Caucasus Business Week #153 by Caucasian Business Week

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July 11, 2016 #153

July 11, 2016, Issue 153 - www.cbw.ge

Itsik Moshe: Government should Guarantee Safety of Each Tourist Visiting Georgia Pg. 4

Pg. 10

Business Forum “Women for Tomorrow 2016” to Demonstrate the Role of Women in Economic Development

Will Georgia Replace Turkish Resorts?

Business AYFB: Competition Agency should Explore SOCAR’s Market Strategy

Pg. 4

French-Chinese Deal in Georgian Bank Sector Chinese Hualing Group has decided to unite Bank Republic owned by French Societe Generale and Basisbank. A new commercial bank will be set up, where French party will maintain only 8% stake. Hualing Group, Societe Generale and EBRD have concluded a preliminary agreement on the controlling stake of Societe Generale in Bank Republic in the last week. Hualing Group plans to form a universal bank by uniting Bank Republic and Basisbank. After amalgamation Hualing Group will possess the controlling stake in the new bank and a majority votes in the supervisory board. Societe Generale will hold a 8% stake in the new bank and become a member of the supervisory board. The European Bank for Reconstruction and Development (EBRD) will maintain about 3.9% stake and remain a member of the supervisory board. Pg. 7

Development Companies Demand for Tightening Quality Control over Construction Materials

Pg. 5

Pg. 6

Even development companies openly demand for tightening the quality control over construction materials. The market is abandoned to the whims of fate and even development companies complain about aggravated conditions. The problem is that the customers show growing distrust to new development projects in the course of time. More and more clients think that new buildings are not durable and steady. It is necessary to carry out monitoring and control on how and what materials are used in construction projects, Lisi Development director general Nodar Adeishvili said. The companies should also produce such products that will not harm the city appearance, Adeishvili added. “The city hall may prioritize this direction to resolve the existing problem. Pg. 9

2 GOVERNMENT

NEWSROOM

July 11, 2016 #153

Drafting of Land Use Plan to Begin As per the Government’s decision, renewal of the general plan on land use of Bakuriani will be conducted while taking into consideration the settlement having potential to become a resort – Didi Mitarbi.

Ministry of Finance Announces About the Surplus Performance of the Budget According to the department, tax revenues of consolidated budget has been performed with an excess of 77,7 million towards the plan in 6 months and the rate has amounted to 4,158 billion GEL.

ECONOMY

The World Bank Moved Georgia in the Category of Upper-Middle Income Countries The MP has noted about it at the government session and declared, that the country did not have such success through the last 15 years.

Annual Inﬂation Rate Posted 1.1% Decrease in June In June 2016 the monthly inflation rate amounted to -0.9 %. Compared to the same month of the previous year the Consumer Price Index change posted a 1.1 % increase. Compared to 2010 average the index rose 15.5 %.

BANKING

Liberty Bank to pay Utility Payments to Orphanages As of the memorandum, Liberty Bank will pay utility payments to over 50 small orphanages from July 1 to December 31. It should be noted, that 325 children leave in small family-type orphanages.

Ratio of Bad Loans in Bank Sector Grows The ratio of bad loans has increased in the bank sector, but the indicator still remains at low level and makes up 3.8% as of June 1. The volume of bad loans accounts for 579 million GEL. Loans are regulated by reserves of 30%, 40% and 100%.

BUSINESS

Georgian Blueberry Goes to United Arab Emirates Vanrik Agro Group, which has carried out exports of Georgian blueberry, expects new orders from Arab customers. The company has been founded by the Partnership Fund of Georgia.

SOCAR Builds New Tank Farm at Oil Terminal in Georgia The project envisages construction of six tanks with a total capacity of 60,000 cubic meters and a two-line railway overpass for simultaneous unloading and loading of 26 tankers.

COMPANY

Georgian Mineral Water Goes On Sale In Saudi Arabia It should be noted this is the first case, when the Georgian drinking water enters the 32 million market. At this stage, Amlak Trading Est company has exported 240 000 bottles.

Georgia, U.S. Sign Memorandum to Expand Defense Cooperation

isiting Tbilisi on July 6, the U.S. Secretary of State, John Kerry, signed a memorandum on “deepening the defense and security partnership” with Georgia, pledging U.S. support in areas ranging from defense acquisitions to enhanced information sharing. Kerry said after talks with Georgian PM Giorgi Kvirikashvili that the bilateral defense cooperation memorandum defines “our security partnership and steps we will take together to further Georgia’s resilience and its self-defense capabilities.” “The memorandum… will support the acquisition of defense and related articles to improve the interoperability, sustainability and deployability of Georgia’s forces… to be able to work and cooperate with the other forces of NATO,” the Secretary of State said. “It will help in education and training, exchange of operational and tactical personnel in order to be able to improve operations between us,” he said. “It will implement the best practices in the defense governance… It will include the carrying out of joint and combined exercises in order to share expertise,” Kerry said. “It will include cooperation on enhanced border, maritime and airspace security and there will be increased information sharing,” Kerry said. According to the Department of State the U.S. and Georgia intend to strengthen information sharing by number of measures, including maintaining arrangements that facilitate the exchange of information about “hostile actions and specific threats to the United States’ or Georgia’s security and regional stability”; cooperating on analysis concerning such threats; conducting joint threat assessments that include U.S. military facilities, assets, and personnel present on the territory of Georgia; improving technological capabilities to ensure exchanged information remains secure and safeguarded, and enhancing strategic communication to “better counter threats aﬀecting stability in the region.” PM Kvirikashvili, who signed the memorandum along with Secretary Kerry, said that the memorandum includes all those areas, which are “critically important for strengthening and increasing our self-defense capabilities.” “This visit [by the Secretary of State] has brought concrete results for deepening bilateral cooperation,” PM Kvirikashvili said. “The memorandum envisages deepening of security and defence partnership and cooperation, it is a very important document, which creates a framework for new cooperation, which… opens up new opportunities for Georgia to purchase defensive weapons; together with our American partners, it will help

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us to focus on self-defense capabilities. It envisages more joint trainings, which are very important for strengthening Georgia’s defense capabilities. So, this document is yet another confirmation of very important strategic partnership between Georgia and the United States,” the Georgian PM added. Georgia’s Defense Minister, Tina Khidasheli, said that the memorandum includes “everything that our country needs for deterrence” in the face of existing threats. She said that Georgian and U.S. officials will meet in Washington later this month to elaborate an action plan through which it will be possible to “launch implementation of this memorandum” before the end of 2016. Senior Pentagon and State Department oﬃcials told the U.S. Senate foreign aﬀairs committee hearing in early June that in its security assistance programs with Georgia the U.S. will be making more focus in helping the country to increase its self-defense capabilities. Over the past decade the U.S. assistance programs oriented mostly towards preparing Georgian troops for overseas deployments, among them in Afghanistan, with trainings focusing more on counterinsurgency. NATO ASPIRATIONS Kerry, who is visiting Tbilisi before heading to Ukraine on Thursday morning just before the NATO summit in Warsaw on July 8-9, said that although there has been a slowdown in process of Georgia’s NATO membership due to international challenges, it should not be viewed as a moment of despair. Kerry said that the U.S. remains firmly committed to NATO’s open door policy and reiterated that the U.S. stands by the 2008 NATO Bucharest summit declaration that Georgia will become a NATO member and “we will stand by this statement in Warsaw.” He said that “there have been reasons for slowdown in process” as there are lot of international challenges, among them related to Ukraine, Syria. “But Georgia is already an important NATO partner and the people of Georgia should really look very positively on what Georgia has accomplished,” Kerry said. “So I would not view this as a moment of despair or a moment of setback, I would view it as a continuing process by which the confidence is built and timing becomes appropriate for the final steps to be taken.” Kerry said that Russia’s “occupation and militarization of parts of Georgia’s territory are unacceptable.” “We continue to call on Russia to fulfill its obligations under 2008 ceasefire agreement, including withdrawal of its forces to pre-conflict positions,” he said.

ELECTIONS ‘LITMUS TEST FOR GEORGIA’ In Tbilisi Kerry co-chaired U.S.Georgia Strategic Partnership Commission meeting to discuss priority areas – democracy, defense and security, economic, trade and energy issues, and people-to-people and cultural exchanges – identified in the bilateral strategic partnership charter, signed in 2009. He said that parliamentary elections on October 8 will be “another litmus test for Georgia” and stressed on importance of electoral environment free of intimidation. “Georgia has been a model of peaceful democratic change and of improving of electoral conditions for others in the region,” Kerry said. “Free and fair elections will be an important step towards greater security, towards greater stability and towards prosperity for all of the people of this country. And in all of our conversations we talked about the need for an electoral environment that is free of intimidation and for continued progress to protect media freedom,” he said. At a meeting with President Giorgi Margvelashvili, Secretary Kerry upcoming elections “will be a very important signal to not just NATO, but to the world about Georgia’s commitment to democracy and the direction you’ll be moving in.” The Secretary of State said the upcoming elections would be one of the issues he plans to discuss when he meets opposition leaders on Thursday morning. Kerry will meet leaders of UNM and Free Democrats opposition parties. Before departure to Ukraine, the Secretary of State will also meet Parliament Speaker Davit Usupashvili on Thursday morning. During the visit the Secretary of State also announced the launch USAIDadministered USD 15 million, 5-year Economic Resiliency Program to develop the skills of Georgian business people and improve income generation in rural households. The primary beneficiaries of the program will be ethnic and religious minorities as well as communities in the vicinity of the administrative boundary lines with breakaway Abkhazia and South Ossetia. A memorandum of understanding was also signed on July 6 according to which the U.S. and Georgia will co-fund scholarships to double the number of Georgian students in the Fulbright exchange program. John Kerry previously visited Tbilisi in December, 2008, when he was a Senator. The previous time when U.S. Secretary of State visited Georgia was in June 2012, when the post was held by Hillary Clinton.

Editor: Nutsa Galumashvili. Mobile phone: 595 380382 Reporters: Nino Kuparashvili, 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

July 11, 2016 #153

PUBLICITY

Live Chain for Supporting Patients with Rheumatoid Arthritis Campaign participants applied to the Ministry of Health and the Tbilisi City Council

embers of the Rheumatoid Arthritis Union organized a campaign ‘Everything is in Our Hands”. The patients aim to reach every member of the community with an important message. They are requesting funding for treatment of rheumatoid arthritis for adult citizens. With signatures collected through an online petition, the campaign participants applied to the Ministry of Health and the Tbilisi City Council. The main objective of the campaign is increasing public awareness about Rheumatoid Arthritis, as a severe disease, in order to diagnose it promptly and ensure access to adequate treatment. Any volunteer could take part in the campaign and support patients by joining the live chain: “Healthy Joints – this can be achieved.” “RA patients can hardly move due to unbearable pain, their joints are deformed and lose their function and finally they restrict movement. Our goal is to increase public awareness about this disease, since support of each and every one of you increases the chance of having access to adequate treatment,” – said Marina Sagharadze one of the founders of the Union of Patients with Rheumatoid Arthritis.

“Real desires and physical abilities never coincide with each other. It is very stressful. I have the IV stage of this disease. Along with suﬀering from extreme pain my limbs were getting deformed for years. Unless the biological medicines are used promptly, the outcome will be threatening. These are the medicines that bring miraculous changes, they in fact stop the illness”, - noted Rusudan Ebanoidze, one of the members of the Union of Patients with Rheumatoid Arthritis. And finally, the number of online petitioners was announced. Published results were sent to the Ministry of Health and Tbilisi City Council with the request to increase availability of biological medicines for RA patients in Georgia. As representatives of the Ministry noted, they were familiar with the problem and expressed the hope that new services would be added to the Universal Health Insurance. However, in the meantime, the patients will be able to apply to the Ministry with the request that will be reviewed by the respective Commission and respective decision will be made on expediency of funding allocation. The outreach campaign was provided by Company Gepra.

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ECONO-MIX July 11, 2016 #153

Galt & Taggart Announced About the Successful Placement of ADB Bonds

ARCHIL GACHECHILADZE

Chairman of Supervisory Board

Itsik Moshe: Government should Guarantee Safety of Each Tourist Visiting Georgia

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Galt & Taggart announced about the successful placement of Asian Development Bank (ADB) bonds. The onshore bond issue pays a floating rate of interest indexed to the National Bank of Georgia 3 month CD reference rate, plus 20 basis points. If we calculate it at the example of the last auction, it will be 6,5%+20 basis point = 6,7%. The rate will be counted by the same formula on the base of a benefit fixed at the next auction. The issue is solely managed and underwritten by Galt & Taggart. “The goal of G&T is to be permanent supplier of such service not merely for international financial institutions, but Georgian companies as well, which searches additional source of capital attraction”, – Archil Gachechiladze, chairman of Supervisory Board has congratulated the success to the team of Galt & Taggart.

PASHA Bank joined USA Independence Day Celebration PASHA Bank, Baku-based financial institution providing corporate and investment banking services in Azerbaijan, Georgia and Turkey, participated in the celebration of the independence day of the United States of America together with American Chamber of Commerce in Georgia. For the second year in a row, the Bank sponsored the traditional picnic that was held at the Embassy of the USA in Georgia. This special event hosted American, Georgian and international families to celebrate the 240th anniversary of the signing of the U.S. Declaration of Independence. U.S. Ambassador to Georgia Ian Kelly and AmCham Georgia Vice - President Michael Cowgill welcomed nearly 1,200 guests. PASHA Bank is an active member of AmCham. The Chamber was founded in 1998 and it is the largest business association in Georgia representing about 200 Georgian and American companies. The primary mission of AmCham is to strengthen U.S. - Georgia business and economic relations and to give valuable input towards the improvement of the business climate in Georgia. PASHA Bank is also a member of EU-Georgia Business Council (EUGBC), International Chamber of Commerce (ICC) as well as Georgian Chamber of Commerce and Industry (GCCI). “Considering the fact that PASHA Bank provides solely corporate and investment banking services, we always try to actively partner with the business associations and chambers that operate in Georgia. AmCham is one of our very distinguished partners and we are glad to have the opportunity to contribute to the celebration of the independence day of the USA. This traditional picnic is very popular in Azerbaijan as well and PASHA Bank has been a proud sponsor of this event on several occasions in Baku,” commented Mr. Shahin Mammadov, CEO and Chairman of the Board of Directors at PASHA Bank.

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It is a very bad tendency when the facts of cheating tourists have multiplied. It is the state’s responsibility to eradicate the problems. Otherwise, the country may maintain only that category of visitors, who are interested only in adventure tourism.

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roblems with services and attitude to visitors may pose threats to the growing tourist inflow to Georgia. It is not disputable that growth in tourist inflows is directly related to the environment that the host country oﬀers to visitors, but the experience of the developed tourism countries suggests that financial safety and other safeguarding measures become necessary almost every time, besides physical safeguarding measures. In this respect, Georgia is among the countries that seemingly need to enforce visitors’ protection mechanisms. For example, Israel is one of the countries from where the tourist inflows have considerably increased, but in previous years, Israeli tourists were visiting Georgia for only sightseeing, but now you will often hear from them how they were cheated in terms of currency exchange rate in Tbilisi or how much they had to pay to taxi driver. The mentioned facts and similar image violating activities may be heard from many visitors from other countries. This problem is not a new one. However, as a rule, the countries that are interested in tourism sector development always make focus on overcoming the mentioned problems. Experience of several countries is very valuable in this respect, including the Israeli experience. The Israel-Georgia Chamber of Business started large-scale campaign last year to introduce the Israeli experience to Georgia, including, popularization of Georgia’s tourism potential and environment, on the one hand, and care for Israeli tourists at the local level. In the last year and this year, the Israel-Georgia Chamber of Business and the Israeli House published two books in Hebrew language that de-

scribes Georgia as a tourism country. Lectures are held on this topic at various pubic centers in Israel. Meetings are held with Israeli tourists, as well as in Tbilisi at Israeli House. Itsik Moshe, President of the Israel-Georgia Chamber of Business, says that the business chamber receives various information from many visitors about cheating and inappropriate attitudes. One of the tourists supplied a photo to the business chamber taken at Kote Apkhazi street (former Leselidze Street) on July 6, 2016. The photo depicts exchange currency booth that buys one USD for 2.03 GEL from tourists, while on that day the price of one USD was 2.30 GEL (15% difference). There are many cases when tourists ask local residents to negotiate taxi tariffs, in other case they have to pay inadequately high prices. «It is a very bad tendency when the facts of cheating tourists have multiplied. It is the state’s responsibility to eradicate the problems. Otherwise, the country may maintain only that category of visitors, who are interested only in adventure tourism. Therefore, I think it will be expedient if Georgia shares the rich experience of Israel that has made the country into a tourism center. I would suggest the government of Georgia to launch large-scale campaign to further promote benevolent attitude towards tourists», Itsik Moshe said and added that this campaign may be carried out under the slogan “Smile to Tourist” and each citizens may be incentivized for demonstrated delicacy (for example, return of lost thing or delivery it to law enforcement offices). «Each citizen needs stimulus for establishing new relations and culture; and each tourist needs feeling of safety and protection and the

country will make tenfold benefits in this way, in terms of financial revenues and international image. And this function may be performed by only the Government», Itsik Moshe said and referred to the sample of ISRAEL that, to his words, suffers from terrorists’ attacks, but the country has managed to become one of the attractive tourism destinations by creating appropriate conditions for tourists. “It is desirable to create special office that will listen to complaints of discontent tourists and which will provide correct and adequate reaction”, Itsik Moshe said. These offices should make focus on one problem that foreign tourists meet especially in big cities. This is a group of aggressive beggars that create discomfort to tourists very often and appropriate instances should provide respective reaction to overcome this problem, Itsik Moshe said.

www.cbw.ge <<

Investor to Build TeaProcessing Plant in Ozurgeti

Government of Adjara Announces About the Unprecedented flight Growth Towards Batumi

Fitch Names Impacting factors on Georgian Economy

Air Arabia Takes First flight on route DubaiBatumi

Georgia and Turkmenistan to Start Regular Direct Flights

July 11, 2016 #153

PUBLICITY

TOURISM

July 11, 2016 #153

NINO KUPARASHVILI

In the first quarter of 2016 Georgia hosted 1 134 436 visitors, up 14.7% compared to the same period of 2015. The existing regional situation in 2015 has made considerable affect on quantity of visitors in the first quarter of 2016. Paata Bairakhtari, an analyst for the Association of Young Financiers and Businessmen (AYFB), says that the last year was critical for Georgia and the whole Region, as heavy economic condition in the country, as a rule, negatively affects the quantity of visitors. The list of top five countries is as follows: Azerbaijan (353 186 visitors), Turkey (273 532 visitors), Armenia (229 114), Russia (144 764) and Ukraine (23 666 visitors). What should we expect in this season? What are expectations, even more so there is unstable tourism season in Turkey? Because of acts of terrorism in Istanbul, the Georgian tourism business operates in forcemajeure situation. The June 29 act of terrorism sacrificed 36 lives at Atatürk International Airport. About 200 persons were wounded. All flights were suspended. Georgian Travel Group Nata Rukhadze, a representative of Georgian Travel Group, says that on June 29-30 the company was receiving numerous calls for cancellation of sold tours to Antalia. Georgian Travel Group has sold many tour packages in the direction of Turkey. The company management appraises the existing situation as quite complicated. Good Travel The company has not sold Istanbul tours, but the situation is very heavy for the company, because flights to almost all European countries are performed via Istanbul airport, Salome Gorgodze, head of the Good Travel PR Service noted. There was no precedent of cancellation of order. Istanbul acts of terrorism, in general, makes negative affect on revenues of travel companies, because similar developments in Istanbul creates the atmosphere of insecurity, Gorgodze said.

Will Georgia Replace Turkish Resorts? Similar act of terrorism took place several months ago too and in that period tourists claimed for cancellation of flights. Clients have to pay fines in case of cancellation of orders. Fly Travel Kakha Jimshiashvili, head of Fly Travel tourism company, is sure that in the future almost everybody will refrain from visiting Turkey because of terrorism threats. Several months ago acts of terrorism in Turkey and France considerably narrowed the company revenues. The tourism season has recently entered its active phase, but this tragic fact will bring large-scale losses to tourism companies, Jimshiashvili noted. At the same time, Paata Bairakhtari, an AYFB analyst, says that the current tensions and instable situation in Turkey are expected to increase tourist inflows to Georgia from both regional countries and Europe. Various tour operators have already deceased tariﬀs by 40% in this direction, but even this decision has not brought desirable results and tourists have canceled even the booked tours. In this situation Georgia remains almost one alternative destination on the Black Sea coastline that can replace Turkish resorts somehow.

“For the purpose of maintaining tourist inflow growth paces, it is necessary to outline Georgia’s tourism potential and upgrade the country perception. In this direction, such PR campaigns of the tourism administration as image commercials in the world’s leading television companies and invitation of European reporters for acquaintance with Georgian resorts are of crucial importance. For the purpose of growth in perception, the Check-in Georgia project should be also stressed, because a lot of tourists have arrived in our country thanks to this program. At the same time, there are certain challenges that maintain relevance in the Georgian tourism sector till today. There are a small number of hotels with focus on medium-income citizens, where service quality is low. Currently, accent is made on business-class and family-style facilities, while in European resorts, the focus is made on medium-class hotels. For quality improvement, it is necessary to train the staﬀ at various facilities and organizations. Both the tourism administration and the authorities should actively work in this direction, as well as the private sector and business”, Bairakhtari noted. It should be also noted that several days ago the Russian Authorities removed restrictions

on tours to Turkey. Several months ago when Russia introduced the mentioned restrictions against Turkey, the Georgian tourism business expected that Russian tourists would direct their plans to Georgia. Should we expect Georgia to Lose Russian tourists after Russia has lifted sanctions from Turkey? The tourism business representatives noted that the inflow of Russian tourists may genuinely decline, but the reduction tendency will not be of dramatic character. Caucasus Travel states that the Russian decision has not affected tourist inflow tendencies in Georgia and no tour cancellation has recorded. The company representatives noted that T, number of visitors to Georgia was growing permanently, when Turkey was closed to Russian tourists, but the country does not lack for Russian visitors anyway. Georgian Discovery Tours travel company representatives noted that Russian tourists have different interests in Turkey and Georgia. Therefore, Georgia will always have its own category of tourists. “Georgia is a diﬀerent segment and Turkey is other category. They will always have the same interest in Georgia. Russian

tourists are mainly interested in wine tourism and coastlines”, the company noted. According to their information, in the last period, after Russia set sanctions against Turkey, the quantity of Russian tourists increased in the country. At the same time, Georgian tour operators do not expect this inflow to decline after Russia lifted sanctions from Turkey. “Russians know Georgia very well. Georgia’s perception in Russia is very high and we do not expect that the country lose tourists”, travel companies declare.

www.cbw.ge <<

Diﬀerent Regulations should Govern Online Loans and Microfinance Organizations

Khalisi Soft Drinks Company to Build Plant in Kharagauli

Iranian Businessmen Redesign Project to Open Hotel instead of Business Tower

Representatives of Beer Factories to Meet with Prime Minister

Spanish Relais of Termal Group to Invest in Tskaltubo Medical Tourism Sector

French-Chinese Deal in Georgian Bank Sector Basisbank and Bank Republic to Merge

MERAB JANIASHVILI Economic Analyst

BANKING SECTOR

July 11, 2016 #153

hinese Hualing Group has decided to unite Bank Republic owned by French Societe Generale and Basisbank. A new commercial bank will be set up, where French party will maintain only 8% stake. Hualing Group, Societe Generale and EBRD have concluded a preliminary agreement on the controlling stake of Societe Generale in Bank Republic in the last week. Hualing Group plans to form a universal bank by uniting Bank Republic and Basisbank. After amalgamation Hualing Group will possess the controlling stake in the new bank and a majority votes in the supervisory board. Societe Generale will hold a 8% stake in the new bank and become a member of the supervisory board. The European Bank for Reconstruction and Development (EBRD) will maintain about 3.9% stake and remain a member of the supervisory board. «The mentioned deal will strengthen Hualing Group in the Georgian bank sector. Under the deal conditions, Hualing Group plans to establish a universal bank by uniting Bank Republic and Basisbank that will firmly occupy the third position on the Georgian bank market. This deal represents an additional proof of implementing long-term investments by Hualing Group in Georgia», the Chinese company said. It should be noted that Bank Republic assets account for 1.654 billion GEL, the stock capital is 245 million GEL and total loans portfolio equals to 1.220 million GEL. Basisbank assets are twice less – 724 million GEL, its stock capital makes up 156 million GEL and total loans equal to 451 million GEL. After amalgamation, the new commercial bank will have quite lower indicators as compared to Georgia’s bank sector leading companies: Bank of Georgia total assets make up 8.293 billion GEL, the stock capital is 975 million GEL and loans equal to 5.182 billion GEL. TBC Bank assets account for 6.366 billion GEL. The stock capital is 1.122 billion GEL and total loans equal to 4.495 billion GEL. TBC Bank director general Vakhtang Butskhrikidze makes focus on the wide profile of Hualing Group. A system player of critical importance is entering the market. The banker

asserts that the regulator should valuably examine the transaction and take the management and monitoring to a higher level, in case of approval. “It would be better for the Consumer that Societe Generale remain, because it is a strategic investor with a focus on the bank sector”, the TBC Bank CEO noted regarding expected merger of Bank Republic with Basisbank. Zurab Gvasalia, head of the banks association, welcomes the expected deal. It will create a new major player in the Georgian bank sector and boost the banking competition, because the new bank will occupy the third position in terms of consolidated assets. “Therefore I welcome similar consolidations as it will make positive aﬀect on the Georgian bank sector development, as well as on the economy financial support. Even more so we have successful samples of merger of commercial banks. I believe amid the Georgian government’s new perspective initiative – One Belt – One Way, that is also known as the New Silk Road, this deal will make serous contribution to further development and modernization of Georgian economy, especially, in terms of infrastructural potential enhancement. This deal will also considerably increase Georgia’s economic and trade relations with the world’s second economic giant – China and this factor will bring huge benefits to our country”, Gvasalia said. The EBRD senior banker expects that the merger of Basisbank and Bank Republic will create a new successful player. At the same time, the commercial banks have only expressed their intention and the regulator has not issued due permission yet. Mekvabishvili confirms that the EBRD will maintain 4% ratio in the new body. At this stage, the EBRD holds a 6.36% stake in Bank Republic. The third major player will boost the market competition, Mekvabishvili noted. The bank’s total assets make up 2.5 billion GEL (Basisbank and Bank Republic). Bank of Georgia assets make up 7.8 billion EL, TBC Bank assets account for 5.9 billion GEL. All three banks will have 23.3 billion GEL assets. As reported, the EBRD will maintain the stake in the amalgamated bank for a certain period and later will withdraw from the bank. Societe Generale will

unveil its own plans later. After British HSBC, Societe Generale is the second European group that has decided to withdraw from the active bank sector of Georgia. It should be noted that the Caucasus Business Week (CBW) published information on expected sales of Bank Republic to Hualing Group in early April, 2016, but in that moment both parties rejected the information: «None of them confirms this available deal. Both managements of Bank Republic and Basisbank expressed astonishment around the scales of dissemination of this information. Hualing Group denies any information, however they are not authorized to unveil similar information, anyway. This information astonished Basisbank founders too. Zurab Tsikhistavi assures this is unreal information, but he could not explain motivation of disseminating similar information. There is no explanation to similar moves. Nor the main goal of these rumors could be outlined. However, the logics suggests that the bank sector may see the past decade’s major deal in Georgia». It is interesting that the new bank of Hualing Group will occupy the third position after Bank of Georgia and TBC Bank with 2.5 billion GEL total assets, 250 000 clients, 61 branches and about 1 300 employees. Hualing Group is a major private conglomerate located in the Chinese province of Xinjiang. The group is one of the major investors in Georgia and operates in the fields such as development sector, construction and rental of commercial space, wholesale market, real estate, logistics, hotel construction and management, commodity turnover, meat processing and so on. As noted above, it also possesses Basisbank. Hualing Group started investment projects in 2007 and implemented 5 major investment projects, including large-scale development project – Hualing. Tbilisi Sea New City, where Tbilisi 2015 Olympic village is located, Tbilisi Sea Plaza, Kutaisi Hualing Free Industrial Zone, Basisbank, 5-star hotel of Hotels&Preference Industrial Zone. In June 2015 Hualing Group purchased the building of Ministry of Economy of Georgia and plans to unveil a new hotel.

AYFB: Competition Agency should Explore SOCAR’s Market Strategy Andria Gvidiani, an analyst for the Association of Young Financiers and Businessmen (AYFB), makes a comment on invaluable competitive environment on Georgia’s autogas market and threats coming from dominant market positions of Azerbaijani SOCAR. Based on the natural gas market realities, one monopolist supplier operates on the market represented by SOCAR and naturally, this situation frustrates formation of competitive environment on the market and damages the interests of Georgian consumers, the Analyst said. «Today only one supplier operates on the natural gas market, represented by Azerbaijani SOCAR. Naturally, this situation hinders formation of valuable competitive environment and the natural gas market bears losses, as well as Georgian consumers. SOCAR’s monopolistic positions have been debated many times, but the government has never taken due and eﬀective steps, because, for many years, we had neither valuable legislation on competition nor antitrust bodies. Consequently, we have received the situation when our markets became entirely unprotected from monopolists and dishonest players», the Analyst said. The competition agency should explore SOCAR’s activities in terms of misuse of dominant market positions, the AYFB representative noted. «Owners of gas filling stations note that on the autogas market SOCAR is a dishonest player and this signifies the company distributes natural gas at far lower prices within its own network, as compared to other filling stations. Naturally, this situation evidently damages the autogas market. As reported, the competition agency has already explored the natural gas market, but the performed job has not brought specific results, because the focus was made on only cartel prices. And now the competition agency should explore SOCAR’s performance entirely and carry out sanctions against the mentioned company. Naturally, gas filling stations have expressed grounded doubts that SOCAR has been misusing its dominant market positions and this situation requires adequate reaction. I believe today the competition agency is the instance that responds to the market challenges in adequate way. Therefore, I believe the competition agency should explore SOCAR activities. Namely, paragraph C) of article 1 of the law on competition (misuse of the dominant position) determines specific situation that hampers the competition development. To be precise, the mentioned article sets punitive measures against creating uncompetitive conditions to a certain category of trade partners by introducing discriminative conditions on identical transactions. Consequently, if the exploration confirms these doubts, appropriate measures must be applied against SOCAR. Naturally, adequate reaction to law violations will improve competitive environment on the market and establish just rules of game for market players», Andria Gvidiani said.

www.cbw.ge <<

Relais of Termal Group got Interested to make Investments in Tskaltubo

ADB Sells 64 Million Georgian Lari Bond to Lift Microenterprises

Slovak Foundation IPM Management LLP to Make Investments in Georgia

Number of Visitors is Increased by 19.9% Through 6 Months

BANK

TBC Bank launches the first in Georgia professional management of financial assets

or the first time in Georgia TBC Bank oﬀers its customers professional management of their free financial resources. With the support of TBC Bank an investment fund was established for this purpose. The fund will invest funds in bonds and securities in Georgia as well as abroad according to a strictly defined strategy. Diversified investment will ensure high profitability with low risk. The fund has European structure

and it will be managed by the company which possesses license to operate in Europe. The company is headed by professionals with extensive experience, Temo Cheishvili and Vasil Revishvili. Since 2000 Temo held diﬀerent positions in the worlds leading banks, Barings and ING. Among these positions were director of investment management, vice president of corporate finance, senior manager of investment products, and strategic consul-

tant. The geography of his active practice includes the Netherlands, France, Switzerland, Singapore, Japan, South Korea, and Eastern Europe. His career started with restructuring credit portfolios and assets of state banks. He successfully implemented this function in diﬀerent countries in Europe and Asia. Since 2004 Temo Cheishvili has been involved in investment business. He successfully managed up to 20 investment funds in

Use TBC Prime Card and win prizes A season of surprises awaits Prime Card clients. The new campaign, which started on June 20th and will last until August 20th, will reward the five Prime Card users with the greatest number of transactions every week. Winners and prizes will be divided as follows: • 1st place – 1,000 GEL • 2nd place – 800 GEL • 3rd place – 700 GEL • 4th place – 600 GEL • 5th place – 500 GEL Winners will be announced every week and the prizes will be transferred to the winners’ Prime Card accounts. On August 25th, A super price of 10,000 GEL will mark the end of the campaign. Clients who own Prime Card Classic, Prime Card Gold or Prime Card Platinum are automatically entered in the campaign.

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Luxembourg, Netherlands, USA and Singapore and as a result attracted several billion Euros. Since 2007 Temo Cheishvili was responsible for creation and management of investment portfolios through bonds, securities, derivatives and loan instruments for central and commercial banks, as well as large pension funds (Germany, Japan, Kazakhstan, Mongolia, Russian Federation, South Africa, Botsvana, Taiwan, United Arab Emirates). Temo Cheishvili successfully established and implemented strategic alliances with financial institutions in Middle East and Asia, he was elected CEO of joint investment company in Saudi Arabia. Temo Cheishvili has obtained master’s degree from Lund University and has attended special courses for top managers in London Business School, Amsterdam

Institute of Finance, INSEAD, Chartered Alternative Investment Association and Euromoney Singapore. He is fluent in Georgian, Dutch, English, French and Russian. TBC Bank’s investment fund will be co-managed by Vasil Revishvili. His career in finance field started in EU Fund’s credit management department. Later he joined Georgian Investment Centre. His professional experience in Georgia also includes working in the World Bank. In 2004 Vasil continued his career in Swiss asset management company Pictet Asset Management and held position of risk controller in London. Later he was promoted to the head of investment risk department in Geneva and London and was responsible for the risk management of portfolio with the value of USD 120 billion. Since 2007 Vasil was a senior investment manager in the same company and managed 3 million USD investment fund based on macro research and algorithmic modeling. In 2008 he returned to Georgia and became the head of wealth management business of large Georgian bank. In addition to rich professional experience, Vasil has received his education in one of the world’s leading universities – he has obtained master’s degree in finance from London School of Business. TBC Bank’s management is glad that for the first time in Georgia the Bank will give its customers an opportunity to invest in the fund of international level and the rich experience of the CEOs will be directed at successful management of client’s wealth.

July 11, 2016 #153

REAL ESTATE

City Hall’s New Regulations Set Perspectives for Completion of Suspended Development Projects

BANKS AND FINANCES

Development Companies Demand for Tightening Quality Control over Construction Materials

t is necessary to carry out monitoring and control on how and what materials are used in construction projects, Lisi Development director general Nodar Adeishvili said. The companies should also produce such products that will not harm the city appearance, Adeishvili added. “The city hall may prioritize this direction to resolve the existing problem. The new general plan should resolve the issue and prior to introduction of these regulations, the companies should take eﬀorts themselves. We should not damage the city appearance in seeking business benefits”, Nodar Adeishvili said. Zaur Gotsiridze, head of Torento construction materials laboratory, says that absence of due legislation creates major problems in the development business. The legislation is to oblige development companies to put construction materials to laboratory examination, while today laboratory inspection is optional. Assertions as if Georgian fittings are low-quality products are exaggerated, because both imported and domestic fittings may be invaluable, he said. However, he also outlined peculiarities of the Georgian reinforcements anyway and said that Georgian product is broken in the process of welding. Therefore, Georgian reinforcements must be used by diﬀerent methodology in the building process. “If the development company follows this technology, then Georgian reinforcements can be used safely and valuably. Ukrainian fittings do not have the same problem. I do not have real information on how accurately Georgian development companies fulfill this technology in relation to Georgian reinforcements”, Gotsiridze noted.

Caparol Georgia director Boris Gamrekeli says that introduction of quality control for construction materials is an issue of critical importance. Any development project must satisfy the standards, be it European, American or Chinese projects. It would not be correct to establish one standard and enforce all companies to follow these standards. Moreover, even highquality construction materials may be used inadequately and in wrong way, he said. “Regretfully, Georgia has ceased educational process in the development-engineering field. Therefore, we have staﬀ with low or imperfect competences”, Gamrekeli noted. A part of the development companies says that legislative amendments should be adopted in terms of lifespan. Some developers doubt that low-quality construction materials are mainly used in the building process and this factor strengthens distrust to new buildings. “In Georgia the lifespan of residential buildings ranges from 60 yo 80 years on average. However, in some cases we may even presume 50 years. Naturally this depends on honesty of development companies. In this respect not everything is in order and many mistakes are made. Naturally, this does not refer to reinforced concrete that determines the building steadiness. In turn, for making economy, they may use insuﬃcient volume of other materials to “spare” funds. Maybe this factor is less destructive, but the quality degree worsens anyway. I believe the legislation should regulate the lifespan of a residential building and appropriate amendments are necessary in this respect”, Besti group director Malkhaz Kokhreidze noted.

“

A part of the development companies says that legislative amendments should be adopted in terms of lifespan

”

Tbilisi City Hall plans to offer new mechanisms to development companies concerning the suspended projects. Namely, new companies may be authorized to assume obligations of previous companies if they will receive higher building coefficient. The new companies will finish the projects and satisfy the Customers, who have been waiting for new apartments for many years. About 100 residential projects have been suspended at various stages. Comparatively less resources are required to finish some of them, while many projects remain in initial stage, including complicated projects, where the same apartments have been sold several times, Tbilisi City Hall said. For the development sector stimulation, the decision has been taken jointly with the central government to exempt similar projects from VAT tax and development intensity coefficient, Tbilisi Mayor noted. As to the coefficient, these projects may be an exception in Tbilisi, because at the end of May Tbilisi Council introduced restrictions for exceeding K2 coefficient on residential houses in central zones of the city. This signifies a legislative norm has been enacted in the capital city that establishes new regulations for high-rise buildings in the central zones – namely, the existing coefficient will not change, i.e. 10-floor building cannot be built on place of a two-floor house. Authors of the amendments noted that that these restrictions are of temporary character and they will run until the Tbilisi development plan has been approved. The right for implementing development projects in green zones are restricted, however, it is unclear how these prohibition will run when green plants are deliberately withered to launch building process in clear places. Tbilisi City Hall has not commented on this issue. It is interesting that restrictions on K2 coefficient have already given hopes to developers and the society that construction boom will move to Tbilisi outskirts from the central districts. The recent information spread by Tbilisi City Hall creates new opportunities for those who want to resume construction works in central zones and to purchase a new apartments in central zones of Tbilisi. However, suspended projects also comprise many obligations, along with debts and it is difficult to say how it is possible to take profitable commercial decisions in similar situations.

BUSINESS

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NATO Offered Georgian Wine to Summit Participants NATO offered Georgian wine to the participants of Warsaw Summit 2016. According to Ministry of Foreign Affairs, the wine has been bottled especially for Warsaw Summit. Minister of Foreign Affairs of Warsaw will offer Georgian wine to his colleges within the frame of the summit. Foreign ministers of alliance countries, participating in NATOGeorgia Commission meeting, will be granted with Georgian wine as well. Wine label has a logo of the summit and also notes, that the drink is specially made for Warsaw Summit.

AWARD

BUSINESS FORUM

The Nominee’s Registration Of The Welcome To Georgia National Tourism Award Is Open! Welcome to Georgia! National Tourism Awards is an Annual National Award Ceremony in the ﬁeld of tourism in Georgia whose main mission is to encourage tourism and hospitality industry in Georgia and to promote the awareness of the country worldwide. The Awards Ceremony is an opportunity to bring together national and local authorities, hotels, restaurants, tour operators, travel agencies, wine companies and more. It is a kind of Oscars for Georgian tourism and travel industries and a celebration of Georgian heritage, culture, traditions and modern achievements. The First Awards Ceremony was held at Funicular Restaurants Complex on 20th of November 2015. Organizers have already started preparation for the Second Awards Ceremony which will

hold at the end of the November. And since 15th June till 1st September Welcome to Georgia! National Tourism Awards invites all companies around the Georgia working in the tourism industry to register and become a Nominee of the Welcome to Georgia! National Tourism Awards 2016 (For Registration visit a web-site: www.awards-tourism.com) in 18 separate categories:

NEWS

EXPORT

Magticom to Complete Reregistration of Caucasus Assets

Georgian Spices Preparing for Global Trade

Magticom has announced about replacing the service supplier. Based on the Agreement with LLC Caucasus Online, Magti will receive all required assets to provide corporate and retail services. The process will be completed in August 2016 and then Magticom company will provide services to Caucasus Online clients.

The Former Designer of Tiﬀany Opened Jewellery Store in Georgia In Georgia, Israeli jewelery brand “Simeli” has appeared. Brand owner Simon Elishakov was the designer of the worldfamous jewelry brand “Tiffany” and later he established his own company. According to him special line for Georgia was launched in order to make products available to everyone. Elishakov noted that Simeli creates exclusive models for women, men and children.

1. BEST BUSINESS EVENT VENUE AWARD 2. BEST MICE TOURISM AWARD 3. BEST TOURISM RESTAURANTS SERVICES AWARD 4. BEST TOURISM WINERY AWARD 5. BEST BOUTIQUE ACCOMMODATION AWARD 6. BEST STANDARD ACCOMMODATION AWARD 7. BEST DELUXE ACCOM-

MODATION AWARD 8. BEST WELLNESS & SPA RESORT AWARD 9. BEST SKI ACCOMMODATION AWARD 10. BEST SEA ACCOMMODATION AWARD 11. BEST LOW BUDGET ACCOMMODATION AWARD 12. BEST TOURISM INNOVATION OF THE YEAR AWARD 13. BEST ENTERTAINMENT VENUE TOURISM AWARD 14. BEST FESTIVAL OR EVENT AWARD 15. BEST INCOMING TOUR OPERATOR AWARD 16. BEST OUTBOUND TOUR OPERATOR AWARD 17. BEST ADVENTURE TOURISM AWARD 18. BEST TRAVEL PHOTOGRAPHER After a registration each nominate will receive access of their

Zaza Bezhanishvili The head of the company

Georgian spices manufacturer company “Suneli” plans to expand its production and increase export. As the head of the company Zaza Bezhanishvili points out, negotiations are underway with several countries, including Ukraine and Poland. “We had meetings, we are going to develop cooperation in order to increase the demand of the production capacity”,- Zaza Bezhanishvili noted. According to him, after the negotiations are over, it is planned to increase the number of the employees and expansion of the enterprise. At this stage, the company sells the production mainly on the local market, in the capital city -Tbilisi and the regions as well. Based on the information Zaza Bezhanishvili provided, almost all kinds of Georgian spices are produced at the plant. “In the range of spices there are Oregano seasoning, Green Ajika, mustard, the variety of spices of traditional Georgian dishes. We keep going to work on our product diversity”,- noted Zaza Bezhanishvili. He explained that since the company’s inception the product sales increased significantly. ,, Suneli ” was founded 2 years ago. The enterprise is located in Tbilisi, and at this moment it has 6 employees.” The main purpose was to supply the population of Georgia with ecologically fresh spices. “Except the local, traditional Georgian spices, we import the spices of high quality (in seeds) from the worldwide famous industrial countries: Egypt, India, Vietnam, Bulgaria, the Ukraine.” They grind, package them and oﬀer the product to the consumers without any additional appendage in the optimum packing considering the accessibility of the price. “Our product stands out with its high quality, aroma, a number of vitamins and healing features due to being natural of 100%.”

online cabinet, where they should answer the questions and upload important documents, on the basis of which will be made an assessment by the professional jury. Each member of the jury will evaluate the nominees individually after 19th September. In addition, from September 1st an online voting will start on the Awards official web page. The chance of winning Welcome to Georgia! National Tourism Awards is equal for each candidate. The Independent Auditor of the Award BDO Georgia will calculate the number of points awarded to each nominee (points awarded by the Jury Expert Board plus the number of votes from the online voting) and will determine the finalists and the winner in each nomination. Be recognized as the best in the tourism industry.

“Women for Tomorrow 2016” to Demonstrate the Role of Women in Economic Development On the 6th of July, at Rooms Hotel Tbilisi, Business Forum – “Women for Tomorrow 2016” was held with organization of Business Association “Women for Tomorrow”. The forum lasted from 10 am to 17 pm. The main supporters of the forum are the United Nations Development Programme (UNDP) and TBC bank. The guests and the attendees had the opportunity to get familiar with the business related issues, and the significance and benefits of being the association member. Additionally, the audience had a chance to learn from experienced professionals in business fields. During the meeting an interesting panel discussions, master classes and variety of topical issues were oﬀered and discussed by several successful people in diﬀerent fields. Consequently, association members of “Women for Tomorrow” have organized all above mentioned activities. Master classes had been conducted by such famous and successful people as are: George Qadagidze - former president of the National Bank of Georgia, Marina Chitashvili - Director General at Shota Rustaveli National Science Foundation and Professor of Psychology at Tbilisi State University, Natia Kvachantiradze – Director of Marketing at Wissol Petroleum. The main objective of the forum was to demonstrate once again the essential role of women in terms of development of any fields and the economy in general. The event was held behind closed doors, where the attendance of association members and invited guests were totally free of charge. However due to the high interest certain number of tickets went on sale. Thus, interested parties had an opportunity to learn more about the activities of the Association and to become a part of the forum. Business association “Women for the future” has big plans for coming future. Thus Caucasus Business Week (CBW) is always ready and pleased to cooperate and support in all the initiatives the Association will have.

HEALTHCARE

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June Records Slight Decline in Price of First Aid Kit The Healthcare Platform nongovernmental organization has published a report on list and prices of medications of the first aid kid, following reports for baby and children medicine kits. The organization has explored the price and composition of the first aid kid as part of the Pharma Monitoring program. The organization has explored a reasonable list of accessories and medications for first aid kit that largely determine the fate of a person and ensure timely and valuable assistance. The report shows that in June the first aid kit’s price has declined by only 1 GEL to 126 GEL as compared to May 2016. Prices of medications were examined at 4 leading pharmacy

Transparency of Formation of Prices of Medications in Georgia’s Neighboring Countries SALOME SHIKHASHVILI Healthcare Platform’s communications specialist Growing prices on medications remain an incurable problem in Georgia for many years. The Panaskerteli Index report for the month of May proves this consideration. Over the 5 months, the index was declining, but according to the latest reports, medication prices have increased by 17.4%. The recent research by Curatio international foundation proves the same opinion (examination of medication prices and physical accessibility, Wave 5. 2016). The research work makes focus on price formation tendencies, including price dynamics for prescribed medications. It is paradox that after 2015 (in 2015 by initiative of the Health Ministry, a prescription system was introduced for reducing poly-pragmasy), the extra charge level on prescribed original brands exceeds 89% compared to medications of the same category issued without prescription; The extra charge level on prescribed generics is higher by 120% as compared to medications issued without prescription. Unlike almost all countries in the world, other paradox and difference in the Georgian pharmaceutical market is that generics of domestic production are expensive compared to imported analogues. The research by Curatio foundation reads that, as part of marketing strategies of major distribution networks, the domestic products are advertised more as compared to imported analogues and this enables domestic enterprisers to efficiently use their market influence. The research authors give one of the recommendations that, identically to other European and developed countries, reference price formation system should be introduced on the pharmaceutical market of Georgia. Formation of medication prices largely depends on state regulations. Price regulation on the pharmaceutical market serves only one objective – expansion of accessibility to medications and reduction of healthcare expenditures. For the purpose of regulation of prices, it is a worldwide applied method to set fixed prices. To increase attainability of medications, various countries arrange legislative basis or create new regulations. In our neighboring countries various methods are applied for formation of medication prices and expansion of accessibility. HOW HAVE THE NEIGHBORING COUNTRIES REGULATED THE LEGISLATIVE BASIS? In Azerbaijan on June 3, 2013 the cabinet of Ministers passed a decree on “Regulation of Prices of Medications Registered in the State and Establishing Control over These Prices». Based on this decree, by initiative of the President of Azerbaijan, amendments were made to the law on medications. As a result of the amendments, new regulations were introduced for price regulation and registration of medication, as well as procedures for implementing the monitoring. A control body was set up – the Tariff Board of Azerbaijan that applies the reference price formation method. For determination of the reference price, the board explores reference prices of at least 5 countries and only after that determines the medication price. Similar reference countries are: France, Turkey, Italy, Spain, Portugal, Greece, Poland, Bulgaria, Slovakia, Hungary. After establishment of reference prices, the medication wholesale price is calculated without VAT. In Azerbaijan the board has designed a special declaration form for regulating prices of original and generic medications. Upon registration the applicant must submit appropriate documentation on price formation to the Board. The board takes USD to determine the currency for identifying the reference price. In the event the USD exchange rate in relation to the national currency rises by about 5% and the situation does not change for 2 months, the board will examine the issue of correction of medication prices.

Under the board statute, the medication packing must also indicate VAT tax along with retail and wholesale prices. All fixed prices are available on the Tariﬀ Board website. At this stage the board has set price on 7075 medications. As a result of regulation of prices in this way, the medication prices have declined to 60% on the pharmaceutical market of Azerbaijan. Ukraine took decision on introducing state control mechanism for medication prices on November 12, 2014. According to the decision of the cabinet of Ministers, state regulation mechanism for medications and medical products have created equal conditions for formation of prices of imported and domestic medications. The cabinet of Minister intends to ensure equal mechanism for regulation of prices on domestic and foreign medications. According to the amendments to the law, margin retail and wholesale extra charges on medications must not be high (the issue is of medications that are included in the national list for necessary medications and medical equipment. Excluding narcotic drugs, psychotropic substances and precursors). Extra charges on medications included in the national list and socially oriented drugs must not exceed 10-25%. In Iran price of pharmaceutical products are strictly controlled by the Government. At this stage, the price formation system is based on cost sheets and strictlydetermined profits margin for manufacturers, distributors and pharmacy networks. Iran is one of the biggest markets among Near East countries. Basically, because of number of population, healthcare expenses per capita are very small. The Iran government’s policy is directed to ensuring attainability of cheap healthcare services by establishing strict control over prices on the pharmaceutical market. Low prices are characteristic sign of Iran’s pharmaceutical market. Generic medications dominate on the market. Thanks to low prices, Iran has become a quite influential drugs exporter country. As to our neighboring country Turkey, prices on the pharmaceutical market are regulated by Institute of Drugs and Medical Products of Turkey that is subordinated to the Health Ministry. The institute follows the reference price formation principle. To determine medication sales price, Turkey applies the external reference price formation mechanism: WHAT IS THE REFERENCE PRICE? The lowest production price in 5 EU member countries (France, Spain, Italy, Portugal and Greece) and the production country price, where a medication is manufactured. The reference price means that it may decline to 60%, Universal discount of 28% on generics is also added to the mentioned component. It should be also noted that if the drugs storage price is lower than prices of reference countries and if it is exported to the countries other than reference countries, its selling price will be based on the lowest price determined in the reference zone. Belarus has also developed its own mechanism for medication price regulation. In June 2016 Belarus President Aleksandre Lukashenko signed a resolution on lowering medication prices. Under the President’s decree N228, changes were made to the previous resolution on Formation of Prices of Medications, Medical Equipment and Medical Devices. The new resolution establishes limits on extra charges in the process of retail and wholesale trade, on both medications and medical equipment and medical devices, based on the USD exchange rate. Moreover, the resolution calls for diﬀerentiated reduction of margin wholesale and retail extra charges, in accordance with selling price of Belarus manufacturers. The Belarus decision is to prevent unsubstantiated growth in revenues of pharmacy networks as a result of the USD exchange rate volatility.

networks: the price of Ibuprofen has declined to 2.65 GEL from 2.80 GEL; the price of Ketorolak has decreased to 1.22 GEL from 1.35 GEL; The price of Kaptopril has declined to 3.81 GEL from 4.38 GEL; the price of Oxolin Ointment decreased to 0.95 GEL from 1.10 GEL. The price of Rehidron Optim declined by 0.05 GEL and Festal cheapened by 0.02 GEL; The price of Salbutamol Sulfat Inhalation aerosol made up 6.95 GEL instead of 7.10 GEL. The price of Somna-Ritz increased to 5.30 GEL from 4.95 GEL. The price of Ambroxile increased by 0.10 GEL to 1.40 GEL. The price of nitroglycerin increased to 0.95 GEL from 0.85 GEL. Prices have not changed on all other medications.

Baby Medicine Kit Price Slightly Grew in June The Healthcare Platform nongovernmental organization has published the list and prices of medications of the Panaskerteli Pharmacy, as part of the Pharma Monitoring program. The organization has examined the averaged price of accessories, are products and medications at four leading pharmacy networks. The report shows that, as compared to May, in June the price of medications of baby medicine kit rose by 2% to 154.31 GEL. The price of accessories has in-

creased, while some care products have cheapened and this is submitted in the infographics. The Healthcare Platform nongovernmental organization plans to publish the list and price of medications of baby, first aid, family, oﬃce, tourist, cottage, driver medicine kits for the month of June. As reported, the Healthcare Platform has been examining the list and price of medications for various segments of consumers for 4 months.

“

Formation of medication prices largely depends on state regulations. Price regulation on the pharmaceutical market serves only one objective – expansion of accessibility to medications and reduction of healthcare expenditures.

”

Children Medicine Kit Price Cheapened by 3 GEL in June The Healthcare Platform nongovernmental organization has published a report on children medicine kit for the month of June, as part of the Pharma Monitoring program. The organization has examined the list and price of medications of children medicine kit at four leading pharmacy networks. The report has showed that the children medicine kit price has declined to 93 GEL from 96 GEL in June. Namely: The price of Turmanidze Ointment was 5.88 GEL in May and the price decreased to 4.90 GEL in June. The price of Re-

hidron Optim decreased by 0.05 GEL to 25.95 GEL. The price of Otipax decreased to 6.95 GEL from 7.20 GEL. The price of Albucid decreased to 0.95 GEL from 120 GEL, while the price of Dramina declined to 3.50 GEL from 5.60 GEL. The infographics demonstrates total price of medications and care products, while the list and price of specific medications are represented in the table. The Healthcare Platform continues examining changes in prices of medications of the Panaskerteli Pharmacy and supplying updated information to interested bodies and the whole society.

PUBLICITY

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WORLD NEWS

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Quotes

“ Management Armenia’s benefits from the Russian ban on Turkey could at best amount to $20 million, which is not a great advantage.

is doing things right; leadership is doing the right things

”

Peter Drucker

Six in 10 respondents in GfK’s special survey of 2,002 people said they expect the economic situation to worsen in the coming year, up from 46 percent in the June survey.

Armenia fails to capitalize Russia Plans U.K. Consumer to Ban ImSentiment Dives Most on Russian sanctions ports of Wine Since 1994 on Brexit against Turkey Materials Eﬀect

rmenian companies failed to capitalize on sanctions Russia imposed against Turkey last year, economist Vilen Khachatryan told a news conference today. Russian-Turkish relations deteriorated following the downing of a Russian Su24 aircraft by a Turkish F-16 fighter jet in Syria on November 24, 2015. In the wake of the incident, Russian President Vladimir Putin signed a decree imposing economic and other measures against Ankara, including ban on imports of Turkish fruits and vegetables. According to Khachatryan, Armenian exports to Russia in 2015 constituted $244 million. In the first five months of 2016 they were worth $132 million. “About 20% of Armenian exports go to Russia, which suggests strong integration between the countries. As a result, Russia remains Armenia’s major trading partner,” he said, adding that several months were not enough for Armenian farmers to boost production of vegetables to step up exports to Russia. Khachatryan said Armenian and Turkish

economies are incomparable as Turkish GDP is 70 times higher than that of Armenia. “In 2015 Turkey exported $600 million worth fruits to Russia, and $336 million worth vegetables. Armenia exported $16 million worth fruits to Russia and $17 million worth vegetables,” he said. According to the economist, it was Iran as well as Russian farmers that benefited most from the worsened Russian-Turkish relations. “In my opinion, Armenia’s benefits from the Russian ban on Turkey could at best amount to $20 million, which is not a great advantage. In terms of tourists inflow Armenia neither received benefits, because Russians prefer to vacation at seaside,’ he said. According to statistics, the trade turnover between Armenia and Russia in 2015 amounted to $1.173.9 billion, a decline of 18% from 2014. Armenian exports to Russia amounted to $225.9 million, a drop of 26.7%, while Armenian exports to Russia in the first 5 months of 2016 actually doubled year-on-year to $132.3 million.

SOCAR Specifies Construction Cost of Turkey’s Petlim Port

he cost of Petlim container port’s construction project in Turkey is nearly $282 million, a representative of Azerbaijan’s state oil company SOCAR told Trend. A 70-percent share in this project is owned by Turkey’s Petkim petrochemical complex, a 57.5 percentshare of which is owned by Azerbaijan’s SOCAR. Petkim’s leadership said in 2015 that the cost of the port’s construction is $400 million. “According to the latest data, the project’s cost is nearly $282 million,” said SOCAR representative adding that $212 million have been attracted thanks to the loan of Turkey’s Akbank, and $70 million were allocated by the project’s shareholders. The representative said the first

phase of the project’s implementation was completed in April and it was handed over to the management of the Netherlands’ APM Terminals. The second phase’s completion is expected in autumn 2016. “Within the operator agreement, APM Terminals will pay $65 million to Petlim until the completion of the port’s construction,” said SOCAR representative adding that at the end of a 28-year term of the agreement, the total income will be divided between the operator and Petlim. Shareholders of the Petlim port are: Petkim – 70 percent and Goldman Sachs – 30 percent. In 2013, a contract was signed with APM Terminals for the port’s management for 28 years. Petlim port’s capacity is 1.5 million TEUs (twenty-foot equivalent units).

The Russian Federation may ban imports of wine materials, the Russian Federation Agriculture Minister Aleksandrer Tkachov said. “We are developing a project that will grow the price, on the one hand, and make message to investors that the Russian Federation will completely close its market for imports of wine materials in 5-7 years. This decision will signal them to collect grapes and make wines from natural raw materials”, Tkachov noted and added that the mentioned decision will incentivize businessmen to arrange their own vineyards in Russia.

Fitch: Tengizchevroil expansion to lower future dividend stream to KazMunaiGas The International Ratings Agency Fitch Ratings says that the Tengizchevroil (TCO) expansion announced by Chevron Corporation on July 5, 2016 will result in a lower dividend stream to the Kazakh stateowned National Company KazMunaiGas (NC KMG, BBB-/Stable), which owns a 20-percent stake in TCO, over the medium term. “We have already incorporated this scenario in our rating case for NC KMG,” says the agency. “Although we view the TCO expansion as positive for Kazakhstan’s oil production in the longer term, it will slow down NC KMG’s deleveraging.” The decision to approve the TCO expansion is a good news for the global oil sector, which has been plagued by low oil prices over the past two years that resulted in massive capital investment cuts in exploration and production, estimated at as much as $1 trillion globally between 2015 and 2020, said Fitch experts. The shareholders of Tengizchevroil are KazMunaiGas national oil and gas company of Kazakhstan (20 percent), Chevron Overseas (50 percent), ExxonMobil (25 percent) and LukArco (5 percent).

.K. consumer confidence plunged the most in 21 years, the latest sign that Britons’ vote to leave the European Union is harming the nation’s outlook. Gfk’s core index slid to minus 9 in a special post-referendum survey conducted from June 30 to July 5, from minus 1 earlier in June. That’s the biggest slide since December 1994 when increases in tax, interest rates and job insecurity weighed on spending. While confidence among respondents who said they voted to remain in the EU dropped to minus 13, the decline was tempered by a lesser slide of minus 5 among those who said they opted to leave. Anxiety is growing as investors and households try to gauge the economic ramifications of the June 23 decision. With both major political parties engaged in heated leadership battles and the politicians who campaigned to leave slow to put forward plans of what a post-Brexit relationship with the EU will look like, the exit strategy may remain unknown for months to come. “During this period of uncertainty, we’ve seen a very significant drop in confidence,” said Joe Staton, head of market dynamics at GfK. “Every one of our key measures has fallen, with the biggest decrease occurring in the outlook for the general economic situation in the next 12 months.” BLEAK CONSUMERS The impact of uncertainty is becoming increasingly evident, with a Lloyds Banking Group Plc gauge Thursday showing business sentiment sank in the days after the referendum. The last time U.K. consumer confidence plunged as much as in the

GfK survey, Bon Jovi and Celine Dion had top-10 songs and Cindy Crawford was announcing her separation from Richard Gere. That’s being reflected on the high street. U.K. retailers had their worst June in a decade as shoppers reined in purchases before the referendum, according to figures from accounting firm BDO. That confirms comments from retailers including Marks & Spencer Group Plc that Britons trimmed spending in the lead-up to the vote. GfK’s regular June survey, conducted before the vote, suggested consumers were becoming gloomier even before the Brexit outcome, while the National Institute of Economic and Social Research said its monthly estimate for June gross domestic product showed an “intensifying contraction.” Six in 10 respondents in GfK’s special survey of 2,002 people said they expect the economic situation to worsen in the coming year, up from 46 percent in the June survey. The proportion of people who believe prices will increase rapidly in the same period jumped to 33 percent from 13 percent. The report noted a greater drop of confidence among those living in the north of England and Scotland than the south, including London. Anecdotal evidence indicates that apprehension in the lead up to the vote also hurt hiring, according to a report by Markit for the Recruitment & Employment Confederation. The number of people placed in permanent jobs fell for the first time since September 2012, according to a survey of 400 U.K. consultancies from June 13-24. Growth in temporary and contract staﬀ billing was the lowest in nine months.

PUBLICITY

July 11, 2016 #153

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 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

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

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,

LIMELIGHTTRAVELINFOCENTER Address: 13 Sioni Street, 0105, Tbilisi (at the end of Shardeni Street) Phone: +995 322 999 123 E-mail: info@limelight.ge Web-page: www.limelight.ge Facebook page: www.facebook.com/limelight.ge

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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July 11, 2016 #153