Caucasus Business Week #203 by Caucasian Business Week

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July 31, 2017 #203

July 31, 2017, Issue 203 - www.cbw.ge

Opinion Cooperation between Business and Academic Circles is Necessary for Georgia Pg. 11

Econo-mix Financial Resources Declining in Agriculture Sector

Pg. 4

Natural Juices May Rise in Value

Nika Kamushadze: I Pay Attention to Operativeness When Choosing a Media Outlet Pg. 8 Private Sector Avoids Financing Startups

Startup Georgia program was launched by initiative of the Georgian Prime Minister with the aim to develop startup businesses in the country. Any persons, who have economically profitable and efficient ideas, are welcome to participate in the project. These ideas must be attractive in terms of investments and profits. In this case, the beneficiary can obtain financial support component from 15 000 to 100 000 GEL. Moreover, the Authorities assume obligation to draw additional investments if the project is a success and introduce successful projects to Silicon Valley. However, it should be noted that the private sector is not interested in startup ideas, in practice, and the Authorities have to bear the whole burden, while in western countries the Authorities do not interfere in financing startups, in practice. In the world’s developed economies, startups occupy significant ratio in shaping GDP. Moreover, startups provide good opportunities to create new job places on the market. Pg. 9

IMF – Influential International Organization International Monetary Fund (IMF) is one of the most important and influential international organizations with 184 member countries, including Georgia.

Newsroom

2 Government

Georgia prepares for grape harvest 2017

The Government of Georgia is supporting the wine sector ahead of the major harvest season during which more than a hundred thousand tonnes of grapes will be picked, packed and sold locally or exported.

Government to Postpone Tobacco Packing Bill Enactment for 5 Years

Under the changes, the 31st December of 2022 is considered to be the date of enactment of sales of tobacco products with standardized packing, instead of January 1, 2018.

economy

Farmers krom Khulo Exported 4 tons of Georgian Garlic to the EU

Within the pilot program, Adjara A.R. The Agro Service Center of the Ministry of Agriculture linked the farmers with the Ukrainian supplier who supported export of Georgian garlic to Germany.

GAverage Income Amount is 500 GEL According to NDI Survey

When asked about family’s expenses,and income in the past month, the 22% – says that his family’s income was GEL 301500 last month. The expenses of families were the same amount as income for 24 %.

banking

Liberty Bank Tops Rating of Commercial Banks

Crediting portfolio of commercial banks marked 19.316 billion GEL as of July 1 (H1/2017). Larization coefficient is 41.01% (01.06.2017 – 18.7 billion; + 3.2% m.m; 40.1%).

VTB Bank Grows Crediting Volume in 2Q17

VTB Bank has increased crediting volume. The growth in the second quarter totaled 3.4%. Net profits have grown by 54% (Q1/2017 -10.224 million). As of July 1 (H1/2017), VTB Bank ranks fourth in terms of assets with a 4.8% ratio.

business

SOCAR Won a Dispute to the Competition Agency at the Court of Appeal

According to Levan Giorgadze, the court found the arguments against the companies unsatisfactory and returned back the case to the regulator to study the market.

Peach Export Increased by 44%

Today total value of the peach amounts to 2.2 million USD. It should be noted, that preparation of the necessary document is made with “one window” principle in order to support peach realization.

company

New IFC Partnership in Georgia to Help Save Water IFC has signed an agreement to help the GWP company, a leading supplier of water in Georgia, conserve resources and become more energy efficient, improving its competitiveness and environmental performance.

July 31, 2017 #203

Georgian PM: “We have the strongest emotional and strategic unity with Israel”

eorgia’s Prime Minister Giorgi Kvirikashvili has met Georgian Jews in Israel yesterday and stressed the two nations have not only the strongest emotional unity, but also common strategic interests. The unity should be reflected in our economic partnership, which is the aim of my visit to Israel,” Kvirikashvili told the Georgian Jews and stressed their huge role in further enhancing Georgian-Israeli centuries-long ties. The Georgian PM stated the two nations have “big potential” to successfully cooperate

in many directions. These directions are tradeeconomic relations, education, innovation technologies, high technologies…” Despite the fact we have excellent cooperation for agriculture and tourism we can do more in these fields,” Kvirikashvili stated. The PM highlighted that the two countries planned better cooperation for security as well. Kvirikashvili briefed the attendees about his meetings with his Israeli counterpart, president, parliament speaker and the opposition leader in the Knesset.

He stressed Georgia expected Israeli Prime Minister Benjamin Netanyahu’s visit to Georgia with the country’s businesspeople. I invited Mr. Netanyahu with big pleasure to Georgia, the leader who is highly respected not only in Georgia, but worldwide. We are eager the visit to take place soon,” Kvirikashvili stated. The PM thanked Israel for supporting Georgia’s sovereignty and territorial integrity and promised the Georgian Jews to be their guide when coming to Georgia and discussing the prospects of the two countries’ relations with them.

Iranian Mellat Bank enters Georgian Market

ranian Mellat Bank enters Georgian market. The CEO of Iran Chamber of Commerce, Rahim Abachi told CBW exclusively that Mellat Bank recently has been actively spreading information in the Iranian Media about the plans on entering the Georgian market. According to Mr. Abachi, the talks about the entrance started in May. “However, I can’t really predict the future and say whether Mellat Banks begins operating in Georgia, or not,” said Abachi. He also noted that unless Iranian sanctions are resolved, there is no sense in entering the Georgian market. “If the bank arrives and makes no transactions, then what is the point?” Abachi said. The Ambassador Extraordinary and Plenipotentiary of Georgia to Iran and Islamic Republic of Pakistan, Ioseb Chakhvashvili told CBW exclusively that unless Iranian Bank opens in Georgia, money transactions problem stays omnipresent issue. “Several months ago Prime Minister of Georgia, Giorgi Kvirikashvili visited Iran, where he met first vice president of Iran, Eshaq Jahangiri. At the meeting there was talk of deepening trade-economic

BUSINESS WEEK caucasus

The Editorial Board Follows Press Freedom Principles Publisher: LLC Caucasian Business Week - CBW Address: Aleksidze Street 1 Director: Levan Beglarishvili; Mob: +995 591 013936 Sales: Mob: +995 558 36 61 07 WWW.CBW.GE Email: caucasianbusiness@gmail.com

relations between the two countries. Maybe in the frames of abovementioned relations the Iranian bank enters Georgia,” told CBW Mr. Chakhvashvili. It is unknown to Rahim Abachi, the CEO of Iran Chamber of Commerce, whether Mellat Bank has already applied the National Bank for obtaining a bank license, but he notes that negotiations are ongoing. However, the details of talks are unknown to him. As for the question, will the transactions to Iran could be made only by Iranian bank after the entrance of Mellat Bank in Georgia, Rahim Abachi explains that in this case the money transfers between two countries will probably be made by Mellat Bank only. CBW is working on this issue and the comments from Embassy of Iran in Georgia and Georgian National Bank will be delivered later. Bank Mellat is a private Iranian bank. Bank was established in 1980 after uniting 10 banks. Currently Mellat is one of the largest commercial banks in the Islamic Republic of Iran, ranking among the top 1000 banks of the world. Mellat Bank has 11 international branches and services in 11 countries, including Afghanistan, Azer-

baijan, France, Germany and Great Britain. Iranian Media actively highlights the process of entering Mellat Bank to Georgian Market. According to Iranian Financial Tribune, Mellat Bank Yerevan, subsidiary of Iran’s Bank Mellat, will open a new branch in Georgia by the end of the first half of the current Iranian year (Sept. 22), said Bank Mellat’s chief executive. “We have obtained the permission to establish a branch in Tbilisi and plan to start employing staff,” Hadi Akhlaghi was also quoted as saying by IBENA on Sunday. Bank Mellat opened a subsidiary in Armenia in 1996 in accordance with the agreement signed with the Central Bank of Armenia. Back in October 2016, it was announced that Yerevan-based Bank Mellat CJSC, fully owned by Iran’s Bank Mellat, increased its authorized capital in compliance with the new requirement of the Central Bank of Armenia. The bank also opened its new headquarters in Yerevan. Bank Mellat also plans to expand ties with both Malaysia and South Korea in the coming months. Mellat Bank currently has 1,900 branches inside Iran and provides services to more than 30 million customers.

Editor: Nutsa Galumashvili. Mobile phone: 595 380382 Reporters: Nina Gomarteli; Mariam Kopaliani; Merab Janiashvili Technical Assistant: Giorgi Kheladze;

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

July 31, 2017 #203

publicity

econo-mix

July 31, 2017 #203

Financial Resources Declining in Agriculture Sector In 2017 State Subsidies Shrank in Agriculture Sector, Wine Subsidization and FDI Inflows also Declined

You can rehabilitate Borjomi forest by simply donating waste paper for recycling

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Merab Janiashvili Economic Analyst

It should be noted that foreign investors have never found agriculture sector as an attractive direction, however, FDI inflows dropped to zero, when the ruling team decided to ban sales of agriculture land plots to foreign citizens.

‘‘

BASHA Bank initiated yet another environmental project - this time to attract more companies to on-going campaign “Agadgine” by BIA and Treepex, that aims at rehabilitation of Borjomi forest. Tissuepaper, being a partner of this campaign, will collect waste paper from the volunteer companies and will recycle it. GEL 0,15 will be transferred to the account of “Agadgine” for each collected kilogram of paper. The accumulated funds will be applied for planting trees and taking care of them for the next 5 years. “This campaign is a continuation of PASHA Bank’s green CSR activities. The companies with a desire to participate in rehabilitation process of the forest will be able to do so without any monetary cost. All they have to do is: instead of throwing their waste paper away, to donate it for recycling to “Tissuepaper”. We hope that this campaign will also help develop the culture and habit of collecting and recycling used paper. I want to use this opportunity and thank Association of Communication Agencies of Georgia (ACAG) for their support. They organize Print contests in scope of which their member agencies compete with each other in creating print advertising images on social issues. They helped us with creative communication material for this social campaign, for which we are very grateful. We hope that together with many other companies, they too will join forest rehabilitation campaign by donating their waste paper,” – said Anano Korkia, Head of PR and Marketing Department of PASHA Bank. “We are glad that this campaign is launched in scope of “Agadgine”. It is important that many companies take interest in this initiative. We have already planted about 35,000 trees on the territory of burnt Borjomi forest, however, this is not enough for rehabilitating forest fully and 750,000 more trees need to be planted. Therefore, more involvement and activity is needed from companies. Considering that BIA has access to up to 32,000 active local companies via our platform, I am sure that the information about the campaign will be effectively communicated. The rest depends on the goodwill of the companies, whether they want to donate their waste paper for a good cause instead of just throwing it away. By this simple choice we are enabling them to participate in rehabilitation of Borjomi forest that was burnt down during the war of 2008,” – commented deputy director of BIA, Salome Kukava. “Tissuepaper is a Georgian company focused on production of a variety of paperbased products. Our factory is equipped with modern machinery that enables us to recycle large volume of paper. We will gladly assist the companies that contact us in scope of this campaign by supplying them with special boxes as well as by transporting the collected paper for recycling. We are ready to transfer 0.15 GEL for each collected kilogram of paper to the account of “Agadgine,” thus contributing to the rehabilitation of the forest. I would like to note as well that we can collect paper both shredded and in its original form. It is also important that we have tools and processes that enable us to guarantee the confidentiality of information that could be contained in papers earmarked for recycling,” – commented Alex Stroganov Commercial Director of Tissuepaper.

nlike previous years, in 2017 Government of Georgia reduced subsidizing agriculture sector. Under the 2017 state budget, agriculture sector subsidization has shrunk by about 83 million GEL. Agriculture Development program has been reduced by 75.430 million GEL; financing of food safety, plant protection and epizootic development shrank by 450 000 GEL; financing of research works in agriculture sector declined by 3.400 million GEL. At the same time, this year government will stop subsidizing several grape varieties and certain resources will be allocated from state budget for promotion of brands production. The end of the year will show how efficiently the Government will maintain this position. The Authorities were trying to cease subsidization programs in previous years too, however, protests during vintage were making the Authorities concede positions. Government of Georgia has passed a special government decree for conducting the 2017 vintage in organized and efficient way. Agriculture Minister Levan Davitashvili said that Government will show new approaches concerning the 2017 vintage organization, based on the current situation in winemaking field. «Over the past years wine exports is growing. We have expect the 2017 vintage to proceed in organized manner and the private sector to show big interest in purchasing grapes. Consequently, state subsidies in the grapes processing part will not be required on main industrial varieties such as Saperavi, Rkatsiteli and Kakhetian Green», Levan Davitashvili said. The Minister also pointed out that Government continues brand production promotion through various mechanisms, including through preferential agro loans. «We have seen that over the past years quality of Georgian brand and consequently, production process was improved and we will have compensation on Rkatsiteli and Kakhetian Green. If companies produce the brand and concentrated sweet of grapes, they will receive state compensations in the amount of 35 Tetri so as their pricing policy be competitive and the companies will have more motivation to join the process. In this way we support production of brand spirits too», Levan Davitashvili said. A number of innovative projects will be carried out for the field recovery, the Minister said. «We make changes to wine specifications in case of Khvanchkara, which is a wine of protected origin. According to these specifications, Khvanchkara processing should be carried out immediately in the zone of origin and this is the most important innovation for the region residents and domestic winemakers. This transition should be carried out in painless way. We give time to winemaking companies for preparation

works up to 2019», Levan Davitashvili said. Along with declination in state finances, amount of private investments is also decreasing in agriculture sector. According to Geostat, national statistics service of Georgia, no foreign investment was made in agriculture sector in the first quarter of 2017, while 10 million USD foreign direct investments were made in agriculture and fishing sector in 2016. It should be noted that foreign investors have never found agriculture sector as an attractive direction, however, FDI inflows dropped to zero, when the ruling team decided to ban sales of agriculture land plots to foreign citizens. It is worth noting that in 2007-2016 FDI inflows in the country made up 12.9 billion USD, of which 3.155 bullion USD (24% of total FDI) was made in transport and communications sector, while the lowest volume was made in agriculture sector – 134 million USD (1% in total FDI). If we examine the GDP growth structure, we will see that over the past 10 years the finance sector has recorded the highest growth pace. In 2006-2016 Georgia’s economy grew by 4.4% on average. In this period the highest indicator was recorded in finance sector (indirect evaluation of financial mediation service + finance activity). The finance sector was growing by 25% on average a year. As to the least growing sectors over the past 10 years, agriculture sector is leader with under 1% growth pace. For example, in 2006-2016 annual averaged growth pace in agriculture, fishing and forestry, hunting directions made up 0.7%. Despite FDI reduction, Government makes optimistic statements in relation to agriculture sector. «Agriculture is a conservative field and international investments cannot be used for any conclusions”, Agriculture Minister Levan Davitashvili noted when commenting on FDI inflows to agriculture sector. Over the past years, more than 1 billion USD has been mobilized in agriculture sector with the support of Georgian Authorities and private sector, Levan Davitashvili said. «We have very positive tendencies and increased prices of agriculture lands prove this. Activities of primary farmers are related to their own land plots and as a rule, farmers do not make foreign investments. In Georgia, where land pots are of special value, we have diverse climate zones and our programs make focus on internal investments», Davitashvili said. Taking into account that Government has reduced subsidies in agriculture sector and FDI inflows have also declined, the agriculture sectors growth will drop further. It should be noted that today 48% of total employed residents are registered in agriculture sector. Consequently, current problems in this direction refers to a major part of our society.

“The unity should be reflected in our economic partnership, which is the aim of my visit to Israel. These directions are tradeeconomic relations, education, innovation technologies, high technologies. Despite the fact we have excellent cooperation for agriculture and tourism we can do more in these fields”.

Giorgi Kvirikashvili Prime Minister

July 31, 2017 #203

publicity

opinion

July 31, 2017 #203

IMF – Influential International Organization International Monetary Fund (IMF) is one of the most important and influential international organizations with 184 member countries, including Georgia.

Shota Gulbani

President of Association of Young Financiers and Businessmen

Objective of IMF foundation was to ensure international monetary cooperation, stability of exchange rate and economic growth. Key function of the organization is to provide temporary financial assistance to member countries in terms of improvement of balance of payments. IMF makes focus on macroeconomic condition of the member countries, including on consolidated expenditures, revenues, level of employment, level of inflation and general balance of payments of the country. Consequently, objectives of IMF is to: • ensure international monetary cooperation through resident institutions, that provide consultations and cooperate on international monetary problems; • ensure stability of exchange rate, agree exchange rate and prevent competitive exchange rate between member countries. • Ensure an establishment of multilateral system of payments. • Obtain confidence of member countries so as the member countries receive the fund’s key resources and the right for use of these resources may be transmitted to member countries, in exchange for certain guarantees so as they improve balance of payments without carrying out measures that may bring disastrous results for their economy, reduce unequal level of balance of international payments of members countries. Special Drawing Rights - SDR Special Drawing Rights (SDR) are international reserve assets developed by IMF in 1969 counting that current money assets and their growth would not be sufficient for promotion of global trade growth. In that period main reserves were represented in gold and US dollar. Consequently, SDR was represented as additional reserve asset that IMF could place in members time to time if necessary or abolish it if necessary. SDR is also called as paper gold. Despite they do not have physical form, they are transmitted to member countries, in the form of percentage of their quota. For example, IMF has placed 21.4 billion SDR in members countries since foundation. IMF member countries are able to use SDR among them and in their relations with IMF. SDR is a unit of measurement for IMF and many other international organizations. SDR price is determined in

everyday regime by use of basket of basic currencies: EUR, USD, GBP and Japanese Yen. As of July 27, 2017 SDR was equal to 1.40 USD. The structure of the basket is revised every 5 years to make sure that origin of currencies in the basket corresponds to the importance of currencies in the world’s trade and financial systems. IMF provides support to its member countries through the following methods: • revision of national and global economy and financial development, monitoring and giving suggestions to member countries about economic policy; • lends strong currency to foster regulations of policy and reforms to improve balance of payments and assist in economic growth; • offers technical assistance in organization of trainings for representatives of Governments and central banks within their competences; Cooperation between IMF and Georgia For developed countries, as well as starting announcement of independence of Georgia, IMF is a significant partner organization. IMF recommendations have made serious contribution to Georgia’s economic development, despite certain shortcoming were detected later, in the process of moving to market economy from plan economy. Recommendations and evaluations that IMF has been offering to governments of Georgia over the past decades for maintaining financial stability and improving general macroeconomic picture brigs positive effects. We should also mention financial transfers for improving current account of balance of payments. For example, according to the last program, an agreement has been achieved with IMF on inauguration of a 3-year program in Georgia and this program will be financed by 285 million USD under Expanded Financing Mechanism. The program is to attain high pace of inclusive growth, ensure fiscal stability of the country, reduce vulnerability of the economy to external shocks, strengthen fiscal and monetary institutions and improve financial and social protection mechanisms. Expanded Financing Mechanism also supports economic reforms of the Authorities.

July 31, 2017 #203

market

Government of Georgia is working on introducing regulations on natural juices and strong drinks. According to Minister of Agriculture Levan Davitashvili, business sector has proposed to regulate the natural juices market and the issue is being arranged by the Ministry. As to regulations for strong drinks, previously Gin and Whiskey were not produced in Georgia and consequently, there was no necessity of similar regulations, the Minister said. As reported, introduction of regulations will determine both labeling standards and the rule of game will be regulated between the market players. The Caucasus Business Week (CBW) has inquired reasons for introduction of technical regulations on juices and strong beverages and the real challenges before the sector. KAMPA David Buadze, founder of KAMPA juices manufacturing company, explains that a part of domestic manufacturers produces decoction instead of natural juices and creates unequal conditions for honest companies on the market. Therefore, it is necessary to regulate natural juices on the market and determine the rule of game on the market and this process will determine what is juice, nectar and beverages containing juice, David Buadze said. «Unfortunately, some manufacturers indicate on the label that the product is juice, but in reality the product is falsification, for example, decoction. Consumer thinks that all products with the image of fruit and beverages are juices, but this is not reality. Juice is a drink with 100% fruit content. But the drink with less percentage of fruits is a nectar, while if the product contains a very low level of fruit, it is considered to be a drink containing juice. Today there are companies on the Georgian market that assert they produce orange juice, while orange content in the product is only 45%», the KAMPA founder noted and added that in reality consumers buy nectar and this is not indicated on the label. David Buadze said that for many years they demand to regulate the juices market, like the market of milk and dairy products. We are involved in natural juices regulation process jointly with Ministry of Agriculture, Buadze said. KULA Unlike KAMPA, KULA company has no information about new regulations. The company director Vano Goglidze said that Ministry of Agriculture did not have contact with the company about this issue. Coca-Cola Bottlers Georgia «90% of juices on the market are not natural products», businessman Temur Chkonia said and stressed that it is necessary to set regulations on the market of natural juices. We have been operating on the soft drinks market for 40 years and all advertised products are adulterated products. Therefore, government should interfere in this process and implement changes and control this field. When company representatives say that their products are made

Natural Juices May Rise in Value Expected Effects of Regulations on Natural Juices and Strong Drinks of 100% natural products, this is a fraud. “We always indicate the real structure at our labels, that is we always indicate volume of natural juice. Other companies do not indicate such figures. This is a formula of our success. This is not falsification, this is an ordinary lie and deception of consumers. They misuse human psychology as if they produce healthy product. For example, when they assert that they produce tarragon and peach lemonades of natural juices, this is an absurd. This is catastrophe and this is huge lie. Use of green-colored Tartrazin, for example, is inadmissible. These ingredients are forbidden in many countries”, Chkonia said. 90% of natural juices do not satisfy standards and they are not natural products, he noted. As reported, Tartrazine (U102 yellow color) makes especially negative impact on children, causes allergy, skin diseases, lowers attention, causes hyperactivity, violates vision and sleeping functions. In response to the question why Government introduces the mentioned regulation, Chkonia explained that Government seems to have guessed that there are problems in this direction

and new regulations should not be introduced for only one day, but a valuable system should be created to receive specific and efficient results. All efforts should be oriented on real results, Chkonia said. Sometimes, regulations are of superficial character and Government may just introduce technical regulations without real effect, while, real establishment and popularization of these regulations need certain time, the businessman said. In response to the question whether introduction of technical regulations may eject several manufacturers from the market, Chkonia explained that similar risks absent, because today manufacturers are sure that these regulations will not work in reality. Georgian Lemonade company Varaz Aspanidze, head of Georgian Lemonade company, says that along with regulation of natural juices, it is necessary to regulate soft drinks too. The market should be regulated and this should be reflected in protection of consumer rights. It is a right decision to regulate natural juices and strong drinks market, because the so-called natural juices that are indicated as nectars are not natural products in reality. Market of natural juices

needs regulations, however, it is also important to regulate soft drinks market too, in this case lemonades market, he said. There are problems with quality on soft drinks market. Namely, Tartrazine that is used in lemonade production is a food colorant and it is inadmissible to receive this substance, however, entrepreneurs have to use this substance, the businessman said. “You will meat products, including lemonades, that are not recommended for consumers. This factor creates unfavorable condition for us and any entrepreneur, who are oriented on quality. As to our lemonades, for example, Tartrazine is in only one variety – tarragon lemonade. We make tarragon lemonade of natural tarragon, we make infusions ourselves, however, we add food colorants later anyway, because the tarragon gives very light color. Consequently, we cannot sell it in this way. Consumers do not accept similar products. Therefore, we have to add food colorants. This is not venomous substance, however children and nursing mothers should be kept away from this product”, Aspanidze noted. Georgian Lemonade company uses supplements of natural sugar in all other lemonade products. “Any laboratory in the world can examine Khiliani lemonade and prove that none of them contain Tartrazine, excluding Tarragon lemonade”, Aspanidze noted. Product labels should indicate if they contain tartrazine and this substance is not recommended for children and nursing mothers, Aspanidze said. If entrepreneurs replace Tartrazine by food colorants made of marine algae, product prices will rise, Aspanidze added. “I have many taken attempts to use this substance. We made various calculations, but failed to reflect current market prices”, Aspanidze said. Only labeling cannot resolve these problems, because a major part of consumers does not pay attention to it. Only a small part of consumers read label in reality, Aspanidze noted. Consumers should be informed and their awareness should increase, the businessman noted. “Consumers should be accustomed to reading label indications,= and only after that the situation will be regulated and only after that entrepreneurs will satisfy the regulations, however, product prices will rise on the market and after that consumers will have to decide themselves whether to buy expensive products or pay lower prices for products with Tartrazine”, Aspanidze said and added that it is the interest of honest entrepreneurs to pay due attention to quality standards.

PR Person

July 31, 2017 #203

I Pay Attention to Operativeness When Choosing a Media Outlet Interview with Nika Kamushadze, Head of Marketing and Public Relations Department of National Agency of State Property - Which PR agencies inspire you? - From global PR agencies, American PR companies are role models that work with famous brand in the world. Especially, agency Edelman that was elected by Holmes at 2016 Global Agency of the Year. It’s notable their experience gained during 60 years, and creative, which promotes, defends and creates reputation of a giant brand. Edelman’s trust barometer is always marked by high rates, which gives them the advantage over the background of great competition. - What kind of media outlets do you follow-up on daily basis? - I divide necessary information based on priorities, which is primarily business according to the business of my organization. Then I identify active media outlets in this direction and become active user of their communication channels. I also use the software for media monitoring, but often information runs late and I don’t advice anyone to trust just that. In the process of selecting media outlets I pay attention how operative they are, as it’s very important in my career. - What is the difference between advertising and PR? - It’s good that we mention difference, as a lot of business in Georgia think it’s the same. PR is a part of strategic communication process, which has to create bilateral, lucrative relations between organization and customer. PR is especially important when communicating with your audience and send them messages. While, we pay for advertisement, PR can be done for free. I use the ways

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PR is a part of strategic communication process, which has to create bilateral, lucrative relations between organization and customer. PR is especially important when communicating with your audience and send them messages.

like: press release, press conferences, briefings, etc. However, when you pay for advertisement you can control the content, costumer engagement and evaluate the process by marketing metric. The difference is also in awareness, customer knows that we have spent money on advertising and we try to sell product/service to them. As for PR, information might be spread through third party and have more affection. - Which media placement of yours makes you proud during your career? - Pride is a bit exaggerated saying, but there were successes in this direction, which expressed in specific figures/ results. In 2016, successful tourist season and increased tourism trend was an inspiration to create a product which was meant for investors to provide the state property of various characteristics throughout the country for the construction of hotel-infrastructure. I think we worked together with the team to create an effective communication plan where the main focus was made on PR. It hasn’t even been one year since the product lunched but we already waiting for dozen of million GEL investment. - How do you integrate PR and social media? - I don’t know any journalist who is not registered on social network, accordingly, I post information on Facebook or Twitter and if content is good they will definitely share it. It works well to share social projects and exclusive information on social

network based on our organization. - How would you evaluate your results? - I try to synchronize my work with the aims of organization, I plan strategy with my team accordingly. I always measure efficiency by marketing metrics, where you can analyze results based on figures. Results are various, although I am capable to evaluate situation adequately. I think, the one who has a better creative can achieve specific advantage, so that I’m trying to be active in this direction, unfortunately my time resource is constrained. I think, I need time management trainings one more time. - What will be your move if a client disagrees your PR strategy? - I focus on statistics and other measurable indicators when working on PR strategy. Analysis and PR campaign is created easily this way. In case a client disagree, I will consider that PR strategy doesn’t match to organization strategic goals and tasks. - How do you define thought leadership? - Specific advantage is defining market needs sooner than others. This is the best way to fulfill business tasks easily. - What is most important in PR field, what would you change? - The most interesting part for me is to lead organization image, as brand has to be more than logo, motto and corporate colors. It’s important to create a reputation that associates with trust and positive expectations, which is an opportunity to increase sales.

Startups

July 31, 2017 #203

Private Sector Avoids Financing Startups Startup Georgia program was launched by initiative of the Georgian Prime Minister with the aim to develop startup businesses in the country. •

www.bfn.ge

Any persons, who have economically profitable and efficient ideas, are welcome to participate in the project. These ideas must be attractive in terms of investments and profits. In this case, the beneficiary can obtain financial support component from 15 000 to 100 000 GEL. Moreover, the Authorities assume obligation to draw additional investments if the project is a success and introduce successful projects to Silicon Valley. However, it should be noted that the private sector is not interested in startup ideas, in practice, and the Authorities have to bear the whole burden, while in western countries the Authorities do not interfere in financing startups, in practice. In the world’s developed economies, startups occupy significant ratio in shaping GDP. Moreover, startups provide good opportunities to create new job places on the market. These countries were developing attractive startup ideas stage by stage before these companies grew into successful companies, before the so-called EXIT. Western Model of Startups Development First of all, startupers are grown at vocational schools. These schools prepare startupers very well for doing business. The second phase implies Angel Investors, people, who make first financial injections in startups. Accelerator environment is the next stage. After short presentation in an accelerator, key objective of the company is to attract additional sources for company staff to pay a certain amount of regular salaries, so as a young company spend more time on working on products. The next stage implies attracting venture capital from a company. Attracting venture investments is one of the last steps before the EXIT. Unlike ordinary investments, venture investments imply high risks. Moreover, in exchange of investments, an investor becomes an owner of a considerable part of company and this is key advantage of venture investments. In this case, if the company is sold successfully or EXIT is carried out successfully, the investor will receive significant benefits. After EXIT or sales of a company, the company is not considered to be a successful startup. Reasons Private Sector is not Interested in Startups in Georgia Today, Georgia lacks for money resources.

Today, it is impossible, in practice, to persuade Georgian business to put money in startup business and there are objective reasons. Domestic investors lack for due qualifications to appraise potential of this or that startup idea.

•

More than 50 startups were financed as part of Startup Georgia program. Because of the mentioned problems, a major part of these projects were financed by the Government.

Commercial banks credit businesses in rare cases and issue business loans with high interest rates. Therefore, businessmen cannot serve so expensive loans and develop business. Naturally, in this reality, no commercial bank will lend money to startupers. It should be noted that commercial banks avoid assuming similar burden in other countries too and, basically, business sector and venture funds take part in financing startups, but we have alarming situation in this direction. Today, it is impossible, in practice, to persuade Georgian business to put money in startup business and there are objective reasons. Domestic investors lack for due qualifications to appraise potential of this or that startup idea. At the same time, evaluation of startup business is a special field, because investor puts money in idea only. Consequently, on the domestic market startups are considered as high-risky businesses, destined for failure. Naturally, this is erroneous approach. The mentioned problem was relevant in developed countries previously and they resolved this problem through venture funds. Venture fund is a certain startup-oriented investment fund, which has its own experts and it is upon these experts to appraise a startup. They comprehen-

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First of all, startupers are grown at vocational schools. These schools prepare startupers very well for doing business.

sively examine the startup idea and if the idea has real economic perspectives, they invest money in startup. However, besides exploration of business plan, these funds are based on mathematical calculations too. For example, if a venture fund has financed 5 startups and even one of them has justified, this fund will raise money of the remaining 4 failed projects. This is mathematical calculation and it is erroneous opinion as if venture funds play only Lottery. Conclusion More than 50 startups were financed as part of Startup Georgia program. Because of the mentioned problems, a major part of these projects were financed by the Government. However, as noted, startup is an ordinary business and we should not have illusions around valuable development of this direction without involvement of private sector. Penetration of Georgian startups into foreign markets prove this consideration. This process is the result of a lack of ecosystem in Georgia. In the end, today the Authorities ensure certain opportunities for young talented people to implement their ideas and also assume obligation to introduce these starts to Silicon Valley, but like all economic fields, it is unimaginable, in practice, that the Authorities continuously replace the private sector.

business

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EV Charging Station at Tbilisi International Airport There is an electric car charging station arranged at Tbilisi international airport car park. The new service will be available free of charge for any electrical car owner. The project is a result of cooperation between TAV Georgia and E-space. It should be mentioned that in 2008 Tbilisi international airport was denominated to be the first “Green Airport” in the Caucasus region. Since July, 2016 the airport has been using solar energy as well, as part of the energy consumed by it, which proves that for many years by now TAV has been operating in Georgia in compliance with the environmental standards.

Donate and Get Items For Free through Fulwish Website Fulwish is a platform where anyone can donate the items they don’t use anymore. We all have such things at home that we should not throw away as someone might be more than happy to use it. Fulwish sets us free from unnecessary subjects. The platform concept has another side too- there are people who need some specific item, so they can search for it there. Author of the idea is Giorgi Goguadze; Giga Mekhrishvili and Eliso Kirvalidze supported him to fulfill the project. As a result, it’s been two months since Fulwish is available, which already attracted 2100 users and 140 items had been donated.

TBC Bank’s ‘Startuper’ finances startups with GEL 2 mln TBC Bank’s program Startupper is summing up its 5-month results. Since the start of the program, 50 startuppers have already used the special loan of the program and financial resources of 2,000,000 GEL have already been issued to promote starting businesses. Startups participating in the program operate in various fields, including construction sector, manufacturing of shoes and clothing, agriculture, tourism, transportation and logistics, healthcare, technologies, etc. In addition to Startup Loan, a Package of Banking Products, Startup Energy Card (a joint card of SOCAR Georgia Petroleum and TBC Bank, offering a discount of 15 tetri on fuel) and Startup Leasing were specially created for the Startuppers within the program. Starting businesses have an opportunity to use reduced rates for the mentioned products. In the course of 5 months, up to 6,000 startups have already used the Startupper banking products and up to 200 startuppers have used Startup Energy Card. Non-financial activities of the program attracts considerable interest of startups as well. A course of trainings and master classes specially developed for startuppers and led by professionals of various fields was attended by up to 300 startuppers. The course assists startuppers to improve their business skills. Another nonfinancial part of the program is media support and popularization of startups. Partnering media websites: Ambebi.ge, Bpn.ge, Marketer. ge, News.ge and section on Startuppers of the Program “Sakmiani Dila” (Busy Morning) have introduced 170 startups and their founders to the public and prepared articles, interviews and reports on them for 5 months. As part of the program, special updates are constantly developed for startuppers and it is planned to carry out a number of initiatives and projects in the near future.

Schoolgirl’s Business 2050 Meters Above Sea Level in Bakhmaro The house which door would open only in summer, turned into an art-café within a week and became a host of locals and tourists 2050 meters above sea level. 17 year old Mariam Ejibia opened a first art-café in Bakhmaro. Mariam used to spend holidays in Bakhmaro. She had an idea to create space where people back from hiking would gather, have some delicious food, listen to music and simply spend an interesting evening. With the help of her mother, the ode had become an art space. Mariam took care of interior and exterior decoration by herself, neighbors gave her unique pictures from their old albums, photographer Giorgi Isakadze and artist Tatia Koberidze presented their works in art-café.

”Why chose the name artcafé? because, I want artists to have an opportunity to represent and share their works. It can be a mountain resident, tourist, tenant, everyone who wishes”- says Mariami. Locals are very positive about café opening. 4 people are employed at art-café, 2 of them are locals. Khachapuri is cooked by the cheese from next the next village, special tea by blueberry, which is found in Guria mountains. Locals supply café with all the products. Art-café has already become a main place to gather in Bakhmaro. Locals, tourists and tenants discuss about different topics. Mariam will close the bar on September 15th when Bakhmaro will start to be covered under the snow until next summer.

Healthy And Natural Fast Food Mobile Object Zapravka in Bakuriani Zapravka is a food mobile object in Bakuriani, the author of the idea is 19 year old student of Agrarian University, Gela Jaliashvili. Besides his role of a founder, he also is a baker, page administrator, cleaner, cashier and everything else that the situation requires. Gela Jaliashvili had an interview with Marketer. What was the stages of implementation of the idea and who provided with the initial capital? I saw food trucks when watching videos on Youtube. As Georgian love to eat in general, food objects work well, that’s how I decided to create mobile food object Zapravka. Since I had no money to buy a truck, I offered a share to the owner of a bus, we agreed successfully. The following processes were to improve the products- burgers and hotdogs. It was most important to get the result of the taste we desired. My father was supporting me, who lended me money free of charge. Why did you choose Bakuriani location? Mobile food objects are prohibited by the law in Tbilisi,

also it gets quite empty during summer. I decided to bring first Zapravka to the place where there wouldn’t be a problem to park. Bakuriani is our first stop. We had some other optionsBatumi, Gemfest and Kobuleti. According to the fact that I’m not experienced enough, I wouldn’t be able to serve large number of people. That’s why I went to a calm and nice placeBakuriani to develop myself for future plans. Why did you give it a name Zapravka (petrol station)? When me and my friends were hungry, we would say ”let’s go, fill the petrol”. It’s easy name to remember and logo and design matched well. Logo is created by my designer friend, Aleksandre Zertsalov. I work with my friend. We offer fast food products: hot dogs sausage is prepared by our technology and burgers. The restaurant ”Teremok” in Bakuriani helps us in baking bread. As for purity, the food is prepared by only disposable gloves, and at the beginning or at the end of the working day, we clean and polish the bus with special liquids.

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Cooperation between Business and Academic Circles is Necessary for Georgia

Rati Abuladze Professor, Doctor of Economics

mid growth in competitive capacity of global companies and quick expansion of technological landscape, benefits from cooperation between academic and business circles acquires vital importance. Professors and researchers, as the field experts, represent wide potential, intellectual resources, commercial values and business success. Today, all parties – Government, business and science face real challenges. These challenges may be overcome through cooperation, mutual beneficial partnership

relations. At the same time, each party has specific expectations from each other and interest of mutual benefits. Academic skills and resources determine commercial success of business, while cooperation ensures a creation of innovative products, grows competitive capacity, expands business horizons and business activities, enlarges output, optimizes expenditures, minimizes risks, boosts profits. In the process of cooperation with researchers, business will receive such values as: • Creativeness, research experience and scientific resource;; • Innovative product, knowledge, ideas, strategic plans, researchbased projects; • Scientific approaches and academic solutions for resolving corporate problems; • Marketing approaches and programs for quick developmentgrowth of company, expansion of competitive capacity and penetrating new markets; • Business profile expansion, improvement of company reputation; • Growth in workforce qualification and output; It should be noted that there is no

partnership ingredient between business and academic environment. In practice, it depends on: • Understanding and perception of value of academic resource by business sector; • existence of common interests and communication approaches; • Identification of potential of academic resources and their employment, recognition of advantages of academic resources and potential; • Improvement of financial climate (for academic environment and business sector); Business sector’s relations with academic resource may be carried out in the following way: • Strategic planning, academic resource, skills and flexible management; • Information exchange with academic environment; • Lectures, consultations and research works; • Financing publication of books and research works that grows company reputation (when business finances book editions, the company name is indicated and this is the best way for their advertising, positioning and growing reputation). Cooperation between Business and

“

Today, all parties – Government, business and science face real challenges. These challenges may be overcome through cooperation, mutual beneficial partnership relations.

Academic environment should be based on: • Common views, partnership goals and tasks; • leadership skills (which are able to communicate with academic sector); • Platform for exchange of information and ideas; • Long-term partnership, accountability, openness. It is difficult task to cooperate with business and academic circles. There are the following problems: problem with trust, protection of intellectual property, protection of patent, protection of copyrights, uncertainty in reception of potential benefits, protraction of time for creating successful product, problem with determination of working time, problem with communication between business and academic figures and so on. However, the mentioned problems cannot diminish advantage and necessity of partnership. Research works prove that if cooperation between business and academic circles becomes an obligatory norm, this practice will bring the most important benefits to both business sector and academic circles.

Brand History lemonade Khiliani

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rand history- Lemonade production company Khiliani was launched in 2014 in the village Natakhtari, Mtskheta region, with the support of the state program Enterprise Georgia. 10 million USD was invested. They say at the company that Khiliani has a special aroma, made by Georgian fruit, without any conservatives. Khiliani (Eng.: fruity) was named as it’s sparkling, non-alcoholic, fruity beverage. Idea to start enterprising-since 1990s there was no lemonade prepared by traditional methods on Georgian market. None of the companies were oriented on enterprising lemonade and cultivating methods which would be used in many years. This field was more developed in Georgia during post-soviet era. The company “Georgian Lemonade” started working on the production of lemonade by studying centuries of technology. Intensive consultations were conducted with scientists and technologists working in dozen of years in this field. The unique technique was developed, which made it possible to get lemonade with a special

flavor made from Georgian fruit by merging centuries-old traditions with modern technologies. According to the researchers of the Geological Research Institute, because of the existence of a high quality water source in Mtskheta region, Natakhtari, land plot was selected. The modern type of enterprise was built in full compliance with international standards, equipped with modern machinery and laboratories, which ensures stability of quality product. In the beverage produced by the Georgian lemonade, genetically modified conservatives are not used. “Georgian Lemonade” produces the following types of lemonade: pear, tarragon, citrus, mojito, lemon, grapes, lime, and cream. The old varieties of fruit, citrus and plants are being used to create special aroma, which are distinguished by a taste and health benefits. The major difficulty is a competition on the market. Product established itself by its quality. “We use absolutely natural products, and this will be reflected on the final product. It is distinguished from other products,’’they say at company.

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world

Azerbaijan, Turkey intend to bring mutual trade volume up to $15B Azerbaijan and Turkey intend to bring the mutual trade volume up to $15 billion by 2023, Turkish Deputy Prime Minister Nurettin Canikli said in an exclusive interview with Trend. “We intend to raise economic and trade relations with Azerbaijan to an even higher level,” he said. “For this purpose, Turkey has begun working over signing an agreement on preferential trade with Azerbaijan. The text of the agreement is planned to be prepared in 2017.” “Despite there is a decrease in trade turnover between the two countries now, there is a great potential for increasing it,” he said. “The agreement on economic cooperation, the agreement on eliminating double taxation and the agreement on mutual protection of investments signed between the countries facilitate to it.” Canikli said that the trade turnover between Turkey and Azerbaijan amounted to around $1.6 billion in 2016, while it was $5.1 billion in 2014.

Azerbaijani companies to participate in tender for gas pipeline construction in Pakistan Azerbaijani companies will take part in the tender for the construction of a gas pipeline in Pakistan, Azerbaijani Economy Minister Shahin Mustafayev said. Mustafayev made the remarks at an expanded meeting of the ministry’s board in Baku July 25. The minister added that a preliminary agreement was reached following the visit of the export mission to Pakistan this year. Mustafayev said that in total, eight export missions were sent to China, including Hong Kong, the UAE, Germany, Pakistan, Qatar, Kazakhstan and Afghanistan as part of promoting the Made in Azerbaijan brand. Mustafayev said that the agreements were reached following the missions, namely, the agreement on the supply of tea and pomegranates to Germany, the agreement on the supply of pomegranate juice to Sweden, the agreement on the supply of milk powder, milk and confectionery products, furniture, pomegranate juice, fitting and polyethylene pipes, metal structures and other construction materials to Afghanistan, the agreement on the supply of meat, pomegranate juice to Qatar, the agreement on the supply of fruits, cosmetics and medical goods to Kazakhstan, furniture, pomegranates, chocolate products, canned tomatoes and mushrooms to Pakistan. The agreement on the distribution and sale of garden and park furniture to Qatar was also reached.

Baku-Tbilisi-Kars Railway to Attract Transit Cargo Traffic to Kazakhstan With the commissioning of the Baku-TbilisiKars railway line this year, cargo from China will be transported through Kazakhstan along a shorter route to Turkey and on to Europe. This was said during a working trip to Azerbaijan and Georgia by Kanat Alpysbayev, the head of Kazakhstan’s national railways company Kazakhstan Temir Zholy (KTZ), the company’s press service reported on July 25. Alpysbayev visited the objects of the BakuTbilisi-Kars railway line, whose commissioning is planned for October this year. This railway line, more than 800 kilometers long, will connect Azerbaijan, Georgia and Turkey with a single rail link and is one of the important sections of the Trans-Caspian International Transport Corridor. During the visit Alpysbayev held negotiations with the Minister of Transport, Shipping and Communications of Turkey Ahmet Arslan and the Minister of Economy and Sustainable Development of Georgia Georgy Gakharia on cooperation in the field of railway transport. “Kazakhstan railway workers and our Chinese colleagues are waiting for the opening of the new railway which will expand the geography of cargo transportation along the corridor with access to Turkey,” Alpysbayev said.

“The trade turnover between Turkey and Azerbaijan increased by 11.4 percent in January-May 2017 compared to the same period of 2016,” he said, adding that it testifies to the economic potential of the two countries.” “I am confident that on the basis of the existing potential of the two countries, we will be able to increase the volume of export-import operations in the coming years,” Canikli said. “Our goal is to increase the trade turnover volume between our countries up to $15 billion by 2023.”He said that Azerbaijan is also one of the countries where Turkish contracting companies are actively working. “Until now, Turkish contractors have implemented the projects worth $11.6 billion in Azerbaijan,” he said.Moreover, Turkey is working over a plan to increase trade relations with Azerbaijan’s Nakhchivan Autonomous Republic. “As part of expanding trade with Nakhchivan, the delegation of the Turkish Economy Ministry visited Azerbaijan in June 2017,” Canikli said.

Turkey is popular again with British tourists, says Thomas Cook

Turkey is popular again with British tourists, says Thomas Cook Turkey is back on the tourist map for UK visitors despite growing tensions between its government and Germany.

curity issues deterred visitors, with travel firms laying on more holidays to the western Mediterranean to compensate.

The tour operator Thomas Cook said it was seeing a pick-up in demand for Turkish holidays because they were good value for money. The chief executive, Peter Fankhauser, said Turkey was proving attractive at the moment, even though Berlin has warned its citizens to be careful when travelling there.

However, traffic has bounced back this year in these markets, while other destinations such as Spain have experienced problems. An increase in capacity in Spain is affecting tour operators’ margins in the country, and Thomas Cook said prices were under pressure from the intense competition.

Visitors shunned the country last year after a failed military coup, which led to the company offering free cancellations to customers with existing bookings.

The tour operator reported a 14% rise in revenues for the third quarter and said strong demand for summer bookings would continue into winter, adding that its full-year operating profit would be in line with forecasts. Profit was expected to grow 6% to £326m for the year to September.

Business Today: sign up for a morning shot of financial news Read more Overall bookings for summer this year were up 11%, said the company. Greece was also back in favour, with bookings jumping by 22%. Thomas Cook also plans to restart holidays in Tunisia now that Britain has softened its travel advice to the country following a militant attack in June 2015. Business for tour operators such as Thomas Cook has suffered in the Middle East and north Africa in recent years as se-

Turkey is back on the tourist map for UK visitors despite growing tensions between its government and Germany. The tour operator Thomas Cook said it was seeing a pick-up in demand for Turkish holidays because they were good value for money. The chief executive, Peter Fankhauser, said Turkey was proving attractive at the moment, even though Berlin has warned its citizens to be careful when travelling there. Visitors shunned the country last year after a failed military coup, which led to the company offering free cancellations to customers with existing bookings. Overall bookings for summer this year were up 11%, said the company. Greece was also back in favour, with bookings jumping by 22%. Thomas Cook also plans to restart holidays in Tunisia now that Britain has softened its travel advice to the country following a militant attack in June 2015. Business for tour operators such as Thomas Cook has suffered in the Middle East and north Africa in recent years as security issues deterred visitors, with travel firms laying on more holidays to the western Mediterranean to compensate. However, traffic has bounced back this year in these markets, while other destinations such as Spain have experienced problems. An increase in capacity in Spain is affecting tour operators’ margins in the country, and Thomas Cook said prices were under pressure from the intense competition. The tour operator reported a 14% rise in revenues for the third quarter and said strong demand for summer bookings would continue into winter, adding that its full-year operating profit would be in line with forecasts. Profit was expected to grow 6% to £326m for the year to September.

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September 21, 22 Schauspiel Dortmund, Germany About Performance:

International Program Dead Centre and Anton Chekhov

Chekhov’s First Play Directed by Bush Moukarzel and Ben Kidd

Venue: Kote Marjanishvili State Drama Theatre | Big Stage Duration: 70 minutes, without intermission Tickets: Parterre – 55; 40 GEL; Balcony – 30; 20 GEL; Beginning: 20:00

I’m having absolutely nothing to do with the theatre or the human race. They can all go to hell.’ – Anton Chekhov During the turmoil of the Russian Revolution in 1917, Maria Chekhov, Anton’s sister, placed many of her late brother’s manuscripts and papers in a safety deposit box in Moscow. In 1921 Soviet scholars opened the box, and discovered a play. The title page was missing. The play they found has too many characters, too many themes, too much action. All in all, it’s generally dismissed as unstageable. Like life. Dead Centre, creators of the OBIE award-winning LIPPY (winner of a Fringe First, Herald Angel Award and the Irish Times Theatre Award for Best Production), return to do injustice to a great playwright. Chekhov before he was Chekhov.

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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

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

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,

15 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

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

Theatres A. GRIBOEDOV RUSSIAN STATE DRAMA THEATRE Tbilisi. 2 Rustaveli Ave. Tel: 93 58 11, Fax: 93 31 15 INDEPENDENT THEATRE Tbilisi. 2 Rustaveli Ave. Tel: 98 58 21, Fax: 93 31 15 K. MARJANISHVILI STATE ACADEMIC THEATRE Tbilisi. 8 Marjanishvili St. Tel: 95 35 82, Fax: 95 40 01 M. TUMANISHVILI CINEMA ACTORS THEATRE Tbilisi. 164 Agmashenebeli Ave. Tel: 35 31 52, 34 28 99, Fax: 35 01 94 METEKHI – THEATRE OF GEORGIAN NATIONAL BALLET Tbilisi. 69 Balanchivadze St. Tel: (99) 20 22 10 MUSIC AND DRAMATIC STATE THEATRE Tbilisi. 182 Agmashenebeli Ave. Tel: 34 80 90, Fax: 34 80 90 NABADI - GEORGIAN FOLKLORE THEATRE Tbilisi. 19 Rustaveli Ave. Tel: 98 99 91 S. AKHMETELI STATE DRAMATIC THEATRE Tbilisi. 8 I. Vekua St. Tel: 62 59 73

The Best Georgian Honey of chestnuts,acacia and lime flowers from the very hart of Adjara Matchakhela gorge in the network of Goodwill, Nikora and smart

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July 31, 2017 #203