Issue no: 1338
• MARCH 11 - 17, 2022 • PUBLISHED WEEKLY
PRICE: GEL 2.50
In this week’s issue... A Round Up: International Reactions to Ongoing War NEWS PAGE 2
Romanian MEP: “It’ll Take 800 Billion Euros of Russia’s Money to Rebuild Ukraine” POLITICS PAGE 3
Invasion Episode 2: Armies March on their Stomach POLITICS PAGE 4
Georgia’s Balancing Game POLITICS PAGE 5
FOCUS
ON UKRAINE
Georgia stands behind Ukraine as millions flee the country
PAGE 3
Image source: CEPA
“Putin sees himself as a Tsar of all of Russia and Russians” - Exclusive Interview With Former Latvian President Vike-Freiberga INTERVIEW BY VAZHA TAVERBIDZE
T
he demands that President Putin has put on Ukraine, both before the war and now, are totally outrageous. They sound insane, frankly. He wants to destroy everything that has been achieved since 1997. Well, sorry, I'm one of those who spent eight years of my life as president working extremely hard for that, it was our conviction and our choice. So Mr. Putin has no say on it. His pretensions to rule the world, to be the Tsar of the whole European continent are a total madman’s dream – Told former Latvian President Vaira Vike-Freiberga to Georgia Today. Freiberga holds the historic distinction of being the leader under whom Latvia became a member country of both NATO and the European Union. Our senior correspondent Vazha Tavberidze spoke to her at the Baltic Defense College’s 'Conference on Russia' that took place in Tartu, Estonia on March 3-4. Continued on page 4
EU, FAO Support Georgian Winemakers with International Expertise as Exports Hit 107 mln Bottles BUSINESS PAGE 7
Successful 2021 - terabank Summarizes Small and Medium Business BUSINESS PAGE 8
Life Imitating Art. March 3-5, 2022 SOCIETY PAGE 10
Georgia’s Art Palace – from Decay to Decadence and European Recognition CULTURE PAGE 11 CULTURE PAGE 11 Prepared for Georgia Today Business by
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Former Latvian President Vaira Vike-Freiberga. Photo by lim.lv
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2
NEWS
GEORGIA TODAY
MARCH 11 - 17, 2022
A Round Up: International Reactions to Ongoing War
Photo source: macleans.ca
BY KETEVAN SKHIRTLADZE
D
ue to the ongoing war in Ukraine, most international news revolves around it. The UN High Commissioner for Refugees, Filippo Grandi, wrote on Twitter that one million refugees had moved from Ukraine to neighboring countries. “In just seven days, we have witnessed the exodus of one million refugees from Ukraine to neighboring countries. For many millions more, inside Ukraine, it’s time for guns to fall silent so that lifesaving humanitarian assistance can be provided,” tweeted Filippo Grandi. The President of Georgia Salome Zurabishvili had a telephone conversation with the US Secretary of State Antony Blinken. The president wrote on Twitter: “Great telephone conversation with Secretary Antony Blinken. Concurred in our mutual support for Ukraine. Appreciate the resolute support of our United States partner to our territorial integrity, security in challenging times. Thanks to President Biden for supporting the National Accord Process. Hope for Secretary Blinken’s visit to Georgia in the near future.” Antony Blinken thanked Zurabishvili
and the Georgian people for their support of Ukraine. “Spoke with President Salome Zurabishvili to thank her for the people of Georgia’s support for Ukraine and to underscore the firm U.S. commitment to both Ukraine and Georgia’s sovereignty and territorial integrity,” Blinken tweeted. As for the Russian side, Russian President Vladimir Putin has said that Russia “does not have bad intentions towards its neighbors.” “We do not have bad intentions towards our neighbors. I advised them not to escalate the situation, not to start with any restrictions. We fulfill and will fulfill our obligations. We do not see the need for the situation to escalate or the relationship to deteriorate. All our actions are always a direct response to the unfriendly steps against the Russian Federation. “I think everyone should think about normalizing relations and cooperation,” he stated. The OSCE Special Monitoring Mission is suspending its activities in Ukraine, as mentioned in a statement by the OSCE. “The process of a temporary evacuation of all international members of the mission is almost complete. The last group – the head of the mission and the top leadership, is leaving Ukraine,” the statement said. As for the local members of the OSCE,
the organization says that another group has started to leave Kyiv. US President Joe Biden announced on Tuesday that his administration is banning Russian oil, natural gas and coal imports to the US in response to the Russian invasion of Ukraine. “Today I am announcing that the United States is targeting the main artery of Russia’s economy. We're banning all imports of Russian oil, gas and energy,” Biden said in a statement from the White House. “That means Russian oil will no longer be accepted at US ports and the American people will deal another powerful blow to Putin’s war machine.” “We will not take part in subsidizing Putin’s war,” Biden added. Reportedly, despite the growing dynamics of gas prices, the move has bipartisan political support in the US. “The US will make the move unilaterally, without its European allies, due to disagreement among European nations about whether to ban Russian energy imports. EU countries have significantly more exposure to Russian energy than the US,” reported CNN. Bloomberg was first to report the move. The President of the United States, Joe Biden, wrote on Twitter that Putin may be able to take a city – but he will never be able to hold the country. “This much is already clear: Ukraine will never be a victory for Putin. Putin may be able to take a city – but he will never be able to hold the country,” tweeted Biden. As for Georgia, Ukrainian MFA released a statement saying that the Ministry has noted the information regarding Russia canceling part of trade sanctions against Georgia. Ukraine’s MFA says they believe the promotion of trade relations with Russia, whose armed forces are attacking peaceful Ukrainian cities with missiles and bombs, killing innocent civilians, including children, to be unacceptable in the strongest terms. “Ukraine has noted the information regarding the cancellation of part of the Russian Federation’s trade sanctions against Georgia. “It is underscored that the Russian Federation approved this decision against the backdrop of the Georgian authorities’ disinclination to support the new sanctions of the European Union against Russia.
“We believe the promotion of trade relations with Russia, whose armed forces are attacking peaceful Ukrainian cities with missiles and bombs, killing innocent civilians, including children, to be unacceptable in the strongest terms. “We call on the official Tbilisi to distance itself publicly from the decision of the Russian Federation, whose leadership is violating international law and perpetrating war crimes in Ukraine. “The conduct of business with Russian companies provides Russia with additional resources to continue its atrocious war on Ukraine, and the profit thus earned is soaked in the blood of the murdered Ukrainian citizens. “Due to the 2008 Russian armed aggression against Georgia, the Georgian people, unfortunately, are well aware of the horrors of war that Ukrainians are forced to go through now. At the same time, it appears that the Georgian authorities must have forgotten all that and are now trying to seize the moment to cater for their own interests,” reads the statement. David Arakhamia, chairman of the
the statement said. However, certain Georgian companies, including one of the biggest producers of dairy products, Sante, refused to export their products to the Russian market. The Russian government has approved a list of countries and territories that carry out “unfriendly actions” against the country. Georgia is not on the mentioned list. According to the decree of the Russian Cabinet of Ministers, the list of nonfriendly countries includes: Australia, Great Britain, EU member states, Iceland, Canada, Liechtenstein, Monaco, New Zealand, Norway, South Korea, San Marino, Singapore, United States of America, Taiwan, Ukraine, Montenegro, Switzerland and Japan. According to the document, the Russian Federation, Russian citizens and companies that have financial obligations to creditors of countries that are on the list of unfriendly countries, will be able to pay them in rubles. In addition, all transactions of Russian firms with citizens and companies of
Photo source: dw.com
Servant of the People faction in the Verkhovna Rada of Ukraine has also released a video address regarding the lifting of economic sanctions on Georgian milk and wine by Russia, asking the citizens of Georgia to clarify this issue with the government. “I am Georgian and I want to remind all Georgians that when Russia treacherously attacked Georgia, Ukraine immediately, without considering its economic loss, showed all necessary support to Georgia – provided arms, helped with military instructors, to stand with a friendly, brotherly nation. In your opinion, now that Russia has already attacked Ukraine, has Georgia responded properly? Please, Georgian people, I believe in you – clarify with your government, resolve this issue, because we would not want to see such a betrayal from the Georgian people. I have always been proud to be Georgian while living in Ukraine and being in power here. I am really ashamed today,” said David Arakhamia. The Georgian National Food Agency says the decision on importing Georgian dairy products to the Russian market was made by the Russian side on March 5. According to the decision, the Russian Federal Veterinary and Phytosanitary Service (Rosselkhoznadzor) allowed 15 Georgian companies to export products to the Russian market. As the agency explained, negotiations on the export of Georgian animal products to several countries, including Russia, have been underway since 2020. “The National Food Agency is in talks with a number of countries, including successfully concluding talks with Saudi Arabia a week ago. Negotiations have been underway with the Russian Federation since 2020, on the basis of which a decision was made to allow the export of Georgian animal products to the Russian Federation and other countries,”
listed countries will be approved by the Government Commission for Foreign Investment Control. US Senator Cardin emphasized the dangers for Moldova & Georgia amid Russia’s invasion of Ukraine. “If not for the strong opposition of the Ukrainians, and if Mr. Putin had taken Ukraine at the time he was planning, it would have been really dangerous for Moldova and Georgia,” United States Senator Ben Cardin said at a meeting of the Foreign Affairs Committee discussing the Russian invasion of Ukraine. Senator Ben Cardin directed the question to Victoria Nuland, the Under Secretary of State for Political Affairs, during a discussion centered on the ongoing war in Ukraine, asking what official Washington is doing to help Moldova and Georgia. Cardin suggested, “Putin may be on his way to Moldova and Georgia” next. “What steps are we taking today to help Moldova and Georgia, recognizing that if the circumstances change and Mr. Putin believes he has the ability, he would not hesitate to cross those borders? He’s already done it in Moldova and Georgia. “What steps are being taken so that those countries are going to be in the best possible position to defend themselves in the event that Mr. Putin decides he’s going to move more aggressively in those two countries?” the Senator asked. In her response, Nuland told Cardin that the United States has a long-standing relationship with Georgia on security issues, and that this partnership will continue. “They [Georgia] have also contributed regularly to all kinds of NATO operations and NATO exercises and have received lots of US military training and equipment over the years, which […] accelerated quite a bit after President Putin’s invasion of Georgia in 2008,” she noted in her reply.
POLITICS
GEORGIA TODAY MARCH 11 - 17, 2022
3
‘No To Russia!’ – Protest Rally Held in Tbilisi
Image source: apnews.com
BY ANA DUMBADZE
A
protest rally ‘No to Russia!’ was held in front of the parliament building in Tbilisi on March 7th. People were protesting the Georgian government’s attitude to the ongo-
Protestors outside the parliament building in Tbilisi
ing war in Ukraine, calling it “shameful.” Protesters demanded the resignation of Prime Minister Irakli Garibashvili and expressed solidarity with Ukraine. Demonstrators had three main requirements: – Establish a visa regime with Russia – Prohibit Russian media outlets – Close airspace for Russia A statement issued by the rally organ-
izers said that all democratic countries are now united for Ukraine amid the Russian invasion, expressing their support for its sovereignty and freedom. “Georgia’s government has chosen the side of Putin, a war criminal – Irakli Garibashvili has demonstratively refused to join international sanctions; to this day, the airspace remains open for Russian aviation; Irakli Kobakhidze has launched
an initiative to give Russia an excuse to accuse us of inciting ethnic strife against the Russians; the government prevents volunteers and medical staff from traveling to Ukraine; until now, Russian propaganda media have been operating in Georgia; Russian citizens still enjoy visa-free travel when entering Georgia. “The Ukrainian people consider the actions of the Georgian government as
a betrayal of Ukraine, a knife in the back. Only we, the citizens of this country, can wash away the shame that the Georgian Dream government creates every day,” the statement said. The protesters moved from the parliament building to the government administration, where there was a confrontation between the protesters and law enforcement. Several protesters were arrested.
Romanian MEP: “It’ll Take 800 Billion Euros of Russia’s Money to Rebuild Ukraine” INTERVIEW BY VAZHA TAVBERIDZE
I
t is basically the Marshall Fund for Ukraine, with the aggressors money. Many colleagues are thinking the same thing - It doesn't matter which political side they are on. The idea is getting traction. I believe that it's going to be successful, because when you see this kind of reaction, it means that regardless of the political issues, one is going to vote for it. I'm pretty confident that we will eventually get to do it. We are working on making this into an EU-wide motion” – said Romanian MEP (Renew Europe) Vlad Gheorghe to Radio Free Europe’s Georgian service as he discussed his recent appeal to the European Commission to freeze the sanctioned Russian oligarchs European assets and establish a Rebuild Ukraine fund – that would be composed partially by EU resources, while another part will be funded by the recovered frozen assets which belong to Russian oligarchs and individuals within Putin’s inner circle sanctioned as a result of Russia’s invasion of Ukraine. Gheorghe claims that if we hold Russia fully responsible for the havoc it has wrought in Ukraine, it's only logical that whatever Russians destroy will be rebuilt by their own money.
ROUGHLY HOW MUCH AND WHO EXACTLY ARE WE TALKING ABOUT HERE? We're talking about 800 billion euros. This is the amount that we know of - I
underlined the fact that this is what we know today. So it could be more tomorrow or in the next few weeks. I must also say that there have been precedents: The case in Libya, Afghanistan and many other examples. It would be a first for such a big country. But it doesn't matter how big you are, when you're an aggressor, you need to take responsibility. So the aggressor needs to pay for the damage that it has inflicted. This is if we - in the West - live in a world where the rule of law matters. This is what we need to do. So Russia must pay for its aggression with its money. The final objective should be to use this to rebuild Ukraine.
IN RELATION TO UKRAINE, GEORGIA AND MOLDOVA GETTING EU CANDIDATE STATUS – HOW LIKELY IS IT FOR THE LATTER TWO? Well, if Putin has managed anything so far, he has managed to open the eyes of the European Union, which was maybe lacking in the area of responding to crisis situations. I think he resolved this problem for us. Romania applied in 1995 and had to wait for twelve years to become a member in 2007, but those days are long gone. We're going to see a fast track process for membership into the European Union, because people in EU member countries now see that we need to protect our citizens, no matter where they are or whether they are in the EU now, or will be tomorrow. We are all Europeans, and they all need to be protected, because we share common values. I believe that together with Ukraine, Moldova and Georgia should also be given candidate status. I expect it
to happen and I want it to happen. This is the time to do it. In history, there have been many times, many opportunities, that we've missed – let's make this a successful opportunity in history to show what the European Union is about.
UKRAINIAN FM KULEBA THINKS OTHERWISE – HE SAID THAT GEORGIA AND MOLDOVA JUMPED ON THE “KYIV SPEED TRAIN” AND THAT UKRAINE’S CASE SHOULD BE DISCUSSED SEPARATELY FROM THE LATTER TWO. WHAT’S YOUR TAKE ON IT? Well, in a way I understand where he is coming from, I realize the situation he was thrown into. But on the other hand, I must say that the correct way to do it is to have an alliance between these countries because, yes, Ukraine is at war, but yesterday it was Georgia, and tomorrow it could be Moldova, God forbid. Had Ukraine not stood up to Putin, it is entirely possible that we'd have seen something similar in Moldova too. Both Georgia and Moldova have a passive presence of Russian military on their soil - that's just a button, a click away from active engagement. That is why I think it is obvious that they should be treated the same way.
CHISINAU AND TBILISI’S RELUCTANCE TO JOIN SANCTIONS AGAINST RUSSIA – CAN THIS HAVE AN IMPACT ON BRUSSELS DECISION-MAKING? No, I don't think so. It's our job to impose and to work on the sanctions. That's our job, not their job. The EU needs to step
Romanian MEP Vlad Gheorghe
forward and be a leader on this. We need to understand the smaller non-member country's position, because they are next to a huge power. As long as they're not a member of the European Union, we
should accept and respect such decisions. When they get to be a part of the European Union, then the case will be different. Then, we should and will ask them to back the sanctions policy.
4
POLITICS
GEORGIA TODAY
MARCH 11 - 17, 2022
Invasion Episode 2: Armies March on their Stomach
Pro-Russian troops in the separatist-controlled settlement of Mykolaivka, Ukraine, on March 1, 2022. Photo by Alexander Ermochenko/Reuters
BY MICHAEL GODWIN
D
espite a massive build-up of forces, installations, and an influx of materials, the Russian military has reportedly been suffering from a litany of pains during its ongoing invasion of Ukraine. While pushing Ukrainian forces back to the major cities, they have suffered the same plague many armies going back to antiquity have suffered: supply and logistics. Media and literature often depict the clash of nations as being composed only of valiant cavalry charges, steadfast lines of infantry, or battalions of heavily armored tanks. However, it is the veins and arteries of supporting units behind the lines that make the battles happen. Russia is now finding that the logistics framework for this invasion may not have been adequate enough to allow those battles to continue with the momentum needed. Food, fuel, and vehicle parts have all come up short for many of the advancing Russian elements, leading to surprising encounters. Russian soldiers have been caught trying to steal local supplies from civilians, or simply surrendering
to Ukrainian defenders. In several incidents confirmed by the United States Department of Defense, Russian soldiers have even sabotaged their own vehicles and equipment so as to avoid being sent forward into combat. Many armored vehicles, abandoned by their Russian crew, have been restored by Ukraine. This logistics oversight is rooted in the pre-conceived vision by Russian high command that Ukraine would fall quickly; that the social, economic, and political environment was unstable and yearning for a return to the heights of the Russian Empire under the tsars. Flowers, bread, and salt as they say, were to be thrown at the arriving liberation force. But as many young soldiers are learning the hard way, this is far from the truth. Instead, it is rifle rounds, anti-tank rockets, and molotov cocktails. Despite its many flaws, the United States has mastered the art of foreign conflict. Since virtually all combat takes place worlds away from their sovereign soil, the logistics framework of America’s fighting forces must be seamless. Forward bases and depots must be fully capable of restoring a fighting unit's capabilities at a moment's notice, and in the event of highly kinetic combat operations, immediately. Russia has opted to bank on the con-
cept of blitzkrieg. This idea reduces the need for overwhelming supply in lieu of a swift and sudden victory. Since this is no longer an option and Russian units find themselves fighting a grinding and taxing war, they have been forced to opt for two new options. These options have been broadcast on the social media front of the war; steal from other Russian units, and steal from the enemy. Images and video of Russian soldiers looting and ransacking shopping markets and family bazaars have made the rounds on the internet. This is an acceptable tactic in disparity, typically used by special operations and recon units in advance of regular forces, separated from normal routes of supply. However, these are Russian regular army units, ones that should be connected to a standard campaign supply network. These units should be virtually overflowing with an excess of arms, ammunition, water, and food. Ukrainian units have found many of the surrendering Russian soldiers to be suffering from malnutrition, seeking meals and warmth rather than being left with no other option in their own units. Russia has apparently left many of its forces on the front without the framework necessary to adequately provide for these young men. Lieutenant Colonel, US Army (retired), Michael Phillips, a former logistics officer, frames it as a logistics-based problem, but not something that is suddenly new. This, he states, is something Russia has been building for months, particularly in the northern front. Units advancing from Belarus and western Russia were too far stretched from their original positions, with no advanced logistics bases. Since there was no mid-way logistics and supply point between their forward combat positions and the warehouses where the materials were stored, the units were left waiting as support units scrambled to move product. In addition to the logistical woes, the Russian force has displayed a surprising distaste for aggression and direct combat. Commanders have limited their exposure and maintained an unusual
standoff compared to the image much of the pre-invasion Russian military machine presented to the world. In a recent recruitment video, they likened the honing and training of a Russian service-member to that of the machining and precision in production of a rifle. On the contrary, this Russian machine has been jammed. Their force has been stalled, clubbed into a protracted fight with asymmetric forces all too happy to fight the long war. These modern partisans have devoured offensive after offensive, consuming more young men of the Kremlin’s order. With everyone having a documentation device, a smart phone, in their pocket, it is all too obvious these Russian fighters have little fight in them. This kaleidoscope of images, gleaned from intercepted communications, prisoners of war, and encounters by Ukrainian civilians, build a shocking view. Russia, who was marketed on the world military stage as a green monster incapable of defeat and fault, has faltered in a fight with what was supposed to be a lesser opponent. The image that Russia was a first-rate military, on par with that of the United States, the UK, China, and India, quickly dissolved. Now, with the cities in their sights, the Russian military will have to reckon with popular resistance and the inevitable
What a soldier needs most is two things: a full belly and a pair of shoes - Napoleon Bonaparte “nation building” that the United States and NATO struggled with so much in Iraq and Afghanistan. However, unlike the people in those nations desperately trying to work with the current situation, the Ukrainian people are mobilizing against the very institutions Russia is imposing upon them. Forcing an undesirable regime on the very people that threw it off in 2014 is a mixture that only serves to invite another revolt, and, as a result, this will create Russia’s new “endless war” - an “Afghanistan” in Europe’s own back yard.
Images uploaded to social media of alleged Russian soldiers. These pictures were posted by the Conflict Intelligence Team (CIT) on Twitter
“Putin sees himself as a Tsar of all of Russia and Russians” Exclusive Interview With Former Latvian President Vike-Freiberga Continued from page 1
COULD WHAT IS HAPPENING NOW IN UKRAINE HAVE BEEN AVOIDED? Well, again, remember how he claims it could have been avoided. I mean listen to the words coming from his own mouth. The Ukrainians should accept that they are not a nation, that they do not have a language, that they don't have a history, that they do not have a right to national independence, that the governments that they have chosen and elected are illegitimate, that they are Nazis, that they commit genocide against the Russian speakers and all sorts of insanities. They cannot accept that. These are outrageous and unfounded demands that he is making on them. So, if that's what it takes to prevent it, then no, it was impossible to prevent. I think he wanted to start a war to demonstrate a show of force and to scare the whole world in order to impose his demands. People have been trying to accommodate Russia, to pacify Russia, not to anger Russia. When we were a candidate country, I often heard the phrase: Russia is not going to be happy if the Baltic countries become members of NATO. President Chirac of France told me - “you should not be playing with the mustache of the bear, you shouldn't annoy him.” - I said, no, Mr. President, but we do not want to be eaten by the bear either. That is the point. Putin sees himself as a Tsar of all of Russia and Russians. That is quite a broad domain. When he took South Ossetia and came within 49 kilometers of Tbilisi, the world said, oh, well, it's too bad, but what can we do? That's the way it is. Too bad for the Georgians. Then in 2014, he
went further, and actually annexed a part of the country. He also denied that Russia was in Eastern Ukraine to start with. It's sort of an Alice in Wonderland, the world he lives in. Everything he tells his people or the world is a warped image of reality. I remember President Poroshenko, at the Munich security conference, showing a slew of Russian soldiers passports that had been obtained from the prisoners that they had taken. They had Russian passports, these little green men without insignia, but Putin will deny to his dying day and say no, no, they were not Russians. They are Russian. Television tells Russia's inhabitants that no, they are not shelling Ukraine, that these are lies by foreign newspapers.
WHAT SHOULD THE WEST’S RESPONSE BE AND WHAT ARE THEIR LIMITS? We have heard from Prime Minister Johnson and from President Biden on numerous occasions that we do not wish to have a third world war with nuclear weapons, but at the same time agree that Putin is threatening the world. I think that the borders of the NATO Alliance are absolute red lines that Mr. Putin must not cross. He thinks that by dangling his nuclear weapons in front of us, he is going to impose his completely unjustified and unreasonable will on the rest of the world. We cannot go on accepting that. I think people are beginning to realize that his demands are unreasonable and are to appease Russia. This has been the song and dance that we've been hearing ever since our renewed independence - appeasing Russia, not making
them angry, not annoying the bear. Western powers were not willing to give a Membership Action Plan to Georgia, nor to Ukraine at the 2008 NATO Summit. As soon as they did that, Georgia was invaded. They should have given the Membership Action Plan and let both countries proceed with the necessary reforms and to declare and accept their readiness. But they were weak. They did not want to annoy the bear. Russia took this as a sign. Our hands are free, they're not going to oppose us. I think that the West has to draw a line in the sand and show them where the limits are. So far the borders of the NATO Alliance are definitely the limit.
if the ruble tumbles down in value, every citizen of the Russian Federation, no matter what kind of propaganda you feed them, is going to go to bed hungry. They'll be told that it's the fault of the West, but they need to start wondering about the decisions that their own leaders have actually been making. Some of them will probably continue thinking that they've been wronged and nobody loves them, because they're so wonderful and better than anybody else. But there will also be people who start wondering, what on earth is this? Is this the direction we're being given by our leaders? This is why more sanctions should be added.
NO LIMITS OUTSIDE NATO BORDERS THEN? LET’S TAKE THE WORST CASE SCENARIO - WHAT HAPPENS IF PUTIN DECIDES TO USE NUCLEAR STRIKES ON UKRAINE?
ON RUSSIA & UKRAINE NEGOTIATIONS- WHEN FACING AN EXISTENTIAL THREAT, WHAT IS ACCEPTABLE FOR UKRAINE TO NEGOTIATE ON?
Then Western powers will have some very serious thinking to do. Frankly, I would not advise Mr. Putin to test the resolve of the West or to push them too far. They of course do have a responsibility towards their citizens. Using nuclear weapons is considered a taboo – then again, attacking a country without reason is also a taboo, but he has done it.
HOW SATISFIED ARE YOU WITH THE SANCTIONS THAT WE HAVE SEEN SO FAR? They're much better than before. This time, a decision was made very quickly. An agreement was reached and the results were felt amazingly quickly because the next day the ruble tumbled down and,
That’s a good question. I think that what they are hoping for is that at some point a ceasefire, at least, could be agreed on, as the humanitarian crisis is getting bigger by the day. If a ceasefire could somehow be agreed, that would be the first step. Then one could start thinking about how Putin can withdraw without losing face, and how Ukraine can accept some potential conditions, for instance, neutrality for the next 20 years. They could potentially offer that sort of thing, but I doubt Mr. Putin would settle for that. Austria, Finland, Switzerland, Sweden and Ireland wish to remain neutral but then again, if my country’s example is anything to go by, Latvia tried to be neutral. Before the Second World War, it didn't do it any good. We were occupied
first by the Soviets, then by the Nazis, and then annexed by the Soviets and stayed that way for 50 years against our will, and against international law. So in our case, having a collective defense alliance was crucial for us, extremely important for our sense of security. That is where the West should come in: priority number one is a ceasefire. The second priority would be to get the Russian army out of Ukraine. That's what should happen. Ceasefire first, withdrawal of troops later. I’m sure that NATO, who Mr. Putin claims to be threatening Russia, can give him written assurances that they do have no plans whatsoever of attacking him. Latvia, with our huge army and our massive population, can promise the Russian Federation that we are not about to attack them. So if he is so scared, and if Mr. Lavrov is shaking in his boots, I am sure that written assurances can be given that there is no intent to attack Russia on anybody's part.
WHEN SOME SORT OF AGREEMENT IS REACHED, WILL THE DOORS OF WESTERN CAPITALS STILL BE OPEN FOR MR. PUTIN FOR A LOVELY CHAT WITH EUROPEAN LEADERS? I think that Mr. Putin has lost more than he counted on with this adventure; his prestige is forever damaged. He has been labeled as a war criminal, as somebody committing crimes against humanity. As such, he will have difficulty reintegrating with what is called polite international society, he will have very, very few friends left outside of his own country, Belarus and, possibly, Venezuela.
POLITICS
GEORGIA TODAY MARCH 11 - 17, 2022
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Could Wars Be Avoided? OP-ED BY NUGZAR B. RUHADZE
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lbert Einstein - 'I know not with what weapons World War III will be fought, but World War IV will be fought with sticks and stones.' I’ve been taking this famous quote by the genius very seriously since the Russian president’s recent verbal threat of nuclear assault resonated throughout the world. Scary, wasn’t it? To bring my negatively-impressed self to senses, I went to one of wonderful Albert’s more encouraging thoughts that peace cannot be kept by force but can only be achieved by understanding. These words fill my boggled mind with some confidence that wars can be avoided if Man starts thinking more rationally and a little wiser than, let’s say, in the time of Mongolian invasions 700 hundred years ago, which resulted in 60 million deaths. Incidentally, the Second World War went something over that figure, which means that Homosapiens have not changed their attitude about violence as such in the thousands of years they have been around. Isn’t this funny? We are still killing each other with the same medieval ease and determination, all the while raising the gravest questions about modern human behavior. The thinking part of the world might still remember that in the recent past, the well-known brief encounter between United States President Donald Trump and North Korean Leader Kim Jong-un gave impetus to a frightening awareness that Mankind is moving closer to a nuclear war. Putin’s hot remark (let’s reservedly call it ‘remark’) on the same subject has strongly substantiated that ominous presumption. Auspiciously, the scientific forces in the field of psychological research are not idle and seem to be optimistic when it comes to the question of whether wars could be avoided. Provided the answer to this question
is positive, another one pops up forthwith: How to do that? How to actually prevent war and make our beautiful earth a safer place to live? Well, if in the past several millennia, Man has not been able to get its act together and find a way to establish stable peace on planet Earth, how could a regular contemporary researcher do the job overnight? But “There is Still Hope, Brother” – this is the optimistic phrase in the finale of the 1959 Stanley Kramer’s post-apocalyptic science fiction drama film ‘On the Beach’, depicting the aftermath of a nuclear war. Having seen that movie, one would not only not threaten their fellow planetdwellers with nuclear attack, but would never think about it even in their most vicious imagination. Writing this, I certainly have in mind the current Russian-Ukrainian war and the possibility of avoiding it if the parties to it, as well as their outside ‘helpers’, had acted more wisely and more rationally, as a result of which the unwanted and totally unjustified bloodshed could have been prevented. I will only attempt here to construct a hypothetical model of a happier development of events: A healthily and pragmatically thinking third party was found and assigned by the international community to take on a logically-strong mediationhonestly, professionally and perseveringly looking for solutions to the dispute between USA-NATO and Russia to resolve the prolonged prewar conflict between them. In doing so, said mediator tried to let both Russia and Ukraine save face and maintain a positive moral image, not letting any of the sides lose sense of their long-earned international authority. The chosen mediator was moderately successful in building trust, encouraging communication among all actors in the given version of prewar interaction, being sure that all parties had a genuine trust of the mediator. The mediator arranged give-and-take exchanges between the conflicting parties, reducing hostilities and building trusting relationships with
final conflict-defusing mutual proposals. The extant psychological research suggests that distrust can be reduced and peace promoted if conflicting nations or groups are engaged in specific cooperative ventures with mutual benefits, and the mediating interventions are most effective when they involve interactions,
considering equal status, common goals and cooperation. More attention needs to be given to developing and implementing prevention strategies that remove the conditions for conflict and war, which was not verily done by America, NATO and Russia before the war became inevitable. Adopting preventa-
tive strategies based on cooperative ventures with mutual benefits is invaluable. The social network threats can simply fuel the fire of conflict, but wellthought-out strategies for mediation and cooperation may well help to extinguish it. And there is no doubt whatsoever that prevention is better than cure.
Georgia’s Balancing Game ANALYSIS BY EMIL AVDALIANI
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ussia’s war on Ukraine is transfixing the world, and for obvious reasons. The sheer brutality and the size of the attack on Europe’s second-biggest state grab all the attention. But under the radar, there lurks another place where Russia’s actions are closely watched, feared, and even antic-
ipated should the offensive in Ukraine present even short-term opportunities to the Kremlin. Georgia is the other country mentioned in Russia’s security demands made in December and addressed to NATO and the EU. The country has waged war with Russia, in 2008, has been invaded, and has two regions occupied (Abkhazia and Tskhinvali, often incorrectly referred to by the Soviet-invented term of South Ossetia.) As you would expect, Georgia is focusing very closely indeed on devel-
opments. Russia’s decision to confront its “Ukraine problem” is only a part of a larger program of pushing Western influence away from its immediate neighborhood and restructuring the European security order. And Georgia is a critical piece of the puzzle. The fear is that if Russia is victorious, it would turn its attention to Georgia. An immediate military campaign is unlikely, but the Kremlin might plausibly extend demands that the country renounces the promise
2008, Russian soldiers block the road on the outskirts of Gori, northwest of the capital Tbilisi, Georgia. Photo by Darko Bandic?AP
made through NATO’s 2008 Bucharest summit that it will one day become a member. Russia could use its small, but heavily armed forces in Abkhazia and Tskhinvali to threaten Tbilisi, which is some 50-60 kilometers away from the occupied zones. This fits the new order Russia has been seeking in the South Caucasus following the Second Nagorno-Karabakh war of 2020. The 3+3 initiative which aims to gather together the three small South Caucasus states and Russia, Turkey, and Iran, is viewed with suspicion by most Georgians. But if Russia wins in Ukraine, Georgia may find it hard to resist the pressure. This partially explains why the Georgian government has been so careful about its position on Russia’s invasion. The mood is febrile, as indicated by days of anti-government demonstrations following Prime Minister Irakli Garibashvili’s statement that his country would not impose sanctions on Russia. Later on, Georgian volunteers were reportedly prevented from flying to Ukraine (later denied by the Ukrainian ambassador himself), which caused President Volodymyr Zelenskyy to recall his envoy from Georgia. Internal pressures and wider geopolitical motives put Georgia in a precarious geopolitical position. It needs to simultaneously look attentively at how Ukraine-EU ties develop, not anger Russia, and also respond to wider proUkrainian sentiment. Many remember how Ukrainian President Victor Yushchenko enthusiastically supported Georgia in 2008 and even visited the capital when Russian troops were just 30 kilometers away.
By attempting a nuanced approach, Georgia may be running a risk. In an age of near-unified sentiment against Russia, neutrality could be harmful to a country that made its formal application for European Union (EU) membership on March 3. The war in Ukraine also indicates the status quo ante is no longer feasible. The EU is now emerging as a geopolitical player following its actions against Russia in the last week and the European Parliament has backed Ukrainian membership. Moldova too has applied. Much will depend on how far Russia’s invasion progresses in Ukraine. Cracks in Western resolve will only embolden the Kremlin and push it to act against other neighboring states seeking EU and NATO membership. This precarious geopolitical situation and Georgia is trying to walk a fine line. But here a longer term perspective should prevail: the sudden and nearunprecedented Western unity of 2022 is likely to remain. Russia is turning into what analysts refer to as a “fortress” and is preparing to launch a battle, non-military or otherwise, from the Baltic to the Caspian Sea. Despite its dismal military performance in Ukraine, Russia has significant military and intelligence capabilities; the West has enormous economic, diplomatic and soft power. In the end, the democratic world will prevail against a Kremlin that has painted itself into a corner. How we get from here to there is a question that may present some difficult answers. Emil Avdaliani is a professor at European University and the Director of Middle East Studies at Georgian think-tank, Geocase.
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GEORGIA TODAY
MARCH 11 - 17, 2022
THE ISET ECONOMIST A BLOG ABOUT ECONOMICS AND THE SOUTH CAUCAUS
www.iset-pi.ge/blog
The ISET Policy Institute (ISET-PI, www.iset-pi.ge) is an independent think-tank associated with the International School of Economics at TSU (ISET). Our blog carries economic analysis of current events and policies in Georgia and the South Caucasus region ranging from agriculture, to economic growth, energy, labor markets and the nexus of economics, culture and religion. Thought-provoking and fun to read, our blog posts are written by international faculty teaching at ISET and recent graduates representing the new generation of Georgian, Azerbaijani and Armenian economists.
Dollarization of Bank Deposits in Georgia: What Everyone Should Know nesses who rely heavily on imported goods for consumption/production, keeping savings/assets in USD provides a hedge against import price increases. 5. Finally, the high volatility of the exchange rate may in itself contribute to a high level of dollarization in the economy, as people become increasingly uncertain about the value of the domestic currency.
WHAT ARE THE DRAWBACKS OF DOLLARIZATION?
BY ARCHIL CHAPICHADZE, YAROSLAVA BABYCH
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he term “dollarization,” commonly used among academic economists and finance specialists, has already entered Georgians’ everyday vocabulary. Few people, however, understand what dollarization is, how it comes about, and why they should care. Below, we try to fill this gap, explaining some basic concepts and discussing why and how dollarization affects ordinary people’s lives.
WHAT IS DOLLARIZATION, EXACTLY? The term dollarization officially refers to the legal substitution of domestic currency by a foreign currency (De Nicolo et al., 2003). Examples include Zimbabwe, a country that struggled with rampant inflation before legalizing the use of the US dollar alongside the domestic currency in 2009, and then, six years later, completely suspending the use of domestic currency. Unofficially, however, the term dollarization is used to denote the usage of foreign currency that is not legal tender alongside the domestic currency (Yeyati, 2006). This typically means that while the use of foreign currency is prohibited in official transactions, foreign currency is still used very commonly, for example, to index certain types of transactions (like selling or renting real estate in Georgia), or to store value (e.g., saving money in USD or Euros instead of Georgian Lari).
HOW CAN WE MEASURE THE EXTENT OF DOLLARIZATION, AND HOW DOLLARIZED IS THE GEORGIAN ECONOMY? There is not one single way to measure the extent of dollarization. For example, we can never know exactly the share of renters in Tbilisi that pay their rent in USD or USD equivalent (although one can guess that the percentage is quite high). But there are some proxy measures, i.e., easily observable indicators, which can tell us about the general trend
in dollarization. One such measure is the share of bank deposits denominated in foreign currency. This indicator directly shows which currency people prefer for their savings, and, indirectly, to what extent people are tied to the use of foreign currency in various financial transactions. In Georgia, the process of bank deposits being dollarized has been slowing down recently. However, dollarization levels have been well above 50% for the last 20 years (Graph 1). This is not just a problem for Georgia. Dollarization of bank deposits (also known as asset dollarization) tends to be a particularly stubborn problem affecting many emerging economies. In this group, Georgia stands among the highlydollarized cohort.
WHY IS DOLLARIZATION SO PERSISTENT IN EMERGING ECONOMIES? As one can see from the graph, in 20022004, deposit dollarization hovered around 85%; at the end of 2020, the deposit dollarization ratio was 62.75%— much lower but still quite high. Financial dollarization is so stubbornly persistent precisely because it is not a black and white phenomenon. Like many things in life, it has both positive and negative sides. First, let’s discuss the possible benefits offered by dollarization. 1. Some argue that the biggest advantage of financial dollarization is the hedging of exchange rate risk for commercial transactions. Imagine a Georgian firm that has foreign partners who have to be paid in dollars. Would it not be more natural to keep dollar deposits to make the transaction process easier? That would also eliminate exchange rate risk (imagine having to pay more in terms of GEL because of an unexpected jump in the exchange rate. That would not be an issue if the transactions were made using dollar deposits). It should be emphasized, however, that if the payments need to be made in Euros or other non-USD currency, dollarization won’t provide the benefits mentioned above. This counterargument is valid for Georgia too, which has trade relations mostly with Turkey and the Eurozone. 2. Financing transactions that are de-
facto dollarized (e.g., real estate purchases). Because in emerging economies, including Georgia, many construction companies rely on foreign investors for financing, and payments of dividends may be tied to the dollar, it is more convenient to express prices in dollar terms. Moreover, since some materials have to be imported, just as in the previous case, it is easier to keep dollar deposits to make dollar payments. 3. Another reason is obvious to anyone who remembers life in the region in the 1990s: clearly, asset dollarization guarded against high inflation and protected savings from the erosion of value. The roots of the dollarization problem in Georgia in particular can be traced to the unstable political and economic environment after the fall of the Soviet Union. The accelerating inflation and volatile political setting during the transition to a market economy eroded confidence in the national currency. Underdeveloped financial markets and dependency on money transfers from abroad nourished dollarization in the Georgian economy. 4. People/businesses may also keep their liquid assets in foreign currencies due to other considerations: a) The procyclical nature of exchange rate risk in emerging market economies: during periods of recession or low growth, emerging economies typically observe devaluation of their currency against the US dollar (Cordella & Gupta, 2014). If a Georgian business has a loan denominated in USD, then during a recession they will face a double burden: devaluation increases the GEL value of their debt, even as their GEL revenues decline. Hence, a business may choose to keep part of their deposits in USD to protect themselves during a recession. During times of strong economic growth, the opposite may happen: dollar deposits may lose their value due to appreciation of the GEL. This effect, however, is dampened as the negative impact is less noticeable because of the growing economy. b) Devaluation could translate into price increases for imported goods. We do see evidence of the correlation between import price inflation rates and GEL/ USD exchange rate changes in Georgia (graph 2). Hence, for people and busi-
The high level of dollarization is a serious challenge for the country. There are a number of reasons why dollarization may hurt the economy, but those immediately obvious to a non-expert are the following: if the economy is highly dollarized, the risks in the banking system rise; the real economy becomes more unstable and exchange rates become more volatile. Imagine having liabilities in USD and income in GEL. Hence, if you expect the GEL to depreciate, you are likely to start buying dollars. When a lot of people behave this way, the demand for GEL decreases and it loses value, depreciates against the dollar, as anticipated. The most interesting part of this mechanism is that the expectations might have arisen without any logical explanation, bringing real changes to the economy and increasing its volatility. The increased volatility of the exchange rate then feeds into the process of dollarization, creating a vicious cycle that prevents dollarization levels from falling and giving rise to a so-called “dollarization hysteresis” (a phenomenon that is responsible for persistence of dollarization even as the exchange rates stabilize). That could affect the debt burden and the profitability of such firms. The expectations mechanism is further augmented by the common nature of currency mismatch in Georgia, meaning that many citizens’ assets and liabilities are expressed in different currencies. It has already been mentioned that a significant part of Georgian citizens’ debt is denominated in USD, because of the lower interest rate offerings by domestic banks on loans in USD. Consequently, the balance sheet of such debtors is prone to exchange rate risk, because their source of income is in a currency different from USD. These debtors might be particularly responsive to expected changes in the exchange rate, buying dollars when they expect the GEL to depreciate or buying GEL when they expect the GEL to appreciate. These transactions will
bring forward changes in the exchange rate, which might be based solely on these expectations and the actions from debtors in response to expected changes in the exchange rate.
WHAT CAN BE DONE TO REDUCE DOLLARIZATION? As we saw, while asset dollarization can make sense to individual market actors, it poses significant risks for a country and financial system as a whole. Reducing dollarization has been high on the Georgian government’s agenda. In 2016, the National Bank of Georgia (NBG), together with the Georgian government, adopted a 10-point Larization plan. As part of the Larization policy, loans of less than 100,000 GEL could only be issued in local currency. Since 2019, the threshold has moved to 200,000 GEL. It has also become compulsory to denote real estate prices in GEL. Moreover, the government offers subsidies to induce citizens to de-dollarize their loans. However, despite the Larization policies currently in place, the dollarization level of deposits still remains high in Georgia (the 2020 average rate was 66.36% (NBG)). Clearly, people who keep their deposits in USD are not irrational. For the reasons already discussed above, if the overall dollarization level in the economy is high, it can make more sense for individuals to keep their assets in dollars as well. Given that bringing down the average dollarization level in the economy is not an easy task (it takes time), we can expect that the asset dollarization problem in Georgia will persist for some time.
IS IT POSSIBLE THAT DOLLARIZATION WILL DECREASE IN GEORGIA IN THE LONG RUN? In the long run, we can look forward to lower dollarization levels if certain conditions are met. To name a few: a) When businesses have access to and are able to use various financial instruments to hedge against foreign exchange risk (rather than just storing their deposits in USD which, as we saw, is an imperfect hedging instrument in the Georgian context) b) When all sectors of the economy become gradually and fully de-dollarized (e.g., the real estate sector). c) To the extent that the Larization policy works well, the exchange rate should become less volatile in the long run and will in turn reduce the need for dollarization.
BUSINESS
GEORGIA TODAY MARCH 11 - 17, 2022
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EU, FAO Support Georgian Winemakers with International Expertise as Exports Hit 107 mln Bottles BY KATIE RUTH DAVIES, ANA DUMBADZE
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wenty grapevine producers participated in training held at several locations in Kakheti, a traditional winemaking region of Georgia, in January. International expert Julio Prieto, specialized in phytosanitary problems of grapevines, from the Ministry of Agriculture of Spain, conducted the trainings with the support of the European Union and FAO in the framework of the EU4Business program. EU Innovative Action for Private Sector Competitiveness in Georgia is a joint initiative of the European Union and four UN Agencies, which was launched in 2019 with a budget of EUR 5 million. The project aims to enhance entrepreneurship and business sophistication by strengthening the capacities of government and local entities to develop and operate clusters, and supporting companies directly with strategic investments and better connections with diaspora group, while also demonstrating the effectiveness of these strategies to businesses. During the trainings, Mr. Prieto covered the entire vineyard cultivation process and the complete cycle of grapevine production, from growing saplings to harvesting grapes. The learning sessions included such topics as general management of various types of vineyards, planning of pruning, fertilization, as well as irrigation, organic grapevine production and Integrated Pest Management. The issue of pest management was the most interesting for all winegrowers present, as the pest “Lobesia botrana,” also known as the “European grape worm,” is a common problem. The expert specifically focused on biological pest control through means of mating disruption pheromones. This method has already been tested in the region, with poor results due to the lack of technical guidance. “It was very interesting to hear about the Spanish and international experience in addressing the challenges of vine worms. These training sessions were very informative, even the most experienced winegrowers learned a lot, and for the newcomers, it provided crucial
The EU and FAO stay committed to supporting agricultural wine producers in Georgia to make the agriculture sector more competitive, profitable and more resilient to new challenges JANUARY SALES LOOK PROMISING FOR THE YEAR AHEAD knowledge to avoid many problems,” Giorgi Rukhadze, owner of George Grey Winery, who participated in the training, stated. “We acknowledge the great importance of grapevines for Georgia, both economically and traditionally,” said Javier Sanz Alvarez, EU-FAO Program Coordinator. “The EU and FAO stay committed to supporting agricultural wine producers in Georgia to make the agriculture sector more competitive, profitable and more resilient to new challenges.”
GEORGIA EXPORTS 107 MLN BOTTLES OF WINE IN 2021 Revenue from wine exported from Georgia last year was equal to $250 million. According to the National Wine Agency, wine exports in 2021 were 359% higher than in 2012. In 2012, only 23 million bottles of wine were exported from Georgia, and the income received from exports amounted to $71 million, while in 2021, the income
Tbilisi Mayor: Public Transport, Museums, Theaters, Swimming Pools to be Free for Ukrainians BY ANA DUMBADZE
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bilisi municipality has decided that things such as public transport, children’s entertainment centers, museums, theaters, swimming pools, etc., – will be free of charge for Ukrainian citizens in Georgia, Tbilisi Mayor Kakha Kaladze said at a meeting of the capital’s government. He stated that a hotline has been launched to help Ukrainian citizens in the country. “We have made a decision that certain things controlled by the municipality
will be free for them. These are: public transport, children’s entertainment centers, museums, theaters and swimming pools. All the infrastructure that is under the jurisdiction of the municipality will be free for them, the only thing needed is to present a Ukrainian passport. “We launched a special hotline. These citizens, if they have any need or require additional assistance, can contact us on the hotline: 0322 272 22 22. They can contact us and we will do our best to help and do everything,” said Kakha Kaladze. The Mayor added that an account for donations, which was created in support of Ukraine last week, has already collected more than a million GEL.
received from 107 million bottles of wine exported from Georgia was equal to $250 million. In 2021, both the amount of exported wine and export earnings increased by 16% compared to 2020. In addition to wine, in 2021, 42.2 million bottles of brandy were exported from Georgia to many countries around the world, which is 30% more than in 2020 and 554% more than in 2012 (when only 6 million bottles were exported). According to the agency, the brandy export earnings reached $78.3 million (up 19%). In 2012, brandy exports earned $20 million. In 2021, 1 million bottles (0.5 l) of chacha were exported; the increase in exports compared to 2020 was 145%, while the increase compared to 2012 was 622% (in 2012, 145 thousand bottles of chacha were exported). Revenue from chacha exports in 2021 reached $2.6 million. The growth was 126% compared to the same period last year. In 2012, the income from the
export of chacha was $584,000 US dollars. Export growth dynamics are maintained in strategic markets: Poland 34% (7, 003, 031), China 29% (5, 934, 937), US 19% (1, 084, 278), Germany 28% (892, 348), Latvia 19% (1, 900, 519) , Lithuania 45% (986, 740), Japan 12% (197, 638) and the UK 71% (736, 391). The largest volume of wine – 62, 115,759 bottles – was exported to Russia. It is noteworthy that for the first time in the history of independent Georgia, Georgian wine exports to the United States exceeded 1 million bottles. “441 companies exported different volumes of wine from Georgia, while in 2012, only 120 companies had the opportunity to export wine,” the agency said in a statement. They also noted that exports of wine, brandy and chacha earned up to $400 million, which is 18% more than in the same period in 2020 and 142% more than in 2012, which amounted to $163 million.
Georgia exported 5.3 million bottles of wine to 35 countries in January 2022, 51% more compared to the same period last year, the Ministry of Agriculture and Environmental Protection announced. Based on the same source, the exports generated $11.6 million from the sale of wine abroad in January, marking an increase of 43%. “Dynamics of export growth are maintained in strategic markets, where in order to promote and increase awareness of Georgian wine, the National Wine Agency implements marketing measures: Poland 103%, China 514%, Lithuania 114%, USA 245%, Latvia 22%, Estonia 102%, Japan 482%, and the United Kingdom 35%. “Growth is also noticeable in the following countries: Ukraine 93%, Kazakhstan 106%, the Netherlands 74%, Sweden 234%, Russia 34%, Mongolia 23%, etc. “12,123 companies exported different amounts of wine from Georgia,” reported the state agency.
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Successful 2021 - terabank Summarizes Small and Medium Business duction and the tourism industry. Up to 10% of the total number of loans issued by the Agency comes from terabank which is a very good result. As I have already mentioned, we worked intensively on agro loans, thus being actively involved in the development of agriculture. The total loan portfolio issued to the agricultural sector is 78 million GEL.
WHAT MADE 2021 STAND OUT IN TERMS OF PRODUCTS AND SERVICES OFFERED TO BUSINESS CUSTOMERS? Last year, we offered our business customers important news in this regard as well. For example, I can name the support for the digitization of small and medium business activities which we focused on. It is this support that has made it possible for them to offer an electronic payment system as a separate product. In addition, we have launched a universal cash in & out ATM for business clients which allows you to deposit and withdraw large amounts of money at any time.
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mall and medium business is a strategic segment of terabank and its promotion is one of the most important priorities. That is why the bank is constantly offering new products and various supporting initiatives to small and medium businesses. A few days ago, the bank released the successful performance figures for its SME portfolio for 2021 as well as its supporting projects and results. Konstantine Makatsaria, Head of terabank's Micro, Small and Medium Business Manage-
ment Department, talks about them in detail now.
AS MENTIONED IN THE PUBLISHED RESULTS, TERABANK HAS SHOWN A POSITIVE GROWTH IN THE FIELD OF SMALL AND MEDIUM BUSINESSES. WHAT CAN YOU TELL US ABOUT THE SPECIFIC INDICATORS? First of all, I should mention that last year showed tangible results for us in terms of small and medium-sized busi-
nesses. The financing rate for the segment increased: the loan and deposit portfolio - by 17% and the number of borrowers - by 26%. Speaking about the results, it is especially noteworthy that terabank's loan portfolio expanded in terms of public funding programs last year. I mean, the Produce in Georgia program of the Rural Development Agency. For example, within the framework of the Agency's Produce in Georgia initiatives, we financed 50 businesses in various fields, including representatives of local pro-
BANK SUPPORT FOR BUSINESSES IS OF PARTICULAR IMPORTANCE, ESPECIALLY DURING A PANDEMIC. SUCH SUPPORTING INITIATIVES HAVE BEEN A MAJOR PART OF TERABANK'S CORPORATE SOCIAL RESPONSIBILITY IN RECENT YEARS. HOW WOULD YOU ASSESS 2021 IN THIS REGARD? Last year, we made one of the main focuses on sharing information and knowledge. To this end, we held information meetings and introduced our products and services to business cus-
tomers who operate in different regions of the country. It should be noted that a significant part of these meetings was dedicated to the detailed presentation of the initiatives of the Rural Development Agency’s Produce in Georgia program, financing opportunities and preferential business loans. At the same time, we highlighted the importance of sharing knowledge with business customers. We conducted webinars on various topics, including the perspective of agro-tourism in Georgia and tourism during the pandemic, business digitization, branding, information security, etc. The year 2021 turned out to be especially important as terabank's business support direction gained special recognition. The terabank for Business Support project, in which we concentrate a significant effort, won the Meliora Award in the responsible business competition of Georgia. We won one of the top categories - Support for Small Business and Affected Sectors During the COVID-19 Pandemic. A very important project which we implemented in 2020 was to provide a gift package of services tailored to the needs of 50 of terabank’s business customers. This brought real and tangible results to small and medium-sized businesses.
WHAT WILL BE THE MAIN POINTS YOU WILL FOCUS ON IN THE PROCESS OF SUPPORTING SMALL AND MEDIUM-SIZED BUSINESSES THIS YEAR? Support for small and medium-sized businesses will again be one of the priorities for terabank for 2022. The main emphasis will continue to be on the development of digital products and services, knowledge sharing and the promotion of business development.
UNDP Support Women Entrepreneurs and Business Leaders to delegate it to someone else. UNDP welcomes our growing cooperation with the private sector that empowers women to determine their careers and their place in society,” Spoljaric Egger said. Nick Beresford, UNDP Resident Representative in Georgia, and Zurab Masurashvili, Bank of Georgia’s Deputy CEO, attended the event in Tbilisi. “The Bank of Georgia moves forward to support women in business. The
The Women Entrepreneurs’ Program will draw on the resources made available by the Bank of Georgia, UNDP and the Government of Sweden. Photo by Leli Blagonravova/UNDP
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he United Nations Development Program (UNDP) and the Bank of Georgia mid-February signed a Memorandum of Understanding to support the up-and-coming generation of women business leaders. This unprecedented partnership is expected to create game-changing opportunities for over 200 women-led startups and growing companies across the country. The Women Entrepreneurs’ School to be established under this collaboration offers proven business development models to help women identify their best prospects and build effective strategies to achieve their business goals. This unique approach, known as 360-Degree Business Development Support, creates a blueprint for new entrepreneurs, assist-
ing them in four main areas: gaining theoretical knowledge, learning practical tools, accessing financial resources, and building a strong cooperation network. The Women Entrepreneurs’ School draws on the resources made available by the Bank of Georgia, the Government of Sweden and UNDP’s Rapid Financial Facility under the UN Joint Programme for Gender Equality. Mirjana Spoljaric Egger, UNDP Assistant Administrator and Director of the Regional Bureau for Europe and Central Asia, joined the event online from the UNDP headquarters in New York to inaugurate the agreement. “Closing the gender gap has become a business imperative. While the problem is complex and the solutions are many, the most critical step is to help women realise that their future is too important
Closing the gender gap has become a business imperative. The problem is complex, the solutions many, but the most critical step is to help women realise their future is too important to delegate to someone else
‘Women Entrepreneurs’ School’ draws on our partnership with UNDP and on the assessment of women’s needs in entering business activities,” Masurashvili said. “Our joint work in this project will focus on four main directions that include education, support and coaching, practical experience and networking. We are convinced that this initiative will play an important role in empowering and supporting Georgian women entrepreneurs.” “At UNDP, we believe that the empowerment of women makes the economy more sustainable, people wealthier and gender equality stronger. The Women Entrepreneurs’ School is expected to have a rising tide effect, inspire the establishment of successful business ventures and pave the path to greater social and economic prosperity,” Beresford said. Even though women-led enterprises
are one of the fast-growing segments in Georgia, the business sector is still dominated by men. Only 29% of enterprises registered in 2019 were led by women, while the number of women-led businesses decreased slightly between 2017 and 2019. The National Statistics Office reports that 59.5% of Georgian women are outside the labor force. According to the World Bank, such a gender gap in the labor market costs Georgia around 11% of its Gross Domestic Product per capita. [Source: Women in Business, 2021. Economic Policy Research Center] Through their Women Entrepreneurs’ School, UNDP and the Bank of Georgia are on a mission to address these complex issues, support women entrepreneurs in the early stages of their business ventures and partner with them in their life-changing work.
UNDP Head in Georgia Nick Beresford and Bank of Georgia’s Deputy CEO Zurab Masurashvili signed an agreement in Tbilisi. Photo by Leli Blagonravova/UNDP
SOCIETY
GEORGIA TODAY MARCH 11 - 17, 2022
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CinéDOC-School Sharing Documentary Films with Georgia’s Children and Teens As we organize training sessions for the selected teachers, we also invite guest speakers from other European countries. For example, guest speakers that represent the project One World in Schools, a documentary film screenings project in the Czech Republic that reaches out to teachers and pupils from more than 3,900 primary and secondary schools there.
WHO CHOOSES THE FILMS AND WHICH FILMS ARE SHOWN?
INTERVIEW BY KATIE RUTH DAVIES
C
inéDOC-School is bringing outstanding documentary films for children and teenagers to different schools across Georgia. GEORGIA TODAY went to meet Ileana Stanculescu, project co-ordinator, to find out more. “We started to work on a pilot project in 2020, when, because of the pandemic, cultural events simply did not take place or moved to the virtual space,” Stanculescu tells us. “The pilot project consisted of organizing online film screenings and discussions for pupils as part of our year-long CinéDOC-Young screenings. Children could not go out to cinemas anymore, because cinemas were closed or it was risky to have so many children in one space, so we had to reach children in a different way. The idea came in a rather natural way, and the pandemic pushed it to be realized.” It was an idea they took to one of their top regional coordinators, Sopo Gogokhia, a teacher who is used to organizing mini festivals and film screenings in the town of Chkhorotsku. Together with her and with the Coalition Education for All, the CineDOC team developed a pilot project, first aimed at reaching pupils from Chkhorotsku and Tbilisi, then reaching out to more and more schools from the regions. “It went so well that we began considering including more schools and involving more teachers,” Stanculescu notes. “But we had to find a way of doing it so that teachers organized the screenings themselves, otherwise the project had no chance of growing. In 2021, they published a Call for Teachers, those interested in screening and discussing documentary films in class. They received applications from 67 schools from all across Georgia and immediately understood the potential
of the project. Many of the teachers who applied are civic education teachers, others teach history or literature; even a teacher of mathematics applied. “We re-built our website, so that teachers can have access to films via a password-protected online video library. Our online platform for schools includes virtual cinemas, which can be accessed by children during online screenings. Once the pandemic is over and pupils are back in class, teachers have the possibility to simply stream the films directly from our website,” she says.
WHAT IS THE CINEDOC SCHOOL MISSION, AND WHO IS SUPPORTING IT? The mission of the project is to bring good, engaging, creative documentary films to young audiences, while involving them in discussions on different topics of social interest. But the selected films are not only reports about certain topics: they are cinematic films that have strong stories, films with protagonists that go through some hardship, or manage to achieve their goals. Children can identify with the protagonists of the documentaries. While developing critical thinking, they will be also exposed to the lives and stories of children from all across the world: from Venezuela to Japan. Such documentaries have the potential to increase empathy, and to promote positive social interaction. Last but not least, watching beautifully shot and edited films, as well as animated documentaries, positively impacts the social-emotional growth of pupils and understanding of the world around them. We are very lucky that this project is supported by the Swiss Agency for Development and Cooperation, for which quality education and civic education are core priorities. From this spring, we will also again have the Creative Europe Program of the European Union as codonor.
Within our team, we choose and discuss the selection of films from our large archive of documentaries that have been screened at our festival to date. But we have also started to add new titles. Our festival has had a competition for children called CinéDOC-Young, since its first edition in 2013, meaning we can look back to some experience in programming films for young audiences. In addition, we invited the selected teachers to join online film screenings and Q&A sessions with filmmakers during our 2021 edition. Many of the teachers were impressed by films selected for the Focus Caucasus competition. We asked them to make a list of films they would like to screen in class. After that, taking into account their preferences, we included their preferred films in our selection too. What is very important for us is that all the selected films have an extraordinary visual style; that they are little pieces of cinematic art. Some films are animated documentaries, suitable for younger children. We are really glad to have been able to purchase screening rights to a series of short documentaries called “Kids on the Silk Road”. “Kids on the Silk Road” is 15 stories about children between the ages of 11 and 14, from 15 countries along the old silk route. Each story shows how the individual child deals with life’s challenges, big and small, which they face in their specific cultural and social contexts.
WHAT’S THE DURATION OF THE PROJECT? We will implement this project at least until 2025, and we hope that we will be able to implement it later on too, especially if teachers are able to screen films independently from us. Once the video library is established, with some films purchased for a longer period of time, the teachers can easily continue to screen films without our direct assistance.
CAN YOU GIVE US ONE OR TWO EXAMPLES OF SUCCESS STORIES WITHIN THIS PROJECT, OR HIGHLIGHTS, OR MOMENTS WHICH TOUCHED YOU? There were innumerable moments during which we were really happy with the results, especially when the discussions
with pupils lasted more than one hour, when you see that many of the teenagers and children were so glad to discuss, to share their opinions, to ask questions about the films. Sometimes children have analyzed films in better and deeper ways than any grown-ups could do. When the film directors were present at the online discussions, they had so many questions and so many thoughts to share with them. We also conducted a survey after a certain number of screenings, in order to receive some written feedback from participating pupils regarding the films, the discussions, and overall format of the project. All of the surveyed pupils expressed their wish that this project continues; some of them have written us that they wanted to be able to watch such films more often; others wrote us that they would like to also learn filmmaking and to work on short documentaries themselves.
WHAT ROLE DO THE SCHOOL TEACHERS PLAY IN THE PRE/ POST FILM SCREENING? WHAT HAS THE FEEDBACK BEEN LIKE AND HOW CAN SCHOOLS GET INVOLVED? The role of teachers is essential, especially during the pre- and post-screening discussions. The teachers moderate the discussions with the pupils, they put the right accents, and they bring certain topics to their civic education, arts, literature or history classes that films can highlight in a wonderful way. But teachers are not only important during the discussions: they also advise us on which films to select, which films are suitable for which age groups and which films we could add to our video library. For example, teachers were impressed by an animated documentary from our archive. The film deals with the destiny of Lithuanians who were deported to Siberia during Soviet times. The film is told from the point of view of a granddaughter who discovers old letters and
photos taken by her grandparents in Siberia. While the story is really sad, the film is made in a light way, and it is almost like a cinematic fairytale. If schools want to get involved, they can contact us anytime, by sending us an e-mail to: cinedocschool@gmail.com. Our colleague, Keti Tsirikidze, will be happy to answer all questions and to inform potentially interested teachers about this year’s new call for applications.
WHAT ARE THE PLANS AND GOALS FOR THE FUTURE? We have many plans and ideas for the future. One of them is to establish cinema clubs at the participating schools. Some of the schools have already started with this activity. Cinema clubs could be like small, independent initiatives run by pupils and teachers. They could also apply for co-funding from local authorities and organize “Film Summer Camps”, for example. We will support them with films and, if possible, also with documentary directing training sessions for children. Another fun activity will be dubbing: we will invite pupils from different schools to a casting and select them to dub the newly added titles in Georgian, Armenian or Azeri, depending on the region of the participating schools. Dubbing films is always very enjoyable and fun, and is also a film literacy activity that increases the motivation of children to watch documentaries. Last but not least, we plan to cooperate with organizations from Europe that are active in this field, such as the Finnish Valve Film School for children. The plan is to organize common screenings and common discussions during which children from Georgia and children from Finland will discuss films together, in online sessions. And, once the pandemic is over, we also hope to be able to visit, together with selected pupils and teachers from Georgia, the Oulu International Children’s and Youth Film Festival in Finland.
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SOCIETY
GEORGIA TODAY
MARCH 11 - 17, 2022
Life Imitating Art. March 3-5, 2022 BLOG BY TONY HANMER
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began digging into YouTube and other video sources of the earlier life of Volodymyr Zelenskyy recently, beginning with his actual inauguration speech upon becoming president of Ukraine in 2019, aged 42. This clip has helpfully been provided with English subtitles, for the benefit of all. I highly recommend it, if you haven’t seen it already: a simple online search will turn it up. He rejected the idea of portraits of himself as president in offices and other prominent places, asking instead suggesting that people put up pictures of their children, and look them in the eye whenever they had an important decision to make, to be sure they were not betraying the trust of their progeny. This week the president has become the most recognized person on the planet in comparison with two weeks ago. Just as well he’s both so photogenic and so skilled at working the media; I say this with no cynicism, as this gift and training are serving him well. He comes by them honestly.
It turns out that Zelenskyy’s most famous role as a TV comedian was… as president of Ukraine, on the Russianlanguage, Kiev-based series “Sluga Naroda” (Servant of the People), which ran for three seasons from 2015. Out of burning curiosity, I found the whole series of 20-minute episodes online, and downloaded them all (they are also available on YouTube, currently with over 15 million views). My wife and I are now watching them with very mixed emotions. It is very strange to see this man with such double vision, viewing the light,
well-produced, funny past from one eye and with the other subjecting ourselves to the current news from which we can hardly look away. He is part of both worlds, in the second one deadly serious, frequently bringing his interpreters to tears. His country, the geographic heart of Europe (if you extend that continent out to the Ural Mountains at its eastern end), is being torn apart by invasive Russian aggression, to the growing outrage of the rest of the world. Excepting those five negative votes in the UN; as for the abstaining votes, if you aren’t for us, you’re against us, in the end.
We’re only six episodes in but thoroughly enjoying it, although it becomes hard to watch when we glance between those bright, clean views of Kyiv and the bombarded, bloody, burning images of the country filling our screens from every channel at the moment. Fictional President Vasiliy is determined to reform his country, drag it out of its corruption, nepotism and poverty into something of which all its citizens can be proud and the rest of the world observe with envy. In any case, the former national champion of Ukraine’s Dancing with the Stars (another success story of his) must be kept separate from his current position as head of state… somehow. Zelenskyy reported today (March 3) that the Russians have included a crematorium in the set of equipment they have brought in. This, apparently, is to burn the bodies of its lost soldiers, and succeed in hiding the true numbers. Now we consider Europe’s largest nuclear power plant, and about 13 others in Ukraine, falling into the wrong hands… Potential to dwarf the catastrophe that was Chernobyl in the 1980s. (Incidentally, that name, Chernobyl, does NOT translate into the Revelation-prophesied
Wormwood which is described as a star falling to earth and poisoning much of it… Cherno Byl means “black was” in Russian.) Alas, all we can do when we see Ukraine at the moment is shudder, say “There but for the grace of God go I,” and consider how to get involved. Pray, give, go, if you’d like a rising ladder of time and other commitments, up to your life itself. The thing we’d better not be caught doing is NOTHING. And we cannot let war fatigue distract us away from this drama, which mirrors darkly the former comedy. There IS no next thing. Russia may have badly underestimated its own necessary commitments of time and blood, but this war will likely take a long time, and already affects us all, the whole world, the whole planet. 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
Russia’s Invasion of Ukraine: Latest Updates on Key Battleground Developments BY ANA DUMBADZE
I
t’s now been 15 days since Russian forces entered the territory of Ukraine, launching what the Russian Federation calls a “military operation”. Since then, the war has become one of the most tragic events and the biggest humanitarian crises of the 21st century. Below are updates on key battleground developments from the second week of this devastating war:
MARCH 4, FRIDAY: RUSSIA SEIZES UKRAINE NUCLEAR PLANT AFTER FIRE The war in Ukraine entered a new phase on Friday when Russian troops seized Europe’s largest nuclear power plant, Zaporizhzhia, after a fire in a nearby training building was extinguished. “Operational personnel are monitoring the condition of power units,” a local authority said on social media, quoted by Reuters news agency. Station personnel continue to work and monitor the state of the power units, it said. In a Facebook post, the General Staff of the Armed Forces adds that Russian troops have managed to surround the port city of Mariupol. Residents of Mariupol have been describing a relentless barrage of shelling as Russian forces try to capture the city. Both sides agreed Russian forces control the Zaporizhzhia nuclear power plant in Enerhodar, Ukraine, but both blamed the other for the fire. No increases in radiation levels were detected and plant personnel were monitoring its operations, Ukrainian officials said. Russia’s defense ministry said the plant was operating normally.
WHAT HAPPENED ON THE NIGHT OF MARCH 4: BRIEFLY In a video address, Ukrainian President Volodymyr Zelensky accused Russia of using “nuclear terror.” Zelensky called on Europe to “wake up.” He said Russia wanted to repeat the 1986 Chernobyl disaster. Russia is still trying to move forward and intensify hostilities in southern Ukraine. After occupying the city of Kherson, its forces are approaching the port city of Mariupol.
Vladimir Putin said the “special military operation” in Ukraine was “going according to plan.” In response, the United Kingdom Secretary of Defense Ben Wallace said that the Russian Federation “lags behind the plan.” Since the beginning of the war by Russia, more than a million people have left Ukraine. Russia and Ukraine agreed in talks on March 3 to set up “humanitarian corridors” to evacuate civilians.
MARCH 7 MONDAY: UKRAINIAN MEDIA: RUSSIAN ARMY STILL TRYING TO INVADE MYKOLAIV At 5AM local time, Russian troops launched a rocket attack on the city of Mykolaiv, located near the Black Sea in southern Ukraine, reports the Ukrainian media. Ukrainian edition RBC reported that the Russian army is still trying to invade the city. It is the 12th day since Russia invaded Ukraine and started a full-scale war. Russia has also bombed cities, killing hundreds of civilians. More than 1.5 million people have left Ukraine, mainly for EU countries. This is the biggest and fastest refugee crisis in Europe since World War II.
MARCH 7 EVENING: At least 13 civilians were reported killed in an airstrike on a bread factory in the Ukrainian town of Makariv, just outside Kyiv, according to the Ukrainian state emergency service. A statement on the Twitter account of Ukraine’s armed forces reads: “Russian occupiers carried out an airstrike on a bakery in Makariv, Kyiv region. “As a result, a shell hit the area around the bakery, [and] 13 people died with five people being rescued from the rubble. In parallel, a planned third round of peace talks between Ukrainian and Russian negotiators were underway.
MARCH 8: Children were among the victims from aerial attacks on the city of Sumy and its surrounding suburbs late on Monday. According to the BBC, Dmytro Zhyvytsky, leading the Sumy Regional Military Administration, said in a video posted on Facebook that Russian forces carried out aerial strikes after 11pm local time. “Unfortunately, children were among
Photo sources: BBC and Shutterstock
those killed,” Zhyvytsky said, explaining that more than 10 people were killed. “Kids are being killed,” Zhyvytsky wrote in a Facebook post, sharing a video of the reported attack. “We will never forgive this!” he added. The BBC said it could not independently verify the claims.
MARCH 9 Ukraine’s energy minister said Russian forces that now control a Ukrainian nuclear plant are forcing the exhausted staff to record an address that they plan to use for propaganda purposes. Russian troops have been in control of the Zaporizhzhia plant, the largest in Europe, since seizing it in an attack on Friday that set a building on fire and raised fears of a nuclear disaster. It was later determined that no radiation was released.
CHERNOBYL PLANT DISCONNECTED FROM POWER GRID At the same time, the situation around the Chernobyl nuclear power plant is concerning, which was also taken over by Russian forces and was disconnected from the power grid. Ukraine demanded a cease-fire for urgent repairs.
The U.N. nuclear watchdog said it had lost contact with monitoring systems that transmit key data from Chernobyl. Ukraine’s closed Chernobyl nuclear power plant has been disconnected from the nation’s power grid by Russian forces, Ukraine’s state-owned grid operator Ukrenergo said Wednesday, potentially jeopardizing the cooling of nuclear material stored at the site. Electricity is needed for cooling, ventilation and fire-extinguishing systems at the closed site. In a statement on its Facebook page, Ukrenergo also said that emergency diesel generators have been turned on but that the fuel would last for only 48 hours. Ukrainian Foreign Minister Dmytro Kuleba on Wednesday demanded a ceasefire with Russia to allow repairs. He warned that after reserve diesel generators run out of fuel, “cooling systems of the storage facility for spent nuclear fuel will stop, making radiation leaks imminent. Putin’s barbaric war puts the whole of Europe in danger.”
MARCH 9: RUSSIAN AIRSTRIKE HITS UKRAINIAN MATERNITY HOSPITAL A Russian airstrike hit a maternity hospital in the besieged city of Mariupol
and buried people including children under the rubble, Ukrainian authorities said, as President Putin's forces pressed their offensive across Ukraine. President Volodymyr Zelensky said people were trapped under the wreckage, and called the attack a war crime. A regional official told Ukrainian media that at least 17 people were injured, including staff and patients. Three people including a child were killed in the Russian strike. "We don't understand how it's possible in modern life to bomb a children's hospital. People cannot believe that it's true," Mariupol Deputy Mayor Serhiy Orlov told the BBC. The White House condemned the "barbaric" use of force against innocent civilians, and UK Prime Minister Boris Johnson tweeted that "there are few things more depraved than targeting the vulnerable and defenseless". Mariupol has been surrounded by Russian forces for several days, and repeated attempts at a ceasefire to allow civilians to leave have broken down. "The whole city remains without electricity, water, food, and people are dying because of dehydration," Olena Stokoz of Ukraine's Red Cross told the BBC, adding that her organization would continue trying to organize an evacuation corridor. Deputy Mayor Orlov said at least 1,170 civilians had been killed in the city since Russia began its bombardment.
RUSSIA IS "NOT ABANDONING ITS PLANS TO ENCIRCLE" UKRAINE'S CAPITAL KYIV The Ukrainian Armed Forces say the Russian occupiers are preparing to take over Kyiv, and the Russian military is rearranging for this purpose. “Reportedly, the enemy is regrouping in preparation for another attempt to take over Kyiv,” the Ukrainian military said in a statement. In addition, the agency explains that after an unsuccessful attack on Fastiv, a city in the Kyiv Oblast in central Ukraine, the enemy is trying to resume attacks there. In its bulletin at 24:00 local time (22:00 GMT) on Wednesday, the General Staff of the Armed Forces of Ukraine said its "defense forces are repelling and holding back" the Russian offensive "in all directions".
CULTURE
GEORGIA TODAY MARCH 11 - 17, 2022
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Georgia’s Art Palace – from Decay to Decadence and European Recognition helped us become known by an even greater audience. Last year, Art Palace joined the likes of the Musee du Louvre in Paris and State Hermitage Museum, on the Network of European Royal Residences.
HOW DID COVID-19 AFFECT THE ART PALACE, AND WHAT DID YOU DO TO KEEP IT GOING? Covid-19 hit cultural institutions very hard, but we never stopped interacting with our community through our social platforms. We were actively engaging with our audience through interactive and informative posts, videos, online tours of the Palace and also actively developing exhibitions on the Google Art & Culture website.
TELL US ABOUT THE BOOKS THE ART PALACE TEAM HAS PRODUCED AND WHY YOU MADE THEM.
EXCLUSIVE INTERVIEW BY KATIE RUTH DAVIES
T
he Art Palace of Georgia – Museum of Cultural History, located in Tbilisi, capital city of Georgia, represents Georgian cultural inheritance and priceless treasures. The museum’s history begins with the building in which it is housed- a magnificent palace once owned by German Prince Oldenburg, in which is kept a depositary of Georgian cultural assets. The Art Palace is located at 6 Kargareteli Street and its exhibition halls are open daily from 10:30-18:00. Until its April 2020 renaming, it was called the Georgian State Museum of Theater, Music, Cinema and Choreography. GEORGIA TODAY went to speak to its director, Giorgi Kalandia, on its transformation from palace to ruins, to the riches that it boasts today. Giorgi Kalandia graduated from Tbilisi State University, Faculty of History, in 1996. From 1997, he worked as a journalist and news producer at a variety of radio and TV shows, and created the program ‘Chveneburebi’ for Imedi TV in 2005. In 2006-2008, he took on the role of Deputy Director of the National Center for Manuscripts. Prior to becoming Director of the Art Palace in 2009, Kalandia worked on numerous books and documentaries supporting the popularization and documentation of Georgian art and culture. “Along with the General Director status, I am a Doctor of Historical Sciences,” Kalandia tells us. “Becoming Director of the Art Palace was a huge challenge for me and our team, because the state of the museum at that time was absolutely terrible. Being an active journalist before, and being very involved in cultural themes, working on documentaries about Georgian cultural heritage and so on, helped me to understand the essence and importance of the Palace itself, so, even though the infrastructural issues were an obstacle for us, we were determined to overcome them.”
WHAT CONDITION WAS THE ART PALACE IN WHEN YOU TOOK OVER IN 2009, AND WHAT WERE YOUR FIRST STEPS IN RESTORING IT?
postcards and greetings cards, a short related craft activity, then a walk around the museum to share with the children some of its best loved treasures.
The Art Palace was in a terrible state in 2009. The exhibition halls had been all but torn down, the depository spaces were damp and overflowing with disorganized artifacts and paperwork. In short, the whole building needed renovation as soon as possible. Restoration of the palace with its unique architecture and history, with the support of the Ministry of Culture and Tbilisi City Hall, began in 2009, and thanks to that, the museum survived complete destruction.
WHAT HAVE YOU DONE TO MAKE THE ART PALACE A SUCCESS? WHAT ARE THE KEY ACHIEVEMENTS? WHAT MAKES THE MUSEUM SO SPECIAL?
IS THE ART PALACE SELFSUSTAINING, OR DOES IT NEED FUNDING TO RUN (IF SO, FROM WHOM)? Art Palace is a governmental organization, supported by the Ministry of Culture, but, considering the fact that the museum has many visitors not only from Georgia but from all around the world, we have managed to establish a sustainable income. In safer times (pandemic willing), we also run short courses and guided tours for school groups- this involves a talk by one of our team-members on anything from the history of animation to the tradition of sending
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The museum is located in a building in Tbilisi that is especially noteworthy due to its architecture and styling- a perfect example of Gothic and Islamic architecture. The palace was German Prince Oldenburg’s present to Georgian noblewoman Agraphina Japaridze, his new wife. Agraphina left her husband and the western Georgian city of Kutaisi to move to Tbilisi in the 1880s. The palace was designed by renowned architect Paul Stern, author of other recognized buildings of the 19th century. The Art Palace of Georgia is a “palace type” museum and houses more than 3000 exhibits and unique collections concerning Georgian, European and even Asian culture. Popularization of our museum through different international platforms is really important for us. We were the first Georgian museum to be included on the Google Arts & Culture website with 13 online exhibitions. In 2018, we won a Europa Nostra award for the project “Textile from Georgia,” which
We currently offer 26 books made by Art Palace specialists on our official website (you can see full pdf versions here: https://artpalace.ge/en/art_palace/3). Some physical copies of our books are also available in our museum store. It is important to raise awareness and interest the public in different cultural topics through various methods, and one of them is by creating informative and visually rich catalogs and books that help younger generations and scientific circles understand such subjects better.
WHAT ARE YOUR FUTURE PLANS FOR THE ART PALACE? The Art Palace of Georgia – Museum of Cultural History was announced as a winner of the International Travel Awards in the “Best Museum in Georgia 2021” category. We hope to grow even further and take part in even bigger scale projects. I once said that Art Palace is like the Louvre Museum for Georgia, and even though this statement sounds very ambitious, we do have the right to aim for such a title, because, with hard work, we managed to get this far, and I hope our museum will become even more popular in future. *** The museum is housed in a building in Tbilisi designed by well-known architect Paul Stern, and is an example of gothic and Islamic architecture. In 1882, German Prince Constantine Oldenburg (1850-1906) met Agraphina Japaridze in Kutaisi. At the time she was
married to a Georgian nobleman from the House of Dadiani. Prince Oldenburg confessed his love for her. They left Kutaisi together and settled in Tbilisi. Prince Oldenburg commissioned the building of the palace for his beloved as a token of his great affection for her. In 1927, the Museum of Theater, founded by David Arsenishvili (1905-1963), a famous Georgian public figure (later appointed as the First Director of the Andrei Rublev Museum in Moscow), was moved to the building. The museum today has more than 300,000 objects that provide information on the development of Georgian theater, cinema, circus, folklore, opera, and ballet, as well as providing insight into the lives of figures in respective fields. Some museum exhibits date back to the classical era. Of particular note is an antique mask which was excavated by archeologists in the town of Vani. The Depository of Manuscripts and Archive Documents contains manuscripts of Ilia Chavchavadze, Akaki Tsereteli, Alexander Kazbegi, Aleksandre Akhmeteli, Kote Marjanishvili, Pyotr Tchaikokovsky, Feodor Chaliapin, and Nikolai Rimsky-Korsakov. Archives of the Georgian composers Dimitri Arakishvili, Zakaria Paliashvili, Vano Sarajishvili, playwright and founder of modern Georgian theater Giorgi Eristavi, and film director and screenwriter Mikheil Chiaureli, as well as plays and translations of William Shakespeare translated into Georgian by Ivane Machabeli, are kept at the museum. The Depository of Books contains rare editions from the 17th to 19th centuries. Gramophone records, posters, and theatre and film costumes are also preserved. The Depository of Photos and Negatives includes materials of such films as Jim Shvante, Mamluk, and Giorgi Saakadze. The Depository of Fine Arts has a collection of 16th- and 17th-century Persian miniatures, 18th-century French engravings, and examples of an old style of Tbilisi painting. The museum boasts the paintings of Léon Bakst, Alexander Benua, Fernand Liege, David Kakabadze, Lado Gudiashvili, Elene Akhvlediani, Peter Otskheli, and Irakli Parjiani. Also within the Art Palace fund is the Collection of Persian Fine Arts, Collection of Western European Fine Arts, Collection of Russian Fine Arts, Depository of Posters, Depository of Gramophone Records, Depository of Library and Rare Editions, Depository of Memorial Objects and Works of Art, and Depository of Sculptures.
GIORGI KALANDIA’S WORKS INCLUDE: Books: The Shrines of the Virgin Mary and Georgia (1999), Zugdidi Dadiani Palace (2001), Zugdidi Historical Museum (2002), The Treasure of the Dadiani Palaces (2003), The Bishops of Odisha (2004), Stolen Treasures (2006), Colorful Past (2007), and Historical-Architectural Museum of Dadiani Palaces (Guide). Documentaries: “I am the soul of Georgia”, “Colorful Dreams”, “Cry of Stones”, “Children of One Chorokhi”, “Gelino”, “Missed Lazeti”, “Georgian Light”, “Hereti”, “Misreti Horsemen”, “Lazeti Nightingale”, “The Plague of Your Heart”, “Heroes of the Balkans”, “Eastern Sun” and “Ahmed Melashvili”.
Journalists: Ana Dumbadze, Vazha Tavberidze, Tony Hanmer, Emil Avdaliani, Nugzar B. Ruhadze, Michael Godwin, Ketevan Skhirtladze, Mariam Mtivlishvili Photographer: Aleksei Serov
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