Caucasian Business Week #19 by Caucasian Business Week

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BUSINESS WEEK September 02, 2013 #19

caucasian business week

September 02, 2013, Issue 19

GEORGIA US-GEORGIA MILITARY COOPERATION NEEDED AS GEORGIA’S ENERGY SECURITY NEEDS RISE WITH OIL AND GAS PIPELINES

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BE INFORMED, DO BUSINESS

GEORGIA’S BILLIONAIRE PRIME MINISTER SPREADS RICHES, PLANS POLITICAL EXIT

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arva beer has been introduced in the market in a new packing. The management has been developed the new deisgn for a year. Both glass and plastic containers have been redesigned. Pg. 5

Infrastructure Ministry to Launch Three New Projects

CORPS TO CAREER: KARGI GOGO ALL THE WAY FROM GEORGIA

PCVs Sean and McKinze Cook always wanted to start their own business, but had no idea what it would be - until they were noshing on some of their host community’s cuisine. Pg. 7

rom September 1 tobacco excise increases by 25%. According to government decision, excise fee on unfiltered cigarette increases by 5 Tetri. Pg. 4

ARMENIA ARMENIAN GREENHOUSE TOMATO WILL BE EXPORTED TO RUSSIA

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0,6% ECONOMIC GROWTH WAS MENTIONED IN JULY, SECOND QUARTER GROWTH WAS REVIEWED

he tomato grown under Dutch technologies in greenhouse farms of Armenian Kotayk region is planned to export to Russia at the end of the year. Pg. 10

AZERBAIJAN AZERBAIJAN ENACTS LAW ON PROTECTION OF BUSINESSMEN

CIS BELARUS TARGETS RUSSIAN BILLIONAIRE AS ‘POTASH WAR’ INTENSIFIES

uleiman Kerimov, a majority shareholder in Uralkali, could be the next victim in the ‘potash war’ as diplomatic relations sour between Minsk and Moscow.

he estimated real Gross Domestic Product (GDP) growth rate amounted to 0.6 percent y-o-y in July 2013. The estimated real GDP growth in Q2 2013 equaled 1.4 percent. The estimated real GDP growth for the first seven

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WORLD NEWS SYRIA SENDS OIL TO 2-YEAR HIGH, $150 SPIKE FEARED

months of 2013 reached 1.7 percent y-o-y. The Geostat produces monthly rapid estimations of real GDP growth using administrative data on VAT taxpayers’ turnover, fiscal and monetary statistics. The compilation of rapid estimates is an internationally adopted practice to obtain preliminary monthly growth of real GDP. For those sectors, where preliminary monthly data do not exist (e.g. agriculture, non-observed economy etc.), the estimations are based on the data for previous periods. Therefore, the actual quarterly real GDP growth may significantly differ from monthly rapid estimates. Furthermore, the data on VAT taxpayers’ turnover for the previous months might be updated on a monthly basis, implying corresponding adjustments of real GDP growth estimates.

Zurab Abashidze: Russia will Simplify Visa Regime with Georgia Pg. 4 Irakli Pertaia: Major Russian Investors are Waiting for Presidential Elections to Make Investments in Georgia SAVSE - Popular Georgian Brand in London

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WENDY’S FIRST RESTAURANT WILL OPEN IN TBILISI ON SEPTEMBER 12

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il has jumped to a two-year high and could see Brent spike as high as $150 per barrel as US and western allies move towards a military strike on Syria. Pg. 13

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Government to Pg. 4 Develop Plan on Resolving Problems before Private Insurance Companies nies

QARVA BEER APPEARS IN NEW PACKING

CIGARETTE EXCISE TO INCREASE IN SEPTEMBER, PHILIP MORRIS PRICE INCREASED

US says 1,400 killed in Syria chemical attack, Kerry promises ‘limited and tailored response’

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irst restaurant of the multinational company Wendy’s opens in Tbilisi on September 12. Wissol Group reports that the restaurant will be located on the Rustaveli Avenue, in the former Post Office building. The restaurant, children’s amusement center, play zone and will occupy 1000 square meters area on 2 stores of the building. International expert of Italian brand Truchilo - Stavros Lamprindis provided professional training in the high quality coffee and dessert offer to the personnel.

WAITING FOR YOU WITH LOVE!

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MAIN EVENTS September 02, 2013 #19

caucasian business week

KERRY SAYS WORLD CANNOT LET ASSAD GET AWAY WITH CHEMICAL ATTACK

.S. Secretary of State John Kerry made clear on Friday that the United States would punish Syrian President Bashar al-Assad for the “brutal and flagrant” chemical weapons attack that it says killed more than 1,400 people in Damascus last week. Kerry said it was essential not to let Syria get away with the attack, partly as a sign to those who might consider using chemical weapons in the future. He said the United States was joined by allies including France, “our oldest ally,” in its determination to act. “It matters here if nothing is done,” Kerry said in a statement delivered at the State Department. He said that if a “thug and a murderer like Bashar alAssad can gas thousands of his own people with impunity,” it would be an example to others, such as, he said, Iran, Hezbollah and North Korea. “Will they remember that the Assad regime was stopped from those weapons’ current or future use? Or will they remember that the world stood aside and created impunity?” Kerry said. Kerry laid out a raft of evidence he said showed Assad’s forces were behind the attack, and the U.S. government released an unclassified intelligence report at the same time including many of the details. The report said the August 21 attack killed 1,429 Syrian civilians, including 426 children. The intelligence gathered for the U.S. report included an intercepted communication by a senior official intimately familiar with the August 21 attack as well as other intelligence from people’s accounts and intercepted messages, the four-page report said. France said on Friday it still backed military action to punish Assad’s government for the attack despite a British parliamentary vote against a military strike. An aide to Russian President Vladimir Putin, a close Assad ally, seized on Thursday’s British “no” vote which set back U.S.-led efforts to intervene against Assad, saying it reflected wider European worries about the dangers of a military response.

Assad’s government has repeatedly denied carrying out the chemical weapons attack, blaming rebels who it suggested were trying to provoke intervention. Syrian state television, which did not carry Kerry’s speech live, reported that Kerry said the “first and last” aim of any action the Obama administration will carry out in the Middle East was to “guarantee the security of Israel”. Any military strike looks unlikely at least until U.N. weapons inspectors leave Syria on Saturday. Kerry said their report would only confirm that chemical weapons were used, and he made clear that would not change much for Washington since “guaranteed Russian obstructionism” would make it impossible for the U.N. to galvanize world action. “The primary question is really no longer, what do we know. The question is, what are we - we collectively what are we in the world going to do about it,” Kerry said. He said the president had been clear that any action would be “limited and tailored” to punishing Assad, that it would not be intended to affect the civil war there and Washington remained committed to a diplomatic solution to the crisis. The timing of any strikes may be complicated by Obama’s departure late on Tuesday for Sweden and a G20 summit in Russia. He was not expected to order the strikes while in Sweden or Russia. Kerry made clear Washington would not be swayed from acting either by the opinions of other states: “President Obama will ensure that the United States of America makes our own decisions on our own timelines, based on our values and our interests.” SHIFTING ALLIANCES Kerry was speaking the day after British Prime Minister David Cameron failed to win parliamentary backing for military action in Syria. Finance minister George Osborne, one of Cameron’s closest allies, accepted that the vote had raised ques-

tions about Britain’s future relations with its allies. “There will be a national soul-searching about our role in the world and whether Britain wants to play a big part in upholding the international system,” he said. French President Francois Hollande told the daily Le Monde he still supported taking “firm” punitive action over an attack he said had caused “irreparable” harm to the Syrian people, adding that he would work closely with France’s allies. Hollande is not constrained by the need for parliamentary approval of any move to intervene in Syria and could act, if he chose, before lawmakers debate the issue on Wednesday. “All the options are on the table. France wants action that is in proportion and firm against the Damascus regime,” he said. Britain has traditionally been the United States’ most reliable military ally. However, the defeat of a the government motion authorizing a military response in principle underscored misgivings dating from how the country decided to join the U.S.-led invasion of Iraq in 2003. Russia, Assad’s most powerful diplomatic ally, opposes any military intervention in Syria, saying an attack would increase tension and undermine the chances of ending the civil war. Putin’s senior foreign policy adviser, Yuri Ushakov, said the British vote represented majority opinion in Europe. “People are beginning to understand how dangerous such scenarios are,” he told reporters. “Russia is actively working to avert a military scenario in Syria. Even a limited strike risks causing unintended consequences. Syrian ex-soldiers say that military sites in Syria are packed with soldiers who have been effectively imprisoned by their superiors due to doubts about their loyalty, making them possible casualties in any U.S.-led air strikes. U.S. INTELLIGENCE REPORT Kerry said the U.S. intelligence community had carefully reviewed and re-reviewed information regarding this attack. “I will tell you it has done so more than mindful of the Iraq experience. We will not repeat that moment.” Laying out the evidence, Kerry said Assad’s government has the largest chemical weapons program in the Middle East and was determined to rid the Damascus suburbs of the opposition. “We know that for three days before the attack, the Syrian regime’s chemical weapons personnel were on the ground in the area, making preparations,” Kerry said. “And we know that the Syrian regime elements were told to prepare for the attack by putting on gas masks and taking precautions associated with chemical weapons.” He said rockets were launched from Assad-controlled areas and fell only on opposition-controlled areas, and he pointed to the thousands of reports and videos on social media from 11 sites in Damascus showing the impact of the attacks.

“We saw rows of dead lined up in burial shrouds, the white linen unstained by a single drop of blood,” he said. “We know that a senior regime official who knew about the attack confirmed that chemical weapons were used by the regime, reviewed the impact, and actually was afraid that they would be discovered,” Kerry said. “In all of these things that I have listed, in all of these things that we know - all of them - the American intelligence community has high confidence, high confidence. This is common sense. This is evidence. These are facts.” “GLOBAL CONFLAGRATION” Some allies have warned that military action without U.N. Security Council authorization may make matters worse. Russia holds veto power as a permanent U.N. Security Council member and has blocked three resolutions meant to press Assad to stop the violence since a revolt against him began in 2011. Western diplomats say they are seeking a vote in the 15-member Council on a draft measure, which would authorize “all necessary force” in response to the alleged gas attack, to isolate Moscow and show that other nations back military action. But China said there should be no rush to force a council decision on Syria until the U.N. inspectors complete their work. “Before the investigation finds out what really happened, all parties should avoid prejudging the results, and certainly ought not to forcefully push for the Security Council to take action,” Foreign Minister Wang Yi told U.N. Secretary-General Ban Ki-moon in a phone call, Xinhua reported. The United Nations said its experts had completed the collection of samples and evidence from last week’s attack. U.N. spokesman Martin Nesirky said all the analysis of the samples must be completed before conclusions can be drawn and it was not clear how long that would take. Elaborate bio-metric analysis of blood, hair or urine samples is expected to be done in laboratories in Sweden and Finland, which are among 22 used by the Organisation for the Prohibition of Chemical Weapons (OPCW) in 17 countries. U.N. High Representative for Disarmament Affairs Angela Kane left Damascus on Friday via Beirut and was expected to stop in Istanbul before heading for New York. (Additional reporting by Matt Spetalnick, Andrea Shalal-Esa, Patricia Zengerle, Thomas Ferraro and Jeff Mason in Washington, Erika Solomon and Oliver Holmes in Beirut, Khaled Yacoub Oweis in Amman, Sarah Marsh in Berlin, Timothy Heritage in Moscow, Phil Stewart in Manila, Louis Charbonneau and Michelle Nichols at the United Nations, Lidia Kelly in Moscow, Ben Blanchard and Michael Martina in Beijing, John Irish in Paris and Andrew Osborn, Marie-Louise Gumuchian and Peter Apps in London. Reuters

WHAT HAPPENS IN SYRIA AFTER THE TOMAHAWKS HIT?

S officials hope that any military assault on Syria will be surgical and limited. But what does the US do after the missiles or bombs have fallen? It could go either way. The US may attack - or may not. “I’ve not made a decision,” US President Barack Obama said on Wednesday. Mr Obama has maintained that if the Syrian government uses chemical weapons, the US will act militarily. And last week, according to US officials, President Bashar al-Assad’s forces deployed poison gas against rebels in a Damascus suburb. More than 1,000 people, including women and children, were reported killed. Syrian government officials say they did not use chemical weapons, but the US is ready to act.

government motion supporting intervention in Syria. Nor is the UN Security Council expected to support an attack, because the Russians are opposed. The US military would most likely use Tomahawk cruise missiles for an attack on the Syrian government forces. These missiles are now stored on destroyers in the eastern Mediterranean. The missiles would not be fired at places where chemical weapons might be stored, since poisonous gas could spread or chemical agents could fall into the wrong hands. Instead, military facilities would be targeted - radio centres, command posts and missile launchers, says Douglas Ollivant, who served as an operations officer with the Army’s Fifth Cavalry Regiment in Iraq. The initial military operation would be fast.

‘WE ARE PREPARED’ UN inspectors are looking for evidence of a gas attack in the Damascus suburb, and plan to finish their work on Friday. Meanwhile officials in Washington DC are laying the groundwork for military operations. “We are prepared,” Defence Secretary Chuck Hagel told the BBC. If US officials proceed with military operations, they will likely be supported by Turkey and France, at least in some fashion. They will not have the backing of the UK, where Parliament on Thursday night rejected a

PUBLIC OPINION “It would be a fairly short, sharp action - much like Operation Desert Fox,” a 1998 military operation in Iraq, says Peter Mansoor, an Ohio State University professor of military history who served as executive officer for David Petraeus, a retired US Army general, in Iraq. Mr Obama has been looking for a clean way to retaliate against the Assad regime for the chemical weapons. Missiles seem to offer that. If he proceeds, he will follow a long line of US presidents who have tried to avoid bloody ground battles.

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The missiles would likely be deployed from the sea, without putting Americans in danger. This option is more palatable to the US public than the deployment of ground troops. Most Americans do not want the US to get involved in the Syria conflict, according to a Quinnipiac University poll. Yet roughly half of the Americans polled said they were open to military action - if the operations were done from a distance.

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“START QUOTE Indeed, remotely controlled attacks such as air strikes have been called “the American way of war” by the authors of an article in Foreign Affairs magazine. Unfortunately, the notion of effective and pain-free distance warfare is illusory. In March 2003, the US “shock and awe” bombing campaign in Iraq did not on its own bring down Saddam Hussein. “It still required a ground force invasion,” said Kalev Sepp, a former special forces officer who is now a senior lecturer at the US Naval Postgraduate School. Besides that, bombs and missiles are only as effective as the intelligence targeting them. In 1998, US cruise missiles destroyed a pharmaceutical factory in Sudan, because intelligence analysts had believed it to be a chemical weapons factory. An earlier military strategy based on remotely controlled strikes, the Nato air war in Kosovo, has reportedly been discussed during high-level Obama administration meetings about Syria. Not everything went smoothly during that bombing campaign, either - the US blew up the Chinese embassy. “There’s these mistakes - shortfalls - and they have counterproductive value,” says Mr Sepp.

YOU FAILED’ Mr Obama says that the objective of any military strike would simply be to warn the Assad regime not to use chemical weapons again. “The Assad regime, which is involved in a civil war trying to protect itself, will have received a pretty strong signal,” Mr Obama said. What happens afterwards, though, is anybody’s guess. “They don’t want to do something that could look like an empty gesture,” says Suzanne Nossel, who served as a deputy assistant secretary of state during Obama’s first term. “They’ll wait for a reaction. Does Assad step it up with the rhetoric - ‘you failed in Iraq, you failed in Vietnam’? Or does he take the beating?” If the Assad regime decides to ratchet things up, Mr Obama has an array of options - none of them good. “The range is, you do nothing - all the way up to largescale air and ground campaigns to remove the Assad regime,” says Mr Sepp. “You can send in special forces to train and organise the rebels. But it’s impossible to do that clandestine. So then you have to have Americans on the ground - and they’re being killed. Is that worth overthrowing the Assad regime for?” bbc.co.uk

FOREIGN PRESS September 02, 2013 #19

caucasian business week

GEORGIA’S BILLIONAIRE PRIME MINISTER SPREADS RICHES, PLANS POLITICAL EXIT

own an unmarked path, through two electronic gates, lies the lush, 94-acre coastal estate of Bidzina Ivanishvili, the billionaire prime minister of ex-Soviet Georgia. His wealth equals 35 percent of the country’s $15.8 billion economy. What Ivanishvili will do next with his billions is a hot topic in a country that has had more than its share of drama. The businessman emerged from years of obscurity in 2011 to announce that he was financing a political coalition to win 2012’s parliamentary elections against the party of Georgia President Mikheil Saakashvili. The Georgian Dream coalition— the name comes from a rap song by Ivanishvili’s son—beat the president’s party and took control of the legislature. Saakashvili remained president, but with the parliament in opposition hands, he had to accept Ivanishvili as his prime minister starting in October of last year. The tycoon got to name a cabinet of his own ministers; Saakashvili was isolated in the presidential palace. Saakashvili’s term ends in November, and Ivanishvili says he will step down before the new year prior to the end of his term. “I get no pleasure from politics, it’s not in my character,” he says, sitting on his terrace overlooking the Black Sea. Ivanishvili says he’ll continue “keeping tabs on the government,” though he dismisses speculation that he will be offstage, secretly running Georgia. “Why should I be an informal leader when I can be the formal leader?” he asks. Ivanishvili certainly doesn’t need a prime minister’s salary. His Black Sea estate includes a private beach, two pools, two guest houses, and a menagerie of lemurs, zebras, peacocks, parrots, and flamingos. His main residence outside Tbilisi is a $50 million complex designed by Japanese

architect Shin Takamatsu. His $1 billion art collection, in London for safekeeping, includes a Picasso bought for $95 million in 2006. Ivanishvili says he’s spent $3 billion of his own money in Georgia, buying boots for soldiers and patrol cars for police as well as restoring museums, theaters, and churches. He’s paid for roads, hospitals, and schools in his birthplace of Chorvila. He says he is committing $1 billion to a new $6 billion private equity fund that will invest in tourism, agriculture, industry, and energy projects alongside the government. The idea is to persuade investors their money is safe in Georgia, which has a bright future as a regional trade and energy hub, says central bank chief Giorgi Kadagidze. To Saakashvili, Ivanishvili’s billions put Georgia’s status as a model of democracy at risk. “If your personal wealth is a significant part of your country’s GDP, then the temptation is too big to take over without proper qualifications and to monopolize,” he says. Western investors have largely steered clear of Georgia since the arrests of dozens of former officials started late last year, including an ex-prime minister, after the Ivanishvili government took power. The charges were for alleged abuse of office and graft: The one trial held so far ended in the acquittal of an ex-defense minister and seven other former officials. Saakashvili himself may face corruption charges after he loses immunity on leaving office, says Ivanishvili. Saakashvili calls the accusations against him “ridiculous.” The drop in fresh outside capital has halved the country’s growth rate to an estimated 3 percent this year. Growth averaged 6 percent from 2004 to 2012. Saakashvili won praise from abroad for curbing corruption, privatizing state companies,

US-GEORGIA MILITARY COOPERATION NEEDED AS GEORGIA’S ENERGY SECURITY NEEDS RISE WITH OIL AND GAS PIPELINES

ituated on the eastern shore of the Black Sea, the former Soviet republic of Georgia is looking west, to the U.S., for energy security needs as a new Georgia-Azerbaijan gas pipeline is under ecological review. If approved, the Red Bridge-Marneuli pipeline will bring natural gas to Samtskhe-Javakheti, a town in Georgia. U.S. Defense Secretary Chuck Hagel met his Georgian counterpart, Defense Minister Irakli Alasania, last week at the Pentagon, where they both agreed to expand defense cooperation. A Department of Defense spokeswoman said that while energy security was “not a specific topic of discussion at this meeting, energy security is an important aspect of our cooperation with Georgia, as it is with many of our partner nations.” Five years after coming out on the losing end of a brief war with Russia over a rebellious ethnic minority region, Georgia has emerged as a key player in helping to move energy resources from the Caspian Basin through two current pipelines, the Baku-Tbilisi-Erzurum (BTE) gas pipeline and the Baku–Tbilisi–Ceyhan (BTC) oil pipeline. Baku is the capital of Azerbaijan, Tbilisi is the capital of Georgia, and Ceyhan and Erzurum

are in Turkey. “Georgia has contributed to the energy security of Eurasia and has accumulated vast experience in implementation of important transnational energy projects,” said Valeri Chechelashvilli, deputy foreign minister of Georgia. The 609-mile BTE pipeline transports natural gas produced in the Sha Deniz field, located in the Azerbaijani sector of the Caspian Sea, to Georgia and on to Turkey. Perhaps the most important pipeline that passes through Georgia is the BTC, which transports about 1 million barrels of crude oil from oil fields in the Caspian Sea to the Turkish coast of the Mediterranean, where it then is shipped via tankers to European markets. In 2006, Russia, with a flip of a switch, cut natural gas supplies to Ukraine because Kiev did not want to pay a hike in prices, leaving Europe in the cold. The BTC pipeline was built as a way to decrease Europe’s dependence on Russian oil and gas by transporting both oil and gas through a pro-Western country. In recent years, Russia’s huge state-run energy company, Gazprom OAO (MCX:GAZP), has faced difficulties as it has been forced to sell natural gas to Russian consumers at below-market prices. Previously it could make up for the subsidies by selling large volumes of gas to Europe at higher rates, but that has changed thanks to new pipelines bringing natural gas from the Caucasus.“The Baku-Tbilisi-Ceyhan pipeline is a major success for the U.S. goal of enhancing and diversifying global energy supplies,” the U.S. State Department said in May 2005. The U.S.-Georgian relationship has warmed over the years, especially since Georgia still has combat troops assisting NATO forces in Afghanistan. ibtimes.com

and eliminating red tape. He was also accused of cracking down on the opposition and the media. Mass protests erupted a few weeks before last year’s election over leaked footage of prison guards beating and raping male inmates with broom handles. Ivanishvili’s successor as prime minister is expected to be one of his allies, allowing the billionaire to wield influence over what will probably be a weak government run by the Georgian Dream coalition, says Alexander Rondeli, a Georgian political analyst. Ivanishvili is a “really smart” businessman who had to resort to “ruthlessness” at times in Russia, where he made a fortune in the 1990s, according to former Georgian Econo-

my Minister Kakha Bendukidze. Ivanishvili cofounded a bank that invested in privatized mines and factories. In 2003 he returned home. Saakashvili stripped Ivanishvili of his citizenship in 2011: The parliament changed the constitution to allow European Union citizens to occupy political office (Ivanishvili had obtained a French passport earlier). Authorities later briefly impounded a Georgian bank that the billionaire owns. “He wants to live in a Georgia which is safe for him, his family, and his wealth, especially taking into account that his wealth is above any other wealth in Georgia,” says Bendukidze. In politics “he will become like a godfather.” businessweek.com

YES, NATO SHOULD LET GEORGIA IN

f all the arguments on the question of NATO expansion, it is particularly interesting to see anti-NATO campaigners attempts to articulate why growing the Atlantic Alliance is at odds with the purpose of an organization whose utility they are apparently unable to fathom. Unsurprisingly, the rhetorical gymnastics tend to quickly give way to misrepresentation as the contradictions become too difficult to manage. Such was the case with CATO Institute scholar Doug Bandow’s cri de coeur in the National Interest against the prospect of Georgian NATO membership. Citing my April briefing in World Politics Review, Bandow somehow counts Georgia’s planned force modernizations as evidence that Tbilisi finds it “cheaper to campaign for a NATO security guarantee.” In reality, the Georgian defense ministry’s reforms should make the country better able to defend its borders, not less. The conscript-staffed, heavier force structure being phased out is an actual postSoviet relic, as Bandow so often labels NATO. Scrapping this shambolic structure in favor of a professional, mobile, and Western-trained force, battle-hardened in Iraq and in Afghanistan’s unforgiving Helmand Province, provides far greater capability for Georgia’s territorial security and as a potential NATO asset. It’s true that Georgia’s heavy losses in Afghanistan are leading some to call to question the utility of the mission (so far, however, only a narrow minority). However, this is more a function of Georgians’ frustrations with NATO’s perceived slowness to recognize their country’s outsized contributions and sacrifices. In a July poll, 73 percent supported their country’s NATO aspirations and 79 percent supported joining the EU. This is a country that seriously wants to be a part of the Euro-Atlantic community. Contrary to Bandow’s characterizations, there are some strong U.S.-interests-oriented arguments for bringing Georgia into the Atlantic Alliance. For one, the eastward expansion of a liberal, rules-based system can only be a good thing for the United States, which is fundamentally safer and more prosperous when its core values are embraced throughout the world. And for all their

imperfections and stumbles, Euro-Atlantic institutions like NATO and the EU remain the surest and most successful vehicles of this agenda in Eurasia. Categorical critics of NATO like Bandow accuse the organization of being without a mission since the Soviet Union’s disintegration, but somehow fail to recognize that the Cold War success of NATO was as much sociopolitical as it was military. While the Atlantic Alliance was surely a hard-nosed defensive bulwark against the specter of Soviet imperialism, it was as much a political operation that embraced and advocated for EuroAtlantic’s common liberal-democratic values (albeit not always perfectly). The Soviet Union may be no more, but the forces of authoritarianism remain active and, in some ways, are gaining ground. As the Central Asia-Caucasus Institute’s Mamuka Tsereteli rightly points out, the fate of Georgia’s Euro-Atlantic bid will have a radiating effect on its neighbors in the Caucasus, Black Sea, and Caspian regions. Regional modernizers that aspire to a liberal democratic future are closely watching Georgia’s impressive push for integration. If Georgia—which is returning to a positive trajectory of political development and making great pains to stabilize its regional relations—is frozen out of the defensive club indefinitely, this would actively disincentivize democratization as well as future economic or security cooperation. nationalinterest.org

INTERVIEW September 02, 2013 #19

caucasian business week

GOVERNMENT TO DEVELOP PLAN ZURAB ABASHIDZE: ON RESOLVING PROBLEMS BEFORE RUSSIA WILL SIMPLIFY PRIVATE INSURANCE COMPANIES VISA REGIME WITH company “Alfa’’ to leave the universal health GEORGIA care project.

meeting of the Interagency Commission devoted to the current problems of the insurance companies has completed. The meeting was attended by the representatives of insurance companies. The meeting focused on two main issues: the problems arising between the state and private insurance companies and a desire of the insurance

David Sergeenko notes that the state is ready to discuss the problems of the private insurance companies. They will develop a detailed plan on how to develop and overcome problems. “They will identify with a specific timetable if any insurance company refuses to participate in the universal health insurance project, then the state will take care of every individual and the insured,” - said the Minister. Earlier it was reported that Moratorium would be imposed on the insurance companies for a certain period. According to the Minister, Ministry of Health informs the government that before the penalties which should be implemented for insurance companies in September, Moratorium will be declared in order the existing infrastructure problems to be solved. However, the Moratorium does not apply to arrears of wages.

INFRASTRUCTURE MINISTRY TO LAUNCH THREE NEW PROJECTS

he Ministry of Regional Development and Infrastructure is launching new projects aimed at prevention of natural disasters, tourism development, promotion and improvement of water supply systems in villages. More than 400 million GEL were allocated from the budget for this purpose. The Minister of Regional Development and Infrastructure David Narmania announced at a special briefing on Monday. “I would like to introduce three new initiatives, as a result of our work and monitoring conducted in regions. The first proposal concerns the increasing number of natural disasters in recent years, our work and monitoring showed that the flooding is mainly caused by destroyed drainage system and water collectors in urban areas of many municipalities, “- Narmania says.

he Russian Federation is expected to simplify the visa regime with Georgia in the near future, Zurab Abashidze, a special envoy of the Georgian Prime Minister told Russian media agencies. Simplified visa regime will be available for Georgian citizens who have business visits or invitaions of relatives. “Meeting will be held between representatives of transportation companies to remove visa regime restrictions for representatives of Georgian companies”, Zurab Abashidze told reporters. The visa regime will be simplified in the near future, Abashidze added.

CIGARETTE EXCISE TO INCREASE IN SEPTEMBER, PHILIP MORRIS PRICE INCREASED

rom September 1 tobacco excise increases by 25%. According to government decision, excise fee on unfiltered cigarette increases by 5 Tetri, on the filtered cigarettes - by 15 Tetri. According to existing regulation, excise rate on 20-pieces filtered cigarettes is 60 Tetri, unfiltered ones - 15 Tetri. From September 1, excise will equal respectively to 75 Tetri and 20 Tetri. Expected excise increase already raised prices

on the certain bran cigarettes. Philip Morris produced cigarette prices already increased on the market (Marlboro, L&M, Parliament, Chesterfield). Other producers plan to review cigarette prices in September. Reminding that the government approved tobacco control strategy, which considers gradual excise increase on cigarette. The activity aims to reduce tobacco consumption in the country.

CARREFOUR TO OPEN THIRD ASSET IN TBILISI IN DECEMBER

hird Carrefour trade object will be opened in December in Tbilisi. Carrefour hypermarket will be located on the first store of GTC trade center, on the place of Populi. Populi leaves the area on September 1, which is related to the company strategy. New management plan is to enlarge network and focus on small-size su-

permarkets. It’s noteworthy that one of the largest hypermarkets networks of the world Carrefour has opened only one supermarket in Georgia, located in the trade center Tbilisi Mall. The French company already stated that they’re going to open a new trade object in the trade center Karvasla, where Goodwill operated before.

HEAD OF NATIONAL INVESTMENT AGENCY:MAJOR RUSSIAN SOCAR EX MANAGER TO HEAD INVESTORS ARE WAITING FOR KAZTRANSGAS TBILISI PRESIDENTIAL ELECTIONS TO MAKE azTransGas- Tbilisi” will have allowed to return in the company. a new special manager. Irakli “The return of “KazTransGas- Tbilisi” to Kazakh INVESTMENTS IN GEORGIA Gabunia, who worked as Deputy side was one of the main topics during Energy

arge Russian investors awaited presidential elections in Georgia and the National Investment Agency regularly conducts negotiations with them. The Head of the agency George Pertaia told commersant.ge. He says that after the presidential elections in Georgia, the number of investments will increase and it will be reflected in figures since 2014.

“There is certainly interest from Russian investors, during this time we have met with many investors. They really have the desire to invest in Georgia, it will be reflected in figures in 2014. “There is no undesirable investor for Georgia, there is an improperly drawn up contract,” - Pertaia said in a conversation with commersant.ge. Recall that it is estimated that Russia will deliver USD 8 billion worth investments if the presidential candidate from the party Georgian Dream wins the elections in October 2013, a person close to the Georgian Government told The FINANCIAL. The agency is not aware of the named 8 billion investment. However Pertaia notes that Russian businessmen are interested in Georgia in different directions, including manufacturing and tourism. In his words, identity of investors will become known only if they want it themselves. “To explain better why we don’t name the Russian investors interested in the Georgian market, I’ll give an example of “Tata Group”: during the talks with this company, an investor asked us not to make any statements on this issue before they held an international press conference and didn’t announce about their plans. This company is trading on the international stock market and any information that is spread about it, could influence the prices of its shares, “- explains Pertaia.aq pertaias

Director of “SOCAR” company in Georgia, is likely to replace Ani Taktakishvili on the position. Commersant.ge was told at Georgian Energy and Water Regulatory Commission (GNEWRC) that a few days ago they had received a letter of resignation from a former interim manager Ani Taktakishvili. The Commission has reviewed the application and issue has been solved positively. Afterwards, GNERC, in accordance with the law, submitted a petition concerning the appointment of Irakli Gabunia to the Kutaisi City Court. An interim manager, who was appointed by the state due to a 40 million USD debt, has been managing “KazTransGas- Tbilisi” since 2009. The temporary management’s authority has been extended until June 2014. However, as the Energy Ministry explains, as soon as the negotiations between the parties are held and the debt is repaid (even before one year), in accordance with the laws of Georgia, the Kazakh side will be

Minister’s visit to Astana. Kakha Kaladze explains that the government has already received a decision about the return of the Tbilisi gas distribution company to the Kazakh party. He notes that Prime Minister Bidzina Ivanishvili was also involved in consultations. But when Kazakh management will be returned to the company, is still unknown. From time to time, it’s been reported that “KazTransGas- Tbilisi” may be sold. A couple of weeks ago the company’s Managing Director Sanzhar Shokataev said in a conversation with commersant.ge: “I do not know, it’s just a rumor”.

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QARVA BEER APPEARS IN NEW PACKING

RESTAURANT GRUZINSKY

waiting for you with love!

Qarva beer has been introduced in the market in a new packing. The management has been developed the new deisgn for a year. Both glass and plastic containers have been redesigned. Qarva beer appeared on the market in 2009 and the rebranding process was carried out by consumers request.

NEW BRANDED CHEESE - RACHULI TRADITION TO ENTER GEORGIAN MARKET

n August 31, international organization CARE will present Racha cheese varieties made by traditional technologies on the first regional traditional winery festival in Ambrolauri, in the framework of the project: Rural Development in Racha-Lechkhumi. The project Rural Development in Racha-Lechkhumi assists farmers in high quality traditional cheese producing. Festival guests will acquire to the new branded cheese - Rachuli Tradition, which will appear on Georgian cheese market soon.

Organization CARE informs that the cheese Rachuli Tradition was created in the Racha highland village Shqmeri, in the enterprise equipped with modern technology, which enables to employ people and encourage 30-40 farmers to sell milk. All these will improve economic situation for the village Shqmeri residents. On the first regional traditional winery festival also 80 locally produced wines, Racha cheese and honey will be represented. Festival guests will be able to taste traditional culinary and attend folklore concert. The event aim to popularize Racha agricultural products, which will promote business relations among local farmers and market. Project Rural Development in Racha-Lechkhumi is implemented by CARE International Caucasus, with cooperation of the local NGO Abkhazintercont. The project is funded by Swiss Development and Cooperation Agency (SDC) and it aims to promote sustainable increase of farmers’ income in the livestock farming; also stimulate diary and meat production.

WENDY’S FIRST RESTAURANT WILL OPEN IN TBILISI ON SEPTEMBER 12

From Pg. 1

ntering on the dynamically growing Georgian market is part of Wendy’s development plan in the eastern Europe. We are proud that development of this brand was exclusively Wissol Group responsibility both in Georgia and Azerbaijan. Product and service quality is main priority both Wissol and Wendy’s. Wendy’s is one of the leading and well-known brands in the United States. It’s distinguished with high quality. Wendy’s restaurant will be opened in Tbilisi on September 12”, - Wissol Group president Soso Pkhakadze states. He also mentions that he believes Wendy’s brank meals - beef and chicken burgers, Chilly, vegetable salads, baked potato made upon order and many others will attacked even the most demanding customers”. Expert of Italian Truchilo Stavros Lamprindis is a winner of 12 barista international contests and award-winner. Wendy’s face, with his assistance, will offer 15 kinds of coffee to the consumers, such as: espresso, espresso macchiato, Americano, cappuccino, Late, caramel macchiato, mocha and so on. About 80 persons will be employed in the Wendy’s first restaurant. Famous American designer company created interior of Rustaveli Avenue restaurant. Georgian organization designbureau.ge also participated in the design process.

IC GROUP OFFERS NEW PRODUCT TO TRAVELLERS

nsurance company IC Group offers new product to travelers. With this new offer, from September the consumers will be able to purchase travel insurance from home. Product is available on the website: www.ictravel.ge.

Company management explains that to get police, the buyer passes through several steps, after which IC Group currier will take it to the desired address. Through the project the consumer saves time and additional expenses. “Travel insurance sale peak is in summer, although recently consumer habits. Entrance of various air companies changed consumer attitudes. Respectively, product launching on the fall will not threat to its success”, - IC Group states. Presentation of the product - online travel insurance will be held on August 30, in Krtsanisi residence.

new restaurant already famous for its delicious dishes and immediate attitude of friendly and warm staff opened in Mtkheta - an ancient and one of the prettiest towns of Georgia. The name Gruzinsky is rather distinguished and meaningful since it is not just a restaurant or a regular food spot. Gruzinsky is a new brand having far-reaching large-scale goals oriented on becoming the worldwide famous after the first implemented steps in Mtkheta. The restaurant is located in the best area in the Mtskheta Boulevard, 200 meters from Samtavro Monastery on the edge of the road. It has its own parking and security service providing safety to you and to your vehicle. The old historical monument “Bebris Tshikhe” (The castle of an old man) and “Theatroni Park” are situated nearby with only a 300-meter distance. The interior design with its warm color tints and pleasant aura will provoke your sense of comfort and the feeling of freedom from the first minute. Beautiful nature and picturesque views will foster your peace of mind and leisure. Gruzinsky is the house of love, affection, warmth and friendship. Its doors are always open to friends. The colorful menu unites and mixes Georgian and European cuisines. The restaurant offers constant discounts. You only need to visit Gruzinsky once to gain the status of a friend enabling you to have 20% perks each time you visit.

The restaurant is comprised of three parts: bar, hall and terrace. Each hall can host 50 guests; the terrace can hold 40 visitors. We plan to open an outdoor jazz-café which will encourage your desire to visit us to enjoy the venue. You can spend a splendid and romantic time with us in the company of your favorite people; celebrate birthdays or corporate parties; plan business meetings; presentations and buffets. In any case the time spend with us will be joyful and memorable for you in the long run. We assure you Gruzinsky is the place you would feel yourselves at home. Phone and/or online booking guarantee your order or plan your event with a professional knowledgeable manager. Free Wi-fi will help you stay connected; Gruzinsky tourist services offer you tours to Mtskheta-Mtianeti and other regions of Georgia. Guaranteeing your travel with their mini buses and taxis. Visit Mtkheta, see Jvari (Cross), Svetitskhoveli (The living pillar), Samtavro and Shiomgvime (Cave of Monk Shio) Monasteries, and at the end of the day rest and enjoy delicious dinner at the restaurant Gruzinsky. Gruzinsky – waiting for you with love! Address: 156a Agmshenebeli Street, Mtskheta, GE – 3300. Phone: +995 322 512472; +995 555 41833 E-mail:Gruzinsky.ge@gmail.com www.facebook.com/RestaurantGruzinsky Skype: Gruzin.Sky

GEORGIAN RAILWAY FREIGHT TURNOVER DECLINES

he company informs that in JanuaryJune Georgian Railway served to 10 267 777 tons of freight, which is 1,37 million tons less compared to 2012 analogic period data. According to company statistics, in the 7 months 2012 only export freights increased. In JanuaryJuly the company shipped 950 458 tons of export freights, which is 7281 tons more compared to the same period 2012. Local shipments of 1 503 714 tons were made through railway. In JanuaryJuly 2012 this data equaled to 1 784 151 tons. Imported freights amount, shipped by Georgian Railway, has declined by 477 366 tons, to 1 341 290 tons. Transit freights have declined by 631 406 tons, to 6 472 315 tons. In the current year Georgian Railway is characterized by freights turnover decline. The only exception was January-March data, when amount

of the freights shipped by the company had increased by 5605 tons compared to the same period 2012.

STATISTICS caucasian business week

September 02, 2013 #19

BUSINESS September 02, 2013 #19

caucasian business week

SAVSE - POPULAR GEORGIAN BRAND IN LONDON Natural juices of the SAVSE brand created by Georgian entrepreneurs are very popular at the London supermarkets. The company was founded and developed by 28-year-old Georgian youngman GUKA TAVBERIDZE. SAVSE is a sole soft drink of mixture of fruits and vegetables. The company uses entirely new technology - cold pasteurization maintains the natural tast, vitamins and minerals that are lost during the heating pasteurization. The product design is creative and precisely describes the mian message: the product is useful for health! At this stage, SAVSE is sold is such popular networks as Selfridges, Harrods, Harvey Nichols, Planet Organic and so on. Guka Tavberidze left Georgia when he was only 7 years old and his family moved to Great Britain. He loves Georgia and has got many friends. Marketer.ge has interviewed Guka Tavberidze.

-We know before this business you had worked for one of the global companies for 5 years with good wage. Why have you decided to launch your own business and take such risks? - I always wanted to launch my own business. I wanted may values to manage my life, not my managers at the work. In general, why should I work for other people, when I can create job places for others and employ people? Not money, but the wish to overcome the obstacles has motivated me. A person is valued not by his property, but by his potential and ability for creating something new and valuable. - How was the business idea born? -My mother, Nina, lacked for iron in her blood during pregnancy. The doctor advised to have a juice of spinach and apple. To neutralize the tast of spinach, Nina started mixing various fruits. As a result, she received very tastful and useful drink that became a favorite one for the whole family and it represents inseparable part of you everyday life. In one ordinary evening in 2011, we had active family discussion over business ideas. At the table, my mother handed over a glass of juice of vegetables and fruit. I drank the juice and suddenly I realized I was losing time on other business ideas, while I had one in my hand. From the very first minutes I was sure I could create successful brand that would provide valuable competition to similar products on the market: I selected Georgian appellation of SAVSE (full), because this product is full of vitamins and other natural ingredients. -What obstacles have you met before and have you every dounts ab out implementing your business idea?

- It would take several days to name all obstacles. Despite I had passed business courses, read many books and received advices from many experienced entrepreneurs, nothing would prepare me against the arisen difficulties. Sometimes I thought I hade taken very difficult business and I could not continue it any more, but that moment I was always saying to myself obstacles were temporary, but the regret of surrender would accompany me to the end. That moment I promized to myself to fight to the end and never to surrender, not to avoid difficulties and to find ways to overcome them. It does not matter how many times you fall, you must rise and continue the way, the way to your dreams! -Your product is sold in such high-level British stores as Selfridges, Harrods, Harvey Nichols, Planet Organic and so on. How have you managed to draw their attention? - This was one of the main difficulties and I had to exert enormous efforts and make much job to overcome them. At the beginning, no one wanted to meet with me. This was not surprising. A lot of entrepreneurs are trying to draw their attention and this is a difficult process. I have sent hundreds of emails and made a lot of phone calls. I was longing for success. Without preliminary appointment, I was visiting them with my product in hand, was meeting them at the entrance of their offices and asked them to spend only two miutes. I was sure in two minutes I could draw their interest to my product. In the end, this really happened. - What are your future plans? - The present is very important to me to overcome the current difficulties. I believe SAVSE will have valuable, competitive and responsible brand name on the global market. I do not know what the future will bring, but I know I will never step back and do my best. - Finally, what would you advise to beginner entrepreneurs? - I would like to tell them use the sense of fear as a main motivator. The fright of failure, unclear future and difficulties hampers people tochange their lives. At the same time, nothing compares to the pleasure of overcoming these frights. Difficulties on the way to the success may hamper you to outline the success plan, but you must never surrender! You should desire success as much as breath and you will definately reach the goal. Author:Maka Kuparadze

CORPS TO CAREER: KARGI GOGO ALL THE WAY FROM GEORGIA

PCVs Sean and McKinze Cook (Georgia 2010-2012) always wanted to start their own business, but had no idea what it would be — until they were noshing on some of their host community’s cuisine. “One day near the end of our service, while brainstorming what life after Peace Corps could look like, our host mother called us in for an afternoon snack of khachapuri. As she buttered and sliced the gooey, cheesy, delicious bread, we knew we had to find a way to introduce it to Americans.” In early 2013 Sean and McKinze opened Kargi Gogo, a food cart in Portland, Ore., that serves authentic Georgian street food. “Food was a natural way for us to connect to Georgians,” McKinze said. “Our business is 100% inspired by Georgia: the incredibly friendly, hospitable people; the proud, traditional culture; and, of course, the flavorful and fresh cuisine.” Opening Kargi Gogo was a way to bring the Peace Corps experience back to the states. “Serving popular items from Georgia gives us the opportunity to not only introduce this unique cuisine to Americans, but also to talk about Georgia, its people and its culture on a daily basis. Since Georgian food is hard to find, we have become a gathering spot for immigrated Georgians, Russians and others who have fallen in love with Georgian food at some point.” Sean and McKinze’s service in Georgia began after they graduated from college in Iowa and decided they were ready for something different. “We always wanted to travel and that quickly led to our wanting to live abroad. We applied for the Peace Corps specifically because we knew it would offer us the opportunity to not only visit a different part of the world but integrate into a community and culture totally different than ours,” McKinze said. A short time later they were on their way to Eastern Europe. The two quickly fell in love with Georgia’s scenic landscapes, friendly people and delicious food. Serving as Social Entrepreneurship and

Organizational Development Volunteers, Sean and McKinze worked with several Georgian NGOs. McKinze volunteered with a women and girls’ empowerment organization that focused on health, democracy promotion and education. “I am most proud of my work raising funds and awareness for my organization’s women’s health clinic and of the development of several health resources (DVD lectures and activity books).” Sean worked with a minority integration organization and a youth center, where he assisted with grant writing, project development and training. He also worked closely with a youth group for under-privileged children. Even with the nonstop schedule of volunteering, Sean and McKinze found time to spend Georgia’s home kitchens and restaurants; learning about the unique spices that make Georgian food so delicious and making traditional recipes. “We helped prepare supras (traditional Georgian feasts) and made homemade wine. We also learned to roll dumplings at a Georgian friend’s restaurant,” McKinze said. Kargi Gogo was the natural way to take the next step in their professional lives. McKinze and Sean plan to expand Kargi Gogo’s hours and menu and eventually take it beyond Portland. Everything we are doing is related to our service, and we couldn’t be happier about that.” McKinze’s also has advice for prospective Volunteers. “[Bring] flexibility and a sense of adventure! Service will likely not be what you expected, but that doesn’t have to be a bad thing.” “All RPCVs get a discount at Kargi Gogo, located in Portland at 950 SW Washington Street. Find more info online at kargigogo.com and @KargiGogoPDX on Facebook, Instagram and Twitter.” passport.peacecorps.gov

BANKING NEWS caucasian business week

LIBERTY BANK SIGNS MEMORANDUM WITH EDUCATION MINISTRY

o develop professional education, cooperation memorandum was signed among Ministry of Education and Science Liberty Bank and 12 professional educational institu-

tions. Ministry of Education informs that cooperation memorandum was signed by - Minister of Education and Science Tamar Sanikidze, director general of Liberty Bank George Arveladze and heads of public colleagues: New Wave, Mermisi, Iberia, Opizari, Pazisi, Prestige, Modus, Horizon, Black Sea, Information System of Education Management, Shota Meskhia Zugdidi State Educational University and Samtskhe-Javakheti State Educational University.

The cooperation includes providing professional training, promoting further employment of the students and raising qualified personnel. According to memorandum, Ministry of Education and Science, in the framework of qualification framework review, will provide company information and involvement in the scheduled activities, also their involvement in the review/ elaboration process of the professional standards and professional orientation activities. Liberty Bank will provide internships for the students, who are participants of professional memorandum. It will enhance professional students’ motivation, acquiring practical component and development of professional skills.

TBC BANK’S RATIO ON RETAIL LOANS PORTFOLIO SHRINKS

y August 1 2013, TBC bank’s share on the retail lending market equals to 23% (01/01/13 - 25%). Besides, individuals’ loan portfolio increased by 76 million GEL (8,8%), to 935,4 million GEL (01/01/13 - 859,5 million GEL). Overal loan portfolio of the bank equals to 2,296 billion GEL (01/01/13 - 2,249 million GEL). Amount of commercial banks’ credit investments (including loans issued for non-resients) equals to 9,1 billion GEL. Among them individuals’ credit portfolio equals to 4,057 billion GEL.

COMMERCIAL BANKS EXPENDITURES ON STAFF

he amount of money spent by the commercial banks on their employees has increased by 8.5 times between 2003 and 2013. The figure reached the 210 923 000 GEL mark during the first half of the current year. According to the National Bank’s statistics, the banks were steadily increasing their payments towards supporting the apparatus between 2003

and 2008, although their spending in this direction was reduced by 11 million GEL in 2009, following the war with Russia in previous year. However, the figures started to increase once again in 2010, and during the first half of 2011, the banks spent up to 193 million GEL to support their employees, which represented an 18 million GEL increase compared to the same period in the previous year.

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BANK SECTOR’S TOTAL ISSUE HITS YEAR’S MAXIMUM IN JULYverall issue of the banking sector

reached annual maximum in July. According to Geostat preliminary data, total issue of the banking sector was 83,2 million GEL in

July. Total issue of the commercial banks reached to annual maximum, which equaled to 76,4 million GEL, also total issue of the National Bank - 6,8 million GEL. Overall issue of the commercial banks equaled to 62,6 million GEL in January, 59,2 million GEL - in February, 65,3 million GEL in march, 73,3 million GEL in April, 71,5 million - in May, 65,3 million - in June. Overall issue of National Bank was 6,5 million GEL in January, 4,9 million in February, 5,6 million - in March 6 million - in April, 5,7 million in May, 5,7 million in June.

PROCREDIT BANK’S STAFF JOINS ECO-ACTIVITY

epresentatives of Pro Credit Ban eco-subdivision and about 50 employees of the bank cleaned 5-km Machistsikhe route, located in Lagodekhi proteted territory. They also particiapted in the crossing bridge and stairs rehabilitation works. Eco-activity was held on August 24. Deputies Protected Territory Agency Lasha Moistsrafishvili and Bakur Kvaratskelia, also Caucasus Nature Funds programs director Daniel Sepic also visited Lagodekhi protected territories along with Pro Credit Bank employees. The bank informs that in June of the current year, on the basis of the agreement signed by Protected Territories Agency of Georgia, Pro Credit Bank

and Caucasus Nature Fund (CNF), Pro Credit Bank assigned funds for the operational expenses of the Lagodekhi protected territory. It’s third year Pro Credit Bank cooperates with Protected Territories Agency and Caucasus Nature Fund. In previous years, with the Bank support, rehabilitaiton of tourist path Ninoskhevi Fall was carried out, trash bins were delivered to the park adminsitrations. This year, to provide visitors and ranger’s comfortable hourseback relocation, Lagodekhi protected Territories adminsitration got horse bags from the bank. Bank’s management states that environmental protection and any other related activity is very important for them and the bank will continue working in this direction.

TBILISI INTERNATIONAL FESTIVAL OF THEATRE International Program 22 SEPTEMBER, 2013 “derdiedans is a performance that has all the gratuitousness, if you will, of our daily existence, with many games that we carry out graciously or laughably, coated with an amalgam of things that are familiar up to the point of confusion” BASED ON A CONCEPT BY FLORIN FIEROIU

DERDIEDANS Body Context Performance Director and Artistic coordination - Florin Fieroiu

About performance: A non-narrative show. Altered images of a body decomposed in gestures. Non-psychological trajectories. Coherent assertions projected in a puzzled syntax. Parity in opinions. A mechanism for a subject. A triangle, a bicycle, four poles, an elastic wall, a table, a washing machine. Functional. A human installation with ten actors. Contagious fervour or paralyzing fear. Declaimed or undeclared expectations. What should I… The strongest desire… What I forgot to… Yesterday, it really doesn’t exist anymore. The one from a second ago is dead. Nothing imposed. Nothing to rule out: stress, ignorance, disgust. About the consistency of dysfunctionality. About the effect of magnesium deficiency or surplus on the physical as well as the psychological state. About life and self-induced amnesia. Duration: 90 minutes (approximately) Without Intermission Web-site : http://www.germantheatre.ro/ www.tbilisiinternational.com www.facebook.com/TbilisiInternational

PUBLICITY September 02, 2013 #19

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ARMENIA

ARMENIAN BERRIES CULTIVATED WITH SPECIAL TECHNOLOGY EXPORTED TO PERSIAN GULF COUNTRIES

he strawberry and rapsberry growing with special technologies in Akunk village of Armenian Kotayk region 1 meter above the ground and in boxes which are put on the ground are exported to United Arab Emirates. “Armenpress” reports that about this informed

one of founders of “Biga” Armenian-Dutch joint company Rafik Eganyan during press conference on August 28. The berries are fed by drip method. “This nice technology is not very laborious. Just one person by clicking a button can do all the irrigation and fertilization problems of the territory. The harvest mainly is exported to United Arab Emirates, Bahrain, Qatar and other countries of Persian Gulf,” mentioned Eganyan adding that part of berries is sold in Armenian market. The average strawberry yield is 45-50 tones from one hectare and raspberry – 10 tones from one hectare. He clarified that the strawberry is grown above the ground in order to exclude infection with land deceases. He also informed about exporting berries to Russia. The businessman is sure that rmenia can become one of leading countries of fruit and berry export.

ARMENIA INCREASES IMPORT OF FISH PRODUCTS BY 40 PERCENT

ARMENIA’S APRICOT EXPORTS HIT RECORD HIGH THIS YEAR - 23,240 TONS rmenia’s apricot exports this year

were as large as never before – 29 companies and 514 individuals took 23,240 tons of apricots this year out of the country, the press office of the agriculture ministry reports. According to the report, the country exported 84% more apricots this summer than in 2012. Some 19,810 tons were sent to Russia, 2,593 tons to Georgia and 668 tons to Ukraine. Small batches were exported also to other countries. The press office said that sales to canneries are already completed. This year 28 canneries purchased 13,044 tons of apricots against 8,855 in the previous year (47% growth). ARKA

EXPORT FROM ARMENIA TO RUSSIA EXCEEDED TURKMENISTAN AND HONG KONG INDICATORS

he volume of imported fish, fish caviar and artificial caviar to Armenia increased by 40 percent in the first half of 2013 compared with the same period of he previous year. According to data of State Revenue Committee in the first half of this year to Armenia were imported 412.3 tones of fish, fish caviar and artificial caviar (293.4 tones in the first half of 2012). The fish products are mainly imported from Latvia, Ukraine and Russia. “Armenpress” reports that the fish product imported to Armenia this year cost 1 million USD. In 2012 to Armenia were imported 726 tones of fish, fish caviar and artificial caviar compared with 1290.7 tones in 2011.

ARMENIA’S PEACH EXPORT EXCEEDS 700 TONS

he peach export from the Republic of Armenia exceeds 700 tons, which exceeds the peach export volume of the previous year for 71.4 percents. The Deputy Minister of Agriculture of the Republic of Armenia Robert Makaryan stated this in a conversation with “Armenpress”. Among other things the Deputy Minister of Agriculture of the Republic of Armenia Robert Makaryan underlined: “At the present moment Armenia has exported 720 tons of peach. The laying-in volume equals to 460 tons.” In addition the Deputy Minister of Agriculture of the Republic of Armenia told us that by August 28 the Republic of Armenia exported 775 tons tomato and the laying-in volume reached 6000 tons.

ARMENIAN GREENHOUSE TOMATO WILL BE EXPORTED TO RUSSIA

he tomato grown under Dutch technologies in greenhouse farms of Armenian Kotayk region is planned to export to Russia at the end of the year. About this informed founding director of “Mavas Group” LLC Armen Mkrtchyan during press conference on August 27. He mentioned that construction of greenhouse farms began in 2011. It is planned to expand greenhouse

September 02, 2013 #19

caucasian business week

economy. “Last year were totally installed Dutch technologies, it gave perfect results and the company decided to build several other greenhouse farms. It is planned to finish those works at the end of the year,” mentioned the director of the company, reports “Armenpress”. Mkrtchyan clarified that in greenhouses are grown vegetables mainly tomato. “We have preliminary arrangements with Russian importers and according to those arrangements at the end of November or in the beginning of December we will begin the export process,” said Mkrtchyan adding that it is planned to export annually around 6 000 tones of vegetables to Russia and other CIS member countries. He mentioned that almost 70 percent of exported vegetables will be tomato. Armen Mkrtchyan also spoke about state support mentioning about Armenian government’s decision to postpone the VAT paying of goods existing 300 million AMD.

he total export volume from the Republic of Armenia to the Russian Federation during the months January-June 2013 exceeded the same indicators of Turkmenistan, Kyrgyzstan and Tajikistan taken together by $2,9 million. According to the data provided by the Customs Service of Russia, during the first six months of 2013 Russia imported goods from Ar-

menia for $147,9 million, from Turkmenistan – $75,8 million, from Kyrgyzstan – $48,9 million and Tajikistan - $20,3 million. As reported by Armenpress, during the first six months of 2013, by the total Russian-export indicator ($147,9 million) Armenia exceeded the indicators of New Zealand ($140,3 million), Luxembourg ($92,9 million), Hong Kong ($71,4 million), Peru ($53,8 million), Cyprus ($33,1 million), Malta ($19,4 million) and several countries more. During the months January-June 2013 Russia imported goods from the Islamic Republic of Iran for $250,4 million and from Georgia for $25,3 million. In the first six months of 2013 the total volume of the trade turnover of Armenia and Russia (import and export together $600,5 million) exceeded the indicators of Portugal (595,6 million), Australia (412,4 million), Chili (394,5 million) and was close to the indicators of Argentina (649,7 million) and Iran (769,4 million).

HONG KONG IMPORTS ARMENIAN BUILDING STONES

n the first six months of 2013 the volume of export of marble, travertine, limestone tuff and other limestone from the Republic of Armenia has increased by more than 45% in comparison with the same period

of 2012. According to the data provided by the State Revenue Committee at the Government of the Republic of Armenia, in the first six months of 2013 1600,7 tons of marble, travertine, limestone tuff and other limestone were exported from the Republic of Armenia in comparison with the 1101,2 tons of the same period of 2012. As reported by Armenpress, during the first six months of 2013 the abovementioned stones were exported to China (83,5 tons), Croatia (57,3 tons), France (54,6 tons), India (49,4 tons) and Hong Kong (40,5 tons). During the first half of the year of 2013 Hong Kong purchased from the Republic of Armenia 4,4 tons of granite, basalt and sandstone as well.

EXPORT OF ARMENIAN PAINTINGS INCREASED

he volume of the artistic paints imported to Armenia in the first half of 2013 has increased by about 54% in comparison with the same period of 2012. According to the data provided by the State Revenue Committee at the Government of the Republic of Armenia, the total customs value of the imported artistic paints made $125,300. As reported by Armenpress, in the first half of 2013 the paints were imported to the Republic of Armenia mainly from the Russian Federation (13,1 tons) and China (4,2 tons). At the same time, in the first half of the year of 2013 the volume of the paintings, exported from Armenia, has increased by about 11% in comparison with the same period of the year of 2012, making 323 pieces. armenpress.am

AZERBAIJAN September 02, 2013 #19

caucasian business week

AZERBAIJANI OIL FUND’S GOLD PURCHASES REACH NEARLY 25 TONS

he state oil fund SOFAZ, an entity that accumulates and manages Azerbaijan’s oil and gas revenues, purchased 24,887 kilograms (800,146 ounces) of gold as of August 26, SOFAZ toldTrend news agency. Some 12,007 kilograms (386,018 ounces) were delivered to Azerbaijan. According to the plans, SOFAZ buys gold in batches, and this process will take place over two years. The fund began buying gold in the first quarter of 2012, and as of July 1 the amount of the purchased gold amounted to 22,399 kilograms (720,146 ounces). The first batch of gold (32,150 troy ounces) was delivered to the country on January 11, while the second batch was brought on February 1 and the third batch on March 1. Earlier SOFAZ head Shahmar Movsumov said

the fund plans to bring its gold reserves to 30 tons by late 2013. SOFAZ buys gold on the London Metal Exchange. SOFAZ was established in 1999 with assets of $271 million. The main purposes of the fund are the accumulation of funds and placement of assets abroad to minimise the negative impact on the economy, preventing the ‘Dutch disease’, to ensure savings for future generations, and to maintain the current social and economic standards in the country. According to SOFAZ’s investment strategy, up to five percent of the fund’s total investment portfolio may be invested in stock, up to five percent in real estate, and another five percent in gold. As of July 1, the oil fund’s assets increased by 1.6 percent compared to the beginning of 2013 (over $34.129 billion), and amounted to over $34.678 billion.

AZERBAIJANI OIL FUND CITES REVENUES FROM ACG, SHAH DENIZ PROJECTS

ince early 2001, the state oil fund SOFAZ, an entity that accumulates and manages Azerbaijan’s oil and gas revenues, has received over $89.428 billion within the implementation of the project on developing the giant Azeri-ChiragGunashli (AGC) block of oil and gas fields in the Azerbaijani sector of the Caspian Sea, SOFAZ told Trend news agency on August 28. According to SOFAZ, from early 2013 to August 26 it has received over $10.657 billion under the ACG project. The ACG block of fields has been producing since 1997. The production started from the Chirag part of the field and continues successfully. This was followed by the Azeri Project: Central Azeri production started in February 2005, West Azeri began producing in December 2005, and East Azeri came on stream in October 2006. The Deepwater Gunashli section launched production in April 2008. Equity participation in the ACG contract is as follows: BP (operator) with 35.78 percent, Chevron with 11.27 percent, Inpex with 10.96 percent, AzACG with 11.65 percent, Statoil with 8.56 percent, Exxon with 8 percent, TPAO with 6.75 percent, Itochu with 4.3 percent; Hess has sold its 2.72 percent share to India’s ONGC.

Furthermore, since 2007 SOFAZ has received over $1.467 billion within the implementation of the project on the development of the giant Shah Deniz gas condensate field in the Caspian Sea. According to SOFAZ, the volume of revenues to the fund within the Shah Deniz project amounted to $254.6 million from early 2013 to August 26. The Shah Deniz field, which is one of the world’s largest gas-condensate fields, was discovered in 1999. Its reserves are estimated at 1.2 trillion cubic meters of gas. Overall, the field has proved to be a secure and reliable supplier of gas to Azerbaijan, Georgia and Turkey as well as Europe. Currently, the potential daily volume of production at Shah Deniz is 27.3 million cubic meters of gas (depending on demand) and 55,000 barrels of condensate. SOFAZ was established in 1999 with assets of $271 million. The main purposes of the fund are the accumulation of funds and placement of assets abroad to minimise the negative impact on the economy, preventing the ‘Dutch disease’, to ensure savings for future generations, and to maintain the current social and economic standards in the country. According to SOFAZ’s investment strategy, up to five percent of the fund’s total investment portfolio may be invested in stock, up to five percent in real estate, and another five percent in gold.

AZERBAIJAN UPS COTTON EXPORTS

zerbaijan exported chemical industry products worth $37.31 million in January-July 2013, which is less by 64.39 per cent than the indicator for the same period of 2012. According to a report from the Azerbaijani State Customs Committee, this constitutes a drop of 0.27 per cent from the total export figure. The majority of exports for the first seven months of 2013 (83.62 per cent) fell to crude oil. The figure was $11.59 billion which is 4.2 per cent less than the indicator for the same period last year. For the same reporting period, oil products were exported to the sum of $731.89 million, an increase of 4.94 per cent in a year which was 5.28 per cent of the country’s total export figure. This is while exports of natural gas in the past year increased by 45.14 per cent to 494.23 million manat which constitutes 3.56 per cent. Exports of ferrous metals and related products stood at $68.24 million, a decrease of 11.37 per

cent and the share in total exports was 0.49 per cent. Cotton was exported worth $13.9 million, an increase of 2.1 times with its share in the total export figure as being 0.1 per cent. Aluminium and its related products were worth $49.26 million, a decrease of 15.09 per cent and the share of total exports was 0.36 per cent. Vegetables and fruit were $99.39 million, a decrease of 1.68 per cent and share in total exports of 0.72 per cent. Alcoholic and non-alcoholic drinks were $16.97 million, increase of 59.8 per cent and share in total exports of 0.12 per cent. Vegetable oils and animal fats reached $133.55 million, an increase of 6.65 per cent and the share in the total export figure of 0.96 per cent. Tea was $23.8 million increasing 7.23 per cent and a share in total exports of 0.17 per cent, sugar was $144.32 million increasing by 27.33 per cent and a share in total exports of 1.04 per cent. In January-July 2013 export operations were carried out to the sum of $13.86 billion that is 1.55 per cent less in comparison with the same period of 2012. According to the January-July results, imports make up $6.18 billion that is 16.63 per cent more that the same period in 2012. This means there is a positive balance of $7.7 billion in foreign trade. The total turnover of goods of Azerbaijan constituted $20.05 billion and that exceeds the indicator for the past year by 3.42 per cent.

AZERBAIJAN ENACTS LAW ON PROTECTION OF BUSINESSMEN

zerbaijani President Ilham Aliyev has signed a decree to approve the law aiming to improve the business environment and create favorable conditions for the work of entrepreneurs in the country, which was passed by the country’s parliament in early July. The main objective of the law “On protection of the interests of entrepreneurs and regulation of controls exercised in the entrepreneurship sector” is to formulate single principles of control over entrepreneurial activity as well as to prevent illegal interference in the work of entrepreneurs during check-ups. The new legislation restricts audits which are irrelevant to the new requirements. According to the law, while implementing audits businesses will be divided into groups with high, middle and minor risk. The entrepreneurs who did not commit law violations for a certain period of time will be included in the group with small risk. The duration of planned audits of large entrepreneurs should not exceed 10 days and those over middle and small entrepreneurs will last five days, while unplanned check-ups of major entrepreneurs should not exceed five days and those

over middle and small businessmen -- three days. According to the legislation, unplanned checkups will be conducted not at the request of the supervisory authority, but only in specific cases should the law require. For example, such audits may be necessary if the decision on eliminating the violations revealed as a result of a previous check-up is not executed. Furthermore, it is planned to determine and approve the list of supervising bodies in order to prevent independent undertaking of control duties by executive authority bodies. The number of the bodies exercising the control will be significantly reduced in the future as well. The President of Azerbaijan instructed the Cabinet of Ministers to draft a law that defines the types of responsibility for the violations of the law, proposals to eliminate cases of repeat powers of supervisory bodies, to determine the criteria of large, medium and small business entities and submit them to the President. According to international practice, there are one or two such supervisory bodies in a country. A hotline will be created in Azerbaijan in each controlling body, enabling businessmen to get answers to their questions.

AZERBAIJAN, IRAN TO COOPERATE WITHIN ADB ROAD PROJECT

contractor for the reconstruction of the third section of the MasalliAstara Highway will be defined after reaching agreement with Iran over the work on construction of bridge envisaged within this highway project, a source in the Azeryolservis JSC of the Azerbaijani Transport Ministry told Trend. “The contractor on conducting of construction work in this section hasn’t been determined yet. The issue will be more topical only after Azerbaijan and Iran agree and clarify the issue of conducting work on the border, in particular, on the bridge construction,” the source said. Referring to the construction work in A and B sections of the road, the source said that work in the first section continue despite the delays. “There are certain delays, which can be explained with significant volume of work in this road section,” he noted. According to him, currently, the constructor company --Turkish “Özgün Yapı” -prepares to start construction work on the second section of the highway. This highway project is implemented through

the funds attracted from the Asian Development Bank and the country’s government. The loan worth around $200 million was allocated by the Asian Development Bank for construction of the highway’s first (A) section (22.15 kilometers) and to date, up to 50 per cent of the resources has been used. Azerinshaatservice is the contractor for the construction of the highway’s first (A) section. The work in B and C sections is planned to be completed by 2016 as the time for the use of loan resources extended for two years due to delays in attracting contractors. The contractor will construct two-lane road length 19.35 kilometers, 10 bridges, two intersections and pedestrians, four recreation areas and a drainage system. The work in these sections will be financed at the expenses of the agreement signed on July 27, 2012 in Baku on allocation of the third tranche in the amount of $200 million from around $500 million worth first program of multi-tranche crediting (Multiannual Financial Framework) for road network.

AZERBAIJAN EXPORTS 25.4 MILLION TONES OF OIL

zerbaijan transported 25.4 tons of crude in January-July of this year through its main oil pipelines, the State Statistical Committee reported. Three-fourths of this volume was transported by the Baku-TbilisiCeyhan (BTC) pipeline. The total length of the

BТС pipeline, which carries crude oil from the Azeri-Chirag-Gunashli oil fields in the Caspian Sea to the Turkish Mediterranean coast, is 1,768 kilometers, including the 443 kilometer section running via Azerbaijan, the 249 kilometer section via Georgia and 1,076 kilometers via Turkey. azernews.az

12 Kazakhstan

hailand plans energy coop with Kazakhstan. Thailand intends to cooperate with Kazakhstan in the energy sector, Thailand’s Energy Minister Pongsak Ruktapongpisal said on August 19 during a meeting with Kazakh Ambassador to Thailand Marat Yesenbayev, Kazakhstan’s Foreign Ministry said. According to the Thai minister, his country is interested in investing in the construction of thermal power stations in the Central Asian state. Kazakhstan’s favorable geographical location can be used for export of energy surplus to neighboring countries, opening up great opportunities for potential investors from Thailand, he said.

Turkmenistan

urkish “Gap Inşaat” to build huge sea port in Caspian Sea. Recep Tayyip Erdoğan, Turkish Prime Minister, has recently visited Turkmenistan to discuss expansion of Turkish business in a country. One of the landmark projects that were launched during his visit is the construction of a huge sea port at the city of Turkmenbashi. The total area of the port is to reach over one million square meters. Construction of the largest port in the Caspian region will also include construction of whole pack of infrastructure facilities and whole project is to be finished in 48 months. German “Inros Lackner AG” will provide design and engineering services.

Uzbekistan

olar power plant will cost $ 200 million. In the Samarkand region of Uzbekistan country’s first solar power plant will be built. The designed capacity of the new solar power plant, according to Uzgosenergonadzor, estimated at 100 MW with a production of 200 million kW / h of electricity per year. The feasibility study of this project is being coordinated with the relevant ministries and departments of Uzbekistan. Among the identified sources of financing of the construction of solar power plant in Samarkand are - $ 107 million due to a line of credit of the Fund for Reconstruction and Development of the Republic of Uzbekistan, $ 90 million - of the Asian Development Bank loan and $ 10 million - from Uzbekenergo’s own budget. It is reported that the tender for a general contractor for the construction of the new facility will be announced before the end of this year.

UKRAINIAN CAR PRODUCTION HALVES IN JANUARY-JULY

espite recent government measures to boost domestic car production, Ukraine’s automobile output slumped nearly 50 percent year-on-year in the first seven months of 2013, according to Xinhua. Industry body Ukravtoprom Analysis Group reported Friday a total of 23,311 vehicles were produced in Ukraine in the January-July period, some 23,205 units less than a year earlier. During the reporting period, the country’s passenger car output declined by half to 21,353 units, while commercial vehicle production dropped 56.2 percent to 875 units, and buses output stood at 1,083 units, down 40.7 percent, the report said. In July alone, the country’s vehicle production fell 24.5 percent year-on-year, but rose 11 percent on a monthly basis to 5,500 vehicles, it said. The government in April imposed emergency tariffs of 6.46 to 12.95 percent on auto imports in a bid to encourage domestic sales. unian.info

CIS caucasian business week

September 02, 2013 #19

BELARUS TARGETS RUSSIAN BILLIONAIRE AS ‘POTASH WAR’ INTENSIFIES

uleiman Kerimov, a majority shareholder in Uralkali, could be the next victim in the ‘potash war’ as diplomatic relations sour between Minsk and Moscow. A main shareholder in Uralkali, Kerimov may soon join Uralkali CEO Baumgertner in jail, as Belarusian investigators claim they have ‘reason’ to open a criminal case against him, Pavel Traulko, a spokesman for Belarus’s Investigative Committee told Itar-Tass on Thursday. The spokesman didn’t give any specifics on how Belarus would proceed with criminal charges, but said”no special knowledge of the law is required to understand how investigators might classify Kerimov’s actions.” Russia has demanded Baumgertner be released from the soviet-style detention center in Minsk. Belarus’s refusal has prompted coercive trade tactics from Moscow. Potash is a key ingredient in the fertilizer farmers use to grow crops. Prices have fallen more than

5 percent since Uralkali withdrew from its joint venture with Belarus Potash Co ‘Belaruskali’, breaking up its world-wide pricing consortium overnight and causing potash stocks to crash. Suleiman Kerimov, formerly the majority shareholder in Uralkali, nearly halved his holdings in Uralkali in the last year, selling off before the stock plummeted when Uralkali unilaterally decided to exit the cartel on July 30. In August 2012, Kerimov held a 55.3 percent stake in the potash giant, but his stake was estimated at just 17.16 percent when Uralkali quite Belaruskali. Kerimov lost an estimated $375 million when Uralkali ended its pricing scheme with its Belarusian partner, which sent the company’s capitalization down to its lowest since November 2008. Kerimov didn’t buy into Uralkali until 2010, when he picked up fellow billionaire Dmitry Rybolovlev’s controlling stake. Before the 2008 crisis hit, Kerimov’s fortune

was estimated by Forbes at $17.5 billion, and by 2009 it had nearly vanished to $3.1 billion. The financial crisis nudged Kerimov to sell assets in Gazprom, Sberbank, and a real-estate project in Moscow, and to buy stakes in Morgan Stanley, Goldman Sachs, Deutsche Bank, Credit Suisse, and other western investments. Russia’s state pipeline group Transneft will cut 25 percent of oil supplies to Belarus in September, the latest gambit as trade tension intensifies between the two neighbors. The deliveries will be cut by 400,000 tons, the pipeline operator said, but added the restrictions are not related to Monday’s arrest. Routine maintenance, and a need to upgrade a section of the Druzhba pipeline, are the reasons Transneft vicepresident Mikhail Barkov told Interfax. Crude oil via Druzhba was cut in 2007 by Moscow because Belarus was siphoning off oil without permission. Urakali exited its trade alliance with Belaruskali over similar claims, as the Belarus company was selling outside of the trade alliance without permission. Belarus President Alexandr Lukashenko, who has ruled the former Soviet republic since independence in 1994, sold his country’s pipelines to Gazprom. Russia’s ambassador to Belarus, Alexander Surikov, was summoned to the Belarusian foreign ministry on Wednesday. Russia’s chief health inspector Gennady Onishchenko has raised concern over the quality of Belarusian dairy products, fanning rumors Russia may be moving towards a ban on Belarusian dairy products. Rt.com

RUSSIA HINTS AT ‘MILK WAR’ AFTER BELARUS TAKES ‘POTASH WAR’ HOSTAGE

ussia and Belarus could be on the brink of a renewed dairy war after the arrest of the Uralkali CEO in Minsk strained relations between the countries. Russia’s chief health inspector Gennady Onishchenko has raised concern over the quality of Belarusian dairy products. Of 240 samples taken in Moscow, 30 percent were of unsatisfactory quality, Interfax reported. Russia’s public health service is alarmed by the quality of cottage cheese and butter from Belarus. Onishchenko held meetings with Belarusian counterparts in August, and is urging them to adhere to current regulations and standards. “The specific gravity of milk in a large number of samples did not meet the requirements for microbiological, chemical indicators, including the content of antibiotics,” the health general said. A majority of Belarusian milk products end up on Russian shelves. In the first half of 2013, Belarus

exported more than $1 billion in dairy products to Russia, about 95 percent of total dairy exports.

Aleksei Kudrin who was withholding a $500 million loan to Belarus.

Arrest retaliation?

First potash, now milk

The quality inspection and announcement came two days after Belarusian officials detained the CEO of Uralkali the world’s largest potash producer. Vladislav Baumgertner ended a joint venture with a Belarusian trading partner in June. He was arrested while trying to leave Minsk airport after he was invited to the capital by the Belarusian Prime Minister, and is being held at a Soviet-style detention center. Dairy products account for 38 percent of all agricultural exports by Belarus, and a Russian ban would be crippling to the industry. Russia blacklisted 1,300 Belarusian dairy products in 2009, which led to a series of milk-motivated political stunts from President Alexander Lukashenko. He boycott a planned summit of former-Soviet states and then Finance Minister

The Kremlin is furious at the detention of Vladislav Baumgertner, who was lured to the Belarusian capital for a meeting with the Prime Minister, and then detained and arrested when he tried to depart Minsk airport. Both sides may use the arrest as an economic trade gambit. “The fact of Baumgertner’s detention and the media campaign around it doesn’t correspond to the nature of our relations as allies,” the Foreign Ministry in Moscow said on Tuesday. “What happened today is beyond all bounds. We think this is a very strange situation, given the nature of our relationship,” Russia’s Deputy Prime Minister Igor Shuvalov said. Russia hasn’t responded kindly to the detention, and Prime Minister Dmitry Medvedev has sworn to resolve the matter using all available means. Rt.com

SWINGING UKRAINE: RUSSIA REJECTS CUSTOMS UNION WITH EU-LOOKING NEIGHBOR

ussia says it won’t let Ukraine into its Customs Union, if it seals a trade agreement with the EU. This is likely to end long negotiations with Ukraine over its membership of the Russian-led club, as Kiev is expected to team up with the EU in November.

Further talks on a compromise for Ukraine’s participation in both - a trade alliance with the EU and the customs union of Russia, Kazakhstan and Belarus - are senseless, Russian First Deputy Prime Minister Igor Shuvalov said after the Russian-Ukrainian talks. “We were holding negotiations on the basis that they sign this agreement [with the EU -” Kommersant”]. Parallel to that they say what they want to join the Customs Union. They can speak about it, but can they do it? We realized that we did not see a compromise after we analyzed absolutely everything”, business daily Kommersant quotes Shuvalov. Moscow called on Kiev to be ready for a tighter customs regime such as the unified duty on all products. The free trade agreement between the EU and Ukraine would mean that about 95 percent of goods become subject to zero customs duty. As a result European goods will come to the Ukrainian market and then “will penetrate into the territory of the Customs Union uncontrollably”. Russian customs has placed extra checks on

Ukrainian imports on several days this month, causing massive holdups at the border. Russia stopped nearly 1,000 rail cars at the border, although the country’s authorities denied the move was political. Russia has tried to entice Ukraine into the union on the promise of discounted gas, but the offer hasn’t appeared to sway Ukraine away from Brussels, as President Yanukovych has repeatedly publicly critical of ‘unfair’ gas prices, and has already cut Gazprom imports by 40 percent year-on-year, instead seeking other energy suppliers. Ukraine’s exports to Russia totaled over $16 billion last year, nearly a quarter of all goods. The Russian presidential aide Sergei Glazyev estimated the loss to the Ukrainian economy as a result of the signing of the agreement with the EU, at 1.2% of GDP, Kommersant reports. The Federation of Ukrainian Employers, a business lobby group, estimate a trade restriction with Russia could cost Ukrainian companies up to $2.5 billion in losses. Rt.com

WORLD NEWS September 02, 2013 #19

caucasian business week

U.S. STOCKS RISE AS ECONOMY EXPANDS, SYRIA CONCERNS EASE

.S. stocks rose, sending the Standard & Poor’s 500 Index higher for a second day, as data showed the economy expanded at a faster pace in the second quarter and concerns over Syriaeased. Verizon Communications Inc. added 2.7 percent as Vodafone Group Plc said the companies are in talks over their Verizon Wireless venture. Guess? Inc. (GES) rallied 12 percent after the apparel maker reported second-quarter profit that exceeded analysts’ estimates. The S&P 500 rose 0.4 percent to 1,642.03 at 2:06 p.m. in New York, paring an earlier advance of as much as 0.7 percent. TheDow Jones Industrial Average gained 38.86 points, or 0.3 percent, to 14,863.37. “That’s just one confirmation that the data is continuing to move the right direction,” Anastasia Amoroso, global market strategist at J.P. Morgan Funds, which oversees about $400 billion, said in a phone interview. “That gives more evidence why the Fed should ultimately taper. But over the last couple of months the markets have been a lot more comfortable with that notion.” Gross domestic product rose at a 2.5 percent annualized rate, up from an initial estimate of 1.7 percent, Commerce Department figures showed today in Washington. The median forecast of 79 economists surveyed by Bloomberg projected a 2.2 percent gain. Jobless claims in the week ended Aug. 24 dropped 6,000 to 331,000 from a revised 337,000 the week before that was higher than initially reported, the Labor Department said today in Washington. The median forecast of 50 economists surveyed by Bloomberg called for a drop to 332,000.

Fed Stimulus

The equity benchmark has fallen 2.6 percent in August amid speculation the Fed will pare stimulus measures and concern the U.S. will take military action against Syria. Minutes of the Fed’s July meeting released on Aug. 21 showed policy makers supported cuts to the central bank’s bond-buying program this year if the economy improves in line with its forecasts. Fed stimulus helped push the S&P 500 up as much as 153 percent from its March 2009 low, data compiled by Bloomberg show. The prospect of imminent military strikes on Syria receded as the U.K. and France said they favor waiting for the results of a United Nations investigation into alleged use of chemical weapons. The U.S., which says it has evidence that Syria’s government was responsible, won’t act without allies, Defense Secretary Chuck Hagel said today.

Volume Falls

“We’re back to focusing on economic data, specifically out of the U.S. and Europe, and the Fed tapering, as the market is coming around to believe the Syrian conflict poses only a short-term risk,” said Manish Singh, who helps oversee $2 billion as head of investment at Crossbridge Capital in London. “I am of the opinion that tapering will happen in September, regardless of data.” Trading volume in S&P 500 stocks was 18 percent below the 30-day average at this time of day, two sessions before the Labor Day holiday weekend. Trading on U.S. exchanges is poised for the second-slowest month in at least five years, according to data compiled by Bloomberg. An av-

SYRIA SENDS OIL TO 2-YEAR HIGH, $150 SPIKE FEARED

il has jumped to a two-year high and could see Brent spike as high as $150 per barrel as US and western allies move towards a military strike on Syria. Follow RT’s live updates on Syria here. Brent October futures are above $115 per barrel and West Texas Intermediate blend (WTI) hit $110 on speculation unrest in Syria will disrupt oil shipments and supplies in the Middle East. For WTI its the highest price since May 2011. The US and Britain are gearing up in a coordinated military action against Syria, as both confirmed chemical weapons attacks were carried out against civilians, something the Assad government denies. The US-Syria standoff could send oil prices soaring, and Brent could ‘spike briefly’ to $150 a barrel if the US initiates a military attack on Syria, Societe Generale bank told Bloomberg on Wednesday. US Defense Secretary Chuck Hagel has given the green light to launch a strike against Syria, and is just waiting for the directive from President Obama. “The concern is that an attack on Syria will reverberate through the region, increasing the spill over into other countries and possibly resulting in a larger supply disruption elsewhere,” Michael Wittner, the head of oil market research in New York, said in an August 27 report. Oil-production in Syria is low, but its geographical position poses a threat to disrupt neighboring pipelines and seaways. Turkey, its northern neighbor, is home to 2 major pipelines that transport Iraqi oil to Europe and Central Asia. A conflict in Syria would benefit more ‘detached’ oil producing countries, like Saudi Arabia, which would be able to capitalize on supply chokes in Iraq and Iran. Saudi Arabia has the capacity to produce 9.8 million barrels of crude per day.

Simultaneous turbulent politics to the south in Egypt could also threaten global supply, as Egypt hangs in an unresolved state of emergency, fanning fears Suez Canal operations could be disrupted. A crucial trade route, the canal handles 800,000 barrels of crude a day and the SuezMediterranean Pipeline, which also runs through Syria, is a regional transport staple. A US-led strike would hook oil-rich Iran, a Syrian ally and OPEC member, into the conflict. Another big geo-political concern for oil investors is spill over into Iraq, a direct neighbor of Syria that produced 3 million barrels of crude per day in 2012. Many Syrian refugees have sought safety in Western Iraq. Hawkish military hints of intervention in Syria have sent prices up despite a 2.47 million barrel increase in oil supplies last week, as estimated by the American Petroleum Institute. Syria’s foreign minister has warned against military strikes and said his country’s defenses will ‘surprise’ the world. A US-led missile strike seems likely in the next week, according to most political commentators.

Russia’s stake in expensive oil Russia, an oil and natural gas dependent economy, and friend of numerous Middle Eastern oil producing states, has said it doesn’t plan to go to war with anyone over Syria, and the US may be jumping to conclusions. Russia’s economy counts on oil prices above $100 in order to adequately fund the budget, of which oil and gas revenue provide 50 percent of funds. The country’s reliance on oil prices in world markets makes it vulnerable to a surge in pricing, as the 2008 bust/boom dramatic rise and fall demonstrated. Russian officials, as well as investors, should fear any dramatic increases set off by Syria. Crude oil prices in the summer of 2008 hit a record high of $147 per barrel, and then by December 2008, the bubble had burst and Brent was trading near $40 a barrel. Chinese consumption and increased worldwide GDP, coupled with Syrian unrest, could create a demand bottleneck, and another bust/boom effect. Rt.com

erage of about 5.5 billion shares changed hands each day this month. That’s about 80 million shares more than last August. The Chicago Board Options Exchange Volatility Index, or VIX, increased 2 percent to 16.82. The equity volatility gauge has surged 42 percent since a five-month low on Aug. 5. Eight out of 10 main groups in the S&P 500 rose, with phone companies advancing 1.5 percent to lead gains.

Verizon Rises

Verizon Communications rose 2.7 percent to $47.83. The company is in advanced talks to acquire Vodafone’s 45 percent stake in their Verizon Wireless venture for about $130 billion, people with knowledge of the matter said. In a statement, Newbury, England-based Vodafone said there’s “no certainty that an agreement will be reached” as it holds discussions with New York-based Verizon. Bob Varettoni, a spokes-

man for Verizon, declined to comment. An S&P index of homebuilders climbed 2.4 percent, after dropping 3.7 percent over the previous two days. PulteGroup Inc. rose 3.2 percent to $15.87 and Lennar Corp. advanced 3.2 percent to $32.64. The Bloomberg U.S. Airlines Index rose 2.2 percent as US Airways Group Inc. advanced 5.3 percent to $16.15. Delta Air Lines Inc. jumped 2.3 percent to $19.56. Guess soared 12 percent to $30.70. Second-quarter adjusted earnings per share amounted to 52 cents, exceeding the average estimate of 35 cents in a survey of analysts. The company raised its full-year earnings guidance to $1.78 to $1.92 a share, from a previous prediction of $1.70 to $1.90. Analysts had forecast $1.79. Campbell Soup Co. fell 2.7 percent to $43.49 after the company reported fourth-quarter sales lower than analysts’ estimates. bloomberg

POLAND FIRST TO GET GAS FROM ‘FRACKING’ IN EUROPE

oland has begun a test extraction of shale gas in amounts not seen in Europe before. Eager to reduce energy dependency on Russia, Poland has succeeded after three international firms quit drilling in the country. Lane Energy Poland, controlled by ConocoPhillips, is now extracting some 8,000 cubic metres of shale gas per day at a test well in the northern city of Lebork in Poland, Reuters quotes a polish newspaper. Although the productivity of the site is lower than at gas fields in the US or Canada, it is still a breakthrough and marks the first positive result for shale gas extraction in Europe, according to the Poland’s Chief Geologist Piotr Wozniak. Another Polish refiner PKN Orlen is also expected to announce the production results of tests at its well in Syczyn in eastern Poland, one of the most promising in the country. Three international majors, Exxon Mobil, Marathon Oil, and Talisman Energy, dropped out of the programme after they failed to hit their targets. According to a June report by US Energy Information Administration (EIA), the estimates for Poland’s shale gas resources have fallen from 187 trillion to 148 trillion cubic metres.

Poland imports up to 70 percent of its gas from Russia and is eager to reduce its energy reliance on its neighbor. The country issued more than 100 shale gas exploration licenses to local and international firms which have drilled 48 wells so far. Poland’s shale gas breakthrough sparked talks on Warsaw’s getting rid of “gas dependence” on Russia in the near future, foreign media reports. However, the senior analyst at Investcafe consultancy Grigory Birg told Business RT, Polish shale gas may lead to minor reduction of gas price for Poland, but won’t have an impact on the amounts in acquires from Gazprom. “On the one hand, growth in the supply of gas through the active development of shale deposits may lead to some reduction in prices , however, given that the cost of shale gas extraction never exceeds the cost of traditional gas production, the potential for lower prices - is limited”, Birg told RT. Environmental concerns over the technology of fracking has divided European politicians and society. France and Bulgaria have completely abandoned the use of fracking. However, at the moment 12 European countries are running shale gas extraction tests, Reuters reports. Rt.com

US ECONOMIC GROWTH REVISED UPWARDS TO 2.5%

he US economy grew at an annualised pace of 2.5% in the second quarter of the year, the Commerce Department said in revised figures. That was more than double the pace recorded in the previous three months, and above estimates of 2.2%. The rise, helped by an increase in exports, is a further sign that the economy may be getting back on track. The government had originally estimated that GDP grew at a 1.7% rate in the second quarter. The revised non-annualised quarter on quarter figure was 0.6%, up from an initial 0.4% estimate. Housing and business investment, two key sectors of the economy, remained strong in the revised figures. Housing construction grew at an annual rate of 12.9%, the fourth consecutive quarter of doubledigit growth. Meanwhile, business investment was revised up to a 16.1% rate. The government also said data from retailers

showed they had restocked their shelves at a faster pace in the April-to-June period than first thought. The positive news could make US central bank economists more likely to begin reducing monthly bond purchases later this year. The programme is one of the US’s last stimulus measures. Economists think growth will stay at the 2.5% rate in the second half of the year, boosted by steady job gains and less drag from federal spending cuts. bbc.co.uk

EXHABITION caucasian business week

September 02, 2013 #19

TBILISI GUIDE September 02, 2013 #19

Embassy United States of America Embassy 11 Balanchivadze St., Dighomi Dstr., Tbilisi Tel: 27-70-00, 53-23-34 E-mail: tbilisivisa@state.gov; askconsultbilisi@state.gov United Kingdom of Great Britain and Northern Ireland Embassy 51 Krtsanisi Str., Tbilisi, Tel: 227-47-47 E-mail: british.embassy.tbilisi@fco.gov.uk Republic of France Embassy 49, Krtsanisi Str. Tbilisi, Tel: 272 14 90 E-mail: ambafrance@access.sanet.ge Web-site: www.ambafrance-ge.org Federal Republic of Germany Embassy 20 Telavi St. Tbilisi Tel: 44 73 00, Fax: 44 73 64 Italian RepublicEmbassy 3a Chitadze St, Tbilisi, Tel: 299-64-18, 292-14-62, 292-18-54 E-mail: embassy.tbilisi@esteri.it Republic of Estonia Embassy 4 Likhauri St., Tbilisi, Tel: 236-51-40 E-mail: tbilisisaatkond@mfa.ee Republic of Lithuania Embassy 25 Tengiz Abuladze St, Tbilisi Tel: 291-29-33 E-mail: amb.ge@urm.lt Republic of Latvia Embassy 4 Odessa St., Tbilisi Tel: 224-48-58 E-mail: embassy.georgia@mfa.gov.lv Greece Republic Embassy 37. Tabidze St. Tbilisi Tel: 91 49 70, 91 49 71, 91 49 72 Czech RepublicEmbassy 37 Chavchavadze St. Tbilisi Tel: 291-67-40/41/42 E-mail: czechembassy@gol.ge Web-sait: www.mzv.cz Japan Embassy 7 Krtsanisi St. Tbilisi Tel: 75 21 11, Fax: 75 21 20 Kingdom of Sweden Embassy 15 Kipshidze St. Tbilisi Tel: +995 32 2 55 03 20 , Fax: +995 32 2 22 48 90 Kingdom of the Netherlands Embassy 20 Telavi St. Tbilisi Tel: 27 62 00, Fax: 27 62 32 People’s Republic of China Embassy 52 Barnov St. Tbilisi Tel: 225-22-86, 225-21-75, 225-26-70 E-mail: zhangling@access.sanet.ge Republic of Bulgaria Embassy 61 Agmashenebeli Ave. Tbilisi Tel: 91 01 94, 91 01 95, Republic of Hungary Embassy 83 Lvovi Street, Tbilisi Tel: 39 90 08 E-mail: hunembtbs@gmail.com State of Israel Embassy 61 Agmashenebeli Ave. Tbilisi Tel: 95 17 09, 94 27 05 Embassy of Swiss Confederation’s Russian Federation Interests Section Embassy 51 Chavchavadze Av., Tbilisi Tel: 291-26-45, 291-24-06, 225-28-03 E-mail: RussianEmbassy@Caucasus.net Ukraine Embassy 75, Oniashvili St., Tbilisi Tel: 231-11-61, 231-12-02, 231-14-54 E-mail: ukraina_pu@wanex.net; emb_ge@mfa.gov.ua Consular Agency: 71, Melikishvili St., Batumi Tel: (8-88-222) 3-16-00/ 3-14-78 Republic of Turkey Embassy 35 Chavchavadze Av., Tbilisi Tel: 225-20-72/73/74/76 E-mail: turkemb.tbilisi@mfa.gov.tr Address: 8, M. Abashidze str. Batumi, Georgia tel: (8-88-222) 7 47 90 Republic of Azerbaijan Embassy Kipshidze II-bl . N1., Tbilisi Tel: 225-26-39, 225-35-26/27/28 E-mail: tbilisi@mission.mfa.gov.az Address: Dumbadze str. 14, Batumi Tel: 222-7-67-00 Fax: 222-7-34-43 Republic of Armenia Embassy 4 Tetelashvili St. Tbilisi Tel: 95-94-43, 95-17-23, 95-44-08 E-mail: armemb@caucasus.net Web: www.armenianembassy.ge Consulate General, Batumi Address: Batumi, Gogebashvili str. 32, Apt. 16

caucasian business week Kingdom of Spain Embassy Rustaveli Ave. 24, I floor, Tbilisi Tel: 230-54-64 E-mail: emb.tiflis@maec.es Romania Embassy 7 Kushitashvili St., Tbilisi Tel: 38-53-10; 25-00-98/97 E-mail: ambasada@caucasus.net Republic of Poland Embassy 19 Brothers Zubalashvili St., Tbilisi Tel: 292-03-98 Email:tbilisi.amb.sekretariat@msz.gov.pl Web-site: www.tbilisi.polemb.net Republic of Iraq Embassy Kobuleti str. 16, Tbilisi Tel: 291 35 96; 229 07 93 E-mail: iraqiageoemb@yahoo.com Federative Republic of Brazil Embassy Chanturia street 6/2, Tbilisi Tel.: +995-32-293-2419 Fax.: +995-32-293-2416 Islamic Republic of Iran Embassy 80, I.Chavchavadze St. Tbilisi, Tel: 291-36-56, 291-36-58, 291-36-59, 291-36-60; Fax: 291-36-28 E-mail: iranemb@geo.net.ge United Nations Office Address: 9 Eristavi St. Tbilisi Tel: 225-11-26/28, 225-11-29/31 Fax: 225-02-71/72 E-mail: registry.geo@undp.org Web-site: www.undp.org International Monetary Fund Office Address : 4 Freedom Sq., GMT Plaza, Tbilisi Tel: 292-04-32/33/34 E-mail: kdanelia@imf.org Web-site: www.imf.ge Asian Development Bank Georgian Resident Mission Address: 1, G. Tabidze Street

Freedom Square 0114 Tbilisi, Georgia Tel: +995 32 225 06 19 E-mail: adbgrm@adb.org; Web-site: www.adb.org World Bank Office Address : 5a Chavchavadze Av., lane-I, Tbilisi, Georgia Tel: 291-30-96, 291-26-89/59 Web-site: www.worldbank.org.ge Regional Office of European Bank for Reconstruction and Development Address: 6 Marjanishvili St. Tbilisi Tel: 244 74 00, 292 05 13, 292 05 14 Web-site: www.ebrd.com Representation of the Council of Europe in Georgia Address : 26 Br. Kakabadze, Tbilisi Tel: 995 32 291 38 70/71/72/73 Fax: 995 32 291 38 74 Web-site: www.coe.ge

Hotels in Georgia TBILISI MARRIOTT Tbilisi , 13 Rustaveli Ave. Tel: 77 92 00, www.marriott.com COURTYARD MARRIOTT Tbilisi , 4 Freedom Sq. Tel: 77 91 00 www.marriott.com RADISSON BLU HOTEL, TBILISI Rose Revolution Square 1 0108, Tbilisi Tel: +995 32 402200 radissonblu.com/hotel-tbilisi RADISSON BLU HOTEL, BATUMI Ninoshvili Str. 1, 6000 Bat’umi, Georgia Tel: 8 422255555 http://radissonblu.com/hotel-batumi SHERATON METECHI PALACE Tbilisi , 20 Telavi St. Tel: 77 20 20, www.starwoodhotels.com SHERATON BATUMI 28 Rustaveli Street • Batumi Tel: (995)(422) 229000 www.sheratonbatumi.com HOLIDAY INN TBILISI Business hotel Addr: 1, 26 May Square Tel: +995 32 230 00 99 E-mail: info@hi-tbilisi.com Website: http://www.hi-tbilisi.com BETSY’S HOTEL With Marvellous Tbilisi Views Addr: 32/34 Makashvili St. Tbilisi Tel: +995 32 293 14 04; +995 32 292 39 96 Fax: +995 32 99 93 11 E-mail: info@betsyshotel.com Website: http://www.betsyshotel.com

Restaurants CHARDIN 12 Tbilisi , 12 Chardin St. , Tel: 92 32 38 CHINA TOWN Tbilisi , 44 Leselidze St. (ent. from Chardin St.) Tel: 43 93 08, 43 93 80, Fax: 43 93 08 BREAD HOUSE Tbilisi , 7 Gorgasali St. , Tel: 30 30 30 BUFETTI - ITALIAN RESTAURANT Tbilisi , 31 I. Abashidze St. , Tel: 22 49 61 DZVELI SAKHLI Tbilisi , 3 Right embankment , Tel: 92 34 97, 36 53 65, Fax: 98 27 81 IN THE SHADOW OF METEKHI Tbilisi , 29a Tsamebuli Ave. , Tel: 77 93 83, Fax: 77 93 83 PICASSO Tbilisi , 4 Miminoshvili St. , Tel: 98 90 86 SAKURA - JAPANESE RESTAURANT Tbilisi , 29 I. Abashidze St. , Tel: 29 31 08, Fax: 29 31 08 SIANGAN - CHINESE RESTAURANT Tbilisi , 41 Peking St , Tel: 37 96 88 VERA STEAK HOUSE Tbilisi , 37a Kostava St , Tel: 98 37 67 BELLE DE JOUR 29 I. Abashidze str, Tbilisi Tel: (+995 32) 230 30 30 VONG 31 I. Abashidze str, Tbilisi Tel: (+995 32) 230 30 30 BRASSERIE L’EXPRESS 14 Chardin str, Tbilisi Tel: (+995 32) 230 30 30 TWO SIDE PARTY CLUB 7 Bambis Rigi, Tbilisi Tel: (+995 32) 230 30 30 LOFT 11. I. Mosashvili str, Tbilisi Tel: (+995 32) 230 30 30 RESTAURANT NERO 21 Abano Street, Tbilisi Tel: (+995 32) 292 10 15

SH. RUSTAVELI STATE THEATRE Tbilisi. 17 Rustaveli Ave. Tel: 93 65 83, Fax: 99 63 73 TBILISI STATE MARIONETTE THEATRE Tbilisi. 26 Shavteli St. Tel: 98 65 89, Fax: 98 65 89 THEATRE OF PANTOMIME Tbilisi. 37 Rustaveli Ave. Tel: 99 63 14, (77) 41 41 50 Z. PALIASHVILI TBILISI STATE THEATRE OF OPERA AND BALLET Tbilisi. 25 Rustaveli Ave. Tel: 98 32 49, Fax: 98 32 50

Galleries ART GALLERY LINE Tbilisi. 44 Leselidze St. BAIA GALLERY Tbilisi. 10 Chardin St. Tel: 75 45 10 GALLERY Tbilisi. 12 Erekle II St. Tel: 93 12 89 GEORGIAN NATIONAL MUSEUM - PICTURE GALLERY Tbilisi. 11 Rustaveli Ave. Tel: 98 48 14 KARVASLA’S EXHIBITION HALL Tbilisi. 8 Sioni St. Tel: 92 32 27, KOPALA Tbilisi. 7 Zubalashvilebi St. Tel: 99 99 02, Fax: 99 99 02 MODERN ART GALLERY Tbilisi. 3 Rustaveli Ave. Tel: 98 21 33, Fax: 98 21 33 M GALLERY Tbilisi. 11 Taktakishvili St. Tel: 25 23 34 ORNAMENT - ENAMEL GALLERY Tbilisi. 7 Erekle II St. Tel: 93 64 12, Fax: 98 90 13

Akhvledianis Khevi N13, Tbilisi, GE. +995322958377; +995599265432

Cinemas AKHMETELI Tbilisi. “Akhmeteli” Subway Station Tel: 58 66 69 AMIRANI Tbilisi. 36 Kostava St. Tel: 99 99 55, RUSTAVELI Tbilisi. 5 Rustaveli Ave. Tel: 92 03 57, 92 02 85, SAKARTVELO Tbilisi. 2/9 Guramishvili Ave. Tel: 8 322308080,

Theatres A. GRIBOEDOV RUSSIAN STATE DRAMA THEATRE Tbilisi. 2 Rustaveli Ave. Tel: 93 58 11, Fax: 93 31 15 INDEPENDENT THEATRE Tbilisi. 2 Rustaveli Ave. Tel: 98 58 21, Fax: 93 31 15 K. MARJANISHVILI STATE ACADEMIC THEATRE Tbilisi. 8 Marjanishvili St. Tel: 95 35 82, Fax: 95 40 01 M. TUMANISHVILI CINEMA ACTORS THEATRE Tbilisi. 164 Agmashenebeli Ave. Tel: 35 31 52, 34 28 99, Fax: 35 01 94 METEKHI – THEATRE OF GEORGIAN NATIONAL BALLET Tbilisi. 69 Balanchivadze St. Tel: (99) 20 22 10 MUSIC AND DRAMATIC STATE THEATRE Tbilisi. 182 Agmashenebeli Ave. Tel: 34 80 90, Fax: 34 80 90 NABADI - GEORGIAN FOLKLORE THEATRE Tbilisi. 19 Rustaveli Ave. Tel: 98 99 91 S. AKHMETELI STATE DRAMATIC THEATRE Tbilisi. 8 I. Vekua St. Tel: 62 59 73

THE BEST GEORGIAN HONEY OF CHESTNUTS,ACACIA AND LIME FLOWERS FROM THE VERY HART OF ADJARA MATCHAKHELA GORGE IN THE NETWORK OF GOODWILL

PUBLICITY caucasian business week

September 02, 2013 #19

Location City Batumi, Sarpi Black sea coast, on Silk Road, near Turkey-Georgia border checkpoint. 30 meters from the sea. There are shopping points near complex, Apsaros Castle and other sightseeings.

Hotel description Sarpi Resort Hotel & Restaurant â&#x20AC;&#x201C; at the Sarpi Black sea coast is located 3000 sq. m. modern hotel complex, near Turkey-Georgia border, 30 meters from the sea. Hotel complex is isolated, equipped with surveillance cameras, security and parking system, which provides safe and comfortable environment for guests. There is indoor and outdoor type of restaurant, cafĂŠ in the hotel complex. Our restaurant has Georgian and Turkish cuisine. Bar occupies 370 square meters in the hotel complex, with wide range of drinks. The hotel has fitness and entertainment room for guests (for free). Throughout the territory of the Hotel complex operates a 24-hour high-speed wireless Internet access, which is also free of charge. Sarpi Resort Hotel & Restaurant also offers sailing with boat and scooter in the sea. As well arranges special A la Furshets and banquets.

Cottage Description

WWW.SARPIRESORT.GE; Tel: +995 422 21 25 00 / 01; Mobile Phone: +995 577 43 00 03; FACEBOOK: Sarpi Resort Hotel

Hotel Complex has modern, luxerous 14 units cottage. Cottage is 2 storied, rooms 84 m2, with living room, bathroom, toilet, 3 bedrooms and 6 beds. Cottages has a sea view and balconies. Each room has air conditioning, TV, Phones and Mini-bars. You can order right from cottages from the restaurants and bars as well. Rooms are equipped with high-speed wireless internet access for free. Housekeeping service is provided during the day. Wake up service is provided upon request.