Caucasus Business Week #242

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June 18, 2018 - www.cbw.ge

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Georgian Dream party names Mamuka Bakhtadze as new prime minister as Kvirikashvili resigns

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Kvirikashvili’s Effect Withstood only Two Years Economic Growth under Irakli Gharibashvili’s Government was 3.75%, Kvirikashvili Raised the Pace to 3.9%.

Prime Minister of Georgia Giorgi Kvirikashvili has filed a resignation referring to different visions between him and the ruling economic team about economic policy issues.

The Prime Minister’s resignation was preceded by noisy discussions on UNICEF report, under which in 20152017 poverty level rose in Georgia.

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Downturn on FDI – Yellow Card to Investors?

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Proper Commercial Offers will Enable Implementation of Georgian-Ukrainian Projects

According to preliminary indicators

by Geostat, national statistics service of Georgia, foreign direct investments (FDI) in the first quarter of 2018 made up 279.3 million USD, down 32.9% compared to the preliminary indicators of the first quarter of 2017.

Ukraine is a major trade, tourism and political partner of Georgia. Ukraine, as a European country with more than 44 million residents, has huge potential to be an advanced country, and this factor will have a major influence on the development of Georgia.

According to Geostat, the downturn emerged after several enterprises moved to ownership of Georgian residents and liabilities before nonresident direct investors (coverage of loan debts) declined.

Our countries maintain a strong partnership, and Ukraine has proved this many times. I would like to mention that Ukrainian people backed our fight in Abkhazia: about 300 residents of Ukraine fought in the 1993 war, and they were in the bloodiest sectors, under the command of Major Oleg Bobrovich.

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Georgia’s Prime Minister Resigns

Foreign Trade Turnover Rises by 24.5%

The Republic of Georgia’s Prime Minister Giorgi Kvirikashvili, resigned amid a disagreement with leader of the ruling Georgian Dream party. “We’ve had some disagreements with the leader of the ruling party,” Kvirikashvili said in a televised statement. “I think there is a moment now when the leader of the (ruling) party should be given an opportunity to staff a new cabinet.”

In January-May 2018 Georgia’s foreign trade turnover (excluding undeclared trade) made up 4 894.8 million USD, up 24.5% compared to the same period of 2017.

New Enterprise LTD Tiflis Textile Opened within Produce Georgia First Deputy Prime Minister, Minister of Economy and Sustainable Development Dimitri Kumsishvili officially opened the Tiflis Textile Ltd, supported by the Agency “Produce Georgia” on June 11th. Factory will produce socks.

Finland to Share Experience on Education Management with Georgia On 11-13 June, officials from the Ministry of Education and Science of Georgia visited Finland to learn about the country’s experience in education management.

ProCredit Bank Losing Positions

Georgian Railway and Deutsche Bahn Officially Become Partners Georgian Railway and Deutsche Bahn entered a new stage of cooperation. An agreement was signed by David Peradze, CEO of Georgian Railway and Alexander Doll, Member of the Board of Management for Freight Transport and Logistics at Deutsche Bahn, in Berlin which lays the foundation for future joint projects in the rail freight sector.

Driving Time from Tbilisi to Sarpi to Decline to 4-4.5 Hours Driving Time from Tbilisi to Sarpi will be reduced to 4-4.5ours, Road Department chairman Irakli Karseladze said. After completion of Rikoti Pass construction-reconstruction works the driving velocity will increase to 100% from 80%.

Georgia and Hong-Kong to Sign Free Trade Agreement

ProCredit Bank assets have shrunk by 100 million GEL. The German Bank’s portfolio has declined by 56 million GEL YTD. Deposits have decreased by 80 million GEL (current accounts, demand and term deposits).

Georgia and Hong Kong will sign free trade agreement in late June, as part of Belt and Road Summit.

Georgia has already signed free trade agreements with EU, China, EFTA, Turkey and CIS Countries. Negotiations are underway with India and Israel.

BOG to Accept Applications for Registration of Individual Entrepreneurs and LLCs

UNICEF: Children Still Remain the Most Vulnerable Group in Georgia’s Society

Bank of Georgia plans to introduce an entirely new service with the aim to promote small and medium business sectors.

To further simplify business startup process, Bank of Georgia service centers will accept applications for registration of individual entrepreneurs and LLCs. Several service centers will start accepting applications starting June 18, while all service centers of Bank of Georgia will join the process on July 1.

Welfare Monitoring Study is a biennial household survey covering all the government-controlled regions of Georgia. The results for the 2017 round examined the prevalence and distribution of consumption poverty, material deprivation, subjective poverty and social exclusion.

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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Kvirikashvili

Effect Withstood only Two Years

Economic Growth under Irakli Gharibashvili’s Government was 3.75%, Kvirikashvili Raised the Pace to 3.9%.

Prime Minister of Georgia Giorgi Kvirikashvili has filed a resignation referring to different visions between him and the ruling economic team about economic policy issues.

«I and the ruling team have different positions regarding certain directions, namely, regarding the government’s economic policy led by me. I would like to note that over the past months I and the chairman of the ruling party had different positions regarding a number of essential issues. I think today the time has come when the chairman of the Party should be able to staff the ruling team due to his own considerations», Giorgi Kvirikashvili said.

The Prime Minister’s resignation was preceded by noisy discussions on UNICEF report, under which in 20152017 poverty level rose in Georgia.

According to the 2017 indicators, 5% of the population is extremely poor, as well as 6.8% of children and 3.7% of pensioners. Ratio of extremely poor has increased (including children and pensioners) compared to both 2015 and 2013 years.

UNICEF conducts Welfare Monitoring Study every two years. The report appraises poverty and welfare levels of population on the ground of analysis of consumer costs. People who spend less than 1.25 USD a day are considered to be extremely poor (about 83 GEL a month for an adult).

In 2017, compared to 2015, general poverty level has also increased (the bottom margin of general poverty level is 2.5 USD a day, that is 165.5 GEL a month for an adult). Ratio of people in extreme poverty has risen to 21.7% from 18.4%. Extreme growth in poverty was recorded in the category of children, from 21.7% to 27.6%. Number of pensioners under general poverty level has also increased. Comparative poverty indicator (comparative poverty shows what part of the population consumes less than 60% of the median consumption that equals to 177 GEL for an adult a month) has also increased.

Number of children under comparative poverty level has extremely grown to 31.6% from 26.8%.

In his resignation speech Kvirikashvili comprehensively analyzed economic policy led by him and noted that the Government had deliberately taken several essential economic decisions that, seemingly, had brought high economic growth in short and midterm perspectives, but failed «to respectively bring benefits to low-income part of our population». We should make emphasis on the GEL exchange rate devaluation. Kvirikashvili noted that National Bank of Georgia (NBG) deliberately refused to use foreign currency reserves to curb the GEL exchange rate depreciation. As a result, the GEL devaluation hit 40% and Georgian citizens’ costs for serving credit obligations considerably increased.

«I would like to express my gratitude to Giorgi Kvirikashvili, the person who has implemented a lot of reforms in our country. Economic growth by

the time of his appointment was 2.8% and he left the government with 6.5% upturn. I believe the current positive tendencies are of irreversible character», the former Minister of Economy and Sustainable Development Dimitri Kumsishvili released this statement regarding Kvirikashvili’s resignation in his own Facebook profile.

Kumsishvili makes emphasis on the 6.5% economic upturn, which was recorded in April 2018, which is not relevant compared to the 2015-2016 annual indicators. However, if we take into account averaged economic growth pace, we will see that under Gharibashvili’s government (2014-2015), averaged growth of Georgian economy was 3.75%, while the figure rose to 3.9% under Kvirikashvili’s government in 2016-2017.

Despite slight improvement in GDP growth paces, in this period other economic processes have damaged solvency of our citizens. As a result, poverty level has increased.

It is noteworthy that Giorgi Kvirikashvili was appointed as a Prime Minister in December 2015. In several months after his appointment the business sector received encouraging signals and this effect was named as Kvirikashvili’s Effect. If we analyze key macroeconomic parameters of the 2015-2017 years, we will see that Kvirikashvili’s effect has turned out not very effective.

Economic Growth: 2015 - 2.9%; 2016 – 2.8%; 2017 – 5%; GDP per capital: 2015 - $8550.9; 2016 $9146.4; 2017 - $10204.4; Inflation: 2015 - 4.0%; 2016 – 2.1%; 2017 – 6%; GEL exchange rate: December of 2015 - 1$ = 2.4067 GEL; December of 2016 1$ = 2.6562 GEL; December of 2017 - 1$ = 2.6131 GEL; The 13th of June of 2018 - 1$ = 2.4623 GEL.

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Downturn on FDI – Yellow Card to Investors?

According to preliminary indicators by Geostat, national statistics service of Georgia, foreign direct investments (FDI) in the first quarter of 2018 made up 279.3 million USD, down 32.9% compared to the preliminary indicators of the first quarter of 2017.

According to Geostat, the downturn emerged after several enterprises moved to ownership of Georgian residents and liabilities before nonresident direct investors (coverage of loan debts) declined.

Besides downturn in transport sector, 32.9% contraction in FDI inflows is related to completion of gas pipeline project, she added.

“This fact clearly shows that BP is finishing the gas pipeline construction project and it was expected we would have downturn in this respect in 2018. Completion of this largescale project has shrunk an inflow of foreign investments into this sector”, Ekaterine Mikabadze said.

Unlike government structures, doctor of economics Soso Archvadze asserts that this declination signifies a yellow card for foreign investors.

«When foreign investments shrink, this may be a yellow warning for other investors.

They will show more restraint for making investments in Georgia», Archvadze said.

As to the indicator, over the past 16 quarters, that is 4 years, this indicator is the lowest one after the indicator of the second quarter of 2014.

Naturally, this gives ground for certain considerations and discussions, Archvadze noted.

«Key reason is that owners were replaced and the capital invested by foreign investors have moved to ownership of domestic residents», the doctor of economics noted.

Doctor of economics Rati Abuladze says that United Kingdom is leader in terms of investments (82.7 million USD), Azerbaijan comes second with 51 million USD and China is third with 41.6 million USD, Netherlands is fourth with 32.3 million USD and the USA is fifth with 23.8 million USD. Luxembourg has invested 18.6 million USD and Panama investments totaled 16.9 million USD. The finance sector is the most attractive sector in terms of investments with 110.6 million USD, development sector is second with 69.1 million USD and processing industry is third with 40.2 million USD.

At the same time, investors interest has declined in agriculture and communications sector, Abuladze said.

According to his information, regretfully, over the past 7 years FDI inflows to Georgia recorded the lowest figure in the first quarter of 2018.

«I agree with Geostat appraisal, which asserts that FDI inflows declined after several enterprises moved to ownership of Georgian residents and liabilities before nonresident direct investors shrank. However, I confirm that attracting foreign direct investments remains a serious challenge for the Authorities because of political and economic contrast in the country, Rati Abuladze said.

The doctor of economics notes that reduction in FDI inflows has direct relations to: •Economic policy of the country – Reduction in FDI inflows is a signal that confidence and interest of foreign investors has declined. It reflects inefficient approaches of the existing economic policy and inviability of economy (in distinct fields); •Attractiveness of economic sectors – executive bodies fail o ensure efficient investment promotion of economic sectors, to timely finish projects, and they delay reformation process. For example, all over the world, the communication sector, internet space and

market are profitable and attractive in terms of investments. In Georgia, where internetization process was not finished, the country loses considerable revenues; •Number of privatization facilities – reduction in number of facilities, which are attractive in terms of investments; •social and economic condition of population – middle class is small in the country.

Its major part receives low incomes or has debts. Investors see small market, low solvency and weak effect of economic programs; •geopolitical risks, political uncertainty; • scales of economic diplomacy; In whole, I note that the country has important potential.

To improve economic viability of the country, foreign and domestic investment activity should grow. However, this objective is hindered by staff policy and the system that stifles staff.

In Georgia the most successful policy is the policy of stifling public and academic active resources. This is a technology for maintaining and igniting the old power. This policy maintains in the country: •Floating and instable political and economic contrast; •deficit of staff, where the old political space determines the potential; •shaping and control gover-

nance and political opinion (similar situation has created “governance buffer”).

In general, the policy of stifling staff does not make positive influence on European and EuroAtlantic cooperation, employment of investment potential and attracting of foreign investors. This obsolete policy makes human resources flee abroad and this process lowers social and economic conditions of our society.

And finally, the country is capable of shaping new political environment, which, thanks to state programs and new political technologies, will ensure a growth in foreign investments, attract new investments and increase domestic investments.

Therefore, new political resource and charismatic energy will drive a growth in Georgian economy and enliven our society”, Rati Abuladze said.

Shota Buchukuri, head of Caucasus Economic Research Institute, states that in the first quarter of 2018 FDI inflows to Georgia made up 279.3 million USD and this is not favorable indicator compared to previous years. Despite explanations by Geostat that investments inflow declined after several major enterprises moved to ownership of residents and liabilities before nonresident direct investors shrank, fixed indicators draw attention anyway and they require more initiatives and work from the Government.

It is noteworthy that FDI

inflows recorded in the first quarter of 2018 are lower by 32% compared to the indicators of the same period of 2017 and are the lowest after 2011.

According to information by Buchukuri, since poverty and unemployment are one of the key challenges, reduction in investments cannot make positive influence on economic growth and resolution of the mentioned problems.

It is noteworthy that investments from Azerbaijan and Turkey, our leading economic partners, have been considerably declined, when Russian investments have doubled.

«As to sectors, the most evident declination was recorded in the sectors of transport and communications and real estate. Over the past 10 years the major ratio of investments was made in the sectors of transport and communications and this declination should be real signal. The problrem is that a major part of investments is registered in the capital city and consequently, main economic activity is recorded in Tbilisi, while in regions the situation has not improved.

In this situation, only those measures that the Authorities carry out in this direction are not sufficient and it is necessary that the Authorities direct more efforts for attracting international investors to ensure stability of the GEL exchange rate and high economic growth in the country», Buchukuri said.

Proper Commercial Offers will Enable Implementation of Georgian-Ukrainian Projects Interview with Nikoloz Gugeshashvili, head of Georgian Diaspora in Ukraine You chair Georgia Diaspora in Ukraine. How would you describe the role of Ukraine in relation to Georgia?

Ukraine is a major trade, tourism and political partner of Georgia. Ukraine, as a European country with more than 44 million residents, has huge potential to be an advanced country, and this factor will have a major influence on the development of Georgia. Our countries maintain a strong partnership, and Ukraine has proved this many times. I would like to mention that Ukrainian people backed our fight in Abkhazia: about 300 residents of Ukraine fought in the 1993 war, and they were in the bloodiest sectors, under the command of Major Oleg Bobrovich.

Additionally, Georgia and Ukraine face similar challenges. Both countries strive for membership into the civilized world, and we have made the same choice. Developments in Ukraine have a direct influence on the national interests of the Georgian state.

“We should not be confined with only business forums and both governments should develop a good strategic plan for enhancement and expansion of mutual beneficial commercial contacts”.

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How would you appraise tourism relations and what should Georgia do to attract Ukrainian tourists?

Ukrainian tourists arrive in Georgia in all seasons, a developing tendency. The Tourism Administration of Georgia is chaired by a good manager. I know Mr. Giorgi Chogovadze personally. He visited us several days ago and he was a partner of our event, so I would like to express gratitude for his efforts.

In 2017, the National Tourism Administration of Georgia took part in the Kiev International Tourism Exhibition, where more than 200 travel companies were represented from 28 countries. About 15,000 visitors attended the event.

The Georgian delegation showed tourism video clips at the event, which raised interest.

In summer 2017, by my initiative and by the invitation of Giorgi Chogovadze, we

hosted Deputy Minister of Ukraine Mikhail Titarchuk in Georgia. He supervises the tourism sector. Interesting meetings were held in Georgia, and I believe we will strengthen our relationships in the tourism-industry development sector.

Both countries have huge tourism potential. In this respect I have consulted a number of Ukrainian and Georgian tour operators, and I plan to make my contribution to tourism business development on behalf of both. It is important to further resolve transportation issues so Ukrainian tourists may travel to Georgia more cheaply and comfortably.

Please briefly describe the business and economic events between the two countries that have taken place in the past year.

I am happy that these two countries have a cooperative economic experience. Georgia hosts business forums and this is important, but a lot should be still done to fulfill the country’s potential.

How would you appraise bilateral economic relations between Ukraine and Georgia? What potential lies in business-economic relations between Georgia and Ukraine?

Economic relations between these two countries are full of potential, and these relations are part of a tradition. These relations are developed. Ukraine is rich in resources, and proper commercial offers will enable us to implement joint projects. This will grow the economic potential of both countries. It is noteworthy that both Georgia and Ukraine function as transit areas for Asian energy carriers and European technology.

We should not be confined within only business forums, and both governments should develop a good strategic plan for the expansion of mutual beneficial commercial contacts.

Our organization is ready to be one of the key bridges to achieve these objectives, and we are ready to make an essential contribution to the development of relations and contacts between Georgian and Ukraine entrepreneurs. We have interesting plans and we will talk about them later publicly.

Which Georgian products are popular in Ukraine, and will markets be expanded in the future?

Fortunately, many Georgian entrepreneurs operate on the Ukrainian market, and their products are popular. This was demonstrated at the major culture event organized by our organization on June 2 and 3. We have done our best to introduce as many Georgian companies as possible at this event so they could introduce their products to all visitors.

Tens of thousands of visitors visited the event, and we were happy to see queues for the Georgian product advertising and tasting stands. Proper marketing will make Georgian products popular all over Ukraine, and we have to perform a huge job to achieve this. Currently, Georgian products are very popular in Ukraine. Frequently, during personal meetings many Ukrainian businessmen and consumers express positive attitudes towards Georgian products. Our products are considered a “taste of childhood,” and this is an important factor for a successful business in such a big country.

I would like to note that Georgian restaurants are among Ukraine’s top ten restaurants. Naturally, Georgian wines and mineral waters are also market leaders.

We plan to hold bigger events in 2019, and we will invite Georgian companies that operate in Ukraine or plan to enter the Ukrainian market. I would like to express gratitude to Ombudsman Irakli Lekvinadze, who travelled to Kiev and attended our event.

In 2019 we will continue our close communication with him, and enable more Georgian companies, after consultations, to introduce their products to Ukrainian consumers.

I would like to stress that it would be wise to direct the efforts toward potential market expansion, because there is a large market for export products, as Ukrainian consumers are waiting to buy Georgian products.

Over the years I have developed relationships within Ukraine’s business sector, and I do my best to assist Georgian entrepreneurs by communicating with them. I am always ready to promote Georgian entrepreneurs in this country.

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Mariam Gogishvili: “Sincerity is an irreplaceable component of communication” Interview with Public Relations Manager Mariam Gogishvili Why did you decide to enter this field, and what kind of opportunities does this profession give you?

This field was interesting to me since my graduation from school and consideration of which profession to choose. Although I eventually studied in the faculty of journalism, this field increased my interest in working in public relations. That’s why I continued studying it as a master’s degree and started working in this profession, which was one of the best decisions of my life. The sphere is so varied and interesting that the possibilities of PR are inexhaustible for a growth-oriented person.

What is it necessary for holding successful communication with the public?

Whenever I have something to say to a group of people, the first question I ask myself is “who I’m talking to?” This is key for any communication. Communication is different with successful experts, community members, individuals in the field, journalists, etc. The only irreplaceable component of communication with everyone is sincerity.

What three tips would you offer someone just starting out in PR? Follow trends—always catch up on the latest news and current events affecting the field of communication.

Never stop learning—communication is like a living organism, as it is constantly growing and changing. By means of various trainings and workshops, it is necessary to continue learning, perhaps until the end of this field.

Make sure that you and your employer’s views coincide with each other, as this is

very important. If you feel that you are personal incompatible with the vision and goals of the company, it’s better to stop there, because every working day will bring you disappointment.

What do you wish you knew before starting your career in PR? Perhaps knowing that public relations and journalism, despite the widespread stereotypical view, are absolutely different. Thus, I would use my resources earlier to learn more about public relations issues.

Describe a typical work week.

It is busy with meetings, presentations and discussions. Together with daily tasks, I summarize the past week with my team to make the following one more productive.

How do you go about finding relevant contacts and sources?

I think you can get acquainted with many interesting people during trainings and workshops in communications or related fields. In addition to learning something useful at such workshops, we also get the opportunity to get to know people in our field.

How do you prioritize and start your work day?

I follow up on events inside and outside the country, then I get more specific about the industry I work in. Google Alerts sends me all the news that is relevant to my profession, so I spend a lot of time reading news and articles in the morning.

What are the skills a Public Relations Specialist needs?

First of all, the ability to provide effective and easy communication based on the situation. A PR manager should just love communicating in and out of the office.

Interesting writing skills are no less important, because even today, in a rich system of audio and visuals, this skill is very demanding. Creativity and global thinking are priorities that make any PR manager indispensable.

What trait do you value the most in your co-workers?

Teamwork ability. I believe that if a man can not work with the team, his qualifications are already secondary.

What is the best PR practice that technology can’t change?

In this area, it’s very important to have a direct relationships, which cannot be replaced with technology.

What are some growing trends in the public relations industry?

The digital world has greatly contributed to many new trends and innovations. It has not only changed the platforms and means of communication, but the communication form has become much simpler and more immediate. Words are being replaced by visuals and TV briefings by lives, which will get even more intense in the future. Similar to in other countries, the issue of the social corporate responsibilities of companies is more and more important in Georgia, creating a more interesting and challenging work environment for managers.

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Satellite Market Grows As SES Reaches 562000 TV Homes in Georgia SES Summarizes Georgian TV market Interview with Anna-Karin Modigh – Vice President, Marketing Communications, Nordic, Baltic and Eastern Europe at SES. Tell us about market research that you have done recently, what changes did you notice and what negative/positive trends has Georgian TV market shown?

Satellite still has a very strong position and is the leading form. We see that terrestrial reception has come down and IPTV has increased. We are happy that SES increased its total reach in Georgia.

SES satellite reach is experiencing solid growth worldwide, for instance in April, last year SES announced that the company has increased its Satellite reach in Georgia by 21%, what is the figure this year, why is that happening and what has contributed to this growth?

The figure remains flat for SES for DTH reception, but we see an increase on the IPTV side, so all together SES see an increase from last year SES plays a key role in the Georgian market as it reaches 480 000 TV homes, how did you manage to position yourself on this market, what is your business strategy in developing countries?

We were lucky to find MagtiCom at the right time when they were looking into starting a DTH platform. We had the opportunity to help them with an uplink and satellite capacity, as well as a training programme for the installers.

They managed to be the first DTH platform in Georgia and they still are the leading platform.

UHD Awareness is raising worldwide and global trend of UHD development is also seen in Georgia, what are your expectations for the development of the video market?

The HD and UHD TV screens in the homes have

increased, representing 63% of the TV homes.

This is of course driving the development towards better picture quality and more channels will appear, driving the market further.

What are SES’s plans for the coming years in Georgia?

We will continue the development together with MagtiCom and make sure we have a strong presence on the market.

What technology innovation do you think could make the most difference to your business going forward?

Ultra HD and then we will see the introduction of 8k.

We also see a big growth on the aeronautical side with inflight wi-fi systems as well as for the shipping industry where we deliver solutions receive and send

data as well as internet connections on cruising ships etc. Also the satellites are getting “smarter” so we will see other services being launched where you will be able to control the satellites even more from the ground.

What impact do you think Artificial Intelligence and other tech innovations can and will have on the satellite industry?

We are convinced that the satellite industry and SES will follow all technical development closely and make sure that new technologies are applicable with the satellites. It is difficult to predict exactly how this will work but since we have technicians following the development around the world closely, satellite will play a main role for many years still.

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Business News

Le Méridien Opens Hotel in Batumi in 2019

Tbilisi City Hall Introduces Tourism Development Department

Various commercial spaces are sold in Batumi Tower. Redco company representatives told BM.Ge that top-class residential apartments will be also included in the complex.

Tbilisi City Hall has shaped Tourism Development Department, which will be chaired by Eka Burdiladze. For many years Eka Burdiladze was head of department for relations with domestic and international organizations, under the municpal economic development service.

Official Representative Office of Winery Khareba Opened in Shanghai

Startup of Dog Clothing Launches in Georgia

Starbucks Regional Operator to Enter Georgia Company Shaya Turkey that manages ”Starbucks” operation in Turkey and Azerbaijan is looking for the manager of Georgian representative.

On June 8th, the official representative office of “Winery Khareba” has been opened in Shanghai, China. New office opening ceremony was attended by local partners and partners from different countries. Event was also attended by Deputy Chairman of National Wine Agency of Georgia, Mr. Andro Aslanishvili.

Druchi New Georgian startup of dog clothing has launched production.

All apparel is available in various sizes to ensure that your pet snuggles right into his or her outfit for any occasion. As 2018 World Cup is near, company offers customers customized football shirts of any participant teams.

National Wine Agency Disapproves 93 Wines for Exports National Wine Agency has disapproved 93 wine varieties of 2 439 ones for exports. The mentioned varieties failed to meet various standards in the tasting process and therefore, they were banned to enter exports markets, the agency officials told BM.GE.

Seven New Hospitality Projects in New Gudauri Business Ombudsman’s Office and German Economic Community Signed Memorandum of Cooperation Georgian Business Ombudsman Irakli Lekvinadze and Sascha Ternes, Chairman of the Managing Board of the German Economic Association signed a Memorandum of Cooperation.

EFTA and Georgia Held Trade Promotion Seminar The EFTA Secretariat, in cooperation with the Georgian-Swiss Business Association (GSBA), the Embassy of Switzerland in Georgia and the Ministry of Economy and Sustainable Development of Georgia, held an “EFTA-Georgia: Trade Promotion Seminar”, on 7 June 2018, at Rooms Hotel Tbilisi.

Many people already know that a new, modern skiing village is being built in Gudauri, 120 km away from Tbilisi, at an altitude of 2196 m above sea level.

Georgia to Hold Its First Domestic Selection Tournament for Participation in World Catering Championship – Bocuse d’Or Several months ago we learned from GastroNaut advisory company that Georgian cuisine could participate in the world’s major catering championship Bocuse d’Or and employment of this opportunity depended on representatives of the championship and job performed by the GastronAut team and financial support from Georgian companies.

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Contemporary Mythology of Tusheti – Tushetian Tales by David Simonia ”After a 2-week magical journey in Tusheti, I decided to show myself to others what I could not get with photos. After capturing the stories of patrons, demons, gods, and simply fantastic creatures, I had to draw my own pictures in my own photos and I got contemporary mythology of modern Tusheti,”says Dato Simonia to Marketer. ”It is planned that this concept should not only be a visualized mixed technique, but become a mythological circuit within which the people will see the specific locations that are highly subjective

but fantastic angle. I hope that I will make an open-air exhibition in every village and return all the creatures to their homes.”

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World News

13 June 18, 2018 #242 G7 summit: War of words erupts between US and key allies A war of words has erupted between the US and its G7 allies, hours after the group had put on an apparent show of unity at the end of a tense summit. US President Donald Trump has continued his personal attacks against Canadian Prime Minister Justin Trudeau, tweeting that he “acts hurt when called out”.

Germany’s Angela Merkel said Mr Trump’s decision to reject a joint communique was “sobering” and “depressing”.

New bonds to boost loans for Turkey’s women entrepreneurs

IMF chief: Clouds over global economy are ‘getting darker by the day’

The new bond has a six-year term maturity and is issued in line with IFC’s social bonds criteria. All the financing raised through the issuance is earmarked for on-lending to Garanti Bank’s women-owned small businesses. The issue is expected to triple the number of loans to these clients over the next five years.

Escalating trade tensions are posing an increasing threat to the global economy, the head of the International Monetary Fund has warned. “The clouds on the horizon ... are getting darker by the day,” IMF Managing Director Christine Lagarde said at a news conference in Berlin on Monday.

Armenian government to create special office to deal with investors The new Armenian government will effect a string of reforms to turn the interest of investors into the economy of the country into an investment boom, Prime Minister Nikol Pashinyan stated during a live broadcast in Facebook on June 12.

Trump and Kim meet after months of threats and insults

A Crypto Mining Company Lists Shares on the London Stock Market

Donald Trump and Kim Jong-un have sat down for unprecedented talks between the leaders of two long-hostile nations, as the world watches anxiously for signs of a peace deal and an agreement on the denuclearisation of the Korean Peninsula.

A new company that lets people mine cryptocurrencies through a subscription service has announced plans to list on the London Stock Exchange, a first for the exchange.

Russia and Saudi Arabia Pursue OPEC Deal at World Cup Summit Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman will discuss how to boost oil production while maintaining their petro-alliance when they meet in Moscow on Thursday to watch the soccer World Cup’s opening match between the two countries.

Turkey Opens TANAP Pipeline That brings Azeri Gas to Europe

Kazakhstan’s port to build universal transshipment terminal

Turkey and Azerbaijan have inaugurated the TANAP pipeline that will bring gas to Europe while bypassing Russia.

The project has won political support from both the United States and European Union.

The operators of Kazakhstan’s Kuryk port will build a universal transshipment terminal, in order to increase the volume of cargo transportation through the port, the director of DARYN Partners Nurzhan Marabaev told Trend.

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15 June June18, 11,2018 2018#242 #241 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: 29167-40/41/42 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 consulate.batumi@mfa.gov.tr Republic of Azerbaijan Embassy Kipshidze II-bl . N1., Tbilisi Tel: 225-26-39, 225-35-26/27/28 E-mail: tbilisi@mission.mfa.gov.az Address: Dumbadze str. 14, Batumi Tel: 222-7-67-00; Fax: 222-7-34-43 Republic of Armenia Embassy 4 Tetelashvili St. Tbilisi Tel: 95-94-43, 95-17-23, 95-44-08 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, 291-2689/59 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; Fax: (995 32) 242 74 40; Email: georgia@mofa.go.kr 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 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 Website: www.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 Tel: (+995 32) 230 30 30 Cinemas AKHMETELI Tbilisi. “Akhmeteli” Subway Station Tel: 58 66 69 AMIRANI Tbilisi. 36 Kostava St. Tel: 99 99 55, RUSTAVELI Tbilisi. 5 Rustaveli Ave. Tel: 92 03 57, 92 02 85, SAKARTVELO Tbilisi. 2/9 Guramishvili Ave. Tel: 8 322308080, 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. 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

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