Caucasus Business Week #255

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October 8, 2018 - www.cbw.ge

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Georgia Guest of Honour at Frankfurt Book Fair The guest country presents its literature and culture at the fair in Frankfurt, as well as many other locations throughout the country, and gives Frankfurter Buchmesse a new face each year

p.4

Staff Cuts and Growing Salaries

The 2019 State Budget Grows Pensions by 20 GEL, as well as Salaries of Policemen, Rescuers and Firefighters.

The First Unsubsidized intage in Years: Better-than-expected

V

p.13 Production and Realization of

Polyethylene Bags Banned in Georgia from Now on

From October 1, the use of polyethylene bags, import and production is prohibited in Georgia.

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Natia Turnava: We will Provide even Stronger Support to the Development of the Small HPPs “Our energy system is facing significant challenges since the accelerated economic growth contributes to the consumption increase in the energy sector and therefore, the Ministry of Economy and Sustainable Development will provide even stronger support to the development of the small HPPs”.

USA to Allocate Half Million USD to Boost Strategic Communications in Georgia United States of America (USA) will allocate 0.5 MLN USD to Georgia to boost the strategic communications of the country. As noted by Mamuka Bakhtadze, Prime Minister of Georgia at the briefing held prior to the Executive Government Meeting today, country is challenged by the aggressive propaganda masterminded by hostile forces.

German KfW and French AFD Sign 74mln EUR Loan Agreements to Support Georgia’s Energy Sector Reform Minister of Finance of Georgia, vane Matchavariani and KfW’s Director Eastern Europe, Caucasus, Central Asia KfW Development Bank, Olaf Zymelka have signed a Loan Agreement of EUR 49 mln for the ‘Support of Georgia’s Energy Sector Reform’.

Bodorna HPP Launches Operation Bodorna HPP construction works have been finished in the village of Bodorna, Dusheti Municipality. Installed generation of the HPP is 2.5 megawatts and averaged annual generation makes up 15 million kw/h.

9.9% Growth of Electricity Consumption Expected in 2018 Georgia to Set up Commercial Arbitration of International Chamber of Commerce Georgia plans to establish a commercial arbitration of International Chamber of Commerce, Prime Minister Mamuka Bakhtadze noted before today’s government meeting.

The due agreement will be signed in Paris on December 20, he added.

Georgia-Hong-Kong Free Trade Agreement Submitted to Parliament for Ratification The Georgia-Hong-Kong free trade agreement signed in June 2018 has been submitted to Parliament of Georgia for ratification. This is the first agreement that Hong Kong has signed in our region, Prime Minister of Georgia Mamuka Bakhtadze said before today’s government meeting.

How Crisis in Turkey May Effect Georgia – Koba Gvenetadze Explains “If the situation is not deteriorated in Turkey, we do not expect essential influence on Georgian economy”, Koba Gvenetadze, president of National Bank of Georgia (NBG) noted in his interview for the Global Finance.

Electricity consumption growth rate was revised upwards by 3ppts for 2018.

KPMG Georgia to Carry out Audit at National Bank KPMG Georgia will carry out an audit of the reporting of National Bank of Georgia (NBG). The corresponding draft resolution was prepared by the parliament’s finance and budget committee and it will be submitted to the parliament for voting.

Alternate Energy High-Tech Plant to be Built in Georgia Acting deputy executive director of the “Partnership Fund” Giorgi Danelia signed a memorandum in the framework of the official visit of the Prime Minister of Georgia to the United States, according to which the construction of the first modern and sustainable energy high-tech enterprises in Georgia was planned.

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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Staff Cuts and Growing Salaries The 2019 State Budget Grows Pensions by 20 GEL, as well as Salaries of Policemen, Rescuers and Firefighters.

The 2019 state budget is planned to amount to 12 729 700 000 GEL. This is the initial variant of the main financial document of the country that the Government has already submitted to the Parliament. Under the document, the 2019 economic growth forecast is 4.5%.

“In the coming years economic growth indicators will rise gradually and it will rise to 5% by 2020, 5.5% by 2021 and 6% by 2022”, the state budget bill explanatory card reads. According to the document, the 2019 nominal GDP will be 45.1 billion GEL, while the figure is expected to rise to 57.9 billion GEL by 2022. The Ministry of Finance expects that the 2018 tax revenues will be fulfilled in excess. Consequently, the renewed prognosis makes up 10 500 million GEL. The state budget expenditures will rise by 270 million GEL, namely the figure was 12.459 billion GEL in 2018 and will rise to 12.729 billion GEL in 2019.

It is also noteworthy that the 2019 budget bill’s initial variant does not comprise radical changes. As to pensions, it will increase by 20 GEL from January 1, 2019, as announced by the Government. In 2019, 1.925 billion GEL is included in the budget (1.7 billion GEL in 2017) to this end. contributory pensions will be financed by 170 million GEL. Infrastructure expenditures will also increase by about 140 million GEL, mainly for road infrastructure development.

The income tax forecast indicator makes up 3 365 million GEL, including the state budget ratio is 3 115 million GEL and the ratio of Autonomous Republics amounts to 250 million GEL. Profits tax forecast indicator is 786 million GEL, VAT – 4 482 million GEL. As of 2019, the excise tax forecast indicator is 1 505 million GEL. Imports tax forecast indicator is 83 million GEL and all other taxes amount to 40 million GEL; “In 2019 excessive payments made in previous years will be actively refunded (mainly VAT) and we expect that more than 400 million GEL will be returned in 2019. According to the document, budget expenditures from the state budget summary assignments make up 11 268.2 million GEL, grants – 96.5 million

GEL and credits – 1 365 million GEL. From total amount of the budget expenditures, social allowances account for 3 773.1 million GEL, salaries 1 473.8 million GEL, goods and services – 1 194 million GEL and so on.

According to the state bbudget bill, in 2019 the government will decrease the current liabilities by 933.9million GEL, of which 893.8 million GEL will be directed to covering external state liabilities and 40.1 million GEL will cover domestic state liabilities and debts.

It is interesting that, according to the 2019 state budget bill’s initial variant, number of employees at budget-funded offices will be reduced. In 2018, the number of employees was 113 613 persons, while the figure will decrease to 112 100 persons in 2019.

This signifies 1 513 persons will be fired. At the same time, expenditures on salaries in 2018 amounted to 1.413 billion GEL, while under the 2019 budget bill, this amount is 1.473 billion GEL. According to the 2019 budget bill, salaries will increase to the staff of border police and emergency management office. Interior Ministry allocations will be 643.5 million GEL. Salaries of inferior policemen that increased in 2018 will be fully financed. At the same time, salaries inferior policemen will increase by averaged 250 GEL starting January 1, 2019.

Emergency Management Office will receive 87.6 million GEL, including increased salaries of firefighters and rescuers will be financed by additional 5.5 million GEL. Seemingly, the budget-funded organizations do not care for cutting expenditures, however, the bill discussion process may outline several corrections. As a result, initial and final versions of budget bill radically differ from each other.

“The year of 2019 will see an essential growth in financing of several directions. We have full support from international finance institutions. We are waiting for their recommendations and I do not rule out that the budget will be considerably cut in both parts of revenues and capital expenditures. This is a normal process”, Prime Minister Mamuka Bakhtadze noted.

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The First Unsubsidized Vintage in Years: Better-than-expected

Vintage 2018 and Private Sector’s Evaluations This is the first unsubsidized vintage under the ruling of Georgian Dream. In 2017 Government ensured partly subsidization for brandy grape varieties in Kakheti Region and grape varieties for Khvanchkara wines in Racha Region, while this year the state budget has allocated no penny in this direction.

Like the previous years, National Wine Agency is supervising the vintage coordination issues. The vintage will be finished in several days in Kakheti Region. More than 200 000 tons of grapes have been already processed. As a result, winegrowers’ incomes in Kakheti and Racha-Lechkhumi Regions constituted about 300 million GEL. According to National Wine Agency, as of September 24, about 142 000 tons of grapes were processed in Kakheti Region and farmers’ incomes exceeded 204 million GEL. According to Andro Aslanishvili, deputy head of National Wine Agency and head of the vintage coordination center, the main part of the harvest has been already sold and 214 winemaking companies have processed 142 000 tons of grapes in Kakheti Region.

15 000 winegrowers have sold grapes to winemaking companies and their total incomes made up 204.2 million GEL. It may be said that the 2018 vintage was successful in Kakheti Region. The vintage still continues in the region and in several days the process will start in Racha Region too, Andro Aslanishvili noted.

The major volume of grapes in Kakheti Region was processed in Gurjaani municipality – 41.3 thousand tons; Kvareli District – 40 000 tons, Telavi – 31 000 tons, Sighnaghi – 12 000 tons, Sagarejo – 5 000 tons, Dedoplistskaro – 4.7 thousand tons, Akhmeta – 4.2 thousand tons and Lagodekhi – 3.8 thousand tons.

In total volume of processed grapes, Saperavi was 66.5 thousand tons, Rkatsiteli – 56.8 thousand tons, Kakhuri Mtsvane (Kakhetian green) 2.7 thousand tons and many other varieties.

The vintage coordination center that opened in Telavi on August 20, has registered 250 winemaking companies as of September 24.

The vintage is underway in Racha region too. According to the National Wine Agency, as of October 3, 1080 tons of Mujuretuli and Aleksandrouli grapes were picked and sold in the region. According to Andro Aslanishvili, head of the vintage coordination center, the vintage process continues without obstacles.

‘This year we have the best harvest of Aleksandrouli and Mujuretuli grapes. Both quality and volume have increased. Over the past years new vineyards were planted and this year we expect the harvest in Racha Region to double compared to previous years. Today, there are 15 winemaking companies in Ambrolauri municipality. The company buys grapes from local farmers at 5 locations.

The vintage coordination center has registered 33 winemaking companies that are buying grapes form local population, Andro Aslanishvili noted.

The vintage coordination center opened in Ambrolauri on September 25. To protect the accuracy of varieties, ampelography specialists are also participating in the vintage process. According to preliminary indicators, this year more than 1500 tons of Mujuretuli and Aleksandrouli will be picked in Racha Region.

The Caucasus Business Week (CBW) has inquired how the vintage proceeds without government subsidies.

Giorgi Ghvardzelashvili, founder of Ghvardzelashvilis Marani winemaking company states that this year the vintage proceeds without obstacles. The farmer explains that the winemaking sector would have been developed more if the Government had ceased the sector subsidization long ago.

‘We were waiting when and how the Authorities would allocate subsidies. I personally objected to subsidies and I believed the market would regulate the price and quality itself. And this consideration turned out true. Everybody who have sold grapes are vey content. The market has regulated the prices”, Ghvardzelashvili noted.

This year the price of one kilogram of Saperavi grape was 2.5 GEL in Kakheti Region and the price of Rkatsiteli was 70-80 Tetri, he said.

Lasha Revazishvili, head of LLC Berika says that the 2018 vintage has showed that the winemaking sector is able to conduct the vintage without the state subsidies perfectly and valuably.

Zurab Ramazashvili, one of the founders of Telavi Wine Cellar winemaking company, says that the vintage turned out more successful without subsidies than expected.

“This process was to proceed without government interference from the very beginning. Without subsidization the 2018 vintage was unprecedently successful”, Zurab Ramazashvili said.

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Secret Scheme of Vano Chkhartishvili’s

Cigarette Business How Tobacco Business Hides Tens of Millions of GEL from State Budget Secret Plan of Vano Chkhartishvili’s Cigarette Business – the article published by the Kviris Palitra newspaper.

According to the Kviris Palitra newspaper, tobacco business uses a secrete scheme to sell filtered cigarettes as unfiltered cigarettes and to hide tens of millions of GEL from the state budget every year. „On January 1, 2017 the price of cigarettes in Georgia rose for the 5th time over the past 5 years. At this stage, the excise price of one pack of filtered cigarette rose by 60 Tetri. The excise tax on one pack of unfiltered cigarette increased by 30 Tetri. In whole, today the excise ratio in the price of unfiltered cigarette is 60 TeTri and in filtered cigarette – 1.70 GEL. The difference is evident – 1.10 GEL per pack! There were several reasons for growth in cigarette excise tax, including, higher tariffs were to reduce the smoking level in the country.

Moreover, under international agreements, Georgia is obliged to strengthen control over tobacco consumption and increase tax incomes in the state budget through higher excise tax.

It is interesting how the excise tax growth has affected the tobacco market. It turned out that consumption of imported filtered cigarette declined, but production of domestic unfiltered cigarette increased, despite its selling price has considerably increased. At a glance, smokers have given preference to unfiltered domestic cigarette in response to growing excise tax and prices on cigarettes. However, we have not found even one person smoking unfiltered cigarette….

One excise mark issued by Ministry of Finance signifies one pack of cigarette and the Ministry information comprises interesting issues. Namely, in 2014-2015 production of filtered cigarette exceeded production of unfiltered cigarette twice. In

2016 changes took place in cigarette production and the ratio of unfiltered cigarette grows quickly. In 2017 the situation radically changed along with significant growth in excise tax. The production of unfiltered cigarette has increased in unprecedented scales. In 2018 domestic production of filtered cigarette has nearly ceased. What has happened?

Since the official indicators comprised nothing more, we visited several booths of cigarettes and asked for full assortment of domestic cigaretteს. And here we disclosed the Formula of Success of domestic tobacco manufacturers that has determined the behaviour of tobacco manufacturers. It turned out that when buying a pack of the so-called unfiltered cigarette of domestic production, smokers also get 20 units of ‘filters’. These filters accompany each pack of unfiltered cigarettes. Even international tobacco manufacturers would envy such an ‘innovative’ solution! At a glance, nothing makes unfiltered cigarette different from filtered cigarette, but it is enough to turn out the piece of cigarette and you will see an empty space, where the accompanying filters should be placed. In short, you can transform an unfiltered cigarette into filtered cigarette by one touch.

Is this a certain trick for tax evasion, dishonest conduct on the market and anything else? All these circumstances should be clarified by investigating instances, The fact is that in this way tobacco business sells filtered cigarettes as unfiltered cigarettes and hides tens of millions of GEL from the state budget every year.

Supposedly, this circumstance has become a ground for imposing 26 million GEL fine on Tbilisi Tobacco after the former Finance Minister calculated the difference between excise tax prices of filtered and unfiltered cigarettes.

It should be noted that Okuashvili’s OGT cigarette is also sold in this way and the

same filters accompany it as Pirveli cigarette of Tbilisi Tobacco.

Distributors assert that the selling price of such tobacco is 1-1.5 GEL lower compared to imported products and they have a lot of clients. This is a commercial secrete of domestic tobacco manufacturers that has increased demand for their unfiltered cigarettes.

It is interesting why the Government turns a blind eye to all these facts and why it refuses incomes of multimillions of USD? If we trust the mentioned audio record, which was unveiled several days ago, Irakli Chubinishvili, a stakeholder of Georgian Tobacco, and Omega Group founder Zaza Okuashvili talk about 26 million GEL, which ex Finance Minister Dimitri Kumsishvili planned to impose on tobacco manufacturers, but by instruction of former Prime Minister Bidzina Ivanishvili, this process was ceased. Seemigly, the Authorities cheat themselves. According to the records, Vano Chkhartishvili has managed to evade payment of 26 million GEL. Tobacco manufacturers successfully continue applying legal gaps and selling filtered cigarettes are unfiltered products.

However, the most alarming is that there are people (in this case Chkhartishvili), who can racket the Authorities and hide huge amount of money from the state budget, the Kviris Palitra writes.

Article by Kviris Palitra

8 October 8, 2018 #255

Tea Javakhishvili: "There it Starts Breaking Myths and Create New Approaches" Interview with public relations manager Tea Javakhishvili of JSC "Gepa" (Pharmaceutical Company GPC and Pharmadepo).

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

Each project, even if it's a simple activity needs communication and to reach target audience and, thus this field allows us to learn different types of people, have diverse working process daily.

What do you wish you would have known before starting your career in PR? Marketing and communications field is very dynamic nowadays, you need to catch up with novelties every day and master new skills, adapt to new situations.

Having those skills is very helpful for amateurs.

Describe your typical week.

What is it necessary to hold successful communication with public?

It comes up always more than planned. It can be stressful but fulfilling in the end.

Sincerity and rapid response is important for successful communication.

How would you go about finding relevant contacts and sources?

What three tips would you offer someone just starting out in PR?

Any kind of relationships with people, whether it's in business environment or friendly. It's crucial to grow and develop networking skills.

I would give them advice to go beyond standard thinking, approach case and people individually and not to be afraid of experiments. There is a point where it starts breaking myths and building new approaches.

How would you prioritize and start your work day?

I try to listen to music for positive mood, second stage is social

networks, I read all information written about the brand.

What is a skill that successful PR Manager needs?

Individual approach with people, rapid responsiveness in any situation and fast adoption. .

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

Sincerity, being a team player and listening skill.

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

Communication that brings up emotions..

What are some of the growing trends in the public relations industry?

I would name following trends: • Influencer marketing; • Digital Storytelling; • Quantitative vs Qualitative; • Social Media.

9 October 8, 2018 #255

Business News Harry Potter Accesoires in Georgia Became an Exclusive Partner of Bioworld

m² announced in July 2015 about the construction of a new housing complex, m² Hippodrome 2, and construction works started the same year. Instead of 2018, the company started reconstructing for 800 families, ahead the plan on October 23, and complex has officially opened on October 4.

The company “Harry Potter Accessories in Georgia” became an exclusive partner of one of the biggest international corporations and pop culture, according to Company’s founder Giorgi Gikorashvili.

Regus to Open a New Business Centre in Tbilisi Regus, the largest provider of service offices, is set to open its second business center in Tbilisi.

The opening event is scheduled on 10 October at 71 Vazha-Pshavela Avenue. According to the firm’s regional manager Ruska Chakvetadze, the new business centre on Vazha-Pshavela Avenue stands out for its comfortable location. come together to create a different, creative and sophisticated furniture.

Colliers International Georgia to Create Tbilisi Districts Development Plan

Georgia to Let Foreign Citizens Easier Launch Business Revolutionizing changes are coming, Prime Minister Mamuka Bakhtadze noted when discussing government’s new initiatives, under which citizens of 34 countries will be allowed to register new business companies in Georgia in electronic format without arriving in the country, as well as to open bank accounts and enjoy various preferences.

Colliers International Georgia will work on the framework plan for development of several districts of Tbilisi. The company has submitted the best offer as part of the announced tender.

Georgian Director Selected for The Project of Cannes Film Festival First Vintage Restored on Meskhi Terraces after 400 Years The company “Vardzia Terraces” took the first harvest of rare species of vines rebuilt. The vintage participated in the rides of classic cars – “Peaks of Caucasus” pilots, local residents and journalists.

Winegrowers Revenues in Kakheti Region Exceeded 244 million GEL As of October 2, the volume of processed grapes in Kakheti Region exceeded 180 000 tons. Total incomes of farmers exceeded 244 million GEL. According to Andro Aslanishvili, head of the coordination office of the vintage, “this is genuinely record figure.

The young Georgian director listed among the participants of the The Résidence du Festival. Giorgi Sikharulidze was selected between 6 directors and will be working in Paris for the first full-length film scenario.

Another Energy Efficient and Fully Adapted Complex of m2 Added to Tbilisi

Production and Realization of Polyethylene Bags Banned in Georgia from Now on

From October 1, the use of polyethylene bags, import and production is prohibited in Georgia.

Authentic Creative Lab – Wood, Metal and Cold Rubber Synthesis for Transparent Furniture The history of the Authentic Creative Lab begins in 2018 when four people of different professions have

10 October 8, 2018 #255

Georgia – The Cradle of Wine Short overview of the Georgian Wine Sector From Experto Consulting

Considered as the motherland of winemaking, Georgia has an incredible 8,000-year history of continuous winemaking tradition.

The country is home to over 525 indigenous grape varieties. Since 2013, the Georgian traditional “Qvevri” winemaking method has been acknowledged by UNESCO as part of the Intangible Cultural Heritage of Humanity.

Due to climate and soil characteristics, Georgia is divided into five main wine-producing regions: Kakheti, Kartli, Imereti, Racha-Lechkhumi and the Black Sea Subtropical Zone. In addition to winemaking, the production of spirits is also developed in Georgia. Aside its rich wine history, Georgia is favorable with its business-friendly environment too.

The legal framework of Georgian wine exportation is also a strong asset for the winemaking industry. Georgian wines are exportable tariffs-free to over than 50 countries around the world, including European Union, China, CIS member states and Turkey. With a range of several Free Trade Agreements, Georgian wines and agricultural products have already access to a 2.3 billion customers market, and increasing.

According to National Wine Agency indicators, in 2017 Georgia has exported a record number of wine over past 30 years – 76.7 million bottles of wines to 53 countries, up 54% year on year.

Total exports value constituted USD 170 million. The year on year growth marked 49%.

From January to August 2018, Georgia has already exported 52.7 million bottles of wine to 52 countries (there is a 16% increase compared to the previous year).

Total exports are valued USD 125.5 million, proving a 25% growth rate.

The top five countries that have imported Georgian wine in 2018 are Russia, Ukraine, China,

Kazakhstan and Poland.

Besides wine, the country also exported 11.7 million bottles of brandy to 21 countries, which is 19% more than in the same period of 2017. Total brandy exports value marked USD 23.9 million (up 9%); and 238,900 bottles of “Chacha” to 24 countries. Exports growth has reached an 80% and exports value marked USD 692.4 thousand (up 88%).

At last, total revenues from wines, brandy, Chacha, wine materials and brandy spirits exports constituted USD 198.2 million, a 19% increase compared to the same period in 2017.

According to the Wine Agency, there are around 250 wine companies that export their products. Among them, the top exporters of Georgian wine are Tbilvino, Teliani Valley, Badagoni, Kakhetian Traditional Winemaking, BOLERO & COMPANY, Georgian Wine House, Telavi Wine Cellar, Kvareli basement and GWS (Companies are not arranged by export amount as the agency does not issue information about the quantities of wine exported by the companies).

Based on the export quantities and the local presence, the main players of the sector are: GWS - founded in 1993 in Telavi, Achinebuli. Company owns 400 hectares of vineyards, out of which 280 ha is red grape varietal and 120 ha is white grape.

GWS unites four wine brands: Tamara, Vismino, Old Tbilisi and Adamanti.

Teliani Valley – founded in 1997, follows Georgian tradition of winemaking and at the same time, uses modern technologies. Today JSC Teliani Valley is a holding company and its main activities are Winemaking and viticulture - Teliani Valley, Production of Brandy Le Caucase, Production of oak barrels – Kupa, and Distribution.

Teliani Valley – founded in 1997, follows Georgian tradition of winemaking and at the same time, uses modern technologies. Today JSC Teliani Valley is a holding company and its main activities are Winemaking and viticulture - Teliani Valley, Production of Brandy Le Caucase, Production of oak barrels – Kupa, and Distribution.

Badagoni – founded in 2006 in Kakheti region, village of Zemo Khodasheni. Company owns vineyards in Kakheti region. Wide range of their products comprises still wine, sparkling wine and Chacha. All of these products are made only from Georgian grape varieties using Italian production equipment (Bertolaso and Enotec).

KTW - Established in 2001, KTW produces wine, brandy, sparkling wine and chacha with traditional Georgian techniques. Company currently planted on more than 600 hectares all around Georgia and exports it’s products to over 20 countries.

Telavi Wine Cellar - founded in 1915 in Telavi, Kakhetian region.

Company owns 22,500 hectares of vineyards and exports to more than 25 countries.

Aforementioned tendencies prove that the Georgian Wine sector is a fast growing, world attracting and profitable industry.

A growing production triggers demand on high quality raw materials (rootstocks, seedlings, etc.), high quality packaging and wine aging equipment, innovative approaches towards winemaking, brandy and vodka production.

As Warren Buffett once said, “Opportunities come infrequently. When it rains gold, put out a bucket, not a thimble”.

By Ludovic Girod Tatia Kartvelishvili

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HUAWEI Mate20 lite Arrives in Georgia Folklore State Center to Attend Frankfurt International Book Fair This 2018 Frankfurt International Book Fair will be held on October 10-14.

The Folklore State Center of Georgia will take part in the fair for the first time. Moreover, for the first time, unique editions of Georgian Folklore will be introduced, namely Shen Khar Venakhi (You are Vineyard) and Collection of Georgian Chants. The Center has already finished working on the mentioned editions.

It is important that this year Georgia will be represented at the Frankfurt International Book Fair as a guest country with its full intellectual resource (literature, theatre, music, painting, cinematography, Folklore, cuisine…). As a result, German citizens and other invited guests will be able to get acquainted with the Georgian culture. Germany is hosting various culture events prepared of guest countries at concerts halls, galleries, movie theatres and theatres, literary salons and libraries all over the country.

The Georgian National Book Centre is carrying out the program preparatory works with the support of Ministry of Culture and Monuments Protection. „The 2018 grand project is of crucial importance for Georgia, as Georgia will be represented with its full intellectual resource at the Frankfurt International Book Fair. The country has the opportunity to thoroughly introduce its culture potential.

The 2018 event is very important for us, because we will introduce folklore editions for the first time such as Shen Khar Venakhi with 22 varieties of records.

This chant is performed by folklore groups from various regions of Georgia, including such ensembles as Rustavi, Basiani and so on. Collection of Georgian Chants is also very interesting that comprises records of chants of all regions and their music sheets”, Giorgi Donadze, director for the Folklore State Center of Georgia noted regarding the importance and uniqueness of the 2018 festival.

The Frankfurt Book Fair (Frankfurter Buchmesse) is the most prestigious and great international event in not only literary and publishing world, but also, in general, culture field. Every year the Fair hosts about 300 000 visitors and organizes an exhibition of about 400 000 books. The Frankfurt Book Fiar has the history of 500 years and it is held in mid-October every year.

For the first three days only business visitors attend the event, while the last two days are open for wide society.

The market lasts 5 days; more than 7000 participants from about 100 countries are able to meet their international partners, establish and develop business relations.

Every year the Frankfurt Book Fair is covered by about 9000 accredited international journalists.

HUAWEI Mate20 lite – This is a cutting-edge smartphone with Four Al cameras.

Georgian consumers have not to wait any more, as the latest model of HUAWEI Mate has already arrived in Georgia and it is attinable to everybody.

This smartphone is a new word in the business world.

Presentation of HUAWEI Mate 10 was held in October 2017 and this model has gain huge popularity since then amongst upper-class business professionals. In order to allow users to enjoy more of the Mate Series’ outstanding features, Huawei has created the stylish HUAWEI Mate 20 lite for young business-minded individuals entering the work force. The Four AI cameras can easily take beautiful photos across a wide range of scenarios, and is equipped with the new EMUI 8.2 to offer a breadth of outstanding features that satisfy its users’ business, social media, leisure and any other needs.

HUAWEI Mate 20 lite is able to not only recognie subjects, but also show clear details no matter the scene is dimly-lit or has back lighting, that’s to special algorithm. . It also has 3D Qmoji, as well as five types of professional lighting effects such as soft lighting (Rembrandt light), butterfly lighting and stage lighting, which make the photos look beautiful and allows users to showcase their vibrant lifestyles.

Bold Response to Modern Tendencies

What HUAWEI Offers in New Smartphone

Young people entering the work force as the future business elite tend to have higher requirements for mobile phones. The HUAWEI Mate 20 lite fully considers the design and technical requirements of users. Humans are naturally attracted to symmetric patterns and shapes. Symmetry embodies officiality, harmony, tranquility and balance.

HUAWEI Mate 20 lite is bilaterally symmetrical, which not only makes the device a pleasure to behold, but also brings a visual order to the other aesthetical elements at play.

Young people entering the work place for the first time grew up with the rise of the Internet, and the act of sharing on social media has become their instinct. They explore and get to know about the world through the Internet. Therefore, cameras and the quality of images play an increasingly important role in facilitating this process. The company has adequately responded to this challenge too - The HUAWEI Mate 20 lite is equipped with four AI cameras, two in the front and back, for a smarter shooting experience.

HUAWEI Mate 20 lite features an octa-core Kirin 710 SoC and the latest EMUI 8.2 to bring users an extraordinary experience through the perfect integration of software and hardware.

Kirin 710 is Huawei’s first 12nm chip. As a chip tailored for the HUAWEI Mate 20 lite, Kirin 710 features the A73 core that is 75% more powerful than the A53 in Kirin 659.

Four AI cameras, beautification algorithm, and 5 varieties of studio lighting enables to take top-quality and professional photos. With Kirin 710 processor and the latest internal interface, HUAWEK Mate 20 Lite with EMUI 8.2 ensures improved operation of the smartphone, including for mobile games.

HUAWEI Mate 20 lite is packed with a massive 3750mAh battery, and support for HUAWEI Quick Charge.

It is a convenient and genuine partner for people addicted to photography, games and communication. Moreover, multifunctional HUAWEI Mate 20 Lite with artificial intellect provide huge opportunities for young representatives of the business sector.

HUAWEI products and services are available in more than 170 countries and are consumed by one third of the world population. There are 16 research and development centers worldwide – the USA, Germany, Sweden, Russia, India and China. HUAWEI Consumer BG is HUAWEI’s one of the three business units that manufactures smartphones, personal computers, Tabs and provides cloud services. The global network of HUAWEI is based on 20-year experience in telecommunication business and offers innovative technologies all over the world.

Special Features of HUAWEI Mate 20 lite Dual Camera To give users a better photography experience, Huawei has put dual front cameras, comprising 24MP and 2MP sensors, in the HUAWEI Mate 20 lite. Dual cameras, on the other hand, use the primary lens to capture image data, and the other to capture depth data. Unlike other devices, HUAWEI Mate 20 lite leverages AI to enable its front cameras to recognize over 200 scenarios across eight categories.

World News

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Azerbaijani Business Spends 66% of Preferential Lending for 2018 The Entrepreneurship Development Fund of Azerbaijan (formerly the National Entrepreneurship Support Fund) plans to allocate preferential loans worth 170 million manats in 2018, Azerbaijan’s Deputy Economy Minister Sahib Mammadov told reporters.

Prague Named as Best City in the World to Spend Cryptocurrencies Azerbaijan’s High-Tech Park Starts to Issue Travel Grants to Startuppers “Travel grants are issued as part of the Fast Track acceleration program to local startuppers wishing to take part in big investment events which are held abroad, where they can meet with potential investors,” the ministry annouced.

Prague has been named as the best city in the world to spend cryptocurrencies, with 154 venues – including bars, restaurants, hotels, cinemas and attractions – now accepting Bitcoin as method of payment, as well as 12 ATMs dispensing real cash from virtual money accounts.

U.S. Imposes Sanctions on Turkish Company for Trade With North Korea The United States imposed sanctions on Thursday against a Turkish company and two of its officers for doing business with North Korea, sending a tough signal to Pyongyang ahead of Secretary of State Mike Pompeo’s expected visit there this weekend.

Ameriabank Signs €40m Loan Agreement with FMO

The UK Government is Accusing Russia of Waging a Secret Cyberwar across the Globe

Ameriabank CJSC and FMO (The Dutch development bank) signed a EUR 40 M loan agreement. This 5-year term facility will be dedicated to finance renewable energy and energy efficiency projects in Armenia, as well as financing young and female entrepreneurs in the country.

The Russian military intelligence agency accused of the attempted assassination of former spy Sergei Skripal has carried out a swathe of attacks in the UK and abroad on political institutions, financial systems, transport networks and the media, according to the British government.

Facebook Announced It Got Hacked and 50 Million Accounts Were Compromised Between the estimated that 50 million accounts whose access tokens were compromised, and the 40 million more users whose accounts Facebook reset as a "precautionary step," an estimated 90 million users were logged out of their Facebook accounts on Friday.

China Spy Attack Hits Apple and Amazon World Economy at Risk of Another Financial Crash, Says IMF The world economy is at risk of another financial meltdown, following the failure of governments and regulators to push through all the reformsneeded to protect the system from reckless behaviour, the International Monetary Fund has warned.

Apple and Amazon are among US companies and agencies who have had data stolen

by Chinese spies, claims Bloomberg. The data had been siphoned off via tiny chips inserted on server circuit boards made by a company called Super Micro Computer, reported the news agency.

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15 October 8, 2018 #255 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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