Caucasus Business Week #193

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May 22, 2017 #193

May 22, 2017, Issue 193 - www.cbw.ge

Handmade Alan - Unique Dragonfly Bringing Originality and Happiness

Pg. 9

Business King David Launched New Mortgage Product with Bank of Georgia Pg. 10

Nino Khurodze: Creative Capacity Pg. 8 And Inner Culture Are Important Features in Public Relations Field

Georgia-China Free Trade Agreement New Economic Opportunities or Major Risks?

Unemployment Problem in Georgia Over the past years unemployment remains a major challenge in Georgia. According to social surveys, unemployment problem has long surpassed such important issues as territorial integrity or a hike in prices. According to the 2015 official indicators, unemployment index in Georgia is 12%, however, social surveys show that more than a half part of respondents consider themselves unemployed. According to public inquiry by National Democratic Institute (NDI), 63% of population consider themselves jobless, 37% - employed. In the April survey, number of respondents, who consider themselves employed, has increased compared to the previous survey. According to the inquiry conducted in NovemberDecember 2016, 34% of respondents considered themselves as employed. 37% of the respondents, who consider themselves unemployed, are jobless and seek job places, 24% are pensioners and are not interested in employment opportunities, 13% are housewives.

Pg. 4

Georgia - Leader in Region in Terms of Economic Growth Pace

Pg. 7

Georgia’s economy has recorded favorable growth indicators in the first quarter of 2017, Geostat, the national statistics service of Georgia, reports. In March 2017 the real GDP growth rate marked 5.3%, as compared to the same period of 2016, while the averaged real growth in the first quarter marked 5%. The mentioned indicators were positively appraised several times by both government officials and analysts and representatives of international finance institutions. Moreover, it should be also stressed that, according to the 2017 budget, the 2017 economic growth forecast makes up 4% and this growth was achieved at the beginning of 2017, when economic activity traditionally slows down. Consequently, there are justified expectations that economic growth pace will be positive in the next months too.

Pg. 6

2 GOVERNMENT

NEWSROOM Georgian PM Meets with Ludgate Investments Managing Director The parties discussed Georgia’s investment potential and existing business environment in the country, as well as Ocean Capital’s ongoing projects in Georgia and future cooperation perspectives.

Parliament Adopts Amendments to Tobacco Control Law Starting January 1, 2018 tobacco products must be packed in simple boxes with photos of diseases caused by smoking.

Pictograms must be also attached to cigarette boxes.

ECONOMY

BTK Railway to Contribute to Participating Countries’ Economic Growth The BTK railway is being constructed on the basis of the Azerbaijan-Georgia-Turkey intergovernmental agreement.

Peak capacity of the railway will be 17 mln tons of cargo per year.

Electricity Imports in January-April 2017 Exceeded Total Imports of 2016 In January-April 2017 Georgia’s electricity imports made up 886.691 million kw/h, up 47% as compared to total imports in 2016 – 478.9 million kw/h.

BANKING

Money Transfers to Georgia Rose by 22.3% in 1Q17 The information is provided in the monetary policy report for May developed by NBG. Volume of quick money transfers from EU countries is also growing, especially from Greece, Italy, Israel, the USA and Turkey, the NBG report reads.

One Billion USD Capital Chinese Bank to Launch in Georgia The founders of the bank are largest Chinese corporations: “CEFC China Energy Company Limited’’ and the company „Eurasian Invest LLC”.

BUSINESS

Indonesia Wants to Import Agricultural Products from Georgia Indonesia wants to carry out import of hazelnut and mackerel crops, mineral waters and non-alcoholic beverages, fruit and vegetable juices as well as mineral and organic fertilizers.

Georgia Exports Cattle Leather To EU Cattle leather has been exported to Greece from Georgia. National Food Agency has already issued a due exports certificate.

Unprocessed skin of cattle, after wool, is the second nonfood product of animal origin.

COMPANY

Chinese E-Commerce Company Jumor to Enter Georgia Jumor is the world’s number one international e-commerce platform E4B (ecosystem for business) that unites e-commerce and business offer for business.

May 22, 2017 #193

Georgian Railway Held Conference to Promote Lean Six Sigma Methodology

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eorgian Railway held conference in the frame of promoting establishment of Lean Six Sigma methodology and organized a celebration of delivering certificates to the staff of engineers.

The main essence of Lean Six Sigma methodology is to improve the quality of the product, minimize defects and decrease standard deviation.

In the frame of the project, Georgian Railway staff was trained by international consulting companies. Along with theoretical part, solving specific problems was the basic part of the preparation which was eventually turned into projects.

Lean Six Sigma methodology

was primarily elaborated by Motorola and it had a solid economic effect after its implementation. It has to be noted that it is the most famous methodology nowadays.

“Railway has a new perspective and strategy and considers the

possibility of integrating in the global transportation logistic network. This direction makes us responsible to try modernizing everything. Establishment of Lean Six Sigma will help the modernization of the system”declared Koka Guntsadze.

Georgian Stock Exchange Expenditures on Salaries and Bonuses Constitute 80% of Total Operating Revenues

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s of May 1, 2017 Georgian Stock Exchange (GSE) trading system has registered securities of 120 companies. Total market capitalization of these securities make up 0.834 billion USD, while daily turnover makes up 1000 GEL. GSE key shareholders are: LLC Tbilisi Capital (17.33%), LLC GCF Holding Georgia (15.33%) and JSC Galt&Taggart (15.33%).

The mentioned stakeholders also own a 64.78% stake in Tbilisi Stock Exchange (TSE).

For the consolidation purposes, the Group considers this stake to be a noncontrolling stake. GSE comprises the following subsidiaries: JSC Securities Central Depositor (direct ownership 24.65%; indirect ownership – 26.44%), JSC Tbilisi Stock Exchange (direct ownership – 35.22%); JSC Kavkasreestri (direct ownership 57.86%).

JSC Georgian Stock Exchange founded JSC Tbilisi Stock Exchange (TSE) on May 7, 2015 for the purpose of drawing resources for business development through sales of TSE shares.

Implementation of the mentioned purposes is impossible without a consent of 75% of

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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

stakeholders, under the statute. GSE minority stakeholders, who own 38% of the company shares, have sued against the decision of TSE foundation and their action was satisfied.

As a result, JSC Tbilisi Stock Exchange was banned to use trading system, the most important asset for implementing exchange operations. Legal disputes also proceed for stripping TSE of a license, because minority stakeholders think that National Bank of Georgia (NBG) has illegally conferred the operating license to TSE. In December 2016, TSE issued 183 897 ordinary shares that were purchased by LLC Galt&Taggart, LLC TBC Capital and LLC GCF Holding Georgia.

Raised compensation made up 2 455 025 GEL. As a result, the stakes were shared in the following way: Georgian Stock Exchange (GSE) (35.22%); JSC Galt&Taggart (21.59%); LLC TBC Capital (21.59%); LLC GCF Holding Georgia (21.59%).

Through this issuance GSE ratio in TSE shrank to 35.22% and this signifies logically that small stakeholders do not hold any stake in TSE. On December 23, 2016, TSE purchased 304 499 ordinary shares of Securities Central

Depositor of Georgia. Through this investment, TSE became owner of 75.06% stake in Securities Central Depositor of Georgia. As a result of the mentioned deals, JSC Georgian Stock Exchange controls 51.09% stake in Securities Central Depositor of Georgia, including 26.44% stake indirectly through JSC Tbilisi Stock Exchange.

As of December 31, 2016, JSC Georgian Stock Exchange operating revenues marked 457 200 GEL, of which considerable part (365 829) is spent on salaries and bonuses.

It should be noted that under the 2015 report, total operating revenues of the exchange made up 273 472 GEL, while expenditures on salaries and bonuses were much higher – 316 148 GEL. Naturally, the question arises: the stock exchange remains at the bottom of development and correlation of capitalization of admitted shares proves this (2.45%), but why has the stock exchange issued much more salaries and bonuses in 2015 as compared to the total operating revenues? While in 2016, expenditures on salaries and bonuses constituted 80% of total operating revenues.

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

May 22, 2017 #193

PUBLICITY

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ECONO-MIX

Unemployment Problem in Georgia

Giorgi Gakharia Minister of Economy

Merab Janiashvili Economic Analyst

Today there is not sufficient number of job places in Georgia as compared to the existing demand. Therefore, in longterm or short-term periods, only way for unemployment reduction is to boost Georgian economy and create new job places.

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ver the past years unemployment remains a major challenge in Georgia.

According to social surveys, unemployment problem has long surpassed such important issues as territorial integrity or a hike in prices. According to the 2015 official indicators, unemployment index in Georgia is 12%, however, social surveys show that more than a half part of respondents consider themselves unemployed.

According to public inquiry by National Democratic Institute (NDI), 63% of population consider themselves jobless, 37% - employed. In the April survey, number of respondents, who consider themselves employed, has increased compared to the previous survey. According to the inquiry conducted in November-December 2016, 34% of respondents considered themselves as employed.

37% of the respondents, who consider themselves unemployed, are jobless and seek job places, 24% are pensioners and are not interested in employment opportunities, 13% are housewives, 7% are jobless and do not seek job, 5% are students.

Public opinion research field works were carried out from April 7 to April 28 and a total of 2493 respondents were inquired. Average error margin of the survey is+/- 2.7%.

It is worth noting that starting 2009 the official unemployment indicator shrinks on annual basis.

According to the 2015 information by Geostat, national statistics service of Georgia, there are 246 000 unemployed persons in Georgia, while 1 780 thousand persons are employed, including 1 018 000 (57%) are self-employed (agriculture sector, retail trade and so on).

A major part of the employed do not consider themselves as employed. This category notes in sociological surveys that they are unemployed.

Under international practice for determining unemployment level, if a person receives financial benefits over the past 7 days, he/she is considered to be an employee.

«Employed (hired or self-employed) – bodies of 15 years old and over, who have worked for 7 days before the survey day (for even an hour) for the purpose of receiving revenues (salaries, profits and so on), assisted members of other households free of charge or were absent at office for certain reasons, but was formally registered as an employed», an extract from Geostat methodology for determining workforce.

The point is that 1 780 thousand persons are recorded as employed and 246 000 persons – as unemployed. A total of 753 000 persons are hired and consequently, they do not consider themselves as unemployed. About 275 000 persons from the mentioned category work in public sector. In reality, not only 246 000 persons seek job,

‘‘

The President of the National Bank of Georgia Koba Gvenetadze confirms the information about a possible introduction of new regulations for microfinance organizations .

In his words, an increase in the authorized capital is planned as one of the measures, but so far a minimum limit hasn’t been set.

“The exact figures will be made public after the draft law is submitted to the parliament,” Gvenetadze says.

According to him, the country needs strong banks as well as strong microfinance organizations.

“Initially, it was assumed that microfinance organizations would issue loans from the funds they received from various international organizations. But later this practice was forgotten, and microfinance organizations began to attract deposits from the population and now they need more strict control. Those companies that will issue loans from their funds will be more free, those who attract other people’s money will be more strictly regulated, “ President of the National Bank notes.

Gvenetadze believes that in any case regulations are necessary, and in the near future a special bill will be sent to the parliament.

After determining the minimum regulatory capital for commercial banks, an authorized capital is also planned to be increased for microfinance organizations. If the MFOs capital is GEL 250 000 at the moment, according to the amendment package, the margin will increase from GEL 1 to 5 million.

Banking expert David Kikvidze believes it will be a difficult process for microfinance organizations because all of them will not be able to meet the increased capital requirement.

Kikvidze believes that an increase of authorized capital for microfinance organizations will reduce the availability of money.

In his words, this change will not be positive as will complicate competition and restrict the operation on the market. According to Kikvidze, this regulation will be a very heavy blow to microfinance sector.

According to the National Bank of Georgia, as of February 25, a total of 84 microfinance organizations are operating in Georgia.

Social Surveys Detect more Unemployed than Official Statistics

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National Bank to Introduce New Regulations for MFIs

May 22, 2017 #193

but also a major part of self-employed, who try to receive revenues through various ways prior to finding desirable job. Consequently, when new job places appear in Georgia, this does not signify that officially-reported unemployed will occupy them. Theoretically, new job places may be occupied by the self-employed and, therefore, the number of jobless citizens will not decline.

Georgian economy account for about 14 billion USD. Annual incomes per capita makes up about 3.8 thousand USD, while in the developed countries the annual incomes per capita starts from 12 000 USD. Today there is not sufficient number of job places in Georgia as compared to the existing demand.

Therefore, in longterm or short-term periods, only way for unemployment reduction is to boost Georgian economy and create new job places.

According to Geostat, in the fourth quarter of 2016 number of persons employed in business sector marked 621 000, up 6.2% as compared to the same period of 2015. To be precise, number of employees in private sector constituted 620 800 persons, up 6.2% year on year. In total number of employees the ratio of women is 40.7%. Ratio of major business in total number of employees is 61.3%, medium business – 16.6% and small business – 22.1%.

Total number of the employed marked 584 900 persons, up 3.7% year on year. Total expenditures taken by enterprises on staff amounted to 1997.6 million GEL, up 12.2% year on year. In the fourth quarter of 2016, monthly salaries in business sector totaled 1130.4 GEL, up 85.8 GEL year on year, including women salaries made up 819 GEL, up 66.1 GEL year on year.

Averaged monthly salary due to the size of enterprises is as follows: major business – 1268.5 GEL, medium business – 1110 GEL, small business 646.6 GEL. In the fourth quarter of 2016, commerce (automobiles, household products and personal items, repair works), processing industry, housing sector are leaders in terms of number of employees (25.5%, 13.8% and 10.4% respectively).

However, an important ratio in the structure is created by the following sectors: healthcare and social assistance (10.3%), transport and communications (9.9%), real estate transactions, leading and consumer services (9.8%). As to quantity of employees, the figure is as follows due to regions: Tbilisi (65.8%), Ajara – 9%, Imereti – 6.9%, Kvemo Kartli – 5.5% and Samegrelo-Zemo Svaneti – 3.6%.

Number of employees should grow in private sector, not in state structures, because growing number of employees in private sector signifies that the state economy is recovering.

“Government of China will encourage private sector and state companies of China to put investments and boost production output in Georgia. We asked the Chinese party to develop a new project as part of One Belt- One road program in order to promote Chinese private sector in Georgia”

Dimitri Kumsishvili Minister of Finance of Georgia

May 22, 2017 #193

PUBLICITY

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GEORGIA

REGION

May 22, 2017 #193

Leader in Region in Terms of Economic Growth Pace

Geeor Georgia’s economy has recorded favorable growth indicators in the first quarter of 2017, 20 017 Geostat, the national statistics service of Georgia, reports. In March 2017 the real rea al GDP growth rate marked 5.3%, as compared to the same period of 2016, while the averaged real growth in the first quarter marked 5%. av ver

T BFM.GE

he ment mentioned indicators were positively appraised several times by both government officials and analysts and representatives of international finance institutions. Moreover, it should be also stressed that, according to the 2017 budget, the 2017 economic growth forecast makes up 4% and this growth was achieved at the beginning of 2017, when economic activity traditionally slows down.

Consequently, there are justified expectations that economic growth pace will be positive in the next months too. Despite forecasts of Georgian Government, International Monetary Fund (IMF) decreased Georgia’s forecast indicator to 3.8%.

The monetary policy report by National Bank of Georgia (NBG) also analyzes economic growth forecasts and the current developments in the Region. According to the report, Georgia’s economic growth rate is one of the best ones among neighboring countries.

At the beginning of 2017 instable situation was maintained in the Region, however, certain recovery signs have also emerged.

Region’s macroeconomic tendencies still have serious impact on Georgian economy through commercial, money transfer and tourism channels. According to IMF forecast, global economic growth in 2017 will mark 3.5% and this is an improved indicator. It should be also noted that the mentioned

expectations are preconditioned by comparatively quick economic recovery forecasts in the developed countries.

In February 2017 Ukraine’s economic recovery process declined because of complicated developments in eastern part of the country.

Industrial production has shrunk by about annual 5%. However, at the beginning of April the IMF approved a new tranche for Ukraine. This fact has made positive affect on consumer and business moods and partly neutralized economic activity contraction.

In whole, taking into account these circumstances, IMF has slightly worsened the 2017 GDP growth forecast to annual 2%.

According to recent indicators, Russian economy continues recovery process. In March, industry sector considerably enlarged and international trade indicators were also improved. Oil price stabilization and implemented prudential policy also promote the process. Along with alleviation of Ruble depreciation burden, over the past months annual inflation indicator decreased and marked 4.3% in March. According to IMF forecast, Russia’s GDP will rise by 1.4% in 2017, up 0.3% as compared to the previous report.

Along with Russian economy recovery, in Armenia, after a weak upturn in 2016, at the beginning of 2017 economic activity considerably intensified. Growth in money transfers and revenues from exports have made positive effect on consumer moods. In addition, the new government administration announced readiness for carrying out liberal reforms for promoting foreign investments.

However, as compared to assessments made in October 2016, IMF has lowered the 2017 real GDP growth forecast to 2.9%.

Like other countries of the Region, at the beginning of 2017 recovery signs appeared in Azerbaijani economy too. Namely, along with increased investments, non-oil industry indicators were also improved. Moreover, amid stabilization of global oil prices, slowdown in oil industry has also decelerated. Despite this, amid weaker-than-expected growth in 2016, IMF lowered real GDP growth forecasts to 1%.

After the 2016 weak second half, as a result of counter-cycle measures of Turkish government, at the beginning of 2017, consumer demand and industrial production have

considerably increased, however, uncertainty from political developments has made negative impact on the market. Amid heavy burden from LIRA depreciation, consumer prices inflation hit record figures over the past years in March (11.3%).

According to IMF assessment, the 2017 real GDP growth forecast made up 2.5% and this is worsened indicator as compared to evaluations made in October 2017. As to international economic growth and forecasts for Georgia’s main trade partner countries, as noted above, according the IMF forecasts, global economy will grow by 3.5%. Naturally, Georgia is part of the global economy and, consequently, global economic developments have huge impact on developments in Georgia. Below we introduce presumable forecasts for the countries that considerably affect Georgia’s economic situation.

In terms of economic activity, quick recovery paces are recorded in the USA. Amid radically improved consumer mood and reduced unemployment, consumer demand is a key factor for GDP growth. Announced fiscal stimulus expectations also create positive attitudes.

According to IMF report, the US economy will grow by 2.3% in 2017. Eurozone economy recovery process is gaining momentum stage by stage, as a result of improved consumer and business moods, growth in demand and positive tendencies on labor market.

Despite this, consumer price inflation remains under 2% target indicator. In March, annual inflation made up 1.5%. According to IMF forecast, in 2017 Eurozone economy will rise by 1.7%.

At the beginning of 2017, in the trade partner countries with reduced inflation expectations and reduced domestic currency depreciation, central banks smoothed monetary policy and created preconditions for improving economic activity. At the same time, in the developed countries, where output growth comes behind potential growth and consumer prices increased at low rates, expectations for monetary policy alleviation will be maintained again.

As to the USA, amid expected high inflation, Federal Reserve System raised the policy rate in March. According to the minutes of the committee meetings, the rate is expected tot rise twice again throughout 2017.

May 22, 2017 #193

FREE TRADE

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Georgia-China Free Trade Agreement New Economic Opportunities or Major Risks?

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eorgia-China free trade agreement was signed on May 13, 2017. As a result, Georgia has got an access to the market with 1.4 billion consumers. After simplification of Georgia-China trade-economic relations, Chinese products inflow to the Georgian market may extremely increase and Georgia’s negative trade balance may deepen further. A part of economists show skepticism concerning the agreement, contrary to the Government.

Government of Georgia calls the agreement to be a historical document. A part of economists expects Chinese products to oversaturate the Georgian market.

Free trade agreement with China is a very mimportant document that opens very interesting opportunities for attracting investments, Prime Minister Giorgi Kvirikashvili told Government meeting.

Georgia is taking back its historical geostrategic functions, Georgian Prime Minister added.

“We have signed free trade agreements with our neighboring countries, as well as with EU. This factor makes Georgia a very interesting country for investments. We believe that free trade agreement with China is of crucial importance for attracting new investments and developing exports-oriented production. This is an important new door that has opened for Georgia for developing export potential and exports-oriented production. Georgia is taking back its historical geostrategic function stage by stage. Our country should be open for similar economic cooperation and we believe this is significant breakthrough”, Giorgi Kvirikashvili noted.

The agreement document was developed for several years and I thank everybody, who has taken part in developing this document, Kvirikashvili said.

Historical Agreement and Figures According to Geostat, national statistics service of Georgia, in 2016 Georgia-China external trade marked 717.090 million USD, including exports made up 169.586 million USD, while imports constituted 547.503 million USD. Negative trade balance marked 377.916 million USD, which is 52.7% of bilateral trade turnover.

In the first quarter of 2017, Georgia exported 49.384 million USD products to China and imported 126.512 million USD products from China. Negative trade balance marked 43.8%.

These indicators show that Georgia-China export-import correlation is not very favorable. After full enactment of the new stage of trade-economic relations with China, it is not ruled out exports-imports mismatch increase further. Economists do not rule out similar scenario.

Professor Rati Abuladze, doctor of economics, explains that signature of Georgia-China free trade agreement is a positive step in Georgia’s economic diplomacy. It should be noted that China was the first country that recognized independence of Georgia and developed dynamic relations with our country. Today China is Georgia’s major trade partner. This agreement is an important strategic step that stresses enhancement of political contacts between countries, dynamic development of economic relations, Abuladze pointed out.

The expected economic dividends from this agreement are as follows: • Mutual economic dependence of China and Georgia, development of economic relations and cooperation; • Shaping favorable environment for doing business (fast-growing exports market with 1.388 billion residents, growing solvency, favorable competitive environment, Know How opportunities); • Coincidence of Georgian business potential with Chinese market demand structure, expansion of activities of companies and development of external trade; • Existence of favorable trade and economic infrastructure for sales of Georgian products (in China), that will grow exports of products.

Under the agreement, 94% of Georgian products will be exempted from customs tax; • Growth in foreign investments and implementing new investment projects (In 2016 Chinese FDI inflow marked 27.4 million USD); Abuladze explains that Georgia should shape economic and trade relations, however, achievements of economic diplomacy should be determined by the agreement conditions that is to: • create preferential conditions for Georgian business. This agreement is to determine how competitive environment will be ensured for Georgian business, which resources will move under simplified regime and which production will grow.

• Ensure a growth in Georgian product exports scales, as compared to Chinese

As to export products and our potential, we cannot make preliminary forecasts and this is less important. A new window has opened and the tomorrow will outline talented people.

products imports, under “Mutual beneficial principle”.

• reflect the Chinese market benefits in economic indicators. It is worth noting that in 2016 exports marked 169.6 million GEL and imports totaled 547.5 million USD; • Turnover of products, capital or workforce between China and Georgia should ensure “competitive advantage conditions” for Georgian environment; • ensure preferential condition for Georgia resources, especially when implementing budget-financed projects (both in Georgia and China).

According to Abuladze, the following factors need economic and political analysis of Georgia’s economic diplomacy: • Effect of China’s trade-economic activation on Georgia’s economic policy; • How china will be perceived in Georgia’s development perspectives, as China represents “Factory of the World”.

• How China’s major and competitive companies (including China-based foreign companies) will affect domestic players in Georgia.

What will be the effect of globalization of the mentioned companies. Research works show that Chinese companies strive for becoming global companies; • What will be the “place” of China, as a leading actor, in terms of geopolitics, besides economic aspects.

“Free trade agreements always make positive effect on enhancement of trade relations between countries in terms of external economic integration, enhancement of cooperation in various fields, intense movement of capital or workforce. As a result, all these factors will ensure Georgia’s economic stability and steadiness”, Rati Abuladze said.

Economic expert Akaki Chargeishvili states that enactment of the mentioned agreement is a positive event. Despite the agreement was signed several days ago, Georgian products had penetrated Chinese market long before, mainly alcoholic beverages, including wine. Both private and state sectors have serious expectations, Chargeishvili said.

This is serious advancement for economic development of our country and the private sector should make a maximum use of this opportunity, Chargeishvili noted.

«We have huge potential in agriculture sector, because today the world suffers from food shortage. Therefore, Georgia is a real chance», Chargeishvili said.

Government of Georgia should shape an institution of trade-economic representatives at least in Chinese provinces that will operate as representations of the Georgian state and will support private sector. Georgian embassies will not be able to valuably perform all these goals, he said.

Economic expert Gia Khukhashvili says that the free trade agreement with China creates certain strategic opportunities for Georgia, based on Georgia’s geopolitical function.

“As to specific economic effect, certain risks

may arise. Similar agreements are always bilateral. When the contractual parties are on different economic development levels, the less-developed party may bear losses. In this case, we will be more vulnerable. This signifies our economy will be more saturated by Chinese products and we will not have any instrument to balance this. We do not have much exports potental compared to China and therefore, expansion of Chinese products is inevitable.

Moreover, this agreement may bring heavier outcomes. Our economy is being shaped today. Real sector of economy needs development to make the country attractive for investors. To this end, we should place competitive products. If we set such preferential regime to Chinese products, the country will lose the interest of investors, as any investor will fail because of competition with Chinese products. This is a main risk and this agreement may lower Georgia’s investment attractiveness and we will never build the real sector of economy”, Khukhashvili said.

If we had configured all these factors in right way from strategic point of view, we could raise interest of Chinese investors in making investments in Georgia’s real economy sector to make our country an exports instrument for Eastern European market and even for Russian market, Khukhashvili said.

“But this agreement confers trade privileges to China. Therefore, China will not have much interest to make investments in Georgia’s real sector. Many European countries have refused to sign similar agreements with China because of simple reason – it is difficult to compete with Chinese products and similar agreements destruct domestic economic sector. Instead of thinking about these threats, we are taking such major risks for populist PR, without due weighting expected risks”, Khukhashvili said.

Economist Paata Sheshelidze shows different position. Georgia has long signed free trade agreement with the world. Our market is open for products of all countries and 88% of these products enjoy zero-rate regime, while all other products are subjected to 12% tax rate.

“As to export products and our potential, we cannot make preliminary forecasts and this is less important. A new window has opened and the tomorrow will outline talented people. They are given opportunity to sell their products on the new market. It is a peripheral issue how these opportunities will be used. If someone fails to make a use of this chance, then we have problems with education. Our ambitions have grown in wrong way and so on. Government was to open this window definitely and it has performed this job”, Sheshelidze said.

As to private sector, Georgian entrepreneurs provide various assessments around free trade agreement with China. Several months ago a major par of them asserted hat the agreement would create uncompetitive environment for domestic entrepreneurs in Georgia.

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PR PERSON

May 22, 2017 #193

Creative Capacity And Inner Culture Are Important Features in Public Relations Field

Nino Khurodze who is marketing and sales director for WorldClass international fitness brand talked with Caucasus Business Week about her incredible working experience at several Georgian companies.

She has launched many successful projects and was part of various influential teams.

- Who are you by profession?

- I am a marketing specialist.

- Your first job place.

- I started my first job at LIVO Group, the network of Latvian supermarkets, on the position of a junior manager in the marketing department.

- Current job and position.

- Marketing and sales director for WorldClass international fitness brand.

- Your first success - The first success is related to my second and very interesting job, when I was implementing my first independent project jointly with Giorgi Popiashvili and Irakli Topuria. Namely, we were creating PayBox brand. This project successfully operates even today. It is interesting that the customers have perceived this innovation in the way that we aspired for many years ago – today customers name terminals of various brands as PayBox. - Project, business that you take pride in even today.

- I could name several ones, but I would make emphasis on the working period at Imedi L international insurance company, where, jointly with incomparable and excellent team, we developed new insurance products and projects that maintain the title of best products even today.

- Field where you would never work.

- I think in hopeless situations all

“ Nothing is impossible.

We have many interesting specialists in Georgia with domestic and international experience. I believe desire, talent and fortune are necessary.

of us must take efforts in any field. I am happy that I did not have similar situation and today I have been making my favorite affairs.

- What factors make a person successful in your field? Besides knowledge, what special characteristics are required?

- Jointly with professionalism and hardworking, it is also very important to love this affair. Nothing will work without emotional contact.

Creative capacity, interpersonal skills and inner culture, which cannot be taught, and taste – these factors are decisive in our field.

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

- Nothing is impossible. We have many interesting specialists in Georgia with domestic and international experience. I believe desire, talent and fortune are necessary.

- How simply can you settle crisis situations and take decisions? Do you think similar cases affect the quality of working process?

- I learned crisis management when working at Liberty Bank, where similar situations were met in an ordinary everyday regime. In similar situations the main thing is to remain calm and care for quality of performed job.

- Interesting episode that has changed your life.

- In general, my business life sig-

nificantly changed when working with Lado Gurgenidze. Initially, this was a major challenge, but the later experience has changed many thing in my person.

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

- I would work in the graphic design field with much pleasure. I think designers are the most interesting people. I am happy and proud that my friends are talented and successful art directors, who have been working on domestic and international markets and have deserved recognition. In practice, they are ambassadors of our country. I would share their talent and work in this field with pleasure.

- What about your strong personal features?

- I have acquired much experience and this experience enabled me to work on my personal strong and weak features. I think this experience is one of my strong characteristics. Therefore, I always show much interest towards new affairs and challenges.

- What factors make major discomfort in working process?

- Lack of professionals in some fields creates major discomfort, as well as permanent delays in deadlines for working processes.

- Where do you see yourself after 20 years?

- After 20 years I would love to take a long-term vacation on Maldives Islands.

May 22, 2017 #193

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lan is a unique accessory brand developed for people, who ALAN – Unique Dragonfly Bringing Originality and Happinessadmire original and special works, ALAN essentials dragonflies and bugs make the brand distinguished and special. Each brooch is an exclusive work and is made especially for every customer.

Lali Alan founder and creator of the company was inspired by nature and mainly dragonflies which has been a subject of intrigue in every single continent it is found in, and with each civilization, has developed a unique meaning to it, its behavior and its lifestyle.

Arriving on the scene around 300 million years ago, dragonflies are one of the first insects to inhabit this planet. They’ve had a long time to perfect the art of flying, hunting and just being amazing. Exactly this story motivated Lali to create something herself.

In her interview creator of ALAN talked about her background and her story of bringing ideas to life.

HANDMADE

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ALAN Unique Dragonfly Bringing Originality and Happiness - Please tell us a little bit about your company – what is AlAN all about?

- Alan is a brand of handmade brooches, dragonflies and bugs.

The brand was developed for people, who adore original and special works. I would like to stress that each brooch is an exclusive work and they are not repeated.

- Please tell us a little bit about your background and how you started your company?

- The brand was created absolutely unexpectedly and spontaneously.

It was always my ambition to create something myself, including interior things or knitted clothes.

The main inspiration for creating brooches was related to nature, namely dragonflies, the most beautiful being among insects, which appeared on our planet 300 million years ago and that symbolizes happiness, novelty and changes in various cultures.

Brooches created for my friends raised interest of their friends. Ac-

Handmade works are very popular in the USA and European countries

cessories in the form of dragonflies and bugs was drawing the interest of more and more people. The idea of developing the brand was transmitted from my family members.

We have thought a lot about the name. I have a very rare Abkhazian surname – Alan. I want that my surname find continuation in my dragonflies.

- What are your plans for the future, how do you plan to grow this company?

- We receive offers from exhibition spaces and from buyers that will ensure exports and sales of Georgian products abroad. Handmade works are very popular in the USA and European countries.

We hope that ALAN will introduce its product to wider society soon.

- How do you bring ideas to life?

- The creating process is the major pleasure. I always think of ideas related to details and design of new brooches. Sometimes, it is not simple to implement our ideas. I put huge efforts and love in each Brooch. I am happy when clients tell me that my efforts are reflected in these works.

- How do you go about marketing your business, and what has been the most successful form of marketing for you?

Working on handmade things is difficult and peculiar. ALAN produces a small number of brooches.

Social media turned out absolutely sufficient for attracting consumes and establishing communication with them.

Today we have our own Facebook page – ALAN Accessories that operates very successfully. It is also important that clients be content, who popularize ALAN works by wearing them.

- What would you say are the skills needed to be a successful brand – and why?

- Our brand is very young. Much time will pass before we make final conclusions, but we believe that success may be achieved only by producing high-quality products and establishing valuable communication with clients. We believe these factors will increase our reputation and confidence in our brand in the course of time.

I would like to stress that each brooch is an exclusive work and they are not repeated

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BUSINESS

May 22, 2017 #193

Lasha Papashvili to Invest about 35 million USD in Hotel Construction near Freedom Square in Tbilisi Businessman Lasha Papashvili plans to invest about 35 million USD in constructing a hotel near Freedom Square in Tbilisi.

The businessman told Business Course that the issue is of constructing a 4-star hotel of the world’s leading brand. The hotel will comprise with 170 suites. We will spend our own capital or draw resources from one of the financial institutions, Papashvili said.

“We are developing a 4-star hotel project jointly with the world’s leading architectural bureau. The hotel will be constructed in 200 meters from Freedom Square. This is a Prime Location and we will attract the leading hotel brand. The hotel will comprise about 150-170 suites and investment portfolio will constitute 30-35 million USD. We will use our own capital or draw funds from international financial institutions”, Lasha Papashvili told Business Course.

410 Companies with Co-Participation of Chinese Capital Registered in Georgia for 7 Years A total of 410 companies were registered with co-participation of Chinese party in Georgia in the 2010-2017 period.

According to Geostat, national statistics office of Georgia, only 133 companies stay active, out of 410 ones. The companies operate in various fields, but a major part of them operate in retail and wholesale sectors, fields of travel agencies and hotels and restaurants. We remind you that on May 13 Ministry of Economy of Georgia amd Commerce Ministry of China signed a free trade agreement that will come into force at the end of 2017 or at the beginning of 2018.

Turkish Electric Motor Manufacturer Enters Georgian Market Turkish electric motor manufacturer company Gamak entered Georgian market, and SABA is it’s exclusive representative.

Different companies took part in Construction and Design exhibition, from 16-19 May in EXPO Georgia. Factories without electric motors in unimaginable, that is why participation in construction exhibition for us highly important, today we had a opportunity to raise awareness about our company, Founder of SABA, Merab Kukalia said.

Gamak was founded in 1961 to fulfill the needs of the Turkish industry for locally produced critical component, the “Electric Motor”. In a very short time they started the production of the first electric motor made in Turkey.

With our products ranging from 0.06 kW to 1000 kW, we have been able to meet the motor needs of almost every industry. we’ve established one of the leading laboratories in Europe.

First Craft Beer Shop Opens in Tbilisi First Craft beer shop, Krik Brewing Co opened in Tbilisi in March, Craft beer is more than just awesomely delicious beer.

It’s also a revolution against the insult of the industrialized notion of beer that has been preying on the populace for decades.

And yet with the success of the resulting backlash of craft beer which has brought real choice back to the people, the megabeer-industrial-complex wants to co-opt craft beer now too.

We cannot allow this to happen or it will erode the very progress we have all worked so hard to achieve. And they know this.

A strong craft beer definition, which has admittedly proved to be a daunting task, is critical in shoring up the defenses for this thing that is so very dear to beer enthusiasts. We should not let the difficulty of the task of clear definitions dissuade us.

King David Launched New Mortgage Product with Bank of Georgia On May 15, 2017, the Austrian company “Rezid Holding GMBH” and the Bank of Georgia signed memorandum of cooperation on the multi functional complex “King David.”

The new conditions of cooperation under this agreement make it more convenient to purchase a premium class residence in the skyscraper.

In frames of the joint project, customers will have the opportunity to purchase apartments at the King David through the Bank of Georgia’s mortgage program. Bank of Georgia mortgages will ensure maximum affordability for customers, by offering cofunding of only 10%, payment period of the loan up to 20 years and preferential interest rate of 7%.

Furthermore, customers interested in purchasing the Kind David residences will be offered the following two options: 5 % discount in case of a single payment;

Price per square meter from 1,500 USD. King David creates a fivestar 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 residential 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. Royal-style residencies, with stained-glass views, high ceiling, 5-star hotel services make every minute unforgettable at the complex. The capital will get its landmark from July, which will be officially opened in September 2017.

BGEO Starts Construction of Power Plants in Svaneti and Guria BGEO Group starts construction of power plants in Svaneti and Guria. Representative of Georgia Global Utilities Archil Gachechildze told TV Pirveli that 50 and 57 MW capacity plants are underway in MestiaTchala and Guria respectively.

Apart from Communal business the group is also working on renewable energy business for IPO. In addition to power plant construction, we are researching solar and wind potentials in Georgia. Doing IPO of mentioned potentials separately, would be difficult for us, because their scales are not large enough. However joint version of these businesses lets us to make suitable proposal for LSE. “The total project cost for Svaneti project is $65 million and for Guria, group will invest approximately $80 million.

Our investment in energy sector depends on negotia-

tions with the Government of Georgia. In case of attractive proposal we will review investing hundreds of million dollar implementations,” Gachechiladze notes.

As for construction of wind power plant Archil Gachechiladze says that final economic findings on seven chosen locations will be ready before the end of the year, after that company plans to launch construction of stations on 3-4 locations.

To remind, Georgia Global Utilities will do an IPO in 2-3 years. The company owns communal and energy equities in Georgia. Including Georgian Water and Power, Rustavi and Mtskheta waters.

As for the renewable energy field, BGEO plans $28 million investment. “From 2-3 years we aim to do combined IPO of renewable and communal energy businesses.

AGRO BUSINESS

May 22, 2017 #193

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Agro-meteorology stations will send advice to farmers in Kakheti

Georgian Farmers to get Agricultural tips on their Mobile Phones

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ext month, some 8,000 farmers in Georgia’s Kakheti region will start receiving free text messages on their mobile phones. The SMS’s will recommend when they should apply treatments to their crops, what kind of how much.

The initiative is aimed at reducing the spread of crop diseases.

These SMS recommendations will be based on information obtained from 22 Austrian agrarian meteorology stations, installed on agricultural plots in all eight municipalities of Kakheti.

The innovation stems from an FAO project – financed by the Austrian Development Cooperation (ADC), and the European Union’s Comprehen-

development and how the plants react to them.

“The information obtained from the agrometeorology stations will allow the farmer to save time and money and receive high quality, healthy crop,” Meskhi added.

Each station has 10 sensors. Every hour, they measure air temperature, atmospheric precipitation, relative humidity, atmospheric pressure, speed of wind, wind direction, soil temperature, soil humidity, leaf wetness and sun radiation. The National Food Agency of Georgia’s Ministry of Agriculture is responsible for the weather stations and for analysis and dissemination of the information received from them. The information will be processed by the

sive Institution Building Programme (CIB). The aim of the initial pilot project was to create a network of agro-meteorology stations that use data on air temperature, humidity and other factors to forecast when the risk of crop disease spread will be high.

Armed with this information, farmers can treat their plants according to weather conditions, and use less agrochemicals.

“Weather is especially important in agriculture,” said Mamuka Meskhi, Assistant FAO Representative in Georgia. “The same weather factors affect the plant differently in its various vegetative stages.

For this reason, it is necessary to know what the weather conditions are at each stage of the plants’

Agency and disseminated to farmers from 57 villages in Kakheti.

“With the help of the agrometeorology stations, we can forecast vegetable, cereal and fruit plant diseases,” said Nikoloz Meskhi, head of the National Food Agency’s Plant Protection Department. “We will send this information to the owners of agricultural plots located within a fivekilometer radius of each weather station, and they will plan their plant treatment accordingly.”

At a series of presentations in all eight municipalities of Kakheti, farmers were informed about the benefits of the new system, which the Ministry of Agriculture intends to expand in the future.

We Have To Oblige Aliens To Cultivate The Lands Leasing Lands For A Long-Term Is Not A Solution In recent years, one of the most relevant topics in Georgian politics concerns the constitutional changes. Discussion about records in Constitution, regarding the selling of agricultural lands to the foreign citizens was one of the noisiest issues. On this topic we interviewed Mr. Irakli Chikava, the Commercial Director of the company Agro Solution.

- Mr. Irakli, should aliens have the right of buying agricultural lands in Georgia?

- There are different opinions on this issue among the society. That’s why it’s better to get deeper into this issue and find out the problem. When the discussion on such topic starts, as a rule it is preceded by a disclosed fact, negative tendencies. Either the rights of the citizens had to be violated in Georgia, or the oppression of our compatriots by the side of foreigners should have taken place and etc. Fortunately, such facts are not recorded. In fact, in the history of independent Georgia, foreigners always had a right to purchase the agricultural land in Georgia and nevertheless, today less than 1% of the lands are owned by aliens in our country. Therefore, I don’t see any reason, that any rights of Georgian citizens are restricted, or there is not enough land for cultivation and etc.

I cannot understand why this has become the issue of the day.

- Do you think the law should regulate the selling of agricultural lands to foreigners?

- I will contradict myself and say 2 main problems that I see in Georgia in this regard.

Firstly, the ownership of agricultural lands is becoming priority for foreign citizens for getting the right of residency in Georgia and secondly, the aliens buy our lands in order to sell them more expensive. Both issues mentioned by me indicate that

foreigners often buy lands for different purposes and not for producing the products on it. Correspondingly, I think the law can regulate these two problems. On the one hand, in law there must be recorded that, purchasing of agricultural land will not give to foreigners any privilege for getting the right of residency to live in our country and on the other hand, it has to oblige the foreigners to cultivate the lands and produce products.

- Otar Danelia, Chairman of the Agrarian Isuses Committee of the Parliament states that: it is possible to prohibit selling of lands to the foreigners by the Constitution, although they will have the right to lease the agricultural lands for many years.

How do you think, is this a solution and correct way of problem solving?

- When we are talking about investments in the field of agriculture, we automatically mean the large international companies, with serious aims. Accordingly, none of the serious companies will invest in the leased land and this is as clear as two times two. It has several reasons. In such developing countries as it is ours, nobody can give a guarantee to the investor that the attitude towards the foreigners, who have already leased the plots, will not be changed together with the Authority changing. It is also important, that the investor do not have any guarantee that the fees of leasing will not be changed together with the Government changing.

Finally, because of these and many other reasons, in case of leasing lands to the foreigners, large investments will not be implemented in our country.

- Selling of agricultural lands to foreigners are prohibited in many countries throughout the

world. How do you think, what kind of danger does it consist to sell the lands to foreigners in Georgia?

- As I have already told, selling the lands to foreigners always was and it is still permitted. However, it has not caused any problem yet. If the statistics shows, that’s the important part of the entire agricultural lands are under the ownership of foreigners, then we could talk about certain threats. Although, it is fact that serious international companies express less interest towards the lands in Georgia. However, we have some good examples in this regard, such as Agri Georgia with its nut plantation, (Ferrero Rocher) and some Iranian companies in the region of Sagarejo, which grow cereals as well as multi-year crops on several thousands of hectares. Georgia has only benefited from those investments, the local residents are employed, the products are producing, investment is entering, the crops produced by these companies are becoming popular, for example Pesta (the Pistachio), which means that the knowledge and experience has risen.

- Except the foreign currency inflows, what benefits can the country receive by investment in agriculture?

- Today, the huge problem in agriculture is the lack of professional knowledge and the absence of modern technologies. This is the biggest benefit that our country is able to get from foreign investments. The investors are bringing worldwide knowledge and technological achievements, which gives our citizens a chance to use this knowledge in their farm. In addition, serious international companies are oriented on export and therefore, it opens the way to Georgian citizens to export their products.

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PUBLICITY

May 22, 2017 #193

May 22, 2017 #193

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WORLD Rolls-Royce focusing on defense, nuclear businesses in Turkey

Total length of Azerbaijan’s transnational pipelines to reach 9,000 km Currently, the total length of the transnational pipelines operated in Azerbaijan exceeds 5,500 kilometers, said president of Azerbaijan’s state oil company SOCAR Rovnag Abdullayev. He made the remarks during the roundtable titled ‘Oil and gas cooperation’ held within the ‘One Belt, One Road’ concept at the main office of China National Petroleum Corporation (CNPC) in Beijing, reads a message from SOCAR. Abdullayev addressed the first session with a report titled ‘Transnational main oil and gas pipelines and mutual infrastructure relations’. He pointed out that taking into account the facilities under construction, the total length of Azerbaijan’s transnational pipelines will reach 9,000 kilometers.

“We see on the example of Azerbaijan that the right choice of strategy regarding main oil and gas pipelines can be the locomotive of economic growth,” said SOCAR’s president.

“Azerbaijan really believes that the transnational main pipelines will become the “silk parts” of the new great Silk Road. This in turn, will allow us to fairly share the profits between hydrocarbon producers, transit countries and consumers.”

British engineering and manufacturing giant Rolls-Royce, which has operations in key five sectors, will direct its focus toward Turkey’s defense and civil nuclear industries in the near term while prioritizing knowledge transfer, a top company representative has told the Hürriyet Daily News. Patrick Regis, Rolls-Royce’s regional director for Turkey and Central Asia, said Turkey’s indigenous fighter jet TF-X project was the number-one project for the company at present but that small modular nuclear reactors (SMRs) would follow in the future. The company has a unique position in Turkey, which “has a developing demand for every one of the five sectors in which Rolls-Royce is involved,” Regis said.

The company operates in civil aerospace, defense aerospace, marine, nuclear and power systems. “What is key for Turkey is that every one of these businesses is very engaged and this is very unusual for a country

Venezuela to import 60,000 tons of Russian wheat per month

Business opportunities and hydropower in Armenia U.S. Ambassador to Armenia, Richard Mills Jr., and Armenian Deputy Minister of Energy Infrastructures and Natural Resources, Hayk Harutyunyan, spoke about the potential benefits of renewable energy production for Armenia, including hydropower, during a renewable energy conference on May 17 at the U.S. Embassy in Yerevan, Armenia.

The embassy said the one-day conference was designed to strengthen the increasing commercial ties between the U.S. and Armenia by introducing leading U.S. companies to Armenian energy sector operators, allowing the American companies to showcase the latest technological advances in the field.

Seven U.S. companies – Honeywell Building Solutions, Honeywell Smart Energy, MacLean Power Systems, First Solar Power Solutions, Caterpillar, General Electric and Contour Global – sent representatives to the conference to share their experiences and to learn about business opportunities in Armenia, according to the embassy.

Arka News Agency reported that during the conference Harutyunyan said hydropower plants in Armenia have the potential to produce 40% of the country’s overall volume of the share of electricity.

According to information from the ministry, construction of small hydropower plants in Armenia is a leading course of action towards development of the renewable energy sector and securing energy independence in Armenia.

The majority of designed, under construction or operational small hydropower plants in the country are derivational stations [run-of-river stations] on natural water flows.

in which we are operating. India and China have a huge scale. Turkey does not have this scale or volume, but it has a very specific demand. That is exactly what we can offer from nuclear to defense or others. That is unique for a company being in a country which has a developing demand for every one of the sectors in which it is involved,” he said in Istanbul on the sidelines of a defense fair that ended on May 13. Three sectors are of great importance for the company right now, he noted. “Defense is big for us right now.

Then we see high potential in the nuclear business,” said Regis, adding that this would followed by power systems. Under the MTU brand of Rolls-Royce Power Systems, the company develops and produces high-speed engines and propulsion systems for ships and heavy land, rail and defense vehicles, as well as drive systems for use in the oil and gas industry and power generation.

Enagas Committed to TAP as Key Infrastructure for Europe The Trans Adriatic Pipeline (TAP) project will mean a more sustainable supply of energy, in line with the European Union’s objectives, a source in Spain’s Enagas company, which is one of the project’s shareholders, told Trend.

“Enagas is committed to the TAP project as a key infrastructure for Europe,” said the source. “It is a part of the larger Southern Gas Corridor project and will offer connections to multiple North European and Europe’s South East region markets.”

Regarding the company’s future activities, the source said that in the coming months, Enagas will continue supporting and cooperating in the implementation of the project.

Furthermore, the company supports and assists in the promotion of benefits of TAP from stakeholder and governmental relationship issues, according to the source.

“Enagas has positioned itself as an active shareholder in TAP by leveraging on its ample experience in the midstream sector,” said the source.

“Together with its fellow shareholders at TAP, it has supported the company

[TAP AG] in defining and executing its strategy, and on tackling TAP’s main challenges.”

As for the possibilities of further expanding the scope of the company’s activities, the source noted that Enagas is focused nowadays on consolidating the position in regions where it already operates.

TAP is a part of the Southern Gas Corridor, which is one of the priority energy projects for the European Union.

The project envisages transportation of gas from Azerbaijan’s Shah Deniz Stage 2 to the EU countries.

The pipeline will connect to the Trans Anatolian Natural Gas Pipeline (TANAP) on the Turkish-Greek border, run through Greece, Albania and the Adriatic Sea, before coming ashore in Italy’s south.

TAP will be 878 kilometers in length (Greece 550 kilometers, Albania 215 kilometers, Adriatic Sea 105 kilometers, and Italy 8 kilometers).

TAP’s shareholding is comprised of BP (20 percent), SOCAR (20 percent), Snam S.p.A. (20 percent), Fluxys (19 percent), Enagás (16 percent) and Axpo (5 percent).

The President of Venezuela Nicolas Maduro has said the country is to import large quantities of Russian wheat. The announcement followed a phone call to Russian President Vladimir Putin.

“We are ready, all the documents have already been signed, and very soon Russia will supply Venezuela with 60,000 tons of wheat per month on a regular basis starting from this year,” Maduro said.

He added five enterprises to assemble Russian trucks would start soon in Venezuela.

Maduro and Putin discussed strategic partnership and the implementation of mutually beneficial projects.

According to Russian agricultural watchdog Rosselkhoznadzor, Venezuela relies almost exclusively on imports of wheat. Last year the country imported about 120,000 tons of grain per month from the United States and Canada, said the agency.

Last year’s Russian grain harvest was the highest since 1978. The country has significantly boosted its grain exports over the past two years, outpacing the world’s other big wheat exporters, Canada and the US. Russia exported 34 million tons of grain last year from a record crop of 119 million tons. Shipments to Egypt and Iran have also resumed.

Saudi Arabia has expressed an interest in buying more grain from Russia, including wheat. In 2015, the kingdom was the biggest buyer making up 28 percent of Russian grain exports, larger than Turkey (25 percent) and Iran (12 percent). The head of the United Nations’ Food and Agriculture Organization (FAO) Jose Graziano da Silva said Russia has made considerable progress in developing its agricultural sector and is a major player in the world agricultural market.

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PUBLICITY

May 22, 2017 #193

May 22, 2017 #193

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 76-g Chavchavadze Ave., Tbilisi Tel: 231-11-61, 231-14-54 E-mail: 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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May 22, 2017 #193