Caucasus Business Week #254

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October 1, 2018 - www.cbw.ge

#254

WEEK

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Georgia is Emerging Europe’s Most Economically-free Country

Bringing Innovation to Central Asian Countries - Huawei's Second Annual Innovation Day in Uzbekistan

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GEL Volatility Badly Affects Business and Foreign Investors Notice Negative Tendencies Estonian businessman Oleg Ossinovski talks about worsening attitude that Government of Georgia demonstrates in relation to foreign investors.

Previously, when I launched business in Georgia, the Authorities were prioritizing foreign investments, but today we see that this priority has been replaced.

p.10 Economy and Ecology

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ADB to Expand 1.5 billion USD Investment Portfolio in Georgia Asian Development Bank (ADB) plans to expand its investment portfolio in Georgia, Minister of Economy and Sustainable Development of Georgia Giorgi Kobulia and ADB representation director Ieshim Elhan-Kaialar noted at today’s meeting. This was a positive and useful meeting and we discussed several important issues, the Minister said.

TBC Bank Signed 30 Million Euro Loan Agreement with European Investment Bank TBC Bank and the European Investment Bank (EIB) signed a 30 million loan agreement. Resource maturity is 5 years and it will be used to finance small and medium businesses.

Price Index of Construction Works Grows by 4.3% Quarter on Quarter

Igor Aptsiauri: Myway Airlines will Perform Flights to 5 Directions in Europe by 2019 By the end of 2018 Myway Airlines will perform flights to 5 directions in Europe. Four directions remain secret, while the fifth one will be performed to Budapest, Hungary.

Capital Renovation of 6 Subway Stations is Planned

Price index of construction works has increased by 4.3% quarter on quarter, mainly due to growing employment in construction sector.

Averaged monthly nominal salaries rose by 13.9% and their effect on the total index constituted 3.53%.

There is No Problems with Excessive Debts on the Market Today there is no problem with excessive debts on the Georgian market, Archil Bakuradze, head of the supervisory board of Crystal microfinance organization told BM.GE. The sector needs reasonable regulations, however, in case of maximum restrictions, new threats will arise on the market, he said.

Tbilisi Transport Company plans to repair capital’s 6 metro stations.

National Bank Simplifies Crediting Procedures for Physical Bodies Clients to Get Services of Revenue Service and Public Registry under Single-window Principle at Commercial Banks.

EBRD to Fund Kheledula HPP Construction The European Bank for Reconstruction and Development will finance the construction of Kheldula HPP with $ 30 million.

Georgia to Host International Business Tourism Conference in Cooperation with ICCA At the end of October 2018 Georgia will host an international conference in cooperation with International Congress and Conference Association (ICCA).

Tbilisi to See Only White Color Taxis Next Year Since 2019 the standard taxis of city comes into force. According to Kakha Kaladze, allowed color will be white.

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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Georgia is Emerging Europe’s Most Economically-free Country

The Fraser Institute has published the 2018 world economic freedom report, which appraises the 2016 period of World Economic Freedom. The report comprises indicators of 162 countries due to various criteria, including – government size, simplicity in doing business, property rights and judicial system, as well as regulation burden and simplicity of external trade.

In the whole index Georgia has won two positions and moved to the 7th place from 9th position. This progress was brought by the stable monetary policy and improvement in labor market regulations. However, Georgia’s positions worsened in some criteria.

For example, in the 2017 report the Fraser Institute appraised Georgia’s judicial system and property rights protection by 6.57 points of 10 ones. In the new index this indicator declined to 6.31 point. Due to distinct criteria, the worsened directions are as follows : court system independence – 5.05 in 2017 and 4.28 in 2018; impartiality of judges – 4.74 in 2017 and 6.13 in 2018; confidence in judicial system – 7.19 in 2017 and 6.97 in 2018; criminal situation – 7.49 in 2017 and 7.03 in 2018.

As to the improved indicators, Georgia, compared to the past year, considerably improved positions in two indicators – Strong Currency (up 0.32 scores to 9.22 point) and Regulations (up 0.45 points to 8.49 point) and this progress has made a positive influence on the whole rating of the country.

“For the third year, Georgia maintains a place among top ten countries in the Economic Freedom Index, where we occupy the 7th position. This signifies that the country makes progress in terms of institutional aspects and it acquires stability”, Paata Sheshelidze, president of New Economic School – Georgia noted.

The Fraser Institute’s World Economic Freedom rating appraises countries in five key directions – government size, protection of legislative system and property rights, strong currency, freedom of international trade and regulations. These indicators include 23 components and the components include subcomponents. In whole, the rating comprises 42 various variables and each variable is appraised by 0-10 scale.

“Georgia’s such positioning in international ratings is of crucial importance. We have been making progress for several years. It is very important that the progress was recorded this year too and we maintain

the position among the freest countries of the world”, Ekaterina Mikabadze noted after the presentation.

The 2018 index was prepared by James Gwarten (Florida State University), Robert A. Lawson (South Methodist University) and Joshua Hellis (West Virginia University). The mentioned rating is based on the 2016 indicators and it measures economic freedom level (freedom of choice, market penetration, protection of private property, public order and law and so on), based on analysis of policy and institutions of 162 countries. „Our positions were improved in several directions – economic regulations, small government. We paid special attention to these issues when discussing government programs in 2017. We had progress in this direction. I believe we will have this progress in 2018 too and Georgia will further improve positions.

This is a good message for potential investors, as well as for growth of confidence in Georgia’s investment environment. This is also a good information for upturn in Georgian economy. This means a progress in all directions”, Irakli Kovzanadze, head of the parliament’s finance and budget committee noted.

Rating of top ten countries in the World Economic Freedom is as follows: 1. Hong-Kong; 2. Singapore; 3. New Zealand; 4. Switzerland; 5. Ireland; 6. The USA; 7. Georgia; 8. the Republic of Mauritius.

9. The United Kingdom 10. Australia.

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Bringing Innovation to Central Asian Countries Huawei's Second Annual Innovation Day in Uzbekistan

Huawei hosted second Central Asian Innovation day in the capital city of Uzbekistan, Tashkent which has gathered more than 200 experts, scientists and representatives of the state governing authorities of Central Asian countries.

Chinese tech giant, Huwei is actively working to raise the confidence of regional governments, media and audiences such as KOL, customers, partners, experts and scholars in the development of ICT industry. For this last year Huawei has founded Central Asian Innovation Day, which inaugurated in Astana, Kazakhstan.

“The Huawei Innovation Day is very timely and useful for Uzbekistan, as the country has developed a Strategy of Innovative Development 2019-2021 and the ‘road map’ on its implementation, as recently approved by President Shavkat Mirziyoyev,. The key objective of the Strategy is "to develop human resources as the main factor that determines the level of the country's competitiveness in the world arena, and its innovative progress". Another goal of the Strategy is to ensure Uzbekistan’s ranking among 50 advanced countries of the Global Innovation Index rating by 2030. Due to the lack of many indicators and "ineffective coordination of work in this direction," the country has been standing apart the rating in recent years. With this in mind, we hope that today's meeting of distinguished guests, decision-makers and professionals, your recommendations and proposals, ideas on the joint projects, will give a powerful impetus to the breakthrough innovative development of both Uzbekistan and the entire Central Asian region as a whole”, - stated Mr. Burkhanov.

Minister of Innovative Development of Uzbekistan Ibrohim Abdurakhmanov stressed that innovation is a broad concept and requires very good partnership and one of the important partners is Huawei.

"One of our main goals at the moment is to create an innovative environment in the country and this event is just giving the opportunity to initiate the necessary environment," Abdurakhmanov said.

Also, the participants were addressed by the President of the region for Central Asia and the Caucasus of Huawei James Chen. In his speech, he put forward proposals and recommendations for digital transformation in Central Asia.

He emphasized on the need for Central Asian countries to improve infrastructure of telecommunications, including fixed and mobile broadband, and to continue to provide widespread support for software development that prevents multiple disruptions in various industries. Regulators should develop more tolerant policies to encourage investment and encourage the equivalent development of operators.

James Chen explained that the key factor in this direction is the digitalization of the relevant industries. Countries should give priority to industries with comparative advantages, such as tourism and transport. Finally, he challenged countries to digitalize the internal processes of public authorities as soon as possible, and then gradually move to the introduction of

e-government in cities. In these areas, Huawei is ready to work with local operators and partners to help find the best solutions.

Mr. Victor Zhang, Senior Vice President of Huawei, followed with a keynote with suggestions for the digital transformation in Central Asia. He said, that Central Asian countries need to strengthen telecommunications infrastructure, including fixed broadband and mobile broadband, fully encourage the development of application software (OTT), allow room for plenty of failure in various industries, regulators should develop more tolerant policies to stimulate investment, encourage simultaneous development of operator’s MBB and OTT. He added, that the digitalization of advantageous industries is the key. Countries should give priority to the industries with comparative advantages defined by various countries such as tourism and transportation. Finally, he called on countries to achieve the digitalization of government affairs for the first step, lay the foundation for the smart government, and then gradually move toward urban brain management. In these areas, Huawei is willing to work with local operators and application partners, seeking the best solutions.

Huawei Innovation Day has become a high-end dialogue platform for key stakeholders in Central Asia's digital ecosystem. This year's event gathered top government officials in the region, including representatives of Uzbekistan ICT Ministry, Minister of Innovative Development of Uzbekistan Mr. Ibrokhim Abdurakhmanov, vice-Minister of Information and Communications of Kazakhstan, Dinara Shcheglova, first deputy Chairman of the Communication Service of Tajikistan Ilhomjon Atoev.

Many speakers joined the event to share their ideas on building out the digital ecosystem. Specifically, they talked about policy and regulation, digital transformation of industries, AI unicorns, and how ICT will enable the development of future generations, including RCC, Moscow School of Management SKOLKOVO, Chinese company YITU Technology, Yi-hualu and representatives of Uzbekistan Gas and Oil industry, telecom operators.

Starting in 2013, Huawei Innovation Days have been held in London, Milan, Munich, Paris, Singapore, Sydney, Kuala Lumpur, Dubai, and Sao Paulo. Huawei advocates openness, innovation, collaboration, and shared success, and is committed to bringing digital to every person, home and organization for a fully connected, intelligent world.

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GEL Volatility Badly Affects Business and Foreign Investors Notice Negative Tendencies Estonian businessman Oleg Ossinovski talks about worsening attitude that Government of Georgia demonstrates in relation to foreign investors. Previously, when I launched business in Georgia, the Authorities were prioritizing foreign investments, but today we see that this priority has been replaced. Growing bureaucracy and worsening investment process may be a new method of state development … The country has somehow managed to recover, but some officials in armchairs have outlined other priorities and similar attitudes and approaches are absolutely unacceptable, Oleg Ossinovski said.

“In any country, for example in Germany, Angela Merkel would personally attend a presentation of such a large-scale project worth 1 billion EUR. And now let’s see – is there any officials here? I mean this, when I talk about worsening attitudes. The Authorities prioritize other directions than attracting and maintaining foreign investments in the country”, Oleg Ossinovski said.

In terms of profitability, it is illogical to make investments in Georgia, because the profitability rates are the same as in any foreign country, but risks are higher, he added.

“Only thing that admires me is that it is possible to do business anywhere and how you want. For example, it is impossible in New York to build a town like Tbilisi Hills, but you can do this in Georgia. That’s why, despite a lot of problems and less profitability, I like the mentioned opportunities and that is what makes me stay in Georgia. In the end, money is not everything in this life”, he noted.

Oleg Ossinovski has been implementing various investment projects in Georgia, including Golf Course in Teleti and several hydro power stations in various regions of Georgia.

According to appraisals by Estonian businessman Oleg Ossinovski, the corruption still remains in Georgia. Ten 10 years ago, when I arrived in Georgia, nobody could dare to talk about corruption deals. Moreover, even no hints were made from government officials, Oleg Ossinovski said.

“And now we hear about similar offers. I think corruption level is growing in Georgia every day and I have zero tolerance to this issue and I do not participate in similar dialogues and negotiations. This is an issue of principle, but this is our reality”, Oleg Ossinovski said.

Three years ago, Estonian businessman started construction of the biggest gold course in the village of Teleti. Total investment value of this project is 1 billion EUR. The first stage of the project was finished last week. The businessman has talked about worsening investment environment at this presentation.

The Caucasus Business Week (CBW) has inquired whether other foreign investors also see similar problems in Georgia.

Following the Estonian businessmen, Rahim Abachi, director general for Iran-Georgia Chamber of Commerce and Industry also talks about unfavorable business environment in Georgia. The economic situation in the country has worsened, he noted.

There is heavy social background in the country and this tendency shapes negative tendencies in investors, Abachi noted.

In response to the question how easy investors operate in the country and whether bureaucracy grows in the country, Abachi explained that he had no similar cases personally, however the economic growth low paces and sometimes frozen economic development frightens investors.

‘When the economy does not record monthly growth and there is low-rate performance, this make direct influence on investments. In general, legislation has essentially strengthened in relation to our citizens and restrictions are introduced. These factors also make influence” Abachi said.

In Response to the qquestion whether making investments is profitable is in Georgia and whether business related risks are minimized, Abachi explains that all investors should explore their specific business environment and make investments only after that. Moreover, GEL exchange rate volatility makes quite negative impact on business and foreign investors notice these negative tendencies.

“We suggest to strengthen binational commerce chambers, merge businesses and cooperate with the Government. These components are important for businessmen and for economic ties with the countries “,Itsik Moshe, president of Israel-Georgia Chamber of Business, noted.

In response to the question whether he agrees with the Estonian businessman’s statement, Itsik Moshe explains that business is like water in the river and it balances itself. The President of GeorgiaIsraeli Business Chamber says that investments follow only profitability. In general, investments from Israel and the global Hebrew communities are different and therefore, problems and results are different too, he said.

“In case of Israel, tourism business sees unprecedented growth. Israeli citizens also demonstrate growing interest in real estate of Georgia. They are also interested in developing high technologies in Georgia.

Naturally, problems also exist, but our communication with the Georgian business ombudsman suffice to tackle them.

As to business support and stimulation, this is the discretion of Georgia.

“The country may decide that its does not need investors in a specific field and we, chambers of commerce, have the right to care for only those investors, who entered Georgia with initiatives and offers”, Itsik Moshe said.

Israel-Georgia Chamber of Business has not met corruption cases in Georgia, he said.

“If there are certain problems in this direction, it is necessary to provide active job with due chambers of commerce. We are ready for consultations”, Itsik Moshe noted.

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The New Word in Mobile Photography: HUAWEI P20 Pro

Mobile Photography is a new direction in photography that is growing in popularity. The rising demand encourages producers of technologically sophisticated smartphones to pamper consumers by upgrading and bringing out the perfect models, which includes enhanced processors, increased installed memory, sophisticated cameras, better screen resolution, and greater resources. Besides the cost of devices, such improved features are the main driving force for the competition in the world market.

With each new smartphone, consumers want better photographic technology.

Recognizing this, the HUAWEI P20 Pro is the first smartphone in the world to boast three cameras. With this innovation, the company has introduced consumers to a new generation of mobile camera technology.

HUAWEI has already proved many times its worth as a decent and advanced brand of innovations. The world agrees that the HUAWEI P20 Pro is the best choice for taking the highest quality photographs.

It is the only smartphone to possess three main cameras: a 40MP, 20MP and 8MP camera.

HUAWEI helps users to take professional and high-quality photos even in bad lighting.

The HUAWEI P20 Pro was released earlier this year and comes with Leica's triple camera, which earned 109 points from DxOMarkthe highest result ever recorded. Although many new smartphones come out each year, the HUAWEI P20 Pro remains the first and is recognized globally as the best camera smartphone on the market.

How does the triple camera work?

Each camera and lens possess its own functions and features.

The 40MP RGB camera with a 1 / 1.7" sensor, 27mm vision area and f / 1.8 diaphragm is aimed at perceiving colors.

The 20MP monochrome camera with 1 / 2.78" sensor, f / 1.6 diaphragm and 27 mm vision, takes black-and-white images and helps the device to adjust to the number of lights and brightness for catching more details. The industry's leading 8MP telephoto camera (VARIO-SUMMILUX-H 1: 1.62.4/27-80ASPH) has a 1 / 4.4" sensor, f / 2.4 diaphragm and an 80 mm optical focal length with 3x optical zoom.

The advantages of the

HUAWEI 40MP camera The HUAWEI P20 Pro has a 1 / 1.7-inch sensor with 40MP resolution, although the camera does not directly take a 40MP image. Instead, it uses "Pixel Binding" technology to achieve a 4-pixel merged 10-megapixel image. To add light, a monochrome cam is used, which not only increases sharpness but also delivers more detail in the image. All these features of the HUAWEI P20 Pro increase the dynamic range and ISO sensitivity that ultimately results in a high resolution photo.

A great sensor that sets the standard for ISO sensitivity The HUAWEI P20 Pro has 3x optical zoom, 5x hybrid zoom and 10x digital zoom. Using 5x hybrid zoom, the HUAWEI P20 Pro can capture amazing colors and details on a photo.

The HUAWEI P20 Pro allows users to see and capture the world in a new, more innovative manner and introduces a new standard in smartphone photography. This is the latest technology behind the HUAWEI P20 Pro's threedimensional camera and is very popular among Georgian consumers.

HUAWEI products and services are available in more than 170 countries and are used by a third of the world's population. There are 16 research and development centers operating worldwide in the USA, Germany, Sweden, Russia, India and China. HUAWEI Consumer BG is one of HUAWEI's three business units, mainly focusing on smartphones, personal computers, tablets and smart services. HUAWEI Global Network is based on 20 years’ experience in the telecommunications business and serves to provide innovative technologies to customers.

8 Reasons Athletes Drink Beer ..And Why It’s a Good Thing There's an undeniable connection between getting a great sweat and knocking back beers. Research shows that not only are athletes more likely to imbibe, but the harder we work, the more we drink.

Carbs and calories aside, there are actually a lot of reasons for athletes to down a post-sweat pint or two. From reducing muscle soreness, replacing lost fluids, and maybe even preventing kidney stones, here are eight reasons you deserve, nay, need another beer.

Beer Doesn't Dehydrate You In moderation, of course.

Science hasn't quite given us the data we need to consider beer a recovery drink, but it won't add to your postsweat hydration woes. A 2015 study in the Journal of the International Society of Sports Nutrition found that when 16 male athletes consumed either mineral water alone or beer plus mineral water after a sweaty workout, there were no remarkable differences between their levels of hydration. And, a 2015 study in the International Journal of Sport Nutrition and Exercise Metabolism found that light beer with added sodium actually helped with fluid retention post workout.

Alcohol Can Reduce Perceived Muscle Soreness Beer really does make everything better, even that ache in your hamstrings. A 2014 study in the International Journal of Kinesiology and Sport Science found that athletes reported feeling less sore when they drank beer versus a placebo after a hard session.

It Can Prevent Kidney Stones Over time, frequent dehydration can lead to kidney stones. But beer could help keep your kidneys in the clear. A 2013 study published in the Clinical Journal of the American Society of Nephrology found that most sugary drinks, like sodas and juices, upped a person's kidney stone risk. But regular beer intake decreased a person's risk by 41 percent, while wine decreased it by only 31–33 percent.

Beer Builds Strong Bones A 2007 study published in Nutritional Health and Aging found that dietary silicon was crucial for bone and skeletal tissue strength. Guess what one of the best sources of silicon is? Beer. The amount of silicon occurring in a pint varies significantly from beer to beer, though IPAs are a good bet for their pale malts and abundant hops — the richest sources of silicon. However, a paper published in the journal Food and Science in Agriculture concluded that drinking about three bottles of any beer would satisfy your daily requirement.

It's Anti-Inflammatory

Score another one for hop heads: Besides making beer taste amazing, a 2009 study in Molecular Nutrition and Food Research found that hops could reduce acute inflammation in study subjects. And a 2006 study in Planta Medica found that hops could work similarly to traditional overthe-counter COX-2 inhibitors, a type of non-steroidal antiinflammatory drug.

It Boosts Team Bonding A study published in Psychological Science found that moderate doses of alcohol made bonding with a social group easier. It also increased how often members of the group smiled. Our social networks are important — especially when it comes to working out. A few fit friends can save you from hitting snooze on a cold morning or from giving up on those tough intervals.

Your Heart Appreciates a Drink The key here is moderation.

Drinking in excess is linked to a higher risk for heart disease, but according to the American Heart Association, a single drink a day could raise HDL (good) cholesterol levels and could reduce blood-clot formation, a risk factor for heart attack and stroke. The AHA recommends one to two drinks daily for men and only one a day for women.

It's Good For Your Gut Beer gets a bad rap for what it does to your belly. And sure, if you drink a lot of it you're going to pack on a few pounds.

But it can also be good for your digestive system. Moderate alcohol consumption seems to combat the bacteria often responsible for stomach ulcers, Helicobacter pylori, as reported in a study from The American Journal of Gastroenterology.

Furthermore, beer is a good source of arabinoxylanoligosaccharides, the prebiotic foodstuffs that your good gut bacteria feast on.

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Tea Lominadze: "Having Contacts is an Irreplacable Tool" Interview with Tea Lominadze, Marketing Director of East Point.

Why did you decide to enter this field and what opportunities does it give in terms of career growth?

I happened to finish school when I was 16, I got in Caucasus University in Marketing direction. I thought back then I was aware of my decision, but from this point I think I was lucky, as 16 year-old kid is too young to know what she wants to do with her life.

Nowadays, I’m happy with what I do.

What is it necessary to hold successful commincation with public?

Consistent communication is an important factor, it’s important to know specific audience, communicate clearly for them through channels that are familiar for them.

What three tips would you offer someone just starting out in PR? • Do your homework; • Know your audience well; • Have a bold message; • Don’t forget a Feedback part.

Describe your typical work week.

Traditional rhythm got more active in September. Typical work week starts at 10 AM, walking around the site at East point with a cup of coffee in my hand, then I take time to answer E-mails, after which starts meetings, brainstormings, as we plan something innovative on daily basis.

What are the skills PR Specialist needs?

Diligence is crucial no matter what profession you have, it’s a foundation of all other traits. Our field requires sociable person, who communicates freely, who doesn’t have any fear of sportligh or camera, and I think charisma can be useful too.

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

A lie is a number one unnecaptable factor in any relationship for me. I value sincerity, also I won’t be the first one to say team-players are pleasant to work with, friendly environment is very

helpful. Besides, will, passion is something that helps us achieve success.

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

Strong personal contacts- this is an irreplacable tool.

What are the growing trends and innovations in Public Relations field?

There is a huge information flow in our era, which makes it harder message to reach an addressee.

Although, some news are are creating that simplifies communication with target groups. Social Media has changed this field drastically, starting from strategy to tactics, we see and plan everything from different perspectives.

Influencer Marketing is being an active trend in the world, that’s a great trick in stragetic communications. We see a trend in artificial inteligence, that’s more spread abroad, while we also have Georgian examples already.

9 October 1, 2018 #254

Business News Discover the King Gorgasali Hotel in Old Tbilisi and Get an Accommodation in the Heart of the City

ment on December 20. The court is likely to start functioning in 2019.

Sportswear Multibrand Store AW LAB Opens in Georgia

PwC in Georgia has strengthened its practice with the addition of two new women directors. As PwC bids to boost its expertise in the region and meets changing customer demands, as well as rewards top performer and talented women, the firm has announced an extensive roster of promotions in Assurance and Advisory Departments.

Nino Kadagishvili, Assurance Director and Tamta Shermadini, Advisory Director.

AW LAB is a laboratory of urban sportswear style, which offers fashionable sportswear and clothes collections, which inspire customers to shape their own style.

Number of Wine Factories and Cellars Increased Drastically Compared to Last 10 Years

blockchain Tamar has a broad perspective on blockchain, how it plays in different markets from Latin America to Asia.

Ozurgeti Denim Clothing Factory to Produce Jeans of International Brands in Guria Region In Guria Region, Ozurgeti Denim clothing factory has launched operation in test regime and employed about 150 women. The factory will sew jeans of famous brands such as Zara, Mango, Massimo Dutti, Esprit and so on.

FERRERO to Purchase Megrelian Hazelnut Products “Megrelian Nuts” Ltd was created by Agricultural Production Processing and Savings Plant in Samegrelo, village Tkheli, which collects the nuts from farmers and peasants.

Minister of Environment Protection and Agriculture of Georgia Levan Davitashvili together with local authorities visited Tornike Chubinidze Wine Cellar in the village Shilda, Kvareli region.

Levan Mekhuzla Appointed as New Head of National Wine Agency

Georgian Wine Exports to China Declined due to Excess Supplies and High Prices According to Geostat, in January-August 2018, wine in the amount of $ 11.7 million was exported to China, while in the same period of 2017 – wine exports totaled $ 13.6 million

Court of Arbitration will be Established in Georgia The International Chamber of Commerce (ICC) of Georgia will sign a memorandum with the government of Georgia to establish the International Court of Arbitration in Georgia – states the President of the ICC, Fady Asly. According to him, the memorandum will be signed with the Georgian govern-

National Wine Agency (NWA) announced that its new chairman is Mr. Levan Mekhuzla, who was appointed on September 21, Hvino News reports. Since April Mr. Mekhuzla has been deputy chairman of the NWA. New Phase of One-Billion USD Project of Tbilisi Hills Golf & Residences Underway

Startup Grind: Getting Serious About Blockchain, with Tamar Salant With experience spanning from Israel to Argentina to China, and from startups to government to leadership of business development for Neo

Construction works of Tbilisi Hills Golf & Residences complex is underway near Tbilisi, a 15-minute way from the capital city. This will be a perfect residential complex on 331-hectare space. The project calls for building 54 apartments and 8 townhouses and 3000 families will be accommodated in the complex.

10 October 1, 2018 #254

Journalists drive electric cars from Tbilisi to Batumi as part of Green Tour No emissions and costs –- an electric car is an ecologically clean and least-cost transport with growing popularity. Currently, about 5000 electric cars drive in Georgia.

However, a long distance is an only aspect that could make clients refuse buying electric cars. Anyway, even this problem will be resolved gradually.

To prove the electric car’s ability to cover the distance from Tbilisi to Batumi, SOCAR organized a green tour for media representatives. Fully-

charged two electric cars of Hyundai Ionic and Tesla Model S made the first break at SOCAR refueling station in Gori, where a fast charging terminal has been installed. Full charging takes 30-45 minutes and clients are able to have a cup of coffee and meal at the station. Kutaisi is the next stop, where you have to stay in the city for 1-1.5 hour. Fully-charged car in Kutaisi will drive to Batumi without stopping.

SOCAR Company plans to install more electric car charging stations.

Economy and Ecology SOCAR Petroleum Georgia director Levan Giorgadze noted that the company mission is not only to supply fuel to clients. SOCAR refueling stations provide all necessary services, he said.

“Wide development of this industry is inevitable. Today the most part of vehicles work on internal combustion engines, but in the near future people will drive cars with alternative

fuel and electric car is the most appropriate innovation in this respect.

We are not a fuel company. We are the network of fueling stations. We are friends of drivers on highways and we must be able to serve all kinds of vehicles, including electric scooters.

We plan to install elements for electric scooters jointly with our partners. We will foster this direction. The more electric cars, the better ecology we will have and the air will be cleaner, Levan Giorgadze noted.

SOCAR owns 8 electric car charging stations all over Georgia – two ones in Tbilisi, one in Batumi, one in Kutaisi, one in the village of Urbnisi, Kakheti, Rustavi and Martkopi. The company plans to increase the quantity soon.

Thus, electric car drivers will be able to drive to both western and eastern regions of Georgia.

Besides popularization of electric cars, SOCAR’s corporate responsibility project also include other directions.

As part of Five Standards of Responsibility, the company has implemented a number of projects for environment protection, youth support, safety, promotion of women and persons with disabilities (PWD).

The company has also planned several new projects for the near future.

Transparency is one the key principles of SOCAR’s corporate social responsibility through providing access to information. The company will prepare CSR report on annual basis to reflect all indicators and information about an yearly performance and future plans.

11 October 1, 2018 #254

National Folklore Center Opens in Ozurgeti

A regional branch of the National Center of Folklore has been opened in Ozurgeti, covering the western region and all three municipalities of Guria.

Director of the Georgian Folklore State Center Giorgi Donadze, and Minister of Culture and Sports Mikheil Batiashvili, opened the rehabilitated center in Ozurgeti before an audience of government and business sector representatives, folklorists and media.

Minister Batiashvili said he considers the rehabilitated, modern folklore center a unique means of development of the sector.

“Opening this unique folklore center in Ozurgeti is the best opportunity for folklore development in western Georgia. It comes with a concert hall, exposition rooms, and recording studios with all the essential equipment. It will be the perfect venue for international folklore festivals in the region,” he said.

According to Donadze, the Folklore State Center in Ozurgeti will serve the whole of western Georgia. It was opened to promote the development of cultural and educational activities, and the preservation and popularization of Georgian folklore.

“We opened this western regional representation of the Georgian Folklore Center to serve all fields of folklore and we will be working to intensify the direction of folklore in western Georgia,” he said.

During the opening ceremony, Georgia’s best folklore bands, including Shemoqmedi, Shvidkatsa, Basiani, local trio Shalva Chemo and choirs from the town itself, Mestia and Oni performed live for the audience.

“Georgian Folklore is unique worldwide for its polyphonic sound and traditional chanting,” said Donadze. “Guria is even more special in this regard, as its chanting is very specific in tonality. Guria is also the heart of western Georgia and a favorable geographical location for the Folklore Center. Ozurgeti will become western Georgia’s main communicative center. We hope that exhibitions and concerts will be moved from Tbilisi to Ozurgeti and thus the center will help revive the western region of Georgia. In addition, the main concerts of the Black Sea Folklore International Festival will be held in this Center from 2019.

I would also like to arrange scientific conferences here, inviting foreign specialists to share their knowledge and experience.”

Another mission of the center is to encourage new generations to become interested in folklore, and to share the accumulated knowledge with them. The center will be able to bring all the traditions into practice and boost interest from local youth as well as providing an interesting stop for tourists.

The Municipal Development Fund of the Ministry of Regional and Infrastructural Development of Georgia was in charge of the rehabilitation works on the administrative building of the Ozurgeti Folklore State Center of Georgia, with financial assistance from the Ministry of Education, Science, Culture and Sports of Georgia of GEL 1.5 million.

“The building was in a dire state and needed rehabilitation,” noted Executive Director of the Municipal Development Fund, Juansher Burchuladze. “We implemented a full renovation of both the interior and exterior walls, roofing, facade, infrastructure and yard.”

The whole building is now adapted for people with disabilities

World News

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Visa Appoints Vira Platonova as Senior Vice President, CISSEE Group Country Manager Visa Inc. today announced that Vira Platonova will rejoin the company as Senior Vice President and Group Country Manager for Visa CISSEE, effective October 22, 2018.

Platonova, who worked for Visa from 20072010 in Ukraine, will oversee all Visa operations in seventeen markets across Eastern Europe, Central Asia and Southeast Europe.

Switzerland, Russia are Europe's Big Importers of Euros ADB Ready to Allocate over $800M for Azerbaijan The bank’s business plan says that particular attention is paid to the continuation of two programs - the modernization of the country’s energy system ($335 million) and the improvement of public administration ($250 million).

Some 30 percent of all euros in circulation -- approximately 350 billion euros ($412 billion) -- were held outside the 19-nation currency bloc at the end of last year, the European Central Bank said on Monday.

Switzerland accounted for the bulk of shipments to western European countries, while banknote wholesalers’ exports to eastern Europe mostly went to Russia, where euro bills are seen primarily as a store of value.

German Businesses are Hanging on in Turkey Despite the sliding lira and diplomatic tensions, many German businesses remain committed to Turkey because they see the country’s long-term growth potential.

Armenia’s Prime Minister is Clear Winner of Yerevan Municipal Elections A block of parties allied to Prime Minister Nicol Pashinyan has won municipal elections in the Armenian capital Yerevan. The Central Election Commission (CEC) of Armenia announced that the My Step Alliance received 81 per cent of the votes in the election held on September 24.

Regulators Accuse Tesla's Elon Musk of Securities Fraud The Securities and Exchange Commission has filed a lawsuit accusing Tesla boss Elon Musk of securities fraud. The US financial regulator says Mr Musk's claims that he had secured funding to take the electric carmaker private were "false and misleading".

Google Search Celebrates 20 years Anniversary Google was incorporated on September 4, 1998, but the company has always celebrated its birthday on September 27th for over a decade.

Ryanair Cancels 250 Flights across Europe on Friday WTO Cuts Trade Growth Forecast to 3.9 Percent for 2018 The World Trade Organization has lowered its global trade growth forecast for this year by one-half percentage point to a still-robust 3.9 percent, saying increased trade tensions between large economies and heightened uncertainty contributed to the downgrade.

Tens of thousands of Ryanair passengers across Europe face disruption on Friday after strikes cancelled 250 flights. On Thursday, German pilots joined striking pilots in the Netherlands and Belgium adding another 100 to the 150 cancellations already in the pipeline.

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15 October 1, 2018 #254 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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