Caucasus Business Week #237 by Caucasian Business Week

May 14, 2018 - www.cbw.ge

237

As Russian Wheat Prices Increase, Will Bread Prices Skyrocket in Georgia?

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Mining Company Has Added 500 million GEL to the State Budget Since 2011

On the whole, ratings are interesting for us, both as general indicators of the country and as economic indicators. We know that strong business means a strong country, and that a strong company signiﬁes a strong Georgia. Doing business in Georgia is so simple that even many ...

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Giga Tatulishvili: “This is one ﬁeld where technology cannot be crucial”

It’s important to learn what society, the customer and the target group in general needs, and you need to respond appropriately. How to achieve this depends only on the performer, which marketing allows. This is both the beginning and the end of successful communication.

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Minister of Finance Refuses to Retreat

“Pawnshops should be banned from accepting vehicles and real estate. Their activity should be strictly conﬁned and they should not touch registered property. We have heard arguments from our opponents that citizens who want to launch businesses will lose access...

News Memorandum Signed Between Georgian Railway and Chinese Lianyungang port Today a memorandum was signed between the Georgian Railway and China’s “Lianyungang ” port. The document was signed by General Director of Georgian Railway Davit Peradze and President of Lianyungang Port Chu Siangiang. Memorandum covers exchange of information on cargoes between the parties, from China to Georgia, as well as from Georgia to Europe, exchange of information between countries and cooperation in the use of trans-transit corridor. Today’s meeting was a trilateral meeting in which Georgian Railways and Chinese companies – “Kozko” and “Lianyungang” port were participated. The Georgian and Chinese parties introduced the possibilities of their own companies and agreed on future cooperation. Passengers will be able to take BTK Train from 2019 Passengers will be able to use the Baku-Tbilisi-Kars rail line from 2019 according to the head of Azerbaijan Railway, JavedGurbanov. He said passenger operations will start once the railway receives its order of Stadler trains. ”I met with Stadler representatives, they clarified that trains will be ready by the beginning of 2019,” said Gurbanov. The Baku-Tbilisi-Kars railway officially opened last year. The implementation of the Baku-Tbilisi-Kars railway project began in 2007. The railway is being constructed on the territory of three countries: Azerbaijan, Georgia and Turkey. Georgia Recognized as fifth Most Westernized of ex-Soviet Countries Experts from StrategEast, a U.S. strategic center for political and diplomatic solutions, have recognized Georgia as fifth most westernized countries among post-Soviet states. Georgia scored 62 points, while Estonia 93, Lithuania 85, Latvia 82 points out of 100. Georgia is followed by Ukraine and Moldova with 54 and 56 points respectively. Pawnshops will Be Banned to Take Vehicles and Real Estate as Loan Guarantees Pawnshops will be banned to take vehicles and real estate in exchange for loans, Minister of Finance MamukaBakhtadze said. Pawnshops represent one of the key sources of excessive indebtedness in Georgia. ‘Moreover, there are cases when pawnshops provoke crimes. Therefore, new rules will be applied to pawnshops too. We have started consultations and we back the idea of banning pawnshop to accept vehicles and real estate as loan guarantees”, Bakhtadze noted. Arguments of opponents as if this decision will restrict access to startup capital is not acceptable, he said. “Dear fiends, can you name any successful business project started with pawn loans”, Bakhtadze asked. Minister of Finance: Effective Interest Rate’s Top Margin will Decline to 50% from 100% The top margin on effective interest rate will decrease to 50% from 100%, Minister of Finance of Georgia MamukaBakhtadze said. Previously, it was widespread practice that interest rates indicated in loan agreements did not reflect the reality, he added. “Various commission fees, fines were added to the loan and this factor was doubling and tripling interest rates. Borrowers should know in advance how much percent they will have to pay. The top margin should be determined definitely and the 100% top margin should decrease.

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Education Ministry to Introduce MINECRAFT and Other Computer Games to Public Schools Ministry of Education of Georgia plans to launch implement ion of Evrika project at public schools. The project calls for conducting online lessons at all public schools. Lessons will be led by professors in Live Stream regime. “Professors will talk about values of their fields in understanding language for children. The project will enable pupils to get determined in their talents”, MikheilChkhenkeli said. Caspian Energy Forum Tbilisi Took Place in Georgia The 5th Caspian Energy Forum Tbilisi-2018 has been held in Georgia. The 5th International Caspian Energy Forum Tbilisi – 2018 hosted by the Georgian company Caspian Energy Georgia gathered 300 delegates from 17 countries. First Deputy Chairman and Chief Executive Officer of the Caspian European Club TelmanAliyev said at the opening ceremony. Romanian Blue Air to Operate Regular Flights on Georgian Aviamarket Romanian company ”Blue Air” is planning to operate regular flights on Georgian market. Airline will launch flights from 2019 summer season. KetiAleksidze, the head of the Georgian Airports Association, negotiated with management in the Bilbao, where the parties attended the Route Europe 2018 annual forum for the development of aviation. As KetiAleksidze explains, negotiations were quite successful and Blue Air will discuss flights to Bucharest-Tbilisi-Bucharest. Negotiations between the parties will continue for dealing on further details. Rugby Stadium Construction Underway with RMG Company Support in Kazreti Rugby stadium construction works are underway in the settlement of Kazreti with the support of RMG company. Bolnisi City Hall has allocated a due territory for building a rugby stadium. Ground works are being performed by RMG company, which has cleaned location by machines and evened ground cover for the stadium. The project is divided in two phases: construction of stadium ground and premises. World Bank: In Georgia, Blockchain Technologies Provide Significant Opportunity to Innovate, Improve Services for Citizens With 5.0% growth in 2017, and a projection of 4.5% for 2018, Georgia should take full advantage of new digital technologies to innovate and improve its services, says a new World Bank report titled Cryptocurrencies and Blockchain: Europe and Central Asia Economic Update. Blockchain technologies are widespread in Georgia, thanks to a highly supportive environment for technological innovation and the mining of cryptocurrencies. The world’s third largest miner of cryptocurrencies, Georgia is home to one of the largest mining companies in the world, and surveys indicate that up to 5% of households in the country are engaged in cryptocurrency mining or investment.

The Editorial Board Follows Press Freedom Principles Publisher: LLC Caucasian Business Week - CBW Director: Levan Beglarishvili WWW.CBW.GE Address: Aleksidze Street 1 Sales: Mob: +995 591 01 39 36 Email: caucasianbusiness@gmail.com Editor: Nutsa Galumashvili. Mobile phone: 595 380382 Copy Editor: Ellie Rambo Reporters: Nina Gomarteli; Mariam Kopaliani; Merab Janiashvili, Economic columnist: Andria Gvidiani; Technical Assistant: Giorgi Kheladze;

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As Russian Wheat Prices Increase, Will Bread Prices Skyrocket in Georgia? Russian wheat has increased in price, and ninety percent of the wheat used in Georgia is imported from Russia. Experts say that the reason for the price increase is the Russian ruble’s devaluation. In parallel with this, pricing policies are changing in other wheat-producing countries (like the US and Argentina). The current pricing trend by the Food and Agriculture Organization (FAO) shows that the monthly index of cereal prices has increased by 1.7 percent, which exceeds the same period of the previous year by 15.4 percent. Caucasus Business Week was interested in the current market situation, and whether the price of wheat and flour will increase, thereby changing the price of bread. Levan Silagava, the head of the Georgian Wheat Association, is not expecting a bread price increase in the coming months, but can’t completely assure consumers that prices will stay the same. As for the forecast within the next two months: Silagava said that the price of wheat and flour is likely to increase, though bakers will not raise product prices due to remain margins. “There are two factors. The positive part is that in Russia, the harvest was enormously prolific last year. So the quantity of transient stock is high. Plus, this year’s harvest gives us a stable picture. The price of wheat is positive, too. Mainly, the price of wheat usable for bread flour is 34-35 GEL. The maximum price for bakers is about 42-43 GEL. The currency fluctuation must be catastrophic for the maximum point to lead to a bread price increase. The negative factor is this: the combination of the dollar with the Georgian lari and ruble. Since we have many positive factors aligning, increases in bread prices will not happen,” Silagava explained.

Malkhaz Dolidze, the head of the Bakery Products Association, does not share Levan Silagava’s opinion. According to him, the existing situation on the international market affects the domestic market as well. Accordingly, the price of wheat and flour will increase, and this increase will be directly reflected in bread price. “I am not announcing that bread prices will rise. Make judgments yourselves. It is a fact that wheat price is increasing: generally, that makes flour expensive. All this impacts the price of bread. As for the baker’s margins, they no longer have a huge reserve. From taxes to phytosanitary fees, everything presses on us, and what margins can we have?” Dolidze said. Making predictions is not hard, said Nugzar Goniashvili, the head of the Margi bakery company. “The process of increasing cereal price has already begun on the domestic market and will rise more in the future,” he said. “It is not difficult to predict all this. When grain price increases on the international market, of course it increases here too, and will increase more. I can’t give an exact response regarding bread because it is the most in-demand product, and it is not easy to have a specific position. As for wheat and flour: perhaps the mills have a certain amount of reserve supplies, but eventually it will run out and they will have to buy the product at its new price. Ultimately, wheat and flour price will increase drastically,” Goniashvili said. Arisi Bochoidze, the director of the Ifkli company, said that they buy raw materials for producing white bread from Georgian mills. “At this moment, the price of the one sack of flour we use has increased by one. Because we are not a flour importer on

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the Georgian market. We can’t say if the price growth will continue, though wheat price on the international market is reflected by imported wheat, and then by flour price,” said Bochoidze. “Bread’s final price depends on raw materials and energy resources. If raw material price increases, it affects the selling price of bread. At this time, flour price is not so scary that we should review the bread price at Ifkli. If the price increases continue and become systematic, then we, bread producing companies, will have to re-examine bread prices. Little changes don’t affect products, because during the year we have the opportunity to estimate the price of the product and be ready for minor changes in ingredient price. Besides, we always try to maintain an unaltered price on the product, as long as circumstances allow us to,” added Bochoidze. The director of Mkhneoba Ltd, Giorgi Siprashvili, said that his company uses only locally-produced wheat and does not rely on imported products. He added that price corrections are not planned.

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RMG

Mining Company Has Added 500 million GEL to the State Budget Since 2011

Recently, noisy developments have been swirling around the RMG Copper company. Initially, the company was accused of environmental pollution and creating health problems in its surrounding region. Later, the company was attacked using political schemes, and a state auction was thwarted. Politicians did not cede a nearby land plot to the company. The land had been put up for auction for an annual 15,000 GEL leasing fee. Politicians paid 5 million GEL for the land instead. However, time has passed and nobody has signed a land-leasing agreement with the government. At this stage, the same politicians object to a new investment project worth several million dollars. Both private experts and government groups have released statements on these developments. RMG managers have also commented on the issue. Joni Shubitidze, the executive director of RMG, talked in detail about the company’s current situation.

He clearly said that a valuable environment is required for business development. We talked about the past and current situation at the company. Naturally, we talked about future projects and plans too. To be brief, the Business Ombudsman received full information about our production process. At the meeting we noted that the company has launched

How would you appraise the current investment environment in Georgia? In many cases, various groups stage direct and indirect pressure on businesses. Your opinion, as the head of a major investment group, is of crucial importance. How would you judge the fact that political parties recently participated in auctions? I would like to note that Georgia has shaped its normal investment environment around state regulations. Therefore, today we are able to make investments in the mining field. Serious work has been made to foster the business sector and entrepreneurship, and this tendency is reflected in all fields. It is important for any government to create a free environment for business and production. However, a group of people does not cooperate with the government, because they prefer to follow only their own interests. Regretfully, some politicians have shown the same position. There are groups that use the current liberal environment of the country to make any effort to frustrate both the state and economy on their own behalf, and this tendency damages companies and the reputation of the country. They should remember that the international community and financial institutions are supervising these developments. You have met with the Business Ombudsman regarding developments at RMG. It is interesting what points were made at the meeting and, in general: how do you appraise the role of government in relation to business? This was the first contact our group had with the Business Ombudsman's Institute, and I would like to note that the the communications were held in a very good, professional and constructive environment. Irakli Lekvinadze appraised the situation from the standpoint of both business and state interest.

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Business Sector Driving the Economy Face Problems

large-scale modernization and introduced modern technology. RMG management has made this decision and changes have started. Similar development is necessary for the harmonized co-existence of people, the environment and business. It is very important for us that the company resolves historically existing problems. We take efficient steps in daily to get the results of the world's developed countries. Recently Georgia has improved its position on various international rating systems. In terms of the simplicity of doing business, our country almost leads the list. It is interesting how the business sector perceives the business environment in the country. How simple is it to do business in Georgia? What is your position, as an investor, on these ratings? Does the business sector believe these international ratings are important? On the whole, ratings are interesting for us, both as general indicators of the country and as economic indicators. We know that strong business means a strong country, and that a strong company signifies a strong Georgia. Doing business in Georgia is so simple that even many European countries would envy us. But there is another extreme, when simplicity and liberalism are used by our opponents and groups that have rushed into business from politics. Key actors in the economy, which should be the backbone of the country, face serious obstacles because of these attacks. Let's look to the power sector and mining field for examples. This is a manipulated process and these groups frustrate business and the economy of the country. A number of nongovernmental organizations are also very interesting, as they fulfill unclear jobs and are financed from sources mysterious to me. They frequently operate on behalf of specific private groups. Representatives of this group always assert that they are top experts and that they know everything when it comes to mining, geology, archeology, the power sector, peculiarities of mining ore, art and cultural heritage issues. It seems that they have the absolute right to accuse everybody without substantiation. In this case, they think another party has no rights. I apologize to many professionals in the nongovernmental sector, but I would like to say to these

self-proclaimed experts that we represent a team of professionals in our field. I personally, and a lot of workers at our company, have worked in the mining industry for decades and have international experience. Therefore, we will not only defend ourselves legally, but also implement all our plans. How do you appraise the role of the government? Should the authorities be more careful when various groups object to projects worth tens of millions of dollars? To be frank, the government carries out the policies that it should. I regret that part of our society is not ready for free and democratic values. A group of certain persons strives for the old times, and they try to benefit in this way. These groups benefit from this situation and they try to keep society under ideological pressure. Fortunately, people have learned to distinguish truth and fiction. We think similar situations require strict regulations for the law and authorities to protect the investment environment and businesses. I think the authorities will have to carry out certain measures anyway to provide additional regulations in this respect. Some nongovernmental organizations say that pollution scales are terrible in the region, and that the company does nothing to reduce environmental damage. They refer to the Health Ministry statement that RMG will finance research works, but that this work has not yet been finished. What would you say to these people, and will the company finance research? I have not heard that anyone applied to RMG for conducting joint research work. I openly declare in the name of the company stakeholders and the whole group that we are ready to participate in such research. As for the health problems in the region, if these problems were caused by our company, we have different information regarding this issue. For example: Kvemo Kartli region ranks fifth in the number of residents with cancer, according to official statistics. What data do our opponents use when making ungrounded statements? Do they think that official statistics do not exist? The Kvemo Kartli region does not differ from other regions. On the contrary, this region is behind many regions in this regard. Are there fewer problems in Tbilisi, or in other regions? I do

not think that, despite our activities being related to certain serious health risks, that our company damages nature or human health. I have been in this business my entire life, as has my whole family. We were taught this field and we are professionals in this field. We know how to do our work and we will not harm ourselves or other people. We know the value of working, and our company unites 3,000 persons who serve a real business and create a real economy. I repeat that all affairs should be done by professionals and all business should be done properly. Neither business nor the country will be developed without this principle. The land that a group of opposition parties bought by auction has an approach road and it crosses your territory. Will you concede this approach road to the new investor? We needed this land for waste, because there is no ore there. This land is unfit for even sowing cereals. To put simply, this land is useless, however, they are able to plant a tree that they bought at another auction. If they paid 5 million GEL to plant trees, we will assist them in this affair, but I think they had other goals. They thought we would be afraid and they would receive personal benefits, but when they guessed that this trick would not work, they resorted to direct attacks and now threaten to suspend our production process. As for the road, this is like a neighbor asking me to enter his house through my balcony. To put simply, when buying land, you should arrange infrastructure, too. We have acted this way in all our projects, and we have done everything ourselves. Moreover, we do everything ourselves in all our new projects – we arrange roads that will be used by village residents, too, and we build infrastructure in Bneli Khevi. We frequently hear that RMG company receives huge profits every year. What would you say about the company’s financial situation, and what amount has the state budget received from this company? First of all, I would like to note that the company has overcome a lot of difficulties since 2011, because our group manages a company with a 40-year history. The company has fulfilled a huge job since its inception, to be a leader in this

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field in terms of labor and production safety, mining through unique technologies, and introducing energy-efficient technologies. We, as an investment group, have spent considerable money searching for a new deposit. We have found three similar deposits. We have spent 70 million GEL on only geological research work. On the whole, the company has put 500 million GEL into the state budget since 2011. The company has paid more than 200 million GEL for licenses alone. From licensed territories, the local budget received 74 million GEL from 2012 to 2017, in the form of fees. Property tax contributions made up 4 million GEL, profits tax constituted 47 million GEL, income tax marked 62 million GEL, and the total amount of regulation taxes made up 49 million GEL. Moreover, we participate in social projects. For example, in Martkopi we will plant 1,000 trees. We rehabilitate public schools, kindergartens, sponsor sports clubs and repair stadiums, conduct archaeological research work and rehabilitate cultural heritage monuments. The company has allocated 12 million GEL for these projects. At this stage, our company employs more than 3,000 persons, 90% of whom are local residents. Each employee has an insurance package and free food. The average salary at the company is 1,400 GEL. Exports from Georgia grow yearly, and nonferrous metals occupy a significant ratio of total exports. Do you keep statistics about the ratio that RMG products are of the total export? I can assure you that this ratio exceeds 5%, which is proved by the fact that in 2017, RMG Group's ratio of total exports amounted to 150 million USD. Recently you have talked about the renovation and modernization of your production process. What do you mean by these statements? What changes and innovations are expected in this respect? Frequently our supporters, personnel, representatives and all other interested bodies who know RMG, say that it depends on us to resolve problems accumulated over the past 40 years, and this is true. Thirty million GEL is spent on reducing the of environment damage inflicted decades ago, through new technologies and new standards. We have pledged to minimize these risks and historical problems as far as we can.

Giga Tatulishvili: “This is one ﬁeld where technology cannot be crucial”

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Interview with AKA LTD | Mercedes-Benz Georgia’s General representative of Daimler AG in Georgia Head of the Marketing Department

Why did you decide to enter this ﬁeld, and what kind of opportunities does this profession give you?

What do you wish you knew before you started your career in PR?

I am an economist by profession, but the ﬁeld I've been working in for 12 years is linked to marketing. The truth is that I have had a particular interest in marketing since university. As for career growth, this is the area that oﬀers the greatest chance, since success depends entirely on knowledge and use of it creatively. I also must clarify that PR is just part of my work, and that's why I'm going to have to share with you my experience mainly in marketing.

In the field of marketing and PR, it is of great importance to study existing experiences, whether it be by observation, study and analysis of different market situations, or different areas and events. I personally had to actively seek foreign experience.

What is necessary for holding successful communication with the public? It’s important to learn what society, the customer and the target group in general needs, and you need to respond appropriately. How to achieve this depends only on the performer, which marketing allows. This is both the beginning and the end of successful communication. What three tips would you offer someone just starting out in PR? 1. In the absence of an informal deficit, perfectly study the field that is called marketing and PR; 2. Prior to taking a specific step, have the best possible information about the task; 3. Finally, in this field it is required to make a final decision, except for a well-executed assignment, which must be attached to the element of individuality. My advice looks too traditional, but I think it is oriented to a particular outcome.

Describe a typical work week. Every week is similar: the working time, schedule and job type are constantly changing based the specifics of the company. It is interesting also, and quite a bit of work, as people constantly expect novelties from us. How do you go about finding relevant contacts and sources? Marketing offers approved tricks and methods in this direction, but as for my experience, I consider the personal factor the most important. How do you prioritize and start your work day? Due to the specificity of the work, our company is the general representative of Daimler in Georgia, so my working day begins with the study of news provided by our German partners, then current issues are sorted by priority and I start working to get things done. Of course there are exceptional work days, too. What are the skills a Public Relations Specialist needs? It’s hard to say about a PR

manager, but the primary skill for a marketer is to think differently and have a creative attitude; be confident in his decisions and be able to predict final results. What trait do you value the most in your co-workers? In any profession or position, for me it’s crucial for there to be sincerity, a pleasant work environment that’s created by a professional staff, their responsibility and their attitude towards work. What is the best PR practice technology can’t change? I think this is one field where technology cannot be a determinant, no matter how progressive it is. As we often don’t create a tangible product, our product is a beneficial relationship with people, and the best practice here is to take into consideration experiences, yours as well as others’.

What are some growing trends in the public relations industry? I’m not sure how innovative it is, but it is becoming more important to forget about the “this is for an entire society” approach and to replace it with an individual approach that is related to each member of society. Our activities will be more eﬀective when we think of customers individually and hold direct communication with them, called Direct Marketing. Although this interview was more about marketing, it absolutely doesn’t diminish the importance and reality of PR, as these two professions are integral parts of each other. Successful marketing is a prerequisite for successful PR activities.

Minister of Finance Refuses to Retreat

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Regulations will Apply to All Credit Organizations, after Banks A month ago, the minister of finance,MamukaBakhtadze,declared the Georgian banking sector an obstacle frustrating the economic development of Georgia. Following this statement, the National Bank of Georgia (NBG) introduced new regulations on issuing loans without the examination of a client’s solvency. Starting May 7, commercial banks are banned from issuing loans without meaningful analysis of consumer solvency. Also, the total amount of such loans must not exceed 25% of the supervisory capital of commercial banks. MamukaBakhtadze has not changed his tone, and announced that regulations will be further tightened. New regulations will be applied to pawnshops. “Pawnshops should be banned from accepting vehicles and real estate. Their activity should be strictly confined and they should not touch registered property. We have heard arguments from our opponents that citizens who want to launch businesses will lose access to startup capital. Can you name any successful business project that used startup capital from vehicles put in pawnshops? Regretfully, the absence of regulations has encouraged unhealthy relationships between pawnshops and citizens, especially in terms of vehicles and real estate,” Bakhtadze said. The Minister of Finance has announced that the 100% top-margin annual interest rate on loans will be halved. This regulation began on January 1, 2017. As a result, the majority of online loan companies suspended operations or became microfinance organizations. Before the introduction of a top-margin interest rate on loans, the rate could rise to 300%-400%, or even 1000% yield. “Various international financial institutions suggest halving the top margin at the first stage, and market trends will dictate further steps. Another step implies the introduction of a top margin on not only the total effective rate, but also on manageable revenues. Financial institutions and commercial banks should be obligated to issue loans in compliance with socially responsible principles. This means that loans should be issued in an amount which will not burden our citizens. Borrowers

should not pay 70-80% of their incomes to serve loans. This is inadmissible,” Bakhtadze said. The latest regulations by the NBG and the finance minister's criticism of commercial banks were opposed by the finance sector. The NBG's new regulations will frustrate economic development, finance sector representatives said. “I want to respond to many of the opponentsof these regulations, who have tried to affix various stereotypes to this initiative, as if these regulations will hamper the development of the market. We have two scenarios and variants. Either our opponents lack economic education, or the group that objects to these new regulations will do anything to mislead our society. We are discussing the protection of the interests of our citizens and consumers. We focus on European practices and establishing new rules practiced in Europe and considered the best in the human rights protection field. I would like to urge our opponents not to waste their resources, because new regulations will be introduced anyway, and these regulations will be compatible with the best European practices,” Bakhtadze added. We expect this year to bring interesting economic reforms. If evn half the planned initiatives are implemented, essential economic changes will take place within the country. A small and medium business promotion program should be also prioritized. Along with this program, new regulations in the finance sector will establish fair rules for the market. Let us wish Georgia everysuccess fromMamukaBakhtade's efforts to curb appetites in the most influential business segment: commercial banks. Over the past 10 years,Bakhtadze has emerged as the only high-ranking official who does not avoid criticizing commercial banks. Merab Janiashvili

Wine Yard N1 - must-see place in Kakheti! If you want to know Georgian traditional family of Kakheti, you should deﬁnitely visit "Wine Yard N1". Winemaking, Culinary, Local Folklore, Family Farm, Flower Garden - all in one space. "Wine Yard N1" - is a touristic space, which is based on family conception. Everybody has own role here - the host will meet you at the door, will explain you how to make wine, will show you the three-generation wine-cellar, you can taste the wine from Qvevri (Georgian wine-jar) and participate in the process of making Vodka, baking Deda's bread and Khachapuri, you can also try on Georgian traditional clothes, prepare dishes and at last you'll be able to sit at the Sufra (Georgian table full of Georgian dishes) with family members, where your host will be Tamada (head of Georgian Sufra). All this happens 160 km. drive from Tbilisi, Kvareli region, in Akhalsopeli village. The village is surrounded by beautiful views of the Caucasus Mountains, rivers and historical monuments. The idea belongs to the family member - Tika Dugashvili, who decided to leave Tbilisi and live the village. The idea came to her when she was traveling abroad. Her house and vineyards are located in Kindzmarauli micro zone. All the goodness and unique microclimate of nature she received as a gift and the rest she made with her own hands, non-commercial. Relationships, holidays arrangement and hospitality is Tika's favorite job, she is a journalist and musician by profession. All the things in "Wine Yard N1" represents old age. The red brick and cobblestones which were used to build this house, are the beauty of this place. The yard is full of Georgian wine-jars (Qvevri), tiles and wooden barrels; Bread and Nazuki (Sweet Georgian cinnamon bread with raisins) are ready in the bakery; Family wine-cellar (Marani) is full of clay pottery, traditional wine extractor and Georgian wine-jars (Qvevri). Wooden woven baskets, straw hats and spices make the scent more pungent. On the shelves of the Marani you can see the homemade fruit jams and juices, which looks tasteful; Many things in here portrays Family traditions. On the shelf you can see the old sewing machine, the old cradle is here as well. With the seasons, fruit and vegetable oﬀers are changing as well.

Social tourism is very important here, for example the host and the guest can together make Tatara (Georgian grape pudding), Churchkhela (Georgian candle-shaped candy made from natural grape juice and different kinds of nuts). Every season of the year has its own charm, so here you can taste the real taste of Kakheti. "I repair with my own hands, I don't follow anyone and I believe in my vision", - says Tika, which doesn't see a competitor in this realm. She exactly knows what she wants and these wishes are different from others. People often tell her what kind of service other people use, what kind of products they use, but she doesn't care, she follows her intuition, which mostly doesns't betray her. She believes, that it doesn't matter what kind of Marani or house you have, because human and humanity is most important thing and she believes that this vision can be contagious. "I want to show the real life, how we pick fruits, how we bake bread, what kind of celebrations we have and how we celebrate them. My profession has helped me, once I was teaching folk songs. I made the ethnographical elements of Kakheti our special service", - adding that she is proud that she was jumping with the foreign guests during the bonfire night, baking traditional Georgian Easter cake with them, took part in master classes to make traditional dishes, watched traditional wrestling, showed them historical monuments... then she sat and told them about Georgia, Kakheti, what kind of impact was in different periods and what kind it is today. It's important for her and as she says, it's more important than the bottled wine... and she knows the price of the wine really well from Papa (grandfather in Kakheti), from father and now already from herself. She knows many stories about wine: you can see the brand label on Dugashvilebi's wine-jar, this quality is found in the Georgian pottery making. It was made with clay and it belonged only the masters of pottery making. The right to put the brand label was obtained only with labour and experience. In the Georgian wine-cellar (Marani) of the "Wine Yard" there are 6 Qvevri (Georgian wine-jar) of Zedashe, the guests are gladly explained the importance of Zedashe and what it means for Georgian culture... "If there is no Zedashe in Marani, we can't call it Marani", - you can read in Sulkhan-Saba's

dictionary. Zedashe is the holy place in the family, which was used for praying; In the Qvevri of Zedashe was made the wine, which was only for the church; Zedashe often was prepared also for the celebration, for example for Giorgoba, Mariamoba, Christmas… "I was living in northen Netherlands and met totally different environment in Amsterdam, entirely different agroculture, I visited ordinary people, I was interested in their life, how they lived, what kind of traditions they had. I realized that this is a real tourism - an opportunity to talk about how the local population lives", - says Tika. Only intuition is not still enough, so she was studying in Newkaz Tourism development center. She studied the requirements of the modern market and become a certified guide. She visited many countries and now she knows what people want in different countries. She uses these demands in her offerings, that's why she could put whole Kakheti into one yard and could attract the tourists and the guests as well. Now she has plans, the job needs to be developed, employment is also very important and she decided to involve the locals in this process. She also plans to arrange the horse stable and almost has prepared the project. Now she's trying to get the funding. She had already placed two rooms on Booking.com. She had decorated these rooms by herself and already received orders. Now she's looking forward to introduce Georgia to the new guests.

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Not My Choice Campaign against children Exploitation in the streets

Today, as Georgia moves forward on its path to joining the European community and continues striving towards progress, an equal start for all children and the creation of a fair and tolerant society become incremental issues for development. Unfortunately, for nearly children in Georgia, the day does not begin with a focus on education. Instead, those 2,000 children are struggling to survive on the streets of Tbilisi; standing at the crossroads, in subway stations, close to shops and trading centers, or next to churches, begging and trying to sell small items to earn the daily bread for their families. These children are subject to exploitation from early childhood and they are stigmatized by being called “street children”. Seen as dirty and dangerous, they are deprived of their childhood and carry the burden of an adult on their shoulders. World Vision has built up experience of supporting street children in Georgia since 2013. At present the organization runs three daycare/crisis intervention centers (two in Tbilisi and one in Kutaisi) to provide drop-in, educational and psycho-social rehabilitation services for children living and working in the streets. The services meet basic care and development needs of vulnerable children and oﬀer them alternatives to street life and gradually integrate them into mainstream society. Through this services over 600 children have been reached. World Vision helps them access quality education and attain functional levels of literacy, numeracy and essential life skills. World Vision lifeskill trainings supports developing the self-consciousness, interpersonal relations, critical thinking, social responsibility, communication and stress management skills. To break the cycle of violence, and to ensure a decent life for every child that is free of violence and focused on development, World Vision Georgia joined the World Vision global partnership campaign “It Takes A World to End Violence Against Children”

with a specific focus to combat child exploitation on the streets. “ The local campaign with the name « Not My Choice » envisages rising general public awareness that child already in the street is the result of multiple vulnerabilities and giving change when passed-by is not charity act the majority of us would perceive. Through different channels World Vision Georgia strives to better educate the general population on how we can support the positive change if efforts are united.” Said Eka Zhvania, World Vision Georgia Opperations Director With the Not My Choice campaign, that includes various activities World Vision invites all relevant stakeholders, government representatives, international organisations, NGOs, civil society, academia, the private sector, and children themselves, to join efforts in recognising the issue of child exploitation on the streets, to raise awareness and create space for children living and working on

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on the streets to become equal members of the society.

mistreated by their local communities.

Street art is one of the signiﬁcant parts of the campaign in terms of awareness raising and combating stigma. With emotional visuals and messages the campaign takes action to spread the voices of vulnerable young people to challenge negative stereotypes. Arts were made in streets of Tbilisi and Kutaisi. Main idea of the campaign is to change public attitude towards children living in the streets, so that they do not feel misunderstood and

to change the attitude to the relations with these children and act accordingly, as giving money to children in streets is not solution.

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Business News South Caucasus’ Opens its First Plant of Aircraft Composite Parts

Hotel Infrastructure to be Arranged near Tbilisi Airport

ATC is the ﬁrst high-technology plant in South Caucasus that will manufacture airplane composite parts.

Hotel Infrastructure will be arranged near Tbilisi Airport. In order to develop tourism infrastructure, the National Agency of State Property has presented 12 563 sq.m existing property by Tbilisi Airport for sale at electronic auction

12 Million GEL is Allocated for Zugdidi Botanical Garden Construction The overhaul of the Botanical Garden in Zugdidi, which cost 12 million GEL, will be completed in June of 2019. The project, implemented by the Municipal Development Fund and funded by World Bank, started this year.

Georgian CEO Listed Among Young Global Leaders by WEF World Economic Forum named CEO of Adjara Group, Valeri Chekheria among Young Global Leaders of 2018. Iago Bitarishvili Launched Production of Aneta Beer Aneta beer will be sold at the tourist facility near Iago wine cellar and will be exported in small volumes.

Ministry of Education to Introduce Finish Method of Teaching to Public Schools Ministry of Education plans to introduce the Finish method of teaching to public schools. Minister of Education Mikheil Chkhenkeli unveiled the plans at the presentation of an action plan on May 7.

The Second International Competition of Qvevri Wine was Held With the organization of Association “Georgian Wine” and support of the National Wine Agency, the Second International Competition of Qvevri Wine was held in Tbilisi.

Hotel Industry Development component – Host in Georgia The new Hotel Industry Development component of the state program ‘Produce in Georgia’ has already noted huge successes.

Romanian State Airline to Launch Operation in Georgia

Chinese Miniseries “The Mask” to begin ﬁlming in Georgia

Starting July 1, 2018, TAROM, the Romanian state airline, will perform Bucharest-Tbilisi-Bucharest ﬂights three times a week. The agreement was made during a meeting between representatives of the Romanian airline and the Georgian Airports Association.

In 2016, Enterprise Georgia introduced the Film in Georgia program, a joint initiative by the Ministry of Economy and Sustainable Development of Georgia and the Ministry of Culture and Monuments Protection of Georgia.

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London ranked top city for students

Ministry of Economy to Invite Elon Musk to Georgia Ministry of Economy of Georgia and TESLA company are conducting negotiations. Deputy Minister of Economy Giorgi Chikovani told Business Course TV program that the Ministry has invited Elon Musk to Georgia. The ﬁrst stage of negotiations will be held in late May.

Ukrainian Securities Commission Head Wants Cryptocurrencies Legalized kraine’s securities commission may begin speaking about cryptocurrencies at the next Financial Stability Council meeting in Kyiv in terms of their legalization. TimurKhromaev, chairman of the National Securities and Stock Market Commission (NSSMC), said about as much in a Facebook post. “Today, at the #IOSCO conference, we will speak about cryptocurrencies and ICOs, and several conclusions are already being drawn”. Azerbaijan Oﬀers Balkans New Energy Options Azerbaijan’s Energy Minister ParvizShahbazo has suggested that the Southern Gas Corridor – a pet project of the country’s president IlhamAliyev – has the prospect of expanding into central and eastern Europe, including the Balkans. Armenia’s Velvet Revolution Succeeds, Problems Remain Armenia’s Velvet Revolution, which began in April when the country’s parliament elected the former president SerzhSargsyan prime minister, ostensibly came to end on May 8 when the leader of the opposition movement, NikolPashinyan, replaced MrSargsyan as leader prime minister. MrPashinyan was supported by 59 of Armenia’s 109 MPsSome experts however believe that the bloodless revolution might be fertile ground for future political and economic improvements.

The top 30 rankings for student cities, produced by the QS higher education data analysts, has previously put Montreal and Paris in first place. The ratings are based on factors such as the number of top universities in a city, the local jobs market, the diversity of the culture and the quality of life. But London ranked poorly on one of the measures - affordability. London ranked top city for students The top 30 rankings for student cities, produced by the QS higher education data analysts, has previously put Montreal and Paris in first place. The ratings are based on factors such as the number of top universities in a city, the local jobs market, the diversity of the culture and the quality of life. But London ranked poorly on one of the measures - affordability. The cheapest and most expensive currencies in the world right now Based on the latest valuation snapshot, the Thai Baht is deemed to be the most expensive currency of all those tracked by Deutsche, edging out the Chinese yuan, Czech Republic koruna and South Korean won in April. At the other end of the spectrum, the Turkish lira, Mexican peso and Philippines piso were deemed to be the cheapest currencies last month. World Bank Warns of Low-Growth Traps A new report from the World Bank, Rethinking Lagging Regions, which examines convergence and disparity within the EU, has highlighted the danger of low-growth traps. According to the report, the EU’s poorest regions – almost all of which are in emerging Europe – have a GDP per capita that is seven times lower than in the richest areas. Persistent inequalities at the regional level undermines opportunities for residents, contributing to higher poverty and large-scale emigration, particularly of young people. UniCredit Signs New European Investment Fund Deal The Italian lender UniCredit has signed an agreement with the European Investment Fund (EIF) to boost innovative small and medium enterprises (SMEs) throughout the CEE region, via the InnovFin SME guarantee facility, which has now increased to half a billion euros.

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15 May 14, 2018 #237 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 Pixel Center, 34, Ilia Chavchavadze Ave. 3rd ﬂoor Tel: +995 32 227 62 00 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

Republic of Armenia Embassy 4 Tetelashvili St. Tbilisi Tel: 95-94-43, 95-17-23, 95-44-08 Kingdom of Spain Embassy Rustaveli Ave. 24, I floor, Tbilisi Tel: 230-54-64 E-mail: emb.tiflis@maec.esRomania Embassy 7 Kushitashvili St., Tbilisi Tel: 38-53-10; 25-00-98/97 E-mail: ambasada@caucasus.net Republic of Poland Embassy Oniashvili str. 24, Tbilisi Tel.: +995322 920398; Fax: +995322 920397 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 European Investment Bank Regional Representation for the South Caucasus Address: 1,G.Tabidze Street, Freedom Square Phone: +995 322 006284 Embassy of The Republic of Korea 12, Titsian Tabidze Str. Tbilisi 0179, Geogia Tel: (995 32) 297 03 18; 297 03 20;

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

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 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 RIVER SIDE HOTEL With incredible service and views Addr: Mari Brosse street turn, Old Tbilisi. Tel: +995 32 2242244; +995 32 2242288 Fax: +995 32 2 242277 Email: info@riverside.ge

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

Cinemas AKHMETELI Tbilisi. “Akhmeteli” Subway Station Tel: 58 66 69 AMIRANI Tbilisi. 36 Kostava St. Tel: 99 99 55,

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 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.

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

75 Agmashenebeli Ave. Tbilisi Tel: 577 18 27 87 Email: hostelmtevnebi@yahoo.com

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