Caucasus Business Week #185

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March 20, 2017 #185

March 20, 2017, Issue 185 - www.cbw.ge

Econo-mix Reinvestments Marked 32% in 2016 Total Investments

Economy Wine Materials Exports Prohibition Perspectives Pg. 4

King David Residences Creates 5-Star Lifestyle

Pg. 7

Noka Baindurashvili This PR Manager Names 3 Qualities Every Successful Entrepreneur Must Have Pg. 8 Country Fails to Curb Smuggling Intensification Smuggling scales are growing day after day in the country.

There is no joint statistics about volume of smuggled or undeclared products arrested by customs officers, but it is evident that Revenue Service exposes smuggling cases almost every day. Smugglers intensified criminal activities after January 2017, especially in tobacco products direction. In the first half of January, customs officers prevented illegal imports of 81 880 pieces of undeclared cigarettes, while from January to February 2017 customs officers exposed smugPg. 7 gling of 321 cargoes.

Cost of Living - Dream about Existence Value of the cost of living is one of the key indicators that determines social-economic development level of a country. Research and analysis of the cost of living is a relevant issue in both developing and developed economies.

According to recent information

by Geostat, the cost of living of a five-member family is 331.4 GEL (about 125 USD), 66.20 GEL for each member of the family.

The cost of living of an able-bodied male totaled 164 GEL.

Pg. 9

VESTUS - Georgia’s First Nano-Tech Construction Product

Pg. 6

Sigma Technology & Solutions has introduced VESTUS innovative product. At a special event, the company representatives talked about the product’s importance, its special characteristics and simplicity of use. Representatives of Ministries, Tbilisi City Hall, diplomatic corp and Georgia-based commerce chambers, banking sector and repair companies, experts and other interested bodies have attended the presentation.

VESTUS is a thermo, hydro and anti-corrosive innovative nanotech product that has no analogue in Georgia and the neighboring countries.

Pg. 9

2 GOVERNMENT

NEWSROOM Kumsishvili Discusses Ongoing Projects of ADB At the meeting the parties discussed ADB-supported longterm investment projects such as water supply systems rehabilitation and sewage network construction works, infrastructural projects, including road infratrcture, Anaklia beach and so on.

Georgian, Turkish Prime Ministers meet in Georgia’s region of Adjara Yildirim visited Batumi only for a couple of hours and discussed the dynamics of the development of the Georgian-Turkish strategic partnership.

ECONOMY

February Records Upturn in Cost of Living Cost of living grew in February.

The cost of living of an ablebodied male constituted168.10 GEL, up 1.8 GEL month on month and up 5.1 GEL year on year. According to Geostat, cost of living of an average family made up 282.10 GEL.

Georgia receives $94m in remittances in Feb 2017 Georgia received 17.9 percent more in remittances in February of 2017 than the same time period last year.

The majority of remittances came from Russia, the United States and Greece.

BANKING

Liberty Bank is the leader of the market by larization of credit portfolio The bank has not applied larization program, as mortgage loans, more than 100 000 GEL are issued in GEL. To note, 96% of the portfolio accounts for retail loans.

Basis Bank brought contactless sticker on the market Payment by Basis Bank sticker is available in any trade object, where contactless logo is obtained. You can make transactions without PIN code from 10 to 50 GEL through 24 hours, while the code is needed above 50 GEL.

BUSINESS

Georgia to Export 20 Tons of Bay-Leaves to Russia Several weeks ago the company signed a due agreement with Russian partners by support of Enterprise Europe Network under the Entrepreneurship Development Agency.”

Diesel and Petrol Imports Saw 3.3% Plunge in February In February 2017 Georgia imported 72.2 thousand tons of petrol and diesel, down 2.4 thousand tons (-3.3%) year on year, including petrol imports marked 36.1 thousand tons and diesel imports made up 36.1 thousand tons.

COMPANY

Schirnhofer to Open First Brand Store in Tbilisi Besides Tbilisi residents’ favorite sausages, the store will also trade in meat and cheese delicacies. Moreover, the store will also offer a wide option of bread baked by Austrian flour and technology on the spot.

March 20, 2017 #185

Government of Georgia Presents Key Areas of Rural Development in 2017-2020

O

n 16 March 2017, the Government of Georgia presented the national Strategy for Rural Development 2017-2020 and the Rural Development Action Plan 2017 to representatives of the national and local authorities, civil society organizations, diplomatic missions and international agencies.

The event was opened by the Prime Minister of Georgia, Giorgi Kvirikashvili, who highlighted the importance of a new approach to rural development grounded on the best European practices in this field.

Levan Davitashvili, Minister of Agriculture of Georgia, introduced key areas of the Rural Development Strategy 2017 – 2020 and the Action Plan 2017. „The implementation of the Strategy promotes local entrepreneurship and civil engagement while improving the quality of people’s life,” Minister Davitashvili said.

The adoption of the first ever Rural Development Strategy of Georgia was welcomed

by Janos Herman, Ambassador of the European Union to Georgia, and Niels Scott, Resident Coordinator of the United Nations in Georgia.

“The European Union will continue supporting rural development to open economic and social opportunities for people in every region of Georgia,” Ambassador Herman said.

The Rural Development Strategy 2017 – 2020 was adopted by the Government of Georgia in December 2016 with support from the European Union (EU), in cooperation with two United Nations agencies – United Nations Development Programme (UNDP) and Food and Agriculture Organization (FAO), under the EU-funded European Neighbourhood Programme for Agriculture and Rural Development (ENPARD).

The adoption of the Strategy

was followed by the establishment of an Interagency Coordination Council on rural development led by the Ministry of Agriculture with the support of the European Union (EU) and technical assistance from UNDP under the EU-funded ENPARD programme. The Council coordinates the implementation of the Strategy and considers specific initiatives in the regions of Georgia.

The European Union is supporting rural development in Georgia through its ENPARD Programme. Implemented since 2013 with a total budget of EUR 102 million, the main goal of ENPARD is to reduce rural poverty in Georgia.

The first phase of ENPARD in Georgia focused on developing the potential of agriculture. The second phase focuses on creating economic opportunities for rural population that go beyond agricultural activities. More information on ENPARD is available at: www.enpard.ge

Universal healthcare program promises improved services to beneficiaries

G

eorgia’s universal healthcare program will offer improved services and medical support to its beneficiaries, Georgian Minister of Health Davit Sergeenko said.

Introducing updates to the country-wide program, Sergeenko said target groups have been classified to ensure a more effective and qualitative use of the services under the state program.

The six target groups based on the new classification are: Socially vulnerable (those whose socioeconomic index is below the limit established by the Government of Georgia), pensioners, people with disabilities, children between 0-5, students and teachers.

High income citizens with

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The Editorial Board Follows Press Freedom Principles Publisher: LLC Caucasian Business Week - CBW Address: Aleksidze Street 3 Director: Levan Beglarishvili; Mob: +995 591 013936 Sales: Mob: +995 558 36 61 07 WWW.CBW.GE Email: caucasianbusiness@gmail.com

more than 40,000 GEL annual salary (around 32,000 people).

Middle-income citizens with less than 40,000 GEL annual salary (around 300,000 people) Low-income, self-employed and/or those who have irregular income (around 1,200,000 people).

Socially vulnerable people with 70,000 to 100,000 scores (those who have limited financial resources but cannot afford medical services – 102,000 people) Adults between 6-18 (around 500,000 people) Despite the ongoing changes, Sergeenko said child delivery will be financed for all the six target groups. Slight changes will apply to the treatment of

cancerous diseases.

It was back in 2013 when the Government of Georgia launched the Universal Healthcare Program aimed at satisfying the needs of those who could not afford private insurance.

Under the program, Georgian citizens could apply for six major blocks of medical services, such as the extended service of primary healthcare, urgent outpatient assistance, extended urgent hospitalization, planned surgeries, child delivery, and treatment of oncologic diseases.

The proposed changes to the universal healthcare program will enter into force as soon as the Government of Georgia approves it at the Government Meeting.

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

March 20, 2017 #185

PUBLICITY

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ECONO-MIX

Reinvestments Marked 32% in 2016 Total Investments

Levan Akhvlediani The executive director of Anaklia Development Consortium

Merab Janiashvili Economic Analyst

Azerbaijan ranks first with 35% (578 million USD) in terms of foreign direct investments, Turkey is second with 17% (121 million USD).

It should be noted that it is the second year Azerbaijan remains Georgia’s number one investor country.

Before, Turkey and the Netherlands were Georgia’s major investor countries.

F

oreign investments marked 1645 million USD in 2016, up 81 million USD compared to 2015 and down 113 million USD compared to 2014.

According to preliminary indicators, foreign direct investments volume in Georgia made up 1645 million USD in 2016, up 22% compared to preliminary indicators of 2015 and up 5% compared to specified indicators of 2015. Two years ago, foreign direct investment inflows marked 1 564 million USD, while the figure totaled 1 758 million USD in 2014.

According to Geostat information, in 2016 reinvestments made up 32% of total investments and this is the highest figure for the past years. For example, in 2012 reinvestments marked 13%, in 2013 – 28%, in 2014 – 18% and in 2015 – about 9%.

Ratio of three major investor countries in total foreign direct investments, according to the 2016 preliminary indicators, constituted 59%.

Azerbaijan ranks first with 35% (578 million USD) in terms of foreign direct investments, Turkey is second with 17% (121 million USD). It should be noted that it is the second year Azerbaijan remains Georgia’s number one investor country. Before, Turkey and the Netherlands were Georgia’s major investor countries.

Ratio of three major sectors (due to foreign direct investments) constituted 61% in 2016. Major investments were made in transport and communications sector – 645 million USD, 39% of total foreign direct investments. Power sector ranks second with 203 million USD and development sector is third with 163 million USD. Finance sector comes fourth with 136 million USD and processing industry is fifth with 120 million USD. It should be noted that it is the third year transport and communications sectors are most important directions in Georgia.

Power sector held leading positions in foreign direct investments in 2012-2013, but now the sector has moved to the second position. As to most unattractive sector for investors, agriculture and fishing rank

‘‘

A

naklia Development Consortium completed preparation of 50-year-plan of Anaklia Port. It includes evaluation of economic influence of the project, calculation of goods turnover, volume of investment and development phases.

At this stage, the project is considered by government commission. Anaklia Deep Sea Port concentrates on innovative engineer technologies, sparing expenses and effectiveness of port. The executive director of Anaklia Development Consortium Levan Akhvlediani, talks about the details of the topic with Businesscontract.

What does development stages include which is supposed to be implemented within the shortest time and what is being discussed currently?

We came up with a plan which included all stages of port development and handed to the government to discuss.

We worked on the plan with Dutch consultation Company Maritime & Transport Business Solutions (MTBS).

The document includes a lot of information concerning economic value and what port will create step by step and, how many jobs it will add to the market and what kind of infrastructure will be created and how much investment it is in general.

You mentioned an economic value; can you share exact data with us, what numbers are we talking about?

We talk about hundreds of USD value after it starts operating, of course in a long-term plan. It is about 60 million USD. It is a large-scale project and it will create 60 billion USD economic values.

What plans do you have in job sector, are there any special conditions? What is the strategy of consortium?

This direction is vastly discussed in the document and there is a analyzed data presented concerning how many potential jobs port will create. For example, on 2020, there will be around 2000 jobs created on a Georgian scale.

In a while, this amount will reach up to 5000. However, in the 9th phase, it will increase even more and there will be 19 000 jobs available in general.

What volume of cargo are you going to let pass by in the first phase?

In 2016, Georgian ports let 330 containers pass by. The growth of numbers of containers is directly connected to the macroeconomic index not only in Georgia but in our region because our ports are connected to Azerbaijan, Armenia and the part of central Asia market.

When modernization of railway and highway construction is completed, Georgian corridor will become very competitive with Baltic countries and Russian corridors.

‘‘

Anaklia Port to Create 60 Billion Economic Value in 40 Years

March 20, 2017 #185

first in this category in 2016. Last year FDI inflows to the sector marked only 10 million USD, down 5 million USD compared to 2015 and down 2 million USD compared to 2013-2014 indicators.

As to the fourth quarter of 2016, according to preliminary report, FDI inflows in the fourth quarter of 2016 constituted 330 million USD, up 23% compared to preliminary indicators of the fourth quarter of 2015 and up 1% compared to specified indicators of the same period.

Ratio of three major sectors (due to FDI inflows) made up 75% in the fourth quarter of 2016. Major foreign direct investments were made in transport and communication sectors and the figure made up 128 million USD, 39% in total FDI inflows.

Power sector ranks second with 63 million USD and development sector is third with 58 million USD. Preliminary indicators of the first, second and third quarters of 2016 have been corrected due to policy developed by Geostat for examination of statistical information (Based on regular examination principle) as a result of specification of indicators by respondents/administrative sources. Specified indicators of 2016 will be published on August 15, 2017.

It is interesting that over past 3 years FDI inflows have exceeded 1.5 million USD and this is a radically improved tendency after 2012-2013 years, when investment inflows could not exceed 1 billion USD throughout the year. Despite improved situation in foreign direct investments, Georgia’s economic growth pace declines year after year, over the past 3 years. The figure dropped to 2.2% in 2016.

As a result, myths have failed as if 2 billion USD FDI inflows could grow state economy in two-digit figures. Naturally, foreign direct investments play important role in state economy development. At the same time, it is evident that only FDI inflows cannot ensure economic growth. It is more important in which sectors these investments are made and what is the volume of financial products.

“We were working jointly with Rustavi Azot and approved a large project. Its objective was to normalize situation with financial components. Agreement conditions were not fulfilled and we have decided to halt financing process. There were several reasons and global market dynamics was the key one.

We know the company very well, but we does not know what will happen in the future”.

Bruno Balvanera EBRD regional director

March 20, 2017 #185

PUBLICITY

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King David Residences Creates 5-Star Lifestyle NUTSA GALUMASHVILI

King David creates a five star lifestyle within exceptionally elegant residential and business towers with beautifully designed amenity spaces organized enticingly as multistory urban resort and exclusive collection of specially-designed services.

The first Condominium-type multifunctional complex strategically located on a hill overlooking the Queen Tamar Bridge, next to Heroes Square where four of Tbilisi’s main avenues from varying districts come together, has reached the finish line of construction works. The project worth 70 million USD investments has created a precedent of skyscraper construction in Tbilisi and laid a foundation of five-star lifestyle. The complex is shaping new standards on Georgian real estate market.

When developing the project concept, we made focus on establishing an entirely new living standards in Georgia says Nini Mariamidze head of marketing department of the complex.

Infrastructure occupies almost 40% of total space of this project, which unites two independent buildings – 31-storied and 19-storied towers. Higher Tower King David Residences will include residential spaces, while lower tower Kind David Business Center will include A-class business center. A hotel will be located on the 2 last floors of Kind David Business Centre.

Towers are interconnected by 6 floors and a major part of infrastructure is located on these floors , including a swimming pool, spa and fitness centers, beauty salons, open terrace garden with children playground and healthy food cafe, restaurant, cafeteria, children room, event hall, lobby for residents with a bar and a car parking zone. A 5-star restaurant with 360-degree panoramic views will be located on the last 31st floor.

The complex has already started inviting tourists to see these views. If you have not enjoyed picturesque views from Kind David, then you should schedule a tour to King David as soon as possible says Keti Adeishvili director of Sales and Marketing.

This is a hotel-type complex with best panoramic views to Tbilisi and a full package of services that enables residents to work, get entertained and relax without leaving the complex.

Tbilisi’s most luxury residences cannot remain unnoticeable in our city. Skyscraper erected on a hill in the center of Tbilisi unites two remarkable towers with picturesque architecture

KING DAVID

and it become a benchmark for Tbilisi skyscrapers and the first international success of Kind David also proves this.

The company has taken part in European part of one of the most prestigious annual real estate competitions - International Property Awards. The submitted projects were assessed by distinguished experts of the world’s real estate field. These experts have conferred a 5-star classification to King David and transmitted European Property Award in the nomination of Best Mixed-use Development Georgia. This signifies Kind David was recognized as the best multi-functional complex in Georgia.

“

The complex has already started inviting tourists to see these views. If you have not enjoyed picturesque views from Kind David, then you should schedule a tour to King David as soon as possible

“

Construction works started several years ago and the process has attained a final phase. The complex will be put into exploitation in July 2017. Structure works have been already finished and indoor works are being carried out in lobby, halls and corridors. The concept of King David is for successful and busy people that value time and quality of life. In the space

March 20, 2017 #185

exclusively created for them, all conditions have been created for life, doing business, entertainment and relaxation.

Living at King David complex creates a new reality in Tbilisi that breaks all existing standards and stereotypes and shapes a new lifestyle. Royal-style residencies, with stained-glass views, high ceiling, 5-star hotel services make every minute unforgettable at the complex.

One of the most important advantages of the complex is its high-quality construction, as well as its fire security system. In addition, the foundation of the complex was methodically inspected by Georgian and international experts several times.

The last inspection of complex was carried out in October 2015 and received a seismic rating of 9B. Another interesting feature of the complex is that it boasts an additional source of power. In the event of a power outage in the city, both towers will have uninterrupted power supply.

The complex will also have a water reservoir in the case of a water supply disruption. It should also be noted that the project meets one of the greatest challenges of the 21st century – the complex is exceptionally energy-efficient. The façade is composed of triplex glass-packets of Guardian glass, produced by the famed American company ‘Guardian’. The glass-packets are ideal all-year-round for preserving heat and cold.

Now is a good time to buy King David offers a special opportunity to interested parties in the form of Easter Offer. Namely, King David simplifies residency acquisition terms and cuts the primary installation amount by 10%. Special offer runs for specific apartments and these terms are applicable through April 30, 2017. The prices for 1 sq. meter of the residential apartments will start from $1,500

ECONOMY

March 20, 2017 #185

Wine Materials Exports Prohibition Perspectives

Country Fails to Curb Smuggling Intensification Smuggling scales are growing day after day in the country. There is no joint statistics about volume of smuggled or undeclared products arrested by customs officers, but it is evident that Revenue Service exposes smuggling cases almost every day.

Smugglers intensified criminal activities after January 2017, especially in tobacco products direction. In the first half of January, customs officers prevented illegal imports of 81 880 pieces of undeclared cigarettes, while from January to February 2017 customs officers exposed smuggling of 321 cargoes. Besides tobacco products, smuggling of strong drinks and jewelry has also increased. Only in February, Revenue Service prevented imports of 21 992 GEL undeclared golden ware.

According to experts, growing scales of smuggling is directly related to a growth in excise tax rate on various products in January, 2017. Akaki Chargeishvili, expert in economics and law, says that even in the previous year there were expectations that smuggling scales would jump up.

«First of all, extreme raising of excise tax rate has grown smuggling scales. Starting January 1, 2017, Revenue Service and Finance Ministry investigation department have exposed several facts in both cigarette and strong drinks directions. Naturally, all these processes were provoked by growth in excise tax rate. When discussing excise tax rate growth issues in 2016, experts and specialists were making forecasts that excise tax rate upturn on specific products would enhance smuggling risks.

Consequently, facts exposed by special services prove that excise tax rate growth have provoked the mentioned processes to a certain degree.

On the other hand, it is very good that we have due information and we see that investigation services are taking certain steps in this direction. As to other products with the same excise tax rate, but growing smuggling scales anyway, for example, goldware, this signifies that the demand for gold is growing on domestic market and therefore efforts for illegal imports of gold has also risen. In this situation it is necessary to carry out certain research work on where, in which segment and in which specific direction the demand for gold has increased on the consumer market, or who needs gold more and what factors have preconditioned this situation.

Therefore, in this way we will be able to forecast where and which segment records an upturn in demand. We, as the government , will be able to analyze the situation.

This signifies it is necessary to explore the ground and to prevent dishonest facts through analysis of this specific group, Chargeishvili said.

Facts exposed by Revenue Service prove that the black market occupies a certain place in the economy, he said.

«We have exposed undeclared products at customs checkpoints and this signifies the black market occupies a certain ratio in our economy. This threat and risk exists in all countries, but it is necessary to conduct research works. Taxes should be adequate and acceptable for economy and business every time», Chargeishvili said.

AYFB vice president Paata Bairakhtari does not refuse that increased smuggling scales was provoked by raised excise tax rate.

«When excise tax rate growth was announced, I was one of the first ones saying that excise tax rate growth in similar scales we would bring serious risks. We had samples of similar risks in the recent past and regretfully we have not taken into account those samples. When Zurab Noghaideli’s government rose cigarette excise taxes in similar scales (in that period excise tax rose from 40 Tetri to 90 Tetri), we received a huge inflow of smuggled cigarettes. In that period, the black market of tobacco increased so much that legal business was led to the verge of destruction. The then government realized the existing threats timely and lowered excise tax rate from 90 Tetri to 60 Tetri. The Government managed to curb smuggling in this way in that period. Today our Revenue Service genuinely performs excellently, but smuggling risks cannot be neutralized entirely because of far lower tariffs on cigarettes in neighboring countries and loyal character of our legislation. To be precise, there are so unimportant sanctions against smuggling that criminals find it worthy to take risks despite available failure at customs checkpoints», Bairakhtari said.

The black market exists even today, but in far smaller scales, he added.

‘Revenue Service performs at a high level and many exposed crimes prove this consideration, but this is an ordinary human resource that cannot control all bodies crossing borders. To be precise, when crossing border, individuals are examined at random or on the ground of intelliegence information and this aspect gives chance to smugglers to deliver undeclared products within the country.

We should suppose that when several tens of smuggled cargoes are exposed, there may be also separate cases when smugglers manage to deliver undeclared products into the country. Regretfully, it is doubtless that there are smuggled products on Georgian market, even in small volumes and this consideration is proved by intensified illegal sales exposed by Finance Ministry», Bairakhtari noted.

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“ We are not working on the bill. The bill is being developed

by Government.

The working process will clarify what and how will be banned.

Tapped wines are exported to several countries, but it is difficult to control how many bottles are manufactured.

If the bill is approved, falsification risks will be reduced

“

We have exposed undeclared products at customs checkpoints and this signifies the black market occupies a certain ratio in our economy.

This threat and risk exists in all countries, but it is necessary to conduct research works. Taxes should be adequate and acceptable for economy and business every time.

Government of Georgia is developing a bill on forbidding wine materials exports under the pretext of preventing Georgian wines falsification on foreign markets.

Government has also submitted specific facts of adulteration.

Namely, Sakpatenti continues exploring the issue of halted sales of 800 bottles of Kindzmarauli wine on Russian market.

Georgian wines are mostly falsified in Baltic Countries and Russia, the winemaking company managers noted.

The Caucasus Business Week (CBW) has examined in which countries Georgian wine materials exports will be banned and what factors have preconditioned this initiative.

Otar Danelia, head of the parliament’s agrarian committee, says that Government continues working on wine materials exports issues and the due bill is being developed by National Wine Agency.

«I know there is a certain initiative around this issue. Supposedly, National Wine Agency is working on the issue.

Our committee is not working on this bill. We have information that falsification risks grow on exports markets. For the purpose of protection of our brands and maintenance of quality of our wines, I believe it will be a positive decision to adopt this bill. National Wine Agency should also submit due arguments», Danelia noted.

Georgian wine materials are exported to several countries. National Wine Agency has examined these aspects comprehensively and analysis has been prepared on the ground of the mentioned materials.

This initiative is also based on the mentioned analysis.

Giorgi Samanishvili, head of National Wine Agency, says that wine materials exports prohibition is only an initiative and refrained from making detailed comments. The agency is working on hundreds of ideas and only final results matter. “We are not working on the bill. The bill is being developed by Government.

The working process will clarify what and how will be banned”, Samanishvili said.

Tapped wines are exported to several countries, but it is difficult to control how many bottles are manufactured. If the bill is approved, falsification risks will be reduced, Samanishvili added.

How frequently are Georgian wines falsified? Nikoloz Gogilidze, director of National Intellectual Property Center, noted that currently 800 bottles of Kindzmarauli have been seized in Russia and the office is performing appropriate procedures. Georgian wines indications of origin are frequently falsified in Russia and Baltic countries, he noted.

“Falsification always happens, but we permanently carry out registration procedures in countries, which are not members of international agreements and where international agreements do not provide protection guarantees. Azer-

baijan and China are not members of any international agreement and therefore, we are entitled to control all products in these countries, including Chacha and Sulguni cheese”, Gogilidze said.

Our company has not suffered from falsification problems. The Authorities should set strict control over exports products, including on wine materials, to reduce Georgian wines adulteration cases on exports markets, Nutsa Abramishvili, director general for Schuchmann Wines Georgia winemaking company, noted.

«Our company has not suffered from falsification cases on any exports markets.

Recently, the Government was talking about a wine tracking program with the aim to shape a scheme of lots. Under the program, a 12-digit code would simplify the tracking of adulterated wines on this or that exports market. I do not know whether this program has come into force. Supposedly, this program was not launched. Currently, an only working mechanism implies private sector’s contacts with Sakpatenti», Nutsa Abramishvili noted.

It is necessary to patent Georgian wines, their brands and then expand geographical area so as Georgia have access to this or that market and protect Georgia wine’s rights, Nutsa Abramishvili pointed out.

«Falsification signs are frequently met in Post-Soviet countries, where bureaucracy and shady economy prevail. Therefore, I believe this issue cannot be resolved in a simple way. An only mechanism is to protect the brand at Sakpatenti», Abramishvili said.

Currently, it is difficult to preliminarily determine who use these materials for this or that purpose. Private sector should balance this aspect by cooperating with strong partners on various markets., Abramishvili noted.

Zura Ramazashvili, chairman of Telavi Wine Cellar supervisory board, noted that Georgian indications of origin are frequently misused on exports markets.

Therefore, government initiative will prevent them to use these names. I do not have detailed information about government plans and therefore, I cannot talk about details, Ramazashvili added.

“We should work with specific countries so as they ban a misuse of Georgian appellations. I believe we should work in this direction», Ramazashvili said.

Lado Uzunashvili, founder of Mukado Wines winemaking company said that he does not have detailed information on government plans in this respect and therefore, he refrains from making specific comments. However, he added that all efforts should be directed to preventing falsification.

«This is a good initiative, but I believe qualitative control within winemaking companies is a more efficient mechanism», Uzunashvili noted.

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PR PERSON

March 20, 2017 #185

This PR Manager Names 3 Qualities Every Successful Entrepreneur Must Have

Interview with Noka Baindurashvili, PR consultant for ElitElectronics and Tegeta Motors.

- What is your profession?

- I am a specialist of Public Relations.

- Your first job place.

- My career started at Tbilisi City Hall and Council information office. I was a second-year student in that period.

- Current job place and position.

- Currently I work as a PR consultant for two major companies – ElitElectronics and Tegeta Motors. I am also head of marketing and sales department at Rodos Construction Company.

-Your first success.

- My fist success and career breakthrough is related to Sarke advertising company, where I spent excellent years in my career, because I have taken part in many important and interesting projects.

- Business, project that you take pride in even today.

- For the past years I have worked on a huge number of projects, including charity, commercial, state or social responsibility projects. Kutaisi Rehabilitation Project was one of the most important and serious projects. I was working with very interesting people as part of the project. We also carried out a very good project in autumn 2016 – Tegeta Motors’ social Campaign - # Don’t Smoke around Me. - The field where you would work never.

- I think I would never work as an accountant.

- What makes a person successful in your field? Besides knowledge, what special features are required?

- Interpersonal skills, diplomacy and valu-

“

Sense of responsibility, teamwork skills, interpersonal skills and purposefulness.

Overcoming difficulties and finishing undertaken business are crucially important factors for me.

“Today everybody realizes Public Relations is the must”

able analysis of situation are important aspects for attaining success.

- Is it possible in Georgia to study PR very well, or international knowledge and experience are necessary anyway?

- I believe this is available. Today this profession is very popular and in-demand direction in Georgia. Therefore, many educational centers and higher schools provide courses in this field. We also have professional specialists, who teach this subject in various institutions. At the same time, besides theoretical knowledge, practical experience and skills are also of crucial importance for shaping a good specialist.

- Is PR perceived and understood in Georgia in its classical nature?

- We have made huge advancements in this respect. 17 years ago almost nobody knew about this profession. In that period Public Relations courses were introduced at higher schools and business companies.

Today everybody realizes Public Relations is the must. Both valuable informative promotion and public opinion on business companies are very important.

- How easily can you resolve emergency situations and take decisions?

Do similar cases affect quality of working process?

- I have worked on many crisis cases and therefore I can say that this direction makes my profession more interesting.

Management of any crisis situation is simplified, when you have comprehensive information and make proper analysis of the existing situation.

- Interesting episode that has changed your life.

- National exams have changed my life. I was eager to study law and I was getting ready for that. I was member of Association of Young Lawyers and I had decided to continue career in this field. But the family suggested me to enter PR faculty and to it study for one year. Having finished the first year, I realized this was my profession and I was not interested in law any more.

- If not this profession, which field would you work in?

- I like my profession so much that I cannot imagine where I would work elsewhere.

- What are your strong personal features?

- Sense of responsibility, teamwork skills, interpersonal skills and purposefulness.

Overcoming difficulties and finishing undertaken business are crucially important factors for me.

- What does the employer company give you? What makes it interesting for you?

- As I noted above, I have been working for several companies and this factor makes my job more interesting and important.

- What makes major discomfort in working process?

- Lack of information. Therefore, I always try to obtain full information in all issues.

- Where do you see yourself after 20 years?

- I think I will not change the field. I believe I will be making something big and important author project.

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March 20, 2017 #185

Cost of Living - Dream about Existence Value of the cost of living is one of the key indicators that determines social-economic development level of a country. Research and analysis of the cost of living is a relevant issue in both developing and developed economies.

WWW.BFM.GE

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ccording to recent information by Geostat, the cost of living of a fivemember family is 331.4 GEL (about 125 USD), 66.20 GEL for each member of the family.

The cost of living of an able-bodied male totaled 164 GEL. Cost of living is a conditional benchmark that reflects minimum value for physical existence of a family or an individual.

Cost of living determined by Geostat for families is as follows for the month of January: cost of living for an able-bodied male — 166.3 GEL; an averaged consumer — 174.3 GEL, two-member family — 235 GEL; three-member family — 265 GEL; four-member family — 294 GEL, five-member family — 331.4 GEL, six-member family — 391 GEL. Cost of living determined by Geostat differs due to months, because prices of products and services vary due to seasons.

Geostat does not determine cost of living due to age category, while similar information would be important for determining a minimum pension amount. Cost of living of aged people should also include medication costs.

This is important information for determining their pensions.

Today the pension amount is 180 GEL. Geostat calculates the cost of living under the decree passed by Georgian Health Minister in 2003.

Cost of living is calculated due to food basket. Consequently, other expenditures are not included in it (electricity, natural gas, water supply, transport costs).

In Georgia the cost of living is calculated on the ground of minimum food basket. According to the method for calculation of an able-bodied male’s cost of living by Geostat, the mentioned food basket includes a minimum volume of food, its elements and minimum volume of calories that are necessary for normal life and working capacity of an ablebodied male. The minimum food basket of an able-bodied male consists of 40 products and totals 2300 kilo-calories. However, it should be noted that, according to specialists, a daily consumption should include 2500 kilo-calories and food products should be also diversified.

Because of changes in cost of living calculation methodology, active discussions are being carried out and everybody agrees that calculation of the mentioned index in this form is a quite outdated and evil practice, however, it is far perspective to resolve the mentioned problem.

It should be also noted that unbiased definition of minimum food basket and cost of living do not depend on financial potential of a country. Determining a real cost of living does not imply urgent change in social packages. Cost of living implies the benchmark according to which the Government should correct social policy time to time.

When talking about peculiarities of calculating cost of living, it should be noted that the United National Movement seemed to be prioritizing changes in the existing methodology for improving social equality and living condition of population, but it would not be exaggerated to say that their social policy, in most cases, was of mock character and remained far from essential recovery of social policy.

This consideration is proved by approaches related to cost of living calculation. Namely, for many years, from 1997 to 2003, cost of living was growing and the highest figure was registered in 2003 (130.7 GEL). The next year the figure shrank 1.6 times because of reduction of energetic value of the food basket products and after expensive products were replaced by comparatively cheaper products.

Reduction of food basket value resulted in contraction in value of cost of living of an able-bodied male. It is worth noting that before 2003 the daily norm of cost of living was about 2500 kilo-calories, while after 2003 the figure marked 2300 kilo-calories.

Naturally, similar reduction in cost of living would considerably lower poverty level, but this effect was achieved by not improvement of living conditions of our citizens, by through artificial lowering the poverty benchmark.

It should be also noted that, due to value of minimum food basket, ratio of food expenditures in cost of living has been represented in 70/30 proportion. 70% of total volume of the food basket is recorded for food that is necessary for physical existence, while other needs constitute 30%.

Contemporary experience suggests that, in general, along with improvement of living conditions in the world, determination of proportions in this way is a quite outdated practice and in many European countries this proportion frequently makes up 60/40 and 50/50. Naturally, it is necessary to recalculate the mentioned proportions to really determine real costs for decent life of an individual, not for only physical existence.

The Georgian reality suggests that the statistics office should replace the exiting methodology by modern calculation standards, because determination of real cost of living will conceptually replace social policy and the benchmark for issuing pension or minimum

Cost of living determined

by Geostat for families is as follows for the month of January: cost of living for an able-bodied male - 166.3 GEL; an averaged consumer 174.3 GEL, twomember family - 235 GEL; threemember family - 265 GEL; fourmember family - 294 GEL, fivemember family 331.4 GEL, sixmember family - 391 GEL. social allowances will be higher than today. Naturally, it is difficult to name the specific number how much cost of living must be, but this is a technical issue and various parties should be involved in this process.

It should be stressed that taking into account the mentioned gaps in calculation methodology, current indicators of cost of living is a self-deceit and current situation in the country is very heavy. Consequently, we should take into account the existing reality and precise amount for decent life of our citizens should be calculated.

Moreover, it is also unacceptable to protract an eradication of methodological errors. Only political will is required to resolve this issue. Consequently, it may be said that determination of real cost of living is not the state interest, because the existing social policy will be turned upside down. Even more so, almost all political parties pledge in preelection periods that they will revise the existing methodology of calculation of cost of living.

Sigma Technology & Solutions Introduces VESTUS, Georgia’s First Nano-Tech Construction Product

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igma Technology & Solutions has introduced VESTUS innovative product. At a special event, the company representatives talked about the product’s importance, its special characteristics and simplicity of use.

Representatives of Ministries, Tbilisi City Hall, diplomatic corp and Georgia-based commerce chambers, banking sector and repair companies, experts and other interested bodies have attended the presentation.

VESTUS is a thermo, hydro and anti-corrosive innovative nano-tech product that has no analogue in Georgia and the neighboring countries. This product was created through NASA technologies. It is a heat-insulating material and is used as a thermo barrier. Its main characteristics are: simplicity in installation, low price and long-term exploitation, Giorgi Tsintsadze, co-founder and chief executive director of Sigma Technology & Solutions, noted.

The event participants also talked about necessity of use of VESTUS, the first Georgian nano-tech construction product for facades, safety of buildings, in construction process, installation of various components and pipelines.

Tbilisi Vice Mayor Irakli Lekvinadze positively appraised the enterprise inauguration and noted: «This is a very important fact, but it is a more important event, when an enterprise is based on innovative technologies and it has exports potential too. At the same time, a new enterprise creates new job places and state budget transfers also grow».

The company manufactures a new product in Georgia and also enjoys exclusive rights for exports to the neighboring countries. As to products, it has been created by a special formula. It is important that heat-insulating surface and structure are different. This is nano technology – small-sized micro-spheres of various materials, including glass, ceramic aluminum and so on that are mixed with stabilizers and is subject to stretching and resilience.

At a glance, it is a paint, but thanks to pigmentation, it may be used as the last layer - hydrobonder. The product’s advantage consists in its simplicity that provides at least 16-year guarantee of a building structure. For the first time, VESTUS was used by the American on the Moon, for landing a special device. Even today this product is used for covering spacecrafts. It is thick, but light, at the same time.

«It is very important that the new company is entering Georgian market that manufactures energy effective nano-tech construction material. This factor will promote environment protection principles and green business development in the country», Ekaterine Bendeliani, head of PR department of Ministry of Environment Protection, said.

The presentation ended by performance of musicians Nino Katamadze and Sasha Freed.

Sigma Technology&Solutions was founded by Georgian capital and it has been operating for several years. The company is oriented on imports and establishment of construction technologies on Georgian market. It makes investments domestically and does not violate energy safety norms in the country.

Only extra class raw materials are used in production that satisfy international standards.

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BUSINESS

March 20, 2017 #185

Oetinger, N1 Bavarian Beer is in Georgia The spring arrived and drinking beer became far more pleasant in a warm weather.

Beer fans traditionally are expecting novelties. The first one this year is Oetinger.

Oetinger, a real Bavarian Beer has been brewed since 1731 with strict observance of the German Beer Purity Law. The history proved that in Germany Oetinger is the most consumed Bavarian beer. Now it can be enjoyed by Georgian beer fans as well.

Unique combination of light color malt, aromatic hop and soft water creates transparent, golden liquid, which along with various flavors bears higher than average bitterness.

Enjoy it!

FARMER

BANK

PASHA Bank to partner the international business forum by BIA Here the interested parties will present their business initiatives in order to attract financing, search for new export channels and set new business contacts.

The welcome speech will be delivered by Mr. Dimitri Kumsishvili, Vice Prime Minister of Georgia. Mr. Shahin Mammadov CEO and Chairman of the board of Directors at PASHA Bank will speak about the Georgian corporate market from the viewpoint of commercial banks.

Among the speakers will be: - Mr. Giorgi Cherkezishvili, Deputy Minister of Economy and Sustainable Development of Georgia - Mr. Zurab Alavidze, Minister of Regional Development and Infrastructure of Georgia - Mr. Bruno Balvanera, Director for Caucasus, Moldova and Belarus, EBRD - Ms. Mercy Tembon,

On March 20th BIA Forum ‘Georgian Economy Prospects and Challenges’ takes place in Radisson Blu Iveria hotel. PASHA Bank is the partner of the event. This forum will bring together more than 300 top executives from business community, the representatives of local government and international organizations. The forum aims at facilitating a communication platform between foreign investors

and local companies and opens opportunities for both local and international businesses. Shop Fest and B2B meetings will be held in parallel with the forum.

Shop Fest gives a good opportunity to participant companies to showcase their products/services, attract new connections and make deals with event-exclusive terms and prices.

B2B meetings will bring together the representatives of local businesses and potential foreign investors.

NEWS

STARTUP

Georgian Beer Company to Buy Fruits from Farmers

Eurasian Mobile Challenge Winner Treepex Presented at Mobile World Congress

In 2017 Georgian Beer Company will open a fruits reception-processing center on the brewery territory.

Georgian Beer Company has recently launched natural juices business.

Businessman Tsezar Chocheli told BusinessContract that on Zedazeni brewery territory farmers will bring their fruits and the company will produce natural juices starting autumn 2017.

Georgian Juice to Sell in the US in April Bio product company produced rosehip juice will be sent to the state of Georgia, US at the end of the month.

As the head of the company, Merab Abashidze declared to Businesscontract, the first container has already been sent. The company gained a certificate of US organic to export its product to the US. Producing rosehip juice is a family business of Bio Product Company. The product is made for diabetic people.

With the support of telecommunications and new technologies company, Beeline, Georgian startups were presented at Mobile World Congress with their innovative projects.

The winner startup, Terepex which was included in the top 5 startsups out of more than 2500 participants is an innovative attitude concerning planting the trees. With the help of new technologies, on the one hand, treepex offers customers to planting tree as a gift on different occasions. On the other hand, it offers companies as a green marketing tool to increase customers and therefore sales. Another Georgian Startup, RehabGlove was also presented at Mobile World Congress. It is an electronic glove which provides customers with a special security program and help customers with the rehabilitation of limbs as a result of stroke and other traumas.

Mobile World Congress takes place annually in Barcelona, where the world is introduced to technical achievements and trends. This year, 108 000 visitors attended the Mobile World Congress forum from 208 countries. More than 2500 companies took part in the exhibition, which presented their innovations for the investments and congress guests.

We are proud that Georgia is also marked at world technological map and beeline contributed in it. The amount of applicants for „Eurasia Mobile Challenge “is increased every year and we are sure that we will discover many more talented young Georgians with new, innovative and interesting projects”- noted general director of Beeline, Giorgi Tkeshelashvili.

Eurasia Mobile Challenge takes place every year in the frame of company Beeline social responsibility campaign.

The aim of the competition is to discover contemporary, talented young people who have a potential to create a better and profitable product to achieve success in the regional and global market which makes them successful.

Regional Director for the South Caucasus, World Bank International speakers will be covering the topics concerning credit ratings, venture capital funds and real estate markets.

“PASHA Bank started operating in Georgia in 2013 as a result of direct investment of PASHA Holding. The bank offers corporate and investment services to large and medium-sized enterprises in Azerbaijan, Georgia and Turkey. Supporting the BIA Forum has a double reason for us: we share our successful experience with the attendees and establish new connections with the potential customers. We think that this event will have positive impact on the economic development of the country,”- said Shahin Mammadov, CEO and Chairman of Board of Directors at PASHA Bank.

22-Year-Old Farmer Girl Has An Unique Quail Farm Nino Tsintsalashvili, a 22-year-old girl, launched quail egg production 2 years ago. The young farmer keeps 60 quails in winter period, while the number grows to 600 ones in summer period. The young entrepreneur supplies the product to restaurants and stores in Gurjaani, Sagarejo and Telavi, Kakheti Region, bpn.ge reports.

Nino Tsintsalashvili developed the business idea in her childhood, when her uncle used to bring quails to home and Nino was trying to rescue them. “I used to care for the rescued birds and then I used to release them. In summer 2015 we brought several tens of quails to home.

I obtained a 5000 GEL financial support component as part of Produce in Georgia program. As a result, I arranged my own incubator and cage for birds. However, I would like to note that I do not keep quails at cages all time. A quail is a woodland bird and I let them to yard. In winter period they stop egg-laying.

They need much feeder”, Nino Tsintsalashvili said.

Main objective of egg production is to provide assistance to those children who have difficulties with speaking. Quail egg helps children defeat this problem. The young entrepreneur is a 5-year student at TSU medical faculty and, besides business, she works at two other places. In the future, she plans to introduce quail egg to Tbilisi market too.

March 20, 2017 #185

PUBLICITY

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March 20, 2017 #185

March 20, 2017 #185

WORLD NEWS

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Quotes

“ “The indictment unequivocally shows the attacks on Yahoo were statesponsored”

If you can put Boomers and Millennials together in the same place and with the right setting and conditions, it’s amazing how they spark each other.

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“Financial institutions are aware of the advantages of blockchain, but banks are not key players on this market”

Paul Critchlow

Yahoo Security Lapses Laid Bare Even as Russia Blamed for Hack

Azerbaijani SGC Tallinn Hosted the Largest Company sets Blockchain Conference in Initial Guidance the Baltic States on $1B Bond Tap

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Azerbaijan’s Southern Gas Corridor CJSC has set initial price guidance in the 5.875 percent area for a tap of its existing $1 billion bond, according to one of the banks leading the transaction. Citi, J.P. Morgan and UniCredit are the joint lead managers. In March 2016, Southern Gas Corridor Company printed its $1 billion worth 10-year bond, 80 basis points back of the sovereign curve, benefiting from an explicit state guarantee. Initial price thoughts for the 10 year bond were released at 7 percent yield area, but leads UniCredit, Citi and JP Morgan were unable to move pricing tighter before pricing in line with that level later in the day. The bond was sold at 99.112 with a coupon of 6.875 percent. Demand was largely driven by investors in the UK and US. The Southern Gas Corridor is one of the priority energy projects for the EU. It envisages the transportation of gas from the Caspian region to the European countries through Georgia and Turkey.

At the initial stage, the gas to be produced as part of the Stage 2 of development of Azerbaijan’s Shah Deniz field is considered as the main source for the Southern Gas Corridor projects. Other sources can also connect to this project at a later stage.

hen it comes to Yahoo’s massive security breach, the company was right about one

thing.

Yahoo! Inc. has been saying since September that a state-sponsored actor was behind a hack in 2014 that compromised about 500 million of its user accounts, even as some security experts cast doubt on that claim. Yahoo gained a measure of vindication Wednesday when the U.S. government laid out charges against four individuals allegedly acting at the behest of the Russian government when they broke into Yahoo’s computer systems.

“The indictment unequivocally shows the attacks on Yahoo were state-sponsored,” the company said.

“We are deeply grateful to the FBI for investigating these crimes and the DOJ for bringing charges against those responsible.”

Yahoo is not alone in meeting skepticism for asserting a hacking attack was the work of a foreign government. Companies sometimes make that claim, in some cases to help collect on cyber-insurance payouts or for a waiver from the U.S. govern-

ment allowing them to keep the incursion secret while it’s investigated on national security grounds.

In Yahoo’s case, there was also a merger on the line. The company had in July agreed to sell its Internet properties to Verizon Communications Inc., and any evidence that the company had been lax in keeping user data secure might give its new owner cause to revisit terms of the deal. A state-backed attack led by elite hackers, on the other hand, can be more difficult to repel -- or so a company can argue. “You’re pitting U.S. corporations against state-sponsored activity,” said Jim Pastore, a member of Debevoise & Plimpton’s Cybersecurity & Data Privacy practice and Intellectual Property Litigation Group. “And no matter how good you are as a company, that is an unfair battle.”

Even as the indictments show a sophisticated and comprehensive attack, they also reveal new details about the lapses that left Yahoo vulnerable to criticism that it failed to adequately shore up accounts -- and ultimately prompted Verizon to renegotiate terms of its planned acquisition.

Armenia is sixth among eight countries in ECED investment Russia, Turkey sign agreements attractiveness ranking

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rmenia is sixth among the eight countries of the Central Asia and the South Caucasus in the ECED investment attractiveness ranking. The Eurasian Development expert center says in its report that Armenia has a relatively diversified economy, quite qualified human resources and relatively favorable investment climate. At the same time, analysts at the center point out some foreign policy risks, such as an armed conflict with Azerbaijan, transport blockade, scant resources, social antagonism and political destabilization risks.

Taking into account all these circumstances, the analysts’ outlook for Armenia’s investment climate is negative.

Atom Margaryan, a professor at the Armenian State University of Eco-

nomics, told ARKA News Agency that one aspect has been omitted in this study – countries’ ability to develop information technology industry.

In his opinion, Armenia is able to generate technologies thanks to the high quality its human resources in research, science, technology, experimental, and civil industries as well as in services segment.

He also said that the EU economic preference GSP+ and the US and other countries’ GSP Armenia enjoys despite its membership in the Eurasian Economic Union has not been taken into account as well as the plan to create a free economic zone with Iran, which will allow Armenia to become a bridge for exports to the 80-million Iranian market and the 175-million Eurasian market.

in sphere of tourism

Important documents in the sphere of tourism were signed in Moscow following the talks between Turkish Deputy Minister of Culture and Tourism Huseyin Yayman and the Head of the Federal Agency for Tourism of Russia (Rosturizm) Oleg Safonov, the Anadolu Agency reported.

This signing will give impetus to cooperation between the two countries, Yayman said.

Yayman, who is in Moscow to participate in the 24th International Travel and Tourism Exhibition, welcomed the steps for rapprochement with Russia.

“We are always happy to welcome Russian guests in Anadolu city and we stand for cooperation, including in the tourism sector,” Yayman said.

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allinn hosted a large-scale conference dedicated to blockchain technologies and cryptocurrency development – Blockchain & Bitcoin Conference Tallinn.

The event became the largest platform for blockchain entrepreneurs and developers in the Baltic states.

The conference was attended by 250 people from 20 countries.

Event organizer is Smile-Expo, the company that holds blockchain conferences in Russia, Ukraine and the Czech Republic. It has decided to enter the Estonian market due to the favorable IT environment of the country and government support of blockchain projects in the Govtech sector.

The floor was taken by Jon Matonis, Founding Director at Bitcoin Foundation, Kaspar Korjus, e-Residency Managing Director, Karolina Marzantowicz, Distinguished Engineer at Polish branch of IBM, Kaidi Ruusalepp, Founder of Funderbeam, and 14 more speakers involving crypto experts and managers of blockchain projects. They presented cases on implementation of blockchain into business processes.

“There is no better place for blockchain discussions than here in Tallinn – the home of digital society”, said head of e-Residency team Kaspar Korjus, who unveiled an unprecedented e-residence project – a landmark of the Estonian Govtech. Thanks to the project, 18 000 people and 1 300 companies from 136 countries became Estonian residents.

“Blockchain itself is nothing, it needs to be considered together with digital identity, legal environment, and efficient e-governance.

Only then we will start to understand its real impact”, added Kaspar

Korjus.

The participants discussed challenges of the new industry: regulatory issues, cryptocurrency acceptance by the society, benefits of private and public blockchains and key players of the blockchain market.

“Blockchain technology will change the digital economy”, said the representative of the Polish IBM, Karolina Marzantowicz. However, in her opinion, financiers should be more open to cooperation in this field.

“Financial institutions are aware of the advantages of blockchain, but banks are not key players on this market”, said the IBM engineer.

“Banks haven’t implemented a blockchain yet for regulation reasons”, explained Jüri Laur, Head of the Payment Service at the leading Estonian bank LHV, which is one of the first in the world to begin blockchain implementation.

“You shouldn’t use blockchain in order to just use it. Blockchain without cryptocurrencies is only a half of the battle”, believes Jüri Laur.

One of the tasks of crypto community is to reveal the benefits of Bitcoin and Blockchain for customers. “To change customers’ outlook, especially in the financial sector is a challenging task”, stated Eric Benz, CEO at Cryptopay. However, he added that advantages of Bitcoin are the convenience and safety of assets storing.

The next conferences from Blockchain & Bitcoin Conference Tallinn organizers will take place this spring in Moscow and Prague; and later on, the company will hold the largest blockchain event in the Eastern Europe. It will be carried out in September in the Ukrainian capital.

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March 20, 2017 #185

March 20, 2017 #185

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

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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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March 20, 2017 #185