Issue #1290

Page 1

Issue no: 1290

• APRIL 2 - 8, 2021 • PUBLISHED WEEKLY

PRICE: GEL 2.50

In this week’s issue... Renowned Georgian Folklorist Anzor Erkomaishvili Dies of Coronavirus NEWS PAGE 2

Georgia and Its Main Strategic Partner: Marking New Principles in Relations? Part 1 POLITICS PAGE 4

“Maskirovka”: Mercenaries in the Russian Hybrid Warfare Model POLITICS PAGE 5

FOCUS ON VLADIMIR POZNER The visit of the Russian influencer sparks protest and outrage

PAGE 2

Image source: ft.com

The Political Debacle Continues as Parties Once Again Fail to Agree BY TEAM GT

T

he week began with cautious optimism: after many weeks of discussion with Special Envoy of the President of the Council of Europe Christian Danielsson, and other representatives of the concerned West, the final meeting between ruling party Georgian Dream and the opposition was set for March 30. It was to be a day on which many hoped to see constructive communication, compromise, and the uniting of Georgian politicians within Parliament for the good of their country and its international reputation. But it wasn’t to be. Despite the EU mediator’s best efforts, no agreement was reached. The talks failed again. On March 29, Danielsson met with the political parties separately to prepare the ground for the next day’s meeting between Georgian Dream and the opposition. Afterwards, he stated the goal was to “find ways to accomplish the most difficult points of this mediation.” Continued on page 3

USAID YES-GEORGIA Program Presents Women Entrepreneurs from Mountainous Georgia BUSINESS PAGE 8

CENN with EU & USAID Supports Professional and Economic Growth of the Georgian Hospitality Industry SOCIETY PAGE 10

Gori Potter Keeps Tradition Alive as Part of UNESCO Days of Intangible Cultural Heritage CULTURE PAGE 11 CULTURE PAGE 11 Prepared for Georgia Today Business by

Markets As of 29ͲMarͲ2021

w/w

m/m

Bank of Georgia (BGEO LN)

GBP 11.00

Ͳ2,3%

+10,9%

GEOROG 04/21

Georgia Capital (CGEO LN)

STOCKS

GBP 5.70

+1,8%

+15,2%

GEORG 04/21

TBC Bank Group (TBCG LN)

GBP 10.18

Ͳ9,3%

Ͳ6,1%

COMMODITIES Crude Oil, Brent (US$/bbl) Gold Spot (US$/OZ)

BONDS

Price

w/w

m/m

100.08 (YTM 5.46%)

Ͳ0,1%

Ͳ0,2%

100.26 (YTM Ͳ0.82%)

Ͳ0,1%

Ͳ0,3%

GRAIL 07/22

106.24 (YTM 2.76%)

+0,1%

Ͳ0,8%

GEBGG 07/23

106.29 (YTM 3.17%)

Ͳ0,4%

Ͳ0,2%

CURRENCIES

Price

w/w

m/m

Price

w/w

m/m

64,98

+0,6%

+2,0%

GEL / USD

3,3855

+1,6%

+2,1%

1 712,20

Ͳ1,5%

Ͳ0,7%

GEL / EUR

3,9855

+0,3%

Ͳ0,2%

GEL / GBP

4,6789

+1,4%

INDICES

Price

w/w

m/m

GEL / CHF

3,6120

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Ͳ0,5%

FTSE 100

6 736,17

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+2,2%

GEL / RUB

0,0448

+0,4%

+0,2%

FTSE 250

21 435,54

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+1,0%

GEL / TRY

0,4124

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Ͳ9,3%

DAX

14 817,72

+1,1%

+5,7%

GEL / AZN

1,9914

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DOW JONES

33 171,37

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GEL / AMD

0,0064

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NASDAQ

13 059,65

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GEL / UAH

0,1211

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+2,1%

166,16

Ͳ0,1%

+0,9%

EUR / USD

0,8500

+1,4%

MSCI EM EE

Image source: EU Delegation to Georgia

Price

+1,3%

+2,4%

MSCI EM

1 310,11

Ͳ2,0%

Ͳ3,8%

GBP / USD

0,7266

+0,7%

+1,2%

SP 500

3 971,09

+0,8%

+1,8%

CHF / USD

0,9392

+1,7%

+2,6%

MSCI FM

2 439,21

Ͳ0,8%

Ͳ4,0%

RUB / USD

75,6615

+1,0%

+2,0%

GT Index (GEL)

1 582,68

Ͳ

Ͳ

TRY / USD

8,2104

+5,2%

+12,6%

GT Index (USD)

1 208,13

Ͳ

Ͳ

AZN / USD

1,6989

+0,0%

+0,0%


2

NEWS

GEORGIA TODAY

APRIL 2 - 8, 2021

Arrival of Russian Journalist Vladimir Pozner Sparks Mass Protest in Georgia BY KETEVAN SKHIRTLADZE

Image source: Folklore Center

Renowned Georgian Folklorist Anzor Erkomaishvili Dies of Coronavirus BY TEAM GT

A

nzorErkomaishvili,afamous m u s i c i a n , fo l k l o r i s t , founder and leader of the ensemble 'Rustavi', as well as a former MP, has died of coronavirus at the age of 80. He was diagnosed with COVID-19 and was being treated at the First University Clinic in Tbilisi. He was put on mechanical ventilation due to a severe condition before death. Anzor Erkomaishvili is known for his long-standing work as musical director of the folk choir Rustavi Ensemble from 1968 and work to preserve the folk singing heritage of Georgia. Born in Batumi into a musical family, whose grandfather was the Georgian folk singer Artem Erkomaishvili, Anzor fell naturally into a love of the musical

arts. He graduated from the Tbilisi State Conservatoire in 1969 and began traveling around Georgia, moving from village to village, collecting and transcribing polyphonic Georgian folk songs, particularly from the Guria region. In 1968, he founded the Rustavi Choir, which has been touring throughout Georgia and abroad for decades. His work researching, compiling and safeguarding the folk singing legacy of Georgia earned him numerous awards, including the title of Meritorious Artist of Georgia (1969), the Ivane Javakhishvili and Shota Rustaveli national prizes, Order of Honor and Presidential Order of Excellence (2020), and Honorary Citizen of Tbilisi (2014). In 2008, he was elected to the Parliament of Georgia for the ruling United National Movement party from the single-mandate district of Ozurgeti, but he resigned his parliamentary position in March 2009.

R

ussian journalist Vladimir Pozner entered Georgia on March 31 to celebrate his birthday with friends. His arrival was followed by protests from Georgian citizens. According to civil activists and part of the opposition, the Russian journalist should not have been allowed into Georgia because he “does not recognize the country's territorial integrity.” Pozner is known to have publicly stated that “Abkhazia will never become part of Georgia” following the 2008 RussianGeorgia war. Opposition and activists stood chanting outside the Vinotel hotel near the Presidential Palace, where the Russian media personality and state-run television talk show host was dining with dozens of guests on the eve of his 87th birthday. Activists were protesting the journalist's arrival in Georgia and the fact that he was allowed to violate the COVID-19 regulations. The Labor Inspectorate fined the Vinotel GEL 10,000 for violating said coronavirus rules. According to the police, all those who violated the regulations have been fined 2000 GEL, Pozner included. Activists then demanded that Pozner

leave the country. Amid the protest, the journalist and his entourage left the hotel accompanied by the police. Protestors were seen not only outside Vinotel, where the journalist was having dinner, but also at Rooms hotel, where he stayed the night. Activists threw eggs at the facade of Rooms. The Russian journalist and his guests left Georgia on a charter flight earlier than planned, on the morning of April 1. The protest drew anger from Georgia’s Prime Minister. “They actually entered the country in full compliance with the law, yet one group of our society decided to protest, a fact used to the benefit of the most destructive force, the United National Movement party,” Prime Minister Irakli Garibashvili said in response to the public outcry. He said that the protest of the leaders of the 'National Movement' and their support groups was totally unacceptable. “Vladimir Pozner, who is also a citizen of the United States, did not violate the law on the occupied territories. He often visits Georgia with a United States passport. This was his latest private visit. “As required by government decree, he and his entourage had either 'Covid passports', or negative PCR tests. Consequently, they entered the country in full compliance with the law. Regarding the gathering of a large number of guests

in the hotel-restaurant in Tbilisi, it was of course a violation, and the relevant agencies responded immediately and fined both the venue and each individual, in full compliance with the law,” Garibashvili said. A number of well-known Georgian figures also spoke out on the case. “The government allowed him in; the people made him leave,” Elene Khoshtaria, the leader of the Droa party, posted on Facebook. “Pozner's arrival in Georgia is an insult to our state. The state has specific leverage not to allow him into the country because of his statements; statements that are directed against the territorial integrity of our country,” she added. Vakho Sanaia, a journalist from TV Formula, responded to Pozner's arrival by posting on Facebook that he is not in favor of someone at the border being asked about their political views, and he had yet to meet a Georgian who hates a Russian just for being Russian. Sanaia then pointed out that Pozner is not an ordinary tourist: he is a wellknown journalist and influencer. “In fact, Pozner is Putin's most dangerous propagandist, and that’s why he works where he works. That’s why Pozner’s word matters. He’s a representative of the Kremlin. Therefore, when he says that Abkhazia will never be Georgia, he can never be a welcome guest here. His visit is insulting,” he wrote.

Coronavirus Update: Pfizer Emerges as Most In-Demand Vaccine in Georgia activity among our citizens who are over 65 years of age. There was also a lot of demand among the group which ranged in age from 55 to 65,” Tikaradze said. The Minister notes that dialysis patients are one of the highest risk groups, and noted that they will be vaccinated on the spot in the facilities where they undergo dialysis therapy. In addition to Pfizer and AstraZeneca, the country expects the delivery of the vaccine from China by the end of the week. “Next week we will have an additional vaccine from China, which is also recognized by the strict regulator of Hungary. 100,000 doses will be imported. When the vaccine is delivered, we will provide additional information,” Tikaradze told reporters. The daily numbers of confirmed coronavirus cases and virus-related deaths, have increased this week, leading to warnings that the introduction of target restrictions may again be necessary in some regions of the country, in particular, in the western Guria and Adjara regions. They urge the population to strictly follow the current safety regula-

BY ANA DUMBADZE

S

ince March 30, citizens of Georgia have been able to get vaccinated with Pfizer vaccine against coronavirus, and already Minister of Health Ekaterine Tikaradze has noted that Pfizer “has emerged as the trendiest vaccine in Georgia.” The country received 29,500 doses, intended for 14,000 people, on March 25. Currently, it is available in six multiprofile clinics in three big Georgian cit-

ies, Tbilisi, Batumi and Kutaisi. The appointments for Pfizer vaccines are fully booked in four clinics in Tbilisi until April 14, while in Batumi and Kutaisi, spots are still available for booking. Reportedly, Georgia might receive 1 million more doses of Pfizer, for which consultations with Pfizer and other manufacturers are underway; however, the exact date for this is unknown at this stage. As of April 1, 7822 people have had a jab against COVID-19 in Georgia, the National Center for Disease Control and Public Health reports, although it has not published exactly how many people

have been vaccinated with the Pfizer vaccine and how many with AstraZeneca. The agency also did not specify how many of the vaccinated are representatives of the medical field and how many citizens over 65 years of age. Georgia’s Minister of Health announced that people over the age of 55, on dialysis and citizens who had organ transplants, will also be able to take participate in the vaccination process from April 5. “The Council has made an additional decision that we will add citizens over the age of 55 to the vaccination group. This is due to the fact that we have observed a great deal of interest and good

tions, wear face masks, and maintain a two-meter distance from others. During the week, the country recorded 600-700 new cases and up to 10-15 deaths on average. The lowest numbers in new cases were reported on Monday (171 coronavirus cases, 382 recoveries, and 14 deaths), however, this was mainly conditioned by the fact that relatively fewer tests (14,298) are conducted on the weekends. Georgia reported 499 coronavirus cases, 437 recoveries, and 7 deaths on Thursday. The capital Tbilisi recorded the highest number of 264 Covid-19 cases, followed by the Imereti region with 65 cases and the Samegrelo-Zemo Svaneti region with 45 cases. The total number of confirmed cases in the country since the outbreak of the pandemic has now reached 282,260. Among them, 273,604 people have recovered and 3785 have died. The daily test-positivity rate stands at 1.74%, while it was 1.75% in the past 14 days. Currently, there are 4871 active cases of infection in Georgia.


POLITICS

GEORGIA TODAY APRIL 2 - 8, 2021

Seven Georgian Schools Join Council of Europe International Network of Democratic Schools

Source of photo: csee-etuce.org

BY KETEVAN SKHIRTLADZE

S

even Georgian public schools have joined the Council of Europe International Network of Democratic Schools, the Ministry of Education, Science, Culture, and Sports announced. After Tbilisi and Sachkhere schools, schools in Khabume, Khoni, Akhaldaba,

Sairkhi, Khashuri, and two schools of Poti were included in the list of democratic schools of the Council of Europe. The Democratic Schools Network is an open platform that aims to establish a democratic culture in schools and share successful school projects across Europe. Work on disputed issues, prevention of bullying, fighting against propaganda, disinformation and fake news and discrimination, and improving school wellbeing, are the topics that will be addressed

and discussed. “By joining the Democratic Schools Network, schools will be able to benefit from: Creating a school website on the Council of Europe Network of Democratic Schools (DSN) website/platform, Financing small projects, Participation/ support in international conferences and competitions, Piloting of Council of Europe materials, and Educational-professional connections with other schools,” the Ministry stated.

3

The Political Debacle Continues as Parties Once Again Fail to Agree Continued from page 1 “Compromise is difficult for everyone and requires political readiness to take the right steps. However, it has no alternative. The priority is the national interest of Georgia. It is the only way out of the political crisis,” the diplomat said. He also emphasized the importance of ending the current crisis in order to diversify attention and focus on important issues such as the pandemic, economy and national security. He told the parties he’d be putting a document on the table the next day, and that it was the responsibility of the leaders of the political parties to sign it. He further explained that the goal is to have a sustainable framework in place for the future. “This is a way to restore trust,” he said. “This proposal will address the need for systemic reform to increase public confidence in the electoral process and the judiciary. This is an opportunity for leaders to demonstrate their democratic maturity.” Ahead of Tuesday’s showdown, leaders of the opposition parties talked with press about the issues covered in the second-to-last meeting with Danielsson. Salome Samadashvili, member of the National Movement, stated that the issue of political prisoners, particularly the cases of Nika Melia and Giorgi Rurua, were thoroughly discussed with the EU diplomat. “Everyone, including the mediators, is well aware that without resolving this issue, there will be no room for agreement, and today we had a detailed conversation on the issue of political prisoners, the challenges in the judiciary system in the country, and the problems of justice in terms of politics,” she added. Leader of the Republican Party, Khatuna Samnidze, said, “This agreement cannot be reached without compromise, and both sides must be ready for that. There will be talk about it and there will be room for compromise when the issue of the prisoners is resolved,” Samnidze said. The meeting between the opposition and the Georgian Dream, mediated by Christian Danielsson, lasted seven hours and ended without results on March 30. The Georgian Dream blamed the opposition for the failure to complete the talks, and the opposition, in turn, blamed

the government. Former Prime Minister Giorgi Gakharia responded to the news on Wednesday. “Yesterday showed us once again that radicalism and radical positions are still the damaging factors that hindered and hinder the construction of the modern Georgian state. “We must end the political polarization and build a successful state,” Gakharia said in a statement issued on the occasion of the referendum on Georgia’s independence and the birthday of the country’s first president, Zviad Gamsakhurdia. “The referendum held on March 31, 1991, was the date of Georgia’s declaration of independence, and the beginning of the construction of a modern Georgian state. “It is noteworthy that the population of Georgia, including the regions of Abkhazia and Tskhinvali, participated in this referendum,” Gakharia said. “Statebuilding is a long and challenging process, and each of us is obliged to contribute to it. We must end the political polarization and focus on building a successful state.” Also in response to the failed talks, Lithuanian Foreign Minister Gabrielius Landsbergis posted on Twitter, saying he was disappointed with the failure of the agreement between the government and the opposition. “Grateful for Christian Danielsson and the EU for mediation mission in Georgia. Upset and disappointed that the Georgian Dream and opposition failed to reach an agreement. That sends a bad signal to friends and partners. A period of reflection is needed,” he tweeted. The British Embassy also put voice to the overall feeling of disappointment. “The British Embassy deeply regrets that the Government of Georgia and the Opposition failed to come to a negotiated agreement during the talks mediated by the EU. This is a missed opportunity that will delay Georgia’s continued advancement as well as Euro-Atlantic integration,” they posted on social media. “The dialogue must continue,” the Embassy emphasized. “We urge continued progress on judicial and electoral reforms, and all parties to continue negotiations until all issues are resolved.”

by our European facilitators, with a negligible result so far. The keystone of the entire hullabaloo is the issue of fairness of the outcome of the latest parliamentary elections in Georgia, which the West has unanimously qualified as competitive and efficiently administered. The resulting perplexity materialized after the conspiratorial decision of oppositional forces to reject the mandates granted them by vox populi. We, the outsiders, have little idea about the current goings-on within the walls where the negotiations are taking place. We only hear the absolutely contradictory evaluations of the process.

There is a feeling that something is warped, distorted, misrepresented. How long will the squabble last, and how far into the debris will this interminable bicker take the country? There is no answer looming on the horizon, and there might be no answer for quite a while to come. The scrum made of those who have a finger in the pie is massive and multihued, the jostle is intensive and the shoves are sturdy. It is no longer a minor skirmish as it was a couple of months ago. Meanwhile, our people need to be fed, clad, sheltered and protected, and our young need to be attended to. I just wonder now who will do the job.

How Can You Help People Who Refuse to Be Helped? OP-ED BY NUGZAR B. RUHADZE

I

f I shuffle back to our recent history, I can very well figure out the political panic and bewilderment of the early 1990s. I would not fail to evaluate the sociopolitical muddle and stupefaction of those bizarre times in Georgia; I would even be able to go into a pertinent analysis of the dreadful wrongdoings and transgressions of our erstwhile communist leaders. But I will never comprehend the reasons for the current political debacle within Georgia’s now-functioning political spectrum. In the 1990s, in the wake of the socialist economic breakdown and the ensuing social catastrophe, anything could have taken place: a misunderstanding of freedom, misapprehension of democracy, misinterpretation of capitalism or misconception of private ownership. The soviet Georgians had zero experience in handling the new way of life, drastically different from what they had experienced before, hence the confusion and disorientation. Now that our society has under its belt over thirty years’ experience of national

independence and democracy; now that that we have already joined the receptive western realm; now that we definitely know the taste of free elections; now that we have finally acquired the image of a democratically developing nation and have an ambition to be part of a better cultivated world, why are we failing to inculcate all those cherished western values and ideals? Why can’t we talk to each other like civilized people, without desperately cries of ‘help, help’ every step of the way as if we are still wrapped in our ever-wet political swaddles? Thank God the helpers of Euro-Atlantic origin have not yet desisted from believing in our civility and intelligence, readily and patiently rushing to our assistance as soon as they hear our desperate shouts. They sincerely want to help, but, again, how can you help people who utterly refuse to be helped? On a less official level, we, the eternal watchers of this never-ending political clutter and mishmash, are getting seriously sick and tired of hearing the thousand-times reiterated words and phrases, emanating from the same unabashed faces of Georgia’s ever-present political gamblers, who have nothing new to say and are forever stuck in their obsessive

Image source: smallbusiness.co.uk

desire to grab the wheel and steer the nation without even knowing the exact destination they want to reach. So, why are we in this odd political crisis, if it could be called a crisis at all? Comprehension of the situation by regular folks like me has become practically impossible, because the two sides of the puzzle are talking about the same subject using totally different vocabulary, attitudes and interpretations. It is absolutely impossible to tell right from wrong. People hear two drastically varying judgments after every joint session of the ruling power and its opposition, in pursuit of truth and concord, sweated over


4

POLITICS

GEORGIA TODAY

APRIL 2 - 8, 2021

Georgia and Its Main Strategic Partner: Marking New Principles in Relations? Part 1 more acceptable to the reader as well. In addition, this assessment of the State Department and White House will allow us to see the picture from the Georgian side better and to analyze it rationally. This approach will be at least an initial attempt for further, more extensive analysis and implementation of theoretical theses in practice. Most importantly, such observation or analysis should become a constant objective for the relevant services and research circles in Georgia. It must also build a credible bridge to translate analytical assessments and conclusions into qualified policy decisions.

ANALYSIS BY VICTOR KIPIANI, CHAIRMAN, GEOCASE

E

nough time has elapsed since the inauguration of President Joe Biden in the United States to express certain opinions. Clearly, these views cannot be categorical. The reasons for such caution in assessments can be split into two: first, a period of several months is not a sufficient basis for drawing conclusions; and second, a radical change in the foreign policy of a country like the United States requires much more time and even more effort (not to mention the objective or subjective constraints that hinder noticeable changes or make them almost impossible). We have already extensively discussed the possibility of a qualitative realignment of the foreign policy vector by the new White House Administration in previous publications. Thus, a reader can learn about our views on those issues in those articles if interested. Despite the above, virtually every newly elected ruling power in every country, within a few months of coming to power, is characterized by its own signature. It is exactly during this period that the old domestic and foreign policy agendas are revised, new ones are brought forward, and practical steps are planned. Planning, for the most part, manifests itself in the recruitment of new staff from various parts of the executive branch, which also gives some insight into future actions. Furthermore – especially in the case of the United States – several statements are made selectively, a specially prepared word is uttered, and the socalled Policy Paper is published, which provides additional information on the attitude of the new government towards on-going issues.

WITH OR WITHOUT A "GRAND STRATEGY"?

Vice President Mike Pence in Tbilisi, in 2017. Official White House photo by D. Myles Cullen

down, the quality of analytics falls, the decision-making process is damaged, and, consequently, the state interest of Georgia is also damaged. In general, this problem needs to be discussed in more detail, especially concerning the example of very specific state institutions. However, we should not get carried away and for now return to the main point of this article.

A REMINDER OF WHAT WE ALREADY SEEM TO KNOW

WHAT WE SHOULD EXPECT

There are several countries in the world today whose study of foreign policy documents or other materials should be a constant priority for us. However, it is unfortunate that not all are given equal attention in this regard, and some may indeed find themselves beyond how much they should get. For example, we rarely come across a qualified assessment of such topical Russian issues. However, perhaps this is not at all so surprising bearing in mind the stigma attached to any interest towards Russia in the community and the threats posed by that interest at one time in the past. Also, the depth of research on the current processes in the Middle East leaves the impression of insufficiency in this regard, which raises questions considering that the region is in Georgia's immediate neighborhood, with more geopolitical influence than many Georgians can imagine. This list can be expanded, however, in our opinion, virtually all significant political spaces are connected together by a single shortcoming: The inadequate attitude towards in-depth study and analysis by the official and, in some cases, civil analytical circles of Georgia. In this respect, the public sector is probably relatively proactive, although this relative advantage is immediately nullified as soon as the "self-isolation" of official channels occurs and they display inadmissibility of the opinions or evaluations generated beyond them. Eventually, the process of conceptualization is slowed

We mentioned above the need to observe the countries that are particularly important for Georgia's foreign and domestic positioning. We noted the necessity for timely, correct processing of the information obtained as a result of these observations and filtered evaluations through the "oven" of decisions. Reconciling all levels of this unified technology of intellect and politics is especially important when any mistake or misinterpretation can have dire or even irreparable consequences for your homeland. Therefore, it is perfectly natural for the US domestic political current or its entrances to the global arena to attract the special attention of official and public circles in Georgia. Since the independence of Georgia, the United States has made a special contribution to the development and prosperity of the Georgian state, and it continues to do so in present days. Moreover, the role of the United States, recognized by us as a key strategic partner and ally, will remain so in the foreseeable future. Clearly, the content of the relationship may change under the influence of a global and regional context. But, also, in practice, there is no doubt that in the face of the next few decades, our bilateral relationship must be filled with new elements. It should be filled provided that the parties have a real will and the resources to develop a partnership with both changing realities and changing circumstances while maintaining their ability to adapt ade-

quately. The past few years have completely changed the foreign policy, geo-economic, and security dynamics. At the same time, it is noteworthy that even this period allows the distinction of individual stages within itself. One such undeniable milestone was Donald Trump's presidency, during which a number of global challenges were assessed quite differently – in some cases the assessments were fair and, in some others, quite arguable. However, the fact is that several politically and intellectually unresolved issues have been stirred up, their re-evaluation has begun, and several problems have paved the path for quite different resolutions. Trump's presidency is over (although, Trumpism is not over yet), and the new White House resident, while still campaigning, outlined several aspects of US foreign policy that are directly related to Georgia's future and can directly shape the regional picture. During the election, the marked novelties got way more highlighted first during President Biden's visit to the State Department and then during his speech at the recent Munich Security Conference. These two events logically attracted the attention of the Georgian audience to get a more accurate answer to two very specific questions: First, what would be the position of the Biden Administration towards the Black Sea region and, presumably, Georgia? And second, how should we act to further deepen American interest in the Georgian agenda? Bringing more clarity to these issues became even more urgent when Trump's approach was replaced by Biden's, and any gains from the past Georgian-American partnership required a new guide. Such novelty was led by the coincidence of several key elements, namely the current dramatic social process in the US, the need to redefine the Western security model, and the growing active interest of several regional leaders at the expense

of Western interests in the Black and Caspian Sea macro-regions. We are facing a regional situation, which as per one of the top officials of the US State Department, is practically equivalent to a "geopolitical earthquake". Irrespective of whether this comparison is correct or not, it is a fact that the regional dynamics of recent years have not changed for the benefit of Georgia and its key strategic partner. This requires a joint, decisive, and timely effort to overcome the status quo that has already been created – as well as to deal with the (inevitable?) future “aftershocks”, which are typical for earthquakes. From this perspective (and in view of the historical crossroads so relevant for Georgians), it is necessary to know what the guiding principles of the foreign policy of our main strategic partner and ally are and what conceptual and strategic implications on which the White House Administration and its State Department will rely. It is essential to have an answer to the question we have already raised: What should we expect from the West in this difficult region and what might be the concrete result of this expectation? It is quite understandable that this and other related issues are not just in the field of intellectual exercise. The answers to them and the response based on the answers are directly related to the coherency of Georgia as an international legal entity, its functionality, and the future perspective of Georgian statehood. To raise a certain awareness around emerging issues, we will use two documents: one is US Secretary of State Anthony Blinken's, A Foreign Policy for the American People, and the other is the White House Interim National Security Strategic Guidance, both dated March 3 this year. In order to better summarize them, we decided to merge the content of both documents. This way we can better comment on specific aspects. This approach in terms of apprehension is

We do not formulate the question in this way by chance. We have already noticed that the era of linear and strictly regimented "strategy" is a thing of the past and it has been replaced by a more flexible, dynamic, so-called emerging strategy. The reason for this is on the surface: A rapidly changing world where the depth, pace, and content of change in most cases cannot be predicted. Hence, the so-called hard big strategies have lost their purpose, the practical value of which was more suited to the static confrontation between the two opposite camps during the Cold War. In the modern world, in the face of the need for leader states to adapt to rapidly changing circumstances without ideology, the attachment of the executive branch to the policy document of the "Grand Strategy" can turn out to be counterproductive only. Thus, the space for operative response to events is limited, the decision-making and implementation quality decreases, and the management of national policy becomes constrained. At this stage, the document prepared by the White House was called “interim”. This is quite understandable as the final document is still being prepared. However, it is likely that the final strategic document will retain the same, high degree of flexibility (some may even disapprove its "amorphousness"). In practical terms, this may prove that modern foreign policy, at the expense of shifting away from "values", further emphasizes pragmatic interests. In addition, the deviation from moral principles in the geopolitical line of any country can further be explained by "technical considerations" for protection of national and strategic interests. In the face of such reasoning, we inadvertently recall the words of Lord Palmerston: “We have no eternal allies, and we have no perpetual enemies. Our interests are eternal and perpetual, and those interests it is our duty to follow”. Consequently, such a blatant change in the rules of the game in the foreign arena should mean only one thing for Tbilisi: constant psychological readiness for change and the maximum concentration of political or other resources to respond to them properly. The world politics of such an environment does not need to be evaluated from the point of view of excessive morality. It is simply a matter of looking through the prism of your own national interests and devoting as much time and energy as possible for the systematic and rational – not “doctrinal” – pursuit of those interests. This is the reality the modern geopolitical landscape offers and we and our partners must face it. Continued in next week’s GT and online on georgiatoday.ge.


POLITICS

GEORGIA TODAY APRIL 2 - 8, 2021

5

Taking Stock of Recent Developments in the South Caucasus. Part 2 ANALYSIS BY EMIL AVDALIANI

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ollowing the Second Karabakh War, there are ongoing talks about restoring the Soviet-era railways from Azerbaijan to Armenia, from Armenia to Azerbaijan’s Nakhchivan. Those links will allow Russia and Iran to have a direct link to each other. Turkey pursues its own railway project to Azerbaijan’s exclave. Still Iran is interested in a faster direction to Russia. The line from Iran to Russia via Azerbaijan could serve this purpose, but it is still under development. The second option for Iran is a northward route to Armenia and Georgia, which could lead to potential resumption of talks on the Abkhazian railway section. However, economic sustainability of and legal problems related to this project remain highly divisive subjects questioning the prospects of the projects. Within the light of changing connectivity lines, the growth of Russian and Turkish power in the South Caucasus, it is interesting how the US reacts to this new geopolitical context. With Georgia, the United States has an important partner in the region. This is underlined not only by the pro-Western nature of the country, but also by the fact that the

location of Georgia is such that it allows the United States to reach out to the Caspian basin. In other words, Washington understands that without Georgia, America will practically lose its ability influence the heart of Eurasia. At the same time, Georgia's role in US foreign policy has not yet been made a top priority. This was seen in the way the US reacted to the Second Karabakh War. The conflict showed that the collective West needs to be more active in its positioning towards the region overall, and Georgia in particular. Indeed, there were reasons for the Western procrastination, with the conflict coincided with the US presidential election and subsequent change of administration. The signals coming from Washington at the moment are different from what we had during Trump's presidency: in the coming years, Georgia will perhaps be seen more often as a part of the political game between Russia and the United States. Biden's government will be much more principled towards Russia. This will be expressed primarily by raising the issue of the liberation of the occupied territories of Georgia. Attempts to establish closer military and economic contacts between Washington and Tbilisi may also be expected. However, to avoid unnecessary over-

Image source: nonproliferation.org

expectations, it must be said that, like under Trump, Biden's foreign policy will be more focused on China. Russia's role in this global conflict will be also significant as both powers, China and the United States, will try to "dissuade" Moscow from joining either of the other sides. This explains Moscow’s decadelong desire to pursue a multi-vector foreign policy. Against this background, it is in the US interest to weaken the burgeoning Sino-Russian rapprochement, which could potentially be done by finding common ground with Russia on a variety of issues. The point is that in the

longer term, American politicians could be in favor of reaching a certain rapprochement with Russia to limit the latter’s tilt towards China. Perhaps some inspiration could be drawn from the model used by Henry Kissinger in the 1970s to break up the Sino-USSR nominal alliance. And this is where the issue of Georgia is important. Could Georgia be part of a great geopolitical trade-off between larger powers? Of course, there are many fundamental differences between the US and Russia today that cast doubt on even limited rapprochement between

the two countries. But in analytics, we have to try and re-try all possible trends, even if at this particular moment changes seem unlikely. Looking ahead, it is possible that the US will not try to further strain relations with Russia by advancing Georgia's membership hopes in NATO. Instead, however, it would be considered as substantial progress if the US concludes a free trade agreement with Georgia, and strengthens military ties through exercises and the transfer of critical military equipment for defense. Joint work on advancing Georgia’s air-defense sector could be yet another sphere for bilateral cooperation. China will be another important component of the US policy towards Georgia. In recent years, Georgia has been increasingly viewed by Washington in the context of a global competition with China. Washington will try to minimize China's attempts to wedge itself into Georgia's infrastructure, be it in ports or railways. The recent US-Georgia memorandum of understanding on deployment of 5G internet is one example of how the US attaches larger geopolitical importance to Georgia in its global contest with China. Emil Avdaliani is professor at European University and the director of Middle East Studies at Georgian think tank, Geocase.

“Maskirovka”: Mercenaries in the Russian Hybrid Warfare Model

Image source: Reuters/Maxim Zmeyev

ANALYSIS BY MICHAEL GODWIN

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any Georgians still have the images of Russian soldiers burned into their memories from 2008. However, it’s likely that not all of those witnessed were actually serving members of the Russian Armed Forces. The use of irregular and militia-style units in combat operations by Russian sympathizers dates back to the myriad of Eastern European conflicts in the 1990s. With the combat experience in these wars, in Georgia, and Moldova, they were used as shock troops in Ukraine. Now, with deployments ranging from Tskhinvali to Venezuela, these groups have become a hallmark of Russian aggression, and will likely be increasingly common nearby. First, it helps to define the term “hybrid warfare,” as it has taken on several different definitions in security and defense communities. For the purposes of this analysis, this type is the combined use of government regular soldiers, irregular paramilitary and local militia units folded into service, and private military

company (PMC) employees hired in offensive, defensive, and more recently in Abkhazia and South Ossetia- occupation duties. The use of these unofficial units provides several key benefits for the Kremlin: • Budget - Depending on the specific PMC, many of these employees make below-average to average working wages, but already have the training and equipment since they are usually preyed upon for recruitment shortly after they leave regular military service. These men are typically from low-income homes and with only a military service record to show their station, and chances of landing any considerable career are slim. • Deniability - As we’ve seen time and time again from the Kremlin, the existence of mercenary units being used in Georgia, Ukraine, Syria, and recently Nagorno-Karabakh have been denied vehemently. By burying the papertrail so deep in Russia’s already widely corrupt hierarchy, it’s virtually impossible to connect all the dots definitely. Because of this, it’s too easy to simply shrug and deny any knowledge of their existence, as well as not face the public when the inevitable death toll comes in. • Flexibility - Because their existence

can be denied, legal responsibility is almost impossible to pin down. Just as they rise and commit their deeds, they can just as easily fade into the sand. As most of these units are raised and formed only temporarily, there is no Public Relations Officer or Commandant to bring before a court, let alone a press corps. With these combined, they are able to operate effectively and with total impunity, and since their shadowy leadership is often so well connected to Putin’s inner circle, there’s little hope of exposing them. In fact, since the actual operation of a PMC is illegal in the blackand-white of Russian law, it’s almost certain to rule out any competition and keep the profits centered around the gilded elite in Moscow. This profit incentive lies at the core of the use of these companies, some of which have recently begun to become more infamous; ENOT, Cossacks, and the most famous by now, Wagner Group. Putin and his circles of oligarchs need more foreign money sources, since Russia is not exactly known for its overly robust and healthy domestic economy. Some of this comes in the form of oil, such as the Nord Stream 2 project, and seizure of oil fields and their profits in

Syria. However, in order to diversify and expand, they have found other cash avenues in the PMC markets. The deployment and management of mercenaries in Syria was largely overseen by Evgeny Prigozhin, one of Putin's closest associates. Prior to his role in command, he was the head of Concord Management and Catering companies, providing the majority of the food and clothing services to the Kremlin as well as the Russian Armed Forces. While it’s largely unknown how much exactly he has profited from these combat operations in Syria, it's certain to say it’s no small figure. A new project, reportedly named “Patriot” has focused on using the survivors of these PMC units devastated in Georgia, Ukraine, and Syria, as well as some of the more trusted special operations team members, to focus more on modern objectives. Reports are already coming in about their use in Africa, Southeast Asia, and South America. With this force conveniently masked by an ever-shifting identity, and money flowing favorably, it’s becoming apparent that they can begin to emulate their Russian Army counterparts. Armored vehicles, advanced anti-tank and anti-air weaponry, uniforms and equipment to help further mask their organizations, and the financial backing to achieve any nefarious goals are only the beginning. It’s not out of the realm of expectations that naval and air assets will follow. In addition to this, these units also act as a front for international crime, facili-

Source: Security Service of Ukraine

tating arms trafficking and provoking regional security incidents in favor of their masters. It’s not outside the realm of possibility that their operations also involve border incidents near Abkhazia and South Ossetia. With a shadow budget that is estimated at almost 65% of the national defense spending of the Russian Federation, these PMCs are largely operating unchecked. Like a mold that continues to grow back, the only way to effectively eliminate this threat is to attack the financial roots of these elements. In addition, Georgia and her allies that have borne the brunt of their cruelty needs to call on the international community to bring more action against the use of these organizations. Proper PMC regulation, licensing, or formal thirdparty inspection to ensure compliance and transparency is adhered to, particularly with respect to foreign operations. With this, it is imperative for Georgian security services and military forces to bear this threat in mind. Because these PMC units operate somewhat autonomously from their regional Russian Army partner forces, the tactics and techniques used in the field will not be so easily identifiable by traditional means. As Georgia is such a key strategic partner in the defense of the Black Sea, the jewel of Putin's eye, appropriate countermeasures, both militarily and legislative, should be assessed and implemented. To prevent these shadow actors from interfering with the current and fluid political situation, Georgia should be a leader in these initiatives at PMC reform aimed at Russia.


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BUSINESS

GEORGIA TODAY

APRIL 2 - 8, 2021

ISET Agri Review | March 2021: Sector at a Glance Figure 1. State budget 2021 allocations

Source: Source: Ministry of Finance, 2021

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n 29 December 2020, the Parliament of Georgia approved the state budget for 2021, which includes allocations of around 18.3 billion GEL, from which the Ministry of Environmental Protection and Agriculture (MEPA) will receive 451.6 million (2.5% of the total budget allocation). The MEPA will direct 10 mln. GEL towards the Environmental Protection and Agriculture Development Program (2.2% of MEPA’s total budget), with around 389.6 mln. (86.3% of MEPA’s total budget) to be allocated to agricultural development, and approximately 51.9 mln. GEL (11.5%) to be spent on environmental protection. Compared to 2020, the budget for agricultural development will decrease by around 6.3%. Though, additional state funds will be allocated to the newly established agency for sustainable land management and land use monitoring, by 85.8% and by 19.8% for Georgian Amelioration (GA). The budget for the National Wine Agency (NWA) and the National Food Agency (NFA) will decline by 37.7% and 15.2%, respectively. While the Scientific-Research Center of Agriculture (SRCA) budget will decrease by 11%, and the Rural Development Agency (RDA) will lose 2.4%. MEPA will also be directing less spending towards the joint Environmental Protection and Agriculture Development Program than in 2020 (-9.9%) (Figure 1). Although the redistribution of funds has changed slightly, as in previous years, the biggest share of MEPA’s funds will further support the RDA (53%), GA (23.3%), and the NWA (12.8%). The RDA will continue financing around 16 proFigure 2. Annual changes in prices

Source: GeoStat, 2021

grams; including their “Preferential Agrocredit project”, with the highest budget of 115 mln. (55% of their total budget), and 18 mln. (8.7%) and 12 mln. GEL (5.8%) will be directed towards “Plant the Future” and “Co-financing Processing and Storage Enterprises”, respectively. The State Budget for 2021 identifies the main priorities for Georgian agricultural development as: • Supporting domestic production and improving the quality of locally produced agricultural goods; • Improving access to financial resources for farmers and agricultural enterprises; • Supporting the development of climate-smart agriculture.

PRICE HIGHLIGHTS On a monthly basis, the country’s price levels were stable between December 2020 - February 2021. In December 2020, the Consumer Price Index (CPI) decreased by 1.0% from November 2020. In January and February 2021, the monthover-month inflation rate remained at 1.1%. Meanwhile, food and non-alcoholic beverages prices increased during the period. Interestingly, the monthly food price inflation rate exhibited a downward trend. In December 2020, food prices, measured by the Food Price Index (FPI), increased by 2.1% from November 2020, while the corresponding month-overmonth price changes in January and February 2021 were 2.0% and 1.1%, respectively. From an annual perspective, the CPI continued to increase between December 2020 - February 2021. In December 2020, the CPI rose by 2.4% on an annual

basis. Within the period, annual inflation marked its highest level in February 2021 at 3.6% (Figure 2). In February 2021, year-over-year prices for food and non-alcoholic beverages increased significantly, by 6.2%, contributing 2.03 percentage points to the change in total CPI. The main drivers were price fluctuations in the following sub-groups: oils and fats (+34.3%), sugar, jam, honey, chocolate, and confectionery (+14.1%) and coffee, tea, and cocoa (+12.4%). Over the last year, prices for food and non-alcoholic beverages have been increasing; mainly due to disruptions in food supply chains and pandemicrelated restrictions. Depreciation of the Georgian lari has forced additional upward pressure on food prices. In February 2021, the FPI increased by 6.2% compared February 2020. Prices increased the most for the following categories: Oils and fats – In this category, the price of sunflower oil exhibited the largest increase of 62% in February 2021, in comparison to the previous year. Such sharp increases in sunflower oil prices were driven by trends on the Russian markets (Georgia imports around 90% of the oil from Russia). Increased production costs, due to depreciation of the national currency and a poor harvest due to unfavorable summer weather conditions, drove Russian sunflower oil prices up. This rise in the Russian market thus contributed to the spike in Georgian prices for sunflower oil. Sugar, jam, honey, chocolate, and confectionery – In this category, sugar prices increased the most on an annual basis, by 36.7%, in February 2021. Given that Georgia is a net sugar importer, international trends influence sugar prices. According to the Food and Agriculture Organization (FAO), international prices of sugar exhibit an upward trend; reflecting concerns over tighter global supplies due to falling production in key producing countries. Coffee, tea, and cocoa – In this category, prices for ground coffee increased the most (14% in February on an annual basis), reflecting recent trends on international markets. According to Forbes, international coffee prices are close to the highest levels since 2020; signaling weather concerns and expectations of reduced Brazilian coffee production.

As to international prices, during December 2020 - February 2021, international prices exhibited an upward trend on both a monthly and annual basis. In February 2021, the Food Price Index, measured by the Food and Agriculture Organization (FAO), increased sharply, by 16.7% compared to February 2020, and marked the highest level since July 2014. The February increase in the FPI was driven by strong gains in the vegetable oils (51%), cereals (26.5%), and sugar (9.5%) sub-indices. Such a sharp increase in vegetable oil price was driven by increases in the price of palm oil, due to concerns over dwindling inventories in the chief exporting countries. Cereal prices rose due to increased demand from China, while increases in sugar were heightened by falling production in major producing countries.

TRADE HIGHLIGHTS Total Georgian exports in January-February of 2021 amounted to 495 mln. USD, which is 7% lower than the same indicator in 2020 (531 mln. USD). Whereas agricultural exports expanded by a significant 20%, from 112 mln. in 2020 to 134 mln. USD in 2021. Considering imports, the total decreased by 14%, from 1,349 to 1,159 mln. USD. A similar trend can be observed in agricultural imports, which decreased by 13%, from 165 to 143 mln. USD during the first two months of 2021. Given that the COVID 19 pandemic negatively affected incomes all over the world and caused trade restrictions, the reduction in international trade is not surprising. The depreciation of the Georgian lari puts an additional pressure on imports. Interestingly, the first two months of 2021 are marked by an increase in agricultural exports, which if sustained in the long-run is obviously a positive development for Georgia’s international trade. A closer look at the drivers of increased agricultural exports shows that the highest export values in Jan-Feb 2021 compared to the same period of 2020 are observed for the following commodities: • Beverages, spirits and vinegar (HS code 22); • Fruit and nuts, edible; peel of citrus fruit or melons (HS code 08); • Food industries, residues and wastes thereof; prepared animal fodder (HS code 23); • Preparations of vegetables, fruit,

nuts, or other parts of plants (HS code 20); • Coffee, tea, mate, and spices (HS code 09). Exports of beverages increased by 7%, from 64 to 69 mln. USD. For edible fruits and nuts the same indicator was 79%, where the export value from this category increased from 14 to 26 mln. USD, highlighting significant, almost double, growth. An even greater increase can be observed in the exports of animal fodder, which rose by 92%, from 6 to 11 mln. USD, on an annual basis. For vegetables (HS code 20) and for coffee, tea, mate, and spice (HS code 09), the respective percentage changes in export value are 29% and -3% (Figure 3).

POLICY WATCH Export quotas on wheat have entered into force in Russia On 15 February 2021, export quotas on wheat, rye, maize, and barley came to force in Russia; where customs tariffs and prohibitive duty, amounting to 50% of customs, were also imposed. For more information see the following link: https://iset-pi.ge/index.php/ ka/iset-economist-blog/entry/khorblisbazari-sakartveloshi Agro-startup financing project Within the framework of an innovative product created to support agribusinesses, TBC has implemented an agro-startup project. This agribusiness start-up support program provides for a long-term grace period over the principal amount, dependent on the specifics of the financing activity, of up to a maximum of five years. For more information see the following link: https://georgiatoday.ge/tbcinvests-more-than-gel-70-million-insupport-of-agribusinesses/ The EU and FAO support the Georgian government in enhancing climate-smart agriculture practices With the support of the European Union (EU) and the Food and Agriculture Organization of the United Nations (FAO), the Ministry of Environment Protection and Agriculture of Georgia (MEPA) has established a Climate Agriculture Working Group, which conducts regular online sessions to address the challenges of climate change in the country. For more information see the following link: http://www.fao.org/georgia/ news/detail-events/en/c/1375656/

Figure 3. Top five agricultural export commodities by value

Source: GeoStat, 2021


BUSINESS

GEORGIA TODAY APRIL 2 - 8, 2021

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Company Law Reform in Georgia - New Rules on Incorporation

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hrough the contribution of partners Archil Giorgadze and Nicola Mariani, joined by senior associates Ana Kochiashvili, Tamar Jikia, associate Mariam Kalandadze, junior associates Ana Jikia, Lasha Machavariani and Nino Sakvarelidze, MG Law Office is partnering with GEORGIA TODAY to provide updated information regarding significant legal changes and developments in Georgia. In particular, we highlight significant issues which may impact businesses operating in Georgia. On 9 February 2021, a new draft of the Law of Georgia on Entrepreneurs (the Draft Law) was initiated in the Parliament of Georgia. The Draft Law is intended to replace the Law of Georgia on Entrepreneurs which was enacted in 1994 (the Law on Entrepreneurs). Almost twice as extensive as the current Law on Entrepreneurs, the Draft Law brought further clarifications to questions like the governance and set-up of the company, its incorporation, operation, and reorganization. In particular, the Draft Law aims to create a uniform and transparent legal framework for corporations, their shareholders, directors, creditors and other stakeholders. The new rules will be adapted to requirements of modern corporate relations. They will further improve the business climate and continue promoting entrepreneurial freedom. In addition, the Draft Law will bring the Georgian legislation closer to the European standards which will in turn facilitate closer business relations with Europe and create comfortable and familiar legal framework for foreign investors. Apart from harmonizing the Georgian legislation with that of EU, the Draft Law seeks to achieve multiple objectives. With the view of strengthening shareholder rights and by offering detailed default rules, the Draft Law aims to modernize the Georgian corporate governance. These default rules can be revised and further refined by agreement between the shareholders. However, these rules will apply if the agreement cannot be reached on specific regulations of various issues in the company’s constitutional documents. Considering that the Draft Law has recently been initiated and presented to the public by the Parliament of Georgia, it has not yet been voted in. However, we expect that the Draft Law will enter into force in 2021. As the Draft Law reforms the Georgian corporate law in many areas and with the view of keeping the businesses informed and up-to-date about the new rules and amendments in corporate legal framework, MG Law has begun publishing series of articles reviewing key aspects

MANDATING RULES FOR OFFICIAL CORRESPONDENCE In terms of additional novelties, limited partnerships, joint stock companies and limited liability companies may be required to make changes to the design of their official documents or official websites. Namely, companies will have to include the company name, its legal address and identification number in every business correspondence (including electronic ones). Additionally, if the company is undergoing liquidation, rehabilitation or any other similar procedure, it will be required to make a note of it both on its written documents and on its website.

INCORPORATING THE BRANCH OF THE COMPANY Image source: EU Internal Market, Industry, Entrepreneurship & SMEs

of the Draft Law. In this segment, we will discuss issues involving the formation and incorporation of companies and foreign branches in Georgia. The series of our articles will additionally cover new rules for capital formation, including minimum capital requirements, duties of corporate managers and their liability, as well as shareholder rights and obligations, with a specific focus on derivative suits and piercing of corporate veil.

INCORPORATION AND REGISTRATION OF A COMPANY The Draft Law reflects most of the existing rules for incorporation of legal entities and offers several new requirements to be observed by founding shareholders. The National Agency of Public Registry of Ministry of Justice of Georgia (the Registry) will continue to manage and oversee the company registrations.

DOCUMENTS NEEDED FOR THE COMPANY INCORPORATION Registration of a company will generally require submission of a written incorporation agreement duly signed by all founding shareholders. The incorporation agreement shall consist of the following: a. Company’s charter (can be standardized as well as personalized); b. Company name; c. Legal address of the company; d. Identification details of founding shareholders: • In case of natural persons – personal identification number, name and last name, place of residence; • In case of legal persons – copy of the certificate of incorporation noting e.g., company name, legal address and the identification number. e. Identification details of a company director and of an authorized person as

well as the details and term of office of supervisory board members if applicable (similar to the current law, the Draft Law does not envisage citizenship requirements, any person is permitted to act as a director of a Georgian company). f. Power of Attorney (POA) – in case the company is incorporated by an authorized representative of an interested party. The Draft Law aims to maintain ease of starting up and doing business in Georgia. Foreign shareholders or directors can manage the registration procedures remotely by appointing an authorized representative. The authorized representative will act through a power of attorney and will be able to incorporate a legal entity in Georgia, approve its charter, select the company name and legal address, appoint directors. In terms of formal requirements existing notarization/legalization rules will still apply to documents issued and certified outside of Georgia. Notably, the Draft Law does not impose any limitations on directors or company shareholders with respect to their citizenship or place of incorporation. Any natural or legal person can be a shareholder or a director in a Georgian company. A procedural prerequisite is to submit a copy of their passport or incorporation certificate to the Registry. The Draft Law envisages additional requirements for specific legal entities: • The incorporation agreement of a limited partnership needs to specify members that are limited partners; • The incorporation agreement of a limited liability company needs to specify amount of subscribed shares and information on the number of shares that each partner holds (in the form of percentage of total shares); • In joint stock companies (JSC) the incorporation agreement has to indicate both subscribed capital and authorized

capital. In addition, a JSC may issue shares with nominal value and shall indicate such nominal value in the incorporation agreement. As incorporation of the JSC may entail certain expenditures, the Draft Law requires for all costs associated with the incorporation (e.g., license, permits, remuneration of individuals in connection with the incorporation process) to be recorded; • In the incorporation agreement of a cooperative, nominal value of the units has to be specified.

REQUIREMENTS RELATING TO THE CHARTER The Ministry of Justice of Georgia (the Ministry) will prepare several standardized charter forms designed to be adopted and used by various business entities. The standardized charters will be periodically updated by the Ministry in light of ongoing statutory amendments. Provision of standardized charters (e.g., Model Articles adopted in the United Kingdom) is a common occurrence in different jurisdictions. Pursuant to the Draft Law, the company charter will regulate issues envisaged by the shareholders. In addition, it has to specify (i) legal form of a business entity; and (ii) economic activity of a company (both general and specific activities can be indicated).

CHOOSING THE COMPANY NAME Even though the Law on Entrepreneurs envisages provisions relating to selection of the name of the company, the Draft Law provides more specific regulations spread over at least ten different provisions. Primary considerations that shareholders have to keep in mind are intellectual property rights, use of the company business forms in its names, caution towards restricted phrases (entailing racism, sexism, enticing violence etc.).

The Draft Law specifies incorporation procedure of the company branch and makes a distinction between registering a branch of a Georgian company (which does not require a formal registration process) and an incorporation of a branch of a foreign based company that envisages a similar registration process to that of the company registration. In addition, the registration of a branch of a foreign company requires the details of the parent company to be duly indicated (its applicable jurisdiction, relevant registry’s details, financial statements of the parent company, economic activity etc.). All relevant documents will have to be notarized, legalized or apostilled as required.

PRE-ENTREPRENEURIAL ENTITY AND THE QUESTION OF LIABILITY The company is deemed to be established upon its registration at the Registry, however, both the Law on Entrepreneurs and the Draft Law acknowledge an existence of a pre-entrepreneurial entity prior to completion of official registration process. Even though the notion of a pre-entrepreneurial entity does not currently bear much practical utilization due to the pace and simplicity of the registration process, notable changes have been made in the Draft Law in this regard. The Law on Entrepreneurs merely specifies direct and an unlimited personal liability for any actions of those directly involved in the activities that have occurred on behalf of the pre-entrepreneurial entity and its director. In comparison, the Draft Law allows those acting on behalf of the company and creditors to agree on an alternative distribution of the liability. Further, it explicitly allows a transfer of the personal liability to the company upon its registration and company’s approval of the transactions that have occurred in its name before the official registration.

PM Meets with Members of Business Associations amid World Bank Projections of Slow Recovery BY KETEVAN SKHIRTLADZE

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meeting between the Prime Minister of Georgia Irakli Garibashvili and members of business associations took place on Wednesday, his first such meeting since being appointed Prime Minister. The depreciation of the Lari, deteriorating macroeconomic indicators, the trend of economic downturn, and the lack of foreign investment are the challenges being faced by businesses today. The meeting came the same day the World Bank released a report projecting

that the Georgian economy is unlikely to recover to pre-COVID levels until late 2022. “Emerging and developing economies in the Europe and Central Asia region are expected to grow by 3.6% this year, as a recovery in exports and stabilizing industrial commodity prices partly offset a resurgence of the pandemic late in 2020 and a recent flareup in new cases,” says the latest edition of the World Bank’s Economic Update for the region. “Hardest hit are economies that are heavily dependent on services and tourism since social distancing measures and mobility restrictions led to sustained weaknesses,” it notes. (See more on this on georgiatoday.ge) “This is the first meeting with the new

Prime Minister,” President of the Business Association, Soso Pkhakadze said on Wednesday. “We’ll be mainly focusing on macroeconomic issues. Then format will then be expanded. Our association represents all sectors of the economy in the country. Other companies will also be involved in this process. “We all know we’re facing a severe economic crisis, and we see the many challenges. We want to look at these problems together. We always aim to raise issues professionally, academically, and objectively, and this meeting will be no different,” Pkhakadze told journalists. Prime Minister Garibashvili reaffirmed his support for the business sector, along

Source of photo: commersant.ge

with a readiness to work closely with its representatives. He stated that it is his “priority to have as few barriers to the performance of the private sector as possible, both at the central and regional levels, because business plays a special role in the development of the economy, employment, and real advancement.” The meeting focused on the 10-Year

Development Plan of the country, which is being developed under the initiative and leadership of the PM, along with the importance of active involvement of businesses in this process. It was stressed that it is important to intensify vaccination in this process in order to set the business and economy in motion in real terms.


8

BUSINESS

GEORGIA TODAY

APRIL 2 - 8, 2021

USAID YES-GEORGIA Program Presents Women Entrepreneurs from Mountainous Georgia

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SAID’s program ‘Supporting Youth and Women Entrepreneurship in Georgia’ (YES-Georgia) continues its mission uninterrupted. Aiming to support Georgia’s economic development, the program offers significant support to aspiring as well as established female entrepreneurs to advance their business skills and ability to secure funding for their businesses. The program is implemented by Crystal Fund with the financial support of USAID, the Women’s Global Development and Prosperity (W-GDP) Initiative, and JSC MFO Crystal. The beneficiaries of the program include women from the mountainous regions of Georgia who, in the face of harsh climates, limited livelihood and job opportunities, put immense effort into advancing their entrepreneurial potency. These women have made notable contributions to Georgia’s rural development by bringing in employment and skill training facilities to small villages. In this process, USAID YES-Georgia stands by them every step of the way, facilitating their access to practical knowledge, providing mentorship, effective development tools, as well as access to legal and accounting services. Here are three stories of success, perseverance, and much more from Georgia's small villages.

plans to establish a social enterprise devoted to the development of beekeeping in the region. All interested persons shall have the opportunity to study beekeeping. Gvantsa’s participation in the USAID YES-Georgia program helped her acquire the due knowledge and skills to turn her ideas into reality. 33-year-old Nestan Chkhvimiani lives in the village of Chrebalo, Ambrolauri Municipality. Nestan taught herself how to turn wood into beautiful pieces of art. Determined to be independent finan-

Asmat Bolkvadze

Gvantsa Chabukiani, a 22-year-old entrepreneur from Lechkhumi, is an energetic woman with zeal and hope to address the needs of her community. After graduating from university, Gvantsa returned to her native village Dekhviri to start working as a primary school teacher. In parallel, Gvantsa produces natural bee products and is preparing to turn her childhood passion into business through printing her label: "Honey from Lechkhumi". In the near future, Gvantsa

Nestan Chkhvimiani

cially, she steadily gained pace. Her activities include the production of a variety of wooden, environmentally friendly toys. After winning GEL 5,000 in a grant competition from the Czech organization Caritas, she upgraded her equipment and started exploiting new opportunities. Apart from toys, Nestan creates wooden souvenirs and various themed items for educational institutions. The family also produces traditional Rachuli wine Khvanchkara. Nestan is an active participant in this side of the family business, helping her husband and creating beautiful wooden boxes for the wine bottles. Nestan has made sure to leave the middlemen out of her business and do everything, from ideas to manufacturing and selling from scratch. After completing her master's degree, 28-year-old Asmat Bolkvadze decided to return to Adjara’s Khulo municipality and pursue valuable work in her hometown. She discovered her passion for agriculture early in life and worked with enthusiasm towards her goal. In 2013, within the framework of the Adjara Agriculture Project, Asmat established the first Chandler Walnut Demonstration Garden in highland Adjara. Chandler is the most preferred walnut variety for new orchards due to its productivity and excellent nut quality. To turn all this into a successful business, Asmat intends to make good use of the skills gained through

Gvantsa Chabukiani

the USAID YES-Georgia program. Going forward, YES-Georgia will continue to learn from the above-mentioned success stories, empowering more women entrepreneurs to increase their selfefficacy, confidence, and skills to follow in the footsteps of other successful women. By early 2024, YES-Georgia aims to provide business management training, legal and accounting services, mentoring, and networking opportunities to over 2,500 women.

SOCIETY

Only Half of Domestic Violence Victims Call Police for Help, Study Says

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s the world sees an increase in domestic and genderbased violence amid the pandemic, the United Nations Development Program (UNDP) and the UK Government are working with the Ministry of Internal Affairs in Georgia to assess the effectiveness of state services provided to victims.

Image source: kgfamilylaw.com

“Human rights protection is our priority, supported by the ongoing reforms in the Ministry of Internal Affairs and the measures undertaken during the pandemic,” said Deputy Minister of Internal Affairs Aleksandre Darakhvelidze. “We are working with public agencies and international partners to ensure efficient response to domestic violence in pandemic conditions.”

Research carried out by the Georgian non-governmental organization “Sapari” in March-June 2020 suggests that nearly half of all victims of domestic violence refrained from seeking help from the police. The quantitative part of the research was based on phone interviews with 76 women victims of domestic violence from Tbilisi and the regions. Respond-

ents were selected randomly from a database maintained by civil society organizations. The qualitative part of the research draws on focus group discussions with ten lawyers and ten police officers, and 15 in-depth interviews with beneficiaries of three NGOs: Sapari, the Anti-Violence Network and the Georgian Young Lawyers’ Association. Among the main findings: > Only 44% of victims used the 112 emergency number to call the patrol police. > Of those who called 112, 71% were dissatisfied with the service they received. > 56 percent of victims opted not to call 112, but only 10% went to a police station. > 27% of victims said they preferred to consult with NGOs rather than contact authorities. Those who did not call 112 cited a variety of reasons: lack of trust (35%), lack of awareness (30%); and long wait times (18%). The slow response times reported in the survey may stem from use of the 112 emergency number as a COVID-19 hotline. The survey was conducted before additional 112 extensions were added in November 2020 for urgent medical assistance (112); fire and rescue (112/1), which covers assistance to victims of domestic violence; and COVID19 support (112/2), which may have reduced wait times. Of those who called the patrol police, 42% say it took 10-15 minutes for police to arrive and 58% said it took longer. 39% observed that police officers were not considerate to the victims, with some quoted as saying that “the pandemic situation is not the right time to worry about domestic violence.” Half of all respondents thought that pandemic lockdowns had a negative impact on police operations. Many cited difficulties in getting to the police station owing to limits on public transportation imposed to control the virus. 88%

of all respondents were convinced that police do not provide online investigative services – something that the MIA noted was impossible given current regulations governing the collection of evidence. “Around the world we are seeing that gender-based violence is a shadow pandemic,” said UNDP Head Louisa Vinton. “Our research is designed to help the responsible authorities identify and remedy weaknesses in the systems set up to prevent violence, assist survivors and prosecute offenders, despite pandemic limitations.” The Ministry of Internal Affairs reports that the number of restraining orders issued to protect victims of domestic violence increased from 5,521 in February-July 2019 to 5,699 in the same period of 2020. 85% of survey respondents who requested restraining orders against perpetrators said they were granted. “The UK is proud to be supporting work to improve services for victims of domestic abuse. The nature of the pandemic has created particular challenges to ensuring widespread awareness of and access to confidential support, advice and refuge,” said British Ambassador Mark Clayton. “I am pleased to see that the Ministry of Internal Affairs and the CSO Sapari collaborated effectively on this research. The evidence provided from the research should help policymakers design improved services for victims of domestic violence.” A Rapid Gender Assessment of the COVID-19 situation in Georgia conducted last year by UNDP in partnership with UNFPA and UN Women showed that awareness of survivors regarding available support services is low. Research on police effectiveness in providing services to victims of domestic violence is part of a broader UKfunded programm supporting public administration reform in Georgia that UNDP implements in partnership with the Government and public agencies.


SOCIETY

GEORGIA TODAY APRIL 2 - 8, 2021

9

CENN with EU & USAID Supports Professional and Economic Growth of the Georgian Hospitality Industry

BY ANA DUMBADZE

O

n March 29-30, CENN, with the support of the EU and the USAID, organized a series of Match-Making & B2B events for local businesses in tourism in order to support their growth and digital development. As tourism businesses around the world look to a greener future and highly developed digital services, the event was a crucial steping stone towards the revival of the hospitality industry in Georgia. The event was organized as part of the collaboration between two cross-cutting projects: ‘Embrace Tsalka’ and ‘Digital Caucasus,’ both of which aim to promote and strengthen the local tourism sector.

SLOW, GREENER, AND MORE SUSTAINABLE TOURISM As the pandemic brought travel and tourism to a halt, many businesses see this as an opportunity to introduce slower, greener and a more sustainable approach to tourism. Tourism businesses have to make major adjustments and develop sophisticated digital services to meet the needs of their guests to make them feel safe while discovering the tourism attractions of a foreign country. The event was a chance to discuss new opportunities for local businesses, provide guidance in digital development, and exchange advice on new innovations. The two-day event jointly organized by CENN, the EU-funded ENPARD agricultural program, and USAID Bureau for Europe and Eurasia, Economic Development, Governance and Enterprise Growth project, was held at Stamba Hotel Tbilisi, where the beneficiaries of the ‘Embrace Tsalka’ and ‘Digital Caucasus’ projects had an opportunity to get acquainted with the experience of successful companies, listen to the opinions and views of highly experienced entrepreneurs, and launch new collaborations for better performance in the future through B2B meetings. The first day of the event saw an indepth training organized for entrepreneurs working in the tourism sector, including local businesses from Tsalka,; as part of the event, invited experts instructed the entrepreneurs on the proper use of digital technologies and development of eco and gastro tourism, with practical exercises. The next day of the event served to allow participants to put the acquired knowledge into practice. Distinguished and leading experts involved in the tourism sector participated in the event, including representatives of associations and private companies, among them the Georgian National Tourism Administration, Enterprise Georgia, Gastronomic Association, Ecotourism Association, Association ‘Georgian Wine,’ Geo Trend, Georgian Travel Guide, Georgian Travel Guide, Community Sheen Folks, and Company Solvit, who introduced

successful examples and innovations to the attendees, and shared their experience and opinions regarding the present and future of the hospitality industry, with ecotourism product development and digital technologies in the tourism sector as the main topics. They emphasized the need for ecotourism development in the country, and the crucial role of CENN and other environmental organizations in this process. Among the invited speakers were representatives of digital technology projects which serve the digitalization of tourism. “While implementing different economic and tourism development projects at CENN, we work on building the capacity of our beneficiaries in order to improve their skills in different directions to keep them competitive on the global market,” said Nana Janashia, Executive Director of CENN. “It is important that local businesses keep up with modern trends, and this B2B Match-Making event served the same mission and aimed to open them to some professional partnership opportunities to help them develop high standards in their small and medium-size businesses. We believe we must work together more to become greener and more digital for better economic growth and a competitive and inclusive future.”

THE EMBRACE TSALKA PROJECT The EU-funded ENPARD agricultural program has been implemented in Georgia since 2013. It aims to support farmers and entrepreneurs in targeted regions to address issues of education and technology. CENN, together with partner organizations the Georgian Farmers Association (GFA) and Rural Development Research Institute (Ifls), implements ENPARD in the Tsalka Municipality for the EU-funded project ‘Local LEADERs Embrace Sustainable Development in Multi-Ethnic Tsalka Municipality (EMBRACE Tsalka)’. The project beneficiaries are funded as part of the grant projects, while CENN supports the development of their business potential, which itself reflects on the economic development and diversification of Tsalka Municipality, which is one of the main goals of the project. This project is especially important for young people living in the region, as the goal of the project is directly related to discovering and promoting the entrepre-

neurial potential among them. The project contributes to the reduction of rural poverty in Tsalka Municipality, known for its diverse population. It addresses economic, social, and environmental concerns by improving agricultural competitiveness, promoting the sustainable management of natural resources, and building climateresilient rural economies and communities. Furthermore, the mentioned project helps locals to improve and deepen their skills in the hospitality industry, acquire new opportunities, and contribute to the economic development of the region by making it more attractive for tourists. “The projects implemented under ENPARD, including the one being implemented in Tsalka, are carried out with the ‘Leader’ approach which in principle means bottom-up approach. The rationale behind this is that no one knows the challenges existing in Tsalka better than locals themselves,” Melano Tkabladze, CENN, ‘Embrace Tsalka’ Project Manager, told us. “Accordingly, a local action group (LAG) was established, which is a kind of a ‘locomotive’ of processes ongoing in the region, working for its better development. The LAG then developed a local development strategy document, which is focused on the needs of Tsalka, and also contributes to implementation of national strategies. With this document, seven main priority directions have been highlighted, including the untapped potential of Tsalka in the tourism sector. Tsalka municipality in the Kvemo Kartli region is a unique place considering its multiethnic composition. The coexistence of many ethnic groups supports the development of ethno tourism, not to mention fascinating potential in eco and agro tourism. “These are not empty words: it has been studied and proven, there is a bilingual travel guide ‘Embrace Tsalka’ available online on the Tsalka website: tsalkalag. ge, which reflects the tourist attractions of the region well, and those interested can look through it,” she noted.

THE DIGITAL CAUCASUS PROJECT The Digital Caucasus project, which is also being implemented by CENN via a grant awarded by the USAID Bureau for Europe and Eurasia, Economic Development, Governance and Enterprise Growth project, works to support the growth of SMEs involved in the sustainable tourism value chain. The pandemic has shown tourism businesses the importance of digitizing services and management mechanisms, and introducing information and communication technologies into their operations. The modern tourism market is characterized by competitiveness, including in terms of technological innovation. The main purpose of the project is to help the beneficiary companies in this, to create favorable conditions for them to better master and use innovative management platforms in their business to better develop their operations and ultimately to reap more

economic benefits. The project targets selected regions in Georgia, Armenia and Azerbaijan, and focuses on SMEs that are local service providers of ecotourism, rural tourism and adventure tourism, business associations and DMOs, as well as rural households involved in eco and rural touristic services. In addition, the project creates strategic partnerships with regional and local authorities in the target areas and national administrations active in the fields of tourism, protected areas and forestry.

THE BENEFITS OF BUSINESS MATCHMAKING GEORGIA TODAY spoke to several participants to find out more details about the importance of such cooperative meetings as that held this week, and about the future development prospects of local tourism, which itself represents a central pillar for the Georgian economy.

“The event will be useful for Tsalka beneficiaries to acquire new skills and put them to use in practice, find new collaboration prospects, speak face to face with future partners, etc.,” Tkabladze said. “Moreover, it will also be useful for those who plan to get involved in tourist activities in Tsalka, in order to be made aware of its tourism potential. This is not only a training;: we’ve found and revealed the needs of tourism sector representatives and small businesses in the region and then tailored this event to their needs to be as practical and useful as possible.” “Such cooperative meetings have an important role in the development and popularization of small and medium businesses,” said Nato Robitashvili, representative of the Georgian Ecotourism Association. “At today’s event, business representatives contributing to the economic development of the region, are present, and the experience and knowledge gathered as part of these trainings and meetings will positively affect their activities in the near future. Further, such events allow tourism businesses to connect with tour operators and acquire more partners and connections. Ecotourism is one of the main directions nowadays, especially against the background of the global pandemic. Now, the emphasis should be made on offering maximally “healthy” and safe tourist services to travelers. Georgia has big potential in terms of ecotourism, and the role of CENN and the projects ‘Embrace Tsalka’ and ‘Digital Caucasus,’ implemented by it and partner organizations, are of utmost importance in this process. Our Association and its numerous members will continue to firmly support and be actively involved in ecotourism development in the country.” During the event, Tamar Kakhidze, representative of the Tourism Product and Small Infrastructure Development Department of the Georgian National Tourism Administration (GNTA), spoke about the

current trends, challenges and requirements in the tourism industry. During her presentation, she highlighted the latest international trends of post-COVID travel, such as safety of tourists and sanitary norms, increasing demand for domestic tourist groups, and demand for adventure, eco, and agro tourism activities. She discussed the restoration of safe tourism in Georgia, the role and activities carried out by the Georgian National Tourism Administration in this process, and the importance of the involvement of private sector representatives. She further emphasized that promoting the private sector in quality improvement and target marketing activities are essential at this stage. The GNTA representative expressed readiness to collaborate and share experience with project beneficiaries on important issues for local tourism development. “The demand for eco, agro and adventure as well as wellness tourism is increas-

ing,” said Tamar Kakhidze. “Georgia offers various tourism products of these types, though the country possesses great potential to further diversity and develop these offers. Tourism is a strategic priority for the country in anti-crisis and economy recovery plans. So, to reduce the negative impact of the COVID pandemic, tourism businesses are supported with various initiatives from day one of the crisis, including economic stimulus packages, training courses, policy documents and guidelines, marketing activities and also small grant programs with the involvement of the donor organizations.” Within the framework of the event, tourism business representatives with similar interests and carrying out similar activities, had the chance to meet face to face and discuss essential issues such as the development and management of tourism business, management of food establishments, collaboration with travel agencies and sales, and so on. B2B meetings for winemakers were also held, allowing participants to find common interests and draw future collaboration prospects. At the end of the event, an info tour for accommodation and food facilities was also held for project beneficiaries at ROOMS Hotel, which also provided an important, practical experience for them in their daily activities.


10

SOCIETY

GEORGIA TODAY

APRIL 2 - 8, 2021

Young Artists: Etseri, Svaneti long, although this may work as a stimulus at the start. Eventually what each person wants to depict will emerge by itself, in any medium, be it visual arts, writing, music or whatever. You just be you, don’t force anything. You can’t successfully do this anyway, unless your actual art is mimicry. Be original. Is it too early to tell them this? I have always wanted to be not only an artist but a patron of other artists, a collector and supporter of their early work. Not just for the sake of saying, “I knew and collected N when she was just starting school,” but for the joy it brings at seeing development over years, decades. I seek, and hope to find, natural gifts which, encouraged, will emerge and flourish however and wherever their possessor ends up. A talent, after all, is not meant to be buried to keep it safe, earning its keeper only scorn and condemnation, but invested to see it grow and multiply into its full potential. A seed which, starting out almost too small to see, can grow into a whole tree lasting for centuries or millennia. Are they budding yet? Let’s watch, add water and sunlight, get out of the way, and see what we will see.

BLOG BY TONY HANMER

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t does me glad to see art being done in grade 1. This was my favorite subject in school (well, tying with English), right until the end, crowding out Math to the point that I barely passed the latter subject. It would be some years that art would redeem math when they fused for me in fractal exploration. But back to Etseri Public school… Grade 1 had put on an exhibition of its best work of the year so far, with three outstanding artists chosen: 1st - Marian Kvitsiani, 2nd - Sopo Pakeliani, 3rd - Nia Khorguani, taught by Eliza Gerliani. Most of the class of nine were still there when I went a couple of days ago to take photos, see the work and encourage the youngsters. They are already full of enthusiasm, but were suitably impressed to hear that my weekly article featuring them would be printed in a few thousand copies AND visible all around the world online. Plenty of color and creativity were on display in the works in crayon, paint and collage, and who knows where some of these children will end up? I told one boy that his crocodiles had been a part of my life when I lived in Zimbabwe at his age. Occasionally a neighbor would discover one of the monsters in their swimming pool. I had even had to overcome a natural terror of swimming in Canadian lakes as a 10-year-old, due to early fears of crocs and hippos lying in wait: the former as a

carnivore to actually eat one, the latter a herbivore only to kill and abandon. If a Picasso or Leonardo are waiting here for their turn to pounce on the world and dazzle it, only time will tell. This I do know: Svaneti has produced some outstanding artists in various fields over the centuries. Graphics, painting, calligraphy, woodcarving, music, singing and writing all immediately come to

mind. The writing, in Svan, will save the language from the extinction which currently threatens it. There is no lack of natural beauty available for inspiration here, in any season. Although we are currently still far too deep in snow for anyone’s liking, after freakish January rains and very unfortunate early budding, each part of the year offers its own delights, in both land-

scapes and towers. It’s all about seeing beauty anywhere, which I hope these children grow up learning. What they see is familiar because they have seen it from birth, whereas it’s much more exotic for me. But finding inspiration wherever you look, in the new or the old, is much of the battle of being an artist. I don’t think that they can force themselves to copy anyone else’s style for

Tony Hanmer has lived in Georgia since 1999, in Svaneti since 2007, and been a weekly writer and photographer for GT since early 2011. He runs the “Svaneti Renaissance” Facebook group, now with nearly 2000 members, at www.facebook.com/ groups/SvanetiRenaissance/ He and his wife also run their own guest house in Etseri: www.facebook.com/hanmer.house.svaneti

tourism and farming, and create economic opportunities for the communities living in close vicinity of the park. UNDP support comes from a $1.8 million GEFfunded initiative that assists Georgia in strengthening its national network of protected areas. With her visit to the Adjara Autonomous Republic, Vinton wraps up her three-year mission in Georgia. “I was privileged to lead UNDP in Georgia in a challenging time that saw

the pandemic emergency, economic crisis and social unrest,” Vinton said. “I am proud that in good times and bad, UNDP continues to be Georgia’s trusted partner, supporting the country in overcoming challenges and moving forward on a sustainable development path. As a strong believer in Georgia’s enormous development potential and great future, I am convinced that this amazing country will emerge from the crisis stronger than before.”

Making Urban Transport Greener in Batumi

P

ursuing its aspirations to become a “green city,” Batumi is transforming its public transport system with support from the United Nations Development Program (UNDP). Progress towards this goal was evident on April 1, during a farewell visit to Georgia’s second city by UNDP Resident Representative Louisa Vinton, who is completing her three-year mandate in the country. After years of preparatory work and planning funded by the Global Environment Facility (GEF), in 2020 the municipality established 3.8 kilometers of bus and bicycle lanes in the city center, and installed 30 multi-colour electronic information boards along the lanes to help passengers find the right route. In addition, seven new off-street hourly-paid parking zones were created in different parts of Batumi to free streets from chaotic parking. The parking zones can accommodate 230 cars in total and are

equipped with digital technology to display information about vacant parking places and control parking time and fees. UNDP has been working with Batumi City Hall and the City Council since 2015 to realize a new vision of urban mobility. Among the preparatory steps were a study of household mobility in 78 transport zones and a sustainable urban mobility plan that envisioned the introduction of a new parking model, optimization of public transport, and expansion of the biking network. Batumi then used the plans prepared with UNDP support to acquire a fleet of 40 lowemission and eight zero-emission electric buses from the European Union (EU) and the European Bank for Reconstruction and Development (EBRD) in 20182020. A new bus fleet and a more sustainable transport model helped halve the number of minibuses on the streets of Batumi and, currently, 13 of 19 municipal bus routes use the dedicated bus lanes.

During her visit to Batumi, UNDP Head Vinton travelled the new bus lane in an electric bus and met with Chairperson of the Adjara Autonomous Republic Government Tornike Rizhvadze, Acting Batumi Mayor Archil Chiqovani, and other officials, among them Batumi majoritarian member of the Adjara Supreme Council Tite Aroshidze, Director of the Municipal Bus Company Levan Lazariashvili, and the National Director of the Green Cities program, Etuna Lomadze. “Batumi’s seaside charm is threatened by over-development and urban congestion,” said Vinton. “UNDP has helped local authorities to create a more sustainable model, which aims to make the city center a green oasis where residents and tourists alike can enjoy free air and more places to walk, bike and live.” Vinton’s agenda also included a journey to the Machakhela National Park where UNDP helps protect unique biodiversity, promote green solutions in

First Case of Legal Gender Recognition in Georgia for Trans Woman

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or the first time in the country’s history, a transgender woman in Georgia has had her gender officially recognized. Georgian women’s rights group WISG reported on 31 March that the civil registry under the Justice Ministry had accepted an appeal from the woman to have her gender marker be changed from ‘male’ to ‘female’ in official documents after she underwent sexreassignment surgery. The woman has already received a renewed birth certificate reissued by the authorities, the group said. Women’s Initiatives Supporting Group (WISG) noted that this change is an important achievement, however, Georgia still lacks proper legislation in this direction. “To date, there is no legislative or administrative mechanism for legal recognition of gender. This fact is just an illustration of the established practice in the country, which has no relevant legal basis,” the group noted. In 2017, two Georgian transgender men filed a suit against Georgia in the Euro-

Image: Tbilisi Pride

pean Court of Human Rights after the authorities refused to change their gender markers in official documents unless they underwent sex reassignment surgery. The case is still pending in court. “Women’s Initiatives Supporting Group (WISG) deeply regrets the systemic problems in Georgia due to which LGBTQI persons in particular face barriers to properly exercise their rights and freedoms. The existence of such problems is on the one hand supported by societal stigma and stereotypes towards LGBTQI persons; and on the other hand, the state neglects the specific needs of the members of the group. “Trans people living in Georgia are deprived from the most important recognition. They cannot change the gender marker on their IDs since the mechanism for legal gender recognition (LGR) is not regulated by law. As of today, some trans people are forced to undergo unwanted, medically unjustified, expensive and life-threatening procedures in order to change their gender marker. “As a result of the failure to recognize

their legal gender, trans people become victims of discrimination and have their right to respect for privacy violated every day and when they are asked to show their IDs. This means that trans people are in unequal conditions at times of employment, service delivery and participation in daily life. All of this leaves LGBTQI group members unprotected, and makes them vulnerable to homo/ bi/transphobic violence and discrimination. “Moreover, the services at the individual medical facilities remain inaccessible for trans persons,” the WISG states. The Women’s Initiatives Supporting Group (WISG) is a non-governmental, non-profit-making feminist organization defending the human rights of lesbian, bisexual women, trans and intersex persons in Georgia. The main goal of the organization is to support the formation of a harmonious society based on principles of social justice by empowering women, which shall ensure full involvement and equal participation in social, political, cultural and economic life for all women.


CULTURE

GEORGIA TODAY APRIL 2 - 8, 2021

11

Gori Potter Keeps Tradition Alive as Part of UNESCO Days of Intangible Cultural Heritage uniting more than 300 craft-makers in Georgia, also strongly supports, by promoting, through festivals, masterclasses and exhibitions, these crafts skills, and offering grant schemes to both experienced and young masters involved in Marani-making. Givi Tatulashvili is the only potter living in Gori who continues a third-generation family tradition with his work. But we found out he hasn’t always worked with clay. “I’m a Construction Engineer by profession,” Givi tells us. “I worked for a large organization for years, but my father and grandfather were potters. My father, after returning from World War Two, decided to continue his father's craft, and my older brother worked as a ceramicist from day 1, graduating the Faculty of Ceramics at the Academy of Fine Arts in Tbilisi. When I got home from my job every day, I’d watch how my father and grandfather worked, and sometimes help them.”

WHEN DID YOU FIRST GET INTERESTED IN POTTERY?

Image source: qartli.ge

BY KETEVAN SKHIRTLADZE

G

eorgia is participating in a project of the Bulgarian ‘Regional Center for the Safeguarding of Intangible Cultural Heritage in SouthEastern Europe under the auspices of UNESCO’, called Days of Intangible Cultural Heritage. For two weeks from March 22, the Georgian side is using the unescocenterbg.org platform to present three elements that make up part of Georgian cultural heritage: the interconnected clay wine vessel (‘Marani), the khachapuri tradition, and Georgian dance “Kartuli.” GEORGIA TODAY contacted representative of the first element Givi Tatu-

lashvili, to ask him about his background and his craft. First, though, we’ll introduce you to the Marani. “Georgia is famous for its wine making traditions, which also include the diversity of wine vessels of peculiar types,” the site of the Bulgarian heritage center explains. “Amongst these is the Marani, a clay wine-drinking vessel with a circular duplex structure. The lower section is generally an openwork pot serving as a base for the upper section. The upper section consists of many small open-top bulbous vessels resting on and interconnected by means of a hollow tube which rests on the rim of the base. The main figure of the upper section is a zoomorphic sculptural ram or stag head, from whose open mouth one drinks the wine.” Marani were traditionally used, as bowls

and horns are today, at the communal supra (feast) table, as a shared drinking vessel. Making a Marani is no easy task, and requires skills typically passed down from generation to generation. In fact, the tradition is today endangered, as there are only a few masters, among them Givi Tatulashvili, who still make them. To make matters worse, there is no government support at the policy level. However, the local government in Gori, in a show of support for the art, funded Givi in arranging a special museum (the Tatulashvili Ceramic StudioMuseum, 10 Ninioshvili Street, Gori) alongside the Tatulashvili family workshop, which is the main center of Maranimaking today. The Georgian Heritage Crafts Association, as an umbrella organization

I’ve been interested in pottery since I was a child, but I couldn’t pursue it since I chose another profession and because I wasn’t able to study it from the beginning. Nikita Khrushchev [Editor: he led the Soviet Union as the First Secretary of the Communist Party of the Soviet Union from 1953 to 1964], who saw working at home as a reminder of capitalism, forbade having a workshop at home. To get around the restrictions, my father started selling his pieces in stores, so that allowed him to have his own workshop. I would sometimes join him in his workshop and help out. Then came a difficult situation in the country, I lost my job: construction workers weren’t needed anymore, so I took on a job teaching construction in a vocational school, while also doing some pottery at home. Then my teaching position got canceled and I decided to go full-time as a ceramicist.

TELL US ABOUT YOUR WORKSHOP. The workshop has been here for well over 100 years. The first (brick) kiln was built in the 19th century. I won a competition which got me financing to repair the workshop. The government program ‘Produce in Georgia’ bought me a new kiln, and with the support of Gori City Hall, I opened a historical museum to display the works of my father, brother, and grandfather. I have students, both young and old, and they help me. I teach at a school on the occupation line. I was supposed to be there today, in fact, but I had my COVID vaccination and couldn’t make it.

done in the old Georgian method. It’s about beauty. I like to use white and green, as they are traditional Georgian colors, used on ancient pottery.

WHAT ARE YOU WORKING ON NOW? I do what comes to me in the moment. It depends on my mood. Right now I’m making flower vases. With clay, you can sculpt whatever you want. I look at the works of my father, brother, and grandfather for inspiration, sometimes I think up something new. I want this craft, which is so old, not to be lost, and to be continued by the next generation. There were many craftsmen in Gori, but now I’m the only one who works on traditional vessels.

WHAT MAKES 'MARANI' WINE VESSELS SO SPECIAL? It’s a historical wine drinking vessel, and my ancestors would create them. The spout can be the head of a deer, sheep, goat, or a bull, as long as wine can be drunk from it. In the past, almost every family had this kind of vessel at home.

DO YOU HAVE ANY OTHER SUCH UNIQUE WORKS? Not now, but I have pottery made by my brother 50 years ago. I do what my ancestors did. I’m a member of the International Cultural Center and the Traditional Craft Association, continuing our Georgian traditions.

WHAT CAN BE DONE TO ENCOURAGE YOUNG PEOPLE TO LEARN TO WORK ON CERAMICS AND CONTINUE THESE TRADITIONS? They do learn it, and young people come to me to study ceramics. This profession has become something of a fashion again today, and more girls are studying ceramics too. Check out the UNESCO project and Givi’s works at these links: https://www.unesco-centerbg.org/ en/2021/03/23/marani_wine-vessel/ h t t p s : / / w w w. y o u t u b e . c o m / watch?v=yrG5sQ6Vhoc

WHAT ATTRACTS YOU TO THIS FIELD? Clay is soothing, it's beautiful. My works are folk and traditional. Everything is

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