobiani threatens to apply to the court against CBW. CBW.GE assesses this request as an act of threat and pressure staged by an international company against our media drugs internationally and represents a multi-national pharmaceutical enterprise. We at CBW collect and spread information independently and comprise a small media outlet. But we do believe that amid

GEORGIA ATTRACTS LARGER QUANTITY OF CARGO FROM KAZAKHSTAN

urther development of economic relations between Georgia and Kazakhstan has been discussed. Visit of the ﬁrst Deputy Prime Minister of Kazakhstan Bakytzhan Sagintayev to Georgia was planned in Davos during the meeting of Prime Ministers of Kazakhstan and Georgia. “We discussed ways of attraction of larger quantity of cargo from Kazakhstan and means of state support to this process; Kazakh investor’s return to Tbilisi gas distribution company and relevant preconditions, as well as existing bilateral cooperation prospects. We have to do everything to utilize this potential.

GEORGIA KEEPS THE POSITION OF “MOSTLY FREE” IN INDEX OF ECONOMIC FREEDOM

n the recently released 2016 Index of Economic Freedom Georgia has been listed as a ‘mostly free’ country. According to The Heritage Foundation “Index of Economic Freedom” 2016, the rating score for Georgia has worsened by 0.4 points compared to the previous year and it ﬁnally comprised 72.6 points. Georgia stands for 23rd position among 178 countries from around the world and keeps the status of “mostly free”. In the European region Georgia took 12th place among 43 countries.

February 22, 2016 #134

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board. We have verified the information to receive reaffirmation from our respondent and to confirm that the information spread by our agency contains no factual errors or misinformation. It is absolutely unclear to us on what grounds Ms. Nadia Labodovskaya, the communications head of the Sanofi Central Asia office, and Ms. Marina Giorgobiani, the head of the Sanofi representation in the Caucasus Region, are offended by CBW’s editorial content. Moreover, the position expressed by Ms. Giorgobiani is both unclear and unacceptable. Her letter demanding to take down Sanofi’s mention from CBW’s content violates all norms of healthy relations with mass media. Ms. Giorgobiani

agency. CBW.GE is ready to protect its rights around the above-mentioned issue at any instance or ofﬁce. Sanoﬁ manufactures and distributes

the current open and transparent business relations, scales of this or that company cannot be a ground for staging similar attacks against representatives of mass media. Large-scale companies should be even more conscious to not stage pressure and make threatening statements against small independent media outlets. Due to the written threat from Sanofi’s Caucasus office, CBW.GE plans to apply to domestic and international media agencies and associations, as well as to the Sanofi head office for an official statement commenting on the fact of the pressure staged against CBW’s editorial integrity. The CBW Editorial Board

FINANCE MINISTER: WE EXPECT GEL EXCHANGE RATE TO SEE SERIOUS UPTURN

e expect the Georgian national currency will see serious upturn in the midterm period, Georgian Finance Minister Nodar Khaduri noted in his interview with the Rezonansi newspaper. The situation is getting stabilized in the neighboring countries and this factor will foster the GEL exchange rate enhancement, Khaduri said.

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The Editorial Board Follows Press Freedom Principles Publisher: LLC Caucasian Business Week - CBW Address: Aleksidze Street 12 Director: Levan Beglarishvili Mobile phone: +995 591 013936 WWW.CBW.GE Email: caucasianbusiness@gmail.com

Editor: Nino Gojiashvili. Mobile phone: 595 050404 Reporters: Nutsa Galumashvili; Lazare Gvimradze; Shiva Parizad. Designer illustrator: Ilia Chrelashvili. Technical Assistant: Giorgi Kheladze

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

PUBLICITY February 22, 2016 #134

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NBG

February 22, 2016 #134

caucasus business week

MERAB JANIASHVILI Economic Analyst

Kadagidze’s Presidency Ends

iorgi Kadagidze, the President of the National Bank of Georgia (NBG), will finish his duty term on February 25. For seven years (2009-2016) he has chaired the central bank of Georgia. This period has recorded both progressive and regressive tendencies and we will expose several ones in this article. Naturally, it is difficult to valuably and perfectly highlight Giorgi Kadagidze’s performance in the NBG in one newspaper article. Even the whole newspaper issue would not suffice to this end. Seven years cover a long period and even research works can be conducted to valuably explore this period. Therefore, we will make focus on famous and more or less publicized facts from this period. Giorgi Kadagidze occupied the NBG President’s position in February 2009, amid deep financial crisis in Georgia and worldwide. Two years before he chaired the financial supervision agency that had been breached from the NBG six years before. Before Kadagidze’s appointment, for two years the NBG was functioning without a president, in practice. The vice president David Amaghlobeli was managing the NBG. At the beginning of 2009 the then Authorities was actively discussing probability of abolishing the NBG entirely, as well as of replacing GEL, as an only payment currency, and moving to the multicurrency regime. However, after the appointment, Kadagidze persuaded everybody that he objected to abolishing the central bank and the national currency. Shortly, the interbank currency exchange was cancelled and it was replaced by the currency auction system. This signifies the GEL exchange rate determination started due to modern practice. However, Kadagidze closed the information on currency auction demands under the absurd pretexts as if this information could be misinterpreted in various directions. Consequently, the Georgian society lost access to the information on the volume of demand for this or that currency. The GEL exchange rate formation issues were classified, in practice. Thus, Kadagidze took the first decision after his appointment as the NBG President. As noted above, it is impossible to cover all positive and negative aspects of Kadagidze’s performance in the same article. Therefore, we have selected 4-4 samples in each direction that are easily perceptible and understandable for the society. Thus, we refrain from making deep economic assessments.

NBG

February 22, 2016 #134

Positive Commercial Banks Were Stripped of Noncore Businesses

In October 2014, according to the NBG decision, Georgia-based commercial banks were stripped of the rights for doing noncore businesses. As a result, the bank sector is entitled to carry out only traditional finance services. Moreover, the regulations for issuing licenses for undertaking noncore business were also tightened and the pre-2008 practice was restored. The commercial banks that had noncore assets were given a reasonable time until December 31, 2015 for gradual withdrawal from their noncore businesses. The business sector and economic experts had long suggested the NBG to take this decision and the national bank finally satisfied this request. It should be also noted the NBG smoothed noncore business regulations in 2008 with the aim to alleviate the global economic crisis effect on Georgia. The NBG substantiated the decision by the intention to avoid negative affect on competition in the real economic sector. The existing practice generated risks for clash of interests, the NBG noted then. It is interesting that there is various practices in various countries. In 49 countries commercial

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banks are banned to keep noncore assets, while 48 countries have set strict regulations on noncore business activities.

Protection of Consumer Rights Protecting the rights of users of financial services is one of the priorities of the NBG. For many years Georgian consumers stress that commercial banks violate the consumer rights and request from the government and the NBG to take efficient steps. The national bank has carried out several important initiatives under the ruling of Giorgi Kadagidze. The fact is our society keeps criticizing commercial banks even today and it is difficult to assert the consumer rights are protected by credit institutions, but Giorgi Kadagidze has genuinely carried out certain steps to improve the situation. In May 2011 the consumer rights protection department launched operation at the NBG. The department is to carry out continuous monitoring over the finance sector’s consumer market. Moreover, this department administers the fulfillment of “regulations for supply of required information to consumers by commercial banks when providing banking services”. Under these regulations,

that were enacted on June 1, 2011, commercial banks must supply all required information to the clients that are related to taking loans and explain the risks from unpaid loans. At the same time, commercial banks are obliged to inform clients about the efﬁcient annual interest rate on loans that include all expenditures required for the credit service. At the same time, commercial banks are banned to impose more than 2% of the principal sum on early repaid loans. As a result, loans porting practice was expanded.

Currency Reserves Hit Record High Geogia’s currency reserives have reached the record high under the ruling of Giorgi Kadagidze. In 2012 Georgia’s international currency reserves marked 2.65 billion USD, while this amount slightly declined in the next years. The NBG international currency reserves due to years (USD): 2010 - $2 billion; 2011 - $2.5 billion; 2012 - $2.65 billion; 2013 - $2.6 billion; 2014 - $2.43 billion; 2015 - $2.32 billion;

The Banker Named Giorgi Kadagidze the Best Manager of Central Bank in Europe in 2014 The Banker, the British financial magazine owned by the Financial Times Group, has named Giorgi Kadagidze as the best manager of a central bank in Europe for 2014. The world’s one of the influential editions carries out annual research to name leading financial institutions and the best bankers in 149 countries. The winners were named based on the report of the previous year. The Banker: - “The well-capitalized and stable bank sector that has shown sustainability to main shocks, as the main characteristics for the past years in Georgia. As a result, the Georgian National Bank President Giorgi Kadagidze shared the Georgian experience in the bank sector supervision to the central banks of Kazakhstan, Tajikistan and other countries as part of the WBfinanced program in 2014”.

Negative decreased to 60% by autumn 2014. However, the GEL exchange rate depreciation inspired an upturn in the dollarization rate again and the deposits dollarization ratio marked 69% by the end of 2015. The international experience suggests that several countries have overcome this problem in 10 years. Thus, the Larization campaign announced by Giorgi Kadagidze as one of the main priorities thoroughly failed.

Record Low and High Inflation Rates The NBG’s key assignment is to ensure stability of prices, id est, regulation of inflation processes. Inflation turned out an inordinate problem for Kadagidze and the central bank. Inflation tendencies were permanently chasing the Georgian economy and the Kadagidze’s performance period could not be exception. The highest inflation rate in the 2009-2016 period was registered in May 2011, when the annual inflation rate marked 14.3%. This figure was by only 0.2% higher than Georgia’s lowest ever inflation rate of 14.5% that was recorded in July 2006, under the management of Roman Gotsiridze. Moreover, the record deflation of - 3.3% was recorded under the ruling of Giorgi Kadagidze. The fact was registered in May 2012. All economic experts know that deflation is worse than inflation. It should be also noted, starting 2009 the central bank follows the target inflation rate monetary policy. In this regime, the NBG preliminarily determines the target inflation rate, id est, the figure that should not be over the predetermined annual inflation rate. Regretfully, the NBG’s all target inflation rates turned out unrealistic and erroneous. Therefore, the country had to respond to either deflation or inflation tendencies for many years. For the past 7 years, the in-

GEL’s Historical Bottom flation tendencies have not grown into dramatic developments (excluding the year of 2011, the annual inflation recorded two-digit figures), but the inflation rate was not curbed within the target benchmarks.

Failure of Larization The public trust to the Georgian national currency is low and the high dollarization coefficient in the bank sector proves this consideration. According to the last reports, the dollarization coefficient is 69% in the bank sector. This signifies the ratio of foreign currency denominated deposits in the bank sector accounts for ¾. In 2010 the new NBG President Giorgi Kadagidze announced the dollarization coefficient reduction to be one of the priorities of the central bank. He also introduced a new term to call the new campaign – Larization. The Larization project aimed at developing the national currency money market and reducing the Dollarization volume. Six years ago Kadagidze asserted that the Larization would protect Georgian citizens and the business sector from currency risks. In spring 2010 the NBG President announced the commencement of the Larization campaign, the dollarization coefficient in the bank sector constituted 68%-69%. By the end of 2010 the dollarization coefficient slightly increased to 70% and after periodic volatilities the coefficient

Giorgi Kadagidze and his supporters were permanently asserting that the GEL exchange rate stabilization issue was beyond the NBG responsibilities. This is rather an ordinary lie to escape the responsibility, because the NBG is an only instance that holds a direct leverage to affect the GEL exchange rate. At the same time, the GEL exchange rate directly affects the price growth tendencies and it is the direct obligation of the national bank to stabilize the general level of prices. In 2009-2016 the Georgian national currency was less stable, but two periods should be paid highlighted. In 2010 the GEL exchange rate fell to 1.88 point from 1.69 point and then strengthened again to 1.63 point. In 2014-2016 the GEL exchange rate against USD depreciated by about 40% to 2.49 point from 1.75 point and the Georgian national currency saw its historical bottom.

Cartu Bank Case Among the mistakes Giorgi Kadagidze has made, the case with Cartu Bank is one of the most important and politically motivated issues. The NBG president failed to remain unbiased, he did not protect the commercial bank and acted as an ordinary member of the then ruling United National Movement party. Everything started when law enforcers seized Cartu Bank’s cash of several millions of GEL under the pretext of money laundering. Then the parliament of Georgia amended the law on enforcement proceedings and the tax code and stripped commercial banks of the primary mortgager rights. Commercial banks regained the primary mortgaging rights in April 2012. In reality these amendments were enacted against Cartu Bank, while these changes threatened the whole bank system and all international organizations and commercial banks were talking about this. Kadagidze preferred to keep silent and did not protect Cartu Bank and the whole bank system of Georgia. Additional legislative amendment was made on April 30, 2012 to the law on national bank and the parliament removed the entry, under which the NBG board member could be only ﬁnancier or/ and economist, but no more than 2 members. In two weeks after the enactment of the changes, on May 15, 2012 the parliament approved two new members of the NBG board, including the former assistant of Giorgi Kadagidze, with the profession of an engineer-chemist, and another member was a lawyer. After these steps the NBG board practically lost its function as the supreme managing board of the NBG and Giorgi Kadagidze set full control on the Georgian central bank.

INTERVIEW caucasus business week

February 22, 2016 #134

WE APPRECIATE GROWING EFFORTS IN AGRICULTURE SECTOR The new Authorities of Georgia have outlined the agriculture sector as a priority direction. Despite the three-year efforts, a lot of problems still require resolution. There are a lot of obstacles that frustrate the sector development. However, there are exceptional cases too that have made a successю As a result, valuable farms have been created. Therefore, it is always interesting to receive information on the experience of similar projects and entrepreneurs. Today we introduce one of them – Nino Zambakhidze, the founder and head of the Georgian Farmers Association.

- What challenges have you faced when trying to become a successful farmer? - The main problem consisted in the fact I lacked for due knowledge and skills, because I have entirely different specialty and I started my career in the absolutely different ﬁeld. Moreover, there were no people around me who would provide valuable advises and suggestions to follow the correct way.

It was 2007 when I decided to take efforts in the agriculture sector. In that period, agriculture was not considered a business field and the then Authorities did not prioritize this direction. Therefore, we lacked for sufficient information on how to transform farmer’s trade into a genuine business. Grant component was an only way. In tat period and today the US government provides the agriculture sector support programs as part of the Millennium Challenge program. Today, financial resources have increased for this sector. More nongovernmental organizations and donors have made focus on transforming the agriculture activities into real business. I developed a grant proposal and won a grant with a co-participation component.

Today we should realize that the business cannot be started through only grants. The co-participation component is necessary. The donor party must know that you put your savings in your own undertaking and you treat this undertaking as the real business. This philosophy does not only imply to create something by grant to implement the project through the grant maturity period and then to close the business. If you want to reach a success in your business, you should be ready to even mortgage your house. Risks should be shared by NGOs, donors and the businessmen. If somebody takes risks for you, you should also take risks for your business. There were no consultants in the period when I started my business and this issue remains problematic even today, despite a lot of efforts taken. When I started my business I used to collect required information in the internet and I wrote a business plan without assistance. Today there are

many consulting companies and business operators to receive due information. Today everybody is tuned to support each other. Today there is no competition in the agriculture sector. The country records 80% imports and when I hear that somewhere some cheese enterprise is ﬁnanced, I am ready to give consultations so as they escape the mistakes that I committed in due time. - Don’t you consider them competitors? - I do not consider them competitors. Currently Georgia’s daily cheese consumption is 40 tons, while my output is only 400 kilograms. This is very small volume. Therefore, the more competitors, the better for the market. Healthy and valuable competition always brings success. I do not mean dishonest marker players. I become more motivated when meet honest competitors on the market. When you fully control the market, I believe this is not a good situation. Competition is directly proportional to the quality. The Georgian Farmers Association was founded by several business-oriented persons. Those seeking information are able to enjoy our one-window services and receive this information from us. We are absolutely open. The association unites about 1500 members. The membership is free. Our objective is to provide valuable and comprehensive information to our members and visitors. Frequently, there are very good projects, but people lack for due information. We lack for human resources too. Farmers and entrepreneurs often cannot ﬁnd time to watch TV or spend time on social media. They lack for access to required information. Therefore, we have decided to compose a farmer’s guidebook. We visit regions and provide local residents with due information about state initiatives and innovations. Donor organizations and a commercial banks support all these activities. - Does this signify previously the situation was worse compared to the current reality?

The Georgian agriculture sector was annihilated for the past 20 years. This sector was not prioritized by the previous Authorities. When I took a loan from a commercial bank, the interest rate for farmers was 18%. Today the interest rate is 3%, sometimes even 0%.

Today, the Authorities, first of all, make focus on the agriculture sector promotion. I understand that there are a lot of problems. There are cases, when there are no startup business support projects and this is the worst thing. If you want to develop small and medium business, you should support startup project. Currently, a project for small entrepreneurs is being carried out and people are able to start business with even small capital. I frequently receive questions about how it is possible to start business by 15 000 or 5 000 GEL. I assure you this is possible! I owned only two cows when I started my business and I paid no more than 5 000 GEL for them. One can buy two cows and then develop the business. Naturally, financial resources are required. It is difficult to make progress without bank support. At the same time, today the Authorities provide subsidies for the sector. This factor may seem inappropriate for the economy, but at this stage this component is of vital importance for the Georgian agriculture sector development. I believe the government should withdraw from these processes at a certain stage, withdraw from the insurance component, subsidization of banks, processing. However, prior to withdrawal, it is upon the government to strengthen the sector. Nothing was done in the agriculture sector for 20 years and now we want to reap real results in 3 years. Similar desires are unattainable, when the whole infrastructure has been dismantled. There are no irrigation systems and so on. Besides the financial aspects, the education level also remains a problematic one. One may own financial resources, but respective results cannot be achieved without due knowledge and education. One would not be able to even start the business. I lacked for due knowledge and information when I started my business. I gained this knowledge stage by stage, because there was no other solution. The lack of leaders is an additional obstacle in current business environment. The sector lacks for inspiration. Foreign partners call similar leaders entrepreneurs. An entrepreneur cannot be an ordinary person, who opens a store to trade in some goods. Entrepreneur serves the idea. They are tuned to do something own and innovative.

When one starts business and wants to be a success, he/she must be a leader and take decisions. You should realize and contemplate the business plan and the way to develop it. In my case, I made so many mistakes that I would develop my business model in a different way in that period with the current experience and knowledge. I would change many things. I started with a milk processing enterprise. I counted on farmers to receive milk. In September farmers were run out of milk. I asked the reasons and they told me the cattle needed forage but the year was a dry season. Therefore I arranged a combined forage enterprise to supply forage to the cattle. Later we found that the cattle were not favorable

in terms of genetics. Therefore, we had to arrange a cattle-breeding farm, while all this chane should have been carried out in opposite direction. This signifies you should prepare forage, import valuable cattle and only after that arrange a processing enterprise. The incorrectly developed process has taught me a lot. Today I can say this model works very well. - What problems do you face in terms of product sales? - All 1500 farmers of the association manage to fully sell their products. Nobody will persuade me that a high-quality product with adequate price cannot be sold. Everything is sold n Georgia, but this is a chaotic process anyway. Garlic sells well in one year and the next year everybody plants garlic and naturally the garlic sales will become difficult. The sales market should be determined from the very beginning, otherwise the sales will fail. Therefore, the market demands should be first of all explored and no problems will arise in sales of in-demand products. Similar schemes do not work today, because the agriculture sector is not considered as business. We have planted what we wanted – this principle does not pay. Today special centers work. The information-consulting center serves this business that describe which product is grown by this or that farmer and so on. It is also possible to receive information on ratio of exports and imports in total production and how to occupy this or that niche. We depend on 80% imports and we talk about problems in sales.

I understand cheaper products are imported to the country and domestic production is more expensive and uncompetitive. There is a simple solution: this is cooperation. You take high expenditures because you use the same job and the same resources on a halved hectare land plot and this space is less productive. If 5 farmers unite to cultivate 5 hectares, they will receive higher harvest for the same job. The problems I had to overcome from 2007 to 2012 absent today. Our population has a wider access to information and resources. State subsidization component runs today. Could any processing enterprise receive 1.4 million GEL loan previously? No. This was unimaginable before. The major donor support marked 150 000 USD. This was the top margin ever. We started organizing our business in similar conditions. Today the situation has fundamentally changed and there are many means for the agriculture sector development. Bfm.ge

February 22, 2016 #134

OUR COOPERATION WITH IRAN SHOULD BE COMMENSURATE WITH OUR WESTERN ASPIRATIONS GIA KHUKHASHVILI Economic expert “Visa regime abolition with Iran is very perspective for Georgia, because there is the socalled closed economy in Iran. But the time has come when Iran will activate its efforts. We can talk about investments in various ﬁelds. Removal of regulations is a positive decision, but I would remain moderate optimist. We should realize that we live in the very complicated world, where excessive optimism may bring serious threats. Relations are fragile. The world changes every minute and if we follow the western vector, then we should permanently pass consultations with our partners around Iranian issues so as these two aspects do not contradict each other. Therefore, our cooperation with Iran should be commensurate with our western aspirations. Regretfully, potential risks are very serious and the international policy is so unforeseeable that every scenario may develop. I think Iran has accumulated huge investment capital and Georgia can draw money resources from any direction. I do not think Iran will show special priorities in this respect. We should activate efforts, because there is capital in Iran and we should open investment channels to that capital. In the longterm perspective we should introduce the projects for transporting Iranian energy carriers, in which Georgia may be involved as one of the elements.

IRAN WILL SHOW NO INTEREST IN PRIMITIVE BUSINESS DEMUR GIORKHELIDZE Economic Expert “This is a good decision for any country. The point is that Iran is a very strong and perspective country. Despite western pretences, the time has passed and these pretences have been removed. Iran follows its national interests. Georgia does not have complicated relations with Iran for a long period. Consequently, it is very perspective to develop economic relations with Iran. In general, besides visits of Iranian businessmen and attracting Iranian investments, it is also important that Iran in itself is a very perspective country for making investments. Iran provides very favorable environment for foreigners to do business. There is much money in Iran and Iran’s economy has been diversiﬁed in various directions. It is difﬁcult to preliminary determine which directions will be interesting for Iran. Anyway I do not think they will show interest in primitive business relations. The Iranian party is expected to fundamentally use this opportunity.

GEORGIA-IRAN

Georgia’s caucasus business week

Perspectives

After Visa Regime Removal with Iran

eorgia has abolished the visa regime with Iran. Starting February 15, citizens of Iran are able to arrive in Georgia without entrance visas. This signifies the citizens of Iran who own ordinary passports of Iran are let enter Georgia without entrance visas and stay in the country for 45 days. What economic benefits should Georgia expect from this decision and what economic activities are expected to take place in Georgia? Three years ago the Georgian government introduced visa regime with Iran and the inflows of Iranian tourists shrank 4 times. The decision negatively affected both the tourism sector and investment inflows. A major part of Iranian businessmen left the country, economic experts noted. Georgia and Iran concluded an agreement on 45-day visa-free regime introduction in November 2010. The agreement came into force in late January 2011. Besides all other aspects, the decision increased inflow of Iranian visitors to Georgia. Namely, about 21 300 citizens of Iran visited Georgia in 2010, 60 000 – in 2011. The figure reached 89 000 in 2012. In July 2012 Georgia unilaterally abolished the visafree regime with Iran. As a result the inflows of visitors from Iran dropped to 47 900 persons in 2014 as compared to 85 700 in 2013. The figure fell to 25 200 visitors in 2015. Assistant to the Iranian ambassador to Georgia noted that the Georgia-Iran trade turnover marked 200 million USD in 20122013, while today the figure is about 130 million USD. The major inflow of Iranian visitors to Georgia was recorded in 2012 –

about 90 000, while the inflows halved in 2014 and in 2015 only 25 264 visitors arrived in Georgia from Iran. The Georgia-Iran chamber of commerce and industry expects that the free visa regime will activate tourist inflows to the country, first of all. The chamber also expects inauguration of major investment projects in Georgia. After the visa regime removal, the experts forecast activation of mainly small and medium business directions. Abbas Taleb Far, the Iranian Ambassador to Georgia, noted that Iran is ready to supply enough volume of natural gas to Georgia for both domestic consumption and international transit to Europe. “At this stage we can only make forecasts what results may be reaped from this decision of the Georgian government. We remind you that this decision was taken after the world removed economic sanctions from Iran. This decision has also influenced the global market and partly Georgia too: First of all, oil prices continue declining. Furthermore, Iran is actively seeking oil importer countries. Major Italian oil company Total plans to purchase 160 000 barrels of oil a day from Iran. At the same time, Iran has taken a decision to sell oil in EUR to the new partners with the aim to reduce its dependence on USD. As a result, the Iran-Europe trade relations have entered a new phase and European companies plan to launch various business activities in Iran”, Abbas Taleb Far noted. The visa regime abolition will reap serious benefits for the country, economic experts assert.

GEORGIA-IRAN TRADEECONOMIC RELATIONS VANO MTVRALASHVILI One of the founders of Iran-Georgia chamber of commerce and industry “A new era has started in the Georgia-Iran trade-economic relations. Iran was freed from international economic and financial sanctions and the country is able to return to the global economic processes. All these factors enable Georgia and Iran to launch direct bank transactions. This step will become an additional ground to increase tourist turnover. It is of vital importance that Iranian tourists face no problems with bank transactions in Georgia. The major inflow of visitors to Georgia was recorded in 2012, when the country hosted 90 000 guests from Iran. However, visa regime restrictions decreased the figure to about 30 000 visitors. After the visa regime removal an inflow of visitors from Iran will increase and this factor will promote the tourism industry development. Moreover, direct flights should be also appointed. Regretfully, currently no direct flight is performed between Iran and Georgia. I have talked with the Iranian party around the flights and this issue may be resolved in several weeks. This signifies Georgia-Iran direct flights will be appointed in the near future. No specific airline is determined yet that will perform direct flights, but it is not ruled out that previously acting ATA Airline launch direct flights between Iran and Georgia. At the initial stage, we do not expect excessive inflow of tourists, but the dynamics will be positive. Besides the tourism sector, the Iranian party has many other fields of interest in Georgia, for example, Georgian seaports, agriculture. As to the bank sector, in the near future we do not expect any Iranian commercial bank to launch operation in Georgia.

GEORGIA PROVIDES GOOD OPPORTUNITY FOR IRAN BESO NAMCHAVADZE, An economist of the Georgian Reforms Associates: “Abolition of these regulations was a very good decision in this situation. Iran is not a poor country and we should not be afraid that Iranian citizens will arrive and remain here. Moreover, Iran remains closed for western countries. Iranian citizens face difﬁculties with traveling to those countries and Georgia provides good opportunities for them to trip to our country. We have ski and sea resorts. Iranian citizens may also arrive in Georgia to play games at casino clubs. Casinos are banned in Iran. We expect economic revival in Iran and this signiﬁes more citizens of Iran will be able to spend vacation periods in Georgia. Moreover, trade relations and investment projects will be also expanded in various sectors.

8 HEADLINES AZERBAIJAN STOPS TO BE AMONG GEORGIA’S TEN TOP EXPORT MARKETS

n 2016 the list of Georgia’s major exports markets has radically changed. According to Geostat, the national statistics service of Georgia, in January China has become Georgia’s major exports market. Namely, Georgia’s exports to China have increased 2.6 times to 14.4 million USD, while the ﬁgure previously constituted only 11.8% in total exports. For many years Azerbaijan was the major exports market for Georgia, but now the country turned out beyond the list of ten top exports markets.

IRAN PLANS TO BUILD HYDROELECTRIC POWER PLANTS IN GEORGIA

ran and Georgia discussed ways of economic cooperation and made agreements on the expansion of electricity ties, said Iranian Energy Minister Hamid Chitchian said. Chitchian said, “The agreements were made in three general areas, ﬁrst, Iran would set up hydroelectric power plants in Georgia since Iranian companies have the adequate experience in building dams and power plants and, Georgia, by the way, enjoys great capacity in the ﬁeld of electricity.”

CRUDE OIL PRICES KEEP DECREASING

ccording to the January 15 report, the price of Brent crude oil at the London Stock Exchange (LSE) (ICE Futures Europe) marked 33.99 USD per barrel, while the price of Light Sweet oil at the New York Mercantile Exchange (NYMEX) constituted 29.76 USD per barrel. The current low prices are conditioned by various factors, including an excessive supply to the global oil market is one of the main preconditions.

ARAB INVESTORS TO LAUNCH VALLEY CITY PROJECT IMPLEMENTATION IN TABAKHMELA

he Commersant news agency has spread its exclusive information that Green Valley International Real Estate Group, a Saudi Arabia one of the major real estate companies, will launch implementing Green Valley City project in Tabakhmela in two months. The company has prepared two projects. The ﬁrst one calls for developing Green Valley City and consists of villas and apartments. Another project calls for constructing two identical towers with apartments, ofﬁces and stores. At this stage, the company abstains from disseminating other additional information, the Commersant reports.

COST OF LIVING GREW IN GEORGIA

n January 2016 the cost of living grew by 1.8 GEL compared to December 2015 and constituted 164.2 GEL. According to GeoStat, the national statistics service of Georgia, the cost of living has increased by 4 GEL year on year. Namely, the сost of living was 160.2 GEL in January 2015. The indicator for an averaged consumer marked 145.5 GEL in January 2016 and the ﬁgure made 275.5 GEL for an averaged family. According to the statistics, the cost of living of one-member family marked 145.5 GEL, for sixmember families – 387 GEL.

DEMAND FOR GEORGIAN TROUT GROWS IN EUROPE AND ARAB COUNTRIES

he trout farm that is located on 4 500 square meter space in the village of Saghrasheni, on the river Algeti embankment, plans to increase its annual output to 100 tons. Individual entrepreneur Giorgi Gharibashvili told the Business Press News agency that the demand for Georgian trout grows in Europe and Arab Countries. Prior to penetrating the foreign markets, Giorgi Gharibashvili plans to expand its farm and arrange expansive refrigerator system. The entrepreneur launched the business 3 years ago and has already arranged successful production.

LOANS

caucasus business week

February 22, 2016 #134

Mortgage Loans Portfolio Grows The portfolio of foreign currency denominated loans that are guaranteed by property has increased by 1.658 billion GEL year on year. This is a catastrophically high ﬁgure for the past years. It should be also noted, because of the national currency volatility, commercial banks prefer to issue longterm loans predominately in foreign currencies and they avoid issuing GELdenominated credits.

More than 100 000 Borrowers Lost Property in Georgia

oreover, commercial banks have tightened crediting terms and increased interest rates. The mortgaged property value exceeds the loans amount several times. The GEL exchange rate depreciation grows property loss risks in the society. This consideration is clearly proved by the Debtor Registry indicators that has increased by more than 5 000 entries since the New Year.

According to the ofﬁcial report of the National Bank of Georgia (NBG), the volume of foreign currency denominated mortgage loans has increased by 31.9% (1.658 billion GEL) and totaled 6.848 billion GEL. For comparison, in 2014 the mentioned loans rose by 28.5%, in 2013 - by 10.6% in and in 2012 - by 8.7%. It should be also noted physical bodies have borrowed 3.398 billion GEL of total of 6.848 billion GEL, while the remaining 3.450 billion GEL is recorded for legal entities. Meanwhile, foreign currency denominated loans indicator constitutes 65% and this factor deepens the national currency vulnerability. As a result, more borrowers may lose their property. Extreme growth in loans portfolio would not be risky and hazardous if the economic developments were adequate to these processes and the bank credits had serve the economic advancement. Additional problems are created by the fact consumer loans and trade sector constitute a major part of the issued loans. For example, the con-

sumer loans portfolio extremely exceeds the agriculture and industrial loans portfolio. Namely, crediting of these important ﬁelds jointly constitutes 1.740 billion USD, while commercial bank has issued 2.273 billion GEL consumer loans as of December 2015. Moreover, the trade sector crediting marked 1.730 billion GEL. These indicators outline the economic development and public welfare perspectives. These indicators demonstrate that the borrowers’ condition worsens. According to the February 12 information by the National Enforcement Bureau (NBE), the Debtor Registry records 148 000 entries. The database has registered 5.5 thousand new entries since January 2016. It should be noted the Debtor Registry recorded 143 517 bodies by the end of 2015 and 133 583 bodies by the end of 2014. A major part of these persons may lose their property. Academician Avto Silagadze says that borrowers may lose thiei properties and thousands of families will be impoverished. “Regretfully, statistical information was not collected and we do not know how many citizens have lost real estate in Georgia. According to the Debtor Registry, about 100 000 persons in Georgia has lost property.

This is a huge problem and this problem is basically generated by the commercial banks” Academician Avto Silagadze noted and added that the country has not introduced a banking law. As a result, Georgian citizens lose their residential places because of indifference of commercial banks and usurers. The problem was sharpened because of high interest rates and commission fees that commercial banks have set, besides the heavy economic situation, specialists assert. The arbitrariness of private usurers and imperfect loan agreements further aggravate the situation, they assert. Citizens with ﬁnancial needs take loans in exchange of property. They take similar risks. Therefore, the government should introduce a le-

gal mechanism to protect Georgian citizens from bankruptcy, Silagadze said. “If commercial banks create 30% of the current problems, usurers aggravate the situation by 60%. This unacceptable situation was formed because of lack of competitive environment in the bank sector that would create equal conditions to loan issuing organizations”, Avto Silagadze noted. The situation is heavier in microﬁnance organizations. This sector is less regulated in Georgia, economic expert noted.

Microfinance organizations should not issue mortgage loans. This field is beyond their competence. They should support startups, as a rule, but the reality is different in this case. Microfinance organizations have issued 1.120 billion GEL consumer loans, while 490 million GEL loans have been issued to the industry and agriculture sectors. “The Authorities are to protect the public interests, including in the finance service field. The consumer rights law has been adopted, but it should be expanded. It is invaluable and imperfect and does not cover all service sectors. We will receive the army of unsheltered citizens and a major part of Georgian citizens will be impoverished if the existing practice is no changed and the legislation does not protect the bank service users”, banking specialist Lia Eliava said. Therefore, the NBG and all suitable organizations should tighten control and regulations and the Authorities should prioritize this issue. bfm.ge

February 22, 2016 #134

ECONO-MIX

caucasus business week

ANAKLIA SEAPORT POTENTIAL AND NEEDS Expectations from the Project of the Century VAKHTANG CHARAIA TSU Analysis and Prognosis Center

t should be noted currently Georgia has four operating seaports, including two sea terminals (Kulevi and Supsa) and two seaports (Poti and Batumi). In the near future (in approximately 3 years) Georgia will acquire fifth seaport – Anaklia Seaport. Let’s discuss whether Georgia genuinely needs the new seaport construction. The seaport’s highest turnover is said to be 100 million tons. What will be the benefit that the Georgian economy may receive from the Anaklia seaport project implementation? This is a multidimensional issue and there is no accurate answer to this question at this stage, because this project counts on not only Georgia’s economic potential and needs, but it is also a part of global geopolitical interests. In the course of time, these interests may change to the benefit or to the detriment of the seaport. Namely, we mean interest clashes between China and Russia, Russia and Turkey, Russia and Iran, Armenia and Azerbaijan, Europe and Russia and a great number of other allies or enemies. However, let’s see the current potential of Georgia, as a transit corridor, and whether this transit corridor is interesting from the regional point of view: - For the past 5 years (2011-2015) the total cargo volume transported by various transportation sectors systematically declines. Namely, the cargo turnover in 2011 marked 48.9 million tons, while this indicator declined by about 10% by 2015 (44.2 million tons). - Turnover at seaports decreased to 19.2million tons from 22.1 million tons as a result of considerable contraction in turnover at Batumi and Poti seaports. - It should be noted that no Georgian seaport has reached its full working capacity. Moreover, total workload of Poti and Batumi seaports make up 20 million tons, but in 2015 both seaports have handled only 12.5 million tons of cargo – 6.8 and 5.7 million tons respectively, while 5 years ago (in 2011) this indicator totaled 15.1 million tons, consequently, 7.9 and 7.1 million tons. -For the past 5 years the cargo turnover contraction was recorded at the SOCAR oil terminal in Kulevi. Namely, the cargo turnover has decreased to 2.5 million tons from 3.3 million tons (the full working capacity is 10 million tons). At the same time, 20% upturn was recorded compared to the 2014 indicators. -A 30% contraction was seen in rail shipments to 14.1 million tons from 20.1 million tons (maximum cargo turnover – 30 million tons), including 2.4 million tons of domestic, 1.1 exports, 2.7 imports and 7.9 million tons of transit cargo (slowdown is recorded in all the mentioned categories compared to the previous year). In 2015, a 10% downturn was seen in container transportation too compared to 2014. (to 44.3 thousand TEU containers from 49.5 thousand). - Civil aviation sector has also recorded insignificant cargo transportation – around 1516 thousand tons, for the past 5 years. On the other hand, certain directions have

Anaklia seaport is one of the superb projects that will be implemented in Georgia after multiyear discussions. Anaklia seaport is considered a component of another grand and important project of Silk Road and a main sea transportation hub to connect Europe with Asia. However, part of experts asserts that this project is a populist one and all calculations are unrealistic. recorded an evident upturn in cargo turnover, namely: - In 2015, as compared to 2011, the quantity of processed containers in Poti and Batumi seaports increased by 27% to 380 000 containers from 300 000 ones, including 325 000 containers in Poti and 55 000 containers in Batumi seaport. It should be also noted that in 2015, as compared to 2014, container turnover declined by 15%. - Truck transportation has increased by about 6% to 30 million tons for the past 5 years; - The Supsa terminal turnover has increased by 10% to 4.2 million tons from 3.8 million tons (maximum workload 5-6 million tons). In the near future, the Baku-Tbilisi-Karsi railway project will be put into exploitation and Georgia will acquire additional transportation capacity. This route will transport consignments from Asia to Europe through Turkish seaports. Consequently, this factor may negatively affect the operation of Geor-

on Turkey, not on Georgia, as Turkey bans this category of ships to cross the Bosporus Strait because of various reasons. Even if Turkey admits this category of ships to the Black Sea, it is expected to set high tariffs to the beneﬁt of Turkish seaports. On the other hand, the Anaklia Seaport may attract consignments from the new direction, namely from Iran that was freed from economic sanctions recently by the international community. The matter is of transporting consignments from China to Iranian seaport of Bandar-Abas, from there to Georgian seaports via the Iran-Armenian new highway and then to Europe (basically eastern Europe). Despite its complicated structure, this direction genuinely comprises perspectives and interest from our southern neighbors from the standpoint of regional integration – for Armenia to enhance its role as a transit country and for Iran – to increase its inﬂuence in Armenia and Georgia. However, this route comprises other perspectives too for connecting Iran with the Russian Federation. However, all pros and cons should

HEADLINES

THIRD MEETING OF BUSINESS CAFÉ

onsultancy Company Insource continues Business Café meetings with exclusive sponsorship of PASHA Bank. The third meeting of the project was held in Rooms Hotel, Tbilisi, On February 17th. Representatives of top management of the leading Georgian businesses attended the session on “Management 3.0 or MBA Books in Mirror” led by Andro Dgebuadze. The ﬁrst meeting of Business Café was held in October, 2015 and its subject was “The management of human resources” moderated by David Gogichaishvili. The second meeting was hosted by Alexander Jejelava who spoke about the organizational corporate culture. There is a rising interest towards Business Café gatherings as they give a good opportunity to top-management representatives from different companies to discuss speciﬁc work-related topics and share experience with each other in informal atmosphere. Insource plans to hold 6 Business Café meetings with exclusive support of PASHA Bank in 2016.

IRISH AIRLINE „RYANAIR“ ENTERS GEORGIA

he Irish low cost airline “Ryanair” expressed an interest towards Georgian airmarket, – possibilities of initiating routes to Kutaisi were discussed during the working meeting conducted by the Prime Minister of Georgia with the Chief Commercial Ofﬁcer of “Ryanair” David O’Brien. During the meeting it was noted that the growth of interest of low cost airlines to Georgia is caused by the business environment in the country, growth of the tourist ﬂow during the recent years and the possibilities provided to the Georgian citizens by the prospects of visa liberalization with the EU.

NEW FLIGHTS FROM KUTAISI, GEORGIA EUROPEAN CITIES FOR €39.99

izz Air plans to unveil its first base in the Region. The airline will launch seven new flights to the European directions: Berlin, Larnaka, Sofia, Milan and Dortmund (two flights a week). The airline will perform three flights per week to Saloniki. The Wizz Air airline carries out flights to eight European countries. The ticket prices start from 24.99 EUR. The airline’s communications director Dag Olivier noted that the airline makes contribution to Georgian economy development, culture and tourism.

HENKEL IN GARDABANI

gian seaports. However, this railroad will make its contribution to the rail potential development in Georgia. According to the plan, the Anaklia seaport construction works will be carried out in seven stages, It’s highest capacity will be 100 million tons and it will transport container, liquid, solid and dry consignments. However, it is unclear from where due volumes of consignments will be attracted, while the existing seaports operate at a halved capacity. At the same time, the Poti Seaport started making additional investments in implementing the Poti Megaport project that calls for doubling the existing power and deepening the seaport harbor. Unlike Anaklia Seaport, the Poti Seaport will not be able to harbor the so-called Mother Vessels (maximum tonnage – 10 000 TEU containers) and will receive only big freighters (800-900 TEU containers). Anaklia seaport also comprises serious challenges. Despite deepwater berths, the entrance of Mother Vessels into the Anaklia Seaport depends

be weighted how positive or negative similar perspectives may be for Georgia. Meanwhile, the Georgia-China economic cooperation gears up development paces and the free trade opportunities will deepen bilateral potential and create new opportunities for strategic cooperation and for transporting Chinese consignments from Asia to Europe. If the corresponding infrastructure is arranged, million tons of consignments will be transported through this route. Finally, we should also take into account that the workload of Georgian Railway and highways are very limited and they cannot satisfy the projected indicators, while there no plans for developing new road infrastructure. Consequently, it is logical and clear that it is very difﬁcult to draw additional 100 million tons of cargo, while the operating seaports work with only halved capacity. However, continuous, tireless efforts may enable us to draw several tens of millions of tons of cargo to Anaklia Seaport and this is a realistic prognosis. And this will create thousands of new job places, increase economic potential and will enhance Georgia’s international interests.

he German company “Henkel” plans to open its enterprise in Georgia during the year of 2016. As the representative of the company explains, the construction of the enterprise has started since November 2015. The opening ceremony is planned in this year, however, the date is not speciﬁed yet. The company informs that the main purpose of the enterprise is the production of adhesive constructing materials, will be sold as in Georgia, in Armenia and in Azerbaijan as well.

THREE IRANIAN AIRLINES TO ENTER GEORGIAN MARKET

AV Georgia, operator company of both Tbilisi and Batumi International Airports, is holding negotiations with three of the largest Iranian Airline companies Mahan Air, ATA Airlines and Qeshm Airlines. This information is provided by TAV Georgia itself. According to the company, ATA Airlines has a plan to come back to Georgian market at the end of February 2016, however, Mahan Air and Qeshm Airlines are expected to perform regular ﬂights starting in March of this year.

OTHER SIDE OF BUSINESS

caucasus business week

February 22, 2016 #134

INCREASED EXCISE RATE – REDUCED INDUSTRY What is the fate of the increased beer excise rate and will the government revise it again, based on the current indicators?

T ILIA TSULAIA FOOTWEAR IMPORTSSALES WAS MY FIRST BUSINESS ACTIVITY The Director General for Archi Group Investment Company

I AM A LAWYER by education. I EASILY STARTED MY FIRST JOB. Before the university graduation, I took office at a law firm as a private law defense lawyer. I DO NOT REMEMBER MY FIRST SALARY very well, because I was doing business in the period of my studies. Consequently, I received my first incomes from the private business. MY FIRST BUSINESS WAS related to not the development sector or investments, but an entirely other sector. In my university years, I used to import and sell footwear in Georgia.

justify the means. I have never achieved the goal through incorrect and dishonest mechanisms and will never do. I HAVE THOUGHTABOUT THE BUSINESS SECTOR, where I would never take efforts. I would never do immoral business, for example, I would never have a brothel. THERE ARE A LOT OF FUNDAMENTAL PRINCIPLES IN THIS LIFE, but I would name several ones: ﬁrst of all, my familiar persons should be well and second, I should be able to reach the determined goals.

I GO TO THE OFFICE AT 10-11 O’CLOCK, but I do not have a speciﬁc time anyway. Everything depends on speciﬁc situations.

I DO NOT HAVE SPECIAL FEAR of anything in this life. “I was a tank crewman before the war” (a phrase from the famous Georgian feature ﬁlm “The Blue Mountains of Tianshan”)

HAVING GOT TO THE OFFICE, I draft a plan, ﬁrst of all, to be determined what to do during the day.

I ALWAYS DO what I want and achieve the goals I set. There is nothing easy to do in this life, but efforts pay.

I JOINED THE DEVELOPMENT BUSINESS in 2006, when we used to provide mainly advisory services. We used to draw investments too. In 2006 investments were mainly made in the real estate business and our partners were buying land plots. In the course of time our partners were found to have bought wide spaces of land plots. This factor led us to entering the development business.

I LOVE TRAVELING. I would live in Europe’s developed countries with much pleasure, in the USA, but only temporarily.

NATURALLY, I HAVE AN APARTMENT in the building constructed by my company. A PERSON SHOULD NOT BE READY to do anything for career promotion. You should be just and honest in all your steps. We should follow correct roads. The objectives doe not always

I DO NOT HAVE ANY PROBLEMS in communicating with reporters. I communicate with them with much pleasure, but I do not know whether this attitude could be called the love. I WOULD NOT NAME ANY SPECIFIC DISHES to be my favorite ones. There are a lot dishes that I like. AS TO THE SPORT, I like basketball, but prefer football for watching. I AM FC BAYERN MUNCHEN FAN.

he government must stimulate the industry and revise the incorrect decisions”. The enterprises assert that the government has taken an incorrect decision and the industry bears losses and smokers’ interests are also damaged. The government should promote the sector, not punish, they assert. The increased beer excise rate has inspired multiple protests among enterprisers. Don’t Raise Beer Prices – the society objected to the 50% upturn in the rate under this motto. However, on March 1, 2015 the beer excise rate increased anyway. And today the enterprises complain about the decreased sales. Nikoloz Khundzakishvili, the Natakhtari company director for corporate affairs, has named a speciﬁc ﬁgure to the IPress. Namely, the beer market has seen a 15% plunge in the industry, he said.

Initially, the Ministry of Finance of Georgia referred to the obligations before the EU. However, today the Government plans to revise the mentioned regulations. Business Ombudsman Giorgi Gakharia told the IPress that increased beer excise rate may be revised. The current fiscal effect and sales indicators suggest that the beer excise rate may be revised again, he said. “The beer excise rate issue remains open. After the season we will see sales and budget revenues. If we detect that the 50% growth in the excise rate has brought negative effects and declination in sales and budget revenues, I assure you that we will back the companies that demand for revising the excise rate again. We need specific figure. We should determine the effect on this business and budget. We have already received preliminarily indicators and I think we will have to take certain steps”, Giorgi Gakharia noted. NIKOLOZ KHUNDZAKISHVILI, The Natakhtari director for corporaet affairs: « On March 1, 2015 the beer excise rate increased by 50%. I was saying that this decision would bring grave outcomes for the business and regretfully, we are seeing these negative effects. From March 1 to January 1, in 2015 the business declined by 17% compared to the same period of 2014, while total sales in 2015 declined by 15% compared to 2014. Besides excise rate, the GEL exchange rate has also affected our business, as well as restricted solvency and the complicated economic situation in general. “The government should perform its role in this situation and stimulate the industry and revise the incorrect decision. I mean the fact that the budget revenues from the business were twice higher compared to Germany before the excise rate growth, while the revenues were even three times higher at the moment of increasing the rate”. Moreover, Khundzakishvili asks the government to revise the decision and harmonize the excise structure with the EU association agreement: “What is the excise harmonization? – according to the EU association agreement we must move to the European model starting September 1, 2017. This signifies the excise tax must be determined due to the alcohol level in beer and not due to the volume of liters.

This is one of the unique cases when the industry asks the government to enact the association agreement earlier than determined, for example on March 1, 2016, i.e. 18 months earlier. What results we will have – in the event, along with the harmonization, the excise rate is also revised, we offer to set 0.10 GEL on every degree. This signiﬁes the excise on standard beer will become 0.50 GEL, instead of 0.60 GEL. The excise rate will increase on beer with higher alcoholic content. This signiﬁes the excise tax will change in various directions. However, the standard beer occupies a major part on the market compared to nonstandard ones, or high-alcoholic beer, and this factor enables the beer industry to enjoy preferences. The preference is that we will return the market, that is, the 15% ratio we have lost after the excise growth. This is our demand to develop the industry and I reiterate this is the role of the Authorities to promote the sector in unfavorable economic conditions and not to set punitive measures.

As to the future steps, we have already offered the Prime Minister to revise the excise rate and put forward a speciﬁc proposal at the meeting with the Economy Minister: if the state budget revenues fall after the excise rate reduction in 2016 compared to the 2015 state budget revenues, we will assume the obligation of ﬁnancing any business or social projects due to the difference amount. We hope the excise tax will be revised and consequently, the business support strategy announced by the Prime Minister will be implemented in practical life”.

February 22, 2016 #134

HEALTHCARE caucasus business week

PHARMACEUTICAL INDUSTRY REPRESENTATIVES WELCOME HUMANITY-GEORGIA ENTERING THE MARKET

umanity-Georgia pharmaceutical company has completed signing agreements on cooperation with the leading pharmaceutical networks in Georgia. In several days the Georgian consumers will be able to buy cordial medicines at 30% lower prices at all major pharmacy networks in Georgia. In the near future, pharmacy networks of Aversi, Impex-Pharma, PSP, People’s Pharmacy, Pharmadepot, Pharm House and GPC will receive other groups of medications too. Georgia based pharmaceutical companies have positively appraised an appearance of Humanity Georgia pharmaceutical company. This is an additional sample that the pharmaceutical market is competitive, while the competition originates progress and combination of all these factors make beneﬁt to our consumers.

“Our main direction is related to the quality of medications. All of these medications are made at GMP-quality plants. Moreover, we additionally carry out serial examination at the laboratories certified by the World Health Organization (WHO). At the first stage, we import the most in-demand products, namely a set of cordial medicines. In the course of time we will expand our portfolio and cover a major part of therapy groups for treatment of patients”, Humanity Georgia director general Andrey Kuzma noted. People’s Pharmacy director general Archil Morchiladze said, the company, as an ordinary distributor of medications, welcomes the new company plans to enter the Georgian pharmaceutical market. He also positively appraised the Humanity Georgia strategy for prioritizing social goals, first, and following commercial goals on the next stage. “Based on our own principles, People’s Pharmacy operates all over Georgia, including in highland regions, where no other networks have penetrated. Consequently, these medications that are imported by Humanity Georgia may be supplied to any region of Georgia”, Archil Morchiladze said.

I believe the entrance of a new company on the market, is a good start. First of all, this is an European-level medications with quality control and we welcome this fact in itself. All these efforts will make beneﬁt to the Georgian consumer. We are ready for cooperation and in the future we will do more.

“Somebody might think the new company will bring problems to the existing pharmaceutical companies, but this is an erroneous position. Aversi works in the pharmaceutical business in two directions: first, the network of pharmacies and the pharmaceutical production. In the context of network of pharmacies, Humanity Georgia is the same partner and supplier as all existing partners such as GlaxoSmithKline, Pfizer, Sanofi, Aventis and so on. Our objective is to provide all Aversi pharmacies with the medications that are registered by the Georgian Health Ministry. We want the Aversi network to satisfy the needs and requirements of any consumer and to enable them to buy any medications available in Georgia. As to the production, any pharmaceutical manufacturer is a competitor for Aversi and it is absolutely unimaginable that the market exist without competition and only one production exist, or maybe two or three. Georgia follows the strategy when any business company, Georgian and foreign ones are able to operate on the market without restrictions so as to make benefit to the consumer in terms of quality and prices. Therefore, we believe that competition drives progress. If we did not have competitors for the past 20-22 years, Aversi could not have made progress and attain the current success and we could not have touched the current heights. Therefore, I welcome the new pharmaceutical company entering the market, because this is the opportunity for the Georgian population to have wider option and this fact enables doctors to valuably select medications. At the next stages, everything depends on the operation of Humanity Georgia staff and the attitude of doctors and our population to the specific pharmaceutical company. We wish you all the best, because your success is our success, and our success is your success”, Aversi director general Paata Kurtanidze noted. GPC director general David Kiladze stressed the peculiarity of the Georgian pharmaceutical market: “The Georgian market records sharp competition that has created the environment when the pharmaceutical market in Georgia is the most developed as compared to other Post-Soviet countries. The entrance of a new company proves this consideration,”Kiladze said.

This signiﬁes the market is open to all innovations. We welcome the new company and we consider it a Generics supplier company. This issue is not a new one for us. GPC has been operating in this direction for several years and we welcome the assortment of generics grows. We appraise this company as the new partner that will supply high-quality medications to us at affordable tariffs.

PSP director general Gocha Gogilashvili positively appraises the entrance of the new company and talks about the importance of Humanity Georgia portfolio:

“We consider Humanity Georgia to be one of the suppliers, but unlike all other suppliers, the company is bringing much portfolio and a long list of medications. We cooperate with more than 100 manufactures. Therefore, it is our obligation to make any in-demand medication, that is registered at the Health Ministry, attainable to the Georgian population and our society. Therefore, we are partners”. The director of the Pharmadepot retail network is sure that Humanity Georgia will be a success in terms of sales of medications. Nutsa Monavardisashvili said Humanity Georgia has brought much portfolio and this factor will expand a public access to medications. Pharma House is a retail network. Consequently, the cooperation with Humanity Georgia is of crucial importance and the market will receive much beneﬁts, the company director general David Kobulia said. The new company will make the competitive environment healthier, Impex Pharma director David Kokhreidze said. The Humanity Georgia’s entrance will promote the sector development, Kokhreidze said. The above-mentioned statements prove Georgia-based pharmaceutical companies welcome the entrance of Humanity Georgia into the Georgian market. The competition drives progress and the new company will develop the market and foster lowering prices on medications, they assert. If Humanity Georgia offers competitive price

policy in relation to the existing medications in the retail network, other suppliers will also have to lower prices. As to the quality of medications imported by Humanity Georgia, the heads of the pharmaceutical companies noted that they trust the Health Ministry that is responsible for the quality of Georgia-registered medications. The partnership Fund’s executive director David Saganelidze: “The project for sales of affordable medications is being carried out jointly by Humanity Georgia and the Partnership Fund as part of the Georgian Government’s resolution. At the next stage, imports of medications will be replaced by the domestic production of medications. The objective of the Partnership Fund’s involvement in the project is to ensure a supply of high-quality medications to the Georgia market at 30% lower tariffs prior to inauguration of the domestic pharmaceutical production. This move will considerably save the medication costs as part of the universal healthcare program.

We have achieved our goal. Medication prices are decreasing. This was our pre-election promise. As to the quality of medications imported by Humanity Georgia, the Georgian Health Ministry controls this issue and no medication without certiﬁcates and due documents will be supplied to the retail networks in Georgia. I am proud Humanity Georgia is related to Alexander Mashkevich. He is the worldwide known businessman who is interested in the Georgian pharmaceutical market and plans to make huge investments in this sector, because he is sure the business sector is protected in our country and there is attractive taxation regime and investment environment”, David Saganelidze told the joint news-conference.

HEALTH MINISTER: “NEW HEPATITIS C DRUG PROVIDES 100% CURE” successful and as our partners were happy with the results, the second stage will be implemented immediately. Initially patients who suffer heavy forms of the illness will be a priority for us,” Sergeenko said.

he treatment of Hepatitis C will continue in Georgia until the virus has been eliminated from the country and all sufferers are cured,” Georgia’s healthcare Minister David Sergeenko says. The Minister made the statement today with the United States (US) Ambassador to Georgia Ian Kelly at the Healthcare Teaching Cen-

tre where he informed local media about Stage I of the Hepatitis C elimination program which launched in April 2015. Sergeenko announced this year a new-generation, Hepatitis C medicine was introduced in Georgia which had a “100 percent cure rate”.

The ﬁrst stage Hepatitis C elimination program was

The new medicine named Harvoni is produced by American pharmaceutical ﬁrm Gilead. The company gave the medicine to Georgia free of charge following a memorandum signed between the company and Georgia’s Health Ministry. Typically Harvoni cost €110,000 per person for one course of treatment. During the ﬁrst stage of the Hepatitis C elimination program Georgia used Gilead’s medicine Sofosbuvir, also free of charge. Harvoni is a new Hepatitis C medication combining Sofosbuvir and Ledipasvir. Last year up to 7,000 people were involved

Georgia’s Hepatitis C treatment program; 3,000 of them have already completed the treatment, 90 percent of the 3,000 saw complete recovery. With the new medicine the number of patients involved in the program will reach 20,000, Minister Sergeenko said. Also today Kelly and Sergeenko watched a ﬁlm raising awareness Hepatitis C and were also screened for the virus by medical staff. The Hepatitis C virus infects an estimated 130–150 million people globally and results in an estimated 700,000 deaths annually. Georgia had one of the highest estimated virus prevalence rates in the world, affecting 6.7 percent of the population. However through the public-private partnership between the US and Georgian governments, along with Gilead, Georgia is on its way to make history and completely eliminate Hepatitis C from the country.

PUBLICITY caucasus business week

February 22, 2016 #134

REAL ESTATE caucasus business week

PUBLICITY caucasus business week

February 22, 2016 #134

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 Ave., Tbilisi Tel: 225-20-72/73/74/76 embassy.tbilisi@mfa.gov.tr Consulate General in Batumi 9 Ninoshvili Street, Batumi Tel: 422 25 58 00 consulate.batumi@mfa.gov.tr 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.esRomania Embassy

TBILISI GUIDE

caucasus business week

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

PUBLICITY caucasus business week

February 22, 2016 #134