Issue #1294

Issue no: 1294

• APRIL 30 - MAY 6, 2021 • PUBLISHED WEEKLY

PRICE: GEL 2.50

In this week’s issue...

Corona Updates: This Week’s Gains and Losses NEWS PAGE 2

About the Role of Nonconventional Solutions during Extraordinary Times: A Case for Achieving a Tangible Result. Part 1 POLITICS PAGE 4

The Czech’s vs the Russians: Two Experts on the Expected Fallout POLITICS PAGE 6

FOCUS

ON PARLIAMENT

The Opposition enters Parliament, but the conflict is far from over.

PAGE 3

Dighomi Meadows at the Frontline of an Ecological Crisis

BY ANA DUMBADZE

Winner of the U.S. Investors Award, Angel Investor to Hold a Masterclass at BTU BUSINESS PAGE 8

Order Your Next Meal from ‘Vis Kitchen,’ the New Rockstars in the Cloud BUSINESS PAGE 9

Back to Spring: Etseri, Svaneti SOCIETY PAGE 10

O

n April 28, the Dighomi Meadows Neighborhood Initiative hosted an English-language open-air environmental event at the epicenter of the Dighomi Meadows ecological disaster, which included a walking tour and discussion about the area.

The event aimed to show the severe condition of the municipal recreation area of Dighomi Meadows to the representatives of embassies, international organizations, local political and nongovernmental organizations interested in the problem, and to discuss concrete steps to solve the problem.

The event was organized with the financial support of The Open Society Foundation in the frames of the project “Solutions to the ecological crisis of Dighomi meadows”.

Dighomi Meadows is a unique public space located in Tbilisi, where the natural riverbed of the Mtkvari is decorated with special flora and fauna characteristic of the floodplain.

Along with the distinctive landscape, due to its strategic location near the largest populated areas of the city, the area of Dighomi Meadows has a great potential for development as a sportsrecreational space of urban importance.

Currently, Dighomi Meadows is facing a severe ecological crisis.

In past years, unauthorized quarrying, unsustainable storage and processing of extracted raw materials, and the dumping of construction waste into the quarry and forest area were intensive, resulting in more than 75% of meadow-forest being buried alive in waste.

Continued on page 9

Exclusive Interview with Georgian Artist Salome Chelidze CULTURE PAGE 11 CULTURE PAGE 11 Prepared for Georgia Today Business by

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NEWS

GEORGIA TODAY

APRIL 30 - MAY 6, 2021

Corona Updates: This Week’s Gains and Losses

BY TEAM GT

I

t’s an ongoing tale, however tired we are of hearing about it. COVID19, which first emerged as horrormovie-like rumors in December 2019, is still raging throughout the world, and in Georgia no less. GEORGIA TODAY gives you the latest news on the pandemic below.

INFECTIONS HOME AND ABROAD On Thursday, Georgia reported 1433 new coronavirus cases, 1160 recoveries, and 18 deaths.

29,024 tests in the 24 hours prior revealed that Georgian capital Tbilisi recorded the highest number of COVID-19 cases (904), followed by the Adjara region with 146 cases, and the Samegrelo-Zemo Svaneti region with 99 cases.

The daily test-positivity rate stands at 4.94%. The total number of confirmed cases since the outbreak of COVID-19 is 308,834, among them, 289,976 people have recovered and 4095 died.

Presently, there are 14,763 active cases of infection in the country.

To date, 43,568 Georgians have received a coronavirus vaccine.

The government announced plans to shut down municipal transport (buses, the metro) from May 3 to 12, during the majority of the declared 10-day public holiday, though intercity transport (minibuses, trains, coaches) will be running.

Cemeteries, the “go-to” destination for the majority of families over the Easter weekend, will, like last year, be shut.

The curfew will not be lifted even during the Easter holiday; however, as an exception and in connection with the Easter Liturgy, the restriction on movement will be in force from 23:00 on May 1 until 04:00 on May 2.

The Turkish government this week declared plans for a full lockdown due to the deteriorating epidemic situation in the country.

President Recep Tayyip Erdogan announced that Turkey will be completely closed from April 29 to May 17. During this period, schools will be closed, shops will not open on Sundays, and on other days only for certain hours. Travel between cities will be possible only with special permission. Cafes and restaurants will work only with delivery service, and

supermarkets will be closed on Sundays.

More than 4.6 million people have been infected in Turkey during the epidemic. At the beginning of April, Turkey proudly announced that it had been ranked sixth among countries for the highest number of vaccines. Health Minister Fahrettin Koca said that by April 4, Turkey had administered more than 16.6 million coronavirus vaccine jabs countrywide.

In India, in the 24 hours of April 25-26, more than 349,000 cases of infection were reported, its highest rate during the whole pandemic, largely due to the emergence of a new strain of coronavirus.

The double mutation COVID-19, first observed in India, is a combination of the increasingly common South African and Brazilian strains.

However, the severe situation in India may also be related to pre-election mass rallies and religious holidays. A one-week quarantine has been introduced in the country’s capital, Delhi, where hospitals have already been overwhelmed.

The “Indian strain” has proven dangerous for all age groups. So far, it has not been detected in Georgia.

According to the head of the Georgian National Center for Disease Control, Amiran Gamkrelidze, caution is needed regarding the Indian strain of coronavirus, for which the country has taken appropriate restrictive measures.

“We have to be very careful about the

Indian strain, so Georgia and a number of other countries have imposed appropriate restrictive measures on passengers coming from India. But please do not create a stir. This is a normal mutated strain. It is not yet known in India whether this strain prevails or if it is the same British strain that is circulating everywhere today, including in our country.

It is almost always the British strain, just like in Europe, and all these strains still obey the vaccines that are administered today, more or less effectively,” he said.

THE ONGOING VACCINE PROGRAM Nearly 7000 Georgians have registered for jabs of the Chinese ‘Sinopharm’ vaccine so far, Gamkrelidze noted this week.

At the first stage, 50 thousand people can register.

“There were 6705 reservations made for Sinopharm this morning,” Gamkrelidze said Wednesday. “We have 100 thousand doses that need to be done twice. 50 thousand people can register.

We are discussing how to expand access,” he said.

It was announced Tuesday that all citizens over the age of 18 can be vaccinated with Sinopharm.

Minister of Health Ekaterine Tikaradze noted that there are a number of important studies where Sinopharm has been proven safe for citizens aged 18 to 60.

“Therefore, relying on the international decision, we will give our citizens the

opportunity to be vaccinated with Sinopharm,” she said.

The immunization process with Sinopharm will kick off on May 4. Sinopharm is the third available COVID-19 vaccine for the Georgian population after AstraZeneca and Pfizer.

Vaccination in Georgia started on March 15.

GIFTS FROM AFAR Sinovac, a Chinese vaccine not yet in Georgia, though some trials abroad have suggested efficacy as low as 50%, has the advantage that it can be stored in a standard refrigerator at 2-8 degrees Celsius, like the AstraZeneca vaccine, which is made from a genetically engineered virus that causes the common cold in chimpanzees. In comparison, Moderna's vaccine needs to be stored at -20C and Pfizer's vaccine at -70C. It means that both Sinovac and the Oxford-AstraZeneca vaccine are a lot more useful to developing countries which might not be able to store large amounts of vaccine at such low temperatures.

To help with this dilemma, the US Government gifted Georgia three minus 80-degree refrigerators needed to store vaccines last week. The refrigerators were installed at the National Center for Disease Control.

Deputy Head of the US Mission in Georgia, Rian Harker Harris, stated in an interview with Channel One: “I am happy to hand over three fridges to the

NCDC. This will help Georgia in the process of vaccine preparation and administration, and will improve the NCDC’s system for vaccine storage, cold chain management, and immunization,” he said.

“This donation is part of the US European Command’s more than $1 million assistance to Georgia in the fight against coronavirus. The US Embassy continues to support Georgia in its fight against the pandemic and to help the country improve its healthcare system.”

The Prime Minister of Georgia Irakli Garibashvili stated this week that intense negotiations are underway with vaccine manufacturers and partner countries to mobilize additional doses of the vaccine as soon as possible.

“In a telephone conversation with Albert Bourla, Chairman and CEO of Pfizer, we discussed the issue of delivering an additional million doses of Pfizer,” the PM said. “We talked about the logistical and technical readiness to receive additional doses of Pfizer in Georgia, including the ultra-cold chain system, as well as the vaccination process. I mentioned that the Pfizer vaccine is highly reliable in Georgia. We focused on the National Vaccination Plan, which aims to vaccinate 60% of the population by the end of the year, and the special importance of mobilizing appropriate doses of the vaccine in a timely manner,” his statement reads.

BENEFITS FOR THOSE VACCINATED? Amiran Gamkrelidze said this week that people who take a full course of vaccination may receive certain benefits, including the right to move during the curfew.

“The NCDC intends to take the initiative to support the Coordinating Council in providing benefits to people under restriction. We are working on several points that are internationally practiced, including free movement during the curfew, providing a document to help vaccinated citizens travel abroad, and other initiatives,” he stated.

The NCDC director added that they cannot voice in advance what types of benefits are being discussed, but their aim is that vaccinated people will have more rights than the rest of the population, which should encourage others and increase interest among the population for quick vaccination.

Georgia Marks 30th Anniversary of Armed Forces

BY ANA DUMBADZE

A

pril 30 is the Day of the Georgian Army, when the Georgian Armed Forces celebrate the 30th anniversary of establishment.

On this occasion, a solemn event was held at the base of the Vaziani, IV Mechanized Brigade.

The Prime Minister of Georgia Irakli Garibashvili, President Salome Zurabishvili, the Minister of Defense Juasher Burchuladze and other officials addressed the public at the event.

In his speech, PM Garibashvili noted that the Georgian army is one of the main guarantors of the country’s sovereignty and freedom, and the main symbol for Georgia.

“I would like to congratulate our veterans who serve our homeland with dignity, high professionalism and dedication and who are ready to protect the freedom of our country. I would like to congratulate our proud veterans who proudly and unwaveringly defended the

integrity of our country and its sovereignty. I would like to congratulate our citizens, because the Georgian army is one of the main guarantors of our country’s sovereignty and freedom and the main symbol of our statehood.

“I would like to honor our heroes who fell for the sovereignty and freedom of our country and world peace, our fighters who sacrificed themselves for Georgia. They showed everyone the fighting spirit of a Georgian man and devotion to the homeland. We bow before their heroism. I congratulate and express our gratitude to our wounded warriors who fill us with pride with their unbroken spirit.

“Today symbolizes the patriotism and constant readiness of the Georgian people to defend the independence of our country, the freedom, sovereignty, territorial integrity of our people, and to make our own worthy contribution to strengthening world security,” Garibashvili said.

The first regular military was established in the first Georgian Republic in 1918 and was in existence until after the republic’s overthrow by the invading

Soviet Russian forces in 1921. The modern Georgian military was founded in

accordance with the government decree of 24 April 1991. April 30, 1991, was the

day the first conscripts were called up for military service.

POLITICS

GEORGIA TODAY APRIL 30 - MAY 6, 2021

3

Rioni Valley Showdown Continues with Renewed Vigor

The protestors. By Michael Godwin/GT

BLOG BY MICHAEL GODWIN

F

or over 180 days, a fluid alliance of locals, environmentalists, and those sympathetic to the region’s preservation have come together to oppose the construction of a large hydroelectric power plant in the northwestern Georgian mountains. This alliance, known by many names but often collectively as the “Guardians of the Rioni Valley,” has brought their case into the public eye with increasing popular support.

Many in the government, and even some in the general public, have brushed off this growing movement as a rabble of “hippies” that are not considering the intricate engineering details and infrastructure benefits. However, upon closer observation and examination, there seems to be far more behind their rhetoric. This opposition filters its complaints into layers that contain ecological, humanitarian, and democratic process concerns.

A recent assessment of the Rioni Valley’s ecosystem showed there has been an almost continuous observation of the area since the late 1930s. With a total length of almost 330 kilometers, the river has been an important feature since preRoman times. Originally having the name of the River Phasis, it continues to be the longest river in modern Georgia.

The proposed construction project is estimated to affect 8.5 to 9 kilometers of the river, and along this stretch of territory the width of the affected area ranges

from 50 meters to 350 meters from the river. This land includes 58 hectares of agricultural land, some of which is used to cultivate the famous Tvishi variety of Georgian wine. The hundreds of flora varieties range from common species found all over the country, to eight species labeled as Vulnerable by the International Union for Conservation of Nature (IUCN).

In addition to these flora species at risk, the project area also encompasses hundreds of fauna inhabitants. Four protected species of animals make their home in the project valley; Brown bear (Ursus arctos), lynx (Lynx lynx), otter (Lutra lutra) and Caucasian squirrel (Sciurus anomalus). Their habitats and livelihoods are threatened by the construction and rising river levels as a result of the completed project. In addition, 18 bat species are distributed through the project area and surrounding region, while two endangered bird species also inhabit the valley. Egyptian Vulture and the Steppe Eagle both make homes in the area, as well one protected reptile, the Caucasus Viper. In total, many hectares of land, animals, and local flora stand to be threatened by the project and its side effects.

The Guardians have made their case that the project also affects the people living there. Three whole villages and part of another are being forced to vacate, with residents offered a nominal sum in compensation. This sum is reported to be around 100,000 and 200,000 Georgian Lari.

Many involved with the Guardians

protest have noted that this sum is not enough to purchase a new home in many areas into which they would be relocated.

In addition to this, it is noted that these people, many of whom have lived in these villages for many decades, are not accustomed to living in a city apartment.

The future of their village-specific assets has not been considered, such as livestock, machinery, and accompanying property.

The Guardians also note that many of the residents of these villages have been deceived into believing that their only option was to accept the compensation package and move. According to them, the villagers were coaxed to believe that

the government, through police enforcement, would acquire the land regardless of their disposition on the matter. However, leaders of the movement have said that this is far from the truth, as their movement has gained enough traction to stall the development of the valley.

Proponents of the project take a different approach. Some have noted that the development of hydroelectric power plant projects in Georgia provide a wide range of benefits, not only to the people themselves but also the security and welfare of the nation.

Energy independence is a massive benefit for any nation. Being bonded to another, even an ally, to source energy is a massive burden for both diplomatic leverage but also national security and defense. It’s no secret that Kremlincontrolled oil and gas companies use their leverage in energy to pressure Europe and other regions to bend to their will. This is a serious compromise of global security and could spell longterm doom for NATO and those who stand against Russian aggression.

The project also aims to bring a wide range of jobs and an economic boost to a region of Georgia that is largely underserved. With a high unemployment rate, the area could benefit from skilled and unskilled labor opportunities. This economic boost stands to bring the local economy and standard of living to a new higher level. In addition, the tax revenue generated from all of this development could provide a base for Kutaisi and other municipalities to refurbish and grow.

Recently, a court decided that Turkish construction company Enka did not make an adequate environmental assessment of its HPP’s impact on the region, however, this could only be the beginning of a new battle for the Guardians. It’s unlikely a corporate giant such as Enka will shy away from millions in potential revenue, nor will those in the government who stand to benefit from this project.

Some members of the government and European community have voiced their support for the Guardian movement.

However, the movement has yet to achieve all of their goals, restricted by the police deployment in the area preventing all movement to the construction zone.

While the vigor and enthusiasm is visibly strong on the ground near Gumati, it has yet to be seen if the government will allow the Guardians a seat at the proverbial, and occasionally literal, table.

Leaders of the movement, while colorful in their description of the problems, have summarized their complaints as needing an equal voice with the government and not to be silenced undemocratically.

While Enka still holds the financial majority, it is the voice of the people that can often pull more power. Associated demonstrations across the nation have been organized in solidarity with the Guardian’s movement, and more and more notice is being taken in government circles. While it is true that time will only tell, the traction the movement has gained is starting to have more influence in the higher echelons in the government and the courts.

In total, many hectares of land, animals, and local flora stand to be threatened by the project and its side effects.

Photo by Michael Godwin/GT

Political Roundup of the Week

Image source: rferl.org

BY TEAM GT

E

uropean Council President Charles Michel released a new proposal on April 18, suggesting electoral and justice reforms and offering a pardon for all violations and convictions stemming from the 19-21 June 2019 protests. The ruling team and a part of the opposition parties signed the new agreement presented by Michel on April 19.

Based on the mediators’ document, the persons assessed as political prisoners had to be released within a week after the signing of the agreement between the government and the opposition. In addition, based on Michel’s proposal, early elections should be called in 2022 if the Georgian Dream party gets less than 43% of votes in the local elections.

To date, only the United National Movement and European Georgia parties have

refused to sign the EU Council’s updated compromise document. Yet, Charles Michel said he is convinced that the assumed obligations will be fulfilled.

After a 6-month boycott, opposition parties that had signed the EU-mediated agreement with the ruling Georgian Dream party entered Parliament on April 27 to submit an amnesty bill, which President Salome Zurabishvili had agreed to sign, and to take part in the plenary session of the spring session. United National Movement (UNM) supporters greeted the opposition on arrival at the parliament building with jeering, protesting their “betrayal.”

UNM, one of the biggest opposition forces in the country, is expected to sign the Michel agreement and enter Parliament once their party chairman, Nika Melia, is released from custody. His trial will take place on May 13.

To ease the situation, the European Union proposed to pay the 40,000 GEL bail imposed on Melia. The party chair-

man agreed, but stipulated that the proposed GD amnesty bill be withdrawn.

“Withdraw the amnesty bill, and in this case, I, Nika Melia, take full responsibility to agree to the bail offered by the European Union and leave prison,” he told the opposition parties who had signed the Michel document.

The currently imprisoned UNM Chairman, who stands accused of organizing group violence during anti-government protests in June 2019 (so-called ‘Gavrilov’s Night’), publicly asked the opposition parties “not to take part in this attempt to rewrite history, this ‘amnesty’ for Gavrilov’s Night.”

“We will pardon abuser Melia anyway.

This is our decision,” Irakli Kobakhidze, the Chairman of the Georgian Dream party, told journalists this week, noting that Melia can leave prison whenever he wants.

“We hear that sometimes Melia doesn’t want bail, sometimes doesn’t want amnesty. He can come out any time, but he is choosing not to do so. Whether through bail or amnesty, in both cases, it is up to Melia to decide. He may or may not accept the amnesty law. This possibility is also reflected in the law on amnesty.

“If he does not agree to bail, we will pardon him anyway. This is our decision.

And he can enter parliament if he wishes,” Kobakhidze said.

The GD Chairman added that if the opposition did not support the amnesty

bill, it would be against the agreement which was signed by both sides.

This political week in the country was memorable for yet another unexpected move by the ruling team management: on April 24, Chairman of the Parliament of Georgia Archil Talakvadze resigned.

He will continue his political activity as Vice-Speaker.

Talakvadze noted that after reaching an agreement with the opposition, there was a need for a rotation in the parliamentary majority, which is why he “gave up the speaker seat and moved to the parliament hall.”

Following Talakvadze’s resignation, the Georgian Dream nominated Kakha Kuchava, the former Deputy Speaker, for the position. He was elected as Parliament Speaker on April 27. As a result of a secret ballot, 86 deputies supported Kuchava’s candidacy, while six MPs voted against.

Before the vote, Kuchava addressed the MPs, expressing hope that the rest of the opposition will also enter parliament.

On the same day, as part of Michel’s agreement, the President of Georgia, Salome Zurabishvili, pardoned the convicted Giorgi Rurua, a shareholder of the opposition-minded ‘Main Channel.’

“I welcome the fulfillment of the first stage of the agreement! For my part, I kept my word and signed the pardon act.

Congratulations to Kakha Kuchava on his appointment as the Speaker of the

Parliament. Congratulations to all the MPs who used the mandate given by the people for the first time today and entered Parliament. I wish you all success,” the President stated.

Rurua was arrested on November 18, 2019, for illegal possession and carrying of a firearm, a crime committed under Article 236 (3,4) of the Criminal Code of Georgia.

His release was one of the demands made by the opposition as a precondition to enter Parliament.

He left the penitentiary facility the same day, April 27. After his release from prison, he commented on the amnesty bill and noted that if the victims of June 20 will forgive the accused, he will not oppose the pardon.

“In general, it is important for me that a general national amnesty is announced, it is very important. Now, when the case is not being investigated, what kind of amnesty should we talk about? The key is to conduct an investigation, then the victims will make the appropriate decision whether to forgive or not. After that, if they forgive those accused, I will not oppose a pardon,” Rurua said.

Regarding the possible release of convicted UNM Chairman Nika Melia, Rurua noted that if he "was in Melia’s place, he would accept the bail offered by the EU.” Melia’s trial and the court’s decision regarding his case is expected to have a serious influence on future political developments in Georgia.

4

POLITICS

GEORGIA TODAY

APRIL 30 - MAY 6, 2021

About the Role of Nonconventional Solutions during Extraordinary Times: A Case for Achieving a Tangible Result. Part 1 ANALYSIS BY VICTOR KIPIANI, GEOCASE CHAIRMAIN

T

he revision of modern security systems is causing immediate fundamental changes to international relations. This close relationship is very natural, because any kind of global or regional order is inconceivable between the main participants in these relations, the states, without the formation and regulation of physical security in one way or another. It is also noteworthy that our own security models are evolving and often transforming, which in turn is the result of the changing circumstances in world politics.

One such powerful conjunctural change is related to the geopolitical self-determination of the countries on the dividing line of the Russian Federation and EuroAtlantic unity and the ensuing cataclysms of this process as a result of the collapse of the Soviet Union and the end of the Cold War. It must be said that in this broad picture, it is not only these “buffer countries” that are facing the challenges of self-determination. Georgia's main strategic partner, as well as our other partners, have faced a number of unresolved challenges and unanswered questions. In recent years, the main issue has emerged: How to resolve conflicts between the two major geopolitical camps. What will be the fate of the “buffer zone” and what kind of security configuration will it consider, including our country?

cies. Moreover, instead of resolving these acute crises in the domestic processes, one country or another shifted its focus to the external arena and in this way attempted to stop the further disintegration of the state and society. In any case, the shift of attention has not gone unnoticed: Modern international relations have undergone a considerable devolution, because, instead of consolidating around values, the driving factor in these relations has only been the satisfaction of one's own national interest at the expense of others. Hence, the principle of “zero sum” – which means that a particular entity receives the maximum benefit at the expense of neglecting others – has undergone a new renaissance.

As a result, more or less successfully disguised selfishness in world politics has finally emerged and has become a declared line of international conduct of the state. In this rather peculiar process, we have come to a reality in which the category of values has become a small and ritual appendage of egoism, and the geopolitical teaching of “realism” has become much more realistic.

All this, in turn, necessitated the search for new models of coexistence in the field of security, and the alliances or unions formed according to the specifics of a particular region acquired a much narrower thematic relationship in order to bring more interests together. In a nutshell, time has created the inevitability of experiments with the existing useless approaches to finally say farewell and find a new solution.

AN INTEREST OR A VALUE?

MORE FLEXIBILITY, MORE ESSENCE, MORE FOCUS…

Finding the answer to this question alone cannot be the subject of a theoretical exercise. Finding the right answer is possible only through continuous communication between the Georgian side and its Western allies, and, at the same time, requires continuous monitoring and evaluation of the accents and priorities of international relations. One of the priorities for us is to promote interest in the equation of “interest and values” in contrast to values.

It must be said that the balancing of states around these two categories in the global or regional context is not new and, in fact, begins with the emergence of the state on a national basis. However, the starting point of the recent history of the “struggle” of interest and value with exceptional force and clarity is the beginning of the formation of the modern state after the Second World War. At the same time, the uncertainty and unresolved situation caused by the end of the Cold War further deepened the imbalance in the two-part equation: The dominance of interest in relation to value became apparent, and in some cases virtually irreversible.

We’ve discussed the reasons and nature of such imbalances many times before.

However, in summary, we would like to say that all these reasons are centralized around the main issue – the declining ability of the modern formation of the state to cope with accumulated socioeconomic and socio-political challenges.

As a result of this almost chronic incapability, we’ve experienced a breakdown of internal and external unity, which soon manifested itself in the form of radicalization of thoughts, incompatibility of positions, and extremist tenden-

Western global security during the Cold War was largely based on the axis of the North Atlantic Treaty Organization (NATO). This system continues to operate today; however, with two essential questions that remain unanswered in the current context. First, what is the Alliance's updated functional burden, and second, what is the Alliance's principled approach to possible new geographical expansion. Discussions on both issues are in an active phase, and their urgency is evidenced by the recent NATO summit and the 2030 Strategic Vision document adopted there, which, it must be said, still does not adequately cover current issues for Georgia.

Together with the NATO Multilateral Collective Alliance and in parallel to it, our main strategic ally – the United States – years ago established a second, no less interesting system, which provided thematic-geographical military and security cooperation. A visible example of this approach is the hub-and-spoke model set by the bilateral agreements established with South Korea, Australia, the Philippines, Japan, and Thailand. It must be said that this type of system found its practical purpose in the implementation of George Kennan's “line of containment” against the Soviet Union during the Cold War. However, as already mentioned, over time the nature of the relationship changes and the rules and constructions of security behavior change with it. One such major change is the compact multilateral party alliances that have emerged among narrow-format bilateral agreements and the large alliances (in modern terms – clusters) that offer participating countries along with more explicit functional

The Quadrilateral Security Dialogue, in which the United States, Japan, Australia, and India participate aims to maintain a kind of “status quo” in the Pacific by maximum containment and restraining Chinese expansion. Source: foreignbrief.com

tasks, improved mobility and optimal utilization of resources to achieve a goal.

Not so rarely, such alliances are referred to as a “Small NATO”, although, to some extent, this comparison is still incorrect.

In any case, the above-mentioned process is of practical interest for the Georgian government and specialized and analytical circles. At the same time, studying it and modeling it in our region may help us to overcome the shortcomings of long-established security models or approaches – in some cases, anachronisms – in maximizing the actual support needed for Georgian statehood, not with words but by actions.

In fact, the essence of the mentioned “cluster” (so-called “Small NATO”) system is the matching and overlap of the actual and non-declarative mutual interests of the participating countries. The amplitude of such coherent aspirations can range from selectively highlighted collaborative areas to a variety of tasks.

Hence, it is considered (without idealization here as well) that actually effective security is provided by the “clusters” in which the participating countries naturally unite; and in the post-unification period, the set goals are followed with a rationale understandable to them individually and collectively.

However, to better illustrate the brief description here, we will move on to one more specific precedent.

ALREADY AN EXAMPLE, ALREADY EXISTING EXPERIENCE One such interesting thematic association has been formed in the Pacific Ocean: the Quadrilateral Security Dialogue (QUAD), in which the United States, Japan, Australia, and India participate.

This project is significant to us as it offers very practical material to discuss the topic covered in this article.

The cooperation of the abovementioned countries can be explained for several reasons, however, the most important of which is to maintain a kind of “status quo” in the Pacific (and partly in the Indian Ocean) by maximum containment

and restraining Chinese expansion.

Clearly, this is easier said than done, and among the difficulties is not only the growing Chinese factor in the region, but also the conceptual or tactical differences on a number of issues and approaches between the countries participating in the Quadrilateral Security Dialogue. In general, the process of forming the Dialogue and its further development, as well as the study of related problems, is obviously equally valuable for a better understanding of the model. But, though we do realize that discussion around this topic in detail will take us far, we want to take a step back and highlight the main point again and emphasize it.

The importance of the Dialogue’s format has increased especially recently, which has been led by China's systematic efforts to rearrange the regional order based on its own goals, to impede free naval movement in the region, and to violate the sovereign rights of a number of countries. It is noteworthy that according to the Dialogue, Beijing's efforts to “rewrite” a number of international norms to realize their geopolitical views and ambitions have acquired an alarming character. It is quite understandable that development of the process in this way threatens regional stability and the balance of power, and the prevention of this threat and the further radicalization of events is the main challenge for the countries participating; the steps taken to deepen cooperation within the framework of the Dialogue serve the same purpose.

To cut to the chase, a “Small NATO” operating in the Pacific as a “quadrilateral security format” is a response to its revivalist democracies to the policy of containment in the region based on a number of principles enshrined in the Cold War-era policy. At the same time, it should be noted that the format is not a formal alliance and is not accompanied by a NATO Article 5 analogy – there is no formal commitment to mutual military assistance.

It should be noted that in addition to cooperation in the field of security and defense, the area of interests provided by the Dialogue includes coordination of many other topics, be it migration, energy, terrorism, etc. Although, there is no doubt that the coincidence of geopolitical interests in the geographical area, which is recognized as a “core area of interest” by the United States, is a major motivator for the participants of the Dialogue. The importance of the region for the United States has not only been reflected in a number of US policy documents, but has also been set as a special coordinator for the Indo-Pacific region under US national security during President Biden’s administration. It is noteworthy that the growing attention to the region by leading EU states has also been expressed through very specific actions. For example, France first unveiled a new strategy on the issue, and then appointed an Ambassador Extraordinary and Plenipotentiary for the Indo-Pacific, and Germany began developing an emergency strategy for the region in 2020.

This brief excursion was necessary to move on to the main point and discuss Georgia's security variations in terms of modeling the unified security of the Black Sea. It is also worthy of special reservation that our country continues and develops a course of integration with NATO, which was and still is a national priority.

At the same time, it is precisely the already familiar problem of the Alliance's eastward expansion that makes it necessary to consider additional or alternative ways towards Western political and security integration: Again, given that the modern trend requires the Georgian state to make more decisions, as well as have more flexibility and adaptability in terms of actions. It is necessary not only for Georgia, but also for our Western partners to get rid of stereotypes and clichés in the process of thinking, to have courage and adequacy and to measure achievements with concrete, tangible results.

Continued on georgiatoday.ge and in next week's GT

POLITICS

GEORGIA TODAY APRIL 30 - MAY 6, 2021

5

Georgia: Stuck in the Middle of Nowhere OP-ED BY NUGZAR B. RUHADZE

A

lot of people say that Georgia didn’t need the change brought by the revolutionary metamorphosis of the soviet rule, but this doesn’t necessarily mean that they’re right, although there might be a certain amount of truth to that unpopular way of thinking. Georgia acquired national freedom and political independence as a result of the soviet demise, but it lost one third of its territory too, so where is the win?

The win might be frozen in the future, or it might not be in existence at all. So where are we right now? Nowhere! That’s the deplorable answer, and Georgia, please don’t be offended!

We have the United Nations membership, but we are not shining too brightly on the world map; we are seemingly membership candidates in the EU, but we are not very conspicuously positioned in its backyard; we are one of the avidest aspirants to NATO, but we are not very openly taken as the subject of its defense from our number one enemy; we are definitely a peace-loving nation with an obvious propensity to create a highquality life in this land, but we are also belligerent revolutionaries, poised to ruin in a second what we’ve been sweating over for years; we are one of the youngest democracies in the world, but we’re also the oldest seekers of a truly democratically organized electoral system; we are one of the most apparent

western allies, but we happen to be Russian soothers too, for whatever reason this might be true; we are geopolitical players at an international level, but meanwhile are being looked at as a nation who needs foreign diplomatic assistance to manage the country’s internal affairs; we think we’re part of western civilization with every feature of genuine Christendom, but we are quite deep into oriental ways and habits too; we are not the richest people of the globe, but we are at the same time the claimers of the highest standard of living in general; we manifest modern aspirations in every imaginable way, but we sometimes demonstrate medieval inclinations in human relations; we are the eagerest social networkers in the world, but we’re also the worst gossiping wasters of our time on the internet of no use and exploit; we are a nation of unbelievable cultural elevations when it comes to singing, dancing, acting, painting, sporting and cuisine magic-working, but we are also the most malicious polluters and distorters of our Mother Nature; and finally, we are the people who want and aspire internally to be on top of the world, but we also have the habit of hitting the bottom when it comes to organizing our asocial and political life so that our best sides come into action and the worst ones are backed away from.

As such, it shouldn’t be awfully surprising to find ourselves in the middle of nowhere when suffering from so many contradictory proclivities, spiritual disturbances and political discrepancies. I wish my pain-driven thoughts were not

The Katskhi pillar.

completely true, but digging deeper, I come to believe that thoughts like this might very well be the explanation of our 30-year skidding in the mess of the same color and content. I understand the raised eyebrows at these words but, excuse me, I will never believe in progress within a

nation’s life unless the nation has acquired a skill and capacity to feed itself independently from others, totally defying the hat-in-hand style of survival. I don’t believe in this cosmic-size interminable politicking, whether assisted from outside or internally governed, like I don’t believe

in a man who is not capable of keeping his family independently from others after he has ventured to get married and be called a man. That’s why I am saying without any remorse or pang of conscience that we don’t quite clearly know where we are right now.

Taking Stock of Recent Developments in the South Caucasus. Part 4 ANALYSIS BY EMIL AVDALIANI

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n recent years, interconnectedness between the South Caucasus and the Middle East has been growing. It all started with Syria’s Civil War, when the South Caucasus found itself in direct contact with the conflict that began in 2011 in the form of fighters who left the region for the Middle East. The next big event was the energy data of 2020, according to which Russia lost the status of top gas supplier to Turkey, superseded by Azerbaijan.

This explains Ankara’s increased attention on the Caspian Sea over the past several months. Strengthening relations with Azerbaijan has become a priority for Turkey, as reflected in the events surrounding Nagorno-Karabakh last year.

In the aftermath of the war, Russia, Turkey and Iran have been building their policies in the South Caucasus within the light of what is taking place in Syria, Iraq, the Mediterranean, and the energy sector. These are the areas and sectors where the three regional powers have their interests closely intertwined, which increases the level of linkage of the South Caucasus to the Middle East. This also helped elevate the geopolitical significance of the South Caucasus in the foreign policy of these three countries: now it occasionally ranks as high as the Middle East.

The policies of Russia, Turkey and Iran are also influenced and motivated by another important development in the world, relatively diminishing the influence of the West and liberal internationalism in general. The American world order is in crisis, or to use the less radical terminology, it is in a transitory period when the global balance of power is being rearranged, adjusted to the reality that the US is no longer the unconditional leader. In other words, many are preparing for the end of unipolarity.

The Caucasus mountains

Related to this, the rise of China and other Eurasian states has contributed to the emergence of anti-liberalism (illiberalism) as a distinct movement. Nonliberal countries support each other on the international arena, militarily in times of need, and engage in a coordinated ideological struggle (propaganda) against liberal internationalism.

Claiming that the West is in an irrepa-

rable crisis would be an exaggeration.

However, the fact that illiberal-undemocratic countries are increasingly using the problems of the West to their advantage is evident in different parts of the world. To some extent, this process was reflected in the South Caucasus, a direct example being the Second Karabakh War, when the region entered an era of great power competition that put the

post-Soviet order in the South Caucasus into crisis, with new rules of the game being formed today, ushering in a painful transitory period.

Turkey, Iran and Russia, albeit with varying intensity, are interested in reducing Western influence in the South Caucasus. For all three forces, the presence of distant forces in the region is not welcome. All three are driven by a kind

of Eurasian direction in foreign policy.

Eurasianism is associated with escaping, balancing the preponderant Western influence. Russia has been trying to do this for centuries. The same can be said about Turkey and Iran: both have historically sought to balance the disproportionately large influence of the West.

Until now, this has been impossible, but today there are fortuitous circumstances.

The world order is changing, the West is not in as comfortable a geopolitical situation as it was in the 1990s and 2000s, and, most importantly, a powerful illiberal China has emerged. China allows most Eurasian countries to balance with the West.

More needs to be said about Turkey's delicate position in the South Caucasus.

Although Ankara has a difficult relationship with the West and ideally should be fully interested in weakening the positions of Brussels and Washington in the region, Turkey and the West are also driven by many common long-term interests. Ankara sees that without the West it will find it difficult to contain Russia, and that greater balance requires a certain amount of NATO and EU influence in the South Caucasus and the Black Sea region. It is also noteworthy that for Turkey and the West, the South Caucasus is in fact the only region where the interests of the two almost completely coincide: safe operation of the existing energy and transport corridor to the Caspian Sea. Therefore, to say that Turkey is interested in a complete decline of the West in the South Caucasus would not be correct. Here, we are dealing with geopolitical maneuvering from the Turkish side, when decisive distancing from Europe would hurt Turkish interests by increasing its dependence on Eurasian states. Better be able to balance between the West, Russia and the rest of Eurasia.

Emil Avdaliani is professor at European University and the director of Middle East Studies at Georgian think tank, Geocase.

6

POLITICS

GEORGIA TODAY

APRIL 30 - MAY 6, 2021

The Czech’s vs the Russians: Two Experts on the Expected Fallout wants this to have consequences for us, but the only consequence we’ve seen is that we’ve got rid of a few Novichok, Polonium and Dioxin exporters, and I for one am not feeling sorry about it. As for why they decided to agree, I believe it shows that their embassy in Prague is much more important to them than muscle-flexing rhetoric. They need the embassy in Prague, need it far more than we need an embassy in Moscow.

INTERVIEW BY VAZHA TAVBERIDZE

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omething is rotten in the Czech Republic, or, rather, was, until Prague promptly expelled 18 Russian diplomats in retaliation for two military base explosions in Vrtebice in 2014. The Czech investigation showed said explosions had been masterminded by the inimitable GRU duo of "Petrov" and "Boshirov," the very same intrepid explorers and Salisbury Cathedral aficionados that were to blame for the Skripal family poisoning in the UK in 2018. It was precisely the Skripal incident that saw the protracted investigation come to a startling reveal due to newfound information.

As the diplomatic standoff between the two countries continues, it is as yet unclear what price will Kremlin have to pay. Petr Kolár, former Czech Ambassador to Sweden, Ireland, the US and Russia, and Jakub Kalensky, Senior Fellow at Atlantic Council (Czech Republic), think Russia may soon have to witness its long-entrenched influence in the country dwindle, with both society and the political elite coming to the realization just how much Russia poses a threat.

We spoke to the two gentlemen to find out more.

“I was quite surprised the Russians accepted [the expulsion of diplomats],” Kolár tells us. “Does it mean they now take us seriously and accept us as an equal partner? Or are there some behind-thescenes deals taking place? It’s quite striking to see not only huge support towards the government in society, but also an overwhelming consensus that Russia indeed poses a threat to our country; that what Russia did in Vrtebice was an act

Jakub: Unlike the Skripal poisoning case back in 2018, where we saw a coordinated response from the West, who sent home many Russian diplomats, in this case nothing seems to have been coordinated beforehand by the Czech side, which is regrettable.

IN THE SKRIPAL CASE, THE CZECH REPUBLIC, OUT OF SOLIDARITY, EXPELLED SOME RUSSIAN DIPLOMATS. SHOULD THE UK RETURN THE FAVOR?

PETR, HOW WILL ALL THIS IMPACT THE RELATIONSHIP BETWEEN THE CZECH REPUBLIC AND RUSSIA IN THE FORESEEABLE FUTURE?

Jakub Kalensky

of state terrorism. There is also a sense of relief that the Russian-state owned company Rosatom will no longer be building our nuclear power plant in Dukovany.”

JAKUB, YOU’VE STUDIED THE KREMLIN’S FOREIGN POLICY BEHAVIOR EXTENSIVELY. A FEW DAYS AGO, MADAMME ZAKHAROVA & CO WERE ADAMANT THAT “ULTIMATUM TALK” WON’T WORK WITH RUSSIA, AND YET THEY HAD TO ACCEPT THE CZECH ONE ON ITS DIPLOMATS. WHAT IS THE RATIONALE BEHIND IT? This case shows us that whatever Zakharova, Peskov or any other Kremlin propagandists blurt out, it’s just empty words. They can say whatever they want, but we don’t have to pay any more attention to it than we would to the buzzing of a particularly annoying fly. Zakharova might say, however many times, that she

It will be frozen for some time. It will incur some financial losses for the Czech Embassy, but we can survive that. As for Russia, they will keep firing their “empty bullets:” threats, condemnation, strong words. The Czech economy and international businesses are not dependent on Russia; our export to Russia is merely 3 or 4 % of our total exports. So, economic pressure can’t be leveraged against us by the Kremlin. We’re in a relatively comfortable position.

JAKUB, FOR RUSSIAN STATEOWNED COMPANY ROSATOM, THIS MEANS THE LOSS OF A POTENTIAL CONTRACT OF AT LEAST $6 BILLION. DO YOU EXPECT ANY REPERCUSSIONS FOR BEING BRAVE ENOUGH TO STAND UP TO THE KREMLIN? I don’t see them having many options.

They’ve destroyed what they’ve been building here for years within a single week. The Sputnik 5 deal fell through, Rosatom is out. And they still maintain several assets here that I am sure they would be loath to lose, among them the

Petr Kolár

local useful idiots for the Kremlin, or the outright recruited. So is Russia willing to compromise their assets any further? Their stern rhetoric will be directed mostly at the domestic population in Russia, but I don’t see any strong consequences for the Czech Republic.

THE CZECH REPUBLIC REQUESTED THE EU AND NATO ALSO EXPEL RUSSIAN DIPLOMATS AS A SIGN OF SUPPORT. IT GOT VERBAL SUPPORT BUT SO FAR ONLY SLOVAKIA AND THE BALTIC COUNTRIES MADE A MOVE. THE CZECH REQUEST SEEMS TO HAVE FALLEN ON DEAF EARS IN WESTERN EUROPE. WHY? Petr: It takes time to coordinate such things. I believe Poland will also follow suit. A more coordinated Western response should also be expected at the next NATO summit.

Petr: We hope [that they will], of course.

Then again, we have to first clean up the mess at our own door: we have a President who didn’t say anything, who didn’t ask his EU and NATO colleagues for support. But it’s very important for everyone to realize that, although we might have a Trojan horse of a President who harbors some pro-Kremlin sentiments, it doesn’t mean the government is the same. So this should not stop the UK from declaring solidarity and standing by our side in this moment, just as Czech soldiers are fighting side by side with their NATO colleagues in international missions.

IN THE SKRIPAL CASE, THE US IMPOSED ADDITIONAL SANCTIONS AT THE UK’S REQUEST. SHOULD PRAGUE BE DEMANDING NEW SANCTIONS TOO? Yes. We should be inspired by recent sanctions adopted by the US against specific companies and specific people.

Let’s focus on those who encourage or were complicit in terroristic attacks, such as the one that took place on Czech soil. We should be strict and firm. No visas for these people to travel around freely in Europe; no more shopping at will in Paris and London.

BUSINESS

NBG Increases Monetary Policy Rate to 9.50%

BY ANA DUMBADZE

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n April 28, the Monetary Policy Committee of the National Bank of Georgia decided to increase the refinancing rate by 1 percentage point. The monetary policy rate was set at 9.50%, Koba Gvenetadze, the President of the National Bank of Georgia announced.

He noted that annual inflation was 7.2% in March. It is noteworthy that since December last year, the inflation rate has been reduced by subsidies for utility bills.

“The reduction of inflation since last December was related to the subsidization of utility fees, which was of a temporary nature. The end of this subsidy in March 2021 was reflected in the upward shift of inflation. It is noteworthy that the subsidy will also have a base effect with a significant upward impact on the annual inflation rate in December 2021 and January-February 2022. Given the changed circumstances since the previous meeting, according to the updated forecast, other things being equal, inflation will average around 6.5% in 2021 and then gradually approach the target. The forecast for economic growth is about 4% in the baseline scenario,” the NBG Head said.

Gvenetadze pointed out that amid the deteriorating epidemiological situation, the fiscal deficit remains high, stimulating local demand.

“Inflation pressures, coming from rising prices on international commodity

NBG President Koba Gvenetadze

markets, persists, being reflected in the increased prices for oil products and selected food items. At the same time, on the back of a big drop in output due to the pandemic, the average production costs are still high, being another source for the upward pressure on inflation.

“The Committee also took into account that the recent developments in the trading partner economies have, to some extent, also been transferred to the local

foreign exchange market. Given the high dollarization of the economy, this puts even more pressure on prices. Moreover, there is high uncertainty remaining about the prospects of the tourism industry in Georgia as well as globally. Amid deteriorating epidemiological conditions, the fiscal deficit remains at high level, pushing domestic demand up.

“Regarding the lending, despite the recent slowdown, as a result of maintaining adequate buffers of liquidity in

the financial sector, it continues to grow fairly. Overall, the increase in domestic demand boosts imports. In view of the prolonged deviation of inflation from its target and intensified inflationary pressures, the Committee decided to increase the monetary policy rate by 1 percentage point. A possible further tightening of monetary policy will depend on inflation expectations and the dynamics of factors affecting it,” he said.

“Based on the abovementioned fac-

tors, it is clear that the pressure on inflation coming from high dollarization and the exchange rate is still strong. In addition to limiting the efficiency of monetary policy, dollarization also carries risks of financial stability, and thus its gradual reduction remains a longterm priority of the NBG. For this purpose, starting from July, the minimum reserve requirements for funds attracted in foreign currency will be determined individually, for each commercial bank, according to the deposit dollarization of each bank. In particular, unless the deposit dollarization rate exceeds 40%, the reserve requirement norm will be reduced from 25 to 10% for funds borrowed in a foreign currency and with a remaining maturity of up to 1 year. If the deposit dollarization is 70% or above, reserve requirements will still be 25%.

Finally, for the deposit dollarization in the range of 40-70%, the reserve requirement norm will decrease linearly from 25 to 10% along with a decrease in the deposit dollarization. Similarly, the reserve requirement will be reduced from 15 to 10% for foreign currencydenominated funds with a remaining maturity of 1 to 2 years. This change will help to intensify competition in the GEL deposit market, gradually increase the demand for GEL and ease the pressure on the foreign exchange market.

“The National Bank of Georgia is constantly monitoring the current economic processes and financial markets and will use all the tools at its disposal to ensure price stability,” the NBG said.

The next meeting of the Monetary Policy Committee will be held on June 23, 2021.

BUSINESS

GEORGIA TODAY APRIL 30 - MAY 6, 2021

7

THE ISET ECONOMIST A BLOG ABOUT ECONOMICS AND THE SOUTH CAUCAUS

www.iset-pi.ge/blog

The ISET Policy Institute (ISET-PI, www.iset-pi.ge) is an independent think-tank associated with the International School of Economics at TSU (ISET). Our blog carries economic analysis of current events and policies in Georgia and the South Caucasus region ranging from agriculture, to economic growth, energy, labor markets and the nexus of economics, culture and religion. Thought-provoking and fun to read, our blog posts are written by international faculty teaching at ISET and recent graduates representing the new generation of Georgian, Azerbaijani and Armenian economists.

Tobacco Control in Georgia

Table 1. Excise taxes on tobacco products (in GEL for Sp, in percent for Av)

the size of health warnings on the packages of all tobacco products from covering 30% of the package to 65%, and the introduction of obligatory graphic health warnings.

In parallel, Georgia started rapidly increasing excise duties on tobacco in 2017. The key changes in excise tax rates by type of tobacco product are presented in Table 1. According to the Tax Code of Georgia, excise duties on tobacco products consist of specific (Sp) and ad valorem (Ad) components. The rate of specific tax is a fixed amount of GEL per pack of cigarettes, while ad valorem tax is expressed as a percentage of the retail price of cigarettes.

Source: Tax Code of Georgia

BY GIORGI MZHAVANADZE

S

moking and passive smoking are some of the main problems for public health in Georgia.

According to the WHO, 29.9% of adults in Georgia smoked tobacco in 2017. Smoking prevalence among males was 54.6% – fifth in the world and first in Europe. A study by UNDP suggests that about 0.4% of the adult population of Georgia die annually from tobacco-related diseases, and the estimated total annual economic costs of smoking account for 2.4% of GDP.

Law on Advertising, Law on Broadcasting and Administrative Offences Code, which included: a) a ban on smoking in public places; b) a ban on all kinds of advertising and marketing activities; c) restriction of sponsorship; d) increasing

The effectiveness of recent tobacco control measures has not been assessed yet due to a lack of data on smoking patterns (prevalence, intensity, quitting rate, etc.).

Table 2. Cigarette market

Source: Euromonitor International Table 3. Alternative estimates of the cigarette market (in mln. packs)

TOBACCO CONTROL POLICY AND TAXATION To reduce the health and economic harm of tobacco use, Georgia has implemented radical changes to the tobacco control legislation and tobacco taxation in recent years. Georgia made the most radical step towards a tobacco-free society in 2017, when Parliament adopted a comprehensive package of legislative amendments to the Tobacco Control Law (TCL),

IMPACT OF THE MEASURES IMPLEMENTED

Source: Geostat, MoF, author’s calculations

This data is not collected by local sources in Georgia. The latest information on smoking in the country was collected in 2016 by the WHO using the STEPS survey. However, despite the lack of specific data, I tried to analyze the impacts of the measures implemented, by using data on the size of the cigarette market a) prepared by Euromonitor International and b) from our own estimates based on data from Geostat and the Ministry of Finance.

Table 2 shows estimates of the cigarette market measured by the value and number of cigarettes sold in Georgia during 2013-2019. Cigarette consumption measured by the number of packs sold was relatively stable in 2013-2016 and has begun to decrease since 2017. In 2018, approximately 375 million packs of cigarettes were smoked, which is 35 million packs (11%) less than in 2013.

In monetary terms, the size of the cigarette market was growing steadily until 2019, as the price increase outweighed the decrease in the number of cigarettes sold. However, in 2019, the total value of cigarettes sold in Georgia showed a 14% annual decline and amounted to 1,152 million GEL. According to Euromonitor International, the sharp decline in cigarettes’ market value was caused by consumers switching to cheaper alternatives along with increased illicit sales of cigarettes.

Table 3 shows alternative estimates of the cigarette market in Georgia. We calculated the number of factory-made and roll-your-own (RYO) cigarettes sold in the country based on production and trade data provided by Geostat: 1. Market size of factory-made cigarettes = domestic production + import – export of factory-made cigarettes, cigars and cigarillos; 2. Market size of factory made and RYO cigarettes = market size of factory-made cigarettes + domestic production of fine tobacco + import of fine tobacco – export of fine tobacco.

As data on the tobacco products which are used for making RYO cigarettes are given in tons, we estimated the number of packs of RYO cigarettes assuming that a cigarette contains 1 gram of tobacco.

Additionally, the size of the cigarette market was estimated using the number of excise stamps sold by MoF. The number of factory-made cigarette packs is robust across different sources – Euromonitor International, Geostat, and MoF. Estimates of the market size

for 2017 and 2018 are nearly identical.

Most importantly, all three sources show the same dynamics: the size of the cigarette market has been rapidly shrinking since 2017, indicating the remarkable achievement of the tobacco control policy implemented in Georgia. The biggest contraction occurred in 2019, when the sales of factory-made cigarettes fell by 44% or 52% according to MoF and Geostat data respectively.

EXISTING GAPS IN TOBACCO CONTROL Despite the encouraging results achieved, Georgia needs to address existing gaps in tobacco control legislation to further increase its effectiveness. For example, some public places are not 100% smokefree, as smoking is still allowed in casinos, private taxis, penitentiaries, airport transit zones, pre-trial detention cells, and in designated areas of inpatient psychiatric facilities and palliative care facilities.

Also, the remarkable results of these tobacco control efforts could potentially be hindered by the development of an illegal market. Higher excise tax rates on tobacco products create incentives for illicit trade, which reduces the effectiveness of tobacco control and taxation policies by providing goods at lower prices, mainly by avoiding government taxes through smuggling, illicit production, and counterfeiting. The development of the illegal market reduces government revenues. According to World Bank study, the Georgian territories of Abkhazia and South Ossetia, currently occupied and controlled by Russia, could be a source of illicit tobacco products.

The existing literature suggests that the illicit cigarette trade in Georgia was low – just 1.5% of total cigarette trade in 2019.

Despite this, and given that trends can change rapidly, Georgian policy makers should put a special effort into fighting illegal trade in tobacco products.

Another important issue is the low availability and accessibility of cessation support programs, as smoking-cessation services are available only in a few private healthcare facilities. Moreover, the costs of such programs are only partially covered by universal health insurance.

Also, the Government’s policy against smoking does not include any tobacco harm reduction actions – the legislation does not differentiate between tobacco harm reduction products (such as e-cigarettes, which may be somewhat less harmful to human health), traditional cigarettes and fine tobacco. As an increasing number of countries recognize that enabling access to safer tobacco products (such as e-cigarettes, snus, and heated tobacco products) is an effective harm reduction and smoking cessation measure, Georgia may consider regulating tobacco harm reduction products differently from combustible cigarettes.

Finally, the health benefits of the implemented tax policies could be hindered by the heterogeneous nature of taxation, which encourages downward substitution and shifting to smoking cheaper or RYO cigarettes instead of a reduction in smoking. Therefore, when considering further increases in excise duties on tobacco products, the excise increase on fine tobacco should be relatively higher than on cigarettes.

We will elaborate these topics further in future blogs.

8

BUSINESS

GEORGIA TODAY

APRIL 30 - MAY 6, 2021

Winner of the U.S. Investors Award, Angel Investor to Hold a Masterclass at BTU

T

o strengthen the culture of investing in startups in Georgia, BTU has planned a masterclass for Angel Investor Jean Hammond, a resident of MIT, the world's highestranking university.

Hammond will hold a special masterclass for Georgian investors and startups in the format of the event planned by the Global Startup Fund at BTU in May 2021.

Jean Hammond is an active Angel Investor who holds the Hans Severiens Award, the highest award in the US startup ecosystem. He founded LearnLaunch, Edinno, Quarry Technologies, and AXON Networks, one of the largest accelerators in the world. His 20 years of experience as a serial entrepreneur include investing in high-tech startups, membership in Launchpad Venture Group and Hub Angels, and many other activities.

After joining the MIT Entrepreneurial

Network at the Martin Trust Center at the University of Business and Technology, attending the masterclass will be free for all registered startups and investors. The theme of the masterclass is the forms of financing startups at an early stage, and their commercialization and development in international markets.

The Global Startup Fund is a unit based in BTU, established in partnership with Israel Silicon Wadi Angel Investors.

Today, the fund brings together investors from the United States, various European countries, and now Georgia.

The Fund is supported by the Georgian Innovation and Technology Agency. The fund is a partner of TBC Startup, which has created a special investment loan for startups to facilitate access to finance.

Those wishing to attend the masterclass must fill in the registration form on this link: https://forms.gle/P1qa3GZK5MnfdVcRA

Company Law Reform in Georgia – New Rules on Incorporation

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hrough the contribution of partners Archil Giorgadze and Nicola Mariani, joined by senior associates Ana Kochiashvili, Tamar Jikia, associate Mariam Kalandadze, junior associates Ana Jikia, Lasha Machavariani and Nino Sakvarelidze, MG Law Office is partnering with GEORGIA TODAY to provide updated information regarding significant legal changes and developments in Georgia.

In particular, we highlight significant issues which may impact businesses operating in Georgia.

On 9 February 2021, a new draft of the Law of Georgia on Entrepreneurs (the Draft Law) was initiated in the Parliament of Georgia. The Draft Law is intended to replace the Law of Georgia on Entrepreneurs which was enacted in 1994 (the Law on Entrepreneurs).

Almost twice as extensive as the current Law on Entrepreneurs, the Draft Law brought further clarifi cations to questions like the governance and setup of the company, its incorporation, operation, and reorganization.

In particular, the Draft Law aims to create a uniform and transparent legal framework for corporations, their shareholders, directors, creditors and other stakeholders. The new rules will be adapted to requirements of modern corporate relations. They will further improve the business climate and continue promoting entrepreneurial freedom. In addition, the Draft Law will bring the Georgian legislation closer to the European standards which will in turn facilitate closer business relations with Europe and create comfortable and familiar legal framework for foreign investors.

Apart from harmonizing the Georgian legislation with that of EU, the Draft Law seeks to achieve multiple objectives. With the view of strengthening shareholder rights and by offering detailed default rules, the Draft Law aims to modernize the Georgian corporate governance. These default rules can be revised and further refined by agreement between the shareholders.

However, these rules will apply if the agreement cannot be reached on specific regulations of various issues in the company’s constitutional documents.

Considering that the Draft Law has recently been initiated and presented to the public by the Parliament of Georgia, it has not yet been voted in. However, we expect that the Draft Law will enter into force in 2021.

As the Draft Law reforms the Georgian corporate law in many areas and with the view of keeping the businesses informed and upto-date about the new rules and amendments in corporate legal framework, MG Law has begun publishing series of articles reviewing

MANDATING RULES FOR OFFICIAL CORRESPONDENCE In terms of additional novelties, limited partnerships, joint stock companies and limited liability companies may be required to make changes to the design of their official documents or official websites. Namely, companies will have to include the company name, its legal address and identification number in every business correspondence (including electronic ones).

Additionally, if the company is undergoing liquidation, rehabilitation or any other similar procedure, it will be required to make a note of it both on its written documents and on its website.

INCORPORATING A BRANCH OF THE COMPANY

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

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

DOCUMENTS NEEDED FOR THE COMPANY INCORPORATION Registration of a company will generally require submission of a written incorporation agreement duly signed by all founding shareholders. The incorporation agreement shall consist of the following: a. Company’s charter (can be standardized as well as personalized); b.

Company name; c. Legal address of the company; d. Identification details of founding shareholders: • In case of natural persons – personal identification number, name and last name, place of residence; • In case of legal persons – copy of the certificate of incorporation noting e.g., company name, legal address and the identification number. e. Identification details of a company director and of an authorized person as well as the details and term of office of supervisory board members if appli-

cable (similar to the current law, the Draft Law does not envisage citizenship requirements, any person is permitted to act as a director of a Georgian company). f. Power of Attorney (POA) – in case the company is incorporated by an authorized representative of an interested party.

The Draft Law aims to maintain ease of starting up and doing business in Georgia. Foreign shareholders or directors can manage the registration procedures remotely by appointing an authorized representative. The authorized representative will act through a power of attorney and will be able to incorporate a legal entity in Georgia, approve its charter, select the company name and legal address, appoint directors. In terms of formal requirements existing notarization/legalization rules will still apply to documents issued and certified outside of Georgia.

Notably, the Draft Law does not impose any limitations on directors or company shareholders with respect to their citizenship or place of incorporation. Any natural or legal person can be a shareholder or a director in a Georgian company. A procedural prerequisite is to submit a copy of their passport or incorporation certificate to the Registry.

The Draft Law envisages additional requirements for specific legal entities: • The incorporation agreement of a limited partnership needs to specify members that are limited partners; • The incorporation agreement of a limited liability company needs to specify amount of subscribed shares and information on the number of shares that each partner holds (in the form of percentage of total shares); • In joint stock companies (JSC) the incorporation agreement has to indicate both subscribed capital and authorized capital. In addition, a JSC may issue shares with nominal value and shall

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

REQUIREMENTS RELATING TO THE CHARTER The Ministry of Justice of Georgia (the Ministry) will prepare several standardized charter forms designed to be adopted and used by various business entities.

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

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

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

All relevant documents will have to be notarized, legalized or apostilled as required.

PRE-ENTREPRENEURIAL ENTITY AND THE QUESTION OF LIABILITY The company is deemed to be established upon its registration at the Registry, however, both the Law on Entrepreneurs and the Draft Law acknowledge an existence of a pre-entrepreneurial entity prior to completion of official registration process. Even though the notion of a pre-entrepreneurial entity does not currently bear much practical utilization due to the pace and simplicity of the registration process, notable changes have been made in the Draft Law in this regard.

The Law on Entrepreneurs merely specifies direct and an unlimited personal liability for any actions of those directly involved in the activities that have occurred on behalf of the preentrepreneurial entity and its director.

In comparison, the Draft Law allows those acting on behalf of the company and creditors to agree on an alternative distribution of the liability. Further, it explicitly allows a transfer of the personal liability to the company upon its registration and company’s approval of the transactions that have occurred in its name before the official registration.

BUSINESS

GEORGIA TODAY APRIL 30 - MAY 6, 2021

9

Order Your Next Meal from ‘VIS Kitchen,’ the New Rockstars in the Cloud INTERVIEW BY KETEVAN SKHIRTLADZE

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IS Kitchen is an online multi-brand restaurant that offers a unique service to its customers, never before seen in the country. GEORGIA TODAY contacted its co-founder, Nikusha Merkviladze, to find out more.

“Everything started from a childhood passion towards food and technology,” he tells us. “From an early age, I would watch my father, a restaurateur, work in the field, and would spend a lot of time in the kitchen on weekends.

“I spent four years of my student life in Milan, Italy, where food has a high cultural value. I was inspired by everything that I saw while sitting in Italian restaurants in the evenings. At the same time, I couldn’t ignore the fact that due to the long queues, the food I ordered usually came late. I’m sure students will agree that such delays cause problems when studying, especially during exams.”

Merkviladze notes that online services were booming at the time, among them the world's most valuable companies Amazon and Airbnb, and the idea came to him for a fast, online, “delivery only” restaurant.

“After some research, I found out that the ‘Internet Restaurant’ concept was unheard of in Georgia. I was lucky to then be able to share my passion and

interest towards innovative food concepts with my partner, who has a wealth of experience of running successful restaurant chains and retail businesses, so we decided to establish a startup.”

They are now running a multi-brand, multi-channel food tech business with a focus on deep culinary know-how, food innovation and technology. It is the first multi-brand Internet Restaurant/Cloud Kitchen company in Georgia, striving to make customers’ lives easier by preparing delicious food, and delivering it fast, safely, in quality packaging, and with the promise of best value for money. They are already partnered with local delivery services Glovo, Wolt, Elvis, and Bolt food.

TELL US ABOUT THE VIS KITCHEN CHEF, AND THE MENU THEY CREATED.

WHAT DOES VIS KITCHEN MEAN, AND WHAT IS THE CONCEPT BEHIND THE BRAND?

Vis Kitchen has an innovative concept of Cloud/Virtual Kitchen, based on efficiency and TIME! We are oriented on people who order from their homes; people who want their food to be delivered to their door. We have deliveryoriented packaging to maintain safety and ensure high-quality products get delivered, and, finally, we offer our customers best value for money.

On the one hand, Vis is an abbreviation - ‘Virtual International Smart’ Kitchen, and on the other hand it represents the concept of gathering and ordering food together. Let me clarify: in Georgia, when friends, family or colleagues are together and want to order food, there is always a leader put in charge of placing the order, and they usually ask the question ვის რა უნდა? (who wants what?). Our concept answers it perfectly: Who wants a burger? Who wants Georgian? Who wants shaurma? Who wants pizza? These will be familiar questions to you. The question “who wants what?” will be answered by Vis Kitchen – the virtual kitchen for every taste!

Several chefs worked on this project.

Every department was created with the assistance of professionals with a high degree of knowledge in a particular field.

We created a unique structure and culture, which guarantees only high-quality products get delivered to your door.

The main reason we started with Vis Burger, Vis Pizza, Vis Shawarma, and Vis Kartuli is their popularity, but in our case, we offer products that are unique for their fresh and high-quality ingredients.

WHAT MAKES VIS KITCHEN STAND OUT?

YOU FOUNDED VIS KITCHEN DURING THE COVID-19 PANDEMIC. DOES THAT MEAN THE PANDEMIC GAVE BIRTH TO YOUR IDEA? I can’t say the pandemic inspired us; it was more that it gave us a push toward realizing the idea. The pandemic showed a need for such services, and obviously

Several chefs worked on this project. We created a unique structure and culture, which guarantees only high quality products get delivered to your door.

accelerated demand for food delivery in Georgia.

WHAT ARE THE CHALLENGES THE INTERNET RESTAURANT MARKET IS FACING RIGHT NOW? First of all, internet restaurants are a novelty on the market. There are challenges across the value change, from source to delivery, which need to be addressed to make sure that the business is sustainable.

Further, the pandemic necessitated additional costs, and our business is no exception. It has required a drastic change in terms of everything, from hygiene control to extra transportation costs.

and to move closer to our customers; to offer a wider range of cuisine. We’re planning to create new food brands. And we want to further expand use of technology in our operations, developing and improving operational processes.

We hope that in the near future, we will achieve process automatization.

Finally, we want to surround ourselves with other rockstars in the field!

WHAT ARE YOUR FUTURE PLANS FOR DEVELOPING YOUR BUSINESS? Right now, we are an internet restaurant which operates 100% on delivery. People who order online are our top priority, but we’re planning to create a high-tech takeaway service in the near future.

We also aim to expand geographically

SOCIETY

Dighomi Meadows at the Frontline of an Ecological Crisis Continued from page 1 Along with the dramatic and radical change to the landscape, there is a real danger that the area will lose its recreational purpose, be alienated and become another construction site. Added to this is the increased risk of flooding.

Locals are trying to protect the Dighomi Meadows area and turn it into a public space, while a large part of the floodplain area is still in municipal ownership.

The Dighomi Meadows Neighborhood Initiative has been working to save, restore and protect the landscape and

biodiversity of the unique riparian forest of Tbilisi, which was destroyed by large-scale illegal waste dumping and resource extraction in 2020.

As a result of one year’s work carried out by the Dighomi Meadows Neighborhood Initiative, the illegal quarrying and construction waste disposal was stopped, and the operation of the processing plant and its use of the area was banned.

Recognition of the problem and its scale by City Hall remains on the agenda, as does implementation of the status of protected landscape-forest zoning, the start of cleaning works in the area and along the Mtkvari River, and preparation

of a forest park restoration-development action plan.

The involvement and support of international organizations and experts is important to achieve these goals. The Dighomi Meadows Initiative Group is supported by the Georgian Open Society Foundation.

“Of course, Tbilisi City Hall is well aware of the problem, which is very serious, and it has been actively involved in the process of solution-finding of late,” a City Hall representative told GEORGIA TODAY. “Unfortunately, the pandemic prevented us from being able to allocate funds for the restoration and develop-

ment of the park area; however, the project will be carried out in the near future and the territory will be intensively planted and developed. Of course, its recreational status is maintained and no-one argues against it. The Municipal Inspection has issued numerous fines over years for the contamination of the

area. Regarding the quarrying on the ground, it’s a matter of environmental protection and the relevant agencies should clarify whether these works are legal and licensed or not. As to the park itself, the relevant project already exists and its implementation is expected to be launched soon.”

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SOCIETY

GEORGIA TODAY

APRIL 30 - MAY 6, 2021

Back to Spring: Etseri, Svaneti BLOG BY TONY HANMER

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t has been a few months of driving a whole season forward in time each visit to Zugdidi, which hardly gets winter at all and starts into spring while Upper Svaneti is still deep in snow. At last now I can report that we are catching up!

The only bit of snow left on our whole land is a patch about 1 by 2 m behind the barn. It has gathered there off the roof, away from the sun, and only now that night temperatures are staying above freezing is it melting properly. A few more days, and what was tens of tons will have evaporated. The equivalent area on the north side of the house is already gone, but this barn bit was higher than I am, so it takes longer.

The land has been running with meltwater and rain, tuning our backyard into a temporary muddy swamp as it always does. Just as well there is lots of hay and other vegetation whose roots hold the soil, or it would all wash away. Now, while the clayey ground is still softest, before the sun bakes it hard, there is plenty of work to do.

There is the hoeing of areas we want to plant with vegetables and flowers, and clearing up land around the raspberry canes and fruit seedlings. Then we give them a bit of manure for richness. Since finishing with the bovines, we don’t get more top-ups of manure except a bit from the chickens; but what we still have left is plenty for a while yet. Then we’ll

plant: potatoes, corn, pumpkins, cabbages, tomato seedlings to come soon from Kakheti, onions, garlic, herbs, all sorts of flowers to beautify the place. All small scale, but still plenty of work. At least we don’t depend on any of these things to eat or sell to survive; they’re just extras. I can even turn rose petals into jam, or liqueur, and this year will be trying an elderflower liqueur for the first time…

Fencing is always an important renovation chore after the ravages of winter. The fence posts, ideally if oak or cherry, will have moved or risen, quite a few of them, and must be pounded back down, again while the ground is still soft. Any which are rotten we must replace. Fence slats also to maintain, and wire to tighten by twisting it in places into a small knot. The cows are ever prowling and hungry for fresh green grass. Some of them do have the bad habit of “testing” fences, so barbed wire helps to deter them from this destructive habit. Any that do get through I beat as hard as I can with a stout stick, on their way out, to impress on them that Here Is Only Pain. No permanent harm, but maybe a lesson to learn and dimly remember, I can only hope.

Some sections of fence are common between us and a neighbor. The procedure is to negotiate renovation: I’ll do it this time, you can do it next. Some sections are getting old enough from years of service that the slats all have lichen growing on them and will all eventually need replacing, so the commitment is not a trivial one. But it must be done, or the Beasts will Enter and Ravage.

I recruit an extra pair of local hands for the fencing work as it’s best done with two people. One to hold the fence post in place while the other pounds it in with a sledgehammer; otherwise it tends to wobble, and the hammer does need a two-handed use, as heavy as it is.

Or, if we need any new posts, one to hold and the other to sharpen an end with the axe. Once we’ve pounded them in, I also beat down the ground all the way around to make it as dense and hard as possible. There is a Russian inhabitant who has been here for years, working for his host family for room and board, and we involve him for such odd jobs and pay him. He and I get along well, and it’s also a chance for me to practice my Russian, which unfortunately is suffering from years without regular use.

This is what spring looks like up here: late compared to the lowlands of Georgia but no less busy. After months being much more cooped up indoors, it is bracing to work the land a bit and get some fresh air and sun on one’s face. After 9 years of this, I already know what do to, which also feels good. Season, here we come.

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

SPORTS

Georgian Sports Successes this Past Week bronze prize winner of the European Championship. In the decisive match (82 kg), the debutant of the European Championship defeated the Armenian Karapet Chalyan 3:2.

Overall, the Georgian Greco-Roman wrestling team won 1 gold, 1 silver, and 2 bronze medals and took third place in the European Championship team standings.

TABLE TENNIS

BY TEAM GT

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hmagi Bolkvadze, a Georgian wrestler, has become the European champion.

At the European Championship in Warsaw, the Georgian wrestler defeated Armenian Malkhas Amoyan 4:1 in the final of the European Championship (72 kg) and won the first gold medal of the Georgian Greco-Roman wrestling team.

Aivengo Rikadze was declared the

On April 24, 12-year-old Anastasia Chkhartishvili won the championship among women at the Tbilisi Table Tennis Championship held at the Arena-1 Sports Complex. Before the victory, she defeated several experienced athletes, including Natia Katsitadze, second-place winner of the Georgian National Women’s League, and won the gold medal of the Tbilisi Championship.

Chkhartishvili has been playing table tennis since December 2018. During this period, she became a two-time vicechampion among the mini cadet girls.

In 2021, she became a champion among cadet girls and after among women.

Given her age and training period, Anastasia’s results are considered significant.

Anastasia is successfully playing in the Adolescent League by the Ministry of Sport and Culture of Georgia organized within the #BE ACTIVE campaign, which

started on April 3 of this year and ending on June 5 of 2021. This tournament is noteworthy because cadet boys and girls play together in this competition.

It should be noted that during this tournament, Anastasia defeated several featured male players with remarkable titles and experiences, including the current champion among cadet boys.

At this stage, Chkhartishvili ranks first among the women participants of the league with a significant advantage, and holds second place among boys.

The Georgian Championship is ahead, and 12-year-old Anastasia is preparing for a successful performance, taking individual training under the supervision of a coach, Kote Kharati.

FOOTBALL Juventus might pay EUR 20 mln for the transfer of young Georgia Player Khvicha Kvaratskhelia, who is currently a player of the Russian club Kuban Rubin, and who plays for the Georgian national and age teams.

Reportedly, negotiations are underway with the player’s representatives.

The Kuban Rubin club is asking 19 million for Kvaratskhelia’s potential transfer.

The young Georgian player has also caught the eye of other leading Italian clubs, such as AC Milan.

Kvaratskhelia has been playing in the academy of Tbilisi ‘Dinamo’ and youth teams since 2012. He started his career in 2017, in Dinamo Tbilisi.

He signed a five-year deal with Rubin Kazan on 6 July 2019.

Kvaratskhelia made his debut for the Georgian national team on 7 June 2019 in a Euro 2020 qualifier against Gibraltar, as a starter. On 14 October 2020, he scored his first goal in a 1–1 UEFA Nations League draw to North Macedonia.

On 28 March 2021, he scored against Spain. On 31 March 2021, he scored against Greece.

JUDO On April 20, the Georgian judo team returned to Tbilisi from Lisbon with 5 medals and with the team in first place

at the European Judo Championship.

At the championship, the Georgian boys’ team won 1 gold, 3 silver, and 1 bronze medal, and finished the championship with the first team place among the boys.

Vazha Margvelashvili (66 kg) brought the first medal to the Georgian team at the European Championship.

Lasha Bekauri defeated Beka Ghvini-

ashvili in the Georgian final held in 90 kg and became the European champion for the first time.

In the 100kg category, three-time European Championship winner Varlam Liparteliani lost in the final but won a silver medal.

Guram Tushishvili, the world champion in +100 kg, defeated the Dutch Roy Meyer for the bronze medal.

CULTURE

GEORGIA TODAY APRIL 30 - MAY 6, 2021

11

Exclusive Interview with Georgian Artist Salome Chelidze in this aspect.

“I am happy when I get questioned about a hotel or restaurant design. This interest was generated by the design of our own restaurant, which is unique in downtown Tbilisi, and the interest of visitors never fades.

“I would also like to mention that among my ancestors were the French Jeanniot, landscape decorators who left many magnificent parks and buildings as a legacy of Georgia, among them Irene Park and Kutaisi Boulevard.

“Perhaps all of this combined with genetics and the environment led to the creation of my pictorial paintings,” she muses.

WHAT ARE THE CHALLENGES ASSOCIATED WITH BEING AN ARTIST IN GEORGIA TODAY? INTERVIEW BY KETEVAN SKHIRTLADZE

S

alome Chelidze is a Georgian artist who also owns the renowned ‘Restaurant Museum’ that hosted the President of the United States.

Born into a French-Georgian family, Salome has been painting from childhood and leading a very interesting artistic life. To learn more about her work and future plans, GEORGIA TODAY went to meet her.

“I don’t exactly remember when the artist in me came out,” she tells us. “My parents say I was always drawing, but I particularly remember painting at the age of 6, 7, 8; paintings which my mother framed and kept. What excites me most when I see my childhood artwork is the colors, how I loved dot mosaics. From the age of 16, I found designers and I helped them as an assistant. I remember working with Zaliko Berger and learning a lot of interesting things from him. I used to make Bijouterie with beads.

“I told reporters my inspiration was Antoni Gaudí and his mosaics, although I devoted a lot of time to interior design before getting into mosaics. My parents also devoted a lot of time to color combinations, and I was constantly involved

Being an artist is a big challenge. Besides it being a lot of hard work, the artist needs luck- it's most important. It also matters who represents you and how you are evaluated after your first exhibition. I can’t fail to mention IArt Gallery and its founder and director Ika Bokuchava, her professionalism and having her on your side is a great luxury for any artist.

HOW DOES GUSTAV KLIMT INFLUENCE YOUR CREATIVITY? I get this question a lot and it makes me happy. People often liken my style to Gustav Klimt's, and Klimt lovers often buy my paintings. Art experts have also mentioned that there is something in common, probably it is that I also love to paint in gold and create complex compositions. It’s a great honor for me, but, I myself can’t compare my works with his: I’m too shy. As for my inspiration, it probably still comes from my love of Gaudi.

WHERE DID THE IDEA COME FROM TO COMBINE A RESTAURANT BUSINESS AND ART? Restaurant Gorgasali has existed for more than 30 years: my father bought the abandoned ruins and started construction with his own funds. As far as I can remember, he was constantly build-

ing it, and used to say "I’m building a restaurant at the presidential level. We must revive Georgian culture in these halls and show the world how multicultural a nation we are.”

My father was from a French-Georgian family, and my brother and I were involved in this process even as school-children.

I worked with my father as a designer, managing director and now owner. The greatest feeling is the feeling of freedom when you create a work. It is a celebration of your soul, and when it is followed by recognition, it is a unique thing.

I’m the little hostess of this house, and for me, the restaurant business is also associated with art, not only the design of the restaurant, but also the design of each dish is of great importance to us.

TELL US HOW THE PRESIDENTS OF THE UNITED STATES AND GEORGIA ENDED UP IN YOUR RESTAURANT. It all started with a lot of diplomats coming to our restaurant. We’re a restaurantmuseum, and the location of the restaurant is in the historical district of Tbilisi, so ambassadors and presidents of different countries, famous actors, and singers often come and dine with us, all extremely fascinated by the design and cuisine of Gorgasali.

The famous George Bush visit is really like a fairy tale, though. US Embassy staff came to us and told us that a very honorable guest was to be brought in a few weeks. We didn’t know until a few days before who it was, and when we heard that US President George W. Bush was about to have dinner at our restaurant, well, I just can't convey the emotion.

It was a real victory of a great idea and great work, to have our work so appreciated. At the end of his meal, President Bush told the press "Good food, really good food." After that Restaurant Gorgasali was covered by all the global press; everybody was writing about us! The dinner table of the presidents is still kept in the restaurant, with the flags of America and Georgia always flying, I am happy that my father witnessed this success.

Today, Gorgasali also has the nickname "The Bush Restaurant".

Miracles seem to happen very often in my life, indeed, so much work as I have already said, brings great success.

Cezanne Printing House contacted me, asking to write about my life, with the book illustrated with my drawings. We will have the presentation soon.

WHAT ARE YOUR FUTURE PLANS? I've started a collection called ‘Great America.’ I want to show Georgian society the oil mosaic in my paintings, to show the country that plays a huge part in my life, a country that always stands

by Georgia. I will go around Georgia with this collection and hold exhibitions.

Creating a collection takes a lot of time.

I draw for about 8-12 hours. I will tell you a secret: the canvases will feature Columbus, an American Indian, a Texas cowboy, Charlie Chaplin, Marilyn Monroe, Michael Jackson, American football, baseball, the American court, and US holidays and traditions.

I want to paint all the important political figures, from presidents to politicians, American writers, and more. I think, for the Georgian viewer, seeing Great America in 50 paintings will be a great pleasure. It will be a cognitive tour of American history, with one canvas collage starting with an oil mosaic.

In addition, various exhibitions and presentations are planned, I hope the pandemic will end soon and the world will return to its usual rhythm!

BACK TO YOUR ART. TELL US ABOUT THE EXHIBITION HELD AT THE IART GALLERY. I exhibited two collections at the IArt Gallery: ‘The Lost Children of France’ and ‘The Oil Mosaic.’ Numerous art experts came, as did French Ambassador Diego Colas. For me, this exhibition was very emotional, as it was dedicated to my father and his ancestors. I depicted the lives of Jeanniot in my painting. It was very exciting for me to work on these paintings, I have conveyed all scenes of the French family, the repression of 37 years, and history.

After this exhibition lots of journalists try to contact me, and I was offered to participate in many projects. Very high evaluations were made of my works, which makes me very happy.

YOU HAVE AN UPCOMING EXHIBITION IN NEW YORK. Yes. I’ve been cooperating with the New York gallery Agorra Gallery for almost a year. It is definitely a new and very interesting stage beginning in my life.

AND CEZANNE PRINTING HOUSE IS WRITING A BOOK ABOUT YOUR WORK? PUBLISHER & GM

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