Caucasian Business Week #76 by Caucasian Business Week

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November 17, 2014 #76

November 17, 2014, Issue 76 GEORGIA CIGARETTE PRICE RISES AGAIN

KAZAKHSTAN TO INVEST SEVERAL MILLIONS IN GEORGIA IN NEAR FUTURE

azakhstan intends to make great investment in near future. Georgian Prime minister, Irakli Gharibashvili met with the Kazakh delegation in Astana, November 12th. Pg. 5

LOW RISK OF BUSINESS BRIBERY IN GEORGIA, GLOBAL SURVEY REVEALS

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BE INFORMED, DO BUSINESS

RATINGS OF COMM MERCIAL BANKS IN TERMS OF F TOTAL ASSETS, STOCK CAPITAL, TOTAL LOANS, TER RM DEPOSITS, RESE ERVES ON AVAIL LABL LE LOSSE ES A N D NET PR ROFIITS Pg. 9

NEIGHBORHOOD PUTIN GETS A BRIEF ECONOMIC RESPITE FROM MOTHER NATURE

ussiaâ&#x20AC;&#x2122;s economy has taken blow after blow this year from Western sanctions, fleeing investment capital, and slumping prices for oil. Pg. 13

CHINA AND U.S. OPEN DOOR FARTHER TO TOURISTS, STUDENTS, BUSINESSPEOPLE

GEORGIAN PM MEETS KAZAKH PRESIDENT IN ASTANA

Pg. 4

Mamuka Khazaradze EY Entrepreneur of the Year 2014 Georgia

WORLD NEWS

Nodar Khaduri: Bidzina Ivanisvili Spent over 3 billion GEL before Coming to Power Pg. 5 Kars Mayor: Turkey and Azerbaijan should Assist Georgia to Timely Complete BTK Railroad

he risk of business bribery is low in Georgia, claim results of the first global business bribery survey by international risk assessment experts TRACE Matrix. Pg. 2

Irakli Gharibashvili: Problem of C hepatitis will be finally resolved in Georgia Pg. 2

Pg. 2

Pg. 8

GEPRA CONTEST WINNERS REVEALED Pg. 10

Quality of Georgian Inquiry - Which Super/ Government - Economist Hypermarkets do Tbilisi Residents Frequent? Pg. 13 Intelligence Unit Pg. 5

NABEGHLAVI AND BAKHMARO INTRODUCED TO 27 COUNTRIES

CITY IN CITY - FROM DIRSICHALA TO MODERN RESIDENTIAL COMPLEX Pg. 4

Pg. 11

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2 MAIN EVENTS

GOVERNMENT NEWS caucasian business week

GEORGIAN PM MEETS KAZAKH PRESIDENT IN ASTANA

President Margvelashvili:

To enter Europe, Georgia must become Europe Bill

Amends New Visa and Migration Regulations

Georgia-Turkey-

Azerbaijan business forum due in Batumi Beruchashvili

Appointed as New Foreign Minister

Gov’t

Continues to Subsidize Citrus Growers

Business

Ombudsman Proposes Legislative Amendments for Sales of Agriculture Land Plots to Foreign Citizens

M Irakli Garibashvili, who started a two-day visit to Kazakhstan on November 12, met Kazakh President Nursultan Nazarbayev in Astana. “Kazakhstan has always had good relations with Georgia,” the Kazakh President said, according to his office. “Our bilateral relations have been developing dynamically. We are ready to further strengthen cooperation with Georgia in all directions, both in political and economic [ties].” The Georgian PM, according to his office, reiterated that Georgia considers Kazakhstan as its “friendly state and important partner.” “PM Garibashvili thanked President Nazarbayev

for supporting Georgia’s territorial integrity and sovereignty,” the Georgian PM’s office said. Also on November 12 PM Garibashvili met his Kazakh counterpart Karim Massimov. The Kazakh PM said after the meeting that there is a potential to boost bilateral trade between Georgia and Kazakhstan. Bilateral trade turnover stood at USD 66.3 million in the first nine months of 2014, which was 7.3% y/y decline, according to the Georgian state statistics agency. “We are interested in broadening of our ties in transport, communication, agriculture sector, tourism and in other sectors,” the Kazakh PM said. PM Massimov stressed that Kazakhstan is “in-

of National Wine Agency Appointed as Deputy Minister of Agriculture Makes Concessions - Pensions will Rise for all Citizens

Economy

Ministry: No Negotiations Underway on Resuming Railway Traffic in Abkhazia

Tbilisi

City Hall: Infrastructure Projects have been Postponed to the End of the Year

George

Soros to meet Giorgi Margvelashvili and Irakli Gharibashvili

Former

Georgian Economy Minister Kakha Bendukidze dies

Georgian

Defence Minister meets German envoy Ortwin Hennig

Competition

Agency to Explore Oil Products Market

terested in speedy completion of construction” of the Baku-Tbilisi-Kars railway, connecting Azerbaijan to Turkey via Georgia. This railway link, PM Massimov said, will provide for an additional route for Kazakhstan to reach European markets through Caspian Sea and then Azerbaijan, Georgia and Turkey. According to the Georgian officials the Baku-Tbilisi-Kars railway is expected to be put into operation before the end of 2015. “In overall, I think that the visit of the Georgian PM will help to elevate Kazakh-Georgian relations to a more qualitative level of alliance and strategic partnership,” Kazakh PM Massimov said. The Georgian delegation also includes Economy Minister Giorgi Kvirikashvili; Energy Minister Kakha Kaladze; Agriculture Minister Otar Danelia, and Finance Minister Nodar Khaduri. Energy Minister, Kakha Kaladze, said that relations between the two countries are “friendly, but much more can be done” in bilateral cooperation. He said that management of the Kazakh-owned gas distributor company in Georgia’s capital Tbilisi will be handed over back to the Kazakh state-owned KazTransGas in the “nearest future”; a “temporary administrator” was appointed by the Georgian state energy regulator in the Tbilisi gas distributor company in 2009.

IRAKLI GHARIBASHVILI: PROBLEM OF C HEPATITIS WILL BE FINALLY RESOLVED IN GEORGIA

Director

Government

November 17, 2014 #76

eorgia will be one of the first countries in the world where the problem of C Hepatitis will be finally resolved and this severe disease will be completely overcome, - the Georgian Prime Minister Irakli Garibashvili stated this decision at the meeting with the health minister. The minister of labor, health and social protection Davit Sergeenko informed the head of the Gov-

ernment about the details of working visit to the US and results of negotiations. According to him, the agreement was achieved according to which unprecedented program will start in Georgia from next year - C hepatitis treatment medicine “Sofusbuvir” will be introduced to Georgia from the US and it will be available for the patients living in Georgia. During the visit of health minister to the US the issues of registration the new medi-

cine in the shortest time possible and availability of it for the Georgian population were agreed. “Next year unprecedented program will start in Georgia through which C hepatitis will be practically eliminated. This is a great achievement of our Government and MR Davit Sergeenko. The main motivation that brought the US side to the mentioned decision was the reforms that our government implemented. This is the universal insurance program, C hepatitis treatment program through which we treated thousands of patients, including 1000 prisoners. This is an actual reform which we achieved in two years and a million GEL is spent on this,” - the Prime Minister stated after the meeting. As he explained according to the action plan of Georgian Government and health ministry, Georgia will be the country where C hepatitis as a disease will disappear.

LOW RISK OF BUSINESS BRIBERY IN GEORGIA, GLOBAL SURVEY REVEALS

he risk of business bribery is low in Georgia, claim results of the first global business bribery survey by international risk assessment experts TRACE Matrix. Georgia ranked 11thout of 197 countries after gaining a score of 27 points on the TRACE Matrix business bribery index, which scored countries anywhere from 0-100 points depending on their risk of business bribery. In the survey countries were assessed across four domains – business interactions with the government, anti-bribery laws and enforcement, government and civil service transparency, and the capacity for civil society oversight, including the role of the media – as well as nine sub-domains. Ireland, Canada and New Zealand were revealed as the top three countries with lowest risk of business bribery while Nigeria, Yemen and Angola had the highest risk. TRACE Matrix, in collaboration with RAND Corporation, developed the business bribery index to give the global business community a powerful new tool to assess the risk of business bribery. The TRACE Matrix calculated a composite score for each country anywhere from 1-100, where the higher the score, the greater risk of business bribery. TRACE president Alexandra Wrage believed

BUSINESS WEEK caucasian

The Editorial Board Follows Press Freedom Principles Publisher: LLC Caucasian Business Week - CBW Address: Shrosha Street 8/10 Director: Levan Beglarishvili Mobile phone: 591 013936; 577965577 Commercial Department: Irakli Lekvinadze Email: caucasianbusiness@gmail.com WWW.CBW.GE

the TRACE Matrix index was designed to help companies assess the propensity for public-sector bribery and its associated business risk while providing actionable intelligence to inform a company’s compliance processes. According to the TRACE Matrix indes, the 10 countries with the highest business bribery risk

score are: Nigeria, Yemen, Angola, Uzbekistan, Cambodia, Guinea, Burundi, Chad, South Sudan and Vietnam. The 10 countries with the lowest business bribery risk scores are: Ireland, Canada, New Zealand, Hong Kong, Sweden, Finland, Singapore, Japan, Germany and the United States.

The weekly is distributed to top companies, banks, embassies, state sector, Tbilisi and Batumi hotels, Tbilisi, Batumi and Kutaisi Airports, as well as in the town of Marneuli. The newspaper will also penetrate Azerbaijan in the near future

Editori-in-Chief: Evgeni Mikeladze Reporters: Nutsa Galumashvili; Nino Gojiashvili

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

PUBLICITY November 17, 2014 #76

According to the GOEuroâ&#x20AC;&#x2122;s 2014 research, Georgia ranks second worldwide in terms of cheapest train tickets. Only South Africa is recorded ahead of Georgia. GOEuro is one of the major multifunctional research companies in the travel sector. The company compares and calculates prices for travel by train, bus and airplanes. GOEuro published the report in August 2014.

caucasian business week

INTERVIEW

HEADLINES After

excise tax rise, price of cigarettes to hike by 5%

Pensions

will rise for all georgian citizens

Teachers’ Wages

NABEGHLAVI AND BAKHMARO INTRODUCED TO 27 COUNTRIES The number of countries where our products are exported will increase from 2015 Healthy Water (“Tskali Margebeli”) was established in 1997 and shortly became a successful and consumers’ favorite brand. After such significant achievement the company’s founders started to think and focus on agriculture development. As a result, two related companies Marneuli Food Factory and its major supplier, Marneuli Agro, got established. In 2009, the companies got merged into Georgian- Swiss Margebeli Holding, later joined by Distribution Company Engadi. „The company managed to acquire loyalty of consumers as well as leading position on the market in a very short period of time. This was determined by our intention to provide high quality products to consumers”, - said VICTORIA ZHIZHKO, Head of Public Relations Department of Healthy Water.

to Rise

to 125 GEL International

postal services made an agreement on regulations with ministry of economy

Georgia,

kpmg discuss cooperation issues

Kazakh

company plans to trasport gas to tbilisi through russia

The

effect of regulation on beer companiesdecreasing revenues and producers’ complaints against finance minister

Kazakhstan

to Make Major Investments in Georgia

Foreign

Trade Hits 8 376 million USD in January to September

Rakia

Investment Company to Fund Tbilisi Mall by 15 million USD

Visa

Regultions Shrink Tourists Inflows in October to November

Russia

restarted imports of dried fruit from georgia

Air

Astana Increases Flight Frequences from Astana

Tbilisi

City Hall Rejects to Take Loans from Commercial Banks

Infrastructure

November 17, 2014 #76

caucasian business week

Projects Initiative of Georgia Introduces Report on RMG Performance

- Company Healthy Water is a platinum sponsor of Tbilisi 2015 - European Youth Olympic Festival and the European Athletics Team Championships Third League 2014. The principle Georgian Business next to Georgian Sports shows the strength of the brand… participation in such international forum probably is a great responsibility for the Company? - Our major principle and mission since establishing of the Company has been creation of sound attitude towards Georgian sports, culture, education and the other important sectors and their popularization. These areas directly or indirectly affect the future generation of our country. Respectively, within the framework of the Tbilisi Youth Olympic Festival, we were given the opportunity to show our attitude and share our views. On one hand, this event cannot be reviewed only in the sports light since it has international, economic, political and even socio-cultural importance, on the other hand, the city is given the opportunity to form a center of sports activities in the region. In this regard intense works have been in progress for several years to organize sports infrastructure. As for involvement of business in similar projects, it is very important to realize that the fate of healthy future generations is in our hands and all of us have to support popularization of progressive ideas and their implementation. It was a great responsibility for Healthy Water to be a partner of such events and on our side we express readiness to be actively involved in these largescale initiatives. - Apart from financial assistance, what was the purpose of your involvement? - Financial assistance is only one aspect of activities the Healthy Water is implementing within the framework of youth Olympiad. Currently we are actively engaged in searching for volunteers and their registration. We ask all young people to be active and get registered as volunteers as it will be a new experience for them and, on the other hand, they will make

contribution to successful implementation of such event. Also we are trying at maximum extent to get engaged in all activities prior to festival that would facilitate higher public awareness and involvement. - Nabeghlavi has been selected by Golden Brand, a media tournament got organized with Bakhmaro’s support to win the cup of Geosports. ge, tell us about your other successful events... - Being selected by Golden Brand has been a tradition for our company in recent years and we treat this status with a high sense of responsibility. In this case success and achievements of our company are evaluated by local and foreign competent bodies, which will have a significant impact on positioning of our company in case of entering international market. On our side we are trying to improve production quality and standards year-to-year so that the consumers and respectively the other competent authorities are assured that they consume highest quality products. For years we have been actively engaged in supporting various cultural events, such as Caucasian Jazz Festival, Artgeni, Georgian Cultural days in Central Asia and etc., which one more time emphasizes our principle to support promotion of Georgian culture both within the country and abroad. - It has been the second year that you are implementing the Project For Educated Future, how would you assess it and what are your plans in this regard for 2015? - For educated Future is our second important social project, which has been implemented successfully for the second year now. In our opinion, implementation of similar projects in the future will have a significant impact if there is consistent and active approach to the matter. It is especially important for regions so that everyone has the equal opportunities to show knowledge and have a chance to deepen it. We think that For Educated Future is such project which motivates children to work hard for achieving success. The

year of 2014 in this regard has been successful, the number of participants increased, the average result attained at exams also improved, children, parents, teachers are happy with acquired experience and respectively we are also delighted that such initiative helped the youth in realization of their capabilities. Preparation works for 2015 already started and we advise pupils of Chokhatauri Municipality to get ready for the National Olympiad, to show their knowledge in English language in order to be given the opportunity to deepen it in Britain. - Nabeghlavi and Bakhmaro are being exported to over 20 countries, are you planning to enter new markets? - We increased the list of those countries for 2014 where we export Nabeghlavi and Bakhmaro. Currently these brands are presented in 27 countries. In addition to markets of central Asia and Post-Soviet countries, we covered Italy, USA, Canada and Germany. We are planning to expand the chain in the future, since there is a high demand for our products in many countries and we are going to become active in this regard. - And finally what are your plans for 2015? - Our team has several significant objectives for the year of 2015, we already talked about one of them, we’ll try at maximum extent to get engaged and make our contribution to successful implementation of the Youth Olympic Festival, also we’ll be actively engaged in raising sound ideas in culture, education and sports. As regards the plans related with our products, Nabeghlavi and Bakhmaro have been the most popular among Georgian consumers and in the future we’ll try to retain this approach and principles through hard work and improving production standards. Margebeli Holding will actively continue production of naturally distinguished, 100% natural Georgian products for Georgian and foreign markets and we do hope that the consumers and the state will support us as much as possible.

KARS MAYOR:TURKEY AND AZERBAIJAN SHOULD ASSIST GEORGIA TO TIMELY COMPLETE BTK RAILROAD While visiting Baku, Mayor of Kars talked about the construction of Baku-Tbilisi-Kars railway, which started in 2008. An excerpt from the interview is outlined below: - Are you looking forward to completing the project Baku-Tbilisi-Kars? Why is it important? “I definitely am. This railway will be immensely profitable for the three countries involved -Georgia, Azerbaijan and Turkey. Its commission will stimulate development of local economies in our countries. In particular, large shopping centers are due to open in Kars.” “I would like to appeal to business people from these countries to hurry to make investments in Kars, in order to create the desirable outcome,” Mr. Karachant notes. - How are the countries coordinating the sched-

ule of construction? “To be frank, the schedule of construction is still being reviewed, particularly on the Georgian territory, whose financial condition is not necessarily advantageous. So I believe that if Georgia meets the construction terms adequately, Azerbaijan and Turkey have to assist Georgia financially.” “Once the railway starts operating, the distance between Baku and Kars will decrease significantly: the passengers will need only six hours to travel from Turkey to Azerbaijan. Of course such proximity between the countries would deepen their relationship even more. Due to this, it is extremely important for railway construction to be finally commissioned by late 2014-2015.” “Along the path where the railway passes, new jobs will be created. And at least 10-15K people will have steady income.”

BUSINESS November 17, 2014 #76

caucasian business week

NODAR KHADURI: BIDZINA IVANISVILI SPENT OVER 3 BILLION GEL BEFORE COMING TO POWER

efore coming to power Bidzina Ivanishvili spent over 3 billion GEL, Georgian Finance Minister Nodar Khaduri says. Ivanishvili has made many significant affairs in Georgia, including he has restored churches and monasteries, secondary schools and re-equipped law enforcement structures,

TOP STORY

Khaduri told MPs at the November 14 plenary session. “Bidzina Ivanishvili has financed these directions. Mr. Bidzina has done a lot and will do a lot again”, the Finance Minister noted to answer the question opposition MP from the United National Movement Chioa Taktakishvili asked about Ivanishvili’s expenditures.

TBILISI HOSTS INTERNATIONAL ENERGY CONFERENCE

n November 12 Expo Georgia exhibition center hosted international conference Energy for Sustainable Development. The event aimed at drawing attention to important topics for the sector development and stimulating discussions in this direction. At the event representatives of private and state organizations discussed the country development strategy, environmental factors in the energy sector, tariff policy, new projects and other relevant issues. The conference moderator David Mirtskhulava, a doctor of technical sciences, noted: “Similar international conferences are important for the energy sector development. Two major foreign companies of the energy sector Andritz Hydro Voith are sponsors of this conference and this fact is very significant and it points to much interest of foreign investors in Georgia’s energy sector”. As reported, a major ratio in Georgia’s total foreign direct investments inflows is recorded for the energy sector for the last two years. The figure marked 197 million USD in 2013, that is 21% is Georgia’s total FDI inflows. The figure totaled 179 million USD in 2012, that is 19% in total FDI. Deputy Energy Minister Ilia Eloshvili introduced

energy sector sustainable development strategy to the conference participants. He stressed the advantages of making investments in Georgia’s energy sector. Deputy Energy Minister ILIA ELOSVHILI: “After the legislative amendments, investors are able to keep the constructed HPPs in their ownership, but the state receives all the available goods from the HPPs. This opportunity of keeping HPPs in ownership considerably encourages investors to take decisions on investing in Georgia. At the same time, new HPPs are completely deregulated. They are free to choose where to sell electricity and at what tariffs, excluding 20% of the generated power that will remain in Georgia. Investors are also interested in other factors. For example, there is no transition tariff, no licenses are required for exports and no additional taxes are charged. The legislative basis has been considerably simplified and so on. There are many articles in which investors are interested very much to make investments in our country. As a result, for the last 2 years our country has acquired additional 149 megawatt HPPs”. Ilia Eloshvili also introduced the Ministry strategy for the coming years: “Our main strategy

implies the construction of four main strategic assets that will enable us to save the electricity in the form of water in winter and autumn to replace the imports in this way. But this is not sufficient. We have to constructan additional steam power plant in Gardabani. Construction works are underway. Moreover, other projects of total of 900 megawatts are also being implemented. Our ultimate goal is that by 2025 to 2030 Georgia have no electricity deficit. All these plans require about 10 billion USD investments. This is quite major challenge to our country, but this should be done to develop our country”. Representatives of various investment companies have attended the conference. Mikheil Nibladze, a managing director for Schulz Global Investments (the company oriented on the world’s most dynamically developing markets in Africa, Asia, Latina America and the Caucasus): “We believe Georgia provides good investment climate for business promotion and Georgia’s hydro power potential is of crucial importance in this direction. We find it expedient to make investments in construction of small and medium sized HPPs with exports focus on Turkey, not on Russia. Turkey is the most optimal exports market in terms of political stability, price and seasonal conditions”. At the end of the conference, a discussion panel was held and the field specialists and economic experts discussed necessary reforms for the energy sector development, ways for implementing these reforms and issues related to the associated membership agreement. International Energy Conference ELCOMM CAUCASUS 2014 was also held as part of the conference. The event represents a platform that enables visitors to receive information on the existing innovations, new technologies and a full specter of other services on the Georgian energy market.

SHERATON METECHI PALACE CLOSED UNTIL 2016 FOR RECONSTRUCTION

he first 5-star hotel in GeorgiaSheraton Metechi Palace - located in Tbilisi will be closed for renovation until 2016. According to the management of the hotel, after investing, Sheraton will undergo radical changes and will regain its former luster. In total USD 25 million will be spent on the renovation, the hotel will be closed on December 1, 2014 and will resume operation in early 2016. “The hotel will be transformed into a place where even the most experienced travelers will be able to get top quality service. This will become possible thanks to the investments of the Government of Ras Al Khaimah - one of the emirates of the

UAE, which is the owner of the hotel since 2007, “- said in a statement of Sheraton management. The hotel, which was opened in 1989, after renovation will be equipped with the most modern technologies, fitness and spa centers, new restaurants, bars and exclusive lounges will be opened there while meeting rooms will be expanded. A reconfiguration of the rooms is also planned, after the opening the hotel will consist of 220 club and luxury accommodations. “Visitors will see again the hotel’s main business card –a grandiose foyer, but it will be completely updated,” - Klaus Brandstetter, General Manager of Starwood International Hotels and Resorts for Hotel Pre-Openings in East & Central Europe, declares.

According to him, all rooms and public space of the hotel will be transformed and improved. Executive head of Races Al Haym Development states that the Sheraton Metechi hotel is a symbol of the Georgian hospitality for numerous guests of Tbilisi. “As one of the largest investors in Georgia, we are proud to start updating this very important asset. Our investment is a confirmation of our loyalty to Georgia, “- he says. Sheraton Metechi Palace is the first 5-star hotel in the region which was commissioned in 1989. The hotel is operated by the American company Starwood Hotels & Resorts Worldwide, Inc, one of the leaders in hotel management.

LIBERTY BANK TO SPEND 7 MILLION GEL ON IMPROVING SERVICES

iberty Bank will spend 7 million GEL to improve service for pensions ad other state allowances. On Friday was announced as a winner of the contest announced by Social Service Agency. Liberty Bank was the only participant of the contest announced by Social Service Agency. The documents fully met requirements. The bank took additional liabilities as well. In particular, the credit organization takes responsibility to

spend 7 million GEL to improve infrastructure, also to allocate 4 million GEL to support various state activities. Liberty will provide supply of the money transferred by the Agency free of charge from January 1, 2015 to December 31, 2019, during 5 years. Reminding that since 2004 Liberty Bank has provided service for the state pensions and other kinds of state payments (living allowance, household subsidy, state compensation and so on).

KAZAKHSTAN TO INVEST SEVERAL MILLIONS IN GEORGIA IN NEAR FUTURE

azakhstan intends to make great investment in near future. Georgian Prime minister, Irakli Gharibashvili met with the Kazakh delegation in Astana, No-

vember 12th. During the meeting with Kazakh collegues such topics as the development of Batumi sea port, development of trasport corridor and KazTransGas-Tbilisi company’s activities in Georgia were discussed. As it was mentioned at the meeting, the sides are interested to restore the ties on the private sector level, develop tourism, popularize the agricultural products and deepen the cooperation in the sphere of science, education, information science, culture and sport. The conversation also referred to the deepening bilateral economic relations and the activities of the intergovernmental commission of GeorgiaKazakhstan trade and economic cooperation. Kazakhstan is a friend of Georgia and traditionally, it is one of the most important partners, which is proved by today’s meetings once again. We attach a great importance to activation of cooperation between the various agencies of the countries-said Irakli Gharibashvili The main area of interest was a commission of Baku-Tbilisi-Karsi railway, which will enable Kazakh and Georgian products to be transported to Europe via Kaspi sea. The head of the Government of Kazakhstan called the meeting with the Prime Minister of Georgia as important. Karim Massimov is sure that Irakli Garibashvili’s visit in Astana will move Georgia-Kazakhstan cooperation to a new level of a strategic partnership. The meetings were also concentrated on numerous potential investment projectts. Currently, Kazakh investors carried out a few large projects in Georgia. Such as a five-star hotel and welness center, total cost of which constituted 38.5 USD. In addition, Batumi Industrial Holdings founded by KazTransOil also operates in Georgia. The company manages the Batumi oil terminal and sea port. Kazakh capital represented a great portion on the Georgian financial market in Halik bank and BTA bank last year. After the meeting it also became known that the Kazakh side will gain back the management of KaztransGas-Tbilisi. At this stage up to 90 companies operate in Georgia, It should be noted that large Kazakh companies such as KazMunaiGas, BTA Bank, Halik Bank, Rompetrol and many others are already operating in Georgia.Often These companies don’t enter any markets, and Georgia is one of the few countries where they have decided to work.

QUALIFIED OPINION November 17, 2014 #76

caucasian business week

Tamar Kakabadze

CIGARETTE PRICE RISES AGAIN LEVAN KALANDADZE Expert of Economy, Head of the Georgian Initiative for Infrastructure Projects The 2013 budget problems continue to be relevant in 2014 too and, unfortunately, even the 2015 budget bill gives no ground for optimism. The government’s economic team has found a simple way out for growing budget revenues and shrinking expected deficit in the 2015 budget. Namely, the excise tax interest rate will considerably increase on tobacco products and alcoholic beverages. The Government plans to mobilize additional 170 million GEL to the budget in this way. Any assertions as if growth in excise tax interest rate is not preconditioned by budget problems and the government cares for only public healthcare, causes smile and are unreal. Researches from various countries suggest that there is no direct correlation between growth in taxes and consumption of tobacco and alcoholic products. On the contrary, rise in interest rates bring negative results in the long-term perspectives for both business sector and the state economy, as well as for consumers health. Increased interest rate on excise tax may bring several negative results in the long-term perspective: • Excise tax represents an important component of the product’s retailing price and manufacturers have to considerably increase the price of goods; • Revenues of alcoholic and tobacco manufacturers are expected to shrink; • In the mentioned business sector the planned and coming investment projects will be halted or postponed; • After growth in excise tax interest rate, manufacturers will worsen the quality of products to maintain the profits margin and compensate decreased revenues; International experience and practice show change in excise tax interest rate directly pushes the consumer to correcting the consumer basket and replacing expensive products by cheaper and low-quality products and all this negatively affects the consumer health.

he government plans to introduce the ad valorem tax on tobacco and increase the excise tax on tobacco products. As a result, cigarette prices may rise by about 5%. The raising of excise taxes is part of the government program to fight against smoking, and according to the government officials, increased prices on tobacco products will limit the smoking volume in the society, not the fiscal effect. As a result of growth in the excise tax and introduction of the ad valorem tax, local manufacturers

and importer companies expect serious problems to arise in the market. In particular, they assert this may lead to serious problems in the production and this will force them to leave the market. Introduction of the ad valorem tax is one of the commitments undertaken by Georgia as part of the EU associated membership agreement. The country is given a 5-year preparatory period, the tax interest rate is not specified and it is at the discretion of the state. In some European countries, such as Denmark and Sweden, the ad valorem tax is symbolic and it doesn’t exceed 1%.

RAMAZ GERLIANI President for Economic Policy Experts Center, Doctor in Economy

into account consumer dependence. This circumstance generates a new competitive environment for establishing product on the market, despite the fact the excise runs for both foreign and domestic manufactures. In this situation domestic manufacturers will be less competitive, because foreign manufacturers (importers) are able to get adapted to the competitive market, even more so their products are of higher quality compared to the domestic products. In this situation tobacco manufacturers become unable to compensate expenditures from consumer’s pocket and extremely grow the price (the competitive environment does not enable this). Consequently, their revenues will shrink and manufactures will have to cut the production. It is expected that domestic manufactures and even importers withdraw from the market.

Growth in excise tax, first of all, shrinks business sector revenues and limits the range for business-economy activities. In this concrete case, the space is limited to tobacco manufacturers and other related fields. In practice, rise in excise tax on cigarettes (from 0.75 GEL to 0.90 GEL on filtered cigarette and from 0.20 GEL to 0.25 GEL on unfiltered cigarette) grows costs (for both domestic and foreign manufacturers). As a result, manufactures have to balance costs by growing prices on products. Finally, the process affects the consumer. Despite a cigarette does not belong to the essentials, it is widely consumed and it is less flexible taking

In this case, the administrating burden may lead a number of market players to the informal sector, that is shadow and smuggled turnover may be stimulated. Consequently, shadow and smuggled goods will be sold at lower prices. Growth in the shadow segment will further worsen the condition of honest manufacturers and suppliers, because the shadow sales are separated from the sales potential in the formal sector. Cigarette is an only product that most frequently is related to smuggled inflows and shadow production and sales. In this direction growth in excise tax is genuinely risky. Downturn in sales (ultimately in the formal sector), reduction in revenues of manufacturers and suppliers and rise in costs of additional administration, may be higher than additional funds of the increased excise tax. In the long-term period the market will be adapted to new environment and, finally, increased excise tax will become ordinary and acceptable to both domestic manufacturers and foreign suppliers. In conclusion, from the economic point of view a rise in excise tax is not a positive moment for the business sector representatives. Similar issues should be decided through consultations with the business sector so as they retune future activities to new realities, as well as an analysis by the civil sector and experts will make more transparent the further results of this tax policy from both economic and social point of view. As to the introduction of ad valorem tax (interest rate from the product value), I believe its introduction at the initial stage will cause problems with implementation like all new tax regulations that are unfamiliar to the business sector. It should be also noted the ad valorem tax will create more favorable starting conditions to domestic manufacturers until the value is corrected (domestic cigarettes are comparatively cheaper. hence excise tax will be lower compared to foreign cigarettes). All other risk factors will not change in case of introduction of the ad valorem tax. It will only directly or indirectly stimulate smuggling.

GOLD WAS NEVER MINED AT SAKDRISSI-KACHAGIANI, PAST CENTURIES’ TECHNOLOGY WOULD NOT ALLOW IT

eologists are linking the halting of the Sakdrissi-Kachagiani Mine activities to harmful grant-procuring archeologists, which is something that’s far away from patriotism and more alike to treachery. “And all the youngsters that have followed their example ask no questions,” states the Doctor of Geological Sciences, Professor Shota Adamia. According to him, the patriotically laced story of there being a 5000-year-old civilization there predating Egypt and possessing abundant amounts of gold and trading practices is also faked. Shota Adamia explains that gold was never mined there, because the technology of past centuries would not allow it. Certain gold reserves are confirmed later in the 80ies, through chemical and spectral analyses, although they were not deemed utilizable in the Soviet period and weren’t mined. The reserves (3g in 1 ton) were confirmed by Australian specialists in the second half of the 90ies. According to Adamia, considering that technologies have improved and knowledge in this field has deepened, it’s obvious there should be no opposition towards a mining company. “RMG Gold” has almost halted its mining activities and the large facilitation is now working at 1/3 capacity. In addition to this, its contractor, raw materials supplier and service provider com-

panies have also halted, and they employ hundreds of people. Shota Adamia’s information says that the Kachagiani has only one site where items from the Middle Ages have been discovered, and considering the realities of this, charging the topic with politics in order to warm someone’s hands is out of the question, especially since the issue affects employed people in the Bolnisi region. He also says that local and foreign qualified researches are contributing to the search-and-discovery works. There’s every reason to make the mines more attractive to investors and increase possibilities in addition to improving the technology in the future. There already are prospects of cyanided mining, as well as a prospect for increasing reserves. Shota Adamia doesn’t agree to the opinions of experts not versed in the issue, who might be working from behind politics and inadequately evaluating the processes. Soso Tsiskarishvili, an expert, speaks on the behalf of the public saying that cultural monuments are to be counted on one hand, while mining facilities are in the hundreds and society will stand against this. Such statements are unclear to geologists, energy experts, and specialists of all other fields. You probably remember the matter of the Khudoni Dam, when flooding one village was equated with Georgia’s downfall and everyone forgot the

energy security which was of most importance for the country’s development and independence. Despite this, these people still claim patriotism, although this goes beyond just standing behind a tribune and making empty booming statements. This category of people think that advancement is above all and digging in the past doesn’t benefit

the country, and they do it by skewing facts and events. In addition to this, Shota Adamia says that the mines are few and far-between, even without the meddling of archeologists. The Bolnisi region is the only place where gold is procured from primary crust mines and Kolkheti’s sandy river grounds.

QUALITY OF GOVERNMENT November 17, 2014 #76

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QUALITY OF GEORGIAN GOVERNMENT - EXPERTISE BY ECONOMIST INTELLIGENCE UNIT

he Center for International Monitoring of Governments has held a forum on the topic: “The Quality of the Georgian Government - Expertise by Economist Intelligence Unit (EIU)”. The meeting made focus on the report developed by EIU international organization that has evaluated the quality of conduct of various governments worldwide as part of the World Bank’s mega project of the Worldwide Governance Indicators (WGI). The report analyzes the Georgian government’s’ activities in 2013. The report evaluates government’s conduct due to four aggregates: Government Effectiveness, Regulatory Quality, Rule of Law, Voice and Accountability. According to these four aggregates, in 2013 the quality of Georgian government’s activities makes the country a regional leader compared to the neighboring countries. According to the EIU report, Georgia runs ahead of several EU member countries in terms of Government Effectiveness aggregate. The country is ahead of even the USA in terms of Regulatory Quality. It should be noted Georgia has earned historical maximum level in terms of Rule of Law and Voice and Accountability. Lana Ebralidze, a head for the Georgian Office of the Center for International Monitoring of Governments, noted: “EIU expertise is renewed on annual basis. To maintain and develop the achieved success, the Georgian government will have to take many efficient steps in the current and next years. Efficient implementation of the EU associated membership agreement will be a major international challenge for the 2015 government of Georgia”. With a head office in London, the United Kingdom, the Economist Intelligence Unit (EIU) is one of the world’s major organizations providing commercial business information. The body unites over 500 reporters and groups of experts worldwide. EIU has joined the World Bank’s mega project of The Worldwide Governance Indicators (WGI) as an organization developing reports on states and international expertise.

Government Effectiveness Level

Georgian government runs ahead of 11 EU Governments Government Effectiveness Quality of bureaucracy / institutional effectiveness Excessive bureaucracy / red tape EIU has appraised the government effectiveness by such criteria as the quality of state bureaucracy and institutional efficiency. According to the EIU report, in 2013 the Georgian government’s effectiveness level marked 62.5%, up by 5% compared to the averaged indicator of the last 7 years (2006 to 2012). Georgia’s 2013 government is a regional leader in terms of effectiveness and is ahead of the neighboring countries (Turkey, Russia, Armenia, Azerbaijan). At the same time, the indicator has grown by 66% compared to 2006. The first ten top countries in terms of government effectiveness level in 2013 are as follows:

Georgia ranks 33rd in the rating and runs ahead of 11 EU member countries, including Czech Republic, Estonia, Hungary, Lithuania, Latvia, Poland, Greece, Croatia, Italy, Romania and Bulgaria. At the same time, Georgia stayed on the same level as EU member countries such as Spain, Ireland, Luxemburg, Slovenia and Slovakia

Regulatory Quality

Georgian Government is head of USA in terms of Regulatory Quality Regulatory Quality Unfair competitive practices Price controls Discriminatory tariffs Excessive protections Discriminatory taxes EIU has assessed governments in terms of Regulatory Quality indicator in such economic directions as honest competition practice, regulations of prices, discriminating tariffs, excessive protections, discriminatory taxes. Under the EIU report, Georgia’s government regulatory quality indicator makes up 70% under 100% scales. In 2013 Georgia is a regional leader in terms of regulatory quality indicator and is ahead of Turkey, Russia, Armenia, Azerbaijan and Ukraine. The ten top countries in terms of regulatory quality indictor in 2013 are as follows:

Georgia ranks 51st in the rating and is ahead of such EU member countries as Slovakia and Croatia. The country stays at the same of level of such EU member states as Czech Republic and Bulgaria. The country is little behind of Greece, Romania, Poland and Slovenia. It should be also noted Georgia is a little ahead of the USA in terms of the 2013 Regulatory Quality Indicator.

Rule of Law

Georgia Records Historical Maximum in terms of Rule of Law Indicator Rule of Law Violent crime Organized crime Fairness of judicial process Enforceability of contracts Speediness of judicial process Confiscation/expropriation Intellectual property rights protection Private property protection EIU has assessed governments in terms of Rule of Law in such fields as violent crime, organized crime, Fairness of judicial process, Enforceability of contracts Speediness of judicial process, Confiscation/expropriation, Intellectual property rights protection. According to the EIU report, in the last 8 years Georgia’s Rule of Law indicator reached its maximum in 2013 and made up 53.1%, up 4.2% compared to the 2006 to 2012 period. In 2013 Georgia runs ahead of all countries of the regions (Russia, Turkey, Armenia, Azerbaijan, and Ukraine). In 2013 the Rule of Law indicator grew by 21.4% compared to 2006. The above table shows the indicator has recorded major growth in Georgia since 2006 in the Region. The ten top countries in terms of Rule of Law are as follows:

Georgia ranks 69th in the rating and stays at the same level of EU member countries such as Croatia and Bulgaria and the country is a little behind of Italy and Romania.

Voice and Accountability

Georgia Emerges a Regional Leader in terms of Government’s Accountability Voice and Accountability Democracy Index Vested interests Accountability of Public Officials Human Rights Freedom of association EIU has assessed governments in terms of Voice and Accountability in such criteria as Democracy Index, Vested interests, Accountability of Public Officials, Human Rights and Freedom of associations. According to the EIU report, in 2013 Georgia’s Voice and Accountability indicator marked 58%, up7% compared to the 2006 to 2012 period. In 2012 the indicators stood at 56%, down 2% compared to the 2013 indicator. In 2013 Georgia was ahead of Russia, Turkey, Armenia, Azerbaijan and Ukraine. The ten top countries in terms of the 2013 indicator are as follows:

Georgia ranks 66th in the rating and is ahead of Romania and is a little behind of Bulgaria and Croatia.

ECONOMIX caucasian business week

November 17, 2014 #76

II INTERNATIONAL CASPIAN ENERGY FORUM – 2014 TO BRING RECORD NUMBER OF DELEGATES TOGETHER

EY ENTREPRENEUR OF THE YEAR 2014 GEORGIA – MAMUKA KHAZARADZE

amuka Khazaradze, TBC Group, was named the first EY Entrepreneur of the Year Georgia on a Gala Awards Ceremony held in Radisson Blu Iveria

Hotel. 2014. EY Entrepreneur Of The Year™ is the world’s most prestigious business award and is held in 145 cities of more than 60 countries for 28 years. The program aims to recognize and celebrate outstanding and innovative entrepreneurs who inspire others with their vision, leadership and achievement. In 2014 Georgia joined these countries to award its best entrepreneur. EY Georgia launched the Program in association with the Ministry of Economy and Sustainable Development of Georgia. The judging panel consisted of Ruben Vardanyan, founder of Troyka Dialog, himself EY Entrepreneur of the Year 2004 Russia and jury member of World Entre-

preneur of the Year 2012, Ketevan Bochorishvili, Deputy Minister of Economy & Sustainable Development of Georgia, George Bachiashvili, Executive Director of Co-Investment Fund of Georgia, Devi Khechinashvili, Chairman of the Association of Insurance Companies of Georgia and George Tchirakadze, President of the Business Association of Georgia. Thanks to the organizers and jury. I think these events are a great incentive for the Georgian business and helpful to the general business environment. As for my victory, it belongs to the TBC team and I want to thank each of them” - said Mr. Khazaradze In June 2015, Mamuka Khazaradze, the holder of the title EY Entrepreneur of the Year 2014 Georgia, will be invited to Monte Carlo to present Georgia at the global award ceremony - World Entrepreneur Of The Year® and compete for the title of the world’s best entrepreneur.

II International Caspian Energy Forum – 2014 (www.caspianenergyforum.com), which will take place in Tbilisi on November 14, 2014 with participation of President of Georgia Giorgi Margvelashvili, aroused big interest among international investors and attracted a record amount of participants and delegates. The program of the conference consists of three parts. The first section will be held under the chairmanship of the Vice Prime Minister, Minister of Energy of Georgia Kakha Kaladze, and dedicated to energy integration of the countries of the Caspian-Black Sea and Mediterranean regions to the global energy markets, key role of Georgia in energy, transport and infrastructure projects. The second section of the Caspian European Forum will be held under the chairmanship of Vice Prime Minister, Minister of Economy and Sustainable Development of Georgia George Kvirikashvili, and dedicated to development of the economic sector and prospects of mutual relationship with the EU. After the forum the heads of companies will get a chance to take part in a simultaneous chess game with the five-time Georgian women’s champion, Olympic champion Maia Lomineishvili. On the same day, the international Caspian Energy Award prize awarding ceremony will be held as a part of the official gala reception. The event in Tbilisi will be attended by the heads of government institutions, ministries,

committees and agencies of Georgia as well as the countries of the Caspian, Black Sea and Mediterranean regions, representatives of diplomatic missions and missions of international organisations accredited in Georgia, and also heads of large international companies. The official support is provided by the Administration of the President of Georgia, the Ministry of Energy of Georgia, the Ministry of Economy and Sustainable Development of Georgia, SOCAR Energy Georgia, Georgian Oil and Gas Corporation and Caspian European Club. Golden sponsors of the forum are PASHA Bank Georgia LLC and Cross Caspian Oil&Gas Logistics LLC, Silver sponsor is Caspian Well Services Georgia LTD, and bronze sponsors are SNF Vostok LLC, Azertexnolayn LLC, Murphy Shipping and Commercial Services, and Improtex Travel Tours&Conferences.

RATINGS November 17, 2014 #76

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RATINGS OF COMMERCIAL BANKS IN TERMS OF TOTAL ASSETS, STOCK CAPITAL, TOTAL LOANS, TERM DEPOSITS, RESERVES ON AVAILABLE LOSSES AND NET PROFITS RATING OF COMMERCIAL BANKS IN TERMS OF TOTAL ASSETS (IN THOUSANDS OF GEL)

RATING OF COMMERCIAL BANKS IN TERMS OF TERM DEPOSITS (IN THOUSANDS OF GEL)

RATING OF COMMERCIAL BANKS IN TERMS OF STOCK CAPITAL (IN THOUSANDS OF GEL)

RATING OF COMMERCIAL BANKS IN TERMS OF NET PROFITS (IN THOUSANDS OF GEL)

RATING OF COMMERCIAL BANKS IN TERMS OF TOTAL LOANS (IN THOUSANDS OF GEL)

RATING OF COMMERCIAL BANKS IN TERMS OF RESERVES ON AVAILABLE LOSSES (%)

BUSINESS caucasian business week

November 17, 2014 #76

FIND OUT WHAT YOUR FAVORITE PIZZA SAYS ABOUT YOU It’s time for lunch on www.foodpanda.ge!

T GEPRA CONTEST WINNERS REVEALED

n November the 10th GEPRA held the awards ceremony for its issued contest in the Georgian Parliament’s National Library/ Members of the judges board Gia Gugushvili, Tamaz Varvaridze, Goga Chanadiri, Ekaterine Zhvania and Soso Galumashvili found the winner in Eto Zirishvili, who was presented with the grand prize by GEPRA’s CEO, Ekaterine Zhvania: an A3-sized Wacom drawing tablet. Member of the judges board Gia Gugushvili also named Zurab Markhvashvili as his favorite and awarded him with a prize. PR and Marketing Communications company GEPRA issued the design contest on creating illustrations for the “Flea and the Ant” fairy tale in September of this year. The contest went through two stages: the first was a freeform application ac-

tivity where participants were tasked with creating illustrations from a scene in the tale of their choosing. The second stage involved three contestants chosen by the judges, tasked with an additional assignment in order to finally determine the winner. “This was a trip back to childhood, in a world where we all come from. 28 works depicting our favorite childhood heroes from varied perspectives – a story of the ant and the flea, of a loyal friend who does everything he can to save the other. We all took great pleasure in viewing these new iterations of the “Flea and the Ant”. GEPRA congratulates the winner of the contest, Eto Gzirishvili, once again. We will be continuing the competition series and will be offering another interesting contest to the public very soon,” says Khatia Alpaidze, GEPRA’s Promotional Manager.

raditionally, pizza reigns as king during lunchtime. It’s in demand in offices, homes, birthday events, everywhere. They say our appearance speaks for us, but our appearance is most dependent on what we eat throughout the day. And on how we eat, to be more precise. It’s an interesting question. Which meal do you prefer? The answer may help you describe a person, and in some cases, without error. Women like changes, and when they decide on changing something, they always take the easiest route – changes in everyday routine. More often than not this may be reflected in the food. Pizza is something they choose to express their mood, their dispositions, and their tastes. And so, find out what your favorite pizza says about you! You’ll surely get an answer from “Pizza Time”, “Ronny’s Pizza”, “Fantastico”, “Public Coffee” and “Express Pizza” among others, the following link will help you find out more: http:// www.foodpanda.ge/restaurants/index/cuisines/ pizza-cuisine. “Margherita”, “Pepperoni”, „Proschuto - fungi“, “Salami”, “Milano”, “Quadro Formaggio”, “Capricciosa”, etc. All of this speaks of your taste and of you as a whole. Don’t miss out on lunch at www.foodpanda.ge, and find out what your favorite pizza says about you! “Margherita” – a stable lady, loved and respected everywhere. They’re usually balanced individuals, who dislike chaos and noise and prefer calmer environments. “Capricciosa” – someone with an inclination to put themselves in the spotlight where they don’t feel like they’re at the

center of attention. They have refined tastes and know exactly what to do to assert their independence in any given situation. “Parmigianna” – dislikes crowds. Comfort only comes amidst close friends, and doesn’t tolerate cold-hearted attitudes for long. “Public” – isn’t interested what others think of them! Their priority is to maintain self-confidence and keep up with their connections with people. Relationships are of topmost importance. “Salami” – they value friendships and people based on their individual abilities, and enjoy accessible commodities. As a reminder, foodpanda started operating on the Georgian market on March 21th, 2014 and has already gained the interest of a large part of society. As a matter of fact, food ordering on their online website – www.foodpanda.ge – has become more demanded than ever. The userbase is experiencing a similar growth and is currently over the 20 thousand mark, and foodpanda counts up to 100 famous restaurants in its partners to this date, with the figure still rapidly increasing.

“GAMOUVALI MDGOMAREOBA” WITH FOODPANDA

here’s no “Gamouvali Mdgomareoba” without foodpanda! The German brand started operating on the Georgian market on March 21th, 2014 and has already gained the interest of a large part of society. As a matter of fact, food ordering on their online website – www.foodpanda.ge – has become more demanded than ever. The userbase is experiencing a similar growth and is currently over the 20 thousand mark, and foodpanda counts up to 100 famous restaurants in its partners to this date, with the figure still rapidly increasing. Everyone likes the service – people of all ages and professions. Are you in a “Difficult Position?” Then visit www.foodpanda.ge at any time from you desktop computer, or use the mobile application – you’ll escape the predicament instantly! And now to move on from the introduction… On November 7-8, at the Tbilisi Event Hall, the first solo concert of the group “Gamouvali Mdgomareoba” was sponsored by foodpanda. The concert started with foodpanda! Everyone’s favorite panda was handing out branded pins, partook in selfie shoots and created a fun atmosphere.

11 CITY IN CITY - FROM DIRSICHALA TO MODERN RESIDENTIAL COMPLEX REAL ESTATE

November 17, 2014 #76

verything started in 2012. Azerbaijani investment holding AS Group Investment appeared in Georgia and founded AS Georgia subsidiary. The latter launched constructing a residential complex of DIRSI in 2012. A major part of the society skeptically met the project. They used to assert the company would fail to meet the schedule and construct a new complex in 2 years, but the fact is the company has kept the promise and on November 29 Tbilisi’s new residential complex will be unveiled with a solemn ceremony. A total of 450 families will become new settlers. The mini city presentation will be pompous. Over 300 guests have been invited from both Georgian and foreign state structures, as well as from business sector and culture society. The event, however, will not be held for only them - the DIRSI inauguration ceremony will be unveiled with a Tbilisoba-like event and any citizen will be able to attend it. The complex will provide genuine solemn atmosphere with specially organized mini kitchens to cook Georgian and Azerbaijani national dishes. The guests will be able to taste Khinkali, Mtsvadi (Roasted Pork), vegetable and fish roasted on a brazier. A special room will be allocated to Churchkhela (sweets made from grapes’ juice and nuts) and counters with Azerbaijani traditional sweets and alcoholic beverages. In the DIRSI complex grapes will be also symbolically pressed out and the new residents of the complex will drink first toasts. The stands will introduce handicraft works and national clothes. Overall mood will be tuned by folk ensembles. Famous and beloved ensembles of the Georgian society such as Georgian Voices, Martve, Group Forte and Nani Bregvadze will perform various favorite songs all day long. Special guests from Azerbaijan will lead the grand concert of the event. The event will play an important role in the history of both DIRSI complex and Tbilisi, because

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the capital city will change its appearance on that day. DIRSI is the first precedent of constructing complexes in Georgia. There were no similar complexes in Georgia before and therefore, I would like to talk about the project in details: DIRSI is an original and independent district between the river Mtkvari and Cholokashvili Street in the historical part of Tbilisi. The appellation of DIRSI derives from historical origins. DirsiChala (Dirsi Grove) was located on the territory in the last century. Gardens of fruits, however, were chopped down after the USSR collapse and the place turned into a devastated field. The company management has transformed this history into a wonderful discovery. DIRSI will get back its historical appearance and the number of plants and trees will beat all historical records, the management says. The complex has been planned and dislocated in such a way that its residents will have healthy residential environment, clear air, space and insulation. Beautiful views to the river Mtkvari and mountains add special charm to the complex. The DIRSI territory consists of many greened and recreation zones and this space exceeds all standards three times in size. The complex residents and guests will be able to walk through well-built squares, breathe clear air and look at wonderful views. DIRSI is a major residential complex in the South Caucasus with 20 buildings, 39 blocks and 4.898 finished apartments with built-in kitchen furniture and lined bathrooms. The major advantage of the Mini City is that it meets all needs and desires of new settlers. The new residents will never need to leave the complex territory, as the asset will have a shopping mall, nursery school, a secondary school, cafebars and restaurants, a boulevard and amusements park on 25 hectares. Along with various infrastructural projects, the complex territory will also include a modern trading and entertaining center, where both Geor-

giana and foreign brands, food assets, hypermarkets and parking places for 900 automobiles will be located. A modern and international standard nursery school on the complex territory will receive over 400 children. Moreover, your children will not have to pass a long way to a secondary school from the nursery school - high qualified teachers will offer various educational programs to pupils in pleasant environment. The residential complex has been projected so as children will not need to cross the motorway to get to school. The complex includes all necessary conditions of safety and comfort for children. A high standard medical asset with modern equipment will be constructed in the DIRSI complex center. The center will be staffed with qualified doctors and personnel, who will provide professional consultations and treatment to patients. Quiet cafe-bars and restaurants will make the leisure time of the residents and guests more pleasant. Beautiful environment, refined interior, high level service and mastership of chief cooks - all

these factors are sufficient to have a pleasant evening. The complex residents will never face problems with parking automobiles. Under the project, the complex will have underground and aboveground parking zones that will suffice for both the complex residents and guests. A wonderful boulevard along the river Mtkvari embankment is one additional advantage of the complex. The 3 kilometer long boulevard is accompanied by a cycling track. Thus, there are all conditions for healthy lifestyle followers to train and walk. Each yard in the complex will have got modern children square. Mini football and basketball squares and tennis courts will be also constructed for adults. The entertainment park will include attractions, strolling paths, fountains and movie theaters. I believe the above factors suffice to prove that the 29th of November will be marked as a solemn date in the history of Tbilisi and all residents of the capital city will have a genuine ground to celebrate this date together with future residents of the DIRSI complex.

THE FIRST PHASE OF CONSTRUCTION OF THE LARGEST RESIDENTIAL COMPLEX OF SOUTH CAUCASUS IS FINISHED

irsi welcomed journalists in the end of October to celebrate the completion of the first phase of its construction. Eleven buildings of the largest residential complex in South Caucasus have been built. The completed complex, expected by 2016, will have twentytwo buildings, tallest of which will be twenty-six stories. There will be more than five thousand Dirsi apartments, each of which will come with a furbished kitchen and a bathroom. The complex, located between the Cholokashvili street and the river Mtkvari is definitely something novel for the Georgian real estate market. The residential area will be self-sustained in the sense that its residents will have their own local schools, sports grounds, medical facilities, shopping mall, and a recreational zone. All of these

will be located on the 40 hectares of land that is Dirsi. The complex is being built by “AS Georgia” company, which is the subsidiary company of the Azerbaijan Investment Holding “AS Group Investment”. The company has already been operating on international markets of real estate for 10 years and supports several business directions, including, extraction and manufacturing of construction materials, constructing and managing the investment projects. While the completed eleven buildings are awaiting their future residents, Georgian journalists had a chance to visit the residential complex of Dirsi, walk down the boulevard on Mtkvari shore and spend the evening in a pleasant environment. Nino Gojiashvili

MARKETS caucasian business week

November 17, 2014 #76

CURRENT MAJOR MARKET MOVERS

fter reaching multi-year highs, the US Dollar Index (I.USDX) reversed its gains against most major currencies led by US jobs data, which fell short of expectations. NFP data showed US economy adding 214,000 jobs in October as compared to the consensus estimates of 229,000 jobs. Although the NFP data fell short of expectations, the unemployment rate for October dropped further to 5.8%, and hence last week’s slightly weaker US employment data doesn’t seems to pose any serious risk for the ongoing strong up-trend for the US Dollar. In other economic developments – ECB made no changes to its policy stance, but ECB President Mario Draghi’s comments indicated central bank’s commitment to further expand its balance sheet. This coupled with ECB’s dovish outlook capped any major pull-back for EURUSD, which earlier fell to its lowest level since August 2012. Moving forward, Euro-zone preliminary GDP data, BoE’s quarterly inflation report along with UK employment data and monthly retail sales data from the US will set the tone for the upcoming movement in the Forex market. Notable economic releases economic calendar that could materially impact the movement of GBP pairs include UK employment reports for the month of October and Bank of England’s (BoE’s) quarterly inflation report, both scheduled for release. Following a lower-than-expected drop in the number of people claiming for unemployment related benefits, the report is expected to show the number to decline by 24,900 and the unemployment rate is also seen dropping to 5.9% from 6.0% recorded in the previous month. However, stronger employment data is unlikely to change BoE’s cautious economic outlook, which could be seen in the central bank’s quarterly inflation report, that reveals central bank’s inflation projection and economic growth over the next 2 years. Market participants will closely scrutinize the report in order to evaluate the possibilities of any further delay in rate-hike by BoE, which eventually would add to expectations of

continuing near-term bearish movement for the British Pound (GBP). The upcoming Euro-zone economic calendar features the preliminary release of the composite Euro-zone GDP data along-with GDP print of region’s three largest economies, Germany, France and Italy for the third-quarter of 2014. The flash version of the 17-nation composite GDP is expected to show a nominal growth of 0.1%, while Euro-zone’s two largest economies, Germany and France are expected to have expanded by 0.1% and the third largest economy, Italy, is expected to have contracted by 0.1%. Moreover, since the ECB has been targeting to defend region’s economy against the risk of deflation, the importance of Eurozone inflation data has risen. Hence, Euro-zone final inflation data for October would be closely watched. Rising expectations that ECB might announce additional stimulus measure to support the fragile Euro-zone economy, already seems to have capped any major upside for Euro. Further, a disappointing GDP reading would add to the possibilities of further near-term weakness for EUR pairs. From the US, following a decline of 0.3% in September versus expected decline of 0.1%, Economists expect October retail sales to register a growth of 0.2% in October. Meanwhile, core retail sales, which excludes automobile sales, is also expected to register a growth of 0.2%, after recording a decline of 0.2% in the previous month. Only a large deviation from the expected retail sales number, the only important feature from lighter US economic calendar, could possibly generate some momentum in the market. Haresh Menghani Senior Market Analyst Admiral Markets

RESEARCH November 17, 2014 #76

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NEIGHBORHOOD

Putin Gets a Brief Economic Respite From Mother Nature

WHICH SUPER/HYPERMARKETS DO TBILISI RESIDENTS FREQUENT?

ecently, there has been an increasing number of net supermarkets as well as hypermarkets in Tbilisi. Consequently, citizens now have a big choice on where to go shopping – either to small market nearby or in hypermarkets in suburbs of Tbilisi. ACT’s research revealed that during the last three months, small local markets are the most popular places for shopping among residents of Tbilisi. 44% of the population frequented exactly this type of shops. As for net markets, two out of five (38%) citizens visited these stores most frequently. 16% of residents of capital mainly went shopping to hypermarkets (Carrefour and Goodwill) during last three months.

Results show that product quality is the most important criterion for residents of the capital when they select a market for shopping (31%); second most important factor is the proximity of shops (26%). Notably, almost half (44%) of Tbilisi residents named product price as a general criterion for selection, but only 21% said that it is the most important factor.

he German economy dodged a technical recession in the third quarter, with private consumption and trade supporting modest growth, a senior official in the economy ministry said on Thursday, a day before quarterly GDP data are published. “We are not expecting a recession. We don’t anticipate a contraction in the third quarter,” Jeromin Zettelmeyer, the head of the economic policy section at the ministry told Reuters. “Private consumption remains supportive and foreign trade should also make a small positive contribution.” The German economy contracted by 0.2 percent in the second quarter of the year and some economists are expecting another negative number in the JulySeptember period, a result which would put Europe’s largest economy into a technical recession. Economists polled by Reuters are expecting quarter-on-quarter growth of 0.1 percent in the third quarter.

Azerbaijan announces oil, gas output volumes

nergy-rich Azerbaijan produced 35.6 million metric tons of oil and gas condensate in January-October 2014. This figure amounted to nearly 36.11 million metric tons in the same period of 2013, Azerbaijan’s State Statistics Committee reported on November 13. Azerbaijan produced 43.1 million metric tons of oil and gas condensate in 2013, compared to 42.98 million metric tons in 2012. The committee went on adding that in the reported period Azerbaijan produced around 15.5 billion cubic meters of commercial gas, which stood at over 14.62 billion cubic meters in the same period of 2013. Azerbaijan produced 17.9 billion cubic meters of commercial gas in 2013, compared to 17.24 billion cubic meters in 2012. The major part of Azerbaijan’s natural gas is produced from giant Shah Deniz gas condensate field in the Caspian Sea. The proven gas reserves hit 2.3 trillion cubic meters in Azerbaijan, but when it comes to the projected reserves, the figure can reach six trillion cubic meters. It is expected that the volume of gas production in Azerbaijan will reach 30.2 billion cubic meters in 2018, compared to 28.42 billion cubic meters forecasted for 2014.

Azerbaijan increases gas production by 6%

A The survey was conducted on 417 adult residents of Tbilisi. The statistical error of the data does not exceed 4.84%. The survey was conducted exclusively for internet magazine “Marketer”. Third party must give a notice before using the given information fully or partially. http://www.act-gr.com/

German economy averted recession in third quarter: ministry

ussia’s economy has taken blow after blow this year from Western sanctions, fleeing investment capital, and slumping prices for oil. At least Mother Nature is giving Russia a break. The government today reported year-on-year growth of 0.7 percent during the third quarter, well above the 0.3 percent consensus of 21 economists surveyed by Bloomberg. The key driver was agricultural output, which rose 9.9 percent compared with the same period in 2013, when the country’s grain harvest was hit by drought. Alas for Russia, nearly all other indicators are headed in the other direction. Industrial and retail growth slowed during the quarter, and capital investment was down 2.5 percent, following contraction in the two previous quarters. And while oil prices started their decline during the period, things really fell off a cliff after the third quarter ended. Oil now hovers below $80 a barrel, a four-year low.

E As for frequency, research demonstrates that the biggest number (41%) of Tbilisi residents visit markets/supermarkets on daily basis. Although, there are also those citizens, who go shopping once a month or even more rarely (6%). It is also noteworthy that 4% of residents of the capital do not even go to shops/supermarkets.

WORLD NEWS

zerbaijan produced 35.6 million metric tons of oil and gas condensate in January-October 2014, compared to nearly 36.11 million metric tons in the same period of 2013, the Azerbaijani State Statistics Committee said Nov. 13. Azerbaijan produced 43.1 million metric tons of oil and gas condensate in 2013, compared to 42.98 million metric tons in 2012. The major part of oil produced in Azerbaijan falls to the Azeri-Chirag-Guneshli oil and gas fields’ block and Shah Deniz gas condensate field, which are developed jointly with foreign partners. Around 15.5 billion cubic meters of commercial gas were produced in the country in JanuaryOctober compared to over 14.62 billion cubic meters in the same period of 2013, the State Statistics Committee said. Azerbaijan produced 17.9 billion cubic meters of commercial gas in 2013, compared to 17.24 billion cubic meters in 2012.

China and U.S. Open Door Farther to Tourists, Students, Businesspeople

midst the pomp and flash of red carpet airport welcomes, a banquet with a cultural show and elaborate fireworks display, and meetings by heads of state came a more quotidian announcement: China and the U.S. will expand the duration of visas each country grants the other, president Barack Obama announced in a speech to the world leaders attending the Asian-Pacific Economic Cooperation (APEC) summit. Don’t be fooled by what sounds like a low-level border control issue. Starting on Wednesday, business, student, and tourist visas that previously had to be renewed yearly will be extended, with students given five-year terms and business visas good for a decade. That’s expected to provide a major payoff in trade and investment, Obama noted in his speech. China is the U.S.’s fastest growing export market. Meanwhile, investment from China in the U.S. has increased sixfold in the past five years. “All these things mean jobs for the American people; and deepening these ties will mean more jobs and opportunity for both of our peoples,” the U.S. president said.

Warren Buffett buys Duracell for $3 billion

arren Buffett’s Berkshire Hathaway Inc. is buying the Duracell battery business from Procter & Gamble Co. in a deal valued at approximately $3 billion U.S. P&G, the world’s biggest consumer products maker, had announced last month that it wanted to make Duracell a stand-alone company. P&G, which acquired Duracell in 2005, said at the time that it preferred a spinoff of Duracell, but that it was considering a sale or other options. P&G, whose products include Tide detergent and Pampers diapers, has been trimming its product lineup to focus on its top performers. After it finishes jettisoning more than half its brands around the globe over the next year or two, P&G has said that it will be left with about 70 to 80 brands. The sale of Duracell to Omaha, Nebraska-based Berkshire Hathaway turned out to be slightly different from P&G’s initial plans. P&G will receive shares of its own stock that are currently held by Berkshire Hathaway. Those shares are currently valued at about $4.7 billion. Offsetting some of those costs, P&G will contribute about $1.7 billion to Duracell before the deal closes. “I have always been impressed by Duracell, as a consumer and as a long-term investor in P&G and Gillette,” Buffett said in a statement on Thursday. Cincinnati-based P&G said it will take a charge of about 28 cents per share in its current quarter related to the Duracell deal. The transaction is expected to close in the second half of 2015.

PUBLICITY caucasian business week

November 17, 2014 #76

TBILISI GUIDE November 17, 2014 #76

Embassy United States of America Embassy 11 Balanchivadze St., Dighomi Dstr., Tbilisi Tel: 27-70-00, 53-23-34 E-mail: tbilisivisa@state.gov; askconsultbilisi@state.gov United Kingdom of Great Britain and Northern Ireland Embassy 51 Krtsanisi Str., Tbilisi, Tel: 227-47-47 E-mail: british.embassy.tbilisi@fco.gov.uk Republic of France Embassy 49, Krtsanisi Str. Tbilisi, Tel: 272 14 90 E-mail: ambafrance@access.sanet.ge Web-site: www.ambafrance-ge.org Federal Republic of Germany Embassy 20 Telavi St. Tbilisi Tel: 44 73 00, Fax: 44 73 64 Italian RepublicEmbassy 3a Chitadze St, Tbilisi, Tel: 299-64-18, 292-14-62, 292-18-54 E-mail: embassy.tbilisi@esteri.it Republic of Estonia Embassy 4 Likhauri St., Tbilisi, Tel: 236-51-40 E-mail: tbilisisaatkond@mfa.ee Republic of Lithuania Embassy 25 Tengiz Abuladze St, Tbilisi Tel: 291-29-33 E-mail: amb.ge@urm.lt Republic of Latvia Embassy 16 Akhmeta Str., Avlabari, 0144 Tbilisi. E-mail: embassy.georgia@mfa.gov.lv Greece Republic Embassy 37. Tabidze St. Tbilisi Tel: 91 49 70, 91 49 71, 91 49 72 Czech RepublicEmbassy 37 Chavchavadze St. Tbilisi ;Tel: 291-67-40/41/42 E-mail: czechembassy@gol.ge Web-sait: www.mzv.cz Japan Embassy 7 Krtsanisi St. Tbilisi Tel: +995 32 2 75 21 11, Fax: +995 32 2 75 21 20 Kingdom of Sweden Embassy 15 Kipshidze St. Tbilisi Tel: +995 32 2 55 03 20 , Fax: +995 32 2 22 48 90 Kingdom of the Netherlands Embassy 20 Telavi St. Tbilisi Tel: 27 62 00, Fax: 27 62 32 People’s Republic of China Embassy 52 Barnov St. Tbilisi Tel: 225-22-86, 225-21-75, 225-26-70 E-mail: zhangling@access.sanet.ge Republic of Bulgaria Embassy 15 Gorgasali Exit, 0105 Tbilisi, Georgia Tel: +995 32 291 01 94; +995 32 291 01 95 Fax: +99 532 291 02 70 Republic of Hungary Embassy 83 Lvovi Street, Tbilisi Tel: 39 90 08; E-mail: hunembtbs@gmail.com State of Israel Embassy 61 Agmashenebeli Ave. Tbilisi Tel: 95 17 09, 94 27 05 Embassy of Swiss Confederation’s Russian Federation Interests Section Embassy 51 Chavchavadze Av., Tbilisi Tel: 291-26-45, 291-24-06, 225-28-03 E-mail: RussianEmbassy@Caucasus.net Ukraine Embassy 75, Oniashvili St., Tbilisi Tel: 231-11-61, 231-12-02, 231-14-54 E-mail: ukraina_pu@wanex.net; emb_ge@mfa.gov.ua Consular Agency: 71, Melikishvili St., Batumi Tel: (8-88-222) 3-16-00/ 3-14-78 Republic of Turkey Embassy 35 Chavchavadze Av., Tbilisi Tel: 225-20-72/73/74/76 E-mail: turkemb.tbilisi@mfa.gov.tr Address: 8, M. Abashidze str. Batumi, Georgia; tel: (8-88-222) 7 47 90 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.es Romania Embassy

caucasian business week 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 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 PICASSO Tbilisi , 4 Miminoshvili St. , Tel: 98 90 86 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 THEATRE OF PANTOMIME Tbilisi. 37 Rustaveli Ave. Tel: 99 63 14, (77) 41 41 50 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

Akhvledianis Khevi N13, Tbilisi, GE. +995322958377; +995599265432

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,

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

PUBLICITY caucasian business week

November 17, 2014 #76