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28 April, 2014

The Mystery of the Russian Economy

by OLGA AZHGIBETSEVA and YAROSLAVA BABYCH ISET Policy Institute

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ntil very recently Russia was considered by many foreign companies a somewhat difficult but promising country for investment, a “land of opportunity” that perhaps necessarily came with a hefty dose of a “riddle wrapped in mystery inside of an enigma”. The difficulty was stemming primarily from Russia’s heavyhanded bureaucracy. Stories of corrupt practices, politically motivated court decisions and questionable tax authorities’ tactics abounded. While this may have scared off smaller investors, the large companies are typically no strangers to such challenges. Heartened by the rise of the Russian middle class, which was seen both as a source of profits and an engine for change, the West had hoped that the Russian state would in time transform into a modern, innovation and competition driven economy.

See on p. 2

Will Georgia lose old mates if/when it joins NATO?

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Minister: “Fines for environmental damage amounted to GEL 6,748,368” The FINANCIAL

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hanging the attitude of citizens towards the environment is the longest and most difficult process to carry out, as the experience of various countries has shown.

Georgians have to move from a consumer-oriented attitude to-

wards an attitude of care. Fines for violation of the environmental law and environmental damage in Georgia during 2013 amounted to GEL 6,748,368.

The positive news is that the private sector has recently started conducting more activities in environmental protection.

See on p. 3

Be energy efficient with ProCredit Bank!

The FINANCIAL

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roCredit Bank Georgia is continuing its efforts to establish a sustainable approach to energy efficiency and the environment. Within this framework, the Bank has implemented in-house energy and resource efficiency measures, which apply to both the technology used in the institution and the behaviour of staff.

See on p. 9

About GEL 40,000 Spent Annually on Keeping Tbilisi Zoo Green MERAB PACHULIA See on p. 8

GORBI

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n this column, we discuss a key issue that is vital to any country in the world – population size. One the most tried and true tools for accurately measuring population size, is the census.

Mentioned as far back as the Bible, censuses were implemented in empires from ancient Egypt to China, with Georgia no exeception. If we focus just on the Soviet experience, 6 censuses were conducted (in 1926, 1939, 1959, 1970, 1979 and 1989).

Actually there was one more, administered in 1937, but it was scrapped after revealing results that did not seem to fit in with the official reality propagated by the country’s Marxist regime.

The population was a staggering 8-10 million smaller than previously declared. Also, on the behest of Stalin, a question about religion was added that had devastating answers - 50% of the Soviet Union’s population in large cities and 70% of population in rural areas admitted to believing in God. See on p. 6

Tbilisi to Go Green with a Smaller Budget in 2014 The FINANCIAL

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total amount of GEL 15 million will be spent on renovating parks and squares, planting trees and greening Tbilisi this year by the Ecology and Greenery Department of Tbilisi City Hall. This year’s budget is slightly decreased

Germans on Doing Business in Georgia See on p. 9

compared to in 2013 (GEL 17 million) and increased in comparison to in the year 2012 (GEL 12 million). This year, the Ecology and Greenery Department of Tbilisi City Hall is not going to start implementing any large scale project because of the limited budget, according to Giorgi Korkashvili, Director of the Department.

See on p. 7

CURRENCIES Apr 26 1 USD 1.7617 1 EUR 2.4348 100 RUB4.9153 1 TRY 0.8270

Apr 19 1.7530 2.4262 4.8850 0.8232

© 2014 The FINANCIAL. INTELLIGENCE BUSINESS PUBLICATION WRITTEN EXPRESSLY FOR OPINION LEADERS AND TOP BUSINESS DECISION-MAKERS

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CURRENT PRICES ON GASOLINE AND DIESEL

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Prices in GEL Super 0.00 Premium 2.22 Euro Regular 2.10 Regular 2.02 Euro Diesel 2.23 Diesel 2.04 CNG 1.05

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Super Unleaded 98 Premium Unleaded 96 Euro regular Regular Unleaded 93 Euro Diesel 5 10 PPM

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KHACHAPURI INDEX IS UP 5.8% IN APRIL 2014 AS GREAT LENT ENDS

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pril was a special month for many Georgians. The Great Lent came to an end, and, after 40 days of fasting, Georgian families started preparing for Easter Sunday. In addition to decorating eggs, most families cooked traditional Georgian dishes, including delicious khachapuri, to be served on the festive Easter “supras”.

With the demand for meat and dairy products peaking just prior to Easter, the price of cheese shot up, “positively” affecting the Khachapuri Index. The average April cost of cooking one standard portion of Imeretian khachapuri reached 3.34 GEL, which is 5.8 % higher compared to March, and 12.8% higher than in April of last year.

Interestingly enough, the price of cheese (and Khachapuri index) behaved differently across different Georgian cities. While Kutaisi and Telavi experienced rather dramatic increases in the price of cheese (by 31.6 % and 10.8%, respectively), Tbilisi and Batumi continued to benefit from price

declines that are normal for this time of the year, -4.5% and -4.4%, respectively. We’ll come back to this puzzle in our future columns.

It is important to point out that the Easter effect on cheese prices can only be captured during the

two week period around Easter.

Beyond this period, prices follow the downward trajectory driven by the annual production cycle of milk and dairy products. As shown on the chart, the Khachapuri index was not able to cap-

ture the Easter effect in 2013.

This happened because last year’s Easter Sunday “fell through the cracks”. It happened on March 31, two weeks after we conducted our March survey and two weeks before the April survey.

The Mystery of the Russian Economy

by OLGA AZHGIBETSEVA and YAROSLAVA BABYCH ISET Policy Institute

U

ntil very recently Russia was considered by many foreign companies a somewhat difficult but promising country for investment, a “land of opportunity” that perhaps necessarily came with a hefty dose of a “riddle wrapped in mystery inside of an enigma”. The difficulty was stemming primarily from Russia’s heavy-handed bureaucracy.

Stories of corrupt practices, politically motivated court decisions and questionable tax authorities’ tactics abounded. While this may have scared off smaller investors, the large companies are typically no strangers to such challenges.

Heartened by the rise of the Russian middle class, which was seen both as a source of profits and an engine for change, the West had hoped that the Russian state would in time transform into a modern, innovation and competition driven economy.

Yet, the events of just a month ago, when Russia carried out the occupation and annexation of the Crimean peninsula under the claim of defending the life of Russians in Ukraine, and the current threats of military invasion in the Eastern Ukraine seem to be putting these hopes on hold. What do military ambitions have to do with economic policy? The link is more direct than seems at first.

In this two-part article, we will explore the evolution of the Russian economy from the Soviet times until the present day. We will try to pinpoint the specific complex challenges facing the Russian economy, and how much the country’s economy is still bound by its Soviet legacy.

MAIN ECONOMIC AND SOCIAL INDICATORS Just how well do Russian people live? With the GDP of $2.6 billion, the Russian economy stands in the 6th place in world ranking.

Taking into account a huge population (146 million) of the world’s biggest country, with GDP per capita $17.884, Russia’s standing

drops to 58th place.

According to World Bank estimates, the shadow economy accounts for about 40 % of GDP (World Bank, 2007). In addition, Transparency International’s corruption perception index ranks Russia as 127 out of 177 countries, in between Pakistan and Bangladesh. Russia is also in the 61st place (out of 142) by the 2013 Legatum Prosperity Index. As the index also suggests, 78.6% of people believe that corruption in business and government is widespread.

Some other indicators of living standards are not very encouraging either. In terms of income inequality Russia is doing worse than nearly all OECD countries excepting Mexico and the United States. As far as wealth inequality, the discrepancy between the rich and the poor in Russia looks

quite dismal. Currently, Russia stands in 3rd place worldwide by the number of billionaires in the country, and these billionaires, 110 people all in all, control 35% of the nation’s wealth. To compare, billionaires worldwide account for only 1-2% of household wealth. In the US, a country characterized by a relatively large wealth gap, 40% of the country’s wealth is controlled by 3.17 million people.

Still, despite all these problems Russian is the largest country in the world, extremely rich in natural resources. It accounts for about 20 percent of the world’s production of oil and natural gas and has significant reserves of both.

Moreover, Russia has reserves of almost all industrially important non-fuel minerals. With such large potential at hand, can Russia be doing better economically? If yes, why is the country not better off? Why, for example, the number of people dissatisfied with the status quo kept growing in recent years, necessitating the very tough anti-protest laws in Russia?

Some experts named “Dutch disease” as one of the main problems of the Russian economy today. The oil and gas sectors account for around 70% of export and 50% of government revenues.

The currency appreciation from oil and gas sector expansion made the country’s other exports too expensive to compete on the global market.

Continued on p. 6

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Minister: “Fines for environmental damage amounted to GEL 6,748,368” Khatuna Gogaladze

The FINANCIAL

By MADONA GASANOVA

Ms. Khatuna Gogaladze completed her master’s degree in Public Affairs at the Indiana University, Bloomington, USA as well as in Environmental Sciences and Policy at the Central European University (CEU) Hungary, Budapest. Her first degree comes from Iv. Javakhishvili Tbilisi State University, Faculty of Biology.

Ms. Gogaladze was the ENVSEC National Coordinator in Georgia (OSCE-administered Environment and Security Initiative). Besides she was the Manager of the Aarhus Centre Georgia (OSCE Project). Ms. Gogaladze worked at various positions at the Ministry of Environment Protection of Georgia. She has extensive experience in non governmental sector as a project coordinator and as an independent expert in projects supported by different international organizations.

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hanging the attitude of citizens towards the environment is the longest and most difficult process to carry out, as the experience of various countries has shown. Georgians have to move from a consumer-oriented attitude towards an attitude of care.

Fines for violation of the environmental law and environmental damage in Georgia during 2013 amounted to GEL 6,748,368. The positive news is that the private sector has recently started conducting more activities in environmental protection.

“The practice of developed countries shows that a country’s long-term economic development is impossible without meeting certain environmental standards. It is important to avoid the negative consequences of a degraded environment. This will help to avoid state expenses in the future that will be necessary for restoring a degraded environment,” Khatuna Gogaladze, Minister of the Environment and Natural Resources Protection of Georgia, told The FINANCIAL. Q. How would you estimate the year 2013 in terms of environment

protection in Georgia?

A. The reorganization of the Ministry and its institutional and functional strengthening has been one of the most important steps during 2013. The central office of the Ministry, as well as its subordinated institutions, has strengthened significantly. LEPL - National Forest Agency, LEPL - Basic Sapling Economy, LEPL - Center for Environmental Information and Education and sub-institution the Department of Environment Supervision, were all created / restored under the system of the Ministry.

The Ministry started regulating the nuclear and radiation safety measures. Forest policy, land resource protecting and anthropogenic threat managing structural units were implemented in the central office.

This institutional change has been reflected in the state budget law. In accordance, budgetary funds have doubled. The Ministry also strengthened in terms of human resources. There are more than 2,200 employees at the Ministry and LEPLs. Q. What are the main problems that Georgia

faces in regard to environmental protection?

A. The sector has largely been ignored over the years.

Its importance has not been estimated accordingly. All this has meant that numerous problems have accumulated, including the legal framework and absence of qualified staff. If we look at the field as a whole, the wrong practice of forest management should be noted. It resulted in the degradation of forest area.

Pollution (especially in some particular areas) and insufficiently effective mechanisms of its prevention and mitiga-

tion should also be noted. An inadequate observation network and lack of information are also a significant obstacle in making correct decisions.

These are just examples. A number of steps have been taken in line with solving these problems and the Ministry continues to work in this direction.

Q. What is the budget of the Ministry for 2014 and what are your priorities?

A. The budget of the Ministry amounted to GEL 31 million. Out of this sum GEL 4,200,000 are grants. In ad-

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dition we have our own income from various LEPLs. It is hard to talk about priorities. Every field of environmental protection is tightly linked to another. However, I would underline the forest sector, surveillance, waste management, natural disaster prevention and strengthening of monitoring in particular.

Q. During the past year you implemented various preventive measures to avoid negative impacts on the environment. How much did the budget of fines amount to and in which area did we have the most lawbreakers?

A. The Department of Environmental Supervision detected 3,128 cases of environmental law violations during 2013. Out of this, 3,007 cases were of administrative violation, and 121 of criminal offense.

The fines for the violations of administrative law amounted to GEL 1,740,090.

The fines for the violation of the environmental law and environmental damage amounted to GEL 6,748,368.

In 2013, most of the cases of lawbreaking (about 45%) were observed in wood transportation and illegal forest use.

Continued on p. 8

More than 67 Million Americans to Attend at Least One Wedding in 2014

The FINANCIAL The FINANCIAL

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ove over men, Chinese women are an equal force to reckon with when it comes to buying a car. In the next two years, 45 percent of female Chinese respondents plan to buy, compared with 55 percent who will be male, making for a neareven split by gender, according to the Nielsen Company.

For one-fifth (21%) of all Chinese respondents, this will be their first automotive purchase, compared with nearly three-fourths (73%) who already own a car. Among existing car owners, 89 percent plan to buy new, compared with only 1 percent who plan to buy used.

If you want to capture the purchase intent of Chinese car buyers, connect with their hearts. The strongest purchase motivator (aside from financial) is the love of driving (89%), followed by the need for status (79%) and utility (71%), according to the Nielsen Company.

For six out of 10 (60%) Chinese respondents, online ad platforms are the most helpful in their paths to purchase, followed by TV (45%), magazines and mobile (both 34%).

To measure the effectiveness of TV advertising in communicating to potential consumers, a recent Nielsen study analyzed a number of automotive brands and their ads to understand how real TV viewers remember the ads to which they were exposed. In China, 30 percent remembered the ad, and of them, 47 percent remembered the brand, for an overall ad impact of 14 percent, according to the Nielsen Company.

OTHER FINDINGS INCLUDE: Insight into who potential car buyers are, where they live, and how to appeal to them.

Global trends in auto alternatives.

Quick-reference country scorecards for: India, Brazil, Russia, Mexico, Indonesia, Turkey, the U.S. and Germany.

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ore than 67 million Americans plan to attend at least one wedding this year, and they expect to pony up more money to attend, according to the latest American Express Spending & Saving Tracker.

This year, guests expect to spend an average of $592, up 10% from last year and a staggering 75% jump from 2012, with most of the budget going to travel & accommodations ($308) and special attire and accessories ($164). Guests are not the only ones splurging: although most couples still vie to keep wedding costs under control (72% vs. 74% in 2013), many will spend a little more to do a little less as the DIY trend declines, down 5 percentage points from last year, according to American Express Company.

As the cost to attend weddings rises, spending on wedding gifts is also climbing.

Most guests will spend an average of $109 per gift this year, on par with last year ($108) and up 16% since 2012 ($94). If the recipient is a close family member, the average cost of a gift doubles to $200, up 20% from 2012.

Similar to last year, a third of consumers (33%) will purchase these gifts from the couple’s registry, while another third (33%) will give money. Cash continues to be the preferred gift to receive for 55% of couples, up from 52% in 2013, according to American Express Company.

Wedding party attendants will spend even more, shelling out $618 on average, up 64% since 2012. For bridesmaids, 78% will purchase a new dress, though nearly three quarters (74%) say they won’t wear it again. Instead, nearly half (49%) will opt to give the dress to a second hand store or give away to a friend while just over one in five bridesmaids will allow the dress to take up space in their closets (23%).

Wedding guests have high expectations for this year’s celebrations, agreeing that delicious food is the most important component to a great wedding (70%). This is an increasing trend over the last three years (67% in 2013, 62% in 2012), according to American Express Company.

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28 April, 2014 | FINCHANNEL.COM

Be energy efficient with ProCredit Bank!

The FINANCIAL

By MARIAM PAPIDZE

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roCredit Bank Georgia is continuing its efforts to establish a sustainable approach to energy efficiency and the environment.

Within this framework, the Bank has implemented inhouse energy and resource efficiency measures, which apply to both the technology used in the institution and the behaviour of staff.

“We pay very close attention to the environmental impact of our activities and make every effort to minimize this impact. In addition, we are actively engaged in various environmental protection measures,” Ioseb Rostomashvili, Head of the Environmental Management Unit, told The FINANCIAL. The environmental management system used by ProCredit banks is designed especially for financial institutions within the ProCredit group and is based on three core principles.

Furthermore, ProCredit is the only bank in Georgia that has an Environmental Management Unit, which is reflection of the bank’s dedication to environmental and social responsibility.

This unit is responsible for coordinating the activities related to the three pillars and for ensuring the proper implementation of the bank’s environmental policy. The Environmental Management Unit plays an important role in raising the environmental awareness of staff, clients and the general public. The responsibility of the unit covers not only the development and implementation of the bank’s internal Environmental Management System, but also sets standards for the disbursement of “eco loans” and is involved in the financing and support of projects in energy efficiency.

“ProCredit Bank is putting in place an approach to better understand and improve the sustainability of its own energy use and environmental impact.

The new head office, for example, was built using environmentally-friendly and energy-efficient materials, such as special low-emissivity glass, Rockwool insulation, etc. The building is designed to make maximum use of available daylight, thereby reducing energy consumption, and all of the materials used in construction meet EU quality standards. One of the most important tools for managing energy efficiency is the BMS (Building Management System), which regulates the heating, cooling, ventilation, and lighting systems in the building. Environmental issues are an essential component of the training provided to ProCredit Bank staff at the local, regional and international level,”

IOSEB ROSTOMASHVILI, Head of the Environmental Management Unit

Rostomashvili said.

The Bank has implemented an environmental management system based on continuous assessment of the loan portfolio according to environmental criteria, an in-depth analysis of all economic activities which potentially involve environmental risks, and the rejection of loan applications from enterprises engaged in activities which are deemed environmentally hazardous and appear on our institution’s exclusion list. By incorporating environmental issues into the loan approval process, ProCredit Bank is also able to raise its clients’ overall level of environmental awareness.

ProCredit Bank aims to promote economic development that is as environmentally sustainable as possible. In 2012 the bank introduced a green finance programme consisting of energy efficiency loans for private individuals as well as for businesses. Within this framework, ProCredit Bank offers its clients financial services for investments in energy efficiency (EE), renewable energies (RE) and other environmentallyfriendly “green” (GR) projects. The aim of these activities is to decrease the negative impact of our clients’ business activities on the environment and to use its green finance services and approach to increase public awareness and understanding with regard to environmental protection. This initiative also focuses on building relationships with suppliers of environmentally-friendly equipment and services and on encouraging them to offer products which bear energy efficiency labels.

“Since introducing this new approach, ProCredit Bank has been actively cooperating with suppliers and has set up special information stands at their businesses, which provide informational materials about energy efficiency for the public. ECO loans provide support for many different business sectors, such as agriculture and production, in which the introduction of energyefficient equipment could not only improve efficiency, but also increase the quality of production, thus decreasing the negative impact on environment.

ECO loans can be used by private clients to increase the comfort of their homes and at the same time reduce their utility bills,” said Rostomashvili.

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The Mystery of the Russian Economy Continued from p. 2

Yet, some argue the “Dutch disease” may not be Russia’s most pressing problem.

Recent economic literature and reports on this subject, such as the paper “Russian Output Collapse and Recovery: Evidence from the PostSoviet Transition” by Eteri Kvintradze and “Prosperity in depth: Russia. Caught in the Bear Trap” by Clifford G. Gaddy and Barry W. Ickes, suggest that the roots of the mystery of Russian economy go far back into the Soviet days. Russia’s story is a classic “resource curse” story. The case of the country, where economic inefficiencies are stemming from the overwhelming dependence on natural resources, with consequences more far-reaching than the Dutch disease.

THE SOVIET ECONOMIC LEGACY Inefficiency. The Soviet Union tried to develop a fully fledged industrial system largely or completely independent from the West. This independence, however, came at a price. Gaddy and Ickes

claim that the first indicator of system’s inefficiency was a totally inappropriate allocation of factors. In order not to leave any piece of land without use, the Soviet central planners built whole cities, with factories and all the necessary infrastructure, in remote and often extremely cold locations. To compare, in Canada and in Alaska, where climates are similar to Russia’s Far East, the population density in severely cold areas is much lower. The main problem with such allocation was the cost of transporting products and inputs between the factories. This was one of the artificially created extra burdens for the economic system of the Soviet Union – a “bear trap” that continued to affect negatively the development of modern economic system in Russia.

Another ‘bear trap’ was the Soviet price system. In the absence of market-based price mechanism, the economic exchange was built around the industrial networking among the inter-dependent enterprises. The value of the final goods produced was very often lower than the cost of production implied by the free market economy. When the revenues from production were negative, the state kept

FINANCIAL

the enterprises afloat by subsidizing them. The sizeable resource rents (profits from sales of natural resources) were used to support the inefficient industries.

Rent management system.

The system of distributing the resource rents did not function in terms of direct subsidies – i.e. not taken directly from the revenues of profitable sectors. The system, as Eteri Kvintradze explains, was much more opaque with the elements of non-monetary inter-enterprise transactions (NMTs). Under NMTs firms would sell oil and gas as inputs to enterprises at below the market price; they would transfer extra payments for certain orders, or deliver services to the inefficient enterprises through intermediaries.

Clearly, the main problem of the Soviet economy was the dependence on the resource transfer to inefficient enterprises, and the consequent “rent addiction” or high dependence of the economy on the profitability of the natural resource sector.

Rent addiction. Indeed, the fluctuations in the resource rent value very much affected the development and the sustainability of resource dependent industrial system in the

Soviet Union. A few crises during the 1970-1990s were related to the decline of world oil/gas prices and the gradual decline of the resource rents.

The recent (pre-transition period) decline of resource rents started in the 1980 and culminated eventually in the collapse of the Soviet Union in 1989.

The collapse clearly showed that the planned economy with such inefficient rent management system was not viable. After the dissolution of the USSR, Russia started the process of transition towards the market-based economy.

How successful were these efforts? Has Russia been close to developing a modern knowledge and innovationbased economic system, or is it still laboring under the burden of the Soviet economic legacy? Find out in our follow-up article next week.

Increasing Daily Coffee Consumption May Reduce Type 2 Diabetes Risk The FINANCIAL

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eople who increased the amount of coffee they drank each day by more than one cup over a four-year period had a 11% lower risk for type 2 diabetes than those who made no changes to their coffee consumption, according to a new study led by Harvard School of Public Health (HSPH) researchers. In addition, the study found that those who decreased their coffee consumption by more than a cup per day increased their type 2 diabetes risk by 17%.

“Our findings confirm those of previous studies that showed that higher coffee consumption was associated with lower type 2 diabetes risk,” said Shilpa Bhupathiraju, lead author and research fellow in the Department of Nutrition at HSPH. “Most importantly, they provide new evidence that changes in coffee consumption habit can affect type 2 diabetes risk in a relatively short period of time,” Bhupathiraju added.

The researchers analyzed data on caffeinated and decaffeinated coffee, and caffeinated tea consumption from 48,464 women in the Brigham and Women’s Hospital-based Nurses’ Health Study (19862006), 47,510 women in Nurses’ Health Study II (19912007), and 27,759 men in the Health Professionals Follow-

up Study (1986-2006). Participants’ diets were evaluated every four years with a questionnaire, and those who selfreported type 2 diabetes filled out additional questionnaires.

A total of 7,269 cases of type 2 diabetes were documented, according to the President and Fellows of Harvard College.

Results showed that participants who increased their coffee consumption by more than one cup per day (median change=1.69 cups/day) over a four-year period had a 11% lower risk of type 2 diabetes in the subsequent four years compared to those who made no changes in consumption.

(A cup of coffee was defined as eight ounces, black, or with a small amount of milk and/ or sugar.) Those who lowered their daily coffee consumption by more than one cup (median change=2 cups/day) had a 17% higher risk for diabetes.

Changes in decaffeinated coffee consumption and caffeinated tea consumption were not associated with changes in risk for type 2 diabetes.

“These findings further demonstrate that, for most people, coffee may have health benefits,” said Frank Hu, senior author and professor of nutrition and epidemiology at HSPH. “But coffee is only one of many factors that influence diabetes risk. More importantly, individuals should watch their weight and be physically active,” he added.

Georgia’s Population Size: Neighbors take a Guess MERAB PACHULIA GORBI

Chart 1. Question asked to respondents: Can you give me your best guess - how many people, in millions, live in Georgia right now?

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n this column, we discuss a key issue that is vital to any country in the world – population size. One the most tried and true tools for accurately measuring population size, is the census. Mentioned as far back as the Bible, censuses were implemented in empires from ancient Egypt to China, with Georgia no exeception. If we focus just on the Soviet experience, 6 censuses were conducted (in 1926, 1939, 1959, 1970, 1979 and 1989).

Actually there was one more, administered in 1937, but it was scrapped after revealing results that did not seem to fit in with the official reality propagated by the country’s Marxist regime. The population was a staggering 8-10 million smaller than previously declared. Also, on the behest of Stalin, a question about religion was added that had devastating answers - 50% of the Soviet Union’s population in large cities and 70% of population in rural areas admitted to believing in God. Such a politically unacceptable outcome resulted in the entire top management of the census being executed and lower level managers sent to the Gulags before a more “appropriate” census was held in 1939.

The most recent census in Georgia was conducted in 2002 but from the very beginning it was clear

Source: January 2014, GORBI 5 country public opinion survey.

that the data was going to be of very poor and of questionable quality. Immediately after the fieldwork was completed, GORBI asked a representative sample of the adult population if they had been visited by representatives of Census Department (officially known as the National Statistics Office of Georgia). Around 17% could not recall such a visit! While there is always the reality that some respondents might not remember such visits, the figure was still unacceptably high. I shared this information to my contacts at the Census Department and they all seemed unamused. However, this is a local issue and until the next census is conducted, Georgians will officially remain numbered as 4.4 million. Hopefully the upcoming census – planned for 2015 - will shed some light on the real figures

so we can learn how many citizens are actually living in this country.

Another interesting point worth discussing is the major gap between existing census data and voter’s lists. Total figures of adult population from these two official sources differ by as much as 8% or more. As a result, since the 1989 census, and despite numerous government efforts over the years to ascertain the number of eligible voters, both the true size of voters and the number of inhabitants in Georgia remain heavily disputed.

This also has serious implications when it comes to weighting of survey data to adjust demographic variables to census statistics. We pollsters have no option but to use official data for these purposes and the irony is that the survey data in many respects is more accurate (depending on sampling procedures

and sample size) compared to what the official data states. Fortunately, sampling frames for surveys are based on probability theory and like gravity, it never ceases to fail in every single country regardless of the nature of their political system.

GORBI was the only organization to have correctly predicted the outcome of the 2013 presidential elections, including the placement and percentages of all candidates who gained more than 1% of votes (we disappointed some experts who expected a second round). Of course this was not just us getting lucky; there were two reasons for this: elections were competitive and, rating wise, the top three candidates were in three different weight categories.

In most instances, when people asked to estimate anything that is already known and is well

documented, pollsters later assess the public’s knowledge and draw conclusions if/why inconsistencies occurred. This is not true for our case and I can’t tell exactly how close the answers compare to the true size of the Georgian population.

Unfortunately however, we do not exceed the oft cited 5 million mark, nothing to say about the almost 11 million mentioned by Ukrainians.

It is likely that only in 2015 when the new census data is available, will we most be closer to the average Georgian estimates of 3.71 million, compared to the 4.62 million that Azerbaijanis guessed are living in the country.

As a regional hub for partner organizations and international clients, since 2003, GORBI is the only Georgian member of the Gallup International research network to have over two decades of experience in survey research in post-Soviet Union countries, as well as Mongolia and Iraq.

All 5 surveys were conducted on a national representative sample of 1,000 respondents aged 15 or older in January 2014; data retains a 3% margin of error, with confidence at 95%. This data was provided exclusively to The FINANCIAL. Please do not visit our site (www.gorbi.com); it is under construction!

CMYK

FINANCIAL HEADLINE NEWS & ANALYSIS FINCHANNEL.COM | 28 April, 2014

Tbilisi to Go Green with a Smaller Budget in 2014

green business Georgian Plastic Card Market Valued at More Than GEL 800 Mln The FINANCIAL

By MADONA GASANOVA

The FINANCIAL

I

By MARIAM PAPIDZE

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total amount of GEL 15 million will be spent on renovating parks and squares, planting trees and greening Tbilisi this year by the Ecology and Greenery Department of Tbilisi City Hall. This year’s budget is slightly decreased compared to in 2013 (GEL 17 million) and increased in comparison to in the year 2012 (GEL 12 million). This year, the Ecology and Greenery Department of Tbilisi City Hall is not going to start implementing any large scale project because of the limited budget, according to Giorgi Korkashvili, Director of the Department.

“Before the budget was approved, we designed a strategy for greening Tbilisi in 2014 which needed GEL 18 million to implement. But Tbilisi City Hall was not allowed to approve the GEL 18 million budget and accordingly, several projects could not be implemented this year. For example, the reconstruction of the Red Garden and the Veteran’s Garden as well as the greening of the Opera Square were all planned. Out of them, only the Opera Square will be rehabilitated. However, we will still design projects for the other two gardens as well.

We have already announced a competition for these projects. As a result the projects will be designed and it will be up to the new mayor whether or not to implement them,” said Korkashvili.

Planting 20,000 plants in the centre of Tbilisi and its surrounding areas, renovating Vake Park and Bukia Garden, as well as planting windbreakers, are the activities the budget’s money was spent on in 2013, according to the Ecology and Greenery Department of Tbilisi City Hall. Some of the projects that were started in 2013 will be finished in 2014.

“We started the rehabilitation of Vake Park in 2013, which was the most important project of that year. The rehabilitation process will be completed at the end of May, 2014. In addition, the Ecology and Greenery Department renovated Bukia Garden. This garden was in a deplorable condition and really needed our attention. Georgian architects designed a very nice project for Bukia Garden and it was renovated according to this project. The total amount that was spent on the Bukia Garden and Vake Park renovations was GEL 3.5 million,” said Korkashvili.

About 10 thousand plants have been planted in Didi Digomi to create a windbreaker.

“This is a kind of plantation usually made up of one or

7

GIORGI KORKASHVILI, Ecology and Greenery Department of Tbilisi City Hall

more rows of trees planted in such a manner as to provide shelter from the wind.

The same windbreaker plants are planted in the Varketili district and on the new highway which connects Vake and Saburtalo to each other. We have already started greening Tbilisi and planting very beautiful flowers in different areas of the city. The Ecology and Greenery Department also took care of the forests which are in the surrounding areas,” he said.

As the online mapping of Tbilisi is an ongoing project, it has still not been properly calculated what percentage of the capital’s territory is actually green. But in 2012, there was in total 270,375 sq.m of green area in the capital, according to data of the Ecology and Greenery Department of Tbilisi City Hall. The online mapping of Tbilisi will be finished by the end of 2014 and as a result Tbilisi’s green territories will become visible, according to Korkashvili. He believes that there are now considerably more green territories in Tbilisi than there were in 2012.

“Today society demands a greener Tbilisi. Whereas years ago no one cared about the environment in which they lived, now it is the opposite. However, unfortunately people still do not know how to take care of their city properly it appears. People think that everything should be done by Tbilisi City Hall and they do not feel responsibility towards taking care of the city,” said Korkashvili.

“A lot of money is being spent on restoring newlybuilt infrastructure in newly rehabilitated parks or squares. For example, many people vandalise and destroy benches or rubbish bins. Our department built a basketball court in Vake Park, which was then damaged before it had even opened! Unfortunately we often face such problems.

People’s awareness should be increased and they should feel

more responsible about looking after their city,” he said.

“I understand that to take care of the environment it is important to have good economic conditions in the country. When we mention examples of different beautiful and green cities throughout the world, we should consider that all of them are economically strong cities. But at least not destroying what you already have is a task that is very easy and does not require any additional finances,” he added.

The local self-government election will soon be held in Georgia. The new councils of the local government, Sakrebulo and the Mayor of Tbilisi will be elected on 15 June, 2014. From that time a new team will take care of Tbilisi.

The Ecology and Greenery Department of Tbilisi City Hall has renovated Mziuri, which was one of the most expensive projects as the park covers a very large area, 40 hectares in total. The rehabilitation of Mziuri Park took GEL 3 million from the budget, according to Korkashvili.

Another significant project was the renovation of the Botanical Gardens. There were elementary problems to be solved like building benches and providing the park with public conveniences. Finally, the third most important project was the renovation of Rike Park and European Square, says Korkashvili. “It is a very attractive park for visitors because of its location. In general, Mziuri is the park most visited by Tbilisians as well as tourists,” he said.

n total 5,307,015 debit cards were issued in Georgia as of 1 March, 2014, up from 4,246,173 from the same period of last year. The number of debit cards increased by 20% as of 1 March, 2014, in comparison with the same period of last year. The number is 33.3% more than it was in 2012. The value of transactions reached GEL 814,379,000, up from GEL 652,987,000 or 20% more from March 2013.

The total value of transactions amounted to GEL 814,379,000 as of March 2014. The major share, or 81.6%, was withdrawn from ATMs. The remaining 18.3% was spent via POS-terminals and imprinters. Customers did 0.1 percent more of their shopping with card payments in 2014 than in the previous year.

The number of transactions via ATM reached 3,760,014 units as of March 2014, up from 3,055,868 units as of March 2013. 3,391,786 is the number of transactions made through POS terminals in 2014, up from 2,146,731 from the previous year.

Transactions via the internet have decreased slightly in 2014. The total value of transactions was GEL 33,518,000 down from GEL 33,632,000 as of 1 March, 2013.

A growth of almost 24% was shown in the issuing of credit cards as of March 2014. 1,457,118 units of credit cards were issued in the first two months of 2014, up from 1,110,205 from last year’s data.

Limited access to POSterminals is the main reason

why over 70% of respondents questioned by The FINANCIAL prefer to carry cash.

During the last week over 400 cardholders were questioned to find out the main trends of the cashless society.

Card payment is available only at huge stores and while corner shops are dominating on the market, there is no alternative for carrying cash.

86% of respondents welcome cashless economy as it brings them added safety.

In the event of robbery it is easier to block a card and feel secure. 56% tend to choose a store which offers cashless payment. The advantage can be useful for store owners in terms of attracting more customers, or even so as not to lose them.

The share of cash in Georgia’s GDP is currently at around 8.98%.

“The Georgian card payment market is characterized by a high rate of introducing innovative products. Alongside commercial banks, the Government has also played a big role in the development of card payments. Namely, launching pensions and all the social benefits started via banking channels; public service employee salaries are bound to their personal bank accounts; also, in a number of schools cash payment has become limited,” said Giorgi Melashvili, Executive Director at National Bank of Georgia.

“As the statistics show, cardholders are using their cards more and more in sales and service facilities. Although there is still a limited amount of data on this, the withdrawal of cash from ATM transactions in respect to non-cash payments by credit cards is greater, but the trend

of the latter has been steadily increasing in recent years,” said Melashvili.

The number of ATMs in Georgia is 2,077; 96 units more than it was last year.

Contrary to ATMs, the number of POS-terminals has increased by 3,070 units during a one year interval. There are 17,050 POS-terminals in Georgia, up from the 13,980 of the previous year’s figures.

In Melashvili’s words, Georgians are increasingly using electronic payments: payment cards, electronic money, internet banking or mobile banking. Accordingly, NBG is interested in making them more safe, comfortable to use and secure. “In this regard, we are working on the relevant rules of consumer protection and electronic payment instruments,” he said.

In Melashvili’s words, the main advantages of non-cash are: security, as it reduces the risk of carrying cash; convenience - unlike cash it is easy to carry, secure while travelling or is not required to carry at all; time-saving - you can order goods and services over the internet from your very home; you have operational control of account transactions via sms, online, mobile banking and other remote sources; also, you are able to participate in various promos and discounts.”

CMYK

8

HEADLINE NEWS & ANALYSIS

green business

28 April, 2014 | FINCHANNEL.COM

About GEL 40,000 Spent Annually on Keeping Tbilisi Zoo Green The FINANCIAL

By MARIAM PAPIDZE

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uilding new openair, caged enclosures for the lions, jaguars and penguins are among the up-coming plans of Tbilisi Zoo. A new primatorium will also be built. Tbilisi Zoo is waiting for a consignment of new animals to arrive, out of which the monkeys are already here. In addition, several activities are planned for making Tbilisi Zoo greener, for which about GEL 40 thousand is spent every year. This time Tbilisi Zoo’s administration is inviting all the citizens of Tbilisi to take part in keeping the Zoo green by building a natural, living fence along the edge of the highway that borders one side of the Zoo. “The Zoo and newly-built highway are currently separated by a low iron grid fence.

Instead of this, we would so like to have a natural, green fence,” said Zurab Gurielidze, Director of Tbilisi Zoo. “Not only we, but our society also, were concerned about the amount of noise and dust which the Zoo animals had to live alongside. Such great concern from the public in regard to this issue made us think that there would surely be plenty of volunteers who would like to help us build a living fence. Unfortunately though, we discovered that our society appears to be more interested in criticising than actually supporting us as few people have actively signed up to the idea. To ‘green’ the 400 meter fence, 1,200 ‘thuja’ plants are required. Thuja is an excellent option for a natural border and living fence.

Three plants should be planted per every meter of territory so as to have a tight and solid living fence. One thuja plant costs GEL 7. So far, only 70 plants have been brought in for planting at the Zoo. Our Facebook page has 17 thousand friends. If each ‘friend’ were to bring us a plant, we would already have 17 thousand plants!” he added.

The idea of this campaign was to involve more people in the process of making the Zoo greener. “Tbilisi Zoo is not a private space, it is public and was created for people to enjoy. It is also a park where people can come and enjoy the only green area in the centre of Tbilisi which has maintained its historical shape. I therefore think that people should also feel responsible for the Zoo. It should be a pleasure for anyone to plant even just one plant and to know that they have contributed to caring for one of the capital’s most distinguished

Photo by Vladimer Shioshvili

areas. After that, our gardening service will take care of the plants’ development,” said Gurielidze.

In general, almost the whole territory of the Zoo is covered by green vegetation.

People can see green areas even in the open-air enclosures. “This requires a great amount of attention and care in terms of learning how to choose the right plant life and vegetation for the different areas in our zoo. For example, once we saw that elephants destroyed plants, and that tigers dug up bamboo trees, we started thinking about what kind of vegetation should be planted in each of the specific areas, especially in the openair enclosures. The most problematic and difficult thing is actually making the open-air cages greener. There are several green islands in the Zoo,” he said.

There was an idea to build a new Zoo in the territory of Tbilisi Sea, as there is not enough space for the animals in Tbilisi Zoo. It would be a different type of zoo, one which would keep animals in larger, outdoor enclosures, confining them with moats and fences, rather than in cages. The new zoo would allow visitors to drive through the animals and come in close proximity to them. But this idea is almost impossible to be implemented as it costs too much, according to Gurielidze.

In that zoo there will be located only those animals which are currently facing the risk of dying out.

“We have already started activities in that territory.

But the Zoo will not be moved from the capital’s centre to the Tbilisi Sea area; the reason being that this project

FINANCIAL

is extremely expensive and almost impossible to implement. It would cost at least EUR 100 million to move the Zoo from one place to another. Because of this problem, we decided to come up with another idea, like to bring only those animals to Tbilisi Sea Zoo, which are dying out or have various problems.

That Zoo will be responsible for ensuring the reproduction of the animals so as to boost their numbers. We will try to breed Caucasian Shepherds, Asian ounces (snow leopards) and goats, and build a bears’ shelter. About 50 bears currently live in restaurants in the country or in other places with people, which is not right. Less attractive animals will be taken from the old zoo to the new one because of the problem of space. But again, for implementing this idea it is necessary to have enough finances. Unfortunately, we are still waiting for finding the source of financing, ” said Gurielidze.

The most active period for visitors starts from April and lasts until winter. People do not like to visit the Zoo in bad weather or when it is cold.

Over the course of the year about 600 thousand people visit Tbilisi Zoo. The ticket price for children under 13 is GEL 1 and for all others - GEL 2. I think this must make it one of the cheapest zoos in the world!

“The most popular animals at our zoo are the elephants, especially when they are playing. People like watching the big beasts - the lions and tigers - as well as the monkeys.

Also, newborn animals are very popular with visitors. If a zoo has many newborn animals it means that it is providing good conditions for its

animals. Several years ago the reproduction level was very low. The elephant was the first animal in the Zoo to give birth to a baby in actual fact.

White tigers, lions and zebras were all born last year. The number of newborn animals is increasing gradually. We are building bigger cages than there were before and we have improved the nutrition of the animals,” said Gurielidze.

Tbilisi Zoo also offers visitors the chance to enjoy funfair-like attractions. Those attractions which were installed too near to the animals have been removed, as they were disturbing the animals and having a negative impact on their wellbeing. There will now be two islands specifically allocated for the attractions - one at the entrance of the Zoo and the other - at the end. The attractions do not belong to the Zoo, but to a private company. “In my opinion there should be no attractions at the Zoo at all as it is a place where visitors should come to see animals and get information about them rather than to enjoy attractions. For this, there are other parks in Tbilisi. However, for the time being the attractions will remain at the Zoo,” he said.

There are about 300 animal species in Tbilisi Zoo, including white rhinoceroses, lions and tigers.

Minister: “Fines for environmental damage amounted to GEL 6,748,368” Continued on p. 3

I must emphasize that penalties and filling the budget with fines is not our goal. Prevention is our primary goal.

In this regard we are carrying out a number of measures.

Q. Would you say that citizens violating laws on the environment is due to there being an incorrect attitude in the country, as protecting the environment is not a large part of people’s everyday concerns?

A. Changing the attitude of citizens toward the environment is the longest and most difficult process to carry out, as the experience of various countries has shown. We just have to move from a consumer-oriented attitude towards an attitude of care. Each person must realize their role in this. Unfortunately, the level of environmental awareness is low. Our Ministry is actively conducting educational activities. Such information campaigns should be delivered more actively. Activities enhancing environmental awareness should be implemented with the relevant parties from the earliest stages at kindergartens, schools and universities. Electronic as well as printed media, NGOs, together with the Ministry, can play an important role in enhancing environmental awareness.

Q. Environment protection is more prioritized for developed countries. Do you think that building an eco-friendly society is less achievable until the economic situation improves in Georgia?

A. The practice of developed countries shows that a country’s long-term economic development is impossible without meeting environmental standards. It is important to avoid the negative consequences of a degraded environment. This will help to avoid state expenses in the future that will be necessary to restore a degraded environment.

If we do not adhere to environmental standards today and pollute the surface waters, damage topsoil, or randomly deforest nature, in the future the state will have to pay a much greater cost for sewage treatment, restoring soil or combating landslides.

Therefore, an eco-friendly environment should be conducted in parallel with the country’s economic development.

Q. Many new and existing city parks and squares have been opened and renovated in Georgia recently; however, there is still a lack of green spaces in Tbilisi.

What is the number of trees that you plan to plant this year?

A. Under the initiative of the Prime Minister’s “Green Future”, planting is underway all over Georgia. Planting 500,000 saplings all over the country is planned for the end of the year. However, it should be noted that it is very important to then take care of these plants for several years.

We are results-oriented.

Accordingly, plants have their own “caretakers” that have the responsibility of looking after them in the future. We are monitoring the

whole process, providing recommendations, and this will continue in the future.

Q. How would you assess companies’ activities in terms of environmental protection?

A. In this regard, there has been a certain revival from the private sector, which is most welcomed. Representatives of companies have started to apply to us and offer various environmental events. The support of the private sector is very important. Implementing modern resource-saving technologies and standards in businesses is profitable not only for the environment but also for companies. Hopefully, the private sector will more and more actively realize this. In addition, the introduction of green and clean technologies significantly improves a company’s image, which is also important for them.

Q. You were planning to start developing a list of green companies to encourage environmentally responsible companies. Which steps did you take to develop ecofriendly companies in Georgia in 2013?

A. In 2013 our ministry announced the contest Georgian Green Business. 17 companies applied. On 22 April, Earth Day, an awards ceremony was held. We hope that this will encourage a broader range of businesses, and enhance motivation and competition between companies in terms of environmental awareness.

Being a ‘Green Company’ means being a company that cares about solving environmental problems. It operates energy efficiently, does not pollute the environment, air, water and generally cares about increasing environmental awareness.

The winner of the Georgian Green Business was the hotel Radisson Blu Iveria. It was evaluated by the following criteria: the most innovative, ambitious and effective initiative, aimed at the implementation of an environmental business practice.

Q. What are the main challenges for Georgian environmental protection in 2014?

A. It is very difficult to single out a particular challenge.

We are facing a number of important challenges. Improving the quality of the environment, sustainable use of natural resources, creating an equal level for competition, raising public awareness, guaranteeing the confidence and support of higher quality - are significant. The fight against poaching, prevention, detection and suppression of the illegal extraction of natural resources, pollution and strengthening the control of performing terms of licenses and permissions - remain the main direction of our activity in terms of state supervision.

CMYK

FINANCIAL HEADLINE NEWS & ANALYSIS

9

green business

FINCHANNEL.COM | 28 April, 2014

m2 Issues Corporate Bonds The FINANCIAL

By MADONA GASANOVA

m2 has issued the first USD-denominated corporate bonds in Georgia. The initiative will enable the company to receive an alternative source of financing. At the same time bondholders will receive an almost two times higher interest rate than the standard deposit offered by commercial banks.

The maturity of the bonds is one year.

Nominal cost per bond is USD 1,000. Annual interest rate is 9.5%, taxable. Meanwhile, the annual interest rate on term deposits offered by the majority of commercial banks operating in Georgia is 5%.

The high level of trust in m2 makes the management of the company optimistic that this initiative will be successful and that other private companies will follow its lead.

“There could be various reasons behind the lack of popularity of bonds on the Georgian market.

Lack of knowledge and information could be two such reasons. However

GIORGI VAKHTANGISHVILI, CEO of JSC m2 Real Estate and IRAKLI BURDILADZE, Chairman of the Supervisory Board, m2

we are optimistic that the initiative of m2 will be successful and that subsequently, other companies will follow our example,” Irakli Burdiladze, Chairman of the Supervisory Board, m2, told The FINANCIAL.

“We are interested in growing and developing the bond market in Georgia. People will get used to diversifying their risks and companies will have more access to additional financial resources as a result,” said Burdiladze.

In Burdiladze’s words, “Bondholders will be able to resell the bonds on the secondary market.

Bank of Georgia was the first to start issuing corporate bonds in 2005.

Unfortunately, only two companies have followed this initiative,” he said.

Bondholders will be able to enjoy special discounts with projects managed by m2 Real Estate.

“We never start construction of any apartment house till the funding structure is completed. We attract financing first and start construction only after that. The demand for our apartments is high.

65% of apartments on Kazbegi Avenue is already sold. 77 apartments out of 221 have been realized on Nutsubidze. We will start constructing another apartment house on Tamarashvili in the summer of 2014,” said Burdiladze.

According to Burdiladze, m2 will soon announce a new project which involves an offer of two-room turn-key apartments with kitchen installed for USD 29,000.

m2 bonds are eligible for individuals who open a term deposit at Bank of Georgia or purchase a deposit certificate.

Consequently, they need to place one part of their money on a term deposit and the other part - on buying a bond.

Germans on Doing Business in Georgia The FINANCIAL

by MARIAM GOGIBERIDZE “When I first began it was not an easy time to start an agro business in Georgia, especially wine production,” Burkhard Schuchmann, of Schuchmann Wines, told The FINANCIAL. “This was in the shock period following the Russian Embargo in 2006, but in the long run the challenge became a positive for Georgian wine producers and the wine sector as a whole. The diversification of markets and penetration in the global wine world was for Georgia the greatest achievement and success, and which still continues today. We all, our competitors as well as actors in the Georgian wine sector, should come together in pursuing the same idea and compete with world wines, establish and promote the country’s identity and the exclusiveness of Georgian wine.

The Government has implemented a very interesting and effective project to support agro businesses and production.”

“Schuchmann Wines Georgia was the beneficiary of an agricultural cheap loan project and based on our example we have significantly increased our production. Also, what is very important and valuable is that Georgian wine producers have become very active on international markets towards global society, which will increase awareness of Georgian wine greatly.

2014 was a very successful year for the agriculture sector in Georgia, the ongoing trend

Photo by Glenn Kates

is promising and this is one of the most interesting developing sectors in the Georgian economy,” he said.

“In Georgia, wine has its

make Georgian wine unique and exclusive. This conclusion is based on the example of Schuchmann Wines - our wines are sold successfully in

“Schuchmann Wines are sold in France as well. This is a unique case, as there was never any history of exporting Georgian wines to France

“The issue of the moratorium regarding land is a real problem for investors operating in the country and even for any interested foreign parties. It stops development and investment activity. I do hope that the Government will act accordingly and change this legal uncertainty.” own philosophy, approach and method of production and wine aging. It is these golden recipes and rules which

Western and Eastern Europe, in the Baltic countries, China, Russia, Kazakhstan and Mongolia,” he said.

before; wine producers tend to avoid exporting wines to those countries which are big wine producers themselves

and exporters at the same time. That was quite a bold decision on our part therefore, but we can say that our wine has been quite liked by French consumers. This is an achievement not only for our company, but also for Georgia as a whole.”

“From the very day of our entrance into the market the procedures for starting a business were very easy to understand and what’s more, easy to meet,” Michael Hampel, General Director at HeidelbergCement, told The FINANCIAL. “HeidelbergCement always felt welcome in Georgia and the authorities showed the will to provide us with a business environment that helped us to start up successfully.”

HeidelbergCement’s activity in the Georgian cement market began in May 2006 following the acquisition of a 51% stake in the Georgian cement grinding plant Kartuli Cementi Ltd. This was HeidelbergCement’s first investment in the Caucasus region.

Later, the company’s share in Kartuli Cementi increased up to 100%. At the end of 2006 HeidelbergCement acquired a stake of 75% in SaqCementi, the largest cement producer in the Caucasus region. Later on, in 2008 the company started concrete production and established HeidelbergBeton Georgia. Today HeidelbergCement runs 4 cement and 9 concrete plants in Georgia and the investment process is continuing for its expansion and capacity increase.

“It is very easy doing busi-

ness in Georgia because the hurdles are really low in comparison to other countries.

To start up one needs a good lawyer who knows the legal framework. The rest is a question of days or a maximum of 2 weeks. We had no problems except for the fact that the cement plants that we bought were in a bad state and had to be renovated - but we had identified that before buying them - so it was simply a matter of following a pre-planned process of investing in newer technology,” he said.

“The main risk is that the cement market will not develop in a positive way as expected - but since 2008 the market volumes have followed an expected, upward trend - a very positive one with slow but constant development.

The well-needed infrastructural projects in Georgia like the highway from Tbilisi to Poti and Batumi together with future projects like the hydropower plants are fuel for the country’s development - and for our positive view on Georgia as well,” Hampel added.

“We export to Azerbaijan at the moment - but the Georgian market is gaining more and more momentum so that the percentage of exports is decreasing slightly. As we have a production capacity of 2.2 million tonnes a year and the total market in Georgia is around 1.6 million tonnes at the moment, we have enough cement to serve all current and future projects. Nevertheless we are continuing Continued on p. 14

CMYK

10

HEADLINE NEWS & ANALYSIS

FactCheck

FINANCIAL

28 April, 2014 | FINCHANNEL.COM

Irakli Gharibashvili: “I propose to make a constitutional change by including the definition that a family is the union of a man and a woman. Latvia did the same, as well as Croatia before entering the EU last year.”

Mari OTIASHVILI FactCheck

O

n 28 March 2014, the Prime Minister of Georgia, Irakli Gharibashvili, declared at the sitting of the Government of Georgia: “I propose to make a constitutional change by including the definition that a family [later on, representatives of the Georgian Dream coalition explained that the Prime Minister meant marriage instead of family] is the union of a man and a woman. Latvia did the same, as well as Croatia before entering the EU last year. Despite the current legislation of Georgia envisaging a family as being the union of a man and a woman, in order to avoid any misinterpretation, I believe a constitutional amendment is necessary. This legislation would neither establish any new rights for anyone nor privilege any part of society.

It ensures the possibility for all of us to benefit from the already existing right provided by the Georgian legislation.

This is the right of our nation to make this amendment to the Constitution.” (Source: civil.ge) FactCheck looked deeper into the statement of the Prime Minister to investigate its accuracy.

Latvia joined the European Union on 1 May 2013, while Croatia did the same on 1 July 2013.

Before 2005, Article 110 of the Constitution of Latvia read as follows: “The state should protect and support marriage, family, the rights of parents and the rights of a child.” On 15 September 2005, the ruling party of Latvia proposed the constitutional amendment that would create the constitutional grounds for avoiding same-sex marriages in the future. The proposition was supported by two-thirds of the members of the Parliament of Latvia and Article 110 of the Constitution was adapted into the following: “The State shall protect and support marriage – a union between a man and a woman, family, the rights of parents and the rights of a child…”

Photo by Novayagazeta-ug.ru

As for Croatia, on 1 December 2013, Croatia held a referendum on which the voters decided to introduce amendments to the Constitution for redefining the definition of marriage more precisely. Before the aforementioned decision, Article 61 of the Constitution of Croatia proclaimed: “Marriage and legal relations in marriage, common-law marriage and families shall be regulated by law.” From January 2004, Article 61 of the Constitution of Croatia was formulated in the following wording: “Marriage is a union between a man and a woman.”

Rendering the aforementioned paragraph to the Constitution aimed at prohibiting same-sex marriages. The referendum on this subject was initiated by the Croatian Catholic Church and based upon the signatures of 700,000 citizens. The abovementioned initiative was supported by the radical rightwing forces. Of note is the fact that the initiative was a backlash against the proposition of the Government of Croatia to legalise same sex-marriages.

It is also of importance to mention that the leaders of the left-wing ruling socialist coalition, President, Ivo Josipović, and Prime Minister, Zoran Milanović, supported by human rights organisations and the majority of Croatian media representatives, were opposed to the referendum and the constitutional changes. The President of Croatia declared that marriage was already defined by the legislation of Croatia. The question posed at the referendum (regardless of the referendum results) contained

a discriminatory message; in addition, holding the referendum of this sort only meant the squandering of taxpayers’ resources. According to the statement of Prime Minister Milanović, the aforementioned referendum enabled the majority to deprive the minorities of their rights.

Croatia has had the Family Act since 2003. The provision of Article 5 of the Family Act lays down the legal definition of marriage. According to it, marriage is a life union of a woman and a man regulated by the law. As for the legislation of Georgia, based upon Article 3 of the Law of Georgia on Marriage and Regulating Post-Marital Relationship, a couple can consist of a woman and a man and the current law concerns only couples of the opposite sex.

Despite the resistance of the supreme officials, Croatia still held a referendum. In November 2013, 104 members of the Croatian Parliament, out of 151, supported the aforementioned referendum. To the question of the referendum: “Do you agree with the proposition that marriage is a union between a man and a woman?,” 65% of the population responded positively while 34% were opposed.

The aforementioned referendum and the constitutional amendments were followed by negative international response. As concerns the European Union, no official statement has been issued on the subject of the Croatian referendum. According to the declaration of the European Commission the definition of marriage is a national competence.

CONCLUSION Irakli Gharibashvili’s statement concerning the legislative changes in the definition of marriage introduced in Latvia and Croatia is correct. However, the Prime Minister wrongly asserts that Croatia made the aforementioned constitutional changes before becoming an EU member.

Croatia has introduced the constitutional amendments since January 2013 after seven months of EU membership.

Of particular note is the fact that the leaders of the ruling socialist coalition of Croatia, President, Ivo Josipović, and Prime Minister, Zoran Milanović, supported by human rights organisations and the majority of Croatian media representatives, were opposed to the referendum and the constitutional changes. Furthermore, the Government of Croatia even proposed the legitimisation of same-sex marriages.

FactCheck concludes that the statement of the Prime Minister of Georgia: “I propose to make a constitutional change by including the definition that a family is the union of a man and a woman. Latvia did the same, as well as Croatia before entering the EU last year,” is MOSTLY FALSE.

MOSTLY FALSE

The views expressed in this website are those of FactCheck.ge and do not reflect the views of The FINANCIAL or the supporting organisations

More Than 1 Million Georgians Abroad The FINANCIAL

By MARIAM GOGIBERIDZE “According to statistics on migration, more than one million citizens of Georgia are currently outside the country,” Adeline Braux, Researcher at the French Institute of Anatolian Studies (IFEA-Istanbul), in charge of the Caucasus branch (Baku), told The FINANCIAL. “In the year 2011 alone, citizens of Georgia passed the border with Turkey one million times. Circular migration to a large extent is independent from Georgia, but migrants will take advantage of this opportunity to go somewhere then come back, it allows them (especially women) not to be absent, from home, from children or from sick parents, for too long.”

“Firstly, from a purely demographic point of view, the largest outflow of the ‘90s strongly affected the size of the Georgian population,” Adeline Braux, Researcher at the French Institute of Anatolian Studies (IFEA-Istanbul), in charge of the Caucasus branch (Baku), told The FINANCIAL. “When more than one million of the population of Georgia is located abroad, this means that the country has lost nearly 20 percent of its overall population. For such a small country this is a very serious problem. It means that whole families have left, that a large segment of the working population has left, and so on. At the same time, in the postSoviet period of transition, remittances (through banks, or basically just from hand to hand) helped many families in Georgia not to live in poverty.”

“Most often, statistics are transmitted through international organizations such as the UN, International Organization for Migration, the World Bank, UNHCR etc. The fact is that these organizations rely on the statistics provided by national statistics organizations. This does not apply only to Georgia, but also to Azerbaijan and Armenia, to mention only the countries of the South Caucasus,” she said.

“All migration specialists in the region agree that there is an absence of true data in the area of migration. There are various reasons for this, for example up until now many people have been registered as being resident in their home country, when in reality they have left. Nevertheless, the statistics show that more than one million citizens of Georgia are outside the country. In the year 2011 alone, citizens of Georgia passed the border with Turkey one million

times. This does not mean that one million people have moved from Georgia to Turkey, but nevertheless, it says a lot about the frequency of these movements,” Adeline Braux added.

“Basically the migration situation is linked with the socioeconomic situation in Georgia. In the meantime, Georgia remains extremely difficult for many, with a lack of jobs, adequate healthcare and so on. The migration outflow is not as strong now as it was in the ‘90s. We must also realize that certain people to some degree move abroad because they think that, for example in Western Europe, everything will be easier and better. This is the so-called ‘desire for another place’, or ‘we are well, where we are not’,” she added.

“It is not quite accurate to say that ‘Georgia will become a country of circular migration’, circular migration is not signing a contract. This is a type of phenomena in the area of ​​migration. And by the way, for Georgia, it already exists.

But circular migration, however, is highly dependent on the policies in the field of migration. Turkey is again a very good example in relation to Georgia. For Georgian citizens it is very easy to get to Turkey, and it certainly gave a strong push to Georgian migration to this country, especially now that Russia is closed to Georgian migrants. However, changes have been made to Turkish legislation recently which mean that migrants from Georgia will not be able to come, stay, leave and come back again as was possible earlier. This will certainly affect the migration processes.

Circular migration to a large extent is independent from Georgia, but migrants will take advantage of this opportunity to go somewhere then come back which allows them (especially women) not to be absent, from home, from children or from sick parents, for too long,” she said.

“There are many positive and negative sides to migration for both countries, for the country where they migrate to and for the country from which they migrate,” Manana Ratiani, PHD in Geographical Sciences, expert-consultant at the National Center for Teacher Professional Development, told The FINANCIAL. “Perhaps first and foremost it should be noted that international migration is one way to eliminate inequality between countries, adding to more equal distribution of resources and opportunities. Migration is also a result of globalization, as well as a cause of speeding up globalization.”

“Countries where the number of migrant outflows is more than the inflows, face many problems. The most significant of which are unemployment, education and less of a chance of getting other social goods. This is what pushes the adult population to leave a country. Also, there may be a lack of democracy, or environmental degradation (migrants), as well as political conflicts. However, regardless of whatever kinds of reasons there may be, people are always looking for opportunities to improve their quality of life,” she said.

“Remittances can be considered positives. This is because of the fact that people send them to family members to improve their living conditions. As well as this, they help to reduce unemployment and competition in the workplace.

However, a lack of competition in the workplace is not always good, it is possible for it to create a problem for employers in terms of lack of choice. Also if a brain drain takes place, then it turns out that the country has spent resources on a person’s education that will benefit, and will be paying taxes to, another country, the one where they will be employed,” Ratiani added.

“As a result of migration there are also changes in the sex and age structures. A country with a great inflow of migrants will have a more working-age population. This working-age population diminishes from the country of which they migrate. There are also changes in the sex structure. Earlier when there was greater demand for industry sectors, heavy metallurgy for example, there was more demand for a male labour force.

However, nowadays when there is an increasing share of the service sector in the economy, there is increased migration of women,” she said.

“The problem of migration is very real nowadays worldwide, as it is changing natural processes, altering the picture of the population. It should also be noted that the main flow is directed from developing to developed countries, which is natural as everyone wants to improve their conditions. Frequently, developed countries often impose various barriers on entering a country in order to clamp down on the migration process. The most common form of barrier is a visa regime, a multitude of processes related to visa issuance indicate a country’s dependence on this Continued on p. 14

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FINCHANNEL.COM | 28 April, 2014

Irakli Gharibashvili: “Georgia tripled the volume of its export to Russia. However, today, the impact of the Russian embargo would not be as grave as it was in 2006. At that time, the Georgian market was exceedingly dependent upon Russia but since then, we have expanded into new markets. Over the past year, our export to the European market has grown by 65%.

This is an unprecedented indicator.”

Nutsa TOKHADZE FactCheck

O

n 7 March 2014 the news agency Pirveli published the following statement of the Prime Minister of Georgia, Irakli Gharibashvili: “Georgia tripled the volume of its export to Russia. In general, I believe that at this stage it is rather improbable for Russia to proclaim another unprovoked embargo on Georgia. Even if we

A

s can be gathered from Table 1, over the period of 2003 to 2006 Georgia’s export to Russia was characterised by a tendency of growth. In 2006 (following the embargo) the volume of export saw precisely a twofold decline as compared to 2005.

From 2006 to 2010 the export indices were decreasing whereas in the period spanning 2010 to 2013, the indicators reveal the trend of an increase.

As the Prime Minister’s assertion regarding the triple growth of export is rather vague (it is unclear against which year the PM is comparing the export indicator of 2013) we analysed several possible interpretations of the statement which logically proved to be most plausible. Comparing the volume of export registered in 2013 (preliminary data) to that of 2012 we observe that the volume of export grew 4.2-fold

T

TABLE 1. TRADE BETWEEN GEORGIA AND RUSSIA (USD THOUSAND)

allow the hypothetical possibility of such an occurrence, the impact today would not be as grave as it was in 2006. At that time, the Georgian market was exceedingly dependent upon Russia but since then, we have diversified the economy and expanded into new markets. Take Europe, for instance, where over the past year our export to the European market has grown by 65%. This is an unprecedented indicator.”

FactCheck inquired about the accuracy of the given statement and verified its accuracy. in 2013 which bolsters Irakli Gharibashvili’s claim about the tripling of the volume of export.

Source: National Statistics Office of Georgia – geostat.ge

In the case if we compare the indicator of 2013 to that of 2006 (the period of imposed embar-

go and a sharp decline in the volume of export), we observe that the volume of export saw

TABLE 2. GEORGIA’S EXTERNAL TRADE

Source: National Statistic Office of Georgia – geostat.ge

able 2 reveals that in 2005 Russia ranked first among the 93 countries where Georgia was exporting its goods, receiving 18% of the total volume of Georgia’s exports. In 2006 (after the proclamation of the embargo) Russia drops to the third place with 8% and its indicators continue decreasing throughout the following years. As for 2013 (in line with the preliminary data), Russia’s share in the exported goods of Georgia mounts again, reaching the fourth position amidst 111 countries, revealing a notable rise from the eleventh

position occupied in 2012. The comparison of indicators from 2005 and 2013 shows that in this specific case the difference between the first and fourth positions is not particularly big given the fact that the number of countries receiving Georgian exported goods is around 100.

However, it should be mentioned that Russia’s share in the total volume of goods exported from Georgia equalled 18% in 2005 but fell to 7% in 2013. This variation can be explained by the fact that the market was more diversified in 2013 and Georgia was exporting to a greater number of countries (to an additional

18 states) than in 2005. Taking into account the given circumstances (the number of countries receiving Georgia’s exported commodities, their ranking and share in the to-

he table above reveals that the share of Georgia’s export to EU countries in the total volume of Georgia’s exports was characterised

with a tendency of increase from 2003 to 2006. Throughout the period between 2006 and 2012 the indices revealed certain fluctuations but, nevertheless, retained relatively high marks.

In 2013, Georgia’s export to the European market surged by 72.2% relative to 2012 (which is the highest indicator recorded over the course of the past years) while the share of Geor-

T

Photo by world.fedpress.ru

tal volume of export) it can be deduced that the Prime Minister’s assertion about the less negative impact of the Russian embargo is correct.

As for the volume of Geor-

approximately a threefold upturn which again confirms the number indicated by the Prime Minister. However, setting the indicator of 2013 against that of 2005 (the highest indicator of export to Russia prior to the introduction of the embargo), and this is considered by FactCheck as the most logical comparison, it becomes evident that the volume of export surged solely 1.2-fold in 2013. This rate of growth is much lower than the figure named by the Prime Minister but it is nevertheless to be noted that in 2013 (preliminary data) the export indicator reached the highest mark yet.

As for the volume of goods imported from Russia, it revealed a tendency of growth in the period from 2003 to 2008 whereas starting from 2008 (the aftermath of the Georgian-Russian war) up until 2011, the export indicators took a downturn. Beginning from 2011, the volume of import from Russia surges

again and this trend continues to this day (the volume of goods imported from Russia arrived at the highest indicator in 2013).

As concerns Georgia’s external trade balance with Russia, it has recurrently been expressed with a negative figure over the span of many years and this holds true to this very day as well.

Albeit in 2013 the volume of Georgia’s export to Russia achieved the topmost indicator hitherto registered, 2013 was also the year with the highest volume of imported goods from Russia. As a result, the indicator of the negative external trade balance reached one of the highest marks in 2013 (USD -399 million) over the span of the past years (the negative trade balance showed the highest indicator in 2007 totalling USD -529 million). Accordingly, the largest volume of export recorded in 2013 does not entail the most favourable external trade balance for Georgia.

gia’s imports from Russia, in 2005 Russia was in the lead of the 120 importing countries holding 15% of the total volume of imported products. Starting from 2007 Russia is slightly

falling behind but in 2013 strengthens its positions again and moves up from the sixth position to the fourth holding 8% of the Georgian imports amidst 122 importing countries.

TABLE 3. GEORGIA’S EXPORT TO EU COUNTRIES (USD THOUSAND)

Source: National Statistics Office of Georgia – geostat.ge

gia’s export to EU countries in the entire volume of Georgian exports equals 20.9% (returning to the average indicator of the past years). Consequently, even though in 2013 the volume

of goods exported to EU countries grew by 72.2% (the figure is even higher than indicated by the Prime Minister – 65%), its share in the total volume of Georgia’s exported products

stands at the average indicator of the past years. Therefore, 72.2% growth of export to European countries does not entail the greatest advances in this regard.

CONCLUSION The Prime Minister’s statement regarding the tripling of exports is rather vague. The volume of Georgian export to Russia grew 4.2-fold in 2013 as compared to the indicator of 2012, 2.52-fold relative to 2006 and 1.2-fold relative to 2005.

Over the span of the period 2005-2013, the number of countries receiving exported goods increased by 18 and the share of goods exported to Russia fell from 18% down to 7%. Considering the number of countries to which Georgia is exporting, their share in the total volume of export and the ranking, today, Georgia is indeed less dependent upon Russia than was the case in 2006.

As for Georgian export to the European market, in 2013 its volume grew by 72.2% as compared to the previous year. This figure represents the highest indicator recorded over the course of the past years but in 2013 the share of exported goods in the pool of Georgia’s total exports – 20.9% equalled the calculated average indicator of the past years. Therefore, 72.2% growth of export to European countries does not imply the greatest advances in this regard.

Accordingly, we conclude that the Prime Minister’s statement: “Georgia tripled the volume of its export to Russia. In general, I believe that at this stage it is rather improbable for Russia to proclaim another unprovoked embargo on Georgia. Even if we allow the hypothetical possibility of such an occurrence, the impact today would not be as grave as it was in 2006. At that time, the Georgian market was exceedingly dependent upon Russia but since then, we have diversified the economy and expanded into new markets. Take Europe, for instance, where over the past year our export to the European market has grown by 65%. This is an unprecedented indicator,” is HALF TRUE.

HALF TRUE

The views expressed in this website are those of FactCheck.ge and do not reflect the views of The FINANCIAL or the supporting organisations

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Georgia Alliance for Safe Roads to Raise Awareness about Reducing Car Accidents The FINANCIAL

By MARIAM PAPIDZE

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pproximately 600 people were killed and 8,000 more injured on Georgia’s roads in 2013, according to the Ministry of Internal Affairs. To reduce road traffic accidents and improve road safety conditions in Georgia, Georgia Alliance for Safe Roads is starting activities to raise awareness in society within the framework of the UN Global Road Safety Week.

Street actions with the participation of students, the distribution of brochures and stickers, broadcast of a promotional video via TV channels and social media, and road safety seminars and workshops for pupils are the first activities which will soon start in Georgia, as a lack of awareness has been cited as the major problem causing so many car accidents in the country. The trend can only be reversed through the joint and deliberate efforts of the government, civil society and private sector.

“94 percent of the accidents in the world including in Georgia happen due to human factors, like speeding or drunk driving,” said Maya Kobalia, Executive Director of the Georgian Alliance for Safe Roads. “Death is not the only possible result of car accidents, but many people who survive them are left disabled or scarred. The solution to this terrible situation is to raise people’s awareness from very early ages. We have therefore started a new project with one of the non-governmental organizations of Estonia. The project aims to meet with youths and explain to them the dangers of not obeying the rules. Meetings with young people and with schoolchildren will be held in ten schools of Tbilisi, Rustavi, Kutaisi and Gori,” she added.

Road safety is already included in the national curriculum, according to Lia Gigauri, Deputy Minister of Education and Science of Georgia. “For fourth graders it is taught along with Civil Defence and for eleventh graders - it is an independent subject. We will pay more attention to educating schoolchildren about the importance of road safety,” she said.

“Georgia is signing an Association Agreement and DCFTA with the EU. Road safety is one of the areas in implementing EU regulations and directives,” said Pritt Turk, Ambassador of the Republic of Estonia. “In Estonia, we have applied many of these regulations, which might seem slightly annoying in one’s everyday life, but were vital to implement. By Esto-

CEOs See Need for Urgent Tax Reform The FINANCIAL

N nia trying to meet the regulations the number of accidents and number of deaths on the road decreased by half. This is a huge result. However, nothing has been changed by the regulations themselves as it is all about the attitude. It is about how people and society relate to this issue. For young people, especially in the schools, it is very important to give them information about how to drive properly and how to be a part of road traffic. When we invest more in the young generation, I think it is the best investment. If Estonia has something to share, we are extremely happy to do it for Georgia,” he added.

“Georgia partly implements the recommendations of the World Health Organization (WHO) and follows a road safety strategy,” said Zurab Utiashvili, Head of the Emergency Coordination and Regime Department at the Ministry of Health. “The upcoming projects include improvement of the infrastructure of the highways and road surface, upgrading public transport, as well as improving the equipment in ambulances. The changes have already been submitted to the law which limit car speed and alcohol levels in the blood. It is forbidden to talk on a mobile phone while driving now. Everyone must wear a helmet while riding a bicycle or motorcycle as well. Also, when taking children by car, it is obligatory to have a special ageappropriate child’s car seat for them. After introducing these changes to the legislation, Georgia got better results in the report which was conducted by the WHO in 2013. The number of car accidents had reduced 10 times in Georgia in 2013 compared to 2008. Also, the number of people injured decreased by 15 percent and the number of people that died - by 40 per-

cent. A total of 8,861 injured patients were registered in hospitals in 2012. 36 percent of them were due to car accidents. Out of the numbers of injured people, men made up the majority,” he added.

“Georgia has had the experience of considerable economic growth,” said Hans Horbach, Ambassador of the Netherlands. “If we compare the number of cars here to the situation in the early ‘90s, we will see a huge difference.

Traffic jams have increased as well. Georgia continues to experience a significant fatality rate in traffic, however.

At present the traffic fatality rate in Georgia stands at 15.8 per 1,000 inhabitants. If we compare it to the Netherlands, there it is 3.9. There is obvious willingness and commitment of policy and decision makers to improve the safety situation on the roads in this country. It is not only about introducing new policies or new structures, new regulations, it is also a matter of changing behaviour and raising awareness of all traffic participants and convincing them that it is important to respect the law and to respect each other. This is an individual task for everybody who is driving or walking on the streets of Tbilisi and throughout the whole country,” said Horbach.

“The Netherlands is a small country. Yet, we have almost 70 million inhabitants. The roads there are considered some of the safest in the world.

But it was not always like that.

Just over 30 years ago 3,200 Dutch citizens died each year on our roads, and about 25 percent were pedestrians. All cities were challenged to cope with the ever increasing numbers of cars and other means of transport. In response to this dilemma the Dutch developed and implemented a major national campaign over the last three decades called

sustainable safety. We started to better manage and plan our cities and our traffic routes.

As a result the number of traffic deaths was reduced dramatically. 650 people died in traffic accidents in 2012. It is a huge decrease, of more than 80 percent if we compare it to the early ‘70s,” Horbach said.

Increased numbers of cars in Georgia has led to worsening air pollution, according to Shalva Amirejibi, Deputy Minister of Environment Protection and Natural Resources of Georgia. Also, the low quality of transportation in Georgia leads to environmental problems in the country, he says.

“The main source of air pollution in Georgia is precisely transport emissions.

In the last decade the number of cars has doubled and there are 900,000 cars in Georgia today. 40 percent of cars are located in Tbilisi.

We have designed a promotional programme to reduce environmental pollution.

Within the framework of this programme the renewal of Georgia’s cars is planned, to optimize traffic flow management and the development of public transport,” said Amirejibi.

The Ministry of Regional Development and Infrastructure of Georgia allocates 60 percent of its budget to developing and modernizing roads in Georgia in accordance with European standards, according to Giorgi Amashukeli, the Deputy Minister.

early two-thirds of CEOs around the world say the international tax system is in urgent need of reform and 70% say the impact of tax on their company’s growth is among their top concerns, according to PricewaterhouseCoopers (PwC), a multinational professional services firm headquartered in London, United Kingdom.

Tax strategy and policies are best dealt with by the Board of Directors and should include consideration of such issues as impact on stakeholders, transparency, governance and controls and communications, found the paper. It also examines the data on the impact of rising taxes on business, CEO opinions on tax transparency and the prospects for international tax reform.

“CEOs have a difficult balancing act ahead. The increasing tax burden is a serious concern for many, and changing public attitudes to corporate taxation cannot be ignored. Tax policies, even if perfectly legal, can present a serious risk to corporate reputation,” said Rick Stamm, PwC Vice Chairman Global Tax. “PwC’s 2014 Global CEO survey clearly shows that CEOs recognise the risks associated with tax policy and are actively looking for ways to help stakeholders understand their total tax contribution to society,” he added.

The impact on society of corporate taxes far beyond the often controversial tax on corporate profits, the paper notes. Companies also pay employment and benefits taxes, property taxes, indirect taxes such as VAT and sales taxes, and many other direct and indirect taxes and tax costs. All contribute to the total tax picture in a jurisdiction the degree of confidence

companies have that tax issues will be handled fairly and openly.

For CEOs, tax reform is the single biggest issue that needs to be addressed; 65% said that the international tax system doesn’t meet the needs of multinationals. However, just 27% feel a consensus on tax reform can be reached among the G20 countries in the near future, according to PwC. As CEOs expand their operations at home and abroad, the tax burden is seen as a major barrier to growth; 70% of CEOs cite the impact of tax and its potential to affect growth as a concern, an increase from 62% last year.

CEOs are extremely aware of the need to rebuild the trust between business and stakeholders. 49% said that a lack of trust in business hampers their prospects for growth, an increase from 37% last year.

Many CEOs are emphasising the importance of promoting a culture of ethical behaviour in business decision-making; three-quarters agreed that it was important that their company was seen to be paying its ‘fair share’ of tax.

Overall, 63% of CEOs worldwide say that government tax policy and the competitiveness of local tax regimes are key factors in decisions about where to operate their business, according to PwC. CEOs have little confidence that their own government or the international community will succeed in making the tax reforms that they need. Just 21% of CEOs felt that their government had been effective in creating a more internationally competitive and efficient tax system.

“The reality is that tax is a cost as well as an obligation. A well thought out tax strategy balances business cost pressures, national fiscal needs and international tax norms in a sustainable way. It cannot be solely about a race to the minimum level of taxes,” said Stamm.

A Taxing Issue: Majorities of Americans Support Increasing Taxes on the Very Rich The FINANCIAL

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strong majority of U.S. adults (81%) across the political spectrum (77% Rep., 84% Dem., 81% Ind.) see tax system as a cause of economic

inequality in the United States - but that doesn’t mean everyone agrees on what’s wrong with it, according to Harris Interactive Inc. When asked whether taxes on different groups of AmeriContinued on p. 16

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Number of Travellers to Georgia Increased by 8% in 2014 The FINANCIAL

By MADONA GASANOVA

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eorgia hosted 1,006,267 international travellers during the first three months of 2014, up from 935,358 during the first quarter of 2013. The number has shown growth of 70,909 travellers, or 8%, this year. Turkey, Azerbaijan, Armenia, Russia and Ukraine complete the list of the top 5 countries from which Georgia hosted the largest number of travellers. Despite the political tensions, travellers from Ukraine and Russia have increased by 51% and 41% respectively during the first quarter of 2014, in comparison with the same period of 2013.

With 87.7%, land is the main means of transport for international travellers visiting Georgia. It is followed by air, making up 10.5%. The rest is occupied by railway (9,578) and sea - 7,285. Despite its small share, a quarterly comparison has shown the largest growth to be in air passengers. 18,468, or 21%, more passengers travelled to Georgia during the first three months of 2014, compared with the same period of last year. Travellers entering Georgia by land have increased by 7%, and 3% more have travelled by railway. The only reduction was recorded in passengers crossing the sea border. 20% fewer travellers came to Georgia by sea than during the same three months of 2013.

Georgia expects to have 18% growth of international travellers during the current year, in comparison with 2013, according to the Georgian National Tourism Administration (GNTA). Georgia hosted 5,392,303 international travellers in 2013. The results of the first quarter have already reflected this growth.

The number of international travellers in Georgia is expected to exceed 6 million during 2014. In 2013 the country had 26% growth of tourists and was named ‘star performer’ by the World Tourism Administration.

Out of the top 15 countries by arrivals the largest increase of visitors during the first three months of 2014 was

from Poland (147%), followed

by Iraq (69%), Ukraine (51%), Russia (41%), Armenia (30%) and Azerbaijan (28%). GNTA runs active campaigns on its target markets abroad: Germany, Azerbaijan, Austria, the Netherlands and Israel.

As a result of its promotional activities GNTA expects visitors from Ukraine to double.

Significant growth is expected from Poland, Azerbaijan and Armenia too.

A total of 9,887 Iranians travelled to Georgia in 2014, down from 15,683 from the figure of the first three months of 2013. With negative change of 5,796, or 37%, Iran is the leading country out of the top 15 by arrivals from which the number of travellers has decreased in 2014. It is followed

by Turkey, out of which 22% less citizens travelled to Georgia, the UK - 14%, Israel - 11% and the USA - 10%.

With 977,734 Europe is the top region by arrivals to Georgia. It is followed by East Asia and the Pacific from which 16,513 arrived to Georgia in 2014. 5,454 Americans visited Georgia during the current year. 5,264 were from the Middle East and the number of Africans reached just 993.

Okace Canyon is one of the main sightseeing areas of Georgia that will host its first visitors in June 2014. According to the Agency of Protected Areas, the visitors’ centre, hiking trails and public toilets are all currently still under construction.

A 1,200 meter hanging trail is being built along the Canyon. The Okace Canyon project is being financed from the state budget and the cost

FINANCIAL

is GEL 4,850 thousand. Entrance fees to the Canyon have not yet been set. The arrangement of Okace Canyon was announced by ex-President Mikheil Saakashvili back in August 2012. The complex will include: cafeteria, educational amphitheatre, ethnographic playground and recreation areas.

The Georgian National Tourism Administration plans to participate in 20 international tourism fairs and exhibitions. Participation in such exhibitions will contribute to the enhancement of Georgia’s awareness as a tourist destination. Also, the project aims to support the private sector involved in the tourism industry, and acquire valuable contacts for future cooperation.

Development of rural tourism in the suburbs of Tbilisi is one of the upcoming projects initiated by GNTA. The Association has planned the research of the agro tourism potential of the suburbs of the capital. In line with it a new product will be created. The main objective of the project is the creation of a new agro tourist product near Tbilisi.

Residents of Tbilisi are the primary target market for this product. It is the best option for planning holidays and weekends near Tbilisi. Residents living in local houses or hotels, who run their own smallholdings or farms, will host visitors. Guests will be offered various eco touristic activities and ecologically clean products. The project will contribute to the growth of travellers’ visits to the suburbs of Tbilisi. It will en-

courage the development of small family enterprises and the production of ecologically clean products. Local employment will increase as will residents’ incomes.

The average expenditure of foreign travellers to Georgia per visit amounts to GEL 626.

Russian tourists on average are the most generous visitors while Armenians, who are the majority in terms of total number of tourists in the country, spend the smallest average amount of money when staying in Georgia. Food and beverage, accommodation, shopping and entertainment are the main outgoings of visitors to the country.

Citizens of Russia are in first place in terms of amount of expenditure in Georgia, according to GNTA. Per trip to Georgia they spend on average about GEL 1,180. The subsequent places are held by visitors from Central and Eastern European countries.

Tourists from these countries spend GEL 943 on average.

Next comes Turkey - GEL 533, Azerbaijan - GEL 467, and Armenia - GEL 301, according to data from the Georgian National Tourism Administration. This data is from 2013.

Germans on Doing Business in Georgia Continued from p. 9

to invest in the plants and in new technology. We have started the projecting of a new cement line in Kaspi that will cost around GEL 200 million and that will further increase our cost leadership on the Georgian market. As the importers of cement from Turkey, Armenia, Iran and Azerbaijan are hard competitors we have to be careful when it comes to cost leadership,” Hampel said.

“Of course quality is a major factor when a company wants to export to the EU. The transport costs are a huge factor so products with a large weight and without the possibility to differentiate themselves from currently offered products will have problems.

The best are those products that are unique and have a certain quality that cannot be met by European competitors. Wine is a very good example of such a product. I do not speak of low quality wines but about the kinds of grapes that do not exist in Europe.

I recently had a white wine made of Kisi - it was extraordinarily good and so different from all the white wines that I have had before in my life,” he added.

“It’s straightforward and easy to start a business and to go through the paperwork in Georgia, our country does not pose any bureaucratic barriers in this regard,” Giorgi Mshvildadze, Commercial Director at Tegeta Motors, told The FINANCIAL. “To start your business, first of all you need to have a business idea, implement market research and of course have the necessary financial resources. The conditions for starting a business in Georgia are simple, both for local and foreign investors. There are no special privileges for Georgians, neither for foreigners; the conditions are equal and the same for everyone. Businessmen from neighbouring countries point out that doing business in Georgia is quite easy for them.”

Tegeta Motors is a holding that offers a full range of auto products and services to corporate and retail customers; the company, with 100% Georgian investment, is the official representative of a number of German world famous brands. Tegeta Motors has five daughter companies: “Tegeta Truck and Bus” LLC (official representative of “MAN Nutzfahrzeuge AG”), “Tegeta Construction Equip-

ment” LLC (JCB official representative), Tegeta Premium Vehicles (official representative of Porsche and Mazda), Transcaucasia Distribution Company (official representative of Shell Lubricants) and Toyota Centre Tegeta (official dealer of Toyota). Tegeta Motors also established a joint venture with Gebruder Weiss, Austrian forwarding and logistics company, and constructed a premium class logistics centre equipped with modern technologies.

“There are no risks related to business in Georgia. Once again, I would like to note that businessmen from Armenia, Azerbaijan and Turkey feel more comfortable here rather than in their own countries.

Due to the transparent business environment, no double accounting and no bribery and corruption, our country is becoming more and more attractive for investors. In countries with problematic bureaucracy and corruption local businesses feel more comfortable than foreign ones. In this regard Georgia is more loyal, in that it encourages investors,” he said.

“The important thing for large investors is to see the potential of the market. Having more than enough financial resources for investment, they look at the market and the perspective of market development. Georgia is a developing country with a growing market and large investors may see the prospective development of businesses not yet represented on our market, those that may prove to be in demand and necessary in the future. They may therefore establish businesses that will become profitable in 5-10 years, not immediately.

As for Tegeta Motors, the secret of our success lies in a constant focus on development, taking new challenges and pursuing new tasks, which is very well depicted in the driving principle of our company “never stop at the achieved”.

More Than 1 Million Georgians Abroad Continued from p. 10

process,” she added.

“There is no universal recipe to solve this problem. The individual countries themselves make the choice of what kind of immigration policy to establish, derived from the objective they have. Social, economic, political, demographic factors and trends should all be taken into consideration.

All countries, taking into account their own interests, can solve this problem. For ex-

ample, the United States - it has a strict visa regime, as well as large sums of money being spent on protecting the border with Mexico. Meanwhile, the Georgian border is open and there is no problem with coming here. By comparison, Singapore governs according to its will, for example, they have a demographic problem, the population is declining, but instead of letting anyone into the country they prefer to open the country only to graduates. Also they have complicated processes related to

adult outflow, in terms of setting up a family,” Ratiani said.

“Policy plays an important role in migration, because wars and conflicts have always been followed by forced migration. As well as that there is more will to travel from authoritarian and less democratic countries to democratic ones. Often the latter are hindered by limitations.

There are countries in which the state itself promotes migration. For example, Bangladesh, due to population density, natural growth, and

unemployment being too high, the state is not able to solve these problems, and so they promote the employment of foreign workers. As well as the importance of the part policy plays, is what kind of migration policy a country will have,” she added.

“The problem with Georgia is the flow of the working population of the country, which demographically complicates our situation, as there is a declining birth rate. Also the problem is that the majority of people are employed in posi-

tions inconsistent with their education, which means that the investment in education is being spent in vain. In their place there is a great inflow from less developed countries with less education. If the economic and social problems are not resolved in time, with the EU visa policy easing it may lead to a very large migration.

Thus, we need to be positively prepared for this move so that Georgia will not empty. There were a lot of promises made by the government before 2008, but those have not been

met, which can be seen from the number of people’s relatives who continue to work abroad,” she said.

CMYK

FINANCIAL HEADLINE NEWS & ANALYSIS FINCHANNEL.COM | 28 April, 2014

20 Telavi Str. Tel: 277 20 20 Fax: 277 21 20

www.sheraton.com/tbilisi

15

| places we strongly reccommend to visit | Ice cream, coffee, blended drinks, pastry, salads… Open 8am-2am (May-October)

8am-1am

(November-April)

Addr: 12 Eristavi Str. (at the round garden) 34 Leselidze Str. 7a Pekini Str. Phone: 299 03 99; 574 74 69 69 info@lucapolare.com www.lucapolare.com

Tel: 251 00 01 Fax: 253 00 44 info@zarapxana.ge www.zarapxana.ge

La Brioche AeroSvit Representative office in Georgia Address: 25 st.Leselidze Office 205 Tbilisi 0160, Georgia Tel: 243 96 93 Fax: 243 96 93 tbilisi@aerosvit.com

1 Brother Kakabadze Str.

15 Lubliana Str.

37 Chavchavadze Ave. Tel.: 291 30 26; 291 30 76

Tel: 292 29 45; Fax: 292 29 46; tk@mcdonalds.ge

4 Freedom Square, Tel: +995 32 254 70 30 Fax: +995 32 254 70 40 tbilisi@citadines.com

13, Rustaveli Avenue.; Tel.: 2 779 200 www.TbilisiMarriott.com tbilisi.marriott@marriotthotels.com

4, Freedom Square, Tel: 2 779 100 www.CourtyardTbilisi.com courtyard.tbilisi@marriotthotels.com

dining

Because life is about living

Addr: Batumi, Georgia, Parnavaz Mepe №25

Tel.: 260 15 36 info@piazza.ge, www.piazza.ge

Betsy’s Hotel 32-34 Makashvili Street, 0108, Tbilisi, Georgia

Tel.: 293 14 04, Fax: 299 93 11 info@betsyshotel.com www.betsyshotel.com

5 Chavchavadze Ave. Tel.: 222 44 17 577 22 99 22 plasticsurgerygeo.com

Hotel “O. Galogre” The tickets are available at tbilisi international airport freedom square 4 courtyard marriott hotel, 1st floor

Tel: 2400 400; 2400 040

36 Al. Kazbegi ave. Tbilisi, 0177, Georgia Tel/Fax: 229 43 43 info@intercontinental.ge www.intercontinental.ge

Tel: 888 222 2900 www.sheraton.com/tbilisi

LE MARAIS

8, Vakhtang Gorgasali Str. Batumi, Georgia Tel: +995 422 27 48 45 info@hotelgalogre.com www.hotelgalogre.com

Village Anaklia, Zugdidi, Georgia Tel: 2 60 99 90 2 60 99 91

Literary cafe “MONSIEUR JORDAN” V. Gorgasali st.,17 Tel.: 275-02-07

Radisson Blu Iveria Hotel Rose Revolution Square 1 Tel.: 240 22 00; Fax: 240 22 01 info.tbilisi@radissonblu.com radissonblu.com/hotel-tbilisi

32 Abashidze Str. Tel: 222 40 83

26 May Square Tel: 2300099 E-mail: info@hi-tbilisi.com www.hi-tbilisi.com

50 Chavchavadze Ave. Tel: 2 91 52 42

Tel: 31 99 99 hotel@tifilis.ge addr: #9 Grishashvili Str.

www.hotelanaklia.com

13 Shavteli Str. Tel: 2439494 info@ambasadori.ge www.ambasadori.ge

Fragola

Erekle II str.

Tel: 555 00 44 46

6 Kavsadze Str. Tel: 2 25 15 45 2 55 44 55 www.lottravel.ge

3 Tabidze Str. 2 Kazbegi Ave. Tel: 570 10 33 19

fragola.cafemail@gmail.com

GEORGIA PALACE HOTEL

275 Agmashenebeli Ave., Kobuleti, Georgia Tel: 2242400 Fax: 2242403

E-mail: info@gph.ge, www.gph.ge

Georgian Real Estate Management The Green Building, 6 Marjanishvili Street, 0102 Tbilisi Tel: 243 30 77, Fax: 243 30 79 www.firstbrokerage.ge E-mail: info@firstbrokerage.ge

4 Freedom Square Tel: 2988 988, Fax: 2988 910 E-mail:gmt@gmt.ge, www.gmt.ge

For advertising please contact: 577 741 700 marketing@finchannel.com

4 Kargareteli str.

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HOTEL AND AIRTICKET BOOKING: 2 999 662 | SKY.GE

CMYK

16

HEADLINE NEWS & ANALYSIS

green business

FINANCIAL

28 April, 2014 | FINCHANNEL.COM

Green Checklist REDUCE PAPER USAGE

S A Taxing Issue: Majorities of Americans Support Increasing Taxes on the Very Rich Continued from p. 12

cans - segmented by income - are too high, too low or fair, nearly half (46%) feel taxes on the poor are too high, while over one-third (35%) feel they’re fair (up from 29% in 2012) and nearly one in ten (8%) feel they’re too low.

Sentiments are far less divided on the other end of the income spectrum. Majorities see taxes on both billionaires (65%) and people with incomes of $1 million per year (58%) as too low, one in ten each see taxes on these groups as too high (9% for billionaires, 11% for those earning $1 million per year) while 14% feel current rates are fair for billionaires and 19% say the same for $1m earners, according to Harris Interactive Inc. Turning to the middle ground between low income and those earning $1million or more each year, over six in ten Americans see taxes on the middle class as too high (62%), while nearly three in ten (28%) see them as fair and only 2% see them as too low. For people with incomes of $200,000 per year, four in ten Americans (39%) feel tax rates are fair, three in ten (31%) feel they’re too low and nearly two in ten (17%) believe they’re too high.

Democrats (56%) are far more likely than either Republicans (35%) or Independents (41%) to see taxes on the poor as too high, while majorities across party lines agree they’re too high for the middle class (61%, 68% and 59%, respectively). Democrats (39%) are also more likely than either Republicans (23%) or Independents (29%) to see taxes as too low for those earning $200,000 per year. Independents fall more squarely between the two parties on the perceptions of taxes on those earning $1 mil-

lion per year (72% Dem. vs.

57% Ind. vs. 42% Rep.) and billionaires (80% vs. 64% vs.

49%, respectively) as too low.

Americans earning under $35,000 per year are more likely than any other income group to see taxes on the poor as too high (61%); those earning $35,000 to under $75,000 (46%) are also more likely to hold this belief than those with $100,000 or more in annual income (35%). Generation outlooks show some differences as well, with Millennials (52%) less likely than any other generation (64% Gen Xers, 69% Baby Boomers, 64% Matures) to see taxes on the middle class as too high, while Gen Xers and Baby Boomers (35% each) are more likely than either Millennials (26%) or Matures (25%) to see taxes on those earning $200,000 per year as too low.

Majorities of Americans agree - many of them strongly - that increasing taxes on the very rich would be fair (70% agree, 44% strongly so), that it would be the right thing to do (68%, 45%) and that it would help reduce the budget deficit (63%, 34%). Only 35% agree (18% strongly so) that it would hurt the economy because these are the very rich are the ones who create jobs, according to Harris Interactive Inc. Political breakouts follow expected patterns; Democrats are most likely and Republicans least so, with Independents falling in between, to agree that doing so would be fair (87% Dem. vs. 69% Ind. vs. 49% Rep.), that it would be the right thing to do (85% vs. 69% vs. 49%, respectively) and that it would help reduce the budget deficit 77% vs. 64% vs. 43%, respectively). Also predictably, the inverse is true for agreement that doing so would hurt the economy because the very rich are the

ones who create jobs (56% Rep. vs. 34% Ind. vs. 21% Dem.).

Matures (50%) are less likely than any other generation (70% Millennials, 62% each Gen Xers and baby Boomers) to believe increasing taxes on the very rich would help reduce the budget deficit, though sentiments are consistent across generations for all other sentiments, according to Harris Interactive Inc. Some high earners have made waves in recent news cycles by floating notions of tying voting rights, or the degree to which votes “count,” to taxes, and different forms of this concept receive different levels of support among U.S. adults. Nearly four in ten (37%) agree that the right to vote should be reserved for those who pay taxes, while only 14% each agree that how much a person’s vote counts in elections should be tied to either the rate at which they’re taxed or how much they pay in taxes overall.

Nearly half of Republicans (47%) agree the right to vote should be reserved for taxpayers, compared to a third of Independents (34%) and three in ten Democrats (30%). Support for ideas of tying voting “strength” to either the rate at which one is taxed (13% Rep., 16% Dem., 11% Ind.) or how much one is taxed overall (14%, 15% and 11%, respectively) is low across party lines. Millennials are more likely than any other generation to agree that the right to vote should be reserved for those who pay taxes (49%, vs. 34% Gen Xers, 32% Baby Boomers and 28% Matures) and that how much a person’s vote counts should be measured by the rate at which they’re taxed (24% vs. 13%, 9% and 6%, respectively), according to Harris Interactive Inc.

et up an intranet that employees can use to access internal documents such as policies and procedures, phone lists etc.

Rely on email for billing, invoices, communication with clients, regular reporting and more.

Offer a direct deposit option to employees for payroll.

Switch to e-marketing including using your website as a sales tool, utilizing email newsletters, and using online advertising.

Use the Microsoft Word “track changes” program for editing documents.

Offer employees personal size dry erase boards for note-taking.

When you need to print, buy only 100% post consumer waste recycled paper

ENCOURAGE TELECOMMUTING, USE OF PUBLIC TRANSPORTATION AND CARPOOLING Save fuel usage, employee expense on gas and office energy usage by offering telecommuting. For employees coming to the office, offer incentives for use of public transportation and carpooling.

TAKE SMALL STEPS TO REDUCE ENERGY CONSUMPTION Implement a few energy-saving measures to help fight air pollution, global warming and to reduce your company’s electric or natural gas bill.

Invest in energy saving power strips, which can make up for their costs in just a few weeks.

Turn off lights when not in use, especially in bathrooms, kitchens and lower use areas.

Take advantage of natural daylight and reduce lighting inside the office.

Be use to power down large office equipment (and unplug!) when employees are done working.

SWITCH ALL LIGHT BULBS TO COMPACT FLUORESCENTS While the initial investment may cost more than conventional bulbs, CFLs last longer-- so over time your office will save money and save energy.

REUSE AND RECYCLE Take every advantage to reuse materials in the office.

This can include re-using envelopes for intra-office and postal mail, using rechargeable batteries and buy recycled toner cartridges.

Recycle glass, plastic, metal cans, white paper, and mixed paper and organics.

REDUCE COMPUTER ENERGY CONSUMPTION By turning off or at least powering down your PCs during periods of inactivity – such as at night or over the weekend – Energy Star estimates that firms can save anywhere between $25-$75 per PC per year.

Set computers to switch to a low-power sleep mode after a few minutes of inactivity and make sure to optimize efficiency settings on all newer computers.

BECOME CARBON NEUTRAL Calculate the carbon emissions of your office (using an online calculator or by contacting your local power company), then purchase carbon offsets.

REDUCE WATER USAGE Check all office kitchens and bathrooms regularly for leaks and fix immediately.

Install low-flow toilets (alternately, you can place a plastic container filled with water in the tank of the toilet).

Encourage employees to be conscious of water usage when cooking, making coffee and tea, etc.

CMYK

FINANCIAL HEADLINE NEWS & ANALYSIS

17

where to go

FINCHANNEL.COM | 28 April, 2014 APRIL 28, 2014

1 Tel: 2 999 662 SPECIAL OFFER FROM BUSINESSTRAVELCOM TO

Clubs, Pubs…

Pub Nali 4/1 Kiacheli St. Tel: 243 04 20 21:00-00:30 - Band Zarebi SkyyBar 22 Metekhi Str. Mob: 592 32-32-32 21:00 - Band “Wheels”, DJ Datuna City Time Leonidze/Machabeli Str. 1/6; Tel: 292 02 12 20:00-24:00 - Live Band Plaza Hall Beliashvili and Mikeladze streets territory.

Tel: 254 05 56; Mob: 599 56 60 72 Live music, New Voice participant: Giorgi Modzmanashvili, every day different show programs, famous faces, tam tams, dancers (Georgian and ball dances)/Different programs on Saturday-Sundays Every Friday, inextinguishable star of show business, singer - Gia Suramelashvili Restaurant “Dzveli Sakhli” 3, Sanapiro Str. Tel: 2 365-365 20:00-23:00 - Georgian songs with live performance Restaurant “Bermukha” Agmashenebeli lane 13th km. Tel: 259 69 69; Mob: 598 59 69 69 Everyday from 17:00 restaurant Bermukha is awaiting you with renovated hall and colorful show program. Music program starts from 19:00: Dato Archvadze’s quartet “Taoba”: Georgian folk and city songs.

Estrada singers: Giorgi Tsiklauri, Nina Okroashvili, Giorgi Kakutia Café “Kala” 8/10 Erekle II Str. Mob: 599 79-97-37 21:00 - Rezo Kiknadze - saxophonist Pub «Dublin» 8 Akhvlediani Str, Tel: 298-44-67 21:00-24:00 - Band «Goblins» (Covers)

2

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Cinema

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4

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Gallery

From

Tbilisi

TO

Day

Depart

Arrive

Flight#

Aktau

5.7

00:50

02:40

DV 842

Amsterdam

1.6

06:10

07:55

A9 651

Almaty

1.2.5.7

22:45;08:55

04:25+1;14:35

KC E90

Athens

1

06:15

07:15

A3 983

Baku

X 2.4

01:30;12:10

02:30;13:10

J2 224/226

Baku

DAILY

14:50;19:50

16:05;21:05

QR 975/977

Batumi

2.5.7

10:00;14:45

10:40;15:20

CRJ

DAILY

Doha

2.4.6.7

Dubai

19:50;14:05 06:50

23:59;19:00

QR 975/977

10:00

FZ 714

Istanbul

DAILY

06:20

06:40

PC/463

Istanbul

DAILY

05:15;18:15

05:45; 18:45

TK 387/383

DAILY

06:20

06:50

KK 320

Istanbul Kiev

X3,5

07:50;17:30

08:20;17:55

PS 728

Minsk

DAILY

03:50

06:00

B2 736

Munich

DAILY

05:10

06:20

LH 2557

Riga

1.3.6

07:00

08:35

BT 723

Rome

7

05:25

06:40

AZ 551

Tel-Aviv

2.3.4.7

17:25

18:10

Vienna

4.7

08:55

09:25

A9 681

Urumqi

2.6

22:40

07:30+1

CZ 6040

Warsaw

2.3.5.7

05:40

06:15

LO 724

A9 695

Cafe 78 presents A joint event to promote recycling in Georgia through art.

Opening of photo exhibition by Uta Bayer.

ETHYLENE BLOSSOM meets COOP Cafe 78 33 L. Asatiani Str. Tel: 230 57 85 Open every day 11:00 to 23:00 except Sundays till - May 24 Exhibition of Lado Gudiashvili Lado Gudiashvili Exhibition Hall 11 L. Gudiashvili Str. Tel: 293 23 05 Exhibition Hall is working every day, 11:00 - 18:30 except Mondays and official holidays.

Entry: Adults - 5 GEL / People from 6-18 - 3 GEL / Students and pensioners (with ID) - 3 GEL / Admission is free for orphan groups (with proof of status) and for children under 6 till - April 30 Dimitri Shevardnadze National Gallery invites you at the exhibition «Visions of Mexican Art».

D. Shevardnadze National Gallery 11, Rustaveli Ave. Tel: 299-80-22 Gallery’s working hours: Saturday-Sunday 10:00-18:00 till - May 2 The Young Artists Charity Exhibition «New Life» Zurab Tsereteli Museum of Modern Art 27, Rustaveli Ave. till - April 28 Annyversary exhibition of the Georgian artist Ilo Patashuri Sh. Amiranashvili Art Museum 1, Gudiashvili Str. Tel: 299-71-76 Museum is working every day except Monday.

From 11:00 till 17:00 till - April 30 Baia Gallery requests the pleasure of your company at the opening of Alexander Mikadze’s exhibition - Stained-Glass Window.

Exhibition will be opened on 18.04.2014 at 7 p.m.

Baia Gallery 10 Shardeni Str. Tel: 275-45-10 Gallery’s working hours: 12:00-19:00 till - May 1

APRIL 29, 2014

1

Clubs, Pubs…

4/1 Kiacheli St. Tel: 243 04 20 21:00-00:30 - Nali Band SkyyBar 22 Metekhi Str. Mob: 592 32-32-32 21:00 - Band «Wheels», DJ Datuna City Time Leonidze/Machabeli Str. 1/6; Tel: 292 02 12 20:00-24:00 - Live Band Restaurant «Bermukha» Agmashenebeli lane 13th km. Tel: 259 69 69; Mob: 598 59 69 69 Everyday from 17:00 restaurant Bermukha is awaiting you with renovated hall and colorful show program. Music program starts from 19:00: Dato Archvadze’s quartet «Taoba»: Georgian folk and city songs.

Estrada singers: Giorgi Tsiklauri, Nina Okroashvili, Giorgi Kakutia Plaza Hall Beliashvili and Mikeladze streets territory.

Tel: 254 05 56; Mob: 599 56 60 72 Live music, New Voice participant: Giorgi Modzmanashvili, every day different show programs, famous faces, tam tams, dancers (Georgian and ball dances)/Different programs on Saturday-Sundays Every Friday, inextinguishable star of show business, singer - Gia Suramelashvili Restaurant «Dzveli Sakhli» 3, Sanapiro Str. Tel: 2 365-365 20:00-23:00 - Georgian songs with live performance Café «Kala» 8/10 Erekle II Str. Mob: 599 79-97-37 21:00 - Maia Kankava Pub «Dublin» 8 Akhvlediani Str, Tel: 298-44-67 21:00-24:00 - Band «Goblins» (Covers)

2

Cinema

«Rustaveli» Cinema 5 Rustaveli Ave. Tel: 293-22-53, 2 555-000 «The Amazing Spider-Man 2» 3D; «Full Speed Westward»; «Divergent»; «Captain America: The Winter Soldier» 3D; «Rio 2» 3D; «Noah» 3D (Ticket Price: 7,50 - 12,50 GEL) «Amirani» Cinema 36 Kostava Str. Tel: 299-99-55 «The Amazing Spider-Man 2» 3D; «Full Speed Westward»; «Divergent»; «Captain America: The Winter Soldier» 3D; «Rio 2» 3D (Ticket Price: 7,50 - 12,50 GEL)

3

Theatre

Days=( 1-Monday., 2-Tuesday., 3-Wedsday., 4-Thursday., 5-Friday., 6-Saturday., 7-Sunday.

D-Daily; X-except off) SPECIAL OFFER FROM BUSINESSTRAVELCOM

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Rustaveli Theatre 17, Rustaveli Ave. Tel: 272-68-68 Old Jokers Director: Gocha Kapanadze Cast: Kakhi Kavsadze, Darejan Kharshiladze, Zaza Lebanidze, Jemal Ghaghanidze, Manana Gamcemlidze, Marina Janashia Duration: 140 minutes Date: April 29 Hall: Small Stage Time: 19:00 Price: 10, 15, 20 GEL Marjanishvili Theatre 8 Marjanishvili Str. Tel: 2 955-966 As You Like It Director: Levan Tsuladze Cast: Manana Kozakova, Nato Kakhidze, Ketevan Shatirishvili, Ketevan Tskhakaia, Nata Murvanidze, Tamar Bukhnikashvili, Nikoloz Tavadze, Malkhaz Abuladze, Beso Baratashvili Duration: 120 minutes Date: April 29 Hall: Big Stage Time: 20:00 Price: 6 - 16 GEL Marjanishvili Theatre (New Stage) 5 Marjanishvili Str. Tel: 2 955-966 Borders Director and Choreographer: Giorgi Osepashvili Cast: Ketevan Kitiashvili, Beka Goderdzishvili, Giorgi Osepashvili Duration: 140 minutes Date: April 29 Time: 20:00 Price: 14 GEL Liberty Theatre 2 Rustaveli Ave. Tel: 298-58-21 So what if wet lilac is wet Director: Gogi Todadze Cast: Giorgi Bakhutashvili, Otar Lortkipanidze, Nikoloz Paikridze, Medea Jibladze, Tamar Tavkhelidze, Tamar Aznarashvili, Mariam Karkashadze, David Kolelishvili Date: April 29 Time: 19:00 Price: 6, 9, 11 GEL Theatre Factory 53, Kostava Str. Maria Callas - Master Class Director: Robert Sturua Cast: Lela Alibegashvili, David Darchia, Lela Akhalaia, Archil Gogitidze, Kate Svanidze, David

Uplisashvili Duration: 75 minutes Date: April 29 Time: 20:00 Price: 10, 12, 15, 20 GEL Georgian State Pantomime Theatre 37 Rustaveli Ave. Tel: 299-63-14 Shakespeare Sonnets Director: David Shalikashvili Duration: 50 minutes Date: April 29 Time: 19:00 Price: 7 GEL Tbilisi Nodar Dumbadze State Central Children’s Theatre 99/1, D. Agmashenebeli Ave. Tel: 295-78-74, 295-39-27 Clownery Director: Nikoloz Sabashvili Cast: Nino Archaia, Khatia Melkadze, Nino Papiashvili, Levan Katsiashvili, Vakhtang Nozadze, Salome Tsurtsumia Duration: 60 minutes Date: April 29 Hall: Small Stage Time: 12:00 Price: 7, 10 GEL Snow White and the Seven Dwarfs Director: Dimitri Khvtisiashvili Cast: Nino Lezhava, Tamar Lortkipanidze, Nino Shushiashvili, Tamara Chanuyvadze, Kakha Gabelaia, Mariam Chukhrukidze, Nikoloz Kvantaliani, Nikoloz Nanitashvili, Gaga Shishinashvili Duration: 120 minutes Date: April 29 Hall: Big Stage Time: 12:00 Price: 7, 10 GEL Mousetrap Director: Otar Baghaturia Cast: David Khakhidze, Khatia Melkadze, Badri Gvazava, Paata Kikvadze, Salome Tsurtsumia, Giorgi Gogishvili, Merab Sharikadze, Khatuna Berdzenishvili Duration: 80 minutes Date: April 29 Hall: Big Stage Time: 15:00 Price: 7, 10 GEL

4

Gallery

Cafe 78 presents A joint event to promote recycling in Georgia through art.

Opening of photo exhibition by Uta Bayer.

ETHYLENE BLOSSOM meets COOP Cafe 78 33 L. Asatiani Str. Tel: 230 57 85 Open every day 11:00 to 23:00 except Sundays till - May 24 Exhibition of Lado Gudiashvili Lado Gudiashvili Exhibition Hall 11 L. Gudiashvili Str. Tel: 293 23 05 Exhibition Hall is working every day, 11:00 - 18:30 except Mondays and official holidays.

Entry: Adults - 5 GEL / People from 6-18 - 3 GEL / Students and pensioners (with ID) - 3 GEL / Admission is free for orphan groups (with proof of status) and for children under 6 till - April 30 Dimitri Shevardnadze National Gallery invites you at the exhibition «Visions of Mexican Art».

D. Shevardnadze National Gallery 11, Rustaveli Ave. Tel: 299-80-22 Gallery’s working hours: Saturday-Sunday 10:00-18:00 till - May 2 Annyversary exhibition of the Georgian artist Ilo Patashuri Sh. Amiranashvili Art Museum 1, Gudiashvili Str. Tel: 299-71-76 Museum is working every day except Monday.

From 11:00 till 17:00 till - April 30 Baia Gallery requests the pleasure of your company at the opening of Alexander Mikadze’s exhibition - StainedGlass Window.

Exhibition will be opened on 18.04.2014 at 7 p.m.

Baia Gallery 10 Shardeni Str. Tel: 275-45-10 Gallery’s working hours: 12:00-19:00 till - May 1

APRIL 30, 2014

1

Clubs, Pubs…

Pub Nali 4/1 Kiacheli St. Tel: 243 04 20 21:00-00:30 - Band Zarebi SkyyBar 22 Metekhi Str. Mob: 592 32-32-32 21:00 - Band «Wheels», DJ Datuna City Time Leonidze/Machabeli Str. 1/6; Tel: 292 02 12 20:00-24:00 - Live Band Plaza Hall Beliashvili and Mikeladze streets territory.

Tel: 254 05 56; Mob: 599 56 60 72 Live music, New Voice participant: Giorgi Modzmanashvili, every day different show programs, famous faces, tam tams, dancers (Georgian and ball dances)/Different programs on Saturday-Sundays Every Friday, inextinguishable star of show business, singer - Gia Suramelashvili MacLaren’s Irish Pub 5 Rkinis Rigi (Chardin) Mob: 599 57 85 49 21:30 - Enjoy a unique ambiance of 60s-70s hits and improvisations

by David Gabidzashvili and David Barnabishvili. Great mood is guaranteed! Spend evening at the warmest pub in the city!

Restaurant «Dzveli Sakhli» 3, Sanapiro Str. Tel: 2 365-365 20:00-23:00 - Georgian Dances Restaurant «Bermukha» Agmashenebeli lane 13th km. Tel: 259 69 69; Mob: 598 59 69 69 Everyday from 17:00 restaurant Bermukha is awaiting you with renovated hall and colorful show program. Music program starts from 19:00: Dato Archvadze’s quartet «Taoba»: Georgian folk and city songs.

Estrada singers: Giorgi Tsiklauri, Nina Okroashvili, Giorgi Kakutia Café «Kala» 8/10 Erekle II Str. Mob: 599 79-97-37 21:00 - Live Band Pub «Dublin» 8 Akhvlediani Str, Tel: 298-44-67 21:00-24:00 - Band «The Jumping General»

2

Vano Dugladze, Beso Megrelishvili, Mariam Chukhrukidze, Kakha Tcholadze, Nikoloz Nanitashvili Duration: 160 minutes Date: April 30 Hall: Big Stage Time: 15:00 Price: 7, 10 GEL

4

Gallery

Cafe 78 presents A joint event to promote recycling in Georgia through art.

Opening of photo exhibition by Uta Bayer.

ETHYLENE BLOSSOM meets COOP Cafe 78 33 L. Asatiani Str. Tel: 230 57 85 Open every day 11:00 to 23:00 except Sundays till - May 24 Exhibition of Lado Gudiashvili Lado Gudiashvili Exhibition Hall 11 L. Gudiashvili Str. Tel: 293 23 05 Exhibition Hall is working every day, 11:00 - 18:30 except Mondays and official holidays.

Entry: Adults - 5 GEL / People from 6-18 - 3 GEL / Students and pensioners (with ID) - 3 GEL / Admission is free for orphan groups (with proof of status) and for children under 6 till - April 30 Dimitri Shevardnadze National Gallery invites you at the exhibition «Visions of Mexican Art».

D. Shevardnadze National Gallery 11, Rustaveli Ave. Tel: 299-80-22 Gallery’s working hours: Saturday-Sunday 10:00-18:00 till - May 2 Annyversary exhibition of the Georgian artist Ilo Patashuri Sh. Amiranashvili Art Museum 1, Gudiashvili Str. Tel: 299-71-76 Museum is working every day except Monday.

From 11:00 till 17:00 till - April 30 Baia Gallery requests the pleasure of your company at the opening of Alexander Mikadze’s exhibition - StainedGlass Window.

Exhibition will be opened on 18.04.2014 at 7 p.m.

Baia Gallery 10 Shardeni Str. Tel: 275-45-10 Gallery’s working hours: 12:00-19:00 till - May 1

MAY 1, 2014

1

Clubs, Pubs…

Pub Nali 4/1 Kiacheli St. Tel: 243 04 20 21:00-00:30 - Nali Band SkyyBar 22 Metekhi Str. Mob: 592 32-32-32 21:00 - Band «Band’a’roll», DJ Datuna City Time Leonidze/Machabeli Str. 1/6; Tel: 292 02 12 20:00-24:00 - Live Band MacLaren’s Irish Pub 5 Rkinis Rigi (Chardin) Mob: 599 57 85 49 21:30 - Enjoy a unique ambiance of 60s-70s hits and improvisations

by David Gabidzashvili and David Barnabishvili. Great mood is guaranteed!

Spend evening at the warmest pub in the city!

Restaurant «Bermukha» Agmashenebeli lane 13th km. Tel: 259 69 69; Mob: 598 59 69 69 Everyday from 17:00 restaurant Bermukha is awaiting you with renovated hall and colorful show program. Music program starts from 19:00: Dato Archvadze’s quartet «Taoba»: Georgian folk and city songs.

Estrada singers: Giorgi Tsiklauri, Nina Okroashvili, Giorgi Kakutia Plaza Hall Beliashvili and Mikeladze streets territory.

Tel: 254 05 56; Mob: 599 56 60 72 Live music, New Voice participant: Giorgi Modzmanashvili, every day different show programs, famous faces, tam tams, dancers (Georgian and ball dances)/Different programs on Saturday-Sundays Every Friday, inextinguishable star of show business, singer - Gia Suramelashvili Restaurant «Dzveli Sakhli» 3, Sanapiro Str. Tel: 2 365-365 20:00-23:00 - Georgian songs with live performance Café «Kala» 8/10 Erekle II Str. Mob: 599 79-97-37 21:00 - Guliko Chanturia Pub «Dublin» 8 Akhvlediani Str, Tel: 298-44-67 21:00-24:00 - Band «Good Company»

2

Cinema

«Rustaveli» Cinema 5 Rustaveli Ave. Tel: 293-22-53, 2 555-000 «The Amazing Spider-Man 2» 3D; «Full Speed Westward»; «Divergent»; «Captain America: The Winter Soldier» 3D; «Rio 2» 3D; «Noah» 3D (Ticket Price: 7,50 - 12,50 GEL) «Amirani» Cinema 36 Kostava Str. Tel: 299-99-55 «The Amazing Spider-Man 2» 3D; «Full Speed Westward»; «Divergent»; «Captain America: The Winter Soldier» 3D; «Rio 2» 3D (Ticket Price: 7,50 - 12,50 GEL)

3

Theatre

Cinema

«Rustaveli» Cinema 5 Rustaveli Ave. Tel: 293-22-53, 2 555-000 «The Amazing Spider-Man 2» 3D; «Full Speed Westward»; «Divergent»; «Captain America: The Winter Soldier» 3D; «Rio 2» 3D; «Noah» 3D (Ticket Price: 7,50 - 12,50 GEL) «Amirani» Cinema 36 Kostava Str. Tel: 299-99-55 «The Amazing Spider-Man 2» 3D; «Full Speed Westward»; «Divergent»; «Captain America: The Winter Soldier» 3D; «Rio 2» 3D (Ticket Price: 7,50 - 12,50 GEL)

3

Theatre

Rustaveli Theatre 17, Rustaveli Ave. Tel: 272-68-68 Soon I will Come as Rain...

Director: David Sakvarelidze Cast: Nino Tarkhan-Mouravi, Nino Makashvili, Temiko Tchitchinadze, Dato Darchia, Zaza Baratashvili, Datuna Gotsiridze, Natia Kvashali, Tamta Inashvili, Nino Kasradze, Nika Katsaridze Date: April 30 Hall: Experimental Stage Time: 19:00 Price: 8, 10 GEL Marjanishvili Theatre 8 Marjanishvili Str. Tel: 2 955-966 The ART Director: Temur Chkheidze Cast: Zura Kipshidze, Mikheil Gomiashvili, Aleko Makharoblishvili Duration: 105 minutes Date: April 30 Hall: Big Stage Time: 20:00 Price: 4 - 10.50 GEL Marjanishvili Theatre 8 Marjanishvili Str. Tel: 2 955-966 Tango with Illegitimate Director: Ketevan Kharshiladze, Guram Vashakidze Cast: Kote Tolordava, Ia Shughliashvili, Eka Nijaradze, Lile Philphani, Nino Gomarteli, Nino Dumbadze, Tamar Bukhnikashvili, Nikusha Chikovani, Levan Gelbakhiani Duration: 140 minutes Date: April 30 Hall: Theatre in Attic Time: 20:00 Price: 11 GEL Marjanishvili Theatre (New Stage) 5 Marjanishvili Str. Tel: 2 955-966 Meet You in Paradise Director: Sandro Eloshvili Cast: Zurab Berikashvili, Nino Gachechiladze, Guram Jashi, David Khurtsilava, Nodar Doghonadze Duration: 90 minutes Date: April 30 Time: 20:00 Price: 14 GEL Liberty Theatre 2 Rustaveli Ave. Tel: 298-58-21 Toy Pistol Director: Giorgi Shalutashvili Cast: Ani Aladashvili, Giorgi Abashidze Duration: 75 minutes Date: April 30 Time: 19:00 Price: 6, 9, 12 GEL Tbilisi Nodar Dumbadze State Central Children’s Theatre 99/1, D. Agmashenebeli Ave. Tel: 295-78-74, 295-39-27 The lullaby’s power Director: Otar Bagaturia Cast: Vameh Jangidze, Khatia Melkadze, Ioseb Molodinashvili, Nino Lortkifanidze, Paata Kikvadze, Mariam Chukhrukidze, Nikoloz Kvantaliani, Nikoloz Nanitashvili Duration: 110 minutes Date: April 30 Hall: Big Stage Time: 11:00 Price: 7, 10 GEL Clownery Director: Nikoloz Sabashvili Cast: Nino Archaia, Khatia Melkadze, Nino Papiashvili, Levan Katsiashvili, Vakhtang Nozadze, Salome Tsurtsumia Duration: 60 minutes Date: April 30 Hall: Small Stage Time: 12:00 Price: 7, 10 GEL Natsarkekia Director: Dimitri Khvtisiashvili Cast: Khatia Melkadze, Badri Gvazava, Levan Katsiashvili, Giorgi Katchakhidze, Paata Mkheidze, Vakhtang Nozadze, Nino Lortkifanidze, Paata Kikvadze, Kakha Tcholadze Duration: 90 minutes Date: April 30 Hall: Small Stage Time: 15:00 Price: 7, 10 GEL Romeo & Juliet Director: Levan Tsuladze Cast: Vameh Jangidze, David Khakhidze, Kote Tolordava, Nino Papiashvili, Kakha Gabelaia,

Marjanishvili Theatre 8 Marjanishvili Str. Tel: 2 955-966 Hadji Murad Director: Gizo Jordania Cast: Givi Chuguashvili, Paata Inauri, Rati Goguadze, Giorgi Shavgulidze, Gaga Shishinashvili, Zaza Iakashvili, Temur Kiladze, Marlen Egutia Date: May 1 Hall: Big Stage Time: 20:00 Price: 6 - 16 GEL Marjanishvili Theatre (New Stage) 5 Marjanishvili Str. Tel: 2 955-966 Fuel Director: Tata Popiashvili Cast: Misha Gomiashvili, Koko Roinishvili, Ana Kurtubadze Duration: 90 minutes Date: May 1 Time: 20:00 Price: 14 GEL Liberty Theatre 2 Rustaveli Ave. Tel: 298-58-21 Visit to a Psychologist Director: Eka Sharikadze, Maia Doborjginidze, Tiko Katamashvili Cast: Maia Khornauli, Giorgi Jikia, Natia Kvashali, Shako Mirianashvili, Salome Chulikhadze, Giorgi Marshania, Maraiam Nadiradze Date: May 1 Time: 19:00 Price: 6, 10, 12 GEL Tumanishvili Film Actors Theatre 164 Agmashenebeli Ave. Tel: 234-28-99 Our Small City Director: Mikheil Tumanishvili Cast: Gia Abesalashvili, Mzia Arabuli, Koko Roiniishvili, Zurab Kipshidze, Natalia Shengelaia, Nino Chkheidze, Nika Tserediani, Nineli Chankvetadze, Darejan Khachidze, Darejan Jojua, Beka Jumutia Duration: 170 minutes Date: May 1 Time: 19:00 Price: 10 GEL Iliauni Theatre 32, I. Chavchavadze Ave. Tel: 229-47-15 Harms Director: Otar Egadze Cast: Davit Gigolashvili, Davit Gotsiridze, Maia Gelovani, Tatia Buadze, Maka Dzagania, Tamta Tsintsadze, Dato Velijanashvili Duration: 75 minutes Date: May 1 Time: 20:00 Price: 5 GEL

4

Gallery

Cafe 78 presents A joint event to promote recycling in Georgia through art.

Opening of photo exhibition by Uta Bayer.

ETHYLENE BLOSSOM meets COOP Cafe 78 33 L. Asatiani Str. Tel: 230 57 85 Open every day 11:00 to 23:00 except Sundays till - May 24 Dimitri Shevardnadze National Gallery invites you at the exhibition «Visions of Mexican Art».

D. Shevardnadze National Gallery 11, Rustaveli Ave. Tel: 299-80-22 Gallery’s working hours: Saturday-Sunday 10:00-18:00 till - May 2 Baia Gallery requests the pleasure of your company at the opening of Alexander Mikadze’s exhibition - Stained-Glass Window.

Exhibition will be opened on 18.04.2014 at 7 p.m.

Baia Gallery 10 Shardeni Str. Tel: 275-45-10 Gallery’s working hours: 12:00-19:00 till - May 1

MAY 2, 2014

1

Clubs, Pubs…

Pub Nali 4/1 Kiacheli St. Tel: 243 04 20 21:00-00:30 - Nali Band SkyyBar 22 Metekhi Str. Mob: 592 32-32-32 21:00 - Agora Live Band, DJ Datuna City Time Leonidze/Machabeli Str. 1/6; Tel: 292 02 12 20:00-24:00 - Live Band & Maka Durglishvili; DJ Paata Plaza Hall Beliashvili and Mikeladze streets territory.

Tel: 254 05 56; Mob: 599 56 60 72 Live music, New Voice participant: Giorgi Modzmanashvili, every day different show programs, famous faces, tam tams, dancers (Georgian and ball dances)/Different programs on Saturday-Sundays Every Friday, inextinguishable star of show business, singer - Gia Suramelashvili MacLaren’s Irish Pub 5 Rkinis Rigi (Chardin) Mob: 599 57 85 49 21:30 - Enjoy a unique ambiance of 60s-70s hits and improvisations

by David Gabidzashvili and David Barnabishvili. Great mood is guaranteed! Spend evening at the warmest pub in the city!

Restaurant «Bermukha» Agmashenebeli lane 13th km. Tel: 259 69 69; Mob: 598 59 69 69 Every day from 17:00 restaurant Bermukha is awaiting you with renovated hall and colorful show program.

Music program starts from 19:00: Dato Archvadze’s quartet «Taoba»: Georgian folk and city songs.

Estrada singers: Giorgi Tsiklauri, Nina Okroashvili, Giorgi Kakutia Restaurant «Dzveli Sakhli» 3, Sanapiro Str. Tel: 2 365-365 20:00-23:00 - Georgian Dances Café «Kala» 8/10 Erekle II Str. Mob: 599 79-97-37 21:00 - Maia Baratashvili Pub «Dublin» 8 Akhvlediani Str, Tel: 298-44-67 21:00-24:00 - Band «Rustavi 2» (Covers)

2

Cinema

«Rustaveli» Cinema 5 Rustaveli Ave. Tel: 293-22-53, 2 555-000 «The Amazing Spider-Man 2» 3D; «Full Speed Westward»; «Divergent»; «Captain America: The Winter Soldier» 3D; «Rio 2» 3D; «Noah» 3D (Ticket Price: 7,50 - 12,50 GEL) «Amirani» Cinema 36 Kostava Str. Tel: 299-99-55 «The Amazing Spider-Man 2» 3D; «Full Speed Westward»; «Divergent»; «Captain America: The Winter Soldier» 3D; «Rio 2» 3D (Ticket Price: 7,50 - 12,50 GEL)

5

Concert

Tbilisi Concert Hall 1, Meliqishvilii Str. Tel: 299-05-99 20:00 - The Concert of «Sukhishvilebi» (Ticket Price: 15, 20, 25, 30, 40 GEL)

3

Theatre

Rustaveli Theatre 17, Rustaveli Ave. Tel: 272-68-68 America in Bathhouse - Premiere Antanas Vilkutaitis-Keturakis Directed by Linda Urbona Cast: Andria Tavberidze, Zura Inkorokva, Kakha Kupatadze, Mamuka Loria, Irakli Sanaia, Keti Svanidze, Beka Songhulashvili Date: May 2 Hall: Experimental Stage Time: 19:00 Price: 8, 10 GEL Marjanishvili Theatre 8 Marjanishvili Str. Tel: 2 955-966 Love-letters Director: Temur Chkheidze Cast: Nani Chikvinidze, Gia Burjanadze Duration: 120 minutes Date: May 2 Hall: Theatre in Attic Time: 20:00 Price: 11 GEL Marjanishvili Theatre (New Stage) 5 Marjanishvili Str. Tel: 2 955-966 Kramer vs. Kramer Director: Davit Chkhartishvili Cast: Nika Kuchava, Natia Nikolaishvili, Sandro Sharashidze, Teona Kokrashvili, Valeri Begalishvili, Gvantsa Korshia, Jano Izoria Date: May 2 Time: 20:00 Price: 14 GEL Liberty Theatre 2 Rustaveli Ave. Tel: 298-58-21 Honeymoon Director: Maya Doborjginidze Cast: Mariam Jologua, Salome Chulukhadze, Natia Kvashali Date: May 2 Time: 19:00 Price: 6, 9, 11 GEL Tumanishvili Film Actors Theatre 164 Agmashenebeli Ave. Tel: 234-28-99 Bakula’s Pigs Director: Mikheil Tumanishvili Cast: Nineli Chankvetadze, Rusudan Bolkvadze, Ramaz Ioseliani, Laura Rekhviashvili, Gvantsa Gurgenishvili, Zurab Kipshidze Duration: 100 minutes Date: May 2 Time: 19:00 Price: 10 GEL Iliauni Theatre 32, I. Chavchavadze Ave. Tel: 229-47-15 French Dressing Director: Sandro Eloshvili Cast: Nika Giorgadze, Salome Mikadze, Giorgi Tchumburidze, Salome Laperadze, Salome Tsurtsumia, Zurab Gabunia Duration: 105 minutes Date: May 2 Time: 20:00 Price: 5 GEL Gabriadze Theatre 13,Shavteli Str. Tel: 8 790 98-65-91 (MagtiFix), 298-65-90 Ramona Marionette Theatre Author and Director: Rezo Gabriadze +10 years Date: May 2 Time: 20:00 Price: 10, 15, 20 GEL

4

Gallery

Cafe 78 presents A joint event to promote recycling in Georgia through art.

Opening of photo exhibition by Uta Bayer.

ETHYLENE BLOSSOM meets COOP Cafe 78 33 L. Asatiani Str. Tel: 230 57 85 Open every day 11:00 to 23:00 except Sundays till - May 24 Dimitri Shevardnadze National Gallery invites you at the exhibition «Visions of Mexican Art».

D. Shevardnadze National Gallery 11, Rustaveli Ave. Tel: 299-80-22 Gallery’s working hours: Saturday-Sunday 10:00-18:00 till - May 2

MAY 3, 2014

1

Clubs, Pubs…

Pub Nali 4/1 Kiacheli St. Tel: 243 04 20 21:00-00:30 - Nali Zarebi SkyyBar 22 Metekhi Str. Mob: 592 32-32-32 21:00 - Veriko Turashvili & Live Band, DJ Datuna City Time Leonidze/Machabeli Str. 1/6; Tel: 292 02 12 20:00-24:00 - Live Band & Nata Kurdovanidze; DJ Vako Plaza Hall Beliashvili and Mikeladze streets territory.

Tel: 254 05 56; Mob: 599 56 60 72 Live music, New Voice participant: Giorgi Modzmanashvili, every day different show programs, famous faces, tam tams, dancers (Georgian and ball dances)/Different programs on Saturday-Sundays Every Friday, inextinguishable star of show business, singer - Gia Suramelashvili MacLaren’s Irish Pub 5 Rkinis Rigi (Chardin) Mob: 599 57 85 49 21:30 - Enjoy a unique ambiance of 60s-70s hits and improvisations

by David Gabidzashvili and David Barnabishvili. Great mood is guaranteed! Spend evening at the warmest pub in the city!

Restaurant «Bermukha» Agmashenebeli lane 13th km. Tel: 259 69 69; Mob: 598 59 69 69 Every day from 17:00 restaurant Bermukha is awaiting you with renovated hall and colorful show program.

Music program starts from 19:00: Dato Archvadze’s quartet «Taoba»: Georgian folk and city songs.

Estrada singers: Giorgi Tsiklauri, Nina Okroashvili, Giorgi Kakutia Restaurant «Dzveli Sakhli» 3, Sanapiro Str. Tel: 2 365-365 20:00-23:00 - Georgian Dances Café «Kala» 8/10 Erekle II Str. Mob: 599 79-97-37 21:00 - Keti Paresashvili Pub «Dublin» 8 Akhvlediani Str, Tel: 298-44-67 21:00-24:00 - Band «Rustavi 2» (Covers)

2

Cinema

«Rustaveli» Cinema 5 Rustaveli Ave. Tel: 293-22-53, 2 555-000 «The Amazing Spider-Man 2» 3D; «Full Speed Westward»; «Divergent»; «Captain America: The Winter Soldier» 3D; «Rio 2» 3D; «Noah» 3D (Ticket Price: 7,50 - 12,50 GEL) «Amirani» Cinema 36 Kostava Str. Tel: 299-99-55 «The Amazing Spider-Man 2» 3D; «Full Speed Westward»; «Divergent»; «Captain America: The Winter Soldier» 3D; «Rio 2» 3D (Ticket Price: 7,50 - 12,50 GEL)

3

Theatre

Rustaveli Theatre

17, Rustaveli Ave. Tel: 272-68-68 America in Bathhouse - Premiere Antanas Vilkutaitis-Keturakis Directed by Linda Urbona Cast: Andria Tavberidze, Zura Inkorokva, Kakha Kupatadze, Mamuka Loria, Irakli Sanaia, Keti Svanidze, Beka Songhulashvili Date: May 3 Hall: Experimental Stage Time: 19:00 Price: 8, 10 GEL Marjanishvili Theatre 8 Marjanishvili Str. Tel: 2 955-966 Kakutsa Cholokashvili Director: Levan Tsuladze Cast: Nika Tavadze, Nika Kuchava, Lela Meburishvili, Ioseb Gogichaishvili, Gia Burjanadze, Zura Berikashvili, Dimitri Tatishvili, Zaza Iakashvili, Roland Okropiridze Duration: 180 minutes Date: May 3 Hall: Big Stage Time: 20:00 Price: 4 - 10.50 GEL Marjanishvili Theatre 8 Marjanishvili Str. Tel: 2 955-966 Muu...

Director: Zurab Kikodze Cast: Medea Djaparidze, Nana Pachuashvili, Rusiko Bolkvadze, Qeti Tshakaia, Nato GulisaSvili, Meri Mikeladze Duration: 70 minutes Date: May 3 Hall: Theatre in Attic Time: 20:00 Price: 11 GEL Marjanishvili Theatre (New Stage) 5 Marjanishvili Str. Tel: 2 955-966 My Hamlet Finger Theatre Director: Beso Kupreishvili Cast: Ketevan Tskhakaia, Elene Phirtskhalava, Zaal Kakabadze, Vakhtang Koridze, Giorgi Mebaghishvili Duration: 80 minutes Date: May 3 Time: 20:00 Price: 14 GEL Liberty Theatre 2 Rustaveli Ave. Tel: 298-58-21 A Clockwork Orange Director: Avto Varsimashvili Cast: Jaba Kiladze, Apolon Kublashvili, Slava Natenadze, Sandro Margalitashvili, Misha Arjevanidze, Ani Aladashvili, Masho Melkadze, Lasha Gurgenidze +16 year Duration: 135 minutes Date: May 3 Time: 20:00 Price: 6, 13, 15 GEL Tumanishvili Film Actors Theatre 164 Agmashenebeli Ave. Tel: 234-28-99 The Icarus Director: Nugzar Bagrationi-Gruzinski Cast: Anri Bibineishvili, Rezo Tavartkiladze, Ana Matuashvili, Nato Shengelaia, Nika Tserediani, Beka Jumutia, Ana-Maria Gurgenishvili Duration: 80 minutes Date: May 3 Time: 19:00 Price: 7 GEL Griboedov Theatre 2 Rustaveli Ave. Tel: 293-11-06 Freeloader Director: Nugzar Lortkipanidze Cast: Dimitry Sporishev, Mikhail Arjevanidze, Nino Meladze, Zurab Chipashvili, Medea Mumladze, Oleg Mchedlishvili Date: May 3 Hall: Small Stage Time: 18:00 Price: 5 GEL Iliauni Theatre 32, I. Chavchavadze Ave. Tel: 229-47-15 Witted Woe! Director: Otar Egadze Cast: Vasiko Odishvili, Dato Gigolashvili, Kakha Gogidze, Nika Giorgadze, Soso Mchedlishvili, Maka Dzagania Duration: 90 minutes Date: May 3 Time: 20:00 Price: 5 GEL Gabriadze Theatre 13,Shavteli Str. Tel: 8 790 98-65-91 (MagtiFix), 298-65-90 Autumn of my Springtime Marionette Theatre Author and Director: Rezo Gabriadze +10 years Date: May 3 Time: 20:00 Price: 10, 15, 20 GEL

4

Gallery

Cafe 78 presents A joint event to promote recycling in Georgia through art.

Opening of photo exhibition by Uta Bayer.

ETHYLENE BLOSSOM meets COOP Cafe 78 33 L. Asatiani Str. Tel: 230 57 85 Open every day 11:00 to 23:00 except Sundays till - May 24

MAY 4, 2014

1

Clubs, Pubs…

Pub Nali 4/1 Kiacheli St. Tel: 243 04 20 21:00-00:30 - Nali Band SkyyBar 22 Metekhi Str. Mob: 592 32-32-32 21:00 - Agora Live Band, DJ Datuna City Time Leonidze/Machabeli Str. 1/6; Tel: 292 02 12 20:00-24:00 - Live Band & Maka Durglishvili; Karaoke, DJ Vako Plaza Hall Beliashvili and Mikeladze streets territory.

Tel: 254 05 56; Mob: 599 56 60 72 Live music, New Voice participant: Giorgi Modzmanashvili, every day different show programs, famous faces, tam tams, dancers (Georgian and ball dances)/Different programs on Saturday-Sundays Every Friday, inextinguishable star of show business, singer - Gia Suramelashvili Restaurant «Bermukha» Agmashenebeli lane 13th km. Tel: 259 69 69; Mob: 598 59 69 69 Every day from 17:00 restaurant Bermukha is awaiting you with renovated hall and colorful show program. Music program starts from 19:00: Dato Archvadze’s quartet «Taoba»: Georgian folk and city songs.

Estrada singers: Giorgi Tsiklauri, Nina Okroashvili, Giorgi Kakutia Restaurant «Dzveli Sakhli» 3, Sanapiro Str. Tel: 2 365-365 20:00-23:00 - Georgian songs with live performance Café «Kala» 8/10 Erekle II Str. Mob: 599 79-97-37 21:00 - Live Band Pub «Dublin» 8 Akhvlediani Str, Tel: 298-44-67 21:00-24:00 - Band «Rustavi 2» (Covers)

2

Cinema

«Rustaveli» Cinema 5 Rustaveli Ave. Tel: 293-22-53, 2 555-000 «The Amazing Spider-Man 2» 3D; «Full Speed Westward»; «Divergent»; «Captain America: The Winter Soldier» 3D; «Rio 2» 3D; «Noah» 3D (Ticket Price: 7,50 - 12,50 GEL) «Amirani» Cinema 36 Kostava Str. Tel: 299-99-55 «The Amazing Spider-Man 2» 3D; «Full Speed Westward»; «Divergent»; «Captain America: The Winter Soldier» 3D; «Rio 2» 3D (Ticket Price: 7,50 - 12,50 GEL)

3

Theatre

Marjanishvili Theatre 8 Marjanishvili Str. Tel: 2 955-966 Landscape’s Lack of Warmth Director: Dimitri Khvtisiashvili Cast: Eka Chkheidze, Varlam Korshia, Lile Philphani, Dimitri Tatishvili Duration: 120 minutes Date: May 4 Hall: Theatre in Attic Time: 20:00 Price: 11 GEL Marjanishvili Theatre 8 Marjanishvili Str. Tel: 2 955-966 University of Laugh Director: Levan Tsuladze Cast: Nato Murvanidze, Nika Kuchava Duration: 105 minutes Date: May 4 Hall: Big Stage Time: 20:00 Price: 11 GEL Marjanishvili Theatre (New Stage) 5 Marjanishvili Str. Tel: 2 955-966 Meet You in Paradise Director: Sandro Eloshvili Cast: Zurab Berikashvili, Nino Gachechiladze, Guram Jashi, David Khurtsilava, Nodar Doghonadze Duration: 90 minutes Date: May 4 Time: 20:00 Price: 14 GEL Liberty Theatre 2 Rustaveli Ave. Tel: 298-58-21 Richard III Director: Avto Varsimashvili Cast: Sandro Margalitashvili, Jaba Kiladze, Giorgi Jikia, Tamuna Nikoladze, Mariam Jologua, Tiko Kordzadze, Apolon Kublashvili, Goga Barbakadze Date: May 4 Time: 19:00 Price: 6, 13, 15 GEL Tumanishvili Film Actors Theatre 164 Agmashenebeli Ave. Tel: 234-28-99 Spring Will Still Come Director: Nugzar Bagrationi-Gruzinski Cast: Beka Jumutia, Ana Matuashvili Duration: 70 minutes Date: May 4 Time: 19:00 Price: 7 GEL Griboedov Theatre 2 Rustaveli Ave. Tel: 293-11-06 Chipollino Director: Gogi Todadze Cast: Jemal Sikharulidze, Mikhail Arjevanidze, Valentina Voinova, Ludmila ArtyomovaMghebrishvili Duration: 70 minutes Date: May 4 Time: 12:00 Price: 5 GEL Iliauni Theatre 32, I. Chavchavadze Ave. Tel: 229-47-15 God of Carnage Director: David Chabashvili Cast: Giorgi Bakhutashvili, Nata Berezhiani, Giorgi Bochorishvili, Maya Khornauli Duration: Black Comedy in 1 Act Date: May 4 Time: 20:00 Price: 10 GEL Gabriadze Theatre 13,Shavteli Str. Tel: 8 790 98-65-91 (MagtiFix), 298-65-90 The Battle of Stalingrad Marionette Theatre Author and Director: Rezo Gabriadze In Russian +10 years Date: May 4 Time: 20:00 Price: 10, 15, 20 GEL

4

Gallery

Cafe 78 presents A joint event to promote recycling in Georgia through art.

Opening of photo exhibition by Uta Bayer.

ETHYLENE BLOSSOM meets COOP Cafe 78 33 L. Asatiani Str. Tel: 230 57 85 Open every day 11:00 to 23:00 except Sundays till - May 24

For more information, please, visit the following website: www.info-tbilisi.com E-mail: afisha@info-tbilisi.com

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SANCHO

LITERATURULI CAFÉ

QUEUE

2, Tarkhnishvili Str. Tel: 244 45 46 31, Pekini Str. Tel: 231 30 57 22, Abashidze Str. Tel: 222 02 76 36, Kostava Str. Tel: 299 07 46

4, Besiki Str. Tel: 2 519 966

23, Akhvlediani Str. Tel: 298 25 98

Hangar Bar

dining

| places we strongly reccommend to visit |

TSISKVILI

PREGO 10, Paliashvili Str. Tel: 225 22 58

#1 Freedom squ.

Tel: 2 240 241

Red Café Bistro & Cafe

15, Erekle II. Tel: 293 14 11 # 71 Vazhaphavela Ave. Tel: 2201 211 info@redcafe.ge

25, Tarkhnishvili Str. Tel: 225 25 16 # 20 Shavteli Str. Tel: 293 10 80

Beliashvili Str. Tel: 253 07 97

Belle Ville

BUFFALO BILL

French - European barrestaurant Pleasant and cozy atmosphere High quality service, live music every day 26, l.Kiacheli Str. Tel: 293 65 53

DONUTS

2, MarjaniSvili Str. Tel: 2 999 723

Book Corner

13b, Tarkhnishvili Str. Tel: 223 24 30 contact@bookcorner.ge

VERA STEAKHOUSE

Better seen than heard 37, Kostava Str. Tel: 298 37 67 16, Akhvlediani Str. Tel: 293 60 52

64, Paliasvili Str. Tel: 225 06 69

DUBLIN IRISH PUB

Better seen than heard

Entree 13 Taktakishvili Str. 20 Rustaveli Ave. 19 Petriashvili Str. 7 Pekini Str. 78 Chavchavadze Ave. (Bagebi) 86 Aghmashenebeli ave.

8, Akhvlediani Str. Tel: 298 44 67

10/12, Abashidze Str. Tel: 225 39 85

Tel.: 599 21 53 83

24 24/

DISCOVERY

3 Vashlovani Str.; (“Super Babilon” oposit) Tel.: 298 90 86

40, Chavchavadze Ave. Tel: 229 42 30

SIANG-GAN

PICASSO

41, Gamsakhurdia Str. Tel: 237 96 88

4, Vashlovani Str. Tel: 298 90 86

Segafredo Zanetti Espresso

ENGLISH TEE HOUSE

26, Chavchavadze Ave Tel: 222 36 77

5, Marjanishvili Str. Tel: 294 16 20 32, Paliashvili Str. Tel: 222 11 09

Espresso Bar “RESPUBLIKA”

16, Marjanishvili Str. Tel: 555 211552 E-mail: Respublikaespressobar@gmail.com

Prospero’s Books

34, Rustaveli Ave. Tel: (+995 32) 2923 592

For advertising please contact: 577 741 700 marketing@finchannel.com

BUSINESSTRAVELCOM

HOTEL AND AIRTICKET BOOKING: 2 999 662 | SKY.GE

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20

green business

HEADLINE NEWS & ANALYSIS

FINANCIAL

28 April, 2014 | FINCHANNEL.COM

Advertiser: The FINANCIAL. Contact FINANCIAL Ad Dep at marketing@finchannel.com