Caucasus Business Week #248

caucasus

DISTRIBUTED FREE OF CHARGE

BUSINESS

July 30, 2018 - www.cbw.ge

#248

WEEK

p.6

Agricultural Land Reform as a Hindering Factor of Business

p.10

Saving the Soul-Deeper Insight to First Georgian Animated Comics

p.4

Net Profits of Commercial Banks Shrink

Business Ombudsman’s First Six Months in Office What are the challenges of business sector?

2 July 30, 2018 #248

Tbilisi Mayor: Yellow Buses will Be Entirely Replaced In 2018-2019 all yellow buses will be replaced by new, modern European-standard buses, Tbilisi Mayor Kakha Kaladze noted at the presentation of Tbilisi Transport Policy.

State Budget Collects 397406.2 thousand GEL from Profits Tax in January-June In January-June 2018 the Georgian state budget collected 5 646 659.2 thousand GEL, including state budget revenues constituted 5 019 831.5 thousand GEL, incomes from reduction in non-financial assets totaled 63 530.1 thousand GEL.

Adjara Finance and Economy Ministry Spends 163 522 EUR Inefficiently “The EBRD loan for solid wastes management project implementation was not fully employed in 2017”, the auditor’s conclusion reads regarding the financial report of Adjara Finance and Economy Ministry.

Ministry of Economy and Sustainable Development Became Full Member of EBAN The Innovations and Technologies Agency of the Ministry of Economy and Sustainable Development became a full member of the European Business Angels Network (EBAN).

SOCAR: We have bought 40 million GEL Gas Pipelines in Georgia State-owned gas pipelines have been handed over to SOCAR Georgia Gas by a direct sales. Under the Government decision, SOCAR Georgia Gas must pay 21.3 million GEL for the gas pipelines, including 8.5 million GEL must be paid within 36 months and the remaining part must be paid in 48 months.

Francois Painchaud: IMF Publishes Its Works Following Government’s Approval “The Monetary Fund publishes its works in case of receiving consent from the government,” Francois Painchaud, a representative of the International Monetary Fund told Bm.ge.

Prime Minister Announces Green Economy Strategy

$2.2 Million Worth of Shoes, Bags and Accessories Exported from Georgia in 2017 Research of local shoe, bags and accessories underlined investment potential by the Agency “Produce Georgia”.

TBC Expands on Azerbaijan Market Buying Local Bank’s Share JSC TBC Bank, a subsidiary of TBC Bank, has signed a contract with Nikoil Bank, aiming to expand its bank business in Azerbaijan.

Prime Minister Mamuka Bakhtadze announced a new green economy strategy, which presentation will be held in a few days.

Children on the Streets of Georgia Lack Access to Education, Health, and Protection Services, UNICEF study says Poverty, family dysfunctionality, violence in families, and parents’ migration were all major factors contributing to children ending up on the streets according to a new study presented by UNICEF today regarding children living and working on the streets of Georgia.

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;

3 July 30, 2018 #248

4 July 30, 2018 #248

Net Profits of

Commercial Banks Shrink

Banking Sector's Profits Halved in June According to National Bank of Georgia (NBG), net profits of commercial banks made up 47 993 000 GEL in June 2018. According to NBG indicators, the banking sector's net profits halved year on year. According to the 2017 June indicators, the banking sector's profits made up 95 882 000 GEL. The NBG statistics shows that the banking sector's net profits started declining in March 2018. According to NBG indicators, in March the setor's net profits was 59 959 000 GEL. In April this figure rose by 9 million GEL, but in June the profits indicator declined again.

In the first half of 2018 net profits of Georgia-based commercial banks constituted 410 million GEL, down 37.5 million GEL (-8.4%) compared to the first half of 2017. In June the sector's profits declined by 50% (-48 million GEL) and totaled 48 million GEL. Giorgi Kepuladze, director of Society and Banks nongovernmental organization, says that new regulations could halve the sector's profits in June 2018.

“The profits indicator changes, it rises or falls.

As to new regulations, commercial banks will feel their impact in several months and at the end of 2018, when regulations introduced in May will be fully reflected on profits and turnover, however, the June profits may be related to new regulations”, Kepuladze noted.

It is not ruled out that commercial banks fire a part of personnel because of the new regulations, change business model and alter priorities, he said.

Doctor of Economics Irakli Makalatia says that the sector's net profits declined because other expenditures rose by 40 million GEL. «The National Bank's statistics shows that the sector's profits was growing before tax payment, but commercial banks faced a huge growth in unforeseen expenditures and under this calculation, the sector's net profits declined», Makalatia noted.

«Why have the sector's unforeseen expenditures grown? The commercial banks should explain what expenditures they have taken and what reasons have grown them. In this case we will definitely learn reasons for the sector's net profits declination», Makalatia said.

Makalatia rules out that the new regulations could cut the sector's profits. Retails loans declined by only 1 million GEL, he said.

“Effect of the regulations that the govern-

ment has set on the bank sector because of excessive debts is not touchable yet. Net profits declined in 2015-2016 too. The banking profits trend is floating and it is difficult to assert whether it goes up or down. The main thing is that the net profits reduction not become tendency in the coming months.

Otherwise the banking sector will be genuinely damaged”, Makalatia said.

Gogita Tsutskiridze, vice president of Georgian Banks Association, says that there is nothing alarming in reduction of the banking sector's profits. The sector's profits declination has nothing common with NBG regulations, under which physical bodies' access to loans were restricted.

“The new regulations were introduced a month ago. At the same time, the sector's crediting indicators have increased by 18% and this is not a low indicator. On the contrary, this is more-than-average indicator.

Therefore, it cannot be ascribed to new regulations that sets stricter conditions on growth in loans”, Gogita Tsutskiridze said.

It is worth noting that reduction in the banking sector's profits is a strange fact for Georgian economy over the past 10 years.

As a rule, the sector's profits used to grow irreversibly on annual basis. This year the profits growth pace declined and this was to happen one day, as the sector's profits could not grow for ever, endlessly.

As reported, in 2001-2013, the 13-year consolidated net profits of commercial banks made up 1.119 billion GEL, while in 2014-2017 total net profits of commercial banks made up 2.561 billion GEL. This signifies over the past 4 years the sector's profits exceeded the 13year indicators twice.

It is interesting that if we compare the 20132017 economic growth paces to the banking sector's profits growth (proportionally, compared to the previous year), the banks' annual profits growth pace exceeded the economic growth by at least 6 times.

Profitability of the banking sector is determined by two indicators: Return on Assets (ROA) and Return on Equity (ROE). Georgia-based commercial banks are leaders in both components compared to other countries of the world. For many years the Georgian banking sector is recorded among the world's top 20 banking sectors, while Georgian banking sector is leader among European countries.

By Merab Janiashvili

5 July 30, 2018 #248

6 July 30, 2018 #248

Agricultural Land Reform as a Hindering Factor of Business

As it is known, after the presidential election of 2018, the Constitution of Georgia will be amended to amend new regulations regarding agricultural land ownership.

Irakli Gaprindashvili, managing partner of GLCC Law Firm, responds to our questions regarding these amendments.

Mr. Irakli, what fundamental changes do the part of constitutional amendments dealing with the ownership of agricultural land take into account and at what stage of discussion is set of draft amendments now?

According to constitutional amendments, agricultural landowner may be only a state, a citizen of Georgia and an alliance of Georgian citizens. According to the same amendments, the issues related to land ownership should be regulated by the Organic Law, in which different versions were discussed in various formats of recent times, but until now, just three months before the inure constitution's new edition, It has not come before the parliamentary discussions.

What is the existing reality before the changes of law comes into force?

In today’s times the moratorium on the ownership of agricultural land is applied, according to which the norm of the law is suspended, which considers the right of a foreign citizen or a legal entity to own agricultural land. As you know, the Constitutional Court of Georgia has twice repealed the rule of law that restricted the right on land by a foreign citizen or legal person, as an unconstitutional record, however, with the amendments to the Constitution, this restriction was set at a higher legal level, while before the entry into force of this constitutional restriction, the moratorium was set at the level of law, and the act of the law was suspended, which granted the right to property to all persons. At present, thousands of applications have been suspended in the public registry by irrelevant reasons, those who have purchased agricultural lands before entering into force of constitutional restriction, are not able to register of property rights.

What is the solution for such individuals?

Actually a solution is in enactment, which should regulate the existing legal relations before the entry into force of the Constitution, as well as the future relations on land.

Why is not an enactment available?

Several projects of the law became accessible to the public, but none of them were perfect enough to attend parliamentary discussions. The discussion on the last version of the draft law was held in April 2018 at the Parliamentary agrarian issues committee, where all interested parties participated. However, despite the fact that more time has been taken to refine the changes in the draft law and commence discussions, according to my information, this process has not yet been

fulfilled. The same problem relates to the other problem that is related to paralyzing the process of change of land status. As of today, many statements have been filed in the Land Review Issues Commission at the Ministry of Justice, which is responsible for reviewing the status of the land status and to provide the appropriate recommendation to the Chairman of the Public Registry Agency to make a relevant decision. I would like to tell you that the commission does not actually work and the only thing that they do today, is stopping the announcement and request additional documentation for unjustified reasons, which actually only delay the time and delays the decision-making process. This is part of the problem that is related to land reform.

What effect does it have on the economy? How will this problem be reflected in the activities of business subjects?

It will have a negative impact on both, domestic and foreign investments will, because foreign investors do not have access to business investment projects that are being implemented on agriculture land and are not allowed to change the status of the land and regulate the land as non-agricultural land which they need to build a hotel, for example. Our Law Firm is asked by foreign investors who don’t even understand why they are interfering with various large and small investment projects and are looking for a way out of this deadlock.

You as a lawyer, what comments do you have about a new enrolled bill?

First of all, it should be noted that the proposed draft law is much more acceptable and reclusive than the initiated and subsequently draft bill passed from the Parliament. As for the initiated draft law, we have several remarks, in particular: 1. As it is known, the draft law, in accordance with the new edition of the Constitution of Georgia, imposes restrictions on the ownership of agricultural land by foreigners and their established enterprises and makes a number of exceptions, primarily for persons with permanent residence or investment residence. It is expedient to let the ownership of agricultural land by the persons who have lost Georgian citizenship at different times and conditions, but they have significant connections with Georgia (relatives, business activities, etc.) and possibly Georgian citizens in the future.

2. The most important part of the draft law is related to the principle of property rights.

According to the draft law, agricultural owner may be a citizen of Georgia or a legal entity of private law registered in Georgia, if it’s dominant shareholder is a beneficial owner, while the beneficiary owner is the state, self-governance, a citizen of Georgia who is a direct or indirect form of a legal entity registered in Georgia. Foreigner, foreign legal entity or a legal entity registered in Georgia whose dominant shareholder is foreigner can be agricultural landowners according only to the restrictions defined by this Law.

Foreigner may be an agricultural landowner if he has been inherited it or has legalized such land and is covered by the restrictions defined by law.

In particular, foreigner who has no permanent residence or investment residence permits is obliged to sell agricultural land within 1 year from the origin of property rights. (Except for the residential category of land). The draft law does not directly specify that restrictions do not apply to homestead land plots, but a number of records are meant to be and it would be better and clear to be reflected in the project. The above restrictions do not apply to international financial institutions, commercial banks, microfinance organizations and insurance organizations, whose dominant shareholder is foreigner and if the right to ownership of land in agricultural land is arising from the activity of the international financial institution, banking activities, microfinance activities and insurance activities defined by the Georgian legislation.

3. The draft law also establishes the exceptions to which a legal entity registered in Georgia created with the participation of a foreign dominant shareholder can become an agricultural landowner. In particular, the decision of the Government of Georgia should be on the issue. A person may apply to the relevant Ministry with the investment project, which in agreement with the relevant self-government body, submits to the Government for approval. The problem here is that the law does not define any criteria (such as minimum investment amount, priority directions, minimum investment area or other) that might be a prerequisite for the positive decision of the government. It also states that, if the applicant fails to perform any of the investment conditions which have become a prerequisite for the Government's decision, he / she must sell the agricultural land within 1 year, otherwise the land will fall under the ownership of the state in exchange for the appropriate compensation. The special exceptions for persons with the right to residence are also regulated here, namely, foreigner who has a permanent residence or investment residence permit is obliged to sell agricultural land within 2 years if he or third party don’t use this land.

This obligation does not apply to the homestead land plots belonging to such person. If a person disagrees with the terms of the transition to the state property of the agricultural land plot (price), the transition to the state property of the land plot shall be carried out in accordance with the rule of

deprivation of property for the necessary public needs.

4. We see a significant problem in the limits set by the draft law, in particular it is prohibited to mortgage agricultural land or other use it to secure any liabilities as in favor of a foreigner, foreign legal entity or company established by a foreigner or alien dominant partnership. Furthermore, it is prohibited to impose shares of a legal entity which owns an agricultural land. It also prohibits the sale / public offering of shares / shares by such a legal entity resulting in more than 50% share / shares of foreign / foreign enterprises.

These limitations will complicate the attracting of cash for farmers and farmers employed in agriculture and it will be impossible to use the land as an instrument and participant in civil circulation. This restriction is not justified because the land mortgage or other liability is not meant to change its owner, it is only loaded with it’s obligation, and in case of non-fulfillment of the obligation, it is not clear who will be the land owner. It is even more unclear using this limitation as a means of securing shares.

Thus, we can conclude that delaying the entry into force of the new law on agricultural land ownership significantly hinders the development of the business sector, particularly in terms of attracting foreign investments.

By Diana Inanashvili

7 July 30, 2018 #248

Business Ombudsman’s First Six Months in Office

What are the challenges of business sector?

Irakli Lekvinadze: “Georgia has positive business environment compared to the countries in our region and international rating companies also recognize this”.

Business Ombudsman of Georgia Irakli Lekvinadze has introduced a new web-portal to the private sector representatives. The portal (www.portal. businessombudsman.ge) will assist businessmen in resolving issues for attracting new investments and creating new job places. Starting today, thanks to the new web-portal, businessmen will be able to contact the Business Ombudsman via email, including, on such issues as entrepreneurial activities, protection of business sector rights and so on.

The web-portal was created with the support of an advisory project of International Finance Corporation (IFC), a World Bank Group member.

This project is financed by SECO, State Secretariat of Economic Affairs of Switzerland.

Irakli Lekvinadze was appointed as Business Ombudsman of Georgia six months ago. This was an overloaded six-month period, because business sector intensified contacts with the Business Ombudsman's office, Lekvinadze said.

What are real problems before the business sector? How does he appraise the six-month period and how protected is the business sector in Georgia? Business Ombudsman of Georgia Irakli Lekvinadze talks about these and other interesting issues for the Versia newspaper.

In this period, not only business sector activated communication with us, but also all state instances are open and this factor enables to ensure valuable mediation. In January-June we held more than 600 meetings with business sector representatives in relation to individual cases and system aspects.

We also conducted about 20 meetings with various business associations, including 8 meetings were held in regions. In this period, we have provided

about 80 reactions in the form of conclusions, mediations or recommendations and I would like to note that about 70% of our actions were satisfied pertly or fully. This is our achievement and all state offices are open to listen to business sector problems.

In reality, Tbilisi-based business companies are the most active bodies, because the most part of business activities are recorded in Tbilisi. Adjara Region is second in this respect. The most active and frequent response is provided by Ministry of Finance and LEPL Revenue Services. We actively cooperate with these structures. We have flexible relations and the main thing is that we have our own representative in the Board of Disputes of Ministry of Finance. Consequentially, we are able to show our position in the process of discussing disputes and protect business sector interests through immediate involvement in the disputes discussion process.

Along with Ministry of Finance and Revenue Service, Ministry of Economy and State Agency for Property Management are the most active instance in communication with us. There are a lot of issues, especially, from regions, that are related to investment activities and property issues, leasing and sales-purchase operations. Therefore, we receive a lot of applications. Local municipalities create the next chain, where we mainly discuss issues related to licensing issues and supervision aspects. As to business, companies from commerce and service sector are most active companies. If we compare major, medium and small business sectors, about 80% of applications are submitted by small and medium business sector. However, major business sector emerges also active in relation to system issues and regulations.

What sort of problems have emerged in this sixmonth period?

In this period, we have identified several challenges.

In whole, business environment in Georgia, in its regions, are positive and dynamic. Even the business

sector recognizes this, as well as international rating companies. At the same time, there are a lot of issues, including technical and system issues, that require our engagement. As a result of our supervision, we make accents on several challenges and, first of all, this is the court system, as we think the business sector faces certain problems in this direction. The problems are related to trial deadlines and specialization. Therefore, we back activation of private arbitration and the bill on commerce chambers, because we believe that this approach will make the court system more specialized.

The second problem is related to the existing bureaucracy, especially in the middle chain, because everybody is open in top management and communication is not difficult. However, a number of decisions should be taken by the middle chain, but this process is hampered. In most cases, there are no answers, or they provide ambiguous answers or answers just delay. Consequently, we believe that efficiency should increase in this direction.

The third problem – accessibility to finances and qualification of workforce. In this respect, the problem is revealed in its sharpest form in regions.

The business sector representatives say that they have problems, for example, in terms of floating capital guarantees, while in certain operations, they need access to similar capital, because the banking resources are expensive for them. On the other hand, they face difficulties in finding workforce and this factor has certain reasons.

The four problem – difficulties with implementation of investment projects in regions. Frequently, investors with valuable projects that satisfy legal norms face certain difficulties, predominantly from the side of interested groups. Because some of them serve political orders, another part follows other goals and they hamper implementation of similar projects. Therefore, in this case, we believe that local governments should activate communication. Other instances should be also involved in similar cases so as investors feel maximum protection and comfort.

The fifth problem – frequent revision of regulations.

We believe that business sector should have more time to get to know regulations and get adapted to them. Naturally, we work with all instance, to resolve these issues and tackle problems.

A lack of job places is Georgia's major challenge and Government of Georgia and recently appointed Prime Minister also prove this. Based on the above-mentioned five problems that you have identified in this six-month period, why cannot business sector to create new job places?

In Georgia we have mainly structural unemployment and this signifies that we have more workforce compared to job places. On the one hand, there is demand for qualified workforce, on the other hand, the existing excessive workforce is unqualified and cannot satisfy the labor market requirements and this factor makes anomalous situation. Naturally, job places are Cretan by business sector. Therefore, the more comfortable and liberal environment for business sector is in the country, including in terms of regulations, the business sector will more succeed and create more job places. Moreover, vocational education support is the Government's answer to this problem.

According to my information, the due bill is being prepared, because today we have absolutely new requirements on the labor market, including in tourism industry, IT industry, agriculture and so on.

Our workforce, especially in regions, is hopeless and morally outdated, because their skills are amortized. Therefore, current qualification of the existing workforce should be adapted to the current labor market requirements thanks to vocational education. On the one hand, very comfortable business environment, which creates job places, and, on the other hand, government's efforts for vocational educational support will reduce the imbalance in this respect. Consequently, this problem was properly identified by the Prime Minister and I believe that the new Government will eradicate this imbalance based on the mentioned two approaches.

After 2012, the Finance Ministry Board of Disputes has changed radically, because in most cases, disputes are resolved ob behalf of business sector, even more so, the Business Ombudsman has its representative in this board…

The statistics has radically changed, because before 2012, the number

of disputes resolved on behalf of business sector ranged from 1% to 5%. today, this indicator has increased to 60%. This signifies that the Ministry of Finance is not an instance oriented only on punishment and it does it best to become an instance providing due services. As noted above, we keep excellent communication with Ministry of Finance and Revenue Services. Therefore, if there are arguments on behalf of business sector, they always try to take into account these arguments.

Frequently, fines are imposed on business, various taxes are charged, but if similar actions are illegal and similar statement are mainly submitted to us, representatives of Ministry of Finance and Revenue Service do their best to take into account similar facts.

How can businessmen apply to you via the new web-portal, which was created to assist the business sector?

Registration on this portal is simple. This portal makes two good things – it enables to do all cases in electronic format and all registered businesses are enabled to supervise the process from their own offices (studies) and receive information about which stage of discussion is and what is the status of this or that case. Simple registration and an identification code are required to to get onto the portal. On the other hand, this is a good opportunity to assess the performance of the Business Ombudsman. Based on our medication, conclusions and recommendations, the portal analyses the existing issues how much investments has the business saved and how many job places were maintained. We periodically publish similar analytics. We have good communication will all business associations and business companies, but we believe that the new web-portal will further improve our communication.

Over the past period, various politicians and economic experts stress the country lacks for foreign direct investments, What is the reason?

In the first quarter of 2018, compared to the same period of 2017, FDI inflows have declined, But this is not tendency and we expect to have the real picture at the end of 2018, if we will provide adequate reaction to the mentioned challenges and problems. We will have higher indicators in the part of investments.

What are your plans?

As to future plans, we have determined several priority steps. First of all, we want to enhance our role in the direction of the court system from the position of the Court Friend. Today we can act as the Court Friend only in the context of constitutional court and we have used this mechanism this year for the first time. But we want to make amendments to the law to expand this function to common court system too. This will enable to further strengthen business sector positions.

Secondly, we want to develop a permanent platform, where all business associations will be represented, especially among countries, bilateral business associations. We will serve two goals in this direction – we want that investors invited by them have maximum information and have no communication problems with various instances and to discuss the already collected problems in open regime and deliver them to the due instances.

Moreover, we plan to activate efforts with donors to have wider access to resources and implement business research works time to time. We plan to submit these research works to the Authorities to more evidently outline where and what problems exist. We want to set friendly relations with our colleague-institutions, mainly, in Georgia's partner countries. On the one hand, this will enable to share their experience and knowledge, On the other hand we will protect the Georgian business sector's interests on the markets, where they are widely represented. The first similar step will be taken in relation to the Business Ombudsman's Office of Ukraine by the end of 2018. This is a very strong institute and it is financed by EBRD. This office participates in resolving many problems in Ukraine and the Ukrainian market is very interesting for Georgian business too. This component will further enhance our role and functions.

By Maia Misheladze

8 July 30, 2018 #248

Tamar Sadradze: "It Has Always Been the Field, Where I Could See Better Version of Myself".

Interview with Head of the Public Relations Department of Radio Holding "FORTUNA", Manager of Culture Division, Manager of "Music Box" TV programmes.

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

I was very sociable from childhood and I had a lot of friends and most importantly I never had trouble with communicating with people. To tell the truth, it is absolutely suitable profession with its pros and cons. Verbal communication is crucial, word can determine our destiny, it has a great power in personal relationships, as well as career.

I always try to look at bright side, probably this profession showed me what I needed the most and made me the best version of myself. Every day spent at radio ‘’Fortuna’’ brings novelties, I learn something even from interns, new generation has an ability to make you look at things from the other side. I can say this place is my second family. There are so many professionals at the holding, and we do our favorite thing together.

What is it necessary to hold successful communication with the public?

There is a whole list: operativeness, you should be always available, being able make quick decisions, time management, efficient communication, it has a great importance to create positive expectations.

You should have nice attitude and trust to yourself.

What three tips would you offer someone just starting out in PR? strategic thinking, rapidness and quick adaptation and making decisions in crisis situation.

What do you wish you knew before starting your career in PR? Knowledge is the main capital in this profession, so there is no way not to achieve success if you are diligent and love what you do, my experience allows me to say this. Last but not least, you should stay balanced.

Describe a typical work week.

Amazing- meetings, gatherings, events, conferences, training, business trips and what I always do is making phone calls, I guess it’s professional habit.

How do you go about finding relevant contacts and sources?

As I’ve mentioned, gaining contacts and right communication is determinant, always smile, each person that enters your life is important, so you should stay curious.

How would you prioritize and start your work day?

The main attributes besides mobile phone are notepad and laptop, it’s impossible for me to plan a day, week or month without them. I think, plan, organize and everything goes fantastic. Management and contribution of tasks guarantees successful day.

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

You should approach each co-worker individually. Actually, what I least like is

ambitious, liar, lazy and irresponsible people, that’s why in ‘’Fortuna’’ we keep diligent, competent and operative people. I guess, that’s our key to success and keeps us the leading place in radio, with a history of 20 years. It’s still distinguished and important radio, ‘’Gold Standard FM’’, ‘’Ar Daidardo’’- it’s always on the first place on such and more ratings. Then it coms ‘’Autoradio’’ that doesn’t have any competition and is the most pleasent guide for autolovers.

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

Face-to-face relationships!

What are some growing trends in the public relations industry?

This process is constantly ongoing, developing, changing, refining, keeps up with time or sometimes takes advantage.

Public relations starts with individual relationships, thus it creates company’s image. It’s hard to talk about trends and innovations shortly, but I can say, it makes me happy to see healthy attitude towards profession, interest and companies seeing great importance of PR.

9 July 30, 2018 #248

Business News Georgia Among Booking.com’s Best Wine Destinations

Davit Pirtskhalava’s Movie Nominated at Locarno Festival For the Second Time

Booking.com writes about 6 wonderful and lesser-known “wine direction”, one of which is Georgia.

Within a few days, Locarno International Film Festival opens in Switzerland, where the world premiere of young Georgian director Davit Pirtskhalava’s movie will be held for the second time.

Rare Megrelian Vine Varieties Restored

Pratap’s Signature Hotel-Resort and Spa Opened in Ganmukhuri Second Phase of LOPOTA Tourism Complex Expansion Project Finished

Rare Megrelian vine varieties Chvitiluri and Koloshi have been restored, Misha Tsirdava, founder of Obene family wine cellar, told BM.GE. Several other Megrelian vine varieties will be also restored, namely, Kachichi, Chechipeshi, Cheqobalio and Makhvatina, he added.

Hotel Pratap’s Signature Hotel-Resort & Spa has opened on July 2 in Anaklia, Ganmukhuri.

The second phase of expansion of LOPOTA tourism complex has been completed in Kakheti Region with the support of Partnership Fund.

The renovated complex is ready to host tourists.

Attitude towards the Law on Tobacco Control in Tbilisi According to the survey conducted in Tbilisi in June of 2018, 34% of citizens are consumers of tobacco. Among them, 29% smokes regularly, 5% only occasionally.

Colliers International Georgia-Office Market Becomes Tenant Friendly Irakli Kvirikadze Appears in the New Movie With Anthony Hopkins Irakli Kvirikadze appeared on set with prominent actor Anthony Hopkins in “Now is everything”, directed by Riccardo Spinotti.

According to the 2017 Office Market Research published by Real Estate Consulting Company Colliers International Georgia, the increase in the providing of A-class offices on the market has significantly reduced the lease.

9 Million GEL to Equip Music and Drama Theater

EBRD to Develop Waste Management Strategy for Tbilisi

Vaso Abashidze Musical Comedy and Drama Theater will get technical equipment worth of GEL 9 million. The tender has already been announced for the procurement of works.

The European Bank for Reconstruction and Development (EBRD) will develop waste management strategy for the first time in Tbilisi. According to the City Hall, the document will be created on the basis of the Association Agreement liabilities.

10 July 30, 2018 #248

Saving the Soul-Deeper Insight to First Georgian Animated Comics Georgia is not spoiled with local animation, while Archivarius team took an initiative to create a whole new animated universe titled Saving the Soul, following three different narrators.

George Badashvili, founder of ”Archivarius Studios” unveils challenges of producing digital motion comics with CBW: Tell us about Archivarius Studios’ projects and its team.

I would say Archivarius Studios is more like a small working collective of friends, rather than studio.

Archivarius team is consisting of artists, illustrators and animators.

Initially, we established it to make 2D and 3D, as well as experimental animation producing studio. ‘’Saving the Soul’’ has deep and multilateral narrative. What was the inspiration for the story and characters?

Me,my most friends and members of collective, were raised watching Hollywood blockbusters, reading bestseller sci-fi & fantasy books, famous comics and series- simply, pop culture influenced us. Back then, we only had access to foreign

productions and fantasies.

Although, it’s 2018, and not much has changed. It’s been almost 15 years that ‘’Lost’’ has released, changing television format around the world, as for us, broadcasters are still stuck on Turkish and Latin-American shows.

50 years of ‘’Spider Man’’, and there is still no eligible comics in Georgia. We don’t produce anything to present worldwide, neither blockbuster film, nor animation, as if we are frozen in time, living in cultural anabiosis. We are still far behind from Hollywood and even Bollywood, stuck in the middle, stamping competition and festival art-houses like robots and ambiguous creatures.

Obviously, winning festivals is important for the country, but I want to see the time Georgia having its own ‘’Superman’’ and ‘’Wall-e’’.

That’s why I decided to create sci-fi/ fantasy universe, that maintains world trend and the best traditions.

That’s how we started ‘’Saving the Soul’’ project. Then we founded studio, picked animation format – the most affordable one for our budget and kicked off making pilot episode. I was hopeful companies would see the genre’s potential, but unfortunately, it didn’t go that way.

Animation, and more specifically motion comic is not quite developed in Georgia. What advantage does it give you to be unprecedented one.

What perspectives do you see?

Motion comics is limited animation with its idea, it represents something in between classical 2D and 3D animation. That’s the cheapest type of animation to produce. Meanwhile, results is no less than other types give.

That’s why, it’s widely used among video games, during cut scenes or intro. It can also be found in some blockbuster films.

Describe your working process and techniques. Did you face any difficulty as lacking of experience this field in the country?

In fact, we were the first in Georgia who made such animation, so we had to teach ourselves everything. It was uncharted waters. Past experiences have shown me both the pros and the cons in this genre.

It doesn’t have any ‘’elasticity’’ and both artist and animator are quite limited technically. Motion Comics can never become the mainstream, it will also be recognized as niche.

It will be promoted in case game industry develops in Georgia, or it can be suitable for advertising too.

Although, I can’t see making long animations in this genre.

How do you see your project in the future, do you take part in any competitions?

It took as about one year to get either sponsor or investor. We visited many companies and televisions, tried to keep it as animation or even comics.

We sent it to every publishing house, where we got rejected. I can’t accuse, as I’ve mentioned, we are culturally not ready for such novelties.

I’m hopeful that people is the future of this project, our audience who enjoyed with it. Meaning, there is one crowdfunding platform, called Indiegogo. Anyone is allowed to place his project on this website, it doesn’t matter whether it’s mechanical product, T-shirt or animation. After some time project needs to collect indicated amount of finances. What’s good about that is people don’t just donate, but they get ‘’perks’’- gifts by us. Let’s say if one donates 15 USD for the project, he gets printed poster, soundtracks CD, watching permission 1 month prior, etc. In case, fund is not raised, everything is declined, and they get their money back.

Alternative option of the project can be issuing comics. We will print it by ourselves and sell through social networks without cooperating with any publishing house.

By Nina Gomarteli

11 July 30, 2018 #248

12 July 30, 2018 #248

Big Achievements of Doctors TV Show It’s been almost 4 years since the medical TV talk-show The Doctors has appeared on Georgian television.

Launched by Rustavi 2, the famous broadcasting company and later aired by another major TV channel, IMEDI, the show is still the most favorite medical program in Georgia. Lika Kharebashvili, producer of The Doctors will disclose success of the show which is the identical to the CBS Doctors show in the US. The Doctors is the leading medical show in Georgia.

Why is it unique and what does it make so interesting to the viewers for such a long time?

I am really happy that The Doctors is so popular in Georgia. Running the medical talk-show is among the most challenging parts of my experience as a producer. Medical show requires hard work, much time and attention. It’s very hard to make the show for everyone, because we know medicine is very specific field with technical terminology.

You need to understand the topic and interpret the scientific language into human voice. To make the episodes even catchier and more entertaining, we add some show elements and try to expose even the weirdest and unpopular topics of the show with the most interesting and creative manner. Our viewers are our inspiration, they give us feedback online and we try to meet their demands and take their comments into consideration when we plan the next episode.

I think that the constant attempts of making the show

more and more exciting guarantees the viewers’ interest.

After 3 years of running the show on Rustavi 2, the show has moved to Imedi TV. Has the show rating changed?

Do you still intricate your viewers?

To be honest, I considered that the first period at the new channel would be hard as viewers used to watch it on Rustavi 2. But the rating of the first episode aired at IMEDI TV, on December 31, was unbelievable. 12% AMR – it’s a great result for a daytime show, it’s almost the primetime show benchmark. We have our unique, loyal viewers and we are very thankful for it.

As we know, except ratings, it’s a very successful show commercially as well.

Exactly. Both channels, where The Doctors has been run, are privately owned companies.

So, if you want to be aired, you have to be successful commercially too. Everyone knows that the main income for TV Company is advertisements. Sponsors are looking for highly rated shows for placement. If you have high ratings, it directly means, that you have lots of viewers and of course you are becoming attractive for sponsors too.

How do you select the guests of the show? I’ve heard, It’s very prestigious for Georgian doctors to appear on your show.

We carefully choose the guests for the show; we look for the

professionals who can share innovative methods of treatment or tips for daily healthcare in a simple and concise manner. We double check that the information they provide is fully reliable and trustworthy. We feel that our guests are always happy to participate in the show.

The Doctors is often awarded with various awards and prizes. What is the main recognition for you?

We have obtained certificates and prizes for promoting the healthy lifestyle and raising the awareness about the diseases in Georgia. In 2015, the Doctors was nominated as the best medical talk-show of the year and we won the main prize - Golden Wing.

I’m proud that the program served to increase the public knowledge about the diseases and their prevention, healthy lifestyle and importance of exercising. As a result, lots of gyms opened in Tbilisi, more people go to the hospitals for examinations, smoking has been restricted indoor social areas, as a result of the big social campaign, more vehicle drivers let the emergency cars pass immediately. It has become a priority for people to care about the health.

All these were the main objectives of the project and I’m happy to be the part of these big achievements.

World News

13 July 30, 2018 #248

Estonia is Making Public Transport Free From July 1, every county in Estonia can implement free public transport for its residents, 24 hours a day, seven days a week.

Armenia does not seek NATO membership, says PM Azerbaijan May Double Wine Exports in 2018 Azerbaijan may increase wine exports twice by the end of 2018, Chairman of the Azerbaijan Wine Producers and Exporters Association Elchin Madatov told Trend July 19.

Armenia does not seek NATO membership, the country’s Prime Minister Nikol Pashinyan said in an interview with the Ekho Moskvy (or Echo of Moscow) radio station.

"The reason is that we are a member of the Collective Security Treaty Organization (CSTO) and our goal is to make Armenia’s membership in the organization more effective," he said.

Zuckerberg Walloped With $15.9 Billion Loss on Facebook Fallout About 175 companies in the S&P 500 are worth less than the $15.9 billion that vanished from the fortune of the Facebook Inc. co-founder as shares of the social-media giant plunged 19 percent Thursday. Zuckerberg, 34, is now the world’s sixth-richest person with $70.6 billion, down three rungs on the Bloomberg Billionaires Index.

Greece hit with flash flooding while recovering from its deadliest bushfires in history GREECE has been hit by devastating flash floods — as the country still reels from the savage wildfires which ripped through the Attica region of the country.

Heavy summer rainstorms over the past two days have caused flooding in several parts of Greece, as shocking aerial pictures have shown the seaside town of Mati destroyed by flames.

Czech labour market attractive to foreign graduates The Czech labour market is attracting increasingly more foreign graduates.

The booming economy — the Czech National Bank expects a 3.9 per cent growth rate in 2018, and the low unemployment — 2.4 in the first quarter of 2018 — means that many companies no longer require work experience.

Kenya to host 2020 World U-20 Championships The IAAF is delighted to announce that Nairobi in Kenya has been selected as the host city of the 2020 IAAF World Athletics U20 Championships .

Turkey's Fragile Economy Faces New Risk in U.S. Sanctions Threat Already hit by a run on the currency and a surge in inflation, Turkey’s economy faces a new risk after President Donald Trump threatened to impose “large sanctions” over the detention of an American pastor. Trump’s warning followed criticism of Turkey by his vice president and secretary of state, and caused the lira to extend losses in late trading.

ADB Launches Strategy 2030 to Respond to Changing Needs of Asia and Pacific The Asian Development Bank’s (ADB) Board of Directors has approved a new long-term corporate strategy, Strategy 2030, that sets out the institution’s broad vision and strategic response to the evolving needs of Asia and the Pacific.

14 July 30, 2018 #248

15 July 30, 2018 #248

14, 15, 16 September THE NEW RIGA THEATRE / BARYSHNIKOV PRODUCTIONS Based on the poems of Joseph Brodsky BRODSKY/BARYSHNIKOV Drama/one man show Directed by Alvis Hermanis Venue: Kote Marjanishvili State Drama theatre Duration: 90 min. without intermission 20:00 16 September The Staatstheater Karlsruhe, Germany / Royal District Theatre, Georgia Davit Gabunia TIGER AND LION Directed by Data Tavadze Venue: Royal District Theatre Duration: 100 minutes, without intermission 20:00 17, 18 September Cieque Eloize, Canada Dave St-Pierre and Jeannot Painchaud CIRKOPOLIS Directed by Dave St-Pierre and Jeannot Painchaud Venue: Griboedov theatre Duration: 85 minutes, without intermission 20:00

ZhaoLiangART Martial Art in Dance Zhao Liang Dance Theatre Directed by: Zhao Liang Composer thru out in Lighting Design: Chen Jian Ming Stage Design: Wu Di Make-up & Image Design: Wang Jia Poster Design: Anna Choreographer: Zhao Liang Photographer: Gu Yi / Fan Wei / San Li / Cai Qing / Duration: 70 minutes, without intermission Cast: Li Nan, Li Yu, Cao Pei Zhong, Gong Xingxing, Zhang Kun, Zhang Zhenguo, Liao Yuan Wu, thruoutin, Song Zhao.

way of dance presentations, “neo scene setting” in Zhao Liang’s art works reflects his creative insights into the interaction between dance performances and their surrounding environment. By expanding the dance scene, he demonstrates an interdisciplinary application of modern arts. The shows use eastern aesthetics as a vehicle to catalyze the renaissance of traditional Chinese culture in the modern context.

Composed of three chapters, the Soul & Desire Trilogy illustrates Zhao Liang’s return to the traditional Chinese culture and his fluency in eastern dance vocabulary after he spent time overseas. The three chapters are independent yet interrelated. Together they form an experiment in terms of theme, structure, dance components and visual effects, which demands extraordinary artistic talent and courage.

Art”, i.e. to present a boundary-crossing theater work that holistically demonstrates to all audience our Chinese Martial Art by way of pioneering modern dance, for the purpose of inheriting, developing, innovating and popularizing the unique culture essence of the Orient.

In the presentations, Martial Art and Dance are red-and-blue divergent, but highly converged at the level of the spirit, as the two are guided by individual philosophy and experience – to play the fight through dance and to figure dance through fight, thus eradicating the physical forms and boundaries of the two to obtain real meaning.

By so doing, we hope to uphold a sense of architecture to human body by way of modern dance, to inquire the great mind of Zen, to take martial art away from the competitive sports, and to

All these may as well make Zhao Liang an avant-garde in the modern dance history of China.

take shape in spirit, energy and vitality in order to channel the essence from both of the two.

20 September The Tiger Lillies, UK EDGAR ALLAN POE’S HAUNTED PALACE FEATURING THE TIGER LILLIES Directed by Paul Golub Venue: Kote Marjanishvili State Drama theatre Duration: 90 min. without intermission 20:00 23 September Thalia Theater, Germany Nino Kharatishvili THE EIGHTH LIFE (FOR BRILKA) Directed by Jette Steckel Venue: Shota Rustaveli State Drama Theatre Duration: 295 with 2 intermissions 19:00 26 September ZhaoLiangART MARTIAL ART IN DANCE Directed by Zhao Liang Venue: Griboedov theatre Duration: 70 minutes, without intermission 20:00 26 September Theatre History: SthlmsMusikTeater SMT, Sweden Text and music by Jan Erik Saaf FREUDS CIGAR Zhao Liang is highly open to new THE ONE MAN MUSICAL ABOUT SIGMUND inspirations and ideas and then weave FREUD them into his well-designed storyline.

Directed by Andrias Boonstra Venue: Kote Marjanishvili State Drama theatre, small Besides, he has attracted a team of stage outstanding artists. Through literary Duration:90 without intermission allusions, seamless emotional connec20:00 30 September Hands Percussion, Malaisya South East Asia Music, Contemporary Percussion DIALOGUE IN SKIN Artistic Director Bernard Goh Venue: Kote Marjanishvili State Drama theatre Duration: 85 with 1 intermission 20:00

tion and flowing performances, he blends fragments of classical stories into a multi-sensory cultural innovation. Surreal as they are, the dance shows contain layers of meanings and use metaphors to present universal truths. In comparison to the traditional

About Performance: Intoxication, Exaltation and Simplification.

Those who can stop the war and fight are genuine martial artists/Fighters; when such martial art was performed to the rhythm of music, the art of dance came into being.

The Name of “Martial Art of Dance” originated from “Dance” and “Martial

16 July 30, 2018 #248