Issue no: 1331
• JANUARY 21 - 27, 2022 • PUBLISHED WEEKLY
FOCUS ON A NEW CURRENCY
New crypto currency Futira is designed to fight money laundering and increase global access to Internet
PAGE 9
PRICE: GEL 2.50
In this week’s issue... PM: 1 mln Vulnerable Georgians to Get Increased Power Tariff Subsidized by Gov’t NEWS PAGE 3
MEP Rasa Jukneviciene on the Prospects of Talks between the West and Russia for Georgia and Ukraine POLITICS PAGE 4
Resistance as a National Defense Strategy POLITICS PAGE 6
A Free Trade Agreement: Much More than a Law Order, Much More than Just Trade. Part II BUSINESS PAGE 7
Carrefour Marks its 10th Anniversary in Georgia
Corona Updates: Numbers Surge in Georgia as Omicron Takes Hold BY ANA DUMBADZE
36 Employees of Cultural Heritage Protection Agency Fired after Reorganization CULTURE PAGE 11
Georgia Exports 107 mln Bottles of Wine in 2021
F
ollowing the rapid spread of the new Omicron strain, the numbers of newly detected daily cases reached an alarming level in Georgia this week. Against this background, the educational process in schools across Georgia was resumed from Monday, January 17. According to the Ministry of Education and Science, all public and private schools in Georgia were fully prepared to renew the educational process in school buildings, however, the move concerns health officials and many parents worried about the potential rapid spread of the virus among schoolchildren. In terms of high transmission of the virus, the situation is particularly difficult in the capital Tbilisi, and in the Adjara and Imereti regions.
CULTURE PAGE 11 CULTURE PAGE 11 Prepared for Georgia Today Business by
Markets As of 17ͲJanͲ2022
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GEBGG 07/23
INDICES
On Tuesday, the country recorded 7521 coronavirus cases, 3160 recoveries, and 31 deaths.
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THE STATISTICS
Continued on page 2
BUSINESS PAGE 8
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NEWS
GEORGIA TODAY
JANUARY 21 - 27, 2022
Concerns Continue to Be Raised over Abolishment of State Inspector’s Service BY TEAM GT
L
onda Toloraia, current State Inspector for Georgia, a position that will cease to exist from March this year. The United Nations Country Team in Georgia this week followed other international and local players in expressing regret over the decision of Georgian authorities to abolish the State Inspector’s Service. On 13 January, the President of Georgia, Salome Zurabishvili, signed a new law abolishing the State Inspector’s Service and creating two separate institutions: the Special Investigative Service and the Personal Data Protection Service. “We are particularly concerned about the expedited manner and lack of inclusive and transparent discussions about the abolition of one of the most credible, independent and authoritative institutions in Georgia, one that is mandated to investigate alleged human rights violations committed by law enforcement officials and is entrusted with the oversight of personal data protection,” the UN Country Team in Georgia wrote. “The lack of convincing justification for abolishing the State Inspector’s Service and the absence of compelling rationale for stripping the State Inspector of her six-year mandate sends a chilling message to independent institutions of human rights protection. “We are concerned that the substantial broadening of the list of crimes falling within the mandate of a newly created Special Investigation Service entails a
serious risk of overburdening the agency and distracting its team from fulfilling its primary mandate to combat impunity. We recall the recommendation by UN Special Rapporteur on torture and other cruel, inhuman or degrading treatment or punishment on his mission to Georgia (2015) stating concerns ‘at the risk that unduly broad jurisdiction, whether exclusive or discretionary, may make the task of the [State Inspector] overly burdensome [if] … offences committed by law enforcement agents that are not part of the core group of torture or cruel, inhuman or degrading treatment or punishment… [fall within its mandate]’. “We call on the authorities to request the opinion of relevant international institutions on the compliance of these decisions with the international standards,” the UN Country Team’s statement concludes. President Salome Zurabishvili herself, on signing the law abolishing the State Inspector’s Service, noted she also considers it unacceptable to adopt such an important law in an expedited manner, without any consultations or “proper discussion.” “Today, I signed the amendments to the law on the State Inspector’s Service, which provides for the abolition of the service and the establishment of new structures instead. There have been and still are differing views on such structural changes, although this decision does not contain a categorical legal objection. The abolition of the service and the establishment of new structures do not provide a basis for motivated remarks of a legal nature by the President. “However, I find it unacceptable to pass
such an important law in an expedited manner, without any consultation or proper discussion, especially since the need to review it in an expedited manner has not been justified by anything. “It is a very bad precedent that the head of an independent service, a person elected for a term of six years, is dismissed without any prior warning or reasoned remarks about her professional activities, especially when strengthening the independence and inviolability of officials remain one of the biggest challenges for our country. “The resulting legislative changes have created an unfair situation, about which I confess my negative attitude. I hope that a solution will be found to enable the State Inspector to continue her activities in one of the newly created services, with all the guarantees of independence. The decision made against her also determines the degree of independence of other employees,” reads the President’s statement, released after the signing. The members of the opposition “For Georgia” party founded by former PM Giorgi Gakharia also responded to the abolishment of the State Inspector’s Service when it was first announced. “The government is sending a dangerous message to independent public officials, leaving citizens vulnerable to state violence,” party Chairman Gakharia claimed. Party member Natia Mezvrishvili echoed his concerns. “Against strong western criticism, in an authoritarian manner, the ruling party has just abolished the last independent elected institution in the justice system
The inauguration of the State Inspector's Service in 2019.
in charge of investigating ill-treatment. Huge step back for Georgia’s democracy & towards authoritarianism,” Mezvrishvili wrote. By the decision of the Parliament, the State Inspector’s Service will be abolished from March 1, 2022. The State Inspector and her deputies will thus be dismissed. The legislative package related to the State Inspector’s Service was approved by Parliament in the third reading. The amendments were supported by 81 deputies. Seven members of parliament voted against the bill. By decision of the majority team, the State Service is abolished and replaced by two agencies – the Special Investigation Service and the Personal Data Protection Service. Others among Georgia’s foreign partners also responded with concern to the decision. The US Embassy Tbilisi published a statement noting the ruling party undermined government accountability by abolishing the State Inspector’s Service, which is mandated to investigate police abuse and protect data privacy, undermined the independence of individual judges by amending the Law on Common Courts, and undermined faith in the judiciary by appointing yet another Supreme Court judge using a flawed selection process. The Embassy claimed no credible reasons were provided to the public for why these actions needed to be rushed through without appropriate consultation. “The lack of transparent discussion or
analysis of the amendments is particularly troubling. Whether intended or not, the ruling party sent the message that independent oversight of the government or dissenting voices, even when prescribed by law, will be answered with retaliation, discipline, and dismissal. “The United States supports Georgia’s sovereignty and stability every day through our long-standing security cooperation and economic development programs. Strong democratic institutions and adherence to the rule of law are Georgia’s best defenses against Russian aggression. Steps that weaken democratic institutions, such as the judiciary or independent oversight agencies, damage Georgia’s aspirations for NATO and European Union membership, and undermine the basic freedoms that are the foundation of Georgian culture and society,” reads the statement. From November 1, 2019, the State Inspector’s Service was mandated to investigate crimes committed by representatives of law- enforcement authorities and by an official or a person equal to an official. The State Inspector’s Service was a legal successor of the Office of Personal Data Protection Inspector. The Office of the Personal Data Protection Inspector was established as the State Inspector’s Service on May 10, 2019. The transformation was conditioned by the assignment of investigative function. From 2013, the Office was monitoring the lawfulness of personal data processing, covert investigative actions and activities performed within the central databank of electronic communications identification data.
Corona Updates: Numbers Surge in Georgia as Omicron Takes Hold Continued from page 1 Tbilisi recorded the highest number of 4171 Covid-19 cases, followed by the Adjara region with 801 cases, and the Imereti region with 792 cases. On Wednesday, Georgia reported 8728 new cases, 8545 recoveries, and 43 deaths. Tbilisi recorded 4797 Covid-19 cases, followed by Adjara with 1184 cases, and Imereti with 859 cases. On Thursday, the country recorded 6351 cases, 3043 recoveries, and 27 deaths. Tbilisi recorded the highest number of 3742 Covid-19 cases within 24 hours, followed by the Adjara region with 903 cases, and the Imereti region with 510 cases. The daily test-positivity rate now stands at 16.58 %, up from 10.9 % in the past 14 days. Georgia’s total case tally reached 1,021,943, among which 946,255 people recovered and 14,582 died. There are 46 people quarantined, 4443 Covid-19 patients in hospital, and 1,746 asymptomatic and mild symptom patients being housed in the government-assigned facilities. As of January 20, 2,635.602 people had received a Covid-19 vaccine, at around 2656 per day. Approximately 1200 Omicron strain coronavirus cases have been confirmed in Georgia so far. Only 14 of those required hospitalization, said Tamar Gabunia, Deputy Health Minister. She added that the majority of the infected persons are fully vaccinated and only a booster jab could double protection.
THE REGULATIONS Despite the rising cases, the Georgian government cut the minimum self-isolation and quarantine period to 8-10 days for vaccinated persons from this week, depending on symptoms.
Image source: 1TV
“For asymptomatic-mild cases, quarantine will be required for 8 days,” Gabunia announced this week. “At least 24 hours should have passed after the disappearance of the symptoms before ending that quarantine. Wearing a mask for the next 5 days after isolation is strongly recommended. “For moderate and severe cases, the isolation term is at least 10 days. At least 24 hours should have passed after the disappearance of the symptoms before ending that quarantine. Here, too, for the 5 days after the end of isolation, it is strictly mandatory to wear a mask. “As for contacts, the terms here are also being reduced and eased. If the contact of a Covid-positive patient is vaccinated, including persons with booster vaccination and those who have had only the first two doses, within 2 weeks-90 days after receiving these doses, quarantine will not be necessary. Further, 60 days after being infected with
Covid, individuals, under the strict recommendation of using a mask, need no longer be quarantined within 10 days of contact. “The unvaccinated are still recommended to stay in quarantine for 8 days after contact and to use a mask for a period of 9-12 days,” she added. Importantly, this Thursday, Switzerland recognized Georgian Covid-passports. The news was published on the website of the Swiss Federal Department of Health, according to which Georgia is on the list of about 30 countries whose passports are recognized by the country. According to the same information, the agency urges citizens to take into account that it is still mandatory to take a test and a Covid-certificate alone is not enough to enter the country.
THE CASES WORLDWIDE As of Wednesday evening, more than 337 million cases of Covid-19 had been
reported worldwide, according to Johns Hopkins University's coronavirus tracker, while the reported global death toll stood at more than 5.5 million. In the UK, Covid cases are at the lowest level for a month. The UK reported another 81,713 coronavirus cases on Monday, the lowest daily level seen since 15 December. The apparent ebbing of the Omicron wave comes as some experts claim the end of the pandemic is in sight for the UK, reported the BBC. However, the number of deaths within 28 days of a test remains high, with 1843 over the past seven days, a 45% rise from the previous week. The number of hospital patients with Covid has dropped. Prof Julian Hiscox, Chairman in Infection and Global Health at the University of Liverpool, told the BBC that we are heading towards a new phase of the pandemic where the virus has a lesser impact on daily life. "We're almost there, it is now the beginning of the end, at least in the UK. I think life in 2022 will be almost back to before the pandemic," he said. However, the head of the World Health Organisation (WHO) has issued a warning to world leaders that the coronavirus pandemic "is nowhere near over". Dr Tedros Adhanom Ghebreyesus cautioned against the assumption that the newly dominant Omicron variant is significantly milder and has eliminated the threat posed by the virus, reports the BBC. The intervention comes as some European nations saw record new case numbers. Based on the same source, France reported nearly half a million new daily cases on Tuesday. For the first time since the start of the pandemic, more than 100,000 new infections were recorded in Germany within 24 hours on Wednesday. While the variant may prove to be less
severe on average, "the narrative that it is a mild disease is misleading," Ghebreyesus said. In the Americas, the Biden administration will begin making 400 million N95 masks available for free to Americans starting next week, now that federal officials are emphasizing their better protection against the Omicron variant over cloth face coverings. Brazil reported 204,854 new confirmed cases in the past 24 hours, breaking the country's previous record for the second day in a row, the Health Ministry said on Wednesday. In Europe, Austria, Slovenia and Croatia reported record new daily infections Wednesday, while new cases and deaths fell in neighboring Italy. Meanwhile, doctors and medical workers in Poland fear the country's healthcare system may not be able to cope with the latest surge of COVID-19 infections. More than 30,000 new cases in 24 hours were reported Wednesday, and health authorities are expecting the figure to almost double in the next week, reports CBC News. Based on the same source, in Africa, South African-American businessman Patrick Soon-Shiong opened a new vaccine plant in Cape Town on Wednesday, intended to help his local NantSA company make Covid-19 shots and address the continent's deadly dearth of manufacturing capacity. As reported by CBC News, in the Middle East, Israel will continue to offer a fourth Covid-19 vaccine shot despite preliminary findings that it is not enough to prevent Omicron infections, the Health Ministry said on Tuesday. A preliminary study published by an Israeli hospital on Monday found that the fourth shot increases antibodies to even higher levels than the third but "probably" not enough to fend off the highly transmissible Omicron.
NEWS
GEORGIA TODAY JANUARY 21 - 27, 2022
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IDP Protest at Living Conditions Leads to Suicide Image source: guardian.ng
PM: 1 mln Vulnerable Georgians to Get Increased Power Tariff Subsidized by Gov’t
A
Source of photo: publika.ge
O
n January 16, 52-year-old Zurab Chichoshvili, an Internally Displaced Person from Abkhazia living in the building of old sanatorium Kartli in Zgvisubani settlement, Tbilisi, committed suicide, jumping out of the building in protest at being forced to live in such conditions. The Ministry of IDPs, Labor, Health, and Social Affairs says the IDPs living in the former sanatorium will receive new living spaces in 2022. IDPs living in the sanatorium have been protesting living in unbearable conditions for a long time, asking for an alternative location, as the building is in a state of disrepair and living there is dangerous. The Ministry of Health responded to the tragedy by noting: “the decision of the Ministry of Internally Displaced Persons from the Occupied Territories, Labor, Health and Social Affairs of Georgia, that IDPs living in the former sanatorium Kartli will receive new housing unconditionally in 2022.” Public Defender of Georgia, Nino Lomjaria, released a statement noting “based on legislation, long-term resettlement of IDPs relies on a scoring system based on certain criteria. Exceptions to this rule are the buildings that are proved to be ruining by an expert report, which makes the resettlement of IDPs possible without points system, as a priority. Despite this provision, it is unfortunate
that many internally displaced families still have to live in such conditions. According to the latest data available to us, there are up to 90 facilities threatening life and health in the country. It should also be noted that the Agency for Refugees, Eco-Migrants and Livelihoods does not check the sustainability of buildings on its own initiative, which is why their number may be even higher. In recent years, the Public Defender had examined the rights situation of IDPs living in the former sanatorium building Kartli and found that the Agency for Refugees, Eco-Migrants and Livelihoods unreasonably refused to check the technical sustainability of the building (to conduct a relevant inspection). As a result, on December 21, 2020, the Public Defender addressed the Agency with a recommendation and requested a technical sustainability inspection of the building. The expert opinion confirmed the existence of an environment that poses an increased risk to life and health. According to our information, at this stage, the IDPs living in the Kartli building have received an administrative promise to be provided with long-term housing as soon as possible. Recently, part of the ceiling in the building entrance collapsed, which worsened the situation and pushed the IDPs to hold protests to demand the immediate provision of longterm housing. They connect this circumstance with the suicide of the IDP. According to the Agency, IDPs were
offered several housing options: temporary rent (provided by the local government), purchase of a house selected by an IDP (1 m2 of living space in the capital is equivalent to $550 in national currency, while the apartment area is determined according to the number of family members), or waiting for completion of the construction of apartments purchased by the State. The IDPs did not accept the offers, expressing distrust of the alternative of providing rent before long-term resettlement. In particular, they fear that the rental provision will be terminated after a certain period. Due to the current situation, the Public Defender of Georgia calls on the Agency for Refugees, Eco-Migrants and Livelihoods to provide IDPs living in the former sanatorium building Kartli with individual information about the offers and the specific deadlines for their implementation, as well as to use all the levers at its disposal to resettle IDPs from the damaged facilities containing an increased risk to life and health as soon as possible, and in order to increase the IDPs’ confidence in the process, in case they choose to rent, to issue an administrative promise to provide them with rent before the provision of long-term housing. At the same time, the Public Defender of Georgia once again calls on the Agency for IDPs, Eco-Migrants and Livelihoods to prioritize the resettlement of IDPs living in the demolishing facilities in order to avoid dire consequences.”
Pharmaceutical Market Opens to Turkey, Medicines to be Cheaper, PM Says
significant part of the population of Georgia – about one million people – will get an increased power energy tariff subsidized by the Government, – Irakli Garibashvili, Prime Minister of Georgia, said Monday. He noted the initiative will apply to target groups: households with 150,000 and less social subsistence points, which is around 1 million people.
“The referred program has existed since the dawn of the pandemic and was valid for two years. This program of subsidy ended in January, 2022. But, we have decided to extend the program for those groups that are most vulnerable. These target groups will get the increased power energy tariff subsidized by the Government. This initiative will be enacted from January and remain valid for the entire year,” Garibashvili said.
Person who Forced German Tourist to Pay 1000 GEL for a Bottle of Beer Arrested
T
he officers of Old Tbilisi Police Main Division under the Tbilisi Police Department of the Ministry of Internal Affairs arrested an employee of a Tbilisi club, E.Ch. (DoB 1980) for coercion. The investigation established that on January 14, the employee of a club in the central district of Tbilisi forced a guest of the same club, a German tourist, to pay a much larger sum instead of the actual cost of the beer
ordered, in particular, he forced the tourist to pay 1000 GEL for a bottle of beer. As a result of operative and investigative activities carried out within the frames of the ongoing investigation, the police sealed the mentioned club, and later, employee E.Ch. was arrested. The investigation is underway under Article 150 I part of the Criminal Code of Georgia, which stipulates coercion – unlawful restriction of a person’s freedom of action.
BY ANA DUMBADZE
G
eorgia has opened its pharmaceutical market to Turkey, which will lower the prices of medicines, announced Georgian Prime Minister Irakli Garibashvili announced Monday at a Cabinet meeting, with the decree coming into force the same day. “I hope importers will import highquality medicines from Turkey, which will significantly reduce the prices of medicines in Georgia very quickly. We will also develop a bill to better the situation even further,” he said. “I now want to ask the Minister of Health to set up a working group, to ask the relevant parliamentary committees to start working together, because a number of laws will need to be changed and this will help make medicines even
Roberta Metzola Elected President of the European Parliament
cheaper,” Garibashvili told the new health minister, Zurab Azarashvili. “The task should be to monitor prices
and control the quality. Quality medicine must be provided to our population,” the PM said.
R
oberta Metzola has been elected President of the European Parliament. European Council President Charles Michel congratulated Roberta Metzola on her election. “I congratulate Roberta Metzola on the
new presidency of the European Parliament. The European Parliament is the heartbeat of our European democracy. I look forward to working with you,” Michel addressed her. Former President of the European Parliament David Sassol, 65, passed away mid-January.
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POLITICS
GEORGIA TODAY
JANUARY 21 - 27, 2022
MEP Rasa Jukneviciene on the Prospects of Talks between the West and Russia for Georgia and Ukraine INTERVIEW BY VAZHA TAVBERIDZE FOR RFE/RL
T
he NATO Russia Council reconvened in Brussels for the first time since 2019, following a series of highstakes negotiations between the US and Russia, the purpose of which was to ease tensions over events in Ukraine and reach some kind of compromise with the Kremlin. For its part, Russia’s Foreign Ministry had rolled forward a set of extensive security demands ahead of the talks as far back as in December. These include a demand for NATO to rescind the promise made to Ukraine and Georgia in April 2008 that they could one day join, as well as a call for NATO not to station large combat forces in its eastern members. However, such demands have been labeled by the West as non-starters. With both sides equally pessimistic, it was not surprising that the Brussels meeting yielded no considerable progress. Radio Free Europe spoke to Member of the European Parliament Rasa Jukneviciene, Lithuania’s former defense minister and ambassador to NATO, on the prospects of the talks.
WHAT IS YOUR PERSPECTIVE ON THE “SECURITY GUARANTEES” THAT RUSSIA IS DEMANDING FROM THE WEST IN GENERAL, AND FROM NATO IN PARTICULAR REGARDING THE EXPANSION? First of all, I would like to underline that in reality what [Putin] is afraid of most is not NATO per se, but democracy getting closer to Russia. He has seen what happened in Belarus, and he is terrified that Ukraine will manage to become a genuinely European country in the future. He is afraid of his own people, of them looking around, and possibly doing what people did in Belarus. So he has gone back to Soviet tactics and is blaming the US and the West, with the old lines of “The Americans are bad, they threaten the Soviet Union!” Nobody should believe this, but I am
afraid some countries in the West might believe that NATO is really the source of Putin’s aggression, and he’s expecting that somebody will treat his demands as real and justified. Putin believes that the West and democracies are weak. He believes that he can weaken democracies by sowing chaos to worsen their problems and present them with challenges. He wants to be treated as equal with the States, so by starting these negotiations, he believes he can achieve at least something. And he knows full well that some Western countries are not really invested in NATO enlargement when it comes to Ukraine and Georgia, despite them being ready for at least a Membership Action Plan (MAP). We remember what happened in 2008 at the Bucharest Summit, when some countries blocked the MAP to Georgia and Ukraine. I think it was a huge mistake, and provoked Russia into doing what it did next. So I fear that some countries will simply be afraid and they will start to speak the same way as they did in 2008.
to have some invisible veto over these matters.
THERE ARE FEARS, DESPITE NATO CLAIMING OTHERWISE, THAT GEORGIA AND UKRAINE’S EURO-ATLANTIC ASPIRATIONS COULD BECOME A TRADING CHIP WITH RUSSIA IN EXCHANGE FOR DEFUSING THE SITUATION AT THE BORDER, LEADING TO SOME KIND OF LASTING AGREEMENT. COULD THIS BE ON THE CARDS?
THE EU AND US ARE THREATENING A NEW SET OF SANCTIONS IF THE SITUATION ESCALATES IN UKRAINE. WHAT FORM COULD OR SHOULD THESE SANCTIONS TAKE?
I doubt it’s possible. It’s not the same as it was in 1938 or 1939. As I speak here in the European Parliament, many now have a much more realistic approach towards Putin and what is going on in Ukraine than 10 years ago. I don’t think we’ll find any Chamberlain among our ranks in these negotiations. A lot, obviously, depends on Ukraine and Georgia as well – how committed they are to this path. It was the same situation when we [Lithuania] were asking for Membership Action for NATO membership. When Estonia was invited before us, it actually helped us to make better progress. But it’s very important to at last have some breakthrough in the Eastern Partnership countries so that Russia doesn’t continue
Gains & Losses
Stock.adobe.com
OP-ED BY NUGZAR B. RUHADZE
I
f only it were possible to guesstimate all our gains and losses resulting from the inadequate and pernicious political confrontations that have taken place in Georgia over the last thirty odd years; something that interminably gnaws at the nation’s nervous system. The cursed process never stops, seemingly as endless as the universe itself. And what’s most regrettable: it doesn’t help at all. Vice versa: it halts the development instead of pro-
moting the nation’s future. These torturous thoughts will likely reach the foreign audiences made up of diplomatic corps, representatives of various bodies accredited in Tbilisi, Georgia’s friends in general and, of course, our compatriots living abroad. As a result, they may well lack particularly complimentary thoughts about the ongoing good and bad here. Yet, the hope is that these judgments will be properly understood and taken to heart. Nobody wants to let wrong impressions form of Sakartvelo. On the other hand, nobody has a desire or intention to lie about the situation in the country, so that those who
NATO SEC GEN STOLTENBERG SAID “IT IS POSSIBLE TO MAKE DEALS WITH RUSSIA”, ADDING THAT HE SEES THE TALKS AS “PERHAPS NOT TO RESOLVE ISSUES, BUT PROVIDE A PATHWAY” – WHAT PATHWAY COULD THAT BE? My understanding is that the West’s tactic is not to have any deal at all. Containment is the most effective policy towards Russia, as it was with the Soviet Union, because what we see now is Putin rolling it all back to Soviet-era tactics. So be it: The West has enough experience on how to deal with such dictatorships. And when you see what’s going on with the Russian economy, you realize that it is simply not sustainable over the long term. I don’t know how they expect to keep their country going in the future. So that is why I think that may be what Putin is doing now, and it is the beginning of the end.
As I already mentioned, containment is key – so any large-scale sanctions should be tailored around it. This means banking systems, energy resources…curtailing the Kremlin’s income from democratic countries would be a huge response. Everyone should understand that if we can’t stop this kleptocratic, autocratic and aggressive regime today, it will create a lot of problems for our countries tomorrow. It’s not only about Ukraine and Georgia, but about ourselves too.
MANY OF YOUR COLLEAGUES IN THIS BUILDING MIGHT SUGGEST THIS WOULD MEAN A RETURN TO THE COLD WAR STATUS QUO IF SUCH MEASURES WERE TAKEN. DO YOU REALLY BELIEVE THAT YOUR WESTERN EUROPEAN COLLEAGUES ARE READY TO FACE THE COSTS? are not indifferent towards Georgia’s fates are prepared accordingly in order to make appropriate decisions in favor of the Georgian people. What might be the deep-seated reason behind such politicking in this country – vain, fruitless, unintelligent, ambitious, unduly vociferous and full of venomous grudge? There might not be just one, but several reasons, such as the insatiable hunger for truth and freedom in the wake of the long-tolerated and now-demolished soviet socialist way of life; the latent potential of politics, usually in developing countries, to promote personal wellbeing; the revolutionary character of the Georgian people, which was tightly bridled in the soviet era and has now been unleashed; the absence of opportunity to keep oneself busy by being involved in the money-making process; the chronic poverty and social misfortunes of masses that have never been eradicated completely; the predominant feeling that the people involved in those vicious political clashes are not the scions of the same land and culture; the ever-present public division on the issue of preference between the east and the west, not recognizing that home is truly best; the lifelong confusion of conservative and liberal sentiments as modern tools for the civilized struggle between opinions, etc. – the etcetera because the list might never end! The current political struggle in Geor-
Some may claim it’s wishful thinking on my part, but I think that the mood has changed. When we voted for resolutions on Russia and Lukashenko, there was a huge majority that were in favor all the time. And today we see Putin is doing his utmost to convince even those who were previously hesitant. Of course, we need more unity; there will be countries who won’t approve of any of that. I don’t know about Hungary, I don’t know about some other countries. But compared to yesterday, today it’s very easy to speak about Russia in Brussels. I remember when I was at NATO some 10 years ago, especially before 2014 and the aggression against Ukraine, it was very difficult to speak about Russia. We [the Baltic states] were portrayed as slavophobes, as single-issue countries, but that doesn’t happen anymore.
It’s not impossible to solve this problem. Russia is not a huge partner in the economy for the European Union and NATO anymore. Not at all.
REGARDING KAZAKHSTAN AND THE SUBSEQUENT RUSSIAN INTERVENTION, THERE ARE FEARS THAT CRIMEA WON’T BE THE LAST PIECE OF UKRAINIAN LAND THE KREMLIN WILL TRY TO SNATCH. JUST HOW FAR DO YOU THINK PUTIN IS PREPARED TO GO?
When we speak about the economy, this is the biggest challenge for EU countries that have become so dependent on trade [with Russia]. Energy – yes, but we have alternatives, it’s no longer a monopoly.
There are a lot of question marks over what happened in Kazakhstan- we don’t have very clear information. But one thing we see for sure is that people are not happy with the dictatorship. How Russia was able to intervene, and so quickly, also raises some questions. Kazakhstan was always on the table as a target for the Kremlin to keep influence in because in Central Asia, it’s the most important country, as well as the largest and with the biggest economy. So it looks like their interest was for a long time stopping Kazakhstan from becoming an independent actor in the region, not to mention a democratic state.
gia seems like the end in itself, like a deliberately assumed obligation, professional occupation, way of survival, passion, endeavor and aspiration, all without the recognition and appliance of the universally accepted concept that any political fight is good only when it benefits the people, on whose behalf, at least verbally, the politicians wrestle. Consequently, such a massive and vehement involvement in political confrontations is distracting the nation from the main purpose of producing the necessary goods for survival, instead focusing the people’s energy and attention on what the infinite struggle might result in, playing out as if it is not real life, but a movie about somebody else, not us. A naïve but still thoughtful rank-andfile in the street might wonder what the dwellers of those cozily sheltered and comfortable offices of foreign accredited
bodies in Tbilisi, meant to improve life here, are doing and think of the entire thing – just looking at how this country and its innocent people are being whittled down to nothingness in the hands of those militant politicians who want to hear nothing except their own, already hoarse and raucous voices. No, they don’t mean to blame anybody for the drawbacks and weaknesses of the self-wronging Georgians. But they may be wondering if there is a way to start schooling this generation of politicians in elementary things, like the theory and practice of “turn the other cheek”, or the fleeting character of life itself: that in just one brief tick, all of today’s raging political animals, listening to whom the electorate is terribly tired, will disappear, and a totally different species of will come into the realm of politics to take good care of this wonderful land.
WHAT ABOUT THE ECONOMIC LEVERAGE THAT RUSSIA HAS ON SOME OF THE BIGGER ACTORS ON STAGE?
Image source: digiday.com
POLITICS
GEORGIA TODAY JANUARY 21 - 27, 2022
5
MEP Michael Gahler: Germany Will Not Be a Country to Make Concessions to Russia INTERVIEW BY VAZHA TAVBERIDZE FOR RFE/RL
A
fter a week of fruitless talks between Russia, the US and NATO, it seems that Germany is going to get involved in an additional round of talks - according to German media reports, the new German Chancellor wants to meet with the Russian president by the end of January. Prior to the possible meeting between Scholz and Putin, German Foreign Minister Analina Berbock visited Kiev and Moscow. Should we expect a change in Berlin's pragmatic course towards Moscow? How should the West oppose the Russian ultimatums? "We are not going to make concessions, and I assure you, Germany will not be a country that will make concessions to Russia," MEP Michael Gahler, a member of the Foreign Affairs Committee from the Christian Democratic Union in Germany, told RFE / RL. He also answered questions related to Georgia.
GERMAN MEDIA WROTE THAT GERMAN CHANCELLOR SCHULTZ MIGHT MEET WITH PRESIDENT PUTIN IN JANUARY. WHAT'S THE MOOD IN GERMAN ON THAT? I think what has been seen is that we, both in the EU and NATO framework, are all on the same page regarding Russia: to de-escalate, to refrain from any belligerent and violent steps, and to warn them that there will be an unprecedented amount of sanctions to be faced. The Russian troops are now almost two months there in the cold, and simply to let them go home – that’s what we all wish and what we all hope will happen. But it doesn't seem that it will. So there is an urgent need to stand united and firm. On Tuesday, the foreign minister goes to Moscow to meet FM Lavrov. I hope she is well prepared, because he has that character Mr. Borrell experienced when he was there, and he will not be polite. But as it is so crystal clear who the aggressor in this field is, I'm pretty sure she’ll make her points in this dialogue that Russia has already heard unanimously.
DO WE EXPECT THE NEW CHANCELLOR TO FOLLOW IN HIS PREDECESSOR’S FOOTSTEPS WHEN IT COMES TO THE RELATIONSHIP AND APPROACH TO MOSCOW? We have a toughening of the Russian attitude, and the West as a whole is answering to that. I think there is a need to be clear and not to give the impression that there is anything legitimate in
what they are demanding. We have an interest in discussing arms reduction, arms control, transparency, but there is no other possibility to make concessions and they will certainly not come from Germany. That is what I expect from the new Chancellor.
WHAT CAN THE EU DO IN THIS FRAMEWORK? WE'VE SEEN HIGH COMMISSIONER BORRELL TRAVEL TO UKRAINE. BUT THEN THERE WAS AN IMPRESSION THE EU WAS SIDELINED FROM THE THREE BRUSSELS - NATO SESSIONS AND FROM THE OSCE IN VIENNA. WHAT IS THE EU ABLE TO CONTRIBUTE? It's good that for the first time ever, the High Representative visited the east of Ukraine. Mrs. Mogherini should have gone, but she did not. The EU policy is very clear: push back, constrain and engage. To answer the possible military aggression, we have real leverages in the area of economic sanctions. And we as a parliament have been outspoken, we have said- Swift must be switched off. And that will really have an enormous immediate effect. I think also what will have an immediate effect would be that we cancel globally all these tens of thousands of privileged permanent visas that certain people in Russia have in countries of the European Union, all these oligarchs and businessmen that are active and traveling back and forth on long term visas. Those visas need to be cancelled, they must feel it, and they must come to the conclusion that they should tell Putin that they are not happy with his policymaking. And they should tell him now before it all happens, so that this preventive effect gains ground. They should be concerned about their businesses, and know that if they side with Putin, they will lose with him.
AND YOU THINK THAT WOULD MAKE PUTIN RECONSIDER HIS PLANS? He is a pioneer, but he has come to the end of his wisdom on how to handle his Russia for the future, because if you assess the real situation, he has the problem of a structurally weak industry, lack of innovation, with nothing but some military technology that you can only use for war and nothing else. They are by no means going anywhere. And Covid, too. You see how our stronger economies have suffered from the pandemic. In Russia, they tried to hide the real figures of how many died from Covid. Then Putin has to finance Lukashenko, he has to finance Crimea, Donbas, Luhansk, Abkhazia, South Ossetia, Transnistria and the war in Syria – they all put insurmountable costs on this weak economy, so he is clearly punching above his weight, something he doesn't have the resources
MEP Michael Gahler during a debate. Image source: European Parliament
for, and that’s what makes him so dangerous. Because before he admits he's on his knees, he would rather get aggressive and that is where we are at. We should not be afraid, but remain firm and steadfast.
SO FAR, THE EUROPEAN ALLIES, INCLUDING GERMANY, HAVE BEEN STAUNCHLY AGAINST LENDING MILITARY SUPPORT TO UKRAINE. WOULD YOU SAY THAT THAT APPROACH SHOULD CHANGE IN LIGHT OF WHAT’S HAPPENING NOW? Yes, and it should have changed already. According to Article 51 of the Charter of the United Nations, any country has the right to defend itself. And when there is a threat from outside, they have a right to have at least defensive weapons. So I would like to see the Ukrainian demand for anti-tank missiles granted. I mean, the Germans have the Milan, the Americans have the Javelin - I think there should be at least one Javelin or Milan available for every Russian tank that is waiting on the other side of the Ukrainian border, to help stop any invasion. Fortunately, the Ukrainian army is not that of the year 2014 any longer. They have built up far better capacities. Yes, there are 100,000 Russian troops, I'm not so sure that [the Ukrainians] can stand against such an invasion if it happens. That is why I'm firmly in favor of supplying them with sufficient defensive weapons to make it very clear they will not let it happen, they will resist and Russia will pay a high price, aside from the economic sanctions and severe measures. Also, militarily, there will be many dead bodies returning to Russia, which I do not wish the Russian mothers to mourn.
ONE OF RUSSIA’S OUTSTANDING DEMANDS PUT FORWARD BEFORE THE TALKS WAS TO STOP THE NATO EASTWARD EXPANSION. WHAT WAS THE RATIONALE FOR THE KREMLIN TO DEMAND THAT, CONSIDERING THEY ALREADY SEEM TO HAVE A DE FACTO VETO? DOES PUTIN WANT TO PUT IT ON PAPER AS WELL? German media wrote that German Chancellor Schultz might meet with President Putin in January. Image source: John Thys/Mikhail Metzel/Sputnik/AFP/Getty Images
Well, they will not get anything on paper.
And I think they may even see the adverse effect. Ukraine and Georgia wanting to join NATO is nothing new, but it is now being discussed in Scandinavia, Sweden and Finland, who say that we should not apply given this Russian development, we are already cooperating closely. I really wonder who advises Putin or whether he is resisting any advice he is given? I mean, before the attack on Crimea, and the Donbass, there was never a majority in Ukraine in favor of NATO membership. It is all a situation where I can only come to one conclusion - it's not the weapons of NATO, it’s not the economic prosperity of the EU that is a danger to Putin. It is our way of organizing society in a democratic way. And I bet his biggest fear is that Ukraine, which is historically very close to Russia, could develop a strong economy, a stable democracy, the rule of law, and thereby, show the Russians that one can organize society in a different way. That is the danger that comes from NATO countries, not NATO weapons, but the way we organize society. And everybody knows that he knows it. We know it. And that is why there is no argument for us to allow him to set up a second Yalta. Those times are long gone.
WHAT ABOUT GEORGIA AND UKRAINE? THERE HAS BEEN SOME DISMAY SINCE THE EASTERN PARTNERSHIP SUMMIT, BECAUSE THERE WAS NO EUROPEAN PERSPECTIVE MENTIONED. I understand the frustration, at least for the three countries who have association and free trade agreements, that there was no additional, formal perspective. But my point has always been to first do your homework. And I'm currently not unhappy about the developments in Moldova. I mean, apart from the blackmailing from Gazprom regarding gas supplies. With Georgia, I'm upset when I see how in the light of the Russian aggression, there are still political battles between the President and his predecessor. It is not the time for domestic struggles- they must stand united against this existential threat. The fact that we had Charles Michel three times in Georgia. I mean, that is not something that
happens. And we are disappointed. And this disappointment has several addresses. It's primarily the government, because they apparently think they can ignore warnings and good advice. But also, the opposition is not being particularly constructive mood either. The only one who profits from that and who is happy is again Putin. So I really can only appeal to all Georgian stakeholders, please do your homework and see your real interest and the long-term perspective for your country.
AT THE 2008 BUCHAREST SUMMIT, GEORGIA WAS A POSTER CHILD OF THE EU, UKRAINE DID NOT HAVE ANY OPEN WARFARE OR ANNEXATION, YET WE WERE DENIED A NATO MAP EVEN THEN. YOURS WAS AMONG THE SKEPTICAL COUNTRIES. ONE COULD ARGUE THIS HASN’T CHANGED OVER THE YEARS, ONLY WORSENED. WHAT WOULD IT TAKE TO SEE A SHIFT TOWARD A MORE POSITIVE APPROACH? It’s not a secret. It was Germany and France. If, in 2008, we had taken the two countries in, perhaps it would have at first caused some outcry in Moscow, but not the reaction we’re seeing now. We would probably be in a different situation now, but we are where we are. The general point is always that when NATO enlarges, it must be at the will of the acceding country. I mean, we don't force anybody into NATO, nor into the EU. That's the difference with Russia. And, of course, it must add to our security. But then we see this situation, and the Russians are not lining up at the borders of the Baltic states, because they are in NATO. It is sad, under these circumstances, to have such discussions. I would have wished that inside Russia itself, there would be the beginnings of the necessary change. It will come, probably not with Putin, at least while he is rich and alive in the Kremlin. He knows he will not leave the Kremlin both rich or alive, so that is why he conducts these policies. But I think it has already caused a rethinking in the West and it is not in the direction of appeasement.
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POLITICS
GEORGIA TODAY
JANUARY 21 - 27, 2022
Resistance as a National Defense Strategy
A Ukrainian territorial defense battalion, made up of civilian volunteers, trains at a base outside the city of Dnipro in 2015. Source: Nolan Peterson/Coffee or Die Magazine
BY MICHAEL GODWIN
A
s national defense strategies typically go, the unquestioned norm is a standing armed forces organization. This vast force is usually backed with various reserve and national guard or militia units behind it as a type of force multiplier for worst-case scenarios. Depending on the law and constitution of the country in question, the police can also be called into service in certain circumstances. The common citizenry are rarely if ever expected to bear the burden of armed conflict, but rather are protected at every opportunity. However, with some states being placed under threat from other far larger powers, many commanders have begun to look beyond the pale of conventional warfare. Ukraine, Lithuania, Latvia, Poland, and Estonia have all begun turning to the potential of resistance-based
warfare rather than outright battlefield victory as a means to maintain their sovereignty. Resistance takes many forms in the sphere of military strategy, particularly dependent on the observer's background and training. Historically, the more famous examples hail from the Second World War and such elements as the French Resistance, the Forest Brothers of the Baltic States, and the various “Partizan” groups that fought across Eastern Europe and Russia. In more recent conflicts, these include a wide range of units from the Mujahideen in Afghanistan in the 1980s to the Ukrainian civilian and foreign volunteer irregular units struggling against the Russian invasion of 2014. What virtually all of these units throughout the 20th and 21st centuries share in common is several key attributes that have come to define a resistance unit in strategic terms. They are composed of local and native peoples that conduct active and passive, violent and nonviolent, military, political, social, and economic warfare against an occupying
aggressor. In terms of Georgia, this will be the next Russian invasion and occupation force. While the necessity of a standing regular army will never go away, the need for an irregular force of civilian volunteers is a newer necessity. This requirement is one that Ukraine found to be vital to its own national defense throughout the Russian invasion. This ad hoc “national guard” force was even evaluated by some analysts and experts to be the saving grace for the nation when Russian regulars entered the battlefield in the summer of 2014. For Georgia, the same type of force will have to be called upon. While the composition and organization of this force has already been covered in recent articles (see Citizen-Soldiers: Should Georgia Revive the Home Guard Model?), it is their formalization and implementation in a practical exercise and interoperability with NATO counterparts prior to, during, and after an invasion that need focus. Not unlike their regular army counterparts, resistance forces will require sig-
nificant operational literacy with NATO forces, particularly their Special Operations Forces (SOF) components. These components are tasked with the training, advising, assistance, and enabler missions that amplify the effectiveness of resistance units. Having these relationships between resistance leadership and SOF teams is essential to cultivating a healthy opposition to a Russian occupation. As the saying goes, an ounce of (pre-planned training) prevention is worth a pound of (diplomatic and military) cure. Ukraine, despite already being locked in a luke-warm conflict with Russia, is already implementing this strategy within its citizenry. A cursory search on sites such as YouTube will reveal numerous video reports of local defense and resistance units, termed Territorial Defense Forces, These men and women hail from all walks of life and have agreed to be a part of the underground movement to resist and combat what they see as the coming Russian occupation. With instructors from NATO as well as their own combat veteran volunteers from the Donbass front, their education goes beyond standard military training. As they are not expected to carry out offensive military operations, their courses focus on improvised forms of defense, asymmetrical warfare, and guerilla tactics. The primary objective is simple, but drawn out over the long term, as the
defenders are quite literally fighting in their home field. Each Territorial Defense volunteer aims to make the political and military positions of the enemy so untenable, so undesirable, and so utterly miserable, that they are forced to withdraw. As one might say, a thousand small cuts brings down even the mightiest of beasts. Involving allied SOF units in the resistance preparation movement is an essential ingredient not only in the command and control capability of the resistance units, but also in the intelligence, surveillance, and reconnaissance for other NATO elements. This relationship was visible between the NATO SOF units and the Northern Alliance at the very early stages of the Afghanistan operation. Through this close cooperation, they had access to local ISR assets that would otherwise be outside the reach of conventional units. Unfortunately, this level of cohesion is difficult to attain outside of a national emergency. It’s unrealistic to have NATO SOF units working with civilian militias during times of relative peace. However, maintaining warm diplomatic relationships can go a long way. Types of asymmetric operations like these aforementioned examples should be firmly integrated into the national defense grand strategy. Georgia, like other smaller nations, is in a position that requires this approach to national security; resistance and underground opposition as a form of long term preservation of sovereignty.
A US Army Special Forces weapons sergeant observes a Niger Army soldier during marksmanship training as part of Exercise Flintlock 2017 in Diffa, Niger, February 28, 2017. Photo by US Army/SFC Christopher Klutts/AFRICOM
Between a Territorial and Liberal Empire ANALYSIS BY EMIL AVDALIANI
T
he multipolar world, the pivot to China, the freeing of Russia from a Eurocentric foreign policy, the building of a liberal empire – these are the major foreign policy developments that have characterized Russia’s foreign policy for more than a decade. But contrary to the views of many observers, these grand geopolitical scenarios did not originate in the 2010s. Rather, each of these geopolitical notions was in preparation even well before the 2000s, the product of the collapse of the Soviet order and the ensuing chaos, the rise of China, and an inherent resentment, one that has always existed within the Russian political classes,– toward the Western world order. Let’s start with multipolarism, which is often cited by the Russian political elite as a solution to the problems where the US has enjoyed primacy over the oceans and the periphery of the Eurasian landmass since the end of the Cold War. The Russian world of the 1990s was shaken to its foundations and submerged in turmoil. Borders diminished, and so did Moscow’s geopolitical influence across Eurasia. NATO/the EU and the US began expanding their military, economic, and technological power across Eastern Europe, gradually moving into Ukraine and the South Caucasus. In many ways, Russia’s first foreign policy initiatives of a multipolar world,
an order in which several powers act simultaneously as global decision makers, evolved as a natural reaction to the challenges Russia faced at the time. Instrumental to the development of the multipolar world concept was a man often disregarded in geopolitical books on modern Russia: Evgeny Primakov, Russia’s Minister of Foreign Affairs under Boris Yeltsin. Primakov’s reaction to Russia’s inability to hold off the West’s power was to look for powers to balance the West. Thus was born the phrase “strategic triangle”, which consisted of Russia, China, and India. There was no formal agreement coordinating the triangle’s respective strategic views on Eurasia or anything else, but its creation was nevertheless an indicator of a coalescence around different, mostly angry, views about the West-led world order. It was only a matter of time (perhaps even decades) until Moscow pressed to further deepen cooperation with the Asian states to challenge the US. This is the background to Moscow’s response to tensions with the West. Partly out of necessity and partly out of inevitability, Moscow once again looked east. Putin’s pivot to China is essentially an intensification of what was in place in the 1990s. The pivot to Asia is inextricably woven into another myth of recent Russian diplomacy: Moscow’s attempts to shake off its Eurocentric approach to foreign affairs. Though this too has been attributed to Putin, it has been evolving since at least the 1990s, when signs of resentment toward successful and wealthy
Flags of the Eurasian Economic Union. Image Source: vestnikkavkaza.net
westerners were visible among the increasingly disillusioned Russian political class. In fact, one can see Russian attempts to “de-Europeanize” their foreign policy even further back than that. The Soviets, with all their ideological approaches to the world, tried to do it, and the Romanovs too, particularly after the Crimean War of 1853-1856, but the latter did not have enough resources and strong Asian countries with which to partner. Moscow’s present “de-Europeanization” of foreign policy should thus be seen as a recurrence of a grand historical cycle of Russian thought. All these foreign policy moves, old or (as some think) new, are contingent upon
the way Russia wants to position itself in Eurasia. A clear decision on the creation of a territorial empire has not been taken, but it is evident that the Russian political elite has not abandoned the idea of empire either. There was a growing push in Russian foreign policy from the late 2000s through the early 2010s to try to build an economic empire that preferably would not involve the military takeover of territory. While the creation of the Eurasian Economic Union (EEU) took place in 2015, the idea behind the project can be traced back to the 1990s, when the Russian political elites, angry at their poor position vis-à-vis westerners, and fearing the loss of neighboring states to
NATO/the EU, discussed ways to reassemble the lost empire. Building a liberal (i.e., non-military) order in the former Soviet space, but one that is nevertheless strongly attached to the Russian heartland, could only happen through economic means: buying up railways, pipelines, gas, water, and electricity distribution systems in Ukraine, the South Caucasus, and Central Asia, and becoming a primary investor in and trade partner of those states. In a way, the EEU project is a product of those discussions, a seemingly golden mean between a military solution and the complete abandonment of the idea of empire. Moscow’s envisioned liberal empire would be much looser than the Soviet Union was, but would nevertheless be tightly controlled insofar as Moscow would not allow neighboring states to decide on their own which military or economic bloc to choose. In other words, Russia pursues a concept of “limited sovereignty” for its neighborhood. While many still think that under the present Russian leadership, fundamentally new developments have taken shape in Russia’s foreign policy, there are strong indications that “multipolarism”, the pivot to Asia, the building of a liberal empire, and the end of Russia’s Eurocentric foreign policy, can be traced back at least as far as the 1990s. Putin was the facilitator of geopolitical developments that were developing over decades. Emil Avdaliani is a professor at European University and the Director of Middle East Studies at Georgian think-tank, Geocase.
BUSINESS
GEORGIA TODAY JANUARY 21 - 27, 2022
7
A Free Trade Agreement: Much More than a Law Order, Much More than Just Trade. Part II BY VICTOR KIPIANI, GEOCASE CHAIRMAN
T
he data of the total trade turnover of member countries of an agreement, both in terms of free trade as well as beyond its framework, is one thing, and the other is the data of the trade turnover accumulated on the basis of such an agreement. In the latter case, it is significantly less and only corresponds to around 30% of the first… At a glance, such a gap might even be surprising, but it has many explanations. One point is that a significant amount of trade of goods within a trade regime is already made possible through the status of so-called 'most favored nations' (when tariff rates are minimal or even equal to zero). The second point is that many countries free the goods they must import in order to produce their own goods for export. Further points to be considered are the frequent practice of excluding high-tariff export goods from a free trade agreement; the popularity and speedy growth of electronic commerce (e-commerce), especially considering the specificities of the pandemic and post-pandemic periods (in which case it is worth noting that e-commerce is practically freed from taxes under the WTO's 2006 agreement on information technologies); and, finally, that the direct or indirect expenses linked to advantageous administration granted by an agreement could push a producer to reject resorting to a free trade agreement.
AND THAT… …the effect of a free trade agreements on attracting investment is not straightforward either. It is certain that they have a particular but not decisive role in this process. In reality, meeting other much more essential requirements supports the investment environment. In addition, there is the assumption that the effect of a free trade agreement is mostly absorbed by bilateral investment agreements oriented towards investment protection… The correlation between different legal instruments or economic structure in a country’s economic development is the subject of discussions. Nor do we agree that any of them should be given a more than acceptable role. It is also a fact that the even and inclusive growth of a national economic model is conditioned by the correct selection and support of various setups and instruments. Despite this dilemma, it is obviously necessary to mention the practical aid which a free trade agreement (when used correctly) contributes to the integration of national production into global production. It is also worth mentioning the use of such agreements as a conduit for transfer of a modern knowledge and experience— the latter function offering additional practical benefits during the pandemic and post-pandemic periods when forming new global supply chains as well as showing us the contours of the rapprochement of the Georgian economic system to an emerging configuration of that very global supply chains.
THE NON-ECONOMIC SIDE OF THE AGREEMENT As mentioned, the economic advantages of free trade agreements are sometimes questioned. But in those countries where these advantages appear to be real, they
Image source: startupdonut.co.uk
must be turned into tangible benefits. Adjusting such a complex instrument to one’s needs, besides proper economic modelling or appropriate infrastructure, also requires meeting basic and necessary conditions. Some of these, which in our opinion are the most essential, we have already mentioned above. When speaking of free trade agreements, it is practically impossible to avoid their non-economic and so-called political side. Signing such agreements is often dictated by political assumptions and reflects developments in foreign or security policies. This characteristic is clearly visible, say, in a way in which the United States perceives free trade agreements. For us Georgians, properly analysing the U.S. perceptions is even more important if we consider our clearly stated desire to sign such an agreement with our main strategic partner, particularly as a close and multidimensional co-operation between our two countries directly requires and conditions the existence of a free trade agreement. It is obvious that in the arsenal of U.S. foreign policy, free trade agreements broadly pursue a foreign political aims rather than trade ones, as is proven by the list of countries with which the United States has signed such agreements. To mention only a few in order to strengthen this above stated assumption: Israel and Jordan, Morocco, Bahrain and so on. It is a fact that U.S. interests in various countries or regions are far greater than trade alone. It is equally true that practically any such agreement has several aims, the most important of which remains U.S. foreign policy towards specific parties. We, therefore, believe that the trade agreement between Georgia and the United States should mostly be mostly upon bilateral foreign and safety interests. This would have been the most proper, rational and honest (if you like) approach to the issue.
Here we present a few assumptions linked to the Georgian-American process and free trade agreement: we will mention once again that such an agreement is a necessary link in the chain of longstanding bilateral relations, and would naturally add itself to the other fundamental documents of this partnership— including the US-Georgia Strategic Partnership Charter, which bears a 'constitutional' meaning. In the meantime, such a free trade agreement will become a further example of demonstrating an equilibrium between large and small economies, which is not an easy task to accomplish. This is the key reason of believing that a free trade agreement between Georgia and the United States should mostly be dedicated to trade policy and not to a guaranteed trade turnover, the later seem to be inappropriate due to various reasons. In a few words, in that document the respective parties should be united by their 'narrow corporate-national' interest. For the United States of America, this would mostly be a further strong demonstration of standing next to Georgia, both via security and defence agenda, as well in support for Georgia’s economic self-sufficiency by reducing its dependence on foreign aid (including that by the United States). As for Tbilisi, of course, alongside general political aims, the major benefit would be improving access to the highincome market of the United States. We will repeat that widening access of the existing format in such a way would be a relatively delicate process, considering the specificities of the two economies and their different scales. Meanwhile, an increase in healthy and bilateral interest of the both sides of an aisle could further encourage the Georgian government—and this time by virtue of a free trade agreement—to carry out internal reforms in response to international obligations and standards. In addition to all the above, we must by all means
point out to additional political and moral significance of such a high-level agreement in view of the continued occupation of Georgian territories, occasional embargoes of one kind or another as well as never-ending threat of economic blockade. Moreover, a free trade agreement would become an additional test for the Georgian-American partnership since enacting an agreement requires equal support of both the executive and the legislative branches in the States. Accordingly, a free trade agreement also brings us to the question of a required degree of bicameral and bipartisan support for Georgia, that being a very must condition for a new level of strategic and political partnership with the United States. An extra fallout to consider is that, by having US-Georgia free trade agreement, a good example could be provided for emergence of a regional trade block - something, as we appreciate, albeit of a distant future albeit and surely of much more complex challenge.
IN FUTURE Of course, any new free agreement with new partners offers some further opportunities for Georgia's integration with the European, Euro-Atlantic and global economic structures. As was already mentioned here, the process not only serves economic purposes but also addresses a much wider agenda—particularly as bilateral or multilateral trade unions with a regional twist remain a dominant trend in this regard against the background of systemic problems that the World Trade Organization is currently facing. At the same time, we wish to underline one of the main messages of this piece of article: access to new geographic markets through free trade and offering our own economic space in return must not be limited to the senseless ritual of respect for international protocol, as this could obviously not contribute to political
pride either. An objective analysis of every agreement is therefore vital, and any free trade agreement must be scrutinised by subjecting it to a so-called 'Georgian stress test'. For a proper evaluation, that very 'stress test' would require listing all directly or indirectly linked factors as well as respective ways and venues for implementation; identifying how any such agreement could improve real rapprochement. In course of a political and legal decision-making, a very thorough and objective analysis is to help with getting a right answer the principal question: having a clear understanding on extent to which this future agreement would support a real development of Georgia's national economy by organically and not falsely or harmfully integrating it into the international economic system. Ideally, a free trade agreement with Georgia as the party is to facilitate with: (1) achieving economic growth; (2) improving business environment; (3) stimulating direct investments; (4) further optimising government expenses; and (5) upgrading modern knowledge and access to technologies and knowhow. Obviously, in terms of overcoming economic challenges, protectionism would be the worst 'outcome', particularly for a national economy with scarce and insufficient resources and critical need of linking with the wider world for its national development. A need which is so certain and undeniable. However, what such necessity also entails is that any similar connection should be analysed and based upon a proper and impartial evaluation of long-term results, and that expectations in terms of development must be realistic rather than simply satisfying current circumstances and an arrogant political or nationalistic ego. This short article - and its critical and equally disputable remarks and assumptions - only seeks to serve as a reminder to complexity of the task.
8
BUSINESS
GEORGIA TODAY
JANUARY 21 - 27, 2022
Carrefour Marks its 10th Anniversary in Georgia
T
he leading retailer is celebrating the occasion with its “10 Years, 10 Days, 10 Brands” campaign which is rewarding loyal custom-
ers with special prizes Carrefour — owned and operated by Majid Al Futtiam in Georgia — is celebrating this year its 10th anniversary of serving Georgian communities!
The first Carrefour hypermarket was opened in Tbilisi Mall in 2012 and since then, the brand has provided its customers with daily unrivalled international shopping experiences, accessible prices, and the highest quality of fresh products. Carrefour provides locals with access to more than 40,000 food and non-food products, which reflects its continuous effort to provide customers with multiple options to choose from. It has become a tradition in Georgia to celebrate Carrefour’s anniversary by treating customers with special surprises to express gratitude for their trust and loyalty. This year is no different, as customers will be welcomed at every Carrefour Hypermarket and supermarket across the country to celebrate. This time, the French brand offers loyal customers a 10-day raffle and an opportunity to win numerous prizes from 10 international brands. These 10 brands are: Fujifilm, Ilitek, Tolsen, L'oreal, Eveline, Henkel, Red Bull, Weinsteiner, Unilever, and Mondelez. Loyal customers of Carrefour now have an opportunity to own those wonderful prizes from the leading brands! The grand raffle at Carrefour supermarkets and hypermarkets will start on January 20 and last until January 30. The raffle will be held through Wheels
of Fortune that will be arranged in all supermarkets and hypermarkets of Carrefour. The Wheels of Fortune will be spun daily, several times a day, to reveal the lucky winners, who will get prizes at cash counters. Participation in the raffle is very sim-
ple and easy: all customers have to do is to shop at Carrefour branches! Don’t miss this opportunity - visit your neighborhood Carrefour supermarket or hypermarket and be rewarded with products of distinguished international brands!
New Regulation of Virtual Assets in Ukraine and address uncertainty with regards to their concept and legal status.
SCOPE OF THE LAW
Image source: news247plus.com
BY THE MG LAW OFFICE TEAM
I
n recent years, the virtual asset field has continuously evolved and now includes a range of new products and services, business models, and activities and interactions, including virtual-to-virtual asset transactions. Jurisdictions have been trying to keep up with the fast pace of development and adequately respond to the emergence of such services and products on the market. Regulation of virtual assets in Ukraine as well as in most of the jurisdictions has been uncertain. In order to clarify and regulate the legal status of ‘Virtual Assets’ and protect their owners, the Ukrainian Parliament adopted Draft Law No. 3637 on Virtual Assets (the Law) almost unanimously on 8 September 2021, which is submitted for signature to the President of Ukraine. The Law will enter into force simultaneously with the relevant amendments to the Tax Code of Ukraine addressing the taxation of transactions with virtual assets. Interestingly, the Law does not mention “Cryptocurrency” but defines “Virtual Assets” as a set of data in electronic form that has value and that exists in the system of circulation of virtual assets (the Virtual Assets). This definition includes Cryptocurrency as well as other types of Virtual Assets. It has been a disclosed aim to develop Ukraine’s digital economy and create
“legal innovative market for virtual assets” as a selling point for foreign direct investment in the country. Adoption of the new Law is a major step and a platform for more reforms towards this aim since it legalizes Virtual Assets for circulation in civil relations and sets groundwork regulations in this field. While the practical impact of the Law is yet to be seen and detailed regulations are yet to be introduced, it is undoubtable that this makes Ukraine one of the first countries to have dedicated legislation regulating the market of Virtual Assets. The proposed Ukrainian legal framework may be of particular interest for the Georgian market as well, where this field is not yet specifically regulated. While the Virtual Assets were not illegal in Ukraine, state authorities often took a combative stance towards owners and service providers of the Virtual Assets. The National Bank of Ukraine stated that it considered Bitcoin a “high risk factor” and “a money substitute that has no real value, and cannot be used by individuals and legal entities in Ukraine as a mean of payment”. It has also been reported by the Ukrainian media that authorities often labelled crypto trading companies as a “scam” and raided business in this field, “often confiscating expensive equipment without any grounds.” Furthermore, the Ukrainian population could not defend their rights related to cryptocurrency in court in the event of a scam or a fraud. The Law is designed to legalize and regulate the Virtual Assets in Ukraine
The Law applies to various services and transactions, including: • services related to the circulation of the Virtual Assets, if the subjects of such legal relations have a registered location or permanent representation on the territory of Ukraine; • Virtual Asset transactions if the parties have determined the Law of Ukraine to be applied to the deal; • Virtual Asset transactions if both parties are residents of Ukraine or if the Virtual Asset holder is a resident of Ukraine.
LEGAL STATUS OF VIRTUAL ASSETS According to the Law, the Virtual Assets are not treated as means of payment and cannot be exchanged for property (goods) or works (services), but as a form of intangible property. Goods and services can only be purchased with Ukrainian Hryvnia, the national currency of Ukraine. Therefore, the new legislation in Ukraine does not regard cryptocurrency as a legal tender, but merely legalizes it for circulation in civil relations. One of the main achievements of the Law is that it gives clarity to some of the important terms that have never been explained or codified, such as the ‘virtual asset wallet’ and the ‘virtual asset key’. This is an important guideline for policies and comprehensive regulations are expected to be adopted on this matter.
TYPES OF VIRTUAL ASSETS The Law differentiates between two types of Virtual Assets: secured and unsecured Virtual Assets. Secured Virtual Asset is an asset that certifies property rights, in particular, the right to claim other objects of civil rights. A Virtual Asset can be secured by fiat currency, securities or any type of offline asset. One example of secured Virtual Assets is a stable coin like USDT coin which holds a stable value of 1 USD and is secured by different means such as cash, cash equivalents and other assets and receivables.
In contrast, unsecured Virtual Assets do not certify any property or non-property rights. Examples of unsecured Virtual Assets are Bitcoin and Non-Fungible Tokens (NFTs). Secured Virtual Assets are subject to additional regulations: • The circulation of a secured Virtual Asset is subject to the same restrictions that apply to the underlying civil rights object by which the Virtual Asset is secured; and • The alienation of a secured Virtual Asset from civil rights object it is secured by is not allowed if the object is under private or public encumbrance or is withdrawn from civil circulation.
OWNERSHIP OF VIRTUAL ASSETS The Law defines that the holder of the virtual asset key (the VA Key) is the owner of such virtual asset. The VA Key is defined as a set of technical means implemented in the system of ensuring the circulation of virtual assets that allow controlling a virtual asset. Therefore, possession of a set of technical means is definitive in establishing the ownership of Virtual Assets. There are three exceptions to this rule. The holder of the VA Key is not considered to be an owner of the Virtual Asset if: • the VA Key or the Virtual Asset is stored by a third party in accordance with the terms of the agreement between the custodian and the owner of this Virtual Asset; • the Virtual Asset has been transferred for storage to any person in accordance with the Law or a court decision that has entered into force; or • the VA Key was acquired by the person illegally. The Virtual Asset market participants have rights to freely implement transaction, receive full information from providers of Virtual Asset-related services, have their personal data protected, protect their rights relating to the Virtual Assets, independently determine and set the value of Virtual Assets, they can be relied upon for opening bank accounts, etc. The Virtual Asset market participants also have obligations to act in good faith, comply with the requirements of the Law and
the laws of Ukraine and provide necessary information to relevant state bodies. Therefore, the Law will allow courts to protect individuals and businesses in disputes related to Virtual Assets, which has not been the case before.
SERVICES RELATED TO THE CIRCULATION OF VIRTUAL ASSETS The Law permits providing services related to the circulation of Virtual Assets. However, the providers can only be legal entities. The state shall issue permits to such service providers. There are 4 types of services that can be provided: • Storing or administering Virtual Assets or the VA Keys; • exchange of Virtual Assets; • transfer of Virtual Assets; and • providing intermediary services related to Virtual Assets. Detailed requirements for obtaining permits are yet to be defined. However, the Law prescribes basic requirements mainly related to reputation of owners and executives of the service providers in accordance with the legislation on prevention of money laundering, terrorism financing and financing of proliferation of weaponsofmassdestruction.Otherrequirements include disclosure of relevant information to state authorities and setting up appropriate internal procedures of monitoring and other activities. Permits shall be issued by the central executive body of Ukraine that implements the state policy in the field of virtual assets circulation (the Central Executive Body). Information on the issuance, reissue, revocation of the permit for the provision of services related to the circulation of Virtual Assets is entered by the Central Executive Body to the State Register of Service Providers (the Register). Service providers are obliged to notify these bodies about any changes in relevant information. Both the Register and the Central Executive Body shall be created within 6 months from the date of publication of the Law. The Law also prescribes financial sanctions for the Central Executive Body to impose on service providers in case of finding a violation.
BUSINESS
GEORGIA TODAY JANUARY 21 - 27, 2022
9
Hebashi Holding and A New Alliance to Launch a New Currency that Fights Money Laundering
H
ebashi Holding Group and Innovation Company has launched the Futira crypto currency, one that will radically change the balance of digital currencies and an invention of Egyptian scientist Dr. Hatem Zaghloul. A person well-known in High Technology, Dr. Hatim Zaghloul, the CEO and founder of Futira Ltd LLC, Futira S.r.o. and Innovation, is recognized as a visionary leader in the international hi-tech community. In 1992 and 1995, he invented, together with Dr. Michel Fattouche WOFDM and MCDSSS, the basis for many wireless communications standards, including the WiMAX and LTE standards, the IEEE802.11a, g, n, ac standards, and the speed in 3G. Dr. Zaghloul has co-founded many companies, including Wi-LAN Inc., Cell-Loc Inc. Wi-LAN and Cell-Loc were the top two performers on the Toronto Stock Exchange (TSE) in 2000. Futira Ltd LLC of Georgia and Futira s.r.o. were incorporated in November 2021 to issue a token and a coin. The smart contract for the token was deployed on the Tron chain on January 1, 2022. “We chose the Tron platform because of its speed and low cost compared to a platform such as Ethereum, for example, which thus lowers the cost of transferring for investors in Futira,” Dr. Zaghloul noted. “We plan to issue the Futira Coin within the first six months of 2022.” The Futira Coin will be on the Futira Chain, a private and permissioned blockchain that will not be anonymous. On February 25, it will launch its digital currency “Futira”. What distinguishes the Futira coin is that it serves a vital and humanitarian project managed by well-known businessmen and investors, the proceeds from which will be invested in building fourth generation communication networks with the aim of providing Internet service in poor countries in Africa, where more than 900 million people do not have the opportunity to connect to the Internet because of the high cost of the
necessary infrastructure. “We aim to support this infrastructure through the Futira coin, which will allow it to be built through our previous technologies at a cost not exceeding 1/10 of the cost of traditional networks,” Dr. Zaghloul added. This will be achieved as follows: 1) Using higher 4G towers to reach close to the maximum range of the 4G standard (around 30km). 2) Using mesh Wi-Fi to cover the gaps resulting from the high towers as well as for the denser population areas. 3) Using blockchain to control the authentication and authorization of users. Inovatian Inc, which was also founded by Dr. Zaghloul, will manage the network with funding from the Futira coin. Once the network is built, it will be the only means of having credit on the network. This ensures continuous demand for the coin. The average user will be buying credit on the network at a rate he understands in his local Fiat currency, but the credit will be converted to Futira Coin in the system. Futira coin will be a means of trading on the telecommunications network, as users in the targeted countries will be able to purchase Futira coin through distributors there and put it in the company's digital wallet for use in obtaining various communication services. The user will not be able to get his money back, but he will be able to transfer Futira coin to other users. It will become a nation known for its mechanical advance in mobile innovations within the future. Nowadays, Georgia is known as an innovative advanced nation, as well as for the ease of doing commerce with moo tax collection expenses compared with other nations. These companies contribute in innovations and high tech and have already begun their business operations in the country. Today, Georgia is within the consideration outline once again: Wi-Fi speed communication innovator Dr. Hatim Zaghloul came to Georgia in order to form an IT venture – which will become a long term example of portable administrators worldwide.
Warsaw Convention Report: States Should Effectively Apply Corporate Liability to Money Laundering Offences
T
he Conference of the Parties of the Council of Europe’s Warsaw Convention has called on its states parties to apply corporate liability to money laundering offences effectively. In a report released on January 20, the Conference of the Parties of Convention on Laundering, Search, Seizure and Confiscation of the Proceeds from Crime and on the Financing of Terrorism, also known as the “Warsaw Convention“, evaluates the extent to which 36 states have legislative or other measures in place to ensure that legal persons can be held liable for money laundering offences when they are committed on their behalf and for their benefit. The liability of legal persons can be particularly valuable for the effective fight against money laundering since criminals often use corporations, charities and businesses to launder their illicit gains. Through sophisticated money laundering schemes, they are frequently able to avoid any liability by disguising
Image Source: coe.int
their involvement in crime and relying on the weakness of the systems of sanctioning legal persons and confiscating their illicit gains. The report specifically assesses how states parties to the treaty implement the provisions of Article 10 of the treaty, which requires them to establish corporate legal liability in their domestic legislation, including when a natural person is involved as an accessory or instigator.
The report concludes that seventeen countries have fully transposed all the provisions of Article 10: Azerbaijan, Cyprus, Croatia, Georgia, Greece, Hungary, Italy, Latvia, Lithuania, Malta, Republic of Moldova, Romania, Portugal, San Marino, Serbia, Slovak Republic and Sweden. 35 of 36 states parties have introduced liability of legal person of money laundering offences in their legislation, as
required by paragraph 1 of Article 10, mostly through general provisions of their criminal codes. However, the transposition into domestic legislation differs considerably among states. Eight out of the 36 state parties have not yet established the liability of legal persons for an offence committed by a natural person acting as an accessory or instigator. Twenty-two countries have complied with the provisions of Article 10 (2), which requires states parties to transpose the liability of the legal person for a money laundering offence committed due to the lack of supervision or control by a natural person who holds a leading position, such as a manager. Seven states have transposed this requirement partially, and eight states have not implemented it yet or have to a very limited extent. The Conference of the Parties issues several general recommendations to the states parties aimed at enhancing their compliance with Article 10 of the treaty as well as country-specific recommendations. It encourages them to ensure
that there are corporate liability mechanisms in place that judicial and law enforcement authorities can use in money laundering cases. *** The Council of Europe´s Convention on Laundering, Search, Seizure and Confiscation of the Proceeds from Crime and on the Financing of Terrorism (CETS no. 198), opened for signature in Warsaw in 2005, is the first international treaty covering both the prevention and the control of money laundering and the financing of terrorism. It is the only international treaty that gives national authorities the power to halt suspicious transactions at the earliest stage to prevent their movement through the financial system. In addition, specialised financial intelligence units of member states must stop such transactions whenever requested by a financial intelligence unit of another state party. The Conference of the Parties monitors States Parties’ compliance with the convention.
10
SOCIETY
GEORGIA TODAY
JANUARY 21 - 27, 2022
Garage Fire: Etseri, Svaneti BLOG BY TONY HANMER
I
didn’t have the heart for a witty or word-playing title for my article this time. Helluva way to start the New Year, but here we are. We sometimes get drunk village men knocking at the door at midnight or so looking to buy cigarettes from the shop (at least we don’t sell alcohol). When we ignore them, they phone, so, as soon as the knocking starts, we switch our phones down or off. The nights of January 14 and 15 were in this vein, except that the latter added a phone call from one of the village ladies, which is unusual at this hour, so my wife answered it. “Car, fire!” was all she understood. The knocking continued, more urgently, with some shouting and whistling, not the typical style. So I put on a dressing gown and some boots and went outside. More yells, now from further away, and I could see smoke and a glow from inside the garage. It must be a fire… I felt the steel personal door: if a door is hot, you don’t open it, because the fire on the other side is big and you’ll instantly add oxygen to feed it. The door was only warm, so I risked opening it, using the key for the padlock, which I always lock at night. Billowing smoke inside, but I couldn’t see where the fire was. Knowing that most fire deaths are from smoke inhalation, I realized I couldn’t risk going all the way to the big car doors, which only open from inside, and trying to get the 4x4 out: anything in there could explode at any time, plus all the smoke from plastics and so on was waiting for me. I shut the door again, told my seven young Christian village-volunteer guests to get their passports and get out in case the house caught, summoned a neighbor in person, and then went back into the house to gather a few valuables myself before fleeing. My wife had already called 112 for the fire; the guests, she and I left for the neighbors. I deposited my two small backpacks- laptop, hard drives, wallet, passports, keys -with them and returned to the scene. By now, a few more neighbors had
gathered, some with shovels to try to attack it with snow. Although the two windows were gone by now, we had to keep the two sets of doors shut to contain the fire; these doors eventually began glowing orange from the intense heat. The police came first, followed (an hour and a half after we called 112) by the fire engine from Mestia. This was able to draw water from the stream near the house, and then pump it into its hoses; it doesn’t keep its own tank full in winter, having no warm place to park and stop that water from freezing. God help anyone who has a house fire far from a water source in the 5-6 cold months… Almost all the village men gathered were drunk, and one had to be restrained from wanting to rush into the garage to try to get the car out; others responded with jeers when we told them to move
farther away due to explosion risks, so we left them to it. Eventually, the roof of wood beams and corrugated galvanized steel sheets came down. The cement block walls held. The firemen continued. There were various containers of gasoline, diesel and paint, plenty of plastics, two gas bottles, and a generator and my car both with gasoline tanks, so, plenty for the conflagration to feed on. We stood in shock, watching it play out. The police took a statement from me about possible causes, and whether I knew anyone with a grudge against me. No-one and nothing specific, I said. They and the firemen eventually left, but the latter came back twice to check on things, and my wife rebuked them as both times the fire had re-started in one area and I was trying to put it out with buckets of water. “We were freezing…” they said. As if there wasn’t a warm house waiting right here! She was right. The guests returned, we were allowed to turn the house electricity back on, and we all turned in to attempt a few hours of sleep. Next morning’s light showed the full extent of the blaze, still steaming and smoking a bit. The 4x4 sat, burnt right out, on its wheel disks. The inside walls were black… except the one where electricity entered, so, it seems unlikely that this was the cause, common though it generally is with these things. In the afternoon, the inspectors came up from Zugdidi to poke, prod, take photos and ask lots of questions. No, I had left not a thing running from garage electricity, except for a single radiator outside, against the wall of the house where my incoming water freezes unreachably. This radiator was on minimum power and was ruled out as a cause. Mice (who have occasionally chewed paper in the car’s glove compartment) working on electrical wires in the car? Arson? All possibilities had to be considered. Yesterday, we were requested at Becho police station, the nearest one, some 12 km away; one kind neighbor who had already offered any help drove us there. They took our statements into the computer. But before the printer could work and we could sign the document… the power went out. The police station’s generator uses 5 GEL of fuel an hour, and they didn’t have any fuel in it at that time anyway, so we mused in the twilight about wonderful Svaneti infrastructure and its backward steps. We left, suggesting that for the signing and any further questions, the police come to us. My team of volunteers were hugely helpful in cleaning up, bless them. This involved taking everything movable out of the garage and sorting it. Roof sheets,
remaining half-burnt wood beams, salvageable tools and miscellanea, scrap metal, and garbage. All but the garbage went into the barn, and we took the garbage to the nearby dumpsters in sacks. We all got filthy, but neighbors had helped me reconnect the water (which used to enter the house through the garage) before it could freeze, so we had that, and electricity to heat it for showers. The whole experience bonded us like nothing else could. The last urgent thing was to cover the top layer of cement blocks with weighted down plastic, to stop snow from settling on them, melting and refreezing eventually, and causing damage. That done, we are resting from our labors, punctuated by the occasional stab of remembering something else we lost in the fire. So many power tools, the workbench, and on and
on. Tiny things which had survived gave some gladness: a roofing hammer, the wire baobab Christmas tree which my stepsister gave us as we were leaving her family from a Zimbabwe holiday with them some years ago. We are also so grateful that we and the house all came through it physically unscathed: this could have been SO much worse. The losses we will take care of one thing at a time. God knows. 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
CULTURE
GEORGIA TODAY JANUARY 21 - 27, 2022
11
36 Employees of Cultural Heritage Protection Agency Fired after Reorganization BY ANA DUMBADZE
T
hirty-six employees of the National Agency for the Protection of Cultural Heritage have lost their jobs as a result of a reorganiza-
tion. “In order to get the optimal structure of the agency, positions that were no longer necessary were removed. As a result, instead of 17 services, 11 services continue to function in the agency and the number of employees has been reduced from 381 to 345,” reads the statement. In addition, 17 positions of various profile “masters” that did not exist before have been added to the list of staff of the agency. According to the agency, the idea of creating a registry of masters belongs to the Minister of Culture Tea Tsulukiani and comes as a result of a shortage of qualified staff. In particular, according to a study by the Ministry of Culture, in many cases, the problems with cultural heritage sites are “caused by a shortage of qualified staff or a lack of professionalism of the existing staff.” In addition, the Intangible Cultural Heritage Service and the Laboratory for the Fixation of Monuments and the Conservation and Restoration of Cultural Property was established as a separate structural unit. The agency has also set up mobile teams of inspectors to monitor the condition of cultural heritage sites in the regions. The agency said the changes “were aimed at achieving an effective and timely implementation of the functions
assigned to the agency, as well as overcoming the serious challenges facing the agency.” The reorganization at the National Agency for the Protection of Cultural Heritage has been ongoing since November 25, 2021. A new staff schedule came into force on January 15 of this year. Activists Union Sakdrisi Committee (Movement for Cultural Heritage) has responded to the current developments at the Agency, publicly appealing to President Salome Zurabishvili to use all the levers at her disposal and to get involved in the process to study the issue. “We would like to respond to the recent alarming developments at the National Agency for the Protection of Cultural Heritage and the National Museum. Georgia’s cultural heritage has been facing great challenges for many years, but the National Agency for Cultural Heritage Preservation has not been able to meet these challenges due to a lack of finances and staff. Against this background, the implementation of reforms that would have strengthened the institution was welcome, however, the latest developments at the agency point to another trend. “Instead of eliminating the shortcomings in the work of the National Agency for the Protection of Cultural Heritage, starting with the introduction of effective management mechanisms of the agency, we are facing a process of mass dismissal of employees. “According to our information, up to 30 people had left the agency by December 2021 due to problems with the new head of the Ministry of Culture, and in December, the agency itself fired more than 30 employees, with another 30 employees on January 15 this year.
Unfortunately, the National Agency for Cultural Heritage, as well as the National Museum, are being forcibly left by people whose qualifications have never been questioned, not only in Georgia but also at the international level. “On January 15, the National Agency for the Protection of Cultural Heritage said in a statement that at the initiative of the Minister, the new staff of the agency would be made up of hired masters (craftsmen). Of course, the presence of qualified craftsmen is very important, but here a simple question arises – will craftsmen be the administrative link of the main institution of cultural heritage? “The National Agency for the Protection of Cultural Heritage, whose sole responsibility is to care for tangible and intangible heritage, needs architectsrestorers, art historians, archaeologists,
engineers and others in addition to the craftsmen. It is therefore incomprehensible to talk about the scarcity of qualified staff on the one hand and to ask for professional staff from the agency on the other. “Unfortunately, due to the ongoing personnel battles, the most important issues remain beyond attention: What is the situation in Gelati? Why did the important rehabilitation projects of Mutso, Ateni Sioni Church, Ujarma, Kumurdo and other monuments stop? “We also do not know what the Regional Inspectorate for the Protection of Cultural Heritage did last year. “In addition to the above issues, the leadership of the Ministry of Culture avoids healthy and case-oriented communication with non-governmental organizations and groups of volunteer activists working in the field of cultural heritage. We would like to add that it
is completely incomprehensible and unacceptable for us why academic circles are silent when they know best what serious consequences this process can have for the cultural heritage itself. “We call on the Georgian Academy of Sciences, scientists and specialists in the field to publicly state their position on current events and to protect their colleagues! “The Sakdrisi Committee publicly appeals to the President of Georgia – Salome Zurabishvili, who is really distinguished by her patronage of cultural heritage – to use all the levers at her disposal and to get involved in the process to study the issue,” reads the statement. Authorities, including the Minister of Culture, have not yet publicly responded to the issue of mass dismissal of employees from the Cultural Heritage Protection Agency.
Georgia Exports 107 mln Bottles of Wine in 2021 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 thousand 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. According to them, 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.
BY ANA DUMBADZE
R
evenue 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 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, the brandy exports earned $20 million. In 2021, 1 million bottles (0.5 l) of chacha were exported; the increase in exports
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