Georgia and the United Kingdom: Cooperation and Partnership by firstforum

O F F I C I A L P U B L I C AT I O N

GEORGIA and the

UNITED KINGDOM

COOPERATION AND PARTNERSHIP PUBLISHED TO MARK THE 30TH ANNIVERSARY OF THE RESTORATION OF INDEPENDENCE AND THE 30TH ANNIVERSARY OF DIPLOMATIC RELATIONS

FIRST

O F F I C I A L P U B L I C AT I O N

GEORGIA and the

UNITED KINGDOM COOPERATION AND PARTNERSHIP PUBLISHED TO MARK THE 30TH ANNIVERSARY OF THE RESTORATION OF INDEPENDENCE AND THE 30TH ANNIVERSARY OF DIPLOMATIC RELATIONS

Published by FIRST, Victory House, 99-101 Regent Street, London W1B 4EZ Tel: +44 20 7440 3500 Email: publisher@firstforum.org www.firstforum.org Chairman and Founder Rupert Goodman dl Hon. Chairman, Advisory Council The Rt Hon Lord Hurd of Westwell ch cbe Executive Publisher Declan Hartnett VP, Strategic Partneships Emmanuel Artusa-Barrell Research and Communications Officer Harry Dobbs Designer Jon Mark Deane President, International Affairs Lord Cormack fsa dl Non-Executive Director The Hon Alexander Hambro, Special Advisors Sir Andrew Wood gcmg, Jacques Arnold dl, Professor Victor Bulmer-Thomas cmg obe Chaiman, Judging Panel Rt Hon Lord Judge Award Advisory Panel Lord Cormack fsa dl, Hon. Philip Lader, Professor Lord Plant of Highfield, Lord Robertson of Port Ellen kt gcmg pc frsa frse, Chief Emeka Anyaoku gcvo tc cfr, Marilyn Carlson Nelson, Dr Daniel Vasella, Ratan Tata kbe, Philippa Foster Back cbe, Dame Meg Hillier dbe mp, Baroness Bull cbe and Baroness Nicholson of Winterbourne FIRST

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GEORGIA

I Foreword by Rupert Goodman dl Chairman and Founder FIRST

t gives me great pleasure to introduce this Official Report to mark the 30th Anniversary of the Restoration of the independence of Georgia and the 30th Anniversary of Diplomatic Relations between our two countries. Lord Astor and I are very grateful to Her Excellency Sophie Katsarava, the Ambassador of Georgia, and her Embassy staff for all their help and guidance in the preparation of this publication. These anniversaries are particularly important and will help focus the attention of business leaders and policy makers on the many opportunities for further strengthening the links between our two countries. The anniversary of Georgian independence is an historic milestone in the development of the country and the 30th Anniversary of diplomatic relations provides an opportunity to mark an important friendship. This important 30th anniversary is supported by leaders from around the world. Joe Biden, President of the United States has stated ‘the United States remains firmly committed to Georgia’s territorial integrity and sovereignty within its recognised borders. Please accept my best wishes on the occasion of Independence Day.’ The relationship between Georgia and the United Kingdom is very cordial with official diplomatic relations being re-established in 1992 following independence in 1991. The UK plays an important role in promoting the development of the economy of Georgia given its role as one of the country’s largest investors. There is also close military cooperation. The Georgia Armed services has been the largest non-NATO contributor of troops during the war in Afghanistan – working

alongside British soldiers. Royal Navy destroyers also make regular visits to Georgia and conduct joint training exercises. The Georgian port of Batumi is also home to a British Military Cemetery where sixty-eight British service personnel are buried. The close economic and trading relations between our two countries are governed by ‘The Strategic Partnership and Cooperation between the United Kingdom of Great Britain and Northern Ireland and Georgia’ which was presented to Parliament in November 2019. The principal UK goods exported to Georgia include vehicles, pharmaceutical products, machinery and mechanical appliances, beverages and spirits, precious stones and metals. The most significant imports from Georgia include precious stones and metals, fertilisers, iron and steel, aluminium, inorganic chemicals and wine. The strong trading relationship is worth more than £190 million a year with significant investments in each other’s economies. This bilateral relationship is key to Georgia’s economy and helps support employment in the country. A good example of business cooperation can be seen in the work of MRMU which has an investment pipeline of over £100 million. Georgia represents an important opportunity for further trade and investment given its well-developed infrastructure and pro-investment policies. The 30th Anniversary of the Restoration of Independence and the 30th Anniversary of Diplomatic Relations gives us all an opportunity to study the important developments in both our countries and to weigh carefully the many opportunities to work together even F more closely.

FIRST

“The United Kingdom values its close partnership with Georgia. Our shared values and common vision provide a strong platform for continued joint work on a range of issues, including defence and security challenges. The UK will continue to strongly support Georgia’s territorial integrity and sovereignty, and remains committed to supporting its NATO membership aspirations. Looking ahead, there are plenty of opportunities to deepen our bilateral relationship. The UK-Georgia Strategic Partnership and Cooperation Agreement, signed in October 2019, is an important treaty that will provide the framework for our future relationship and ensure increased flows of trade and investment”

The Rt Hon. Boris Johnson mp Prime Minister of the United Kingdom of Great Britain and Northern Ireland

“30 years since the Restoration of Georgia’s Independence have placed our freedom loving society on the path where history, present and future intersect to position Georgia on the international stage as a reliable ally and a steadfast partner with firm resolve. It is an Anniversary to celebrate with the international community and strategic partners I am proud to call friends of Georgia. Long-standing relations between Georgia and the United Kingdom have bonded our people and shaped a remarkable history of friendship, a genuine commitment to shared values and joint efforts to ensure stability, security and prosperity. The recent port call of the HMS Defender in the Georgian Black Sea port of Batumi demonstrated the solid cooperation between the UK and Georgia in promoting defence and security in the region. We greatly value the UK’s support to Georgia’s sovereignty and territorial integrity as well as holding up our peaceful conflict resolution policy. The Wardrop Strategic Dialogue, frequent high-level exchanges, as well as interactions on multilateral forums are indicative of robust cooperation between Georgia and the UK. This year, I was privileged to join the Prime Minister, Rt Hon Boris Johnson, at the World Leaders Summit in Glasgow to rally together with the international community towards an ambitious climate agenda. Signing the UK-Georgia Strategic Partnership and Cooperation Agreement further complemented the extensive bilateral relationship and matured the foundations for bringing economic cooperation to a new level. I welcome this FIRST publication that presents to the audience the vibrancy and vitality of Georgia-UK relations.”

HE Irakli Garibashvili Prime Minister of Georgia

GEORGIA

Message from Alderman Vincent Keaveny Lord Mayor of the City of London

t gives me great pleasure to congratulate the leadership and people of Georgia on the 30th Anniversary of UK-Georgia diplomatic relations. The bilateral relationship is governed by the UK-Georgia Strategic Partnership and Cooperation Agreement. The UK plays an important role in the development of the Georgian economy and is one of the most significant investors. We look forward to many more years of fruitful cooperation F between our two countries.

Alderman Vincent Keaveny

FIRST

GEORGIA

Introduction by The Rt Hon Lord Astor of Hever pc dl

Parliamentary Under-Secretary of State for Defence 2010-2015

e at FIRST are delighted to produce this official publication to mark the 30th Anniversary of the Restoration of the Independence of Georgia and the 30th Anniversary diplomatic relations. The United Kingdom and Georgia enjoy a close and mutually beneficial relationship. Our two nations have built a strong and enduring friendship. Georgia is a strategic partner of the United Kingdom based on the UK-Georgia Strategic Partnership and Cooperation Agreement. The United Kingdom is a major investor in Georgia and there are close ties in the defence and security sphere – indeed the UK remains steadfast in its support for Georgia’s sovereignty and territorial integrity. I am confident that the United Kingdom and Georgia will continue to work closely together to address global challenges. Our relationship is based on friendship and mutually beneficial cooperation. I send my best wishes to the leadership and people of Georgia in this F significant anniversary year.

The Rt. Hon. Lord Astor of Hever pc dl

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GEORGIA

Forging new and important ties By RT HON. GREG HANDS M.P. Minister of State for Business, Energy and Clean Growth, United Kingdom

F GREG HANDS has been Minister of State for Business, Energy and Clean Growth, United Kingdom since 2021. He was previously Minister for Trade Policy from 2020-2021, a role he previously held from 2016-2018. He also served as Minister for London and Chief Secretary to the Treasury. He has been MP for Chelsea and Fulham since the constituency’s creation in 2010, and prior to this was MP of Hammersmith and Fulham from 2005-2010. He holds a degree in Modern History from Robinson College, Cambridge.

or the first time in almost 50 years, Britain is back as an independent sovereign trading nation. We are building bridges with old friends and new partners, and sculpting our future as an outward-facing, trail-blazing, free trading nation: a truly ‘Global Britain’. We have already agreed trade deals with 67 countries in addition to the European Union, covering £730 billion of UK bilateral trade in 2020. This year we are going further, building closer links with fast-growing and like-minded nations around the world to catapult the best of British exports worldwide. We are pursuing trade deals with Australia, Zealand, and the United States, starting more advanced agreements with countries such as Canada and Mexico, and have formally applied to join the CPTTP – a huge Pacific free trade area covering some of the world’s fastest-growing economies, representing almost £9 trillion of GDP in 2019. By coupling Global Britain with the world’s most vibrant, high-growth economies, we are not only securing opportunities for our businesses today, but building stronger economies for ourselves and key partners across the globe tomorrow. I have no doubt that Georgia will be one of those key partners. Since 1991, our diplomatic ties have been strongly rooted in our shared values and common interests. I visited Georgia in 2001. Today – in trade terms, our ties are now cemented by the UK-Georgia Strategic Partnership and Cooperation Agreement, which entered into force at the beginning of the year. This Agreement also provides the basis for the UK’s new trading relationship with Georgia. It largely replicates the EU-Georgia Association Agreement, and ensures that businesses and consumers in both countries will continue to benefit from preferential access to one another’s markets in both goods and services. This will underpin our already strong and mutually beneficial economic ties, of which there are many. On the high street, Georgian wine is increasingly sold in British supermarkets and independent retailers. And on the streets of Georgian towns and cities, branches of British brands like InterContinental Hotels, Marks and Spencer, Topshop, Next, Monsoon and Matalan are numerous. But there are also less visible signs. As a ‘gateway to the world’ and global financial centre, the United Kingdom has long been a trusted centre

for international partners to source and raise capital. In the case of Georgia this has included a bond issue on behalf of the Georgian government and JSC Georgian Railways, raising US$1 billion from international investors. Several of Georgia’s financial institutions, such as TBC, Bank of Georgia and Georgia Capital, also benefit from access to global financial markets through their listing on the London Stock Exchange. Realising the potential of Georgia’s dynamic and open economy, and its strategic location between Europe and Asia, UK businesses have been amongst the largest FDI investors in the country. BP was a forerunner with the development of the oil and gas pipelines running through Georgia from the Caspian. Investments by others in transport, tourism and real estate have followed, and UK businesses continue to be interested in new opportunities. In the energy sector, Georgia’s great water resources and strong hydro power sector offers great potential for UK-Georgia partnership in Green Hydrogen, in which the UK is an acknowledged world leader – supporting feasibility research and development as we make the global transition to Net Zero. Recognising Georgia’s increased potential as a trading partner, UK Export Finance recently made an extraordinary 8-fold increase in its ‘cover’ to companies operating from the UK exporting to Georgia, from £500 million to £4 billion. This is one of the sharpest increase in the region, and will provide UK Government support to exporting companies with matters such as financing terms to their buyers, supporting working capital loans, and insuring against defaults. As we slowly emerge from the economic effects of the Covid-19 pandemic, and the UK leverages its new found status as an independent, free trading nation, boosting Georgia-UK trade ties will play an important role in both countries’ recoveries. The ‘new normal’ of the postpandemic landscape will be fertile ground for innovations and the development of new technologies across a whole range of sectors, offering powerful potential for extending mutually beneficial opportunities. And as our political and trade relationship continues to flourish, I have no doubt that Georgia’s dynamic, entrepreneurial start-up economy, and the UK’s deep base of experience, technical know-how, and access to financial capital, will have great potential in realising F those opportunities.

GEORGIA

Friendship and partnership By H.E. SOPHIE KATSARAVA MBE Amabassador of Georgia to the Court of St James’s

SOPHIE KATSARAVA has been the Ambassador of Georgia to the Court of St James’s since 2020. Prior to this she was a Georgian Dream member of the Parliament of Georgia, from 2016 to 2019, and from 2005 to 2016 she worked at the British Embassy in Tbilisi, where her roles included Project Manager, Head of Press and Public Relations, and Political Secretary. In 2016 she was appointed as Honorary Member of the Most Excellent Order of the British Empire (MBE), in recognition of her outstanding contribution to strengthening relations between Georgia and the United Kingdom in the education sector. She holds a degree in English Language and Literature from Tbilisi’s Ilia Chavchavadze State University of Language and Culture.

he 30th Anniversary of the Restoration of Georgia’s Independence is not only an occasion marking the hard-fought freedom of the Georgian people but it is also a reminder of the enduring support from the international community that culminated in the birth of the Democratic Republic of Georgia on May 26, 1918. The United Kingdom has always been a steadfast friend to Georgia - relations between the two countries have been remarkable on every level. The short period of Georgia’s independence (1918-1921), when Sir Oliver Wardrop was appointed as the first British Chief Commissioner to the Caucasus, launched the extraordinary connections between British and Georgian diplomats, politicians, journalists writers, poets, and scholars. The Wardrop Collection of Georgian Books and Manuscripts housed at the Bodleian Libraries in Oxford narrate fascinating stories of the diplomatic, political and cultural dynamics as well as infinite friendships. Chronicling UK assistance at the 1907 Hague International Conference where they supported the development of a petition calling for the autonomy and rights for the Georgian people and the 4000 British women who addressed the Foreign Secretary Sir Edward Grey asking him to uphold Britain’s support for Georgians struggle for independence – as a response to a petition of 150 Georgian women raising their voices against Russian oppression featured in the June 1906 issues of Daily Chronicle, The Daily News, The Tribune, and The Times. The great relationship between the two countries, fostered so long ago has endured in the 30 years since Georgia finally regained its independence from Russia in 1991. In 2008 when Russia once again invaded Georgian territory, this small Black Sea country attracted a world-wide international attention. What gets less attention, is how in the thirty years since regaining Independence, despite its challenging geographical location and on-going aggression from Russia, Georgia has succeeded in building a modern economy, a consolidated democracy, and an important player on the international stage (as one of the largest contributors to NATO and UN peacekeeping operations). Modern Georgia is an advocate for international law, democratic principles and human

rights with a firm attachment with the West. Today, we highly value the United Kingdom’s unwavering support for Georgian sovereignty and territorial integrity, as well as its strong voice on the growing fundamental human rights violations Russia is committing against the Georgian people living in our Russian occupied regions of Abkhazia and Tskhinvali. Georgia is a proud ally of the United Kingdom as a like-minded partner in the face of common malign influences. In January 2021 the Georgia-UK Strategic Partnership and Cooperation Agreement came into force engineering a post-Brexit collaboration framework. Georgia became one of the first countries to sign a comprehensive agreement of this kind with the United Kingdom that demonstrates continued dialogue and engagement between two partner states. Amidst an ever-changing and challenging international setting, the strategic partnership between Georgia and the United Kingdom is more pertinent than ever before. This landmark Agreement gives impetus to drive forward and enhance our existing patterns of collaboration in: defence and security, conflict resolution, Georgia’s Euro-Atlantic integration, free trade, energy, tourism, environment, education, science and culture. As Ambassador of Georgia to the United Kingdom of Great Britain and Northern Ireland, I am humbled to work towards reinforcing longstanding bonds, enhancing the scope for greater cooperation and nurturing people–to-people contact. In 2022 we celebrate the 30th anniversary of the reestablishment of diplomatic relations between Georgia and the UK. I am happy to continue to work with my counterpart, British Ambassador to Georgia, Mark Clayton, on strengthening and promoting our bilateral ties in 2022 and beyond. “Who seeks not a friend is his own foe” reads Marjory Wardrop’s translation of The Knight in the Panther’s Skin – a medieval Georgian epic poem by Shota Rustaveli that stands as a reference for the deep rooted ethos of the Georgian people friendship, love, equality and the struggle for freedom. We cherish our friendship and partnership with the United Kingdom that has translated into sharing the common values that underpin democratic societies and taking joint efforts in the international arena over the years. I look forward to the next thirty years of F friendship and many more to come.

GEORGIA

A wide-ranging partnership By H.E. MARK CLAYTON Her Majesty’s Ambassador to Georgia

N MARK CLAYTON has been Her Majesty’s Ambassador to Georgia since 2020. Prior to this, he has served as Deputy High Commissioner to Bangladesh from 2014-17 as well as Deputy Head of the FCO’s Counter-Terrorism Department from 20102014. He has completed postings in Kabul and Moscow, and has also worked as Head of the International Team in the Office for Security and Counter-Terrorism in the Home Office.

The title page of the Strategic Partnership and Cooperation Agreement between the United Kingdom and Georgia

o matter where in the world I have worked, it has been an honour to represent my country overseas. But I can think of few places where it is better to be Ambassador than Georgia, as it celebrates its 30th anniversary of independence. The roots of the UK’s relations with Georgia reach back into the past. Douglas Freshfield’s books about his travels in Georgia helped raise Georgia’s profile with a British audience in the middle of the 19th century. And of course through their translations of Georgia’s classic literature the wonderful work of Oliver and Marjory Wardrop did much to bring the richness of Georgia’s culture to life for English-speakers. It was this experience that led to Sir Oliver Wardrop being appointed as the first British Chief Commissioner of the Transcaucasus, when the UK first established diplomatic relations in 1919. Sadly the UK presence in Georgia ended with the Bolshevik Invasion in 1921, although Sir Oliver continued his life-long love for Georgia, including through support to the Wardrop collection of Georgian material at the Bodleian library in Oxford. Sir Oliver and Marjory Wardrop’s enthusiasm for building closer ties between the UK and Georgia is honoured today through our continuing “Wardrop Dialogue”, the annual formal strategic dialogue between the UK and Georgia. Ties between the UK and Georgian people began to

be re-established in the late Soviet period – twinning relations between Bristol and Tbilisi were launched in 1988, and between Newport and Kutaisi in 1989, while the formal re-establishment of diplomatic relations took place in 1992. From the very earliest days the UK established itself as a strong supporter of Georgia’s independence, its sovereignty and territorial integrity. Since then, Georgia has lived through some significant challenges. But throughout the 30 years since independence, the UK’s support has remained steadfast. And our partnership has gone from strength to strength. Today, the Strategic Partnership and Cooperation Agreement between the United Kingdom of Great Britain and Northern Ireland and Georgia, which came into force in January 2021, forms the bedrock of our bilateral relations. It covers the breadth and depth of our bilateral cooperation, in all fields from defence and security to people to people links. The UK’s relations with Georgia are particularly strong in the field of security and defence. Having fought together in Afghanistan, our troops are well practised in working together in tough circumstances. The UK is at the forefront of NATO’s support to Georgia’s NATO membership plans. We stand by the commitment made in Bucharest in 2008, that Georgia will one day become a member of the alliance. And we continue to lead by example in delivering on that promise, from leading the drive to develop the Substantial NATO-Georgia Package in 2014, to delivering practical support on a daily basis through both NATO and UK national channels. Importantly, and particularly key in an age of hybrid warfare, the UK is working closely with Georgia on cyber-security and countering disinformation. The UK remains committed to supporting Georgia in finding a long term, substantive resolution of its protracted conflicts. While remaining steadfast in our support for Georgia’s sovereignty and territorial integrity, we continue to support a range of practical measures aimed at delivering practical humanitarian assistance to those living in the conflict affected areas, and fund a range of conflict management and peace-building projects to support the Georgian government’s efforts to engage and reconcile communities split by conflict. Support for Georgia’s continued democratic

progress remains in many respects at the heart of the UK’s relationship with Georgia. We maintain strong, vibrant relations across the political spectrum in Georgia, and engage regularly with all parties to encourage them to overcome polarisation and secure the consensus needed to tackle Georgia’s remaining challenges. This is also essential to deliver progress towards the EU and NATO membership the Georgian people want. We continue to invest in Georgia’s public administration, to ensure that it remains able to develop policies and then deliver them in a way that meets people’s needs. Throughout all we do the UK remains a strong advocate of respect for human rights and gender equality. Although Georgia has made good progress in many areas, more remains to be done to support equal rights and opportunities for all, to promote and empower female leaders, and to promote tolerance, in particular for the LGBTQ+ community. The UK is proud to fly the rainbow flag in Tbilisi during Pride, and we look forward to a strong Georgian delegation at the UK’s “Safe to be me” conference later this year. This would be a strong show of support for the rights of Georgia’s LGBTQ+ community, a particularly important signal following the violence and disruption that blighted last year’s Pride in Tbilisi. Trade and Economic relations will remain an important element in our relationship. The United Kingdom is one of the most significant investors in Georgia’s economy. Total trade in goods and services between the United Kingdom and Georgia amounted to £196 million for the year to mid 2021, representing an increase of 16.7 per cent over the previous year. Total exports to Georgia were £152 million in the year to mid 2021 and mark an increase of 11.8 per cent. Underpinning all of the above are strong and wide-

ranging links between the UK and Georgian people. Through the British Council’s work with the Ministry of Education we are supporting a transformation in English language skills among Georgia’s teachers of English. This is bolstered by a wide-ranging programme of English language teaching delivered by the Council itself, alongside the provision of UK examinations services, allowing Georgian students to access both the very best of English language teaching, together with the opportunity to gain internationally recognised qualifications in a range of subjects. This is complemented by a wide range of scholarships supported by the UK Government, which gives the very best Georgian students the ability to further their learning in the UK. We are working to create viable career pathways for young people in the arts, supporting cultural leaders, contributing to Culture and Creative Industry policymaking, and brokering new partnerships between arts organisations in the UK and Georgia. Yet more could be said about the thriving relations between the UK and Georgian people. In any number of fields – from tourism and travel, to academic research, and through our vibrant twinning associations – the UK’s links with Georgia are going from strength to strength. Georgia and the UK have achieved much together in the first 30 years of Georgia’s independence. And I remain optimistic about the future. For the first time in a long time Georgia has a period ahead of it without the distraction of elections. This is a key opportunity for Georgia’s political leadership to pull together and make progress on a wide range of areas where progress is essential if Georgia is to meet its objectives of EU and NATO membership. The UK will be there, F alongside Georgia, every step of the way.

Georgia and the UK have achieved much together in the first 30 years of Georgia’s independence

The Port of Batumi is the largest container, ferry and general cargo seaport in Georgia

MRMU Ltd is a commercial property development and investment company operating across the UK and internationally in Georgia. MRMU’s head office is located in London with international offices in Tbilisi and Batumi. MRMU started working in Georgia more than 20 years ago with a coffee roasting business. This involved building a factory on the outskirts of Tbilisi and subsequently the construction of a furniture distribution centre, also in Tbilisi. Current activity is focussed largely on Batumi and the ever-increasing tourist market. To date MRMU has invested approximately $50m in Georgia and has major projects in the pipeline with an estimated value of more than £100m. The MRMU Network Creating long-term partnerships lies at the heart of MRMU operations. Open communication, understanding of local needs and the desire to create positive change is underpinned by a sound financial position and clear ROI strategy. MRMU works with a wide network of trusted partner consultants and this gives the company the ability to take on a diverse range of projects.

“MRMU is committed to strengthening its relationships within Georgia, investing in innovative projects and creating long term employment – and as each project comes to fruition, we are committed to spreading the proceeds back into the local economy. Within Georgia, the MRMU ethos is to invest and then reinvest.” Mark Upton, Founder of MRMU Ltd

Mark Upton, MRICS Founder/Director of MRMU Ltd Mark is drawn to entrepreneurial schemes, sites or buildings that make a positive difference – be that through their use of progressive design, their economic impact on the local area, or the long-term employment opportunities they generate. Mark’s other business interests include a recent joint venture franchise through Costa Coffee and currently with Co-op.

Zurab Naskidashvili MRMU Group Director – Georgia Zurab heads up MRMU activity in Georgia in the cities of Batumi and Tbilisi. He is an economist by profession and has 20 years experience in the hospitality and construction sectors, having ownerships in the Alphabet Tower restaurant and nightclub, and the former Bank of Georgia for an IHG Indigo Hotel. Zurab has been actively working in the Caucasus and Eastern European regions and is currently heading up several large projects in the Adjara region, he is instrumental in managing the Georgian businesses and their development.

MRMU PROJECTS IN GEORGIA

Mziuri Gardens The Mziuri Gardens complex is a new development currently under construction in the climatic spa resort of Makhinjauri, 6 km to the northwest of the city of Batumi. It has direct walkway access to a private beach and the clear water of the Black Sea and sits against the backdrop of picturesque mountains. This complex is aimed at those seeking fresh air and a healthy lifestyle. The development consists of two 15-story and one 17-story residential block and will also include a 5* Crowne Plaza hotel and Wellness Spa complex. It will have indoor and outdoor swimming pools, fitness centre, children’s play areas, café bars and restaurants. All of the apartments will have spectacular, panoramic views across the sea at the front and the beautiful mountains and woodland behind. Preservation of the local landscape and its unique features has been a top priority during the development process. The whole of the residential complex is fully accessible and offers a diverse range of facilities, amenities and services for people of all ages. Energy efficient materials have been used throughout the construction including thermal and hydro insulation for the façade of the buildings. The complex has been developed in full compliance with resolution 41 fire safety regulations and once complete will benefit from 24/7 video surveillance and on-site security. The project is currently under construction and is due to be completed in June 2022.

Batumi Wellness Spa Batumi Wellness Spa is part of the Mziuri Gardens complex. It is a thermal bath destination, which will showcase the natural resources of the area. Sulphur water was discovered in the region over a century ago and healing baths have been a draw for visitors ever since. The development will offer top quality hotel accommodation and facilities based around indoor and outdoor thermal pools. The complex will stretch over 15 000 square metres, a major part of which will be a lush green garden with 100 year old pine trees and other native plants. The project is currently under construction and is due to be completed in 2023.

MRMU PROJECTS IN GEORGIA (cont.)

Boutique Hotel Indigo, Batumi Old Town In October 2019 InterContinental Hotels Group signed a franchise agreement with Star Capital LLC to open Hotel Indigo Batumi Old Town. Hotel Indigo is a group of unique boutique hotels, each positioned in a culturally diverse location enabling guests to discover some of the world’s most inspiring neighbourhoods. The fantastic architecture of the Hotel Indigo, Batumi Old Town building is eclectic and includes elements of Art Nouveau, NeoGothic and Baroque reflecting the rich history and multiple cultural layers of the city. It was originally constructed in 1900 and was formerly home to the National Bank of Georgia with its handsome façade including an ornate astronomical clock. The 72-room hotel will be sensitively developed to preserve the building’s historic features. Located in Old Batumi, the hotel is surrounded by narrow cobbled streets and 19th century mansions, many decorated with intricate mosaics and stained windows. It is close to many famous landmarks including the Statue of Love, the Batumi Art Museum and Batumi Botanical Garden.

Alphabet Tower Restaurant The Alphabet Tower restaurant was opened in July 2016. The revolving restaurant is at the top of the 130-metre-high, 48 story Alphabet Tower in Batumi. Making a 360 degree turn every hour, it has magnificent views of the City skyline and surrounding area. The tower symbolizes the uniqueness of the Georgian alphabet and people. The iconic restaurant is a favourite among locals and tourists for its seasonal tasting menus. The lounge on the top is also an ideal place to enjoy cocktails or desserts.

MRMU Ltd, 3rd Floor, 18 Savile Row, Mayfair, London W1S 3PW +44 (0)207 465 5110 enquiries@mrmu.uk www.mrmu.uk

GEORGIA

Transparency and success Interview with VAKHTANG BUTSKHRIKIDZE Chief Executive Officer, TBC Bank

VAKHTANG BUTSKHRIKIDZE joined TBC in 1993 and became the CEO of the company in 1998. He is also a member of the Supervisory Boards of the Association of Banks of Georgia and is Chairman of the Financial Committee of the Business Association of Georgia. He has been internationally praised for his achievements and received a number of awards including the Special Award for Responsible Capitalism in Adversity from FIRST.

long with the thirtieth anniversary of the Georgia-UK relations another important milestone is approaching. Three decades after opening its first branch TBC has become an uncontested financial leader in the region resonating with the country’s independence and advanced financial services. Today, TBC is a forward-thinking, tech-driven company with products and services that are placing Georgia on the global innovative map. Since 2014, TBC Bank has been listed on the London Stock Exchange and moved to the premium segment in 2016. Today, it is a constituent of FTSE 250 Index and a member of the FTSE4Good Index Series. FIRST is no stranger to the company’s accomplishments as in 2019 – HRH Princess Anne presented Vakhtang Butskhrikidze, TBC CEO, with the Award for promoting Responsible Capitalism in Adversity at the FIRST’s annual Award for Responsible Capitalism. On the eve of celebrating TBC Bank’s thirtieth anniversary, Vakhtang Butskhrikidze discusses ambitious international expansion plans as well as achievements at home in Georgia. Can you please give us an overview of the company? Serving around 92 per cent of Georgia’s adult population, TBC has a significant role in Georgia’s economy. We account for 40 per cent total assets to GDP and 28.2 per cent loans to GDP, and have leading market shares in Georgia’s loans and deposits of 38.1 per cent and 37.8 per cent, respectively. Besides, the company holds dominant positions in major business lines, comprising retail, corporate and MSMEs, with a range of financial services, including traditional banking and innovative customer-focused solutions. We have several large-scale programs supporting entrepreneurs, emerging companies, and established businesses. Our “startaperi programme”, designed to stimulate start-ups, covers more than 34,800 registered companies. Furthermore, with over 8,000 employees in a country with population of 3.7 million, TBC is a leading Georgian employer. I am indeed particularly proud of our team and everything it has achieved throughout the years. Also, we are actively investing in new technologies and developing Georgia’s tech talent as well as advancing sustainable solutions and fostering innovative thinking: up to 10 per cent of our employees are part of our tech teams.

How have things changed since TBC Bank listed on the London Stock Exchange main market in 2014? I’d stress the robust corporate governance built around the traditions of the LSE listing. We have become a role model and benchmark of transparency and success not only in the country, but across the region. We have paved the way for other corporate entities to fulfil similar aspirations, make necessary changes and benefit from new opportunities. TBC is further strengthening ties with British partners. We have introduced the country to UK investors, allowing them to become familiar with the market dynamics: 30 per cent of our investors are British funds, which through investment in TBC, contribute to the development of the Georgian economy. Moreover, TBC’s Supervisory Board Members stand out for their professional accomplishments at their respective companies in the UK. Their experience, shared knowledge and expertise are of great value to TBC’s current and future strategies. What are TBC’s international plans and how has the company established itself outside Georgia? Our long-term strategy is to use our digital platforms to expand into carefully selected new markets. In 2020, TBC expanded digital operations outside Georgia, entering new markets in Uzbekistan, becoming thus the first mobile-only bank in the country. Our highly digitalized and asset-light strategy facilitated TBC UZ to serve customers in Uzbekistan mainly through our online platform ‘Space’. Next generation physical locations across 12 cities in Uzbekistan are used primarily for client relationship purposes. Space’s flexible digital platform allows for rapid scale up and customer reach. TBC UZ currently has over 1 million users and a growing team of 700 employees. In addition, we recently signed a Memorandum with EBRD and IFC in which each institution will acquire a 20 per cent stake in TBC UZ to support its operational growth and promote international corporate governance standards in the sector. TBC is constantly transforming itself. With cuttingedge tech capabilities, geographical digital banking expansion, and strategies supporting growth and sustainability, TBC is on its way for a lasting leadership not only in the country, but beyond. It has played a crucial role in making the history of the independent Georgia and will undoubtedly keep positioning the F country among the most advanced in this field.

GEORGIA

Strong parliamentary relations By GIORGI KHELASHVILI Chair, Georgia-UK Friendship group, and Deputy Chair, Foreign Affairs Committee in the Parliament of Georgia

G GIORGI KHELASHVILI serves as member of Parliament of Georgia, in the Georgian Dream party, and currently holds the position of Deputy Chair of the Foreign Relations Committee. Prior to this, he was Director of Research Centre, Parliament of Georgia from 2019-2020 and Adviser to the Speaker of Parliament of Georgia from 2017-2019. He held the position of Deputy Chief of Mission at the Embassy of Georgia in Washington DC from 2013-2017.

Signing of the UKGeorgia Strategic Partnership and Cooperation Agreementwith HE Davit Zalkaliani, Minister of Foreign Affairs for Georgia, and Rt Hon. Dominic Raab, then Secretary of State for Foreign and Commonwealth Affairs of the United Kingdom

eorgia and the United Kingdom have developed close and fruitful relations that benefit both our nations but also rest on common values and a shared understanding of broader international and global issues. Georgia and the UK have stood shoulder-toshoulder in Afghanistan militarily, and have joined forces politically multiple times over the pressing issues of international significance. This friendship already spans three decades, ever since Georgia became independent in 1991 and the Georgia-UK diplomatic relations were established the following year. The UK’s invaluable support rendered to Georgian statehood manifests itself in a steadfast backing of Georgia’s sovereignty and territorial integrity at the most important international gatherings as well as in daily diplomatic interactions throughout the world. This support is well known and highly appreciated not only among the Georgian political class but among the general populace. This gratitude adds to the sympathy that Georgians have historically always felt towards the UK: appreciating British literature, culture, and art, as well as the British people’s world-renowned respect for cultural traditions, something that Georgians also cherish. In the last few years, Georgia made significant strides toward stronger institutions, greater democracy, and a more open economy. A deeper contact with the UK has made these endeavours ever more successful, starting from Britain’s contribution to strengthening Georgia’s national security, bolstering Georgia’s vibrant civil society, and diversifying Georgia’s foreign economic

ties, among others. The UK’s invaluable and generous help, through various educational programmes and scholarships, in raising a new generation of young Georgian professionals and scholars has certainly contributed to what Georgia has become – an aspiring member of the European and Euro-Atlantic community of nations and the recognised frontrunner in regional democratic and economic transformation. Today, Georgia stands with the UK, being one of the earlier signatories of the new comprehensive Strategic Partnership and Cooperation Agreement, as a follow-up to Brexit developments. Our strong ties in trade, tourism, education, science, and culture lay a solid foundation for the forthcoming decades of solid friendship. Parliamentary relations between our countries build on this strong ground, bringing together not only members and staff of the two Parliaments but also the great democratic experience of British Parliamentarianism. Our two countries are set to benefit from this promising relationship. As a young democracy, Georgia seeks to benefit from the progressive agenda that the UK has to offer, especially in the fields that go beyond traditional regional or international issues, encompassing the agenda of the future: the problems of preserving global environmental health, protecting human rights, and achieving ever greater equality. Standing firmly on these achievements and intentions, at the thirtieth anniversary of our diplomatic relations, we look forward to developing even closer and more productive relations between F Georgian and British Parliaments.

GEORGIA

Forging strong UK-Georgia ties By JONATHAN DJANOGLY M.P. Chairman, All-Party Parliamentary Group on Georgia

R JONATHAN DJANOGLY is the Chairman of the APPG on Georgia and has been the Conservative Party Member of Parliament for Huntingdon since 2001. He has also served as Secretary of the All Party Parliamentary Group on Corporate Governance and Joint Chair of the All Party Parliamentary Group on Corporate Responsibility, and from 2010-2012 he was Parliamentary Under-Secretary of State for Courts and Legal Aid. He holds a Bachelor of Arts in Law and Politics and was admitted as a solicitor in 1990.

Ever closer ties between the United Kingdom and Georgia

elations between the United Kingdom and Georgia have never been better and the prospects for our two countries to create even closer ties are bright. It is of note that post-Brexit, when the UK started its process of recreating trade deals with the dozens of countries that had signed deals with the EU, it was Georgia that signed up first ahead of the pack. This showed the success of diplomatic interaction and developments under the “Wardrop dialogue” initiative over recent years. Indeed, as part of this initiative, the dialogue was extended beyond Ministers to the Parliamentary level and meetings now take place between our respective legislators. Furthermore, Georgian civil servants visit Whitehall to learn how the UK system works and Georgian legislators have visited to learn how our Parliamentary Committee system works. At 30, Georgia is a young democracy, but one which has been keen to improve its democratic processes and institutions. That’s not to say that they are quite there yet, but the same could be said for any country. Aided by established democracies, Georgia continues to move in the right direction. Certainly, for a medium or longer term assessment, it is direction that counts; and that direction for Georgia is looking West. Indeed, you will be hard pressed to find any mainstream Georgian politician of any party (and they have many) who does not aspire for their nation to adopt NATO and EU membership. Ongoing close involvement with NATO, adoption of an Association

Agreement and visa rights with the EU are all helping Georgia forward on their desired path. Ongoing reform to Georgia’s legal and judicial system continues to be a contentious issue. Yet freedom of speech, press and association are maintained and Georgia rates highly in indices for low corruption levels and ease of doing business. Naturally, our All-Party Parliamentary Group for Georgia is keen to encourage the UK to assist where possible and to remind Ministers that in standing up for Georgia and against the aggression of Russia and its occupation of Georgian territory, we are effectively protecting our own institutions and democratic values. At the same time, most Georgians are not obsessed with Russia on a daily basis. Yes, they understand the need to improve their local military and cyber defences and also contribute to international peacekeeping efforts, as shown by their significant military contribution in Afghanistan. Yet, they are just as much if not more concerned with making friends around the world, enhancing trading conditions and encouraging investment and improved living conditions for their citizens. With a stunning and very diverse countryside and a unique heritage, culinary and cultural offering, tourism has unsurprisingly become the mainstay of Georgia’s economy together with its agriculture and wine production. European cash and know-how have assisted investment in production, small loans for SMEs, environmental and power programmes and infrastructure. The wine culture is taking off as producers switch away from Soviet era mass production to a high quality product, better suited to the generally smaller size vineyards. Transport options and infrastructure as well as the hotels and hospitality provision have also improved dramatically over recent years. However, Covid will have hit tourism hard, which is why I now frequently hear Georgian policy makers talking about the need to direct private and public investment towards more tech and research type business and education. Such a policy could be transformative for a smaller country that is instinctively creative and rich in design ability. All being well, later this year, I shall be leading a group of British Members of Parliament to Tbilisi to mark the 30th Anniversary of Diplomatic Relations and to continue to build on what has become a lasting F friendship between our two countries.

Georgia:

The unsung birthplace of wine W

hilst it may be little known amongst oenophilists and connoisseurs today, one plucky little nation in the South Caucasus is the inventor of one of the world`s most treasured commodities: wine.

Located on the east coast of the Black Sea, the country of Georgia is the democratic jewel in the crown of a region where politics and culture are ever-changing. Yet, despite the gale-force winds of history, there survives in Georgia a congenital passion for winemaking whose roots are truly ancient. Recent archaeological discoveries have revealed that Georgia is likely the oldest wine producer in the world, with an unbroken tradition stretching back 8,000 years. It is sometimes said that to taste a country`s food and drink is to have a taste of the country itself, and this is nowhere truer than in Georgia; the birthplace of wine.

Georgian wine today

Today, the lion’s-share of Georgian wine is produced on the lustrous estates of Askaneli and Chateau Svanidze. The wine they produce is both elegant and subtle, making them the products of choice for many premium wine merchants and fine-dining establishments.

Askaneli

‘Askaneli’ derives its name from the picturesque village of Askana – located in western Georgia in the beautiful region of Guria. Despite its small size, this community has been a mecca for quality wine ever since its ancestor, Antimoz Chkhaidze, first fell in love with the grape and vine. Antimoz would go on to create many new varieties of wine which would Europe-wide acclaim for their unique flavour. The cellar where he concocted these new recipes is still in the centre of Askana today, a monument to a centuries-old passion which has stood since 1880. Antimoz`s work has since been continued by his descendent Gocha Chkhaidze, founder of Askaneli Brothers. He says: “When my ancestor began producing pure and aromatic wines in Guria, a legacy was born. I spare no effort in continuing his work. Today, we bottle over 60 denominations of wine at three cutting-edge factories, and have introduced Antimoz`s creations to consumers around the world”. Recently, Gocha has teamed up with Loïc Pasquet, the worldfamous Bordeaux vigneron whose humble Liber Pater Vin De France fetches prices of roughly £26,000 per bottle. This French superstar has turned his eyes to Georgia with the aim of making top-class wine in partnership with Askaneli.

Château Svanidze

In the heart of Kakheti region overlooking the great Caucasus Mountains sits Château Svanidze. This idyllic expanse of orchards and vineyards has been producing wine for 150 years. It is also a regular haunt for presidents, prime ministers, and celebrities, who come to sample the distinctly Georgian delicacies they have heard about through the grapevine. For four generations, the Svanidze family has worked to revitalise winemaking in the region by blending ancient practices with modern techniques. George Svanidze, family patriarch and owner of Château Svanidze says: “This creative mixing of old and new brings a uniqueness and approachability to our wines which is unmatched anywhere else”.

Gocha Chkhaidze Founder of Askaneli Brothers

A historically aristocratic family, the Svanidzes descend from 18th century Georgian King Erekle II. These noble roots has helped put this business on the radar in many elite circles. Nevertheless, it is the excellence of their wine and the passion of their craft which has cemented Château Svanidze`s reputation as a first-class winemaker.

‘Our goal and vision is simple: we aim to bring these excellencies from Georgia in front of as many people as possible, once it will be done, the products will speak for themselves and there will be a touch of Georgia, like with Italy, in every household’ Giovanni Maria Rimonti & Natik Musaev, Co-founders of Gardabani Group

Khomli

Khomli is another excellent producer in the north-western Lechkhumi region of Georgia. It boasts an impressive ultra-premium portfolio – with bottles fetching up to the hefty price of £900. The next time you find yourself in London with an urge to live like Bacchus, perhaps swing by the appropriately named Hedonism Wine in Mayfair and grab yourself a bottle.

Building bridges

Of course, for many Georgians wine does not just represent the past and present of their country, but also its future. The London-based wine and spirits merchant Gardabani Group, for example, sees their trade as a crucial cultural bridge between Georgia and the world. The company is now the largest net importer of Georgian wine into the UK, introducing Château Svanidze and Askaneli wines to many top-tier British restaurants, hotels, and bars. Natik Musaev, Georgian entrepreneur and co-founder of The Gardabani Group, says: “Wine is a visiting card for our country. By sampling the best vintages that Georgia has to offer, customers are also imbibing our history and culture. I consider it a personal privilege that my work is helping to bring the great tradition of Georgian winemaking to the world – and hopefully tempting some of the world to my own country`s doorstep as well!” Just as wine has acted as a vital social lubricant during countless skull-shatteringly dull social occasions since time immemorial, Musaev believes his business has the potential to grease the wheels of cooperation internationally:

George Svanidze Owner of Château Svanidze

“The UK is one of Georgia`s key strategic allies, but I believe there is scope for an ever-greater partnership between our countries. Wine has always had the power to bring people together, and the same can be true of nations who choose to share in its delights together”. Well, it’s certainly a unique form of diplomacy; one which we suspect will be overwhelmingly popular in more than a few circles in Westminster! ■

‘Nulla di grande e’ mai stato fatto senza passione’ – ‘Nothing truly great has ever been done without passion’

116 Pall Mall, SW1Y 5ED, London, UK +44 20 7101 0669 natik@gardabani.com giovanni@gardabani.com www.gardabaniwines.co.uk

‘We firmly believe that our goal is clearly in sight due to our meticulous selection of what we know are truly special products, which represent the finest craftmanship, love for winemaking, and quality. We have selected what we truly love and believe is the best, which gives us a relentless desire and energy to ensure we can transmit such love to as many people as possible. We say this with the greatest of confidence, and know our products will always deliver memorable experiences, as we know our products are those: truly great and truly made with passion.’ Giovanni Maria Rimonti, Co-founder of Gardabani Group

GEORGIA

Hidden gem of the Caucasus At the intersection of Eastern Europe and Western Asia, Georgia offers diverse landscapes and abundant cultural gems to please every kind of visitor

he so-called Hidden Gem of The Caucasus, Georgia, has been attracting more and more visitors lately. Offering diverse, breathtaking experiences, the country is on the bucket list for adventure seekers worldwide. Georgia is located between Europe and Asia and brings a perfect marriage of both cultures. Due to its geographical location, the country has access to European, Middle East, and Asian countries within a four hour flight time. Tourism Tourism is one of the fastest developing sectors of the Georgian economy. It’s one of the main contributors to the increased wellbeing of the country and has a high potential for further development. Over the past years, the sector had grown dynamically with record results in 2019, when the number of international travelers visiting Georgia was almost three times higher than the country’s entire population – the number of international travelers reached 9,357,964 in 2019 while Georgia’s population in 2019 was 3,723,500. The increase in travelers was primarily determined by the entrance of new airlines – the introduction of direct flights to new destinations, drastic improvement of infrastructure, a liberal visa policy, marketing campaigns, and development initiatives.

Above: As of 2016, the Georgian scripts are included on the UNESCO Representative List of the Intangible Cultural Heritage of Humanity

Adventure With the Caucasus mountains and tropical beaches, Georgia has diverse climates and feels like a paradise for every kind of traveler. It’s home to Europe’s highest permanently inhabited settlements: Bochorna, Tusheti at 2,345 meters above sea level, and Ushguli, Svaneti at 2,119 meters above sea level; included in UNESCO’s World Heritage List. Being rich with snowy peaks and slopes, tropical beaches, captivating landscapes, lakes, and waterfalls, Georgia offers numerous adventures: Hiking, paragliding, rafting, climbing, horseriding, birdwatching, sky gazing, or just strolling through the magnificent forest, reconnecting with untouched nature. Culture Georgia offers diversity not only in nature but also in its unique culture and centuries-old traditions which are still thriving today. The earliest European remains, dating back to 1.8 million years, were found in Dmanisi in the south of the country. Georgia has its own language and alphabet. It’s one of the oldest languages in the world and is the most widely spoken of the Kartvelian languages. Georgia is home to four sites from UNESCO’s World Heritage List; and four of the country’s traditions are included in The Intangible Heritage List. Georgian cuisine offers a wide variety of dishes, perfectly suitable for every type of feast. Local food is balanced, healthy, and diverse, flawlessly bringing together spices, nuts, meat, cheese, and vegetables. Georgians use the centuries-old tradition of storing and aging. The traditional cheese, Dambalkhacho, is unique, and is produced by a complex process of underground preparation methods. Making Dambalkhacho takes up to 6 months, but Georgian hosts are brilliant in preparing fast food as well; they’re always ready for spreading a peerless “Supra.” “A guest is a gift from God.” The famous Georgian saying perfectly describes the extremely welcoming spirit of locals. Almost every family has its own house wine, ready for eager guests. The country has successively preserved its unique wine-making traditions for over 8,000 years. The ancient Qvevri wine-making method, which incorporates fermentation and storage of wine in clay vessels, is part of UNESCO’s intangible cultural heritage. The traditional “Supra” can’t be imagined without the spectacular sound and vision of the world-renowned polyphonic singing and traditional dancing. In 1977, the Georgian song “Chakrulo” was sent into space as a part of NASA’s message to the universe. No wonder National Geographic listed Georgia among its rising destinations for 2021. The warmest emotions await you in Georgia. For more information visit www.georgiatravel.ge F

Above: The Egrisi mountain range is home to beautiful lakes and rivers, and is a popular trekking area for intrepid adventurers

Above: Khachapuri is a popular traditional Georgian cheese bread, both in restaurants and as a street food

Above: Batumi Botanical Garden is located above the Black Sea, 9km from Batumi city centre, and boasts a wide variety of flora

Georgia:

A Place You Will Call Home T

he country of Georgia is a natural gateway to the region, with its strategic position between Europe and Asia. Over the last decades, Georgia has become synonymous with successful reforms and rapid development and now, it is on track for even bigger things in the future, such as becoming a full-fledged EU member state. Making Georgia the best place to do business is a strong commitment of the country and the government. This fact is backed up by various international rankings and ratings, such as Georgia being on the 7th position in the Ease of Doing Business index by World Bank, one ahead of UK. It takes just one day to do hundreds of administrative processes, including registering a business or property. Also, noteworthy that Georgia ranks 12th in the Index of Economic Freedom by Heritage Foundation, 3rd Least Tax Burdened Country - World Bank and 8th in Lest Restrictive Investment Destination – OECD. There are many reasons why investors would benefit from doing business in Georgia, but just to highlight, here are a few of our favourites: Access to skilled labour and talented young individuals Although a small country, Georgia has a large concentration of universities, which means companies have easy access to the skilled talent they need. 64 Higher education and 66 Vocational education centres produce fresh professionals, with over 120 thousand students graduating in the last 5 years. Georgia is about to further strengthen its position as an educational centre in the region with the new Kutaisi International University, which, at full capacity will host 60 thousand students. KIU operational model was developed

in partnership with Technical University of Munich and will offer vocational, undergraduate, graduate, and post-graduate degree programs as well as research possibilities in science and technology. KIU will join other high profile universities such as Tbilisi State University, Tbilisi Technical University and Ilia University, all of which, along with San Diego State University offers ABET, ASC, WASC accredited courses in STEM fields. All these technical skills, coupled with multilingual capabilities, are well reflected in the booming international business services sector. Georgia is ready to offer companies a skilled workforce and a highly motivated talent pool. The perfect location With its strategic location and well-developed infrastructure, 4 seaports, 3 international airports, internationally connected railway (connecting China and Turkey), the highway from border to border, Georgia is well-positioned to give investors all the tools to capitalise on opportunities arising from free trade agreements and trade flows passing through the country. The government of Georgia spares no effort to reduce trade barriers and create a more transparent trade and investment environment, integrate the country into global value chains through an extensive network of free trade agreements (FTAs) that ensures customs-free access to markets of 2.3 billion population. Most recently, UK and Georgia signed a trade continuity and strategic cooperation agreement formally known as the “UK-Georgia Strategic Partnership and Cooperation Agreement”, which will ensure parties benefit from a continued preferential trade regime after Brexit.

Other notable agreements include The Association Agreement with EU, which was signed and ratified in 2014 and included the Deep and Comprehensive Free Trade Area Agreement (“DCFTA”). In 2016, Georgia signed a free trade agreement with EFTA countries, giving Georgian products duty-free access to markets of Iceland, Liechtenstein, Norway and Switzerland. Since then, Georgia has concluded free trade agreements with the People’s Republic of China (including Hong Kong, China). Additionally, Georgia has FTAs with CIS countries that include Armenia, Belarus, Moldova, Kazakhstan, Kyrgyzstan, Russia, Tajikistan, Ukraine, Uzbekistan and Turkmenistan, as well as all its neighbours and strategic partners, Turkey, Azerbaijan and Armenia. General Schemes of Preference for Georgia with the US, Canada, and Japan have also been applied for, with the result being lower tariffs on 3,400 goods exported from Georgia. Furthermore, a proposed series of FTAs, including Georgia-Israel, Georgia-India, Georgia-South Korea and Georgia-US, are also in the works. Cost Competitiveness One of the lowest utility costs in Europe, very competitive salaries and one of the least burdened taxation system, make Georgia one of the most cost-effective location in Europe and the wider region. Over 70% of electricity is generated from hydro and wind, making electricity not only cheap but also green. The country has four free trade zones, but the nominal land costs and government support programs mean that the country is almost one big free zone already. Since 2017, corporate profit tax on reinvested profit is 0%,

with the standard rate already being very low, 15 %. The only taxes paid based on employees’ salary are personal income tax (20%) and pension plan contribution (2%). Georgia’s stripped-down and streamlined tax scheme has produced the 3rd lowest overall tax rates in the world according to the World Bank Group. Paying taxes is simple and transparent. Companies pay taxes online, through commercial banks, minimising procedures and bureaucracy. Taxation is just one of many examples of ease of doing business. In fact, one of the first thing that you notice while getting started in Georgia is how simple and transparent everything is. Georgia ranks 7th in Ease of Doing Business ranking by World Bank 2020 and for a good reason. This is not just a ranking, but rather something you can feel. For example, starting a business or registering a property takes only a few hours and can be done by visiting only one office. Same easiness and simplicity can be experienced while dealing with any government organisation. Getting permits or licenses or dealing with customs, everything is transparent, fair and most importantly, does not take too long. The fact that Georgia ranks 1st in terms of least need to interact with the government while doing business according to Trace International Matrix 2021, is one more proof of the low bureaucracy and pro-business environment that Georgia has created. Free Industrial Zones In Georgia, four free industrial zones (FIZs) are operating in three Georgian cities, where businesses are able to benefit from a variety of tax exemptions. For instance, if a company produces goods for export in a FIZ, it is exempt from all kinds

of taxes except personal income tax, which is paid from employees’ salaries. Additionally, free industrial zones offer lands and industrial properties for a lease of up to 50 years. Government Commitments To make new Investors welcome in Georgia, the country has different incentives on offer. International companies can apply for Invest in Georgia’s FDI Grant program and have costs inquired for employee training and infrastructure upgrades reimbursed. Companies operating in production of electrical and electronic engineering products, manufacturing of aircraft parts and components, manufacture of vehicles and equipment, business services, logistic centres and warehouses and MRO are all eligible. Together with FDI grant, manufacturing projects can acquire state-owned property (land or building) free of charge. As for IT and marine companies, looking to service clients from Georgia, corporate profit and personal tax will both be reduced to 5%. Last but not the least, for manufacturing or hospitality projects, subsidising loan interest payment or loan collateral is available. Putting Georgia on Your List With the great potential to develop beach resorts, medical and wellness destinations, winter-ski resorts, and four-

season destinations, the country experienced significant growth of international travellers and boosting demand for tourism infrastructure, as well as the increasing number of international brand hotels in Georgia. Georgia has seen a progressive growth of international visitors. Georgia received only 2 million international visitors in 2010, but in 2019, the number of visitors reached a record high of 9.4 million (7.8 % y/y growth). Taking into consideration the fact that the population of Georgia is only 3.7 million people, there is no doubt that the country has quickly become a very popular tourist destination. With its unique biodiversity, Georgia boasts rich natural and cultural resources and unites more than 12,000 historical and cultural monuments with several UNESCO World Heritage sites. The majestic Caucasus Mountains, the Black Sea coast, ancient cities, protected areas, more than 500 varieties of unique wines with an 8000-year-old wine-making tradition and one of the best cuisines in the world creates a distinctive place to attract everyone’s attention with different desires and aspirations. The rich culture of hospitality and tradition of greeting each guest respectfully creates a welcoming atmosphere for anyone looking for a great place to work, leisure, or make business. ■

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GEORGIA

Georgian wine in the UK By SARAH ABBOTT MW Founder and Director of Swirl Wine Group

SARAH ABBOTT MW is the founder and director of Swirl Wine Group, which she founded in 2006 after a decade in the wine industry. She is co-chair of the International Wine Competition and has been a finalist in the Louis Roederer wine writing competition, and was co-author of the Burgundy section of ‘The Wine Opus’, an awardwinning wine guide published by Dorling Kindersley in 2010. Today, she is widely recognised for her work with some of the wine world’s most exciting emerging regions. She is also a vocal advocate for women in the trade.

Qvevri, the large earthenware pots used for the fermentation, storage and ageing of traditional Georgian wine

More about where to find Georgian wine in the UK: www.georgianwine. uk/stockists

he UK wine trade and consumers are increasingly looking for wines with history, tradition and a back story. Georgia has been making wines for centuries, but it has only been in the last few years that its unique Qveri-style wines have captured the imagination of UK wine buyers and adventurous wine drinkers. Today, Georgia combines tradition and innovation to produce a range of wines in all styles, that are increasingly popular in the UK. Wine tells the story of its country. In the past three decades Georgia has come from civil war and great hardship to astonishing recovery. I have never seen a country that identifies itself with its wine as much as Georgia. But until relatively recently, the Georgian wine sector did not have the structures and support that we take for granted in France, Italy, Spain and Australia. And most Georgian producers have really only been focused on sustained exports to the UK for the last five years. Georgian producers are fortunate to have the support of their national wine agency, which is part of the Ministry of Agriculture. Wine is a priority product for the ministry. The country itself has transformed infrastructure and entrepreneurial expertise in the last 10-15 years. Wine is booming. The World Bank rates Georgia highly for ‘ease of

doing business.’ Investors have the confidence to support existing and new vineyards and wineries, and the number of wineries has exploded over the last five years. 2021 was the best year ever for Georgian wine exports to the UK. We are now the fastest growing of the new markets. Georgian wines are being imported by specialist on-trade suppliers, by Georgian specialists, and by national agencies. The growing number of retail listings is familiarising UK wine consumers Georgian wines. Georgian amber qvevri wines have niche but powerful appeal, and appeal to adventurous sommeliers and specialist wine boutiques. But the aromatic dry whites are increasingly popular, and such wines made from varieties including Kisi, Rkatsiteli and Mtsvane are starting to be served by the glass in restaurants. The red wines of Georgia have much to offer, and Saperavi in particular is emerging as a bit of a superstar. This deep, succulent red really appeals to UK tastes. This year we have held five virtual tastings, two virtual press trips, and a fully-booked media tasting. Despite challenging circumstances, Georgian wine exports to the UK have increased by nearly 80 per cent over last year. We are just starting to see what Georgian wines can achieve in the UK, and I think that if the marketing support and the wine quality continue as they have been to date, the UK could become a really F important market for fine Georgian wine.

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