Caucasus Business Week #180 by Caucasian Business Week

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February 13, 2017 #180

February 13, 2017, Issue 180 - www.cbw.ge

Main partner Georgian Products to Oﬀer Competitive Prices and Quality on Turkish Market Pg. 5

Tbilisi Business Hub – Innovation in the Georgian Market Pg. 7

PR Sopo Khachapuridze: Successful Woman Should Balance Career With a Family Pg. 8

Prices to Grow Further

Magti and Geocelll against Beeline under Cartel Collusion Scheme State Procurement Agency had announced a consolidated tender for January 26-30. The tender winner company was to provide cellular communication services for state structures in 2017-2018. This tender could pass without discussions, if not one important detail. Only Beeline company had submitted an application for the mentioned tender, while Magti and Geocell had not even expressed interest in the tender. It should be noted that these two companies were providing the mentioned services for state structures in previous years. Therefore, their decision seems very strange, because only Beeline has taken part in the tender. Georgian National Communication Commission (GNCC) forwarded a letter to all three mobile operators on conditions of the consolidated tender announced by State Pronouncement Agency.

Inflation Saw Six Years’ High in January

Pg. 11

Georgia without Digital Economic Policy

Pg. 4

Economists carry out a modeling of economic growth on the ground of capital, workforce and digital technologies. Nowadays, digital processes have become an integrated part of not only economy, but also digital economy. Actually, contemporary economy relies on digital technologies, as well as on digital products and services, electronic commerce, digital processes, internet, application of digital information and knowledge, Blockchain system and other digital economic activities. In contemporary political era, Georgia should treat digital technologies as a sector of vital importance, which comprises stimulating potential for state economic growth. It is clear for everybody that digital processes have considerably reshaped all aspects of life, sizes, sorts of economic activities, business models and platform of ecosystems.

Pg. 6

2 GOVERNMENT

NEWSROOM Tbilisi City Hall Working on Taxi Service Licensing Issues Tbilisi City Hall is working on taxi service licensing issues. The process implies introduction of certain regulations, especially in terms of vehicles safety.

Georgia Becomes First Country to Register Property on Blockchain This is the first time a national government is using the Blockchain to safeguard and authenticate state operations, therefore ushering in a belief in the technology that has wrongfully been painted black.

ECONOMY

Food Prices Hiked by 40% Representatives of trading networks say that food product prices have hiked by 40% due to the lari devaluation and growth in excise tax.

Georgia Can Attract Cargo of 6-8 mln t from Central Asia The indicators of 2015, which reflects export/import data of the Central Asian countries and notes that the selected countries are located in the cargo carrying gravity of Georgian transport corridor.

BANKING

Merely 3% of Beneﬁciaries have Converted loans into GEL The volume of loans converted into GEL is tripled through 25/019/02 and the rate is increased from 220 to 863. The activeness is grown after the meeting held in NBG .

“Credit Platform” began ﬁnancial service export in Estonia Another case in Georgia of service export - “Credit Platform” began Georgian financial service export in Europe. According to the company, Estonian Lendika will use their business model and information technology.

BUSINESS

Georgia Ranks 4th in Exports of Ukrainian Dairy Products According to Ukrainian media agencies, in 2016 Ukraine exported 109.3 thousand tons of dairy products to various markets, down 9% compared to 2015.

Georgia’s Apartment Rental Market Decreased by 30% Due to the devaluation of the national currency and low economic growth, it’s diﬃcult to find a client even for cheap onebedroom apartments which usually lead on the rental market.

COMPANY

February 13, 2017 #180

Air Company Flydubai Launches Flights to Batumi Low-cost Arabian Air Company Flydubai adds new direction in Georgia. The Air Company plans to perform flights Dubai-Batumi-Dubai from June 22, 2017 and September 30.

Foreign Minister Concludes France Visit

s part of his first official visit to France on February 6-8, Georgian Foreign Minister Mikheil Janelidze held meetings with Minister of Foreign Affairs and International Development JeanMarc Ayrault, Minister of State for European Affairs Harlem Désir and Chair of the Foreign Affairs Committee of the French National Assembly Élisabeth Guigou. At the meeting with Minister Désir on February 6, the sides talked on relations between the European Union and Georgia, as well as the regional situation in the Caucasus, according to the French Ministry of Foreign Affairs and International Development. The Georgian MFA reported that the sides paid special attention to the process of Georgia’s European and Euro-Atlantic integration. “Harlem Désir congratulated Mikheil Janelidze on the European Parliament’s decision to grant Georgia visa-free travel with Europe. The Georgian Foreign Minister, for his part, thanked his French colleague for his active support of Georgia’s visa liberalization,” the Ministry’s statement reads. With Foreign Minister Jean-Marc Ayrault, the sides talked on bilateral relations, the regional situation in the Caucasus as well as the two countries cooperation in multilateral forums, according to the French Ministry of Foreign Affairs and International Development. The Georgian MFA wrote on February 7 that Minister Janelidze briefed his French counterpart on

Georgian government’s priorities with regards to energy, tourism, infrastructure and agriculture and the possibility of French-Georgian cooperation in these fields. “The importance of the French companies’ investments in Georgia was also highlighted during the meeting where the sides unanimously reaffirmed that Georgia has a great potential for becoming an attractive regional platform for European, including French business,” the MFA statement said. “The French Foreign Minister reiterated the country’s support to Georgia’s sovereignty and territorial integrity, condemned attempts to annex the territories of sovereign countries and noted that France regards the so-called agreements with Georgia’s occupied regions as unacceptable,” the Georgian Foreign Ministry wrote in its statement. At the meeting with Élisabeth Guigou, Chair of the Foreign Affairs Committee of the French National Assembly, the sides also talked on bilateral relations, security environment in the region and the EU-Georgia cooperation. Addressing the members of the Foreign Affairs Committee on February 8, Janelidze stated that Georgia is the EU’s “main ally in the area of security” and underlined that “having such a democratic and stable ally as Georgia is in the interests of Europe.” “Despite occupation of its territories, Georgia will never swerve from the peaceful path and will never waste the opportunity to get closer

to Europe,” Janelidze told MPs. Only stable and democratic Georgia, Janelidze added, “can get united with Europe and make the occupant country leave its territory peacefully.” For that reason, “Georgia critically needs France’s support in this, which it does really have and hopes to have it in the future as well,” he added. Janelidze spoke on Georgia’s European aspirations with Radio France Internationale (RFI) as well. “We have achieved a lot of progress in creating a truly European state … The visa-free travel is a good compliment to all these [reforms implemented by Georgia],” the Foreign Minister told RTI journalist. Final objective of Georgia “definitely is a full-fledged membership of the European family,” Janelidze explained. He also added that Georgia “is doing everything,” to be considered as a country that has “the same level of development, institutional development,” as the European member states, “even without the name of being a member of the European Union.” Janelidze also pointed out that the country needs more support from the European Union. “We are getting support in the form of technical assistance, in the form of financial assistance, but we also spending our resources and we are spending much more than even candidate countries were spending on reforming their institutions,” Janelidze said. Civil.ge

PM encouraged by talks on reforming the Georgian Public Broadcaster

eorgian Prime Minister Giorgi Kvirikashvili is hopeful that the Georgian Public Broadcaster (GPB) will develop into a modern, independent and engaging television network. Today we are paying millions of GEL for this product (GPB)… and we really want it to be a television provider that serves the public interests”, PM Kvirikashvili said before today’s Government Meeting. The PM said that he welcomes the “civilised” discussions and public engagement around the GPB - the country’s state-funded television

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network - for exactly this reason. New GPB Director General Vasil Maglaperidze has proposed to suspend the broadcast of all GPB TV programs with the exception of news for one year as part of wide-reaching reforms within the organisation. A month after being elected as the new Director General, Maglaperidze presented his three-year reform plan aimed at developing the GPB and “moving it out of crisis” on February 6. Established under the Georgian Law on Public Broadcasting, GPB’s purpose is “to provide accurate

and up-to-date information that is free from political and commercial bias and is shared without any hidden agendas. The programming seeks to address the needs and interests of the larger Georgian society through diversity of programs and viewpoints.” The GPB is allotted about 40 million GEL annually from Georgia’s state budget. Meeting with the GPB Board of Trustees at the Presidential Palace earlier yesterday, President Giorgi Margvelashvili received detailed information about the developments in the GPB.

Editor: Nutsa Galumashvili. Mobile phone: 595 380382 Reporters: Medea Samkharadze; Mariam Kopaliani; Merab Janiashvili Designer illustrator: Ilia Chrelashvili. Technical Assistant: Giorgi Kheladze

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

February 13, 2017 #180

PUBLICITY

ECONO-MIX

February 13, 2017 #180

Prices to Grow Further Inflation Saw Six Years’ High in January

Soso Archvadze Economic expert

Merab Janiashvili Economic Analyst

Annual inflation will increase in the first half of 2017 and surpass the 4% target indicator a little. However, after expiry of eﬀect of increased excise tax, inflation will decline and will get closer to target indicator in midterm period.

‘‘

In Georgia, currently there is a lot of talk about unemployment and self-employment. Who and on what basis are considered unemployed and self-employed? Over the last 25 years, unemployment in Georgia took the character of a systemic problem, and has become a daily reality. According to various surveys, the unemployment rate was ranked first among the issues that concern the country’s population that pushed into the background such national issues as territorial integrity, rule of law, etc. To date, only in 8 countries unemployment rates are higher than in Georgia. How is this possible? The problem is that the current job structure in Georgia is extremely inefficient, most people take up any business only to provide themselves. a significant portion of employed in our country are self-employed, and cost-eﬀectiveness of this type of employment is very low compared to employment. Self-employed earn almost 3 times less than salaried employees. Is income of the self-employed suﬃcient for normal life? If you look at the statistics, it shows that the average salaried urban residents earn 1, 5 times more than rural ones, most of which are self-employed. The paradox, but it turns out that, formally, the employment rate in rural areas is higher than in urban areas, but this time is not converted into wealth. Why migration from rural to urban areas is not so active? Of the 4 foundations of a market economy, the labor market in Georgia is the weakest link. Why there is no mass influx of rural people into the city? Primarily because of the low qualification. In the cities, everything is based on technology and a skilled workforce is required. In the villages money is not invested in education and the villagers in the town have no choice but to trade in the market - but the sector is also too busy and there is almost no free places.

‘‘

Georgia Has a Wrong Job Structure

t the end of the past year expected growth in taxes made partial influence on growth in consumer prices. In January 2017 the inflation upturn made up 2.9% compared to the previous month. The consumer price index is up 3.9% compared to the same month of previous years. The index has risen by 22.5% compared to the averaged figure of 2010. It is worth noting that Georgian National Bank has fixed target inflation level at 4%. According to Geostat, national statistics service of Georgia, January inflation indicator was mainly influenced by change in prices in the following groups: food and soft drinks – prices rose by 4.2%. Consequently, the group’s ratio in total inflation indicator made up 4.2%. Vegetable and garden plants prices rose by 22.4%, fruits and grapes prices increased by 8.9%, milk, cheese and egg prices rose by 3.1%, oil and fat price grew by 3.1%; fish price increased by 2.8%. price of meat and meat products increased by 2.5%. In transportation group prices rose by 7.2% and the group’s ratio in total inflation index made up 0.94%. Prices grew on exploitation of personal transport (up 10.1%) and purchase of transport (up 4.9%). As to annual inflation indicator, it was mainly influenced by change in prices in the following groups: transport – prices in the group rose by 10.8% and its ratio in total inflation indicator marked 1.35%. Prices rose on exploitation of personal transport (up 16%); alcoholic drinks and tobacco: prices rose by 18.9% and consequently, the group’s contribution to total inflation indicator made up 1.14%. Prices considerably increased in tobacco products subgroup (up 40.2%); in the reporting period prices rose by 3.3% in group of food products and soft drinks. The group’s contribution to total inflation indicator made up 0.99%. Prices rose in subgroup of sugar, honey, chocolate, confectioneries (up 16%). A 3.9% inflation indicator in the month of January should not be perceived as alarming, but inflation expectations have grown in 2017 and therefore, this year prices are expected to grow further. This consideration is proved by recent decision of the National Bank of Georgia (NBG) on tightening the monetary policy. At the same time, NBG also confirms that the annual target inflation indicator will exceed 4% in 2017. «Annual inflation will increase in the first half of 2017 and surpass the 4% target indicator a little. However, after expiry of eﬀect of increased excise tax, inflation will decline and

will get closer to target indicator in midterm period. Starting 2018 the target inflation indicator will be 3%. In 2017 inflation will exceed the target indicator because of one-time factors, basically. Namely, inflation growth is preconditioned mainly by increased excise tax on consumer prices. Moreover, in the second half of 2016 Turkish Lira depreciation affected GEL exchange rate. As a result, inflation imported from other trade partner countries will partly affect inflation growth, as well as midterm costs upturn, that mainly reflect increased service burden of foreign currency denominated loans. On the other hand, the joint demand directs inflation to reduction, as a result of weak economic activity compared to potential. Under forecasts, weaker joint demand will precondition inflation reduction in 2018 after expiry of one-time factors. In midterm period inflation will get closer to the target indicator from below», the NBG monetary policy report reads. Statistics expert Soso Archvadze expects the inflation indicator to further grow in 2017. The country may see two-digit inflation indicators, he said. «I think the current 3.9% inflation indicator does not reflect reality. The month of January is not an active period and there are certain reserves, including in the trading network. Increased excise tax will effect consumer market in 2-3 months. I think this year we will get close to double-digit inflation indicator and the 4% target inflation will «be fulfilled» by excess», Archvadze noted. It is worth noting that no serious problem with inflation had arisen in Georgian economy since 2011. However, we should recall that the Government has provoked growth in price, to a certain degree, as a result of increased taxes. Therefore, inflation will remain one of the key challenges before our country in 2017. For example, Georgia’s monthly inflation had not been 2.9% or higher since September 2010. This signifies that the month of January saw highest upturn in price over the past 6 years. In 2017 Georgian economy is facing various challenges and inflation is one of the main challenges. We expect NBG to curb growth in general level of prices. We hope annual inflation will not exceed the target indicator significantly. After all, the central bank has an only function – stabilization of prices and this instance is to fulfill even this mission.

“Rules for foreign purchases of agricultural land should be tightened, but it does not mean it will be completely inaccessible to investors. We began consultations on the Vine and Wine law. The bill provides modern approaches, modernization of the legal framework to promote competitiveness. Within the bill, a few important initiatives, which are in line with international practice and the European standards, will be proposed”

Otar Danelia Member of Parliament of Georgia

MAIN PARTNER

February 13, 2017 #180

International Investors Association of Georgia International Investors Association of Georgia Osman ChalikshanMzhavanadze, head of International Investors Association of Georgia, explains that the agreement revision issue was negotiated in previous years too. We will only welcome if the agreement is revised. Osman ChalikshanMzhavanadze explained that Georgia’s exports ratio in Turkey is very small. Therefore, the mentioned initiative will incentivize Georgian entrepreneurs in their business activities, he said. «For example, there is a filbert processing plant in Zugdidi that manufactures oil from lower-quality filbert. The product is exported to Turkey. I believe Georgian wines, mandarins, orange, lemon and many other agriculture products may be exported to Turkey in increased volumes», ChalikshanMzhavanadze said. Georgia has potential to manufacture products and export them to Turkey or to Europe via Turkey, he said. Georgian products, including Nabeghlavi and Borjomi mineral waters are very popular in Turkey. Georgian wines are also in-demand products, but currently they are exported in limited volumes, Head of International Investors Association of Georgia noted.

complaints regarding this factor for a long period, Chargeishvili said. ‘For example, we have limited quotas on wines. We are authorized to export only 1 million bottles to Turkey and even this quota is regulated by Ministry of Agriculture. Naturally, simiGeorgia-Turkish free trade agreement will lar barriers restrict Georgia’s be revised and specified by the end of 2017, potential to grow exports in Turkish ambassador in Georgia noted. We Turkey and placing Georgian remind you that the question is of exports of products on Turkish market. Georgian products to Turkey without tariffs and Moreover, after Georgia enreduction of trade quotas. acted DCFTA agreement with EU, based on its conditions, the issue of Georgia-Turkey trade agreement revision was actualDAVID BAGHASHVILI ized. It is necessary to reshape certain issues in a new manner, n 2007 we signed a free Under the joint research work especially the processing of imported products in Georgia trade agreement with conducted by PMC research and then exports to Europe. Georgia. I believe this center and Konrad Adenauer Raw materials of Georgian agreement works very foundation, the agreement production should dominate well. That’s why Turkey is enacted in 2007 and 2008 here. Otherwise, Georgia’s number one trade has positively For example, Georgian product will partner. Currently, Ministers affected trade not be admitted to of Economy negotiate the relations between there is a filbert processing plant European market», agreement revision details. two countries, Chargeishvili said. By the end of this year we will however, certain in Zugdidi that As to the demand have agreement on how to problems were manufactures and Georgia’s correct the free trade agreeoutlined. Accordoil from lowerpotential to manument. These decision will ing to researchers, quality filbert. facture international increase Georgian products key challenges are The product standard products, exports to Turkey and Turkrelated to tariff is exported to which would be ish products exports to Georbarriers, Georgia’s Turkey. I believe competitive on gia», Turkish Ambassador in unemployed quoGeorgian wines, Turkish market, Georgia Zeqi Levent noted. tas and taxation mandarins, and to fully employ As reported, Turkey is Geormechanisms. orange, lemon the existing quotas, gia’s major trade partner. Economic Expert and many other Chargeishvili exAccording to the 2016 indica- Akaki Charplained that Georgian tors, trade turnover with geishvili: agriculture entrepreneurs aspire this country in total exports We knew that products may to export products marked 8%. negotiations were be exported to Turkey, including In 2015 Turkish imports’ ratio underway, but I to Turkey in meat, honey, wines in Georgia marked 1.5 billion had no informaincreased and so on, however, USD. The figure made up 1.4 tion about this volumes Georgian businessbillion USD in 2016. statement by the men face problems As to exports, Georgian exTurkish ambaswith penetrating ports in Turkey made up 186 sador, economic Turkish market because of the million USD in 2015 and 174 expert Akaki Chargeishvili mentioned barriers. million USD in 2016. said. Turkish products have been How Georgia-Turkey free The wider Georgia-Turkey trade agreement is. What trade agreement is employed, represented on Georgian market for many years. Georgia problems and challenges the more Georgian business is able to make products with the country is facing in this will realize that Georgian competitive prices and quality respect. How Georgia has party has unequal positions for Turkish market, including employed its exports potenin the Agreement. Namely, Georgian tomato, honey and so tial and what processes we under the agreement, Georon. They are natural products should expect after revision gian party had more limits with high prices, but Turkish of this bilateral trade agreethan Turkish party. That’s citizens give preference to ment. why Georgia was expressing

Georgian Products to Oﬀer Competitive Prices and Quality on Turkish Market

5 Georgian products anyway in this segment thanks to qualitative advantage”, Chargeishvili said. Economic Expert Paata Sheshelidze: Economic expert positively appraises Georgia-Turkey free trade agreement revision perspectives. All barriers should be removed so as Georgia export products without obstacles, he said. Compliance of Georgian products with international standards should become questionable. Everything depends on individual cases, Paata Sheshelidze noted. “Some products may satisfy these standards, others not. We should not say - Georgian products do not fit. Windows should be open. People should be allowed to export their products to foreign markets. Economy needs freedom”, Sheshelidze pointed out. Further liberalization of the agreement will bring only positive effects. Some products will be exported, some products will be imported and this is a good process. These decisions will boost market competition in the country and incentivize domestic entrepreneurs to offer lower prices and higher quality and make their products competitive on both domestic and global markets, Paata Sheshelidze said. We remind you that Georgia and Turkey signed a free trade agreement on November 21, 2007. The agreement came into force on November 1, 2008. After the agreement enforcement, customs taxes on imports were abolished, as well as their equivalent duties. The Parties agreed to introduce neither new customs taxes in the mutual trading regime, nor their equivalent duties. The agreement was enacted on November 1, 2008. The agreement annulled all customs taxes between two countries, excluding several ones. The agreement also calls for full liberalization of industrial goods and offers serous preferences to the agriculture field, namely, at this stage, it is possible to export more than 1 million bottles without customs taxes to Turkey. Moreover, 4 000 tons of mandarins and oranges are not taxed by customs tax of more than 50%, zeroed customs taxes refer to 2 000 tons of apple and other agriculture products. At the same time, Georgia has used the free trade agreement and imports of dairy products, tomato, citrus, natural honey, filbert, grapes, apple, tinned vegetables and other agriculture products are taxed by customs tax, because production of the mentioned products have been developed in Georgia.

DIGITAL ECONOMY

February 13, 2017 #180

Research works prove that quantity of companies, which represent a part of digital economy increased by 30% in 5 years and consequently, quantity of job place has grown by 5%.

Georgia without Digital Economic Policy Professor Rati Abuladze, founder of Electronic Management Research Academy

BFM.GE

conomists carry out a modeling of economic growth on the ground of capital, workforce and digital technologies. Nowadays, digital processes have become an integrated part of not only economy, but also digital economy. Actually, contemporary economy relies on digital technologies, as well as on digital products and services, electronic commerce, digital processes, internet, application of digital information and knowledge, Blockchain system and other digital economic activities. In contemporary political era, Georgia should treat digital technologies as a sector of vital importance, which comprises stimulating potential for state economic growth. It is clear for everybody that digital processes have considerably reshaped all aspects of life, sizes, sorts of economic activities, business models and platform of ecosystems. These developments have made direct or indirect influence on all citizens of Georgia, business organizations or environment. The fact is that potential power of digital economy subjugates public and business sectors to influence of digital innovations. It should be noted that the higher digital readiness of a country, the faster digital economy is shaped, the higher benefits and faster economic activities are and on the contrary, the lower readiness, influence of digital processes provokes new challenges and reduces competitive capacity of a country. Research works prove that quantity of companies, which represent a part of digital economy increased by 30% in 5 years and consequently, quantity of job place has grown by 5%. It should be noted that 9% of companies working in digital sector creates 7% of national production (Economist.com). Capitalization of internet companies creates the sense of MIRACLES in global digital economy. Each of similar companies receive much more revenues compared to Georgian economy. Namely: Google/Alphabet (market capitalization 510 billion USD), Amazon (341 billion USD), Facebook (340 billion USD), Tencent (206 billion USD), Alibaba (205 billion USD), Priceline (63 billion USD), Uber (63 billion USD), Baidu (62 billion USD), Ant Financial (60 billion USD), SalesForce (market capitalization – 57 billion USD in 2016).

Challenges of Digital Economy in Georgia Georgia possesses resources and potential of digital economy, however, the country cannot make a use of its benefits and potential, because of digital economy policy. Namely: the country does not carry out measures for influencing digital processes; financial support for digital activities is small. Results of similar efforts are also unimportant; measures for digital economy growth is fragmented; programs promoting employment on digital market and stimulating creation of internet technologies are small; existing tax-budget system cannot ensure sustainable development of digital market and internet business; the current taxation system of internet commerce and taxation tariff frustrate electronic commerce in its inception. Even today, in homeland of the Internet, the USA, several states are free of tax on electronic commerce (for internet users). Regretfully, in Georgia consumer internet product with price of more than 300 GEL is subjected to taxation; economic diplomacy cannot ensure preconditions for digital economy upturn and development; Digital Economy Perspectives Regretfully, it should be noted that not perception and understanding of digital economy potential is problem for Georgian politics, but creating and carrying out digital economic policy. Political environment realizes benefits of digital economy theoretically, but practical understanding and perception is expressed in scales of digital economy – scales of Georgian digital economy are unknown. At initial stage, digital economic policy should be formulated in the following directions, for bringing Georgia’s digital economy into effect: Infrastructure and Technologies. Today the country cares for arranging infrastructure, however, paces of expansion of technological basis remains low; Policy There were many announcements for developing distinct laws in relation to digital policy. It is necessary that the Government, through cooperation with business and scientific sector, create legislative basis for developing digital environment and regulation, foster arising internet companies and stimulate internet market;

People and knowledge of digital technologies, growth in knowledge of digital technologies should be carried out through cooperation with higher educational institutions, with initiative groups focused on electronic governance field. Electronic governance field may be outlined in a complex way by scientists-researchers and business sector oriented on the mentioned field; Strategy and Responsibility Based on research and analysis of digital environment, the Digital Georgia strategy should be developed that should comprise specific programs and short-term plans, as well as responsibility for fulfillment of these programs and plans. Strategy should take into account influence of global systems, global challenges, national peculiarities and perspectives; Taxation-budget system Tax based on internet commerce should be abolished to stimulate intensification of activities of internet users, creation of internet products and services and consequently, creation of internet companies. Programs promoting activity of digital economy should increase, as well as stimulating measures and financial support. In whole, we will receive sustainable development of electronic commerce and formation of digital economy; It should be noted that the Authorities and political environment should introduce rational directions of economic activity to the society, as well as eﬃcient strategy, specific programs and digital economic policy. All these factors are guaranteed by scientific-research resource. Aspirations and readiness of this resource is real. Conclusion It is necessary that the Authorities (Ministry of Foreign Aﬀairs), jointly with partner countries, deepen bilateral relations in digital economic field; carry out economic diplomacy for growth and development of digital economy; direct foreign policy strategy for outlining digital business environment, create exports conditions for digital products and shape digital commerce space; promote digital economy security of the country. It is worth noting that upgrading of social and economic activity of the society, strengthening of the society and growth in welfare are achieved through employment of digital environment, development of digital markets and active use of scientific resources. Last Tendencies of Georgia’s Foreign Trade According to the national statistics service of Georgia, Georgia’s foreign trade turnover rose in 2016, but, at the same time, it declined. In terms of statistics, imports of medications against Hepatitis C create the picture of growth, without which both components of foreign trade decrease imports and exports, would decrease. According to information published by national statistics service of Georgia that reflect foreign trade turnover, Georgia

exports kept dropping on foreign markets throughout 2016. In general, in 2016 Georgia’s foreign trade turnover in commodity (without undeclared trade) made up 11.966 billion USD (almost 12 billion USD), up 20% year on year; including exports marked only 2.114 billion USD, down 4% year on year, Imports constituted 9.852 billion USD, up 27%. It is worth noting that in the reporting period, under the US grant program, medications against Hepatitis C were imported, without which specified imports would constitute 7.233 billion USD, down 1% year on year. Georgia’s negative trade balance in 2016 marked 7.738 billion USD, 65% in foreign trade turnover. Trade turnover with EU has increased in total foreign trade statistics and its volume constituted 3.601 billion USD, up 14% compared to the same period of 2015; including exports marked 571 million USD, down 12%, amid free trade agreement between Georgia and EU. Meanwhile, Georgia’s imports with EU countries made up 3.30 billion USD, up 20% year on year. One of the reasons for such growth in imports is related to imports of free medications against Hepatitis C. EU’s ratio in Georgia foreign trade turnover made up 30%, including 27% in exports and 31% in imports (32.29% and 33% in 2015, respectively). Government of Georgia assures that it has been taking tireless eﬀorts for developing exports potential, making various subsidies and seeking new markets. The Government is content with existing statistics. Georgian Prime Minister Giorgi Kvirikashvili noted that exports statistics declined because of contraction in global prices: “Exports have increased in quantitative terms, but declined in value, because prices have dropped on main exports markets. Exports could not come up with imports and that’s why we have current situation. Imports correction has already started and GEL exchange rate will be stabilized definitely”, the Prime Minister said. GEL exchange rate stabilization is a necessary precondition for growth in foreign trade turnover and strengthening exports. Merab Janiashvili, representative of Association of Young Financiers and Businessmen (AYFB) noted that Georgia’s foreign trade turnover were caused by economic diﬃculties in the former Soviet Republics. According to Geostat indicators, Georgia’s foreign trade turnover with CIS countries made up 2.721 billion USD in 2016, down 3% year on year, including exports marked 739 million USD, down 12% year on year and imports constituted 1.983 billion USD, up 1% year on year. Ratio of CIS countries in Georgia’s foreign trade turnover made up 23%, including 35% in exports and 20% in imports (28.38% and 25% in 2015, respectively). Ratio of ten major trade partners in Georgia’s total foreign trade turnover made up 68% in 2016. Canada emerged as a major trade partner with 1.8 billion USD, thanks to medications against Hepatitis C. Turkey is second and Russian Federation is third.

Capitalization of internet companies creates the sense of MIRACLES in global digital economy. Each of similar companies receive much more revenues compared to Georgian economy. Namely: Google/ Alphabet (market capitalization 510 billion USD), Amazon (341 billion USD), Facebook (340 billion USD), Tencent (206 billion USD), Alibaba (205 billion USD), Priceline (63 billion USD), Uber (63 billion USD), Baidu (62 billion USD), Ant Financial (60 billion USD), SalesForce (market capitalization – 57 billion USD in 2016). As to key exports and imports products, in 2016 cooper ores and concentrates ranked first in top ten exports items with 312 million USD and constituted 15% in total exports. Filbert exports marked 179 million USD, 9% in total exports. Ferroalloys groups ranked third with 169 million USD (8% in total exports). Based on the mentioned indicators, Irakli Makalatia, president for Center of Economic Policy Experts believes that Georgia fails to employ exports potential at full capacity; “We cannot penetrate markets, because we cannot ensure high quality, on the one hand, and state economy is not developed to the level, when required products will be manufactured”. Like Irakli Makalatia, many other economic experts believe that for employment of exports potential and growth in foreign trade turnover, economic policy should be revised. According to economists, Government should prioritize subsidization of not specific fields or enterprises, but,in general, improvement of business environment in the country.

INTERVIEW

February 13, 2017 #180

Tbilisi Business Hub – Innovation in the Georgian Market «Innovative Flexible System Ensures Top Level Services Both for Georgian and Foreign Clients

bilisi Business Hub”- Company is a new word in the Georgian market. Both physical and corporate bodies can receive high quality services in single-window space of the Hub, including in legal, financial, notarial, architecture/design, printing, translating, event management issues, as well as in planning/organizing of business trips and so on. What advantages “Tbilisi Business Hub” oﬀers, what specific services it provides, who enjoys these services, what preconditions peculiarity of the company and why the company has decided to accumulate all services within the same space. Over these issues the Banks & Finances newspaper has interviewed “Tbilisi Business Hub” Director Vano Shpetishvili.

“A team of certified professional auditors led by Nato Mukhiashvili has been already registered at State Auditor’s Registry and therefore, their conclusions bear higher level of legitimacy.” - New word in the Georgian market – this is a serious statement. What is the essence of “Tbilisi Business Hub”? What services does it offer to clients? What are the company advantages? - Let’s start with innovations introduced by “Tbilisi Business Hub”. We provide top quality and professional services in various fields, including in legal, financial, notarial, architecture/ design, printing, translation, event management issues, as well as in planning/organizing of business trips and so on. The fact is that any company needs almost all the above-mentioned services for successful business activities, but they have to visit different locations for these services. As a result, they waste much time and receive worse service quality, while the same space at our company accumulates various important services that are provided by a group of professionals full of sense of responsibility for the performed job. As a result, clients are can save time and receive high-quality services. The sense of responsibility also grows. All these factors create innovative approaches in the Georgia market. We know that there are many companies in Georgia that provide various services and they can receive services from experienced professionals. However, at this stage, “Tbilisi Business Hub” is the only place, where clients receive all services for business activities within the same space. I would like to note that our services in single-window space is both for corporate and physical bodies. There are no limits in this respect. On the contrary, we are ready to accept any interested body and provide high level services. We have done our best to provide maximally comfortable environment for our clients, including preliminary planning of meetings at desirable department and at desirable time. Location of the hub and parking place also make the company services more attractive, even more so in today’s overloaded road traffic in Tbilisi. Besides the above-mentioned, we offer additional services to our clients. They can use our offices and conference hall with modern equipment and infrastructure for their meetings.

As to foreign investors, the Hub offers company registration and market research services, as well as mediation services and establishing contacts with corresponding state and domestic business sector representatives. Naturally, valuable services are provided by professional staff with modern education. The company team is staffed with experienced personnel educated in western countries. All of them are professionals with high level of communication skills that are of crucial importance for successful business activities. - Would you specify legal services that your company offers to clients? - “Tbilisi Business Hub” provides qualified legal services to both physical and legal bodies. Moreover, our employees are famous for their professionalism and huge experience in legal issues. Our innovative flexible system ensures top-level services both for Georgian and foreign clients, such as founding a new company, the current and liquidation periods of a company and so on. Our lawyers, first of all, take care and protect the interests of the company clients and satisfy their demands thoroughly. If necessary, they apply to courts of all instances, as well as to arbitration court of Georgia, communicate with the Enforcement Bureau and various administrative bodies and struggle, to the end, for desirable results. It should be noted that defense lawyer service is not the only direction of the company. Shorena Chumburidze, professional lawyer with western education, assists arguing parties to find correct decision for resolving disputable issues, before disputes grow into heavier forms. To this end, she appraises expected risks and outcomes, provides due consultations to the parties and, based on all the above-mentioned efforts, she carries out negotiations on the client’s consent. Elaboration of agreement conditions in advance enables to prevent longterm and unclear disputes. We also offer standard notarial services. Our clients are able to sign an agreement, register legal entities, receive extracts from notary bureau, receive basic notarial services, includ-

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As a result, they waste much time and receive worse service quality, while the same space at our company accumulates various important services that are provided by a group of professionals full of sense of responsibility for the performed job. As a result, clients are can save time and receive high-quality services. The sense of responsibility also grows. All these factors create innovative approaches in the Georgia market.

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ing online services. It is also possible to perform notarial activities outside the notarial bureau, on client’s request. The main thing is that, thanks to mediator notary, parties conduct negotiations for achieving agreement on disputable issues at initial phases. To this end, notaries have to use alternative ways for resolving private legal disputes – notary mediation enables to resolve the disputes quickly and cheaply. As a result, the arguing parties do not have to visit courts. They save time and money and are fully involved in discussing disputable issues and in decision-making process. Mediation process proceeds with protection of equality, independence, unbiased position and confidentiality of parties. Act of agreement is confirmed by a notary. In the event of non-fulfillment of obligations under this act, an executive order is issued on creditor’s request and execution is carried out in compliance with the Georgia law on execution proceedings. These procedures do not require long-term trial in addition. - What is the advantage of your auditing services compared to your competitors? - As to audit, new amendments were made to the Georgian law on Book-

keeping, Accountability and Audit. Under the bill, it is mandatory to register auditors and auditing companies in state registry to start auditing services. And an auditor will not be able to pass registration without professional responsibility insurance, along with other requirements under the legislation. A team of certified professional auditors led by Nato Mukhiashvili has been already registered at State Auditor’s Registry and therefore, their conclusions bear higher level of legitimacy. This team also offers high-standard auditor and bookkeeping services that includes both taxation, customs and express audits, as well as participation in tax and customs disputes and taxation consulting. There is also opportunity of carrying out a complex outsourcing of company financial management (bookkeeping, financial planning, financial accountability, tax management and so on) and expertise of bookkeeping. Professionals will provide consultations to both physical and legal bodies. - As to architecture and design, what sort of services do you offer to clients and what specific products does this service provide? - The company offers full package of services of exterior and interior design of multi-storied buildings, individual residential houses, public, commercial spaces, provides construction works and overhaul works due to the interior design that are maximally adapted to client’s needs. High professionalism of the company architect-designer ensures top quality services. Mariam Kamkamidze, who have obtained MA degree in interior architect-designing field at Paris Academy of Arts, has a multi-year experience of professional working with such architecture and design companies as “PAULA&PHIL – DECO MARABOUT” (France, Paris), „CALDER“ (France, Paris), „LE POEME“ (Corsica, France). Our services imply construction of a building from zero phase, starting from selection of a due territory, designing works, introduction of design by 3D visualization and signing due documents and ending with interior design and landscape projectingplanning. The architect-designer directly participates in the project

implementation and supervise the process before the project is transmitted to customer in finished form. - High quality event management is a quite rare product in the Georgian market. What services does the company offer to business structures in this respect? - Sure, this field is one of the services that has not been used in the Georgian market at full capacity. I would like to say that a group of experienced event-managers work in the company. They are oriented on services for business companies. Business conferences/meetings, new company/ inauguration ceremony of branches, workshops/trainings, exhibition of samples of art – organizing, new brand/ product presentation – this is an incomplete list of services that create main preconditions for success in business. Services offered by the company event-management team comprises a full package of services, starting from event planning and ending with the selection of decorations and full services. As I noted above, Tbilisi Business Hub enables partners to conduct business meetings and use specially allocated comfortable rooms of the Hub. Therefore, various companies will save time and this is of crucial importance. - You noted that the company serves both Georgian and foreign clients. Do you have due resources that is decisive for serving foreign clients? -Naturally, to make the company services more perfect, Tbilisi Business Hub offers services of certified translators in various languages. Nino Jologua, certified professional translator of the company, performs professional translations of legal, financial, marketing and medical and other documents in Georgian, Russian and English languages in various combinations. The company also offers translation services in many other languages. Moreover, in some cases professionals working in various fields are able to establish communication with foreign clients without translation, thanks to education received in foreign countries and knowledge of languages. - And finally, what would you add to our interview? - Besides the above-mentioned, our company offers planning/organizing of business trips. The Hub offers the service of booking tickets and hotel suites, filling out the visa application forms and provides related services to everybody, who plan to leave for business meeting. All these services are performed by certified and experienced staff. Moreover, Tbilisi Business Hub is not confined only by business activities. I would like to notify you about one novelty. Under the joint decision of our team, we have come to conclusion that we should enable people to express themselves, who are involved in business activities or have nothing common with business field. Our office will permanently hold exhibition of modern painters. I believe this will be additional stimulus both for artists and that part of society, who are interested in art. In this way, we will make environment more interesting for people working here and for our existing and potential clients. Thus, we are waiting for you here, where you can enjoy top level services and very pleasant environment. Do not forget – “Tbilisi Business Hub” – Trust and Honesty for Your Business.

February 13, 2017 #180

CBW interviewed Sopo Khachapuridze, PR Manager for Albatross, window and door installation service company, where she talked about her first and current job, her success path and opposed the fact that a woman may either succeed in career or care for family.

“At this stage, in many companies, including in big companies, decisionmaking positions are occupied by people, who are not familiar to PR or have incorrectly understood it” Photo/Temo Tbeteli

Successful Woman Should Balance Career With a Family -What are you by profession? -I am a musician by profession – a piano player, concertmaster, and a teacher. I have graduated from a Conservatoire. -Your first job place. -My career started at Image Center fashion house. I used to work as an assistant of a manager. The Company organized Georgia’s first beauty pageant, Miss Georgia, when I was working there. -Current job and position. -I am a PR manager for Albatross company, a manufacturer of windows and doors; Also Director for Rafting.ge company (extreme and adventure tourism), PR manager for Rafting Federation, PR manager for Canoe Federation. I have a spouse and three children. -Your first success. -I would not specify any of them. I have taken part in many successful projects, However I believe, first success is yet to come. -Project that you are proud of even today. -While working at Arena sports complex, I have organized a competition in sports photography. More than 90 competitors, including Georgian prominent and successful photographers – Badri Ketiladze, Lasha Kuprashvili, Tamar Kulumbegashvili, Giorgi Toronjadze and others have joined the project. -Field, where you would never work. -I think I would be good in all fields in PR departments. I just should be sure that a company has kind purposes and does not harm the society. -What factors make a person successful in your field? Besides knowledge, what special features are required? -Special skills of communication, goodwill, skills for establishing, maintaining and strengthening contacts. In general, PR spe-

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Special skills of communication, goodwill, skills for establishing, maintaining and strengthening contacts. In general, PR specialists should be a person of various interests

cialists should be a person of various interests. I supervise them and actually, a major part of my colleagues are such people – very talented people. -Is it possible to study PR in Georgia very well, or international knowledge and experience are necessary? -This field was not taught in Georgia, when I was a student. In the course of time this direction was incorporated into higher schools as a separate direction. Today, Georgia provides all opportunities for studying PR. However, international education ensures more openness and ability of broadening worldview. -Is PR perceived and understood in Georgia in its classical nature? -There are many deficiencies in this respect. At this stage, in many companies, including in big companies, decision-making positions are occupied by people, who are not familiar to PR or have incorrectly understood it. This category thinks that PR is a field that should not need to spend resources and many issues should be resolved in automatic regime, without much efforts. This field is being still developed and it will be regulated in 5-10 years definitely. -How easily do you settle emergency situations and take decisions? Do similar cases effect quality of working process? -Even in textbooks separate chapters are dedicated to PR technologies in emergency situations. I have experience in crisis situation management. At the beginning of my career emotions prevailed over me. I was stressed much and I had to take huge efforts to improve the situation. -Interesting episode from your life (business) that has changed your life. -My life and worldview was revised by the time spent in the USA. I was 16 in that period and I had to live in another hemisphere of

the earth, in a foreign country. I learned to do many things independently and I guessed that nothing is impossible. However, in that period I made sure and I think so even today that I cannot live in other country. Travel is an other aspect, but I choose Georgia for permanent residence. -If not this profession, which other field would you work in? -I was eager to become a journalist and I think I could be a journalist. -What are strong features of you, as a businesswoman? -My colleagues assure me that I manage to do many affairs in time, including family and business affairs. Moreover, I also manage to attend various events, while I am bad in time management by nature. I manage these two seemingly incompatible lines. I do not agree with consideration that a woman may either succeed in career or care for family. -What does your job place give you? What makes it interesting for you? -New people – this is huge wealth, the most valuable and interesting acquisition. I have been working for Atropos for several months and I can openly say that I have acquired many friends. -What factors create major discomfort in the working process? -If the superior cannot understand the nature and essence of business, then everything becomes invaluable and kills all stimulus. -Where do you see yourself after 20 years? -I plan to study DJ’s profession. Imagine a very large space and I at the DJ platform at my 60. This will be an additional hobby. As to business, I will invite you to the big office of my travel company Rafting.GE for a cup of coffee and we will talk about my plans for the next 20 years.

February 13, 2017 #180

BUDGET

n 2016 Government’s Reserve Fund spent 1 728 72655 GEL, based on resolutions of government’s administration and decrees of Georgian Prime Minister. A total of 61 resolutions and decrees were passed to transfer the mentioned funds. A major part of the mentioned funds were directed to healthcare sector – 35 million GEL, sports events were financed by more than 31.5 million GEL, culture events – more than 29.5 million GEL; subsidies on agriculture sector exceeded 24 million GEL. The smallest funds were directed to defense issues – about 253 000 GEL and civil equality issues – 300 000 GEL. Tourism and Entrepreneurship Support Government’s Reserve Fund financed National Tourism Administration by 5.5 million GEL in 2016. The tourism administration was to carry out autumn and winter complex marketing and advertising campaigns on behalf of Georgia. The decree on the funds transfer names one additional expenditure. Under this decree, 719 200 GEL was allocated from Regional Projects Implementation Fund to finance a part of price of flights to Mestia airport. Culture Events In 2016 Government’s Reserve Fund alloted 297 70637 GEL for financing culture events. A major part of these funds (22 824 887 GEL) was assigned for the Culture Development Investment Fund, almost one/fifth of the sum (4 404 512 GEL) was allocated for culture support program in regions. Comparatively less funds were transferred to Georgian Folklore State Center (282408 GEL). A total of 136 543 GEL was allocated for National Musical Center of Georgia and 128 199 GEL was directed to developing policy and programs management in culture and monuments protection field. Lesser finances were directed to Ilia Sukhishvili and Nino Ramishvili Georgian National Ballet (93 500 GEL), J. Kakhidze Tbilisi Music-Culture Center (60 397 GEL), Georgian Folk Song and Dance State Academic Ensemble – Erisioni (15 725 GEL) and Rustavi ensemble (14 092 GEL). The smallest amount was transferred to Basiani ensemble – 9 950 GEL. Independence Day We should separately discuss expenditures for marking Independence Day on May 26. For this purpose, Government’s Reserve Fund allocated 1 488 692.9 GEL. A major part of these funds was directed to the Government’s administration (435 678 GEL). The Government was to spend the mentioned finances on printing, advertising and official reception. Comparatively less finances were transferred to Public Broadcaster – 318 426 GEL for shooting solemn events in Tbilisi and Regions and organizing live broadcasting. 299 060 GEL was transferred to general staff of Georgian Armed Forces and civil office of Defense Ministry of Georgia. These funds were to be spent on technical issues for oath-taking ceremonies in Tbilisi and 5 regions of Georgia. Almost the same amount (295 124 GEL) was allocated to Ministry of Culture and Monuments Protection of Georgia for elaborating arts development and culture support programs for regions, as part of the May 26 events. According to government decree on the May 26 events, transfers of 110 405 GEL were allocated for local self-governments, while 30 000 GEL was directed for elaborating state policy and management of legal support for the country interests. Foreign Relations In 2016 Government’s Reserve Fund allocated 595 3741 GEL for events related to foreign relations. A major part of this sum (5 389 554 GEL) were spent on events related to European and EuroAtlantic structures, while remaining 564 187 GEL were spent on Foreign Ministry office and Georgian Embassy in Australia. 450 277 GEL was transferred to Foreign Ministry of Georgia for publishing promo articles, columns and materials in German newspapers (Süddeutsche zeitung, Die Welt, Frankfurter Allgemeine and Zeitung FAZ). A total of 113 910 GEL was transferred to Georgian Embassy in Australia. Decree indicating the transfer purpose concerns other issues. Government has passed 7 decrees for financing various events related to European and EuroAtlantic structures. As a result, more than 5 million

GELA BOCHIKASHVILI /ON.GE

Whereabouts of 172 872 655 GEL from Government’s Reserve Fund

GEL were allocated from Government’s Reserve Fund. A major part of this sum (2 756 859 GEL) was directed to the office of State Ministry for EuroAtlantic Integration. 1 683 254 GEL was allocated for consecutive and free implementation of EuroAtlantic Integration process and spent on purchase of consulting services frpom Cambre Associates. A total of 254 930 GEL was spent on Batumi international conference “European Way of Georgia” that was held on July 14-15, 2016. The remaining 818 675 GEL was directed to financing events as part of visit of North Atlantic Council (NAC) that was held in September in 2016. Government’s Reserve Fund transferred 2 137 442 GEL to Government’s administration for consecutive and free implementation of Georgia’s EuroAtlantic integration process. Expenditures for purchase of consulting services constituted 2 041 043 GEL, but decree N212 that substantiates purpose of the transfer, names 216 334 USD equivalent in GEL. The reserve fund also transferred 96 408 GEL to the Government for purchase of consulting services regarding visa-free regime with EU. Elections of 2016 Government’s Reserve Fund transferred 12 083 691 GEL to finance various election nneds. A major part (4 421 392 GEL) was allocated for conducting a runoff of ahead of schedule elections of governors of Akhaltsikhe City Hall and self-governed communities of Bolnisi and Kharagauli, as well as the parliamentary elections that was held on October 8, 2016. A total of 2 460 000 GEL was allocated for compensating expenditures taken by election participants during the runoff of parliamentary elections in October 2016. A total of 1461 666 GEL was allocated for financing representatives of election participant organizations and conducting elections. A total of 479 420 GEL of the mentioned sum was directed to snap elections of Gardabani municipality governor, 720 700 GEL was directed to financing midterm elections of boards of Gardabani, Kaspi, Tskaltubo, Ozur-

geti, Khobi and Zugididi municipalities on May 22, 2016. However, the decree names less sum – 1 200 120 GEL. The remaining 374 063 GEL was spent on October 8 parliamentary elections, training election staff and campaigns of election participant organizations. Expenditures on Sports For the purpose of Georgian sports promotion, Government’s Reserve Fund allocated 32 240 291 GEL. A part of the sum (14 796 829 GEL) was transferred to LEPL Georgian Football Development Fund for financing the expenditures of the 2016 state program for football development in Georgia. Over a half part of the sum (15 879 275 GEL) was spent on awards of athletes, coaches, doctors and other staff having won various events in 2015 and 2016. The smallest amount of 1 million GEL was equally shared to Georgian National Weightlifting Federation and Georgian National Wrestling Federation. This sum financed expenditures for conducting Young Weightlifters Championship 2016 in Tbilisi and the 2016 World Championship among Young Wrestlers. Religion Related Issues Government of Georgia has allocated 891 525 GEL for financing the Pontiff’s visit to Georgia and Sameba cathedral restoration works. Namely, 198 999 GEL was spent on organizing the Pontiff’s visit in Georgia. Required funds were transferred to Georgian President’s administration from Reserve Fund. Triple more amount (692 526 GEL) was transferred for restoring Sameba cathedral infrastructure damaged as a result of conflagration. Under the government resolution of May 5, 2016 the reserve fund was to allocate 3 737 400 GEL for Patriarchate of Georgia, but later the amount was reduced. Power Sector Government’s reserve fund alloted 4 596 324 GEL for financing power sector related issues in 2016. A major part of this sum (3 807 851 GEL) was a partial subsidization of electricity consumed by socially vulnerable population. Due funds were transferred to Ministry of

Labor, Health and Social Protection. The Reserve Fund directed 363 461 GEL to the office of Energy Ministry of Georgia for covering price of electricity consumed by Kakheti Region population. Subsidization of Agriculture Sector Various projects in agriculture sector were financed by 24 055 069 million GEL from the Reserve Fund. More than 20 million GEL was spent on vintage and grapes processing. 11 055 069 GEL was spent on vintage promotion measures, while 9 million GEL was spent on grapes purchase-processing. Agriculture projects management issues were financed by 3.5 million GEL from the Reserve Fund, while the remaining 0.5million GEL was directed to citrus picking, namely, one kilogram of nonstandard mandarin was subsidized by 10 Tetri for physical bodies registered as citrus growers in Ajara Autonomous Republic. Healthcare Sector The Reserve Fund transferred 35 million GEL to Ministry of Labor, Health and Social Protection as part of the universal healthcare program. Civil Equality Issues The office of Georgian State Minister for Reconciliation and Civil Equality received 300 000 GEL from the 2016 reserve fund. Government has passed two decrees for transferring due sums. One of the decrees, under which the office received 240 000 GEL, is not found in the Legislative Herald or on the Government website. The remaining 60 000 GEL were equally shared to the Vrastan and Gurjistan newspapers. Other Services Other services united those directions that could not be assigned to other fields. This category comprises expenditures for registration and evaluation of privatization facilities, rental of secretariat of investors board and funds transferred to International Center of Education.

BUSINESS

February 13, 2017 #180

Purses and Wallets Georgian Brand Gepherrini to Open Branding Shop in Kazakhstan Purses and wallets Georgian Brand Gepherrini opened the first branding shop in Almaat, Kazakhstan. The head of the company, Ilia Geperidze declared about the fact. According to Ilia Geperidze, the second shop will be opened in June in Astana, Kazakhstan in June, 2016. Along with opening the shops, the brand started producing wallets which will be sold in all the countries the brand sells purses. Currently, the company sells 15 diﬀerent models of wallets. The price ranges from 29 to 119 GEL.

HAND MADE

START-UP

May Transparent PursesStart-up of Three Friends and their main slogan is: #NoOneHasTheSame. We oﬀer you the interview with Magda Tsilosani. Who came up with an idea to name the brand? When we first saw our work- painted, transparent purses, we said all the words that would express our emotions. That’s why we decided to choose the name of the warmest month of Spring, May. What material are the purses made of? Our purses are made of organic glass. It is diﬀerent from normal glass because it contains plastic, which makes it sturdier. As for paintings on it, we use glass acryl which is waterproof.

May is a new Georgian start-up which appeared in September 2016 and oﬀers transparent, any size and shape handmade purses as well as earrings. The production is made

by three friends: Nino Zekalashvili, Nodo Dundua and Magda Tsilosani. They work on the design of the purses to make it as unique and original as possible

NEWS

BRANDING

Wine Thieves- A New Georgian Wine Brand on the Market

Kollektiv- The Way from International Relations to Branding Company

The company Wine Thieves has a history of only couple of months. However the coverage of the wine bottles has already caused some concern. The company distributes the market with diﬀerent wines from diﬀferent family marani. It is a natural wine and no additional substances are mixed with it. The vineyard of the company is located in Telavi municipality. Wines are made in pitcher with a traditional Georgian method.

Major Deal Made on Nikora Trade Bonds A major deal has been made on Nikora Trade bonds. About 200 bonds were sold through the socalled fixing instrument. Price for each bond marked 1040.55 USD. Total value of the deal constituted 208 110 USD. This is the largest deal made ever on Nikora Trade bonds. Bonds coded as $NKR01I are listed in B category. As reported, in March 2016 Nikora Trade placed 5 million USD bonds. Price per bond marked 1 000 USD. Placement was carried out by Galt&Taggart company. Maturity period of the bonds is 2 years and annual interest rate is 11%.

Buba Radiani is a graphic designer and few years ago, he refused to continue studying International Relations and chose to study branding field. After Tbilisi Art Academy, he continued his studies in London and gained a lot of work experience. He founded his own company Kollektiv with his friends and the company does not only work locally but on an international level. Tell us, where did you get an education? I am Buba Radiani. I graduated from Tbilisi State University with my bachelor in International Relations. I also graduated from Media art faculty at Tbilisi Art Academy. Afterwards, I continued studying in London College of Communication, with my MA Graphic branding and identity with the direction of branding. What is your profession? I am a graphic designer. Currently, I work in Tbilisi and London. I am a founder of design studio “Kollektiv” in Tbilisi and I collaborate with company Start Judge Gill in London. Tells us about your work experiences, where have you been employed? I used to work in M Group as a designer, as an art architect in Ads company ABK. During my 3 years stay in London, I worked with following design studios: Coley Porter Bell (London), BluemarlinBD (London), Leahy Brand Design (LBD London), Spritz Creative (London), Start Judge Gill (London). What is your most important start-up or a job? My current job is a newly launched company, Kollektiv, where we have a lot of interesting projects. We founded the company a year ago however the founders of the company started working on it much earlier. What are your future plans? We want to make the company bigger and develop it. Since we don’t collaborate only with local companies, we are planning to enter international markets in the future.

Where and how to buy May purses? Currently, we only have online sales. It is possible to call but customers usually contact with us via facebook. We have a possibility to send them pictures of diﬀerent alternatives, make sure the details based on what customers want and we make the purse in 2-3 days. They can also order exact painting they want to have on the purse. What is the advantage of May in terms of customer’s service? The customers are oﬀered free delivery service in Tbilisi. As for other cities and regions, we send them the items by post.

Hand-Made Chocolate On the Georgian Market A new, hand-made chocolate appeared on Georgian market. The idea of chocolate business belongs to 3 friends Nino Totladze, Irma Mesabishvili and Tamar Kakushadze and they came up with an idea during their trip few years ago. They started the business in 2016 and appeared on the market this year. “It is hard to get high quality chocolate on the market; our chocolate is hand-made without any additions. During preparation, we use the best quality Italian base chocolate and add them Georgian and Foreign brands production nuts and dried fruits”. ”Chocolaterie Suzette” is for people who think quality is important. The creator of the chocolate says that the name comes from French dessert and they came up with an idea while traveling in France. They already got an offer from Germany to export the chocolate and currently, there are negotiations concerning technical issues.

February 13, 2017 #180

t should be noted that these two companies were providing the mentioned services for state structures in previous years. Therefore, their decision seems very strange, because only Beeline has taken part in the tender. Georgian National Communication Commission (GNCC) forwarded a letter to all three mobile operators on conditions of the consolidated tender announced by State Pronouncement Agency. GNCC, as an independent regulatory commission, ensures supervision over electronic communications and broadcasting fields, provides competitive and just environment for authorized bodies and licensees, the commission members noted. “Based on the above-mentioned, the Commission has forwarded letters to LLC Magticom, LLC Geocell and LLC Mobitel, influential players on mobile communications market, and explained that the applicant companies would be examined on compliance with special obligations with the aim for ensuring competitive environment. On February 1, 2017 based on State Procurement Agency application, the Commission examined LLC Mobitel’s coverage in 3G/UMTS technology through drive test. The test comprises a zone of 260 kilometers (Tbilisi, Gori, Rustavi and related highways). The examination showed that LLC Mobitel network did not function in the mentioned zones with 3G/UMTS technology. Therefore, State Procurement agency was forwarded an answer, that, under GNCC

COMMUNICATION

conclusion, LLC Mobitel could not satisfy the tender conditions in the part of 3G/ UMTS technology services”, the Commission members explained. Beeline managers do not agree with GNCC arguments. The company satisfied all conditions of the consolidated tender, including in the part of 3G services, they noted. «Under tender conditions, it was not necessary to cover territory of Georgia by 3G technology. Magti and Geocell cannot provide 90% coverage either», Beeline representatives noted and said that they cover 90% of territory of Georgia by 2G, 3G and 4G technologies and in this way they satisfy the tender conditions. Despite these arguments, a state tender as announced repeatedly. The government commission will take a decision under specific requirements, Levan Razmadze, head of Procurement Agency noted. «They could not cover the parameters, 3G Internet, requested by documentation», Levan Razmadze noted and explained that the company had requested a license in December 2016, but it was not able to cover the mentioned zones. Naturally, developments around communications services raise certain doubts. Namely, this tender was to be quite interesting for Magti and Geocell and statistics of tenders of previous years prove this consideration. These two companies had taken part in all tenders, while this year Beeline also joined the tender and Magti and Geocell abstained from participation.

Therefore, there are real doubts that Magti and Geocell may have come to cartel collusion. Magti and Geocell knew about Beeline’s participation in direct purchase system. They also knew that Beeline could not provide the mentioned technical services, based on the existing market research. Consequently, if Magti and Geocell did not take part in the tender, the tender would fail and consequently, Beeline would be disqualified. As a result, Magti and Geocell could count that they would get rid of the competitor in

Under tender conditions, it was not necessary to cover territory of Georgia by 3G technology. Magti and Geocell cannot provide 90% coverage either», Beeline representatives noted and said that they cover 90% of territory of Georgia by 2G, 3G and 4G technologies and in this way they satisfy the tender conditions.

this way. Besides the above-mentioned, there are other real doubts that under this dishonest game, Magti and Geocell will fail tender before the Government revises the price policy. This signifies that Magti and Geocell, following cartel collusion, plan to make the Government raise tariﬀs artificially. Naturally, the abovementioned circumstances evidently violate legislation on competition and consequently, attempts for establishing competitive environment fail. Therefore, it is necessary that the state revise approaches and that GNCC carry out adequate regulatory policy, on the one hand, and State Procurement Agency eradicate the gaps that exist in regulations of consolidated tenders.

AGRO BUSINESS

Investment Opportunities In Georgia Aquaqulture In Georgia the aquaculture sector is growing rapidly, but currently only small amount of it’s potential is utilized and investors can develop vast amount of feasible projects. Easy and cheap access to clean mountainous water opens an opportunity to run profitable freshwater fish farming business with high quality output. The Georgian Black Sea shore is ideal for mussel and saltwater fish farming. Greenhouses Average farm size in Georgia is 1.55 ha and most of local farmers produce products on open-fields, which causes seasonality supply. Most agriculture products are cheap during harvesting season and quite expensive during non-harvesting season. During non-harvesting season Georgia imports some main products from neighboring countries (mainly from Turkey), such as tomatoes, cucumbers, onions, garlics, potatoes, egg-plants, belly peppers etc. Additionally, demand for diﬀerent greens and berries (blueberries, raspberries etc.), which aren’t quite traditional and Georgia produces only small quantities, is increasing yearly. Most local producers are plagued by prevalent inefficiencies in their production, caused by lack of know-how, adequate technology and capital. Apart from growing internal market, Georgia has an opportunity to export fresh vegetables/fruits to Middle East and Europe. Therefore there is a clear need for new modern greenhouses, which reduce dependence on seasonality and provide products during the whole year. Food Processing Government has acknowledged the food processing field as one of its top priority and nowadays it subsidizes that field, through Agricultural Projects Management Agency (APMA). With the increase of production, which is expected to grow due to currently undergoing new projects, this field will become more important. Nuts, citruses, apple, stone fruits and greens have the best processing potential nowadays. Wine and Spirits The diverse natural conditions of Georgia create the best environment for the development of high quality viticulture-winemaking. Georgia has a history of 8,000 years of continuous

Business Consulting Company

IRAKLI CHIKAVA Director

wine making tradition, evidence is found by numerous archaeological discoveries. In addition to 525 indigenous grape varieties there are many foreign ones, which showed high results in production and wine quality. Wine produced in Georgia is distinct with its unique and diverse flavors, rich buckets. Wine export was 22% of agricultural export in 2014 with a total value of 183 Million USD. In parallel with winemaking, the production of spirits is also advanced in Georgia. The main products are brandy and vodka. In 2014 the export of spirits reached 95 Million USD. Fresh and Mineral waters Georgian water is respected for its high quality and good taste. The export of fresh and mineral water reached 137 million USD, which is 17% of total agricultural export of Georgia. Brands like Borjomi, Sairme, Nabeghlavi are well known in different parts of the world, especially in post-Soviet countries. There are many mid and large scale springs whose licenses can be obtained from the Ministry of Environment and Natural Resources Protection of Georgia. Meat and Poultry There are many small farms in Georgia, which are managed by individual households. Because of the lack of modern and efficient approaches in breeding, species selection, resource management and in other factors, many of them just remain small household with small scale production. The demand on meat consumption in country has an increasing trend. Around 25% of beef, 50% of pork and 80% of poultry consumed in Georgia is an imported product. There is a need and capacity to build modern farms, to supply local market in the first stage and to distribute through the region as a next step. Farming in Georgia has many advantages, e.g. ecological clean environment, cheap land and labor, easy access to different resources and so on. Was prepared according to the information of Georgian National Investment Agency

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February 13, 2017 #180

WORLD NEWS

February 13, 2017 #180

Quotes

“ My attitude has “Merely the obtainment of the license doesn’t mean that McDonald’s Georgia is already built. We have much more serious work to do now. It is necessary to settle the legal matters”

Georgian businessman obtains license for opening McDonald’s in Armenia

resident of Coca-Cola Bottlers Georgia Ltd., Temur Chkonia, has obtained a license for opening McDonald’s in Armenia, Kommersant reports. In the businessman’s words, McDonald’s Georgia is already considered as McDonald’s partner and thus has an opportunity—based on a mutual contract— to enter a country which lacks this restaurant chain. According to Chkonia, the delegation of McDonald’s Georgia will visit Armenia on Tuesday. Within the framework of the visit, it will be decided where exactly the restaurant will be constructed, as well as issues related to the land allocation.

“Merely the obtainment of the license doesn’t mean that McDonald’s Georgia is already built. We have much more serious work to do now. It is necessary to settle the legal matters,” the businessman said. In his words, the direct construction of the restaurant will by all means start in Yerevan during the current year. At the initial stage it is planned to open 3-4 restaurants, the opening of one facility costing about 2,5-3 million euro, he said. The first McDonald’s Georgia was opened in Georgia in 1999. Currently, the chain is represented in Tbilisi, Kutaisi, Batumi and Zugdidi. In early September 2016, a new McDonald’s branch was also opened in Rustavi.

Russia Shows Why China Should Just Stop Burning Up Its Reserves

hina has wiped out about a quarter of the world’s heftiest foreign-currency stockpile over the past 18 months in its quest to keep the yuan stable. According to Commerzbank AG, such intervention is futile. Data Tuesday showed China’s foreign reserves slipped below $3 trillion in January, the first time they’ve breached that psychologically potent level in almost six years. Yet the experiences of some fellow BRICs show that drawing down the stockpile will probably have little eﬀect on the currency’s long-term fate, Hao Zhou, Commerzbank’s Singapore-based senior emerging-markets economist, wrote in a research note late Tuesday. While eﬀorts by Russia and Brazil in recent years might have cushioned the blow of currency declines, they couldn’t change the market’s dynamics. In Russia’s case, a collapse in oil prices and the imposition of economic sanctions over the Crimea crisis proved more

powerful drivers than the sale of a third of the country’s foreigncurrency hoard between April 2013 and March 2015. The ruble fell more than 50 percent versus the dollar in the period. Brazil similarly failed to arrest the real’s decline from the start of 2013 to the end of 2015, when its economy fell into what some termed an economic depression. The Latin America’s central bank used foreign currency swaps instead of tapping reserves to try and stem the real’s drop. “At the end of the day, fundamentals are still the key factor,” Hao said. “The yuan is under pressure to weaken due to the economy’s bumpy growth profile,” said Hao, who forecasts it will slip to 7.15 per dollar by the end of this year from current levels around 6.88. The yuan slumped 6.5 percent in 2016, its worst performance in more than 20 years. Intervention “has not changed the market expectations over yuan exchange rates,” he said.

always been, if you fall ﬂat on your face, at least you’re moving forward

”

Richard Branson

WB, Botas to Sign loan Agreement on TANAP The World Bank (WB) and Turkey’s Botas Petroleum Pipeline Corporation will sign a loan agreement for financing of the Trans Anatolian Natural Gas Pipeline (TANAP) project, the Turkish Ministry of Energy and Natural Resources said in a message on its website Feb. 8. The signing ceremony will take place today, on Feb. 8, at 14:00 (GMT +3 hours), according to the message. Berat Albayrak, Turkish minister of energy and natural resources, will also take part in the signing ceremony. On Jan. 16, the WB and Azerbaijan signed a loan agreement and a guarantee agreement on the TANAP project. The loan agreement was signed by Mercy Tembon, the WB regional director for the South Caucasus, and Afgan Isayev, head of the Southern Gas Corridor CJSC. The guarantee agreement was signed by the Azerbaijani Finance Minister Samir Sharifov and Mercy Tembon. The WB allocated $400 million to Azerbaijan for the implementation of the project. The loan repayment period is 30 years and a grace period is five years. The cost of the TANAP project is $8.5 billion. TANAP project envisages transportation of gas from Azerbaijan’s Shah Deniz field to the western borders of Turkey. The length of TANAP is 1,800 kilometers with the initial capacity of 16 billion cubic meters. Around six billion cubic meters of the gas will be delivered to Turkey and the remaining volume will be supplied to Europe.

Biggest gas project brings Azerbaijan $64M in 2016 Revenues of the State Oil Fund of Azerbaijan (SOFAZ) from the project to develop the Shah Deniz gas and condensate field totaled $2.506 billion from 2001 to January 1, 2017, SOFAZ told Trend. SOFAZ received $64 million from Shah Deniz project in 2016. However, SOFAZ has not received revenues from the Shah Deniz since June 2016 as Azerbaijan has been purchasing gas from the field in order to meet the excess demand in the domestic market. The field’s reserve is estimated at 1.2 trillion cubic meters of gas. A contract for development of the Shah Deniz oﬀshore field was signed on June 4, 1996. The shareholders in the contract are BP (operator - 28.8 percent), AzSD (10 percent), SGC Upstream (6.7 percent), Petronas (15.5 percent), Lukoil (10 percent), NIOC (10 percent) and TPAO (19 percent). As of Oct. 1, 2016, SOFAZ’s assets increased by 6.7 percent and amounted to $35.82 billion as compared to $33.57 billion in early 2016. SOFAZ was established in 1999 with assets of $271 million. Based on SOFAZ’s regulations, its funds may be used for construction and reconstruction of strategically important infrastructure facilities, as well as solving important national problems.

“The existing management of these companies, their operational policies and business plans will continue in accordance with their investment and growth strategies”

Turkey Plans Massive Transfer of Assets to State Wealth Fund

he Turkish government transferred its holdings in the country’s biggest bank by assets and a state-owned phone company to a new sovereign-wealth fund created to finance large infrastructure projects. The treasury’s stake in TC Ziraat Bankasi AS, oil and gas producer Turkiye Petrolleri AO, and a nearly 7 percent holding in phone operator Turk Telekomunikasyon AS are among assets that the fund will own, according to a decree in the Oﬃcial Gazette on Sunday. The government will also move its 51.1 percent stake in Turkiye Halk Bankasi AS and 49.1 percent in Turkish Airlines after regulatory approvals, according to a regulatory filing on Monday. “The existing management of these companies, their operational policies and business plans will continue in accordance with their investment and growth strategies,” Prime Minister Binali Yildirim said. His oﬃce will manage the wealth fund under a strategic investment plan to be approved by the cabinet, he said. The fund, approved by parliament in August, will use proceeds from the sale of assets to finance large infrastructure projects such as airports, seaports, roads and railroads, with Economy Minister Nihat Zeybekci saying the fund could eventually control businesses worth $200 billion. President Recep Tayyip Erdogan is seeking to boost economic growth after a series of terrorist attacks damaged consumer confidence and tourism, while Fitch Ratings last month became the last of the major credit ratings to cut the country’s debt to junk status. Political Control “The move is likely to increase political control over the companies,” said Wolfango Piccoli, co-president at Teneo Intelligence. “The government is currently struggling to finance a series of high-profile infrastructure projects;

Erdogan hopes these will boost his domestic prestige and enable him to consolidate his grip on power through the introduction of an executive presidential system with almost no checks or balances.” Appointments to the board include Yigit Bulut, a senior presidential adviser; Himmet Karadag, Borsa Istanbul Chairman and Chief Executive Oﬃcer; and Kerem Alkin and Oral Erdogan, who are both academics, according to the country’s trade registry. “Turkey’s most valuable state assets are being given to a specially authorized and unsupervised company,” said Cetin Osman Budak, a lawmaker and deputy chairman of the main opposition Republican People’s Party. “This is not a step for the benefit of the public.” Asset List The Treasury’s 73.6 percent stake in Borsa Istanbul AS, the owner of the country’s only stock exchange, holdings in miner ETI Maden Isletmeleri Genel Mudurlugu, tea producer Cay Isletmeleri Genel Mudurlugu, Postal Services Co. and cable TV and satellite operator Turksat Uydu Haberlesme ve Kablo tv Isletme AS have also been transferred to the fund. A facility of 3 billion liras ($810 million) held by Turkey’s Defense Industry Support Fund will also be given to the wealth fund for a period of three months, while several plots of lands in tourism regions in Antalya, Aydin and Izmir will be shifted to the fund. The government also moved its license in the national lottery and horse racing operations for the next 49 years to the fund last month. The government hired international banks in 2013 to sell 6.7 percent of its stake in Turk Telekom from its total ownership of 31.7 percent through a secondary public oﬀering, but the plan didn’t go through. The phone operator is 55 percent owned by Dubai-based Oger Telecom Ltd.

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February 13, 2017 #180

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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February 13, 2017 #180