Caucasus Business Week #162 by Caucasian Business Week

BUSINESS WEEK

DISTRIBUTED FREE OF CHARGE

caucasus1

September 26, 2016 #162

September 26, 2016, Issue 162 - www.cbw.ge

Bank PASHA Bank – Partner of Advertising Festival Ad Black Sea

Real Estate Season of Promotional Oﬀers Opens at King David

Pg. 10

PR “I would Never Become Doctor, but I Know How to Provide First Aid” Pg. 8

Pg. 9

Georgia Ranks 5 in terms of Economic Freedom

Inexhaustible Stream of Pledges and Hunting Pensioners’ Votes The 2016 parliamentary elections will be held in several weeks. Before, active election campaigns are underway. The shorter period is, discussions over political pledges, their feasibility and implementation ways intensifies. The Caucasus Business Week (CBW) inquired how economic experts evaluate election pledges of leading political forces, how they appraise strategical views of the election participants and in general, whether political parties have real pledges with focus on economic development. The interviews have showed that economic experts have diverse opinion on the existing reality. Economist Rati Abuladze: Economic policy rhetorics in the Georgian political space is ineﬃcient. Economic programs of political parties participating in elections may be appraised as inexhaustible stream of pledges, standard generalized programs, economic approaches based on only populism.

Pg. 6

Free Trade Regime with China

Georg i advan a has c the ra ed in ti 6 pos ng by itions

Pg. 7

Georgia will export more than 95% of its goods and services to the world’s biggest market without additional taxes. Georgia and China have completed negotiations on free trade regime. More than 95% of Georgian goods and services will enter the Chinese market without additional taxes. Since China represents Georgia’s 4th biggest trade partner, we should expect that foreign trade intensity will further increase with this country. The list of products that will be exempted from imports taxes, include wines, mineral waters, agriculture products as main exports items. This information was released by the Georgian government. Negotiations lasted 7 months and were conducted in 3 stages. The Georgian Authorities are proud to have conducted one of the shortest free trade negotiations with China.

Pg. 4

2 GOVERNMENT

NEWSROOM The MP Regards, that there are Many Opportunities for Business-Doing in Georgia “In the history of independent Georgia there have never been so many opportunities for hardworking people with a dream to launch or grow their own businesses” - PM.

France’s historic Leuville Estate returned to Georgia after 89 years Members of the Georgian Government and descendants of the 1918-1921 Georgian government in exile signed papers handing the Leuville chateau and its territory to Georgia.

ECONOMY

Azerbaijan wants to renovate liquid gas export from Batumi Port According to Ministry of Kazakh Energy, the topic has been discussed at the meeting of State Economic Cooperation Commission of Kazakhstan and Azerbaijan in Astana.

Construction of the ﬁrst wind power plant is completed in Georgia According to Energy Development Fund, testing procedures of the power plant will be carried out in October-November in line of international standards. In order to check throughput of energy by the selected turbine.

BANKING

Georgia’s TBC Bank enjoys premium listing at London Stock Exchange Georgia’s TBC Bank is now among the world’s 12 most influential banks listed in the premium segment on the London Stock Exchange (LSE).

Deposits Yield Drops to Historical Bottom Deposits yield has dropped to historical minimum. The interest rate has even zeroed on currency demand deposit. Liberty Bank provides highest yield on GEL- and USD-denominated deposits with 1-year maturity period.

BUSINESS

Demand for Georgian Gold Grows by 37% on Exports Markets The national statistics service of Georgia, in January-July 2013 unprocessed or semi-processed gold worth 55.3 mln USD was exported to foreign markets, up from 40.3 mln USD of the same period of 2015.

Wizz Air Starts Direct Flights From Georgia to 7 Destinations Wizz Air launched flights to seven new directions from Georgia, starting from September 23, flights include Berlin Schoenefeld, Dortmund, Larnaca, Milan Malpensa, Munich Memmingen, Sofia, Thessaloniki.

COMPANY

DEA Has Become the Service Provider of Microsoft’s Projects The agreement has been signed between the sides, according to it, the corporation will implement global projects with support of Data Exchange Agency.

EBRD encourages global competitiveness of Georgia’s SMEs

new financial package by European Union (EU) is bringing new opportunities for small Georgian companies and supporting their operations abroad. The European Bank for Reconstruction and Development (EBRD) allocated $50 million USD equivalent in the Georgian national currency Lari to the country’s national bank, Bank of Georgia. The EBRD said the financial package will help local SMEs invest in improvements to product quality and modernise their services to meet EU standards. This in turn will create an environment that is beneficial to cross-border trade and economic growth in Georgia. Georgia’s Economy Minister Dimitry Kumsishvili added this financial package would “support developing our export opportunities and closer ties with Europe”. He addressed about 200 repre-

sentatives of Georgia’s private sector who gathered at Tbilisi’s Technology Park to learn about the new EBRD support and how local businesses can access this assistance. The financial package will give SMEs increased access to credit in Lari and will specifically support businesses that are managed or owned by female entrepreneurs for better access to finance, know-how and advice, said EBRD. Bank of Georgia will issue loans in Lari, with a tenor of up to five years and with a two-year grace period, while cash-back investment incentives of up to 15 percent will be available for SMEs. The first-loss risk cover will guarantee up to 10 percent of the loan portfolio of eligible SMEs. International business experts will provide free technical advice for SMEs in Georgia, and the package will also include support for investment in new technologies and equipment.

The EBRD is ready to help local SMEs become more competitive on regional markets with the provision of long-term local currency financing. We are grateful to the EU, our largest donor, for its continuing support for the implementation of such an important initiative,” Bruno Balvanera, EBRD Director for the Caucasus, Moldova and Belarus said. This action was taken by the EBRD to further support SME development in Georgia within the context of the Georgia-EU Association Agreement (AA) and inclusive Deep and Comprehensive Free Trade Area (DCFTA). This was the first phase of the planned EBRD-EU program, in which the EBRD is working with local banks to help businesses invest in improving product quality and service standards. The EBRD planned to establish similar cooperation with other banks in Georgia in the future.

How can Georgia be more successful?

or businesses to be more successful they need to invest in advertising, and the advertising market needs to increase so Georgia can be more productive, believes Economy Minister Dimitry Kumsishvili. Kumsishvili was one of the guests who attended the marketing forum No-standard and Innovative Trends in Marketing and Packaging in Tbilisi, which served to raise awareness of the importance of marketing and advertising Georgiamade products. This Forum is very important as everyone knows only innovative approaches create added value in our country. Marketing is a direction that drives the market and makes people want to spend money on products they need or want,” said Kumsishvili. The Georgian high oﬃcial said the country’s advertisement market was quiet small, reaching only $60 million USD. This forum’s goal should be to grow the advertising market with new products, new knowledge and experience.” He urged forum guests to think about creative ways to market their products better; possibly by packaging products diﬀerently and intro-

BUSINESS WEEK caucasus

The Editorial Board Follows Press Freedom Principles Publisher: LLC Caucasian Business Week - CBW Address: Aleksidze Street 12 Director: Levan Beglarishvili WWW.CBW.GE

September 26, 2016 #162

Mobile phone: +995 591 013936 Email: caucasianbusiness@gmail.com

ducing them to new markets. This would increase productivity and bring greater benefits to the company and the country. Kumsishvili said the Government supported the development of creative industry and through various actions, businesses were more aware of the importance of marketing and advertising. We have sent groups representing four diﬀerent creative avenues to the Young Lions Festival, where Georgia won the marketing award. Today Georgians are people who can make complex decisions in marketing,” said Kumsishvili. At the forum Kumsishvili spoke briefly about the recent economic developments and noted 2016 was the first election year in Georgia when the economy was growing instead of reducing. 2016 is the first election year when in the first two quarters, the number of Foreign Direct Investments (FDIs) increased and there was employment growth. The private sector employed 32,000 more people in the second quarter of 2016 compared to the same period of 2015 … and the role of marketing managers in these achievements is huge,” he added.

www.cbw.ge <<

Georgia will Enjoy Renewed 100 GEL Banknotes From November

BP: Shah Deniz 2 Project 82% Complete

Turkey’s President Asks Republic of Georgia to Close Its Casinos

HPP Cascade to be Built on the River Tekhura

Badagoni Wins 7 Medals at Top Japanese Wine Competition

Textile Producer GeomMTex Plans to Increase Product Assortment

Donald Tusk and Federica Mogherini Support Visa Liberalization Regime for Georgia

Editor: Nutsa Galumashvili. Mobile phone: 595 380382 Reporters: Nino Kuparashvili, Lazare Gvimradze; Shiva Parizad. Designer illustrator: Ilia Chrelashvili. Technical Assistant: Giorgi Kheladze

Source: www.commersant.ge, www.bpi.ge, www.gbc.ge, www.agenda.ge, www.civil.ge

September 26, 2016 #162

PUBLICITY

ECONO-MIX

Free Trade Regime with China

Hila Peled CEO of Topishare

5 Reasons to Run your Startup from Georgia

2. Moneysz Doing business in Georgia is good for business: for a fraction of the cost elsewhere you can run your business. Not only salaries, but everything else you’d need to put money in to run a successful business are significantly cheaper than, let’s say, Silicon Valley or London. That, plus cheap and delicious, healthy, organic food: what else would you need? 3. Invest in your Product Instead of spending money on the administrative side of running a company, you can actual invest that money directly into your product. Which, basically, means you can create your product faster, more efficiently, and as a result, more succesfully. And that is especially interesting for potential investors who are tired of seeing most of their investment going to anything but the product itself. Now, don’t get me wrong. Investors aren’t throwing themselves at you in Georgia. But you will be in a unique position to make them understand their investment will be extremely cost efficient for them. And that is something investors love to hear. 4. Inspiring Creativity If any, Georgians are incredibly creative. And their history is a major contribution to this. But I also strongly believe that the beautiful environment adds to the creativeness of Georgians: the mountains, the architecture. And as a start-up, you need to surround yourself with very creative people from all kinds of different fields, whether it’s design, marketing, or programming. The best results are yielded through a creative and innovative team. 5. Perfect Market to Test your Product in Beta Every start-up needs to test their product, and Georgia is a perfect market for this. It isn’t extremely large (around 4 million inhabitants) and it’s full of people who are eager to try out new ‘cool’ things. Is Georgia perfect? Definietely not. It can improve its business climate for startups in many different fields. But it has a major potential. That is why I am working together with other businesses to attract international startups and investors to Georgia, to help them build the Start Up Nation they could become. And help the young generation in Georgia. And once topishare becomes a major success, I will continue my efforts to put Georgia on the map, because I love – and believe in – Georgia.

Merab Janiashvili Economic Analyst

Chinese goods will have to compete with Turkish products, while competitive environment will be very useful for Georgian consumers, because they will have option for better tariﬀs and quality

eorgia will export more than 95% of its goods and services to the world’s biggest market without additional taxes. Georgia and China have completed negotiations on free trade regime. More than 95% of Georgian goods and services will enter the Chinese market without additional taxes. Since China represents Georgia’s 4th biggest trade partner, we should expect that foreign trade intensity will further increase with this country. The list of products that will be exempted from imports taxes, include wines, mineral waters, agriculture products as main exports items. This information was released by the Georgian government. Negotiations lasted 7 months and were conducted in 3 stages. The Georgian Authorities are proud to have conducted one of the shortest free trade negotiations with China. Minister of Economy and Vice Prime Minister Dimitri Kumsishvili told the news conference on September 13 that Georgian wines and agriculture products will be admitted to the Chinese market without any customs taxes. Seven-month negotiations with China have ended successfully and this signifies that Georgian products will penetrate the world’s biggest market accounting for about 1,5 billion consumers. ‘This is an unprecedented case, when China has removed all customs tariﬀs on wines and agriculture products of its partner country», Kumsishvili noted. Lately, the Authorities and oﬃcial statistics widely covered positive sides of this agreement with exports growth expectations. Even before the agreement conclusion, according to the 2016 January-July indicators, the ratio of China in Georgia’s trade turnover makes up 6.3%, while the figure accounts for 9.7% in terms of exports. In the mentioned period the ratio of Georgia’s top ten trade partner countries in Georgia’s total foreign trade turnover made up 70%. Georgia’s major trade partner countries are as follows: Canada (1304 million USD), Turkey (891 million USD) Russia (460 million USD) China (413.1 million USD) At the same time, China surpasses Russia in terms of exports (109.2 million USD against 101.6 million USD). It is also interesting that wine is a leading product in Georgia’s exports to China. According to the Wine Agency, as of July 2016, Georgia exported 23 932 067 bottles (0.75 liter) wines to 44 countries , up 42% compared to the same period of 2016. In the reporting period Georgia exported 5.3 million USD wines, up 16% compared to the same period of 2015. In the reporting period exports increased to EU countries, traditional and new markets. One of the major growth indicators is recorded on the Chinese market — 152% (2 475 000). As a result, Chinese market has equaled to traditional market of Ukraine. Prior to commencement of free trade regime negotiations with China, Georgian government hired PMCG research company for conducting research work. The report has showed that Georgia’s exports will consid-

‘‘

1. The Business Climate Now, don’t get me wrong, it’s not ‘easy’ in Georgia to set up a business, but it’s a whole lot easier than many other places in the world. And I’ve setp up several in several diﬀerent countries. Georgia is by far the friendliest place to do business. What you should know: easy registration, English speaking staﬀ in most institutions and businesses, a not bad taxation system, and a one-stop-shop for getting your residency permit. I’ve learned a lot in the year we’ve ran our business in Tbilisi, and of course we had our frustrations with government clerks who had troubles understanding what we were doing. I also must admit that I believe Georgia’s tax system isn’t perfect, and needs quite a lot of work to make it a major attraction for start-ups, but there’s a good intention. And I believe that with a few adjustments, they can get there.

‘‘

our to-go-to place when you want to found a startup is Silicon Valley, right? Or perhaps London? Wrong. It was, a few years ago. But it isn’t anymore. Not only does the mayor of Palo Alto (which includes Silicon Valley) want the tech giants out, investors are also done with putting their money in salaries, rent, and other administrative stuﬀ, rather than the product itself. I moved my startup topishare to Tbilisi, Georgia almost a year ago. And, although we had both ups and downs, it has been a great decision. Read the 5 reasons why you should run your startup from Tbilisi as well:

September 26, 2016 #162

erably increase in a short period by about 9%, including wine exports are expected to grow by 28.5% and exports of nonalcoholic beverages are expected to rise by 36.7%. At the same time, Chinese imports to Georgia will increase by 1.7%. 48% of the increased Chinese imports will be based on the so-called «Replacement Effect», while the remaining 52% will be adjusted to «Demand Effect». Chinese imports are expected to replace imports from Turkey. It should be noted that in case of imports tax removal, budget revenues will decline by about 12%, that is by more than 8 million USD. In the event of conclusion of free trade agreement, Chinese investment inflows to Georgia are supposed to hike immediately, specially in the finance, hydro power, communications and Internet, medical industry, transport infrastructure, natural resources and wine sectors. As to investment inflows, at this stage, several Chinese companies have entered Georgian market, including Hualing Group, which has bought Basisbank and tried to purchase a stake in Bank Republic, but in vain. Nevertheless, the fact is the Chinese company owns a commercial bank in Georgia and this company adheres to development strategy and this signifies that Georgia becomes an attractive country for Chinese investments. It should be noted that a part of economists warn of cheap Chinese products’ ability to flood the Georgian market. However, we should not forget that Georgia is an import-dependent country and about 70% of foreign trade is recorded for imports. Moreover, the Georgian market has been already flooded by Turkish goods. Therefore, Chinese goods will have to compete with Turkish products, while competitive environment will be very useful for Georgian consumers, because they will have option for better tariffs and quality. At the same time, exports to China gains momentum at high paces. Taking into account that 10 years ago Georgia did not carry out exports, in practice, today it ranks among top three wine exporter countries with annualized 15% growth. The Chinese market should become a serious stimulus to boost Georgia’s exports potential thanks to applicable regulations in China that are less severe compared to European ones. For example, our country is able to export more than 7 000 products to EU under tax-free regime, but because of strict requirements to the products, Georgian companies are facing difficulties for establishing HACCP and other similar standards. Therefore, foreign trade relations with China will intensify in the nearest years. Georgia-China negotiations on free trade agreement will be finished in October, finally, after Trade Minister of China will arrive in Georgia to sign memorandum with the Government of Georgia. Then the agreement text will pass 2-month expertise period. The Georgian government expects that the agreement will be signed in December 2016 and will come into force in the midst of 2017. After parliaments of both countries ratify the agreement, Georgia will become the first country in the region with which China will have signed the free trade agreement.

“In 2015 we sold more than 8 million USD wines. This year in January-August we sold 6.5 million USD wines in China. After the free trade regime with China comes into force, we expect the sales to increase 5-6 times, later the sales will increase 10 times and more” Dimitri Kumsishvili Minister of Economy of georgia

ART

September 26, 2016 #162

Mykart Startup by Georgian Student’s Illustrations Flood Internet Space -Anuka, in few words describe your undertaking. What do you do? - I paint computer illustrations, mainly portraits, but not only. Customers send their photos and I assemble portraits and use works of various artists for backgrounds. -How was the brand’s idea born? - I study computer design at Ilia State University and when making homework I tried to draw a portrait for my friend. Later I printed the work on T-shirt. People’s positive reactions inspired me to launch this business. -How do you prepare works and how many persons participate in the working process? -I work independently. It takes about 3 days to make an illustration. Everything depends on complexity of the order. Similarity to real photo materials is achieved through correct distribution of light and shade. Therefore, it is important that traits on photo material be seen clearly and evidently. -Do you make other special paintings that you sell, besides reception of orders from clients? -I have made several works in various materials, but not for sales at this stage. -What segment do you make your

Anuka Murvanidze is a Georgian illustrator and you will find her works in the Internet space. Anuka’s works turned out innovative for the country and attracted public attention from the very beginning. Currently, the illustrator creates works from consumer photos, but to her words, she plans to create unique works that will be sold abroad.

products for and how does the society perceive them? -I would say my works are made for all segments. I am happy that orders are made by customers of various age categories and their reactions are very positive from the very first day of MyKart foundation. The page does not have many users, but the existing ones have made multiple orders. -How do you sell products and do you plan to participate in various events (like Flea Market or others)? - At this stage I make computer versions of illustrations and the customers transfer money to my bank account. However, I have made several T-shirts too. Customers are able to individually put my works on various surfaces (T-shirt, glass, poster, canvas

and so on). Regretfully, I cannot participate in similar events, because illustrations are made for individuals and it is less expected that other persons buy portrays of other ones, but the works may be exposed to exhibitions. -Do you plan any innovation that would make your product more successful? - In the near future I plan to place my illustrations on foreign websites and consequently, receive orders from abroad too.

ELECTIONS 2016

September 26, 2016 #162

NINO KOPALIANI

ple, introduction of minimum salary margin. Despite similar pledges, we may receive opposite results, Sheshelidze said. “For example, we want to determine the minimum salary by 500 GEL. However, it will turn out that employers will not agree to pay such high salaries to employees. This promise was voiced by Nino Burjanadze’s party and more evidently was highlighted by Irakli Alasania’s party”, Sheshelidze said. Economic expert David Aslanishvili said that political parties oﬀer unreal pledges based on populism. The election process is an ordinary marketing art, when one party tries to steal something from another party, in this case, votes. Political parties consider youth and aged people as the market segments. As a result, we have this kind of promises, David Aslanishvili noted. “In the Post-Soviet space, regretfully, aged people are the most active segment. Pensioners do not work. They do not care for business development, relations with foreign countries. This is a major segment. This is a desirable titbit for elections and no party plans to miss this chance. Therefore, all political parties adjust their election programs to this segment. I mean the issue of growing or declining pensions”, Aslanishvili said. As to other segments and real economy re-

he 2016 parliamentary elections will be held in several weeks. Before, active election campaigns are underway. The shorter period is, discussions over political pledges, their feasibility and implementation ways intensifies. The Caucasus Business Week (CBW) inquired how economic experts evaluate election pledges of leading political forces, how they appraise strategical views of the election participants and in general, whether political parties have real pledges with focus on economic development. The interviews have showed that economic experts have diverse opinion on the existing reality. Economist Rati Abuladze: Economic policy rhetorics in the Georgian political space is ineﬃcient. Economic programs of political parties participating in elections may be appraised as inexhaustible stream of pledges, standard generalized programs, economic approaches based on only populism. “Regretfully, these programs do not comprise specific plans, practical approaches, required steps and action map. In practice, similar standard approaches make it unclear whether the country is capable for quick economic growth and development”, Abuladze noted. Today each political organization asserts that

Inexhaustible Stream of Pledges and Hunting Pensioners’ Votes only it is able to develop the country and that all of us should trust it, while they cannot introduce valuable and strong substantiation of specific ways and mechanisms for the country development. Therefore, political parties have to substantiate ways and mechanisms for attaining their pledges. Otherwise, combination of economic pledges of each political party will not make persuasive influence on political trust and election activity of Georgian citizens, Rati Abuladze said. “We can name only Georgian Dream’s economic program that is comparatively adequate and academic”, Abuladze said. It is surprising that persons running for elections accumulate their political activities around one person. Namely, the election participant bodies pay main attention to the person, who did not participate in elections (B. Ivanishvili). It would be better that each party persuade the society that: • their economic policy is eﬃcient; • they hold political or personal advantages; • they have clear vision for Georgian economy development ways; • they have developed financial market stabil-

ity program; • they have determined new trade-economic relations policy; • They hold political plans for growth in Georgian exports potential and penetrating new markets; • They hold eﬃcient mechanisms for attaining public welfare; • They hold plans and programs for strengthening population and growing productivity. Finally, Georgian political parties oﬀer invaluable and incompetent economic development ways and economic policy, Abuladze concluded. Economic expert Paata Sheshelidze asserts that a major part of the election participant political parties realizes very well that the private sector will tune the future and it is of crucial importance to promote the private sector. This is an evident positive tendency, he said. The first important thing is that all main political parties running for the parliamentary elections guess that the future belongs to business, private property and its promotion is very important. This is an evident tendency. This consideration is proved by the United

National Movement (UNM), Georgian Dream and all other leading political forces. Moreover, in most cases, accents are made on improving business environment through either lowering taxes, alleviating tax burden or introducing tax amnesty. This rhetoric is voiced by the United National Movement (UNM) and Paata Burchuladze’s party, when Georgian Dream prioritizes promotion of financial and other projects through not tax preferences, but fosteringthe financial distribution. “Thus, all of them realize that business sector support is of vital importance”, Sheshelidze said. Election economic programs of political parties make less accent on agro-industrial issues and development of business activities in this sector, the expert noted. “Moreover, none of them has made such accents as privatization, privatizing raw materials and natural resources. They have not developed these issues and the factor may be appraised as a gap and fault. They had to pay more attention to similar issues”, Sheshelidze said. Frequently, a major part of election pledges collide with theoretical concepts. For exam-

vival, these issues are mentioned indiﬀerently in economic platforms of political parties. The reason is that pensioners care less for exports growth and imports reduction, Aslanishvili noted. Promises given to pensioners will be never fulfilled, because their fulfillment will destruct the country. Pledges for pensioners may be appraised as mottoes for embezzlement and gnawing state resources, Aslanishvili said. Nobody talks about catastrophically reduced exports and this is a tendency. The country has to pay debts. Nobody tries to expose these issues, he said. “We have all signs that our country produces nothing. I would recall the words of legendary German chancellor Bismark. He said people lie in wars, hunting and before elections most of all. WE should remember these words every time. We should be maximally pragmatic in relation to promises that we heard in AugustSeptember”, Aslanishvili noted. The CBW has contacted several other experts, but they abstained to make comments. Emzar Jgerenaia could not find time, while Gia Khukhashvili refrained from answers referring to incompetency in the mentioned issues.

September 26, 2016 #162

The Economic Freedom of the World has recorded changes. Georgia shares 5th-9th places among 159 countries with equal scores. The rating reflects indicators since 2014 and measures economic freedom level (freedom of choice, markets penetration, private property protection, rule of law and so on), based on analysis of policy and institutions in 159 countries. In 2015 Georgia ranked 11th in the rating, while in the 2016 report the country has advanced by 6 positions to the 5th place. Georgia ranks 5th among 159 countries in the international rating – according to the 2016 final report of the Economic Freedom of the World. The results were published by Canadian Fraser Institute.

he Fraser Institute develops an annual rating – the Economic Freedom of the World, jointly with independent researchers and education institutions, members of the Economic Freedom network, from more than 100 countries of the world. This research is the most comprehensive comparison in 5 main components: the size of government; protection of property rights and court; strong money policy; international trade freedom; credits, employments and business regulations. Georgia’s indicators have changed in 5 main directions (on 1-10 scale, where high coeﬃcient signifies the high level of economic freedom size): The size of government: during the last year the indicator slightly worsened from 7.85 to 7.83 point; Property rights protection and court: during the last year the indicator considerably improved from 6.19 to 6.61 point; Strong money policy: in the last year the indicator improved from 8.92 to 9.11 points; International Trade Freedom: in the last year the indicator has not changed and stays at 8.45 point; Credits, employment and business regulations: in the last year the indicator slightly declined to 7.90 from 7.91 point; According to the report, two indicators have worsened, two indicators have improved and one indicator has not changed. As to the whole rating results, Hong Kong ranks first with 9.03 point on 10-degree scale. Other countries rank as follows: 2. Singapore (8.71); 3. New Zealand (8.35); 4. Switzerland (8.25); 5. Canada (7.98); 5. Georgia (7.98); 5. Ireland (7.98). 5. Mavrim Islands (7.98); 5. United Arab Emirates (7.98); 9 Australia (7.93) and 10. Great Britain (7.93). The last 10 positions are occupied by: Iran, Algeria, Chad, Guinea, Angola, Central African Republic, Argentina, Republic Congo, Libya and Venezuela. As to such dictatorial countries as North Korea and Cuba, they are not included in the rating because of absence of indicators. In rating, rankings of other major economies are as follows: 17. the USA (7.75); 30. Germany (7.55); 40. Japan (7.42); 58. France (57); 102. Russia (6.66) 113. India (6.50) 113. China (6.45) 124. Brazil As to Georgia’s neighboring countries, Armenia ranks 18th with 7.71 point; Turkey is 90th with 6.86 point, Azerbaijan ranks 107th with 6.55 points, Ukraine is 135th with 6 point and Iran is 150th

ECONOMY

Georgia Ranks t h 5te in rms o

f Economi c Freedom

with 5.27 point. According to the research and the most prestigious magazines, the people who live in the countries with high economic freedom level, get rich faster and enjoy more political and civil freedom. Similar countries also record longevity growth evident tendencies. For example, GDP of top four countries of the Economic Freedom Index per capita makes up 41 228 USD, when the same indicators of the last four countries is only 5 471 USD. Georgian Prime Minister Giorgi Kvirikashvili appraised the rating results as the positive information and urged government members of maximally spread it. “I would like to tell you about very pleasant fact – international rating company Fraser Institute has published the 2016 report of Economic Freedom Index and in this comparative index Georgia ranks 5th among the world’s 159 countries, following such countries as Hong Kong, Singapore, New Zealand and Switzerland. This is huge success. For comparison, I would like to say that in 2015 we occupied the 12th position, in 2014 – 16th, in 2013 – 21st, in 2012 – 53rd. This is a serious progress preconditioned by advancement in such fields as attainability of finances, rule of law and property rights protection and other directions. This is impressive advancement, this is of crucial importance for Georgia’s international image and perception and all of us should maximally spread this information to draw more and more investments”, Giorgi Kvirikashvili said. Minister of Regional Development and Infrastructure Nodar Javakhishvili noted that Georgia’s advancement in the Economic Freedom rating will increase investors’ interest in Georgia. “I believe all countries would be proud to occupy 5th position after Switzerland. This is of crucial importance for us, because Switzerland does not need so many investors, so much investment resources, while now we are implementing large-scale programs and we will need more and more investments. I believe this is a very goof characteristic for investor to arrive in Georgia without hesitation”, Nodar Javakhishvili said. Financier Vakhtang Khomizurashvili believes that the rating changes should be definitely reflected on real economy and he made focus on undeveloped securities market.

Georg i advan a has c the ra ed in ti 6 pos ng by itions

“Economic Freedom, first of all, signifies property rights protection. At this stage, we do not have property protection in terms of securities. Securities market remains also undeveloped. In practice, we do not have open stock companies. We do not have legislative basis on stock companies. Secondly, Economic Freedom implies low unemployment level, but this indicator is very high in Georgia. Loan dependence is the third direction, when population and business sector do not depend on loans and loan capital very much and this component should be taken into account when preparing economic freedom index. I do not know whether all these indicators have been reflected there, but this is the reality. Changes must be reflected on economic conditions, portfolio investments and so on. Therefore, considerations as if this moment has improved in our country are not realistic, nothing has improved in reality. Therefore, diﬀerent evaluations may be provided, for example, tourists inflow, simplified visa regime and so on. Nothing special has happened. I just cannot see such improvement of situation as they assert. Economic Expert Paata Sheshelidze positively appraises Georgia’s advanced positions in the rating and also makes accent on worsened positions of other countries as one of the preconditions for Georgia’s promotion in the rating. -We should specify that our country ranked 11th and now we share 5-9th places. This detail should be taken into account. We call it the 5th place, but in reality we share the 5th-9th positions. Nevertheless, this detail cannot underestimate the current results. The research is based on five components, of which two indicators have worsened, two ones have improved and one indicator remains the same. In the end, advancement has overweighted the setback and we have improved our positions. The first component is the government’s size and the indicator has slightly worsened. The Government has spent more in relation to GDP compared to the previous year, it was 18% and became 19.6%. In reality, the Government provoked worsening the indicator in the rating. The second direction, where the Government played negative role is the category of regulations. This component comprises other parts in itself and several ones have worsened. Even in this part the Government cannot be proud of good results. However, there are good and positive factors too. Though, this category has showed worse tendencies ultimately. We have progress in strong money part and this is the National Bank’s achievement entirely. We have made progress in 2014, when the NBG was printing less money and emission volumes were of very modest scales. Consequently, we have better positions in this category. The second component implies transparency of legal system and property rights protection, but this party is mainly reflect indicators of the International Competitiveness Index, based on surveys. Thus, we have significant advancements in this respect too. However, in most cases evaluations may be of subjective character. Therefore, I always stress that we have advancement here, but it is often difficult to check and examine this. As to international trade freedom, we have neither progress nor setback. This signifies we have the same situation in this component. This year the Government has made no changes and this is neither good nor bad and the indicator has been maintained. In the end, achievements have overweighted the failures. We have made slight progress. The diﬀerent is very small in terms of scores. Nevertheless, we have moved forward by several positions. Our positions improved as other countries worsened their indicators and descended to our level. Their scores equalized to ours and consequently, our positions have also equalized.

September 26, 2016 #162

Interview with Khatia Alpaidze, head of Clean House PR and Marketing Department

In the last period, the demand for valuable PR and Marketer agents are has become more in-grow, because people have understood their importance for organization, but this is a new direction in Georgia anyway

- What are you by profession? - I hold BA degree in journalism, however, I have worked as a journalist for only two years. I have also passed Caucasus University’s MA degree in strategic communications. I have been working in the marketing and PR field for 11 years. Journalism has taught me how to remain unbiased and frank. At the same time, as a marketer I try to be a respondent desirable for all professional journalists: frank, right and professional. - Your first job. - I started my first oﬃcial job at MediaNews agency. However, I had earned royalties starting school period. I grew up in Samtredia and my articles were published at the district newspaper. I used to participate in various competitions in Samtredia, where event organizers used to select anchor-reciters for district events. Since I could deliver a speech, I was frequently selected for this position and I could earn small royalties. This factor was very exciting, motivating and important for me, a 13-14-year-old girl. It should be also noted that I, being 15, obtained a scholarship of the Samtredia District Governor, as a successful pupil. I was a smart child turning around all the time, because I knew I had to rely only on myself and my mother, who was seeing my potential and was trying to assist in directing this potential to the right way. Naturally, this is not OSCARS speech of gratitude, but I thank my mother for that. - Current job and position. - Currently I work for Georgia’s one of the biggest cleanup companies – Clean World. I work as a head of marketing and PR department. This name is quite long and I prefer to briefly say PR Department Head. Our company is a permanently growing body with focus on innovations and development. We employ about 1500 persons and serve more than 700 state and private organizations all over Georgia. - Your first success. - My first success was my first book of fairytales and novels “Everything, that is Everything”. The edition was printed in Kutaisi with small circulation and was sold out at once. This is the merit of my mother, because she noticed I was writing something all the time at the light of candle at night (electricity was not in that period in Samtredia) and I was storing these exercise books. One day my mother took them, read and showed these writings to Otia Ioseliani. She asked him to read those writings to learn what her girl was scribbling. In reality, she was interested in what Otia Ioseliani would say and how valuable my writings were. As I remember Otia told my mother that I had invented excellent names for fairytale heroes and he asked my mother to show me to him (I was 14 then). And this happened. We visited Mr. Otia. I got to know him and he advised me to continue writing. In this way, first my book was published. - Aﬀairs, projects that you have implemented and you are proud of them. - I would recall one and I am proud of it very much till today. In that period I was working for Caucasus University as PR manager. We developed an integrated media course for media school promotion that called for involvement of 12grade pupils of various public schools in the education program. 11- and 12-grade pupils interested in jour-

require quick decisions. This is the whole complex. Promptness should not fail the business. This signifies that any decision should be taken in reasonable timeframes. Quick action is necessary, in general, because the time runs. Quick reactions particularly weigh in emergency situations, but this reaction should be very reasonable to maintain quality. - Interesting episode from your life (business life) that has changed your lifestyle. - Recently I launched my personal business, created a page in the social network called as Katiani. I make T-shirts for adults and children and various accessories with images of only cats. I like animals very much, especially cats. In my childhood I liked remaking clothes and therefore, I have decided to adjust my childhood hobby to this love for animals. Reaction was quite impressive. Initially, I organized the regime of expectation. I invented a legend on how a cat was arrested because of dropping down a vase from a table, how grandmother was requesting its release from prison, how the inmate cat requested for improving working conditions in the cell and how a magistrate released it because of hardworking. Having left the prison, the cat launched its own production. This unoﬀensive legend exploded the whole social network and I found many cat lovers in Georgia, contrary to my expectations. 2% of profits from sold products are handed over to adolescents with Down Syndrome. This is the social responsibility of Katiani and I am very happy doing this business. - Without this profession, where would you work? - I would be a good psychologist. Because when I see people and their eyes, I already know what kind of nature and spirit they have. - What is your strong side and characteristics, as a businesswoman? - Independence and continuous aspiration for development, innovation and desire for assisting other people, flexibility and promptness, professionalism, patience and frankness. These characteristics create may strong side. -What is your benefit from the company where you work? What makes this company interesting for you? -I like that our partner facilities are always clean and people talk about this. For example, we clean the facility, where you have a dinner, do shopping, we care for its order to create cozy, clean and safe atmosphere for our customers. I am happy because of this, because I think cleanness of these facilities gives birth to something deep feeling called as environment protection, care and protection of elementary hygienic norms, because all of us deserve to live in clean world! -What creates the most discomfort in your job? - Readdressing – this is awful!When you need some information, you ask a due person and they answer they are busy and redirect you to others and then it turns out the other does not have this information. This is very bed practice and unprofessional attitude. - Where do you see yourself after 20 years? - At home, with my husband and children (currently I do not have children), with Katiani, Jasmin tea, fireplace, papers and pan.

I would Never Become Doctor, but I Know How to Provide First Aid nalism were taught to fundamental principles of journalism, PR and marketing. Succeeded 3- and 4-year students and MA students of Caucasus University media school were also involved in the project. In that period I was a MA student too. Why was this project so important? Because we transmitted experience and motivation to those students and their talent, high scores, their attitude to studies and hardworking did not remain unnoticed. We also showed to the 11- and 12-grade pupils what kind of students were studying at our university, how talented students they were and what kind of young people they could become in several years. I was the project director and I keep friendship relations with these pupils till today. - The field where you will never work. - I would never become a doctor. However, I can provide first aid, if necessary. - What characteristics make a person successful in your field? Besides knowledge, are special features required? - Full freedom – this is important. Aspiration for freedom leads us to success. Purposefulness, continuous and tireless working and struggle for your goals bring real results definitely. Ability to take decisions quickly, because the time is money. Money is also Freedom. Devotion to

your business and freedom is here again. Love is freedom, is not it?! Richard Bach’s Seagull Jonathan Livingston manages flying thanks to the love of freedom. People should be able to water flowers in rainy day. I mean this freedom. This is success. - Is it possible today in Georgia to study PR at high level or international knowledge and experience is necessary? - Everything depends on practical experience. All cases are of individual character. Knowledge can be received in our country too, but this knowledge can be deepened and strengthened in Europe and western countries. Naturally, the more you know, the better it is. Moreover, in the era of computer technologies, we have various online courses and this is a quite good practice for receiving knowledge and experience in distance. Naturally, I would leave abroad if I had due financial support in that period, when I started MA studies. But I would not leave for only studies, but also for acquaintance with people, streets, bridges,aged people, children, culture of those countries. To be frank, I would visit western countries for this objective. - Is PR perceived and understood in Georgia in its classical nature ? - In the last period, the demand for valuable PR and Marketer agents are has

become more in-grow, because people have understood their importance for organization, but this is a new direction in Georgia anyway. On the one hand, it is clear that PR is good, but they have a little different perception. They think PR should write articles, translate, organize events, order uniforms, draw clients and many similar things. This signifies the problem hides in ourselves, marketers and PR specialists. There is very few professionals in this field in Georgia and we do not try to improve the situation, to upgrade perception of our potential employers about what is PR, what is marketing, what is promotion, what is event, what is the difference between them, what PR does and so on. There is one solution: we should sit down and decide how to grow in this field and how make employers aware who we are in reality, what we do and why this is important. Otherwise nothing will change and we will remain as employed PR specialists for managing social networks to attract clients, perform staff function in parallel regime and so on. - How easily can you discharge crisis situations and take decisions? Do similar cases affect quality of business? - I noted above that the capability of taking quick decisions is of crucial importance and not only crisis situations

September 26, 2016 #162

REAL ESTATE

Season of Promotional Oﬀers Opens at King David KETI TABATADZE PG Editorial Director

ortgage loans, one-year interestfree internal credit, and special discounts on second and thirdcategory properties – the King David multifunctional complex is commencing a period of active sales with new, flexible and competitive offers. Property Georgia spoke to the Head of King David’s marketing department, Nini Mariamidze, and Sales and Marketing Manager, Tini Kapanadze. - King David is starting the autumn season with new consumer-oriented terms. What is on offer for prospective tenants? Nini Mariamidze: “Promotional offers are part of caring for the customer. Successful individuals with high income constitute our segment. Accordingly, the most in-demand properties at King David Residence are the spacious premier-category properties (200-250 sq. m.). As for the smaller second-category properties (minimum residential space – 54 m2), these are mainly being purchased as an investment. As you know, real estate prices are constantly going up, and owning a property in an elite complex is the best possible investment with a view to renting it out. We also have third-category properties which are mainly designed for families. “Since our main workload concerns premier-category properties, we have decided to offer a promotional discount on the second and third categories, which is attached to the payment system. Based on this offer, the price of 1 square metre starts from $1500. Purchases can be conducted as a single payment, or through a short-term internal credit. There has been little demand for mortgage loans thus far, though we are planning to add this option for the aforementioned two categories. Of course, if needed, it will also be extended to the premier category. We are currently negotiating with the leading Georgian banks, who will offer special terms to our customers. Notably, our standard payment scheme includes one-year interest-free internal credit, even though the project will become operational in 4 months’ time. The customer pays 50% of the cost of the property in advance (5% prior to concluding the purchase, and 45% within two months after the purchase), and the other half of the cost 1 year later.” - King David has been invited to participate in the annual European Property Awards this year. The International Property Awards organisation chose your project amongst numerous construction projects. Based on which criteria have you been selected? Nini Mariamidze: “This was a surprise for us. We were contacted by the International Property Awards organisation, and offered to participate in the European Property Awards. As for the selection criteria, our complex turned out to be the only construction in Georgia that fully satisfied their requirements. King David combines two independent tower buildings of 31 and 19 floors, respectively. The taller King David Residences tower will consist of residential properties only, while the smaller King David Business Center tower will include a Class A business centre. This is Georgia’s first condominium-type complex with a full spectrum of services, which offers tenants an opportunity to work, relax, or be entertained without leaving the building. King David will represent Georgia in the Best Multifunctional Complex category at this year’s event. We were also offered to participate in the Architecture category, but

Nini Mariamidze Head of King David’s marketing department

chose to concentrate on the multifunctional aspect on this occasion.” - What eﬀect and what benefits would winning the competition have for you? Nini Mariamidze: “To be among the participants of such a high-level international competition is already a significant achievement. For a Georgian company to compete with European developers is a great challenge. The winners will be announced on 27 October. Should we successfully pass the European stage of the competition, we will be able to participate at a global real estate contest. “The International Property Awards are one of the best means to enhance international awareness. Winning firms will have the right to use their logo for marketing purposes for one year.” - The King David multifunctional complex is due to become operational by the end of the year. What are the sales like at this stage? Tini Kapanadze: “At this point, 85% of the construction works and 75% of the engineering works have been completed. The complex will become operational at the end of 2016, while the delivery deadline for the infrastructural part specifically is the autumn of 2017. As of

Tini Kapanadze Sales and Marketing Manager

today, 30% of the properties have already been sold. We are planning to begin actively working on sales once the project has been completed. However, we are already posting impressive results in terms of sales even without putting much effort into it.” - What are the advantages offered by the King David multifunctional complex? Why should we purchase a flat in the King David Residences, or rent office space at the King David Business Center? Tini Kapanadze: “The King David Residences offers its tenants full comfort in terms of infrastructure and services, including a reception, a porter, a concierge, room service, cleaning, 24-hour security and technical support, a private medical room, laundry/dry cleaning, pet care and a florist, and others. For maximum comfort, the complex offers the following infrastructure: a pool, spa and fitness centres, a

garden terrace with children’s playground and healthy café, a beauty salon, restaurants, a winery, meeting rooms, a lobby, a flower boutique, children’s corner, and underground parking. “As for the King David Business Center, it contains all the aforementioned infrastructural facilities, too. The business centre also falls into the elite segment. Therefore, large local companies and local representatives of international corporations will be located at our complex, and we have already concluded agreements with several of them. We are successfully cooperating with Colliers International Georgia with regards to renting out the properties at the King David Business Center. King David Residences and King David Business Center are two independent buildings that share comfortable infrastructure and excellent panoramic views of Tbilisi, which is also highly significant.”

BUSINESS

September 26, 2016 #162

Tsinandali Wine Reviving – New Production of Old Wines of the Chavchavadzes Lands The contemporary Georgian winemaking originated in the Tsinandali lands. For the first time, Georgian wine was bottled in this place. Today, Silk Road Group revitalizes the tradition and intends to start production of Aleksandre Chavchavadze land wines. In his interview Silk Road Group manager Koka Archvadze provides detailed information on the Tsinandali Wines and you will also see special video material about the Noble Wines.

BANK

HANDMADE

PASHA Bank – Partner of Advertising Festival Ad Black Sea PASHA Bank provides regional corporate and investment banking services to large and medium-sized enterprises and strives to contribute to the growth and development of the Georgian and regional economy through funding value accretive projects both locally and regionally. PASHA Bank regularly supports educational and professional projects as the development of the country’s business and economy fundamentally depends on the professional growth of both the experienced and the young professionals who are or will be involved in making essential decisions for their companies on a

From September 22nd Batumi will host the annual international advertising festival Ad Black Sea for the second time. PASHA Bank is the special partner of the festival. The festival will take place at Hilton Batumi Hotel and will bring together the industry’s key players, who will conduct seminars, and

hold discussions on most recent advertising trends as well as interactive workshops. The Festival will be closed by traditional award ceremony. Alongside the educational and formal part the festival will also provide cultural and evening programs for more than 300 delegates to network and share experiences.

NEWS

BRAND

Georgian Handbag Brand Gepherrini Will Appear in France

New Danish Brand Jysk Enters Georgian Market

Georgian handbag company Gepherrini will sell its products in France. Products have already entered the EU market and customers will be able to purchase them in near future. At first bags will be sold in Nice. As the head of the company Ilia Gepheridze told Businesscontact, at this stage bags are sold in five countries: United States, France, Kazakhstan, Russia and Ukraine.

Milan’s Main Tradeshow Present Talents from Georgia WHITE MILANO will present talents from GEORGIA. In collaboration with the creative director of the Mercedes Fashion Week Tbilisi, Sofia Tchkonia they will put on show their collections in the FOUR ROOMS area. WHITE is the main tradeshow for women’s collections and the leader for international brands scouting.

Danish House plans to introduce a new Danish brand to the Georgian market. Jysk company will trade in house products starting from furniture ending with little things, the Commersant radio station reports. Jysk will serve all segments and prices reflect the quality level, the radio station noted. “We do not have competitor on the market. We make our prices and quality commensurate to each other. All goods are manufactured in Europe and consequently, we provide best quality, while today in Georgia all other companies trade by high tariﬀs”, the Danish company representatives said. Jysk brand stores will open in Tbilisi and regions. The first one will open on the former territory of La Familie supermarket on Marshal Gelovani Avenue, on October 1. Currently, more than 2300 Jysk brand stores operate in 41 countries. The company was founded in 1979. Everything for house – several famous companies operate in Tbilisi under the mentioned motto. Keti Chachibaia, marketing manager of Super company, says that she does not have information on expected entrance of new brand on the Georgia market. Therefore, she abstained to make comments on the issue. Nevertheless, Chachibaia noted that at this stage the new brand cannot be competitor to Super company, because even Danish House, which plans to introduce the new company, makes focus on low-quality cheap products. Super trades in top quality products with focus on all social segments. Super continues development strategy and several new outlets will be added to the current 22 ones, in the near future Keti Chachibaia said.

daily basis. “We see Ad Black Sea among those projects that contribute to our country’s economic and business development; our decision to support the festival was based mainly on this consideration and also the learning and socializing opportunity that it provides for the local and international professionals from Marketing and Advertising fields. It is important that local companies stand by these kinds of events. We hope our support will contribute to the success of the festival” said Anano Korkia, Head of PR and Marketing Department at PASHA Bank.

Georgian Handmade Crafts Are Sold Abroad Inca refers to the name of startup created by young Georgian businesswomen Gvantsa Kordzakhia. The main products of Inca are handmade crafts, one of which are called Dream Catcher, which has become very popular in Georgia in recent period.

In some Native American cultures, a dreamcatcher is a handmade object based on a willow hoop, on which is woven a loose net or web. The dreamcatcher is then decorated with sacred items such as feathers and beads. “Use the web to help yourself and your people … to reach your goals and make use of your people’s ideas, dreams and visions. If you believe in the Great Spirit, the web will catch your good ideas, and the bad ones will go through the hole.” Crafts are sold at Ukrainian online shopping madeheart.com, from where couple of things have been sold to Germany and France.

September 26, 2016 #162

REAL ESTATE

PUBLICITY

September 26, 2016 #162

WORLD NEWS

September 26, 2016 #162

Quotes

“ Even if you’re The contract for development of the Shah Deniz oﬀshore field was signed on June 4, 1996

small, think big. Get others to believe that and you will become it

”

“There is a strong correlation between the eﬀect on the genes in mouse cells and the eﬀect on the genes in human cells”

Shelby Gogulski

TANAP to BP reveals cost of contracts on Azerbaijan’s Be One of World’s Largbiggest gas project

ontracts worth about $18 billion have been signed so far within the second phase of the development of Azerbaijan’s Shah Deniz gas and condensate field and the expansion of the South Caucasus pipeline, said a message from BP, an operator of these projects. The company organized a press tour Sept. 22 for journalists to Azfen-Tekfen-Amec consortium’s (ATA) production site, where the assembly of topside modules of the platform for the Shah Deniz 2 project is being carried out. The project’s implementation continues successfully and currently, the work on the project has been completed by 82 percent and is being carried out in accordance with the schedule. The work on the expansion of the Sangachal oil and gas terminal also continues according to the plan, said BP message. The pipe-lay barge Israfil Huseynov completed the complex installation of the first Shah Deniz flowline from the North Flank cluster to the platform location, according to BP. The barge is now installing the other flowline before it heads to the West Flank to install the two flowlines there. Following the float-out of the subsea

construction vessel Khankendi of the dry dock, it recently received the main crane for installation. The vessel is now getting ready for commissioning and certification. Once completed, this new vessel will be deployed to the Shah Deniz 2 area for the construction of the subsea structures. The contract for development of the Shah Deniz oﬀshore field was signed on June 4, 1996. The shareholders in the contract are BP (operator - 28.8 percent), AzSD (10 percent), SGC Upstream (6.7 percent), Petronas (15.5 percent), Lukoil (10 percent), NIOC (10 percent) and TPAO (19 percent). As part of the Stage 2 of development of the Shah Deniz field, the gas will be exported to Turkey and European markets by expanding the South Caucasus Pipeline and the construction of Trans-Anatolian Natural Gas Pipeline and the Trans-Adriatic Pipeline. The reserves of the Shah Deniz field are estimated at 1.2 trillion cubic meters of gas and 240 million tons of condensate. Shah Deniz Stage 2 will add a further 16 billion cubic meters per year (bcma) of gas production to the approximately 9 bcma produced by Shah Deniz Stage 1.

Russia Is Pumping Oil at Its Fastest Pace Since the Soviet Era

ussian oil output rose to a record ahead of talks on supply with Saudi Arabia and other members of the Organization of Petroleum Exporting Countries next week. Output in September has been about 11.09 million barrels a day, the highest monthly average since the Soviet era, and reached about 11.18 million on Tuesday, Energy Ministry data show. Maintenance at Sakhalin Island in August capped output that month at just over 10.7 million barrels a day.

Russia will meet fellow oil producers in Algiers on Sept. 28 to discuss the market as the global crude surplus keeps prices below $50 a barrel. President Vladimir Putin said Sept. 1 he’s confident producers can overcome diﬀerences that derailed a proposal to freeze supply in April. Yet the start of new Russian fields shows the country is keen to squeeze as

much revenue from its oil resources while it can. “Russia keeps posting new record highs because neither Russia nor OPEC managed to agree upon freezing,” said Alexander Kornilov, an oil analyst at Aton LLC. “Production is profitable.” Putin Stance The April agreement collapsed when Saudi Arabia insisted on the participation of Iran, which refused to join as it ramped up output following the removal of international sanctions. Putin has said he’d like Russia and OPEC to reach an accord on freezing supply while exempting Iran until it restores production to pre-sanctions levels. Russia would be ready to cap output at the level of any month in the second half of this year, Energy Minister Alexander Novak said two weeks ago in China.

Israeli Scientists Stop Breast Cancer Spread in Mice

est Projects

Over 31 percent of the TransAnatolian gas pipeline (TANAP) has been built as of August 1, Rovnag Abdullayev, president of the Azerbaijani state oil company SOCAR, said in the article published in the country’s state newspapers. “Currently, TANAP is the largest investment project, which is being implemented by SOCAR abroad,” he said. “The foundation of the pipeline was laid in 2015 with the participation of the Azerbaijani, Turkish and Georgian presidents.” “TANAP will be one of the largest projects in the world in terms of the diameter of the pipeline and its extension,” he said. “The first stage of TANAP project has been completed and the work is underway within the second stage.” TANAP project envisages transportation of gas of Azerbaijan’s Shah Deniz field from GeorgianTurkish border to the western borders of Turkey. Turkey will get gas in 2018 and after completing the construction of Trans-Adriatic Pipeline (TAP), it will be delivered to Europe in early 2020.

Armenia nuclear plant to undergo regular repairs and refueling The nuclear power plant of Armenia will be disconnected from the energy production grid of the country, as of Tuesday at 12am, to carry out regular repairs and refueling. In addition, some repair works will be carried out to extend the lifetime of its operating power unit, the Ministry of Energy and Natural Resources press service informed Armenian NewsNEWS.am. Considering this fact, the suspension of operations at the nuclear plant will last longer this year. According to the schedule, the power unit will be reconnected to the energy grid of Armenia on November 20.

n breast cancer breakthrough, scientists discover targeted delivery of microRNAs to primary tumors blocks the movement of cancer beyond the breast. Israeli and American researchers revealed yesterday that treating a primary breast tumor in lab mice with both genetic therapy and chemotherapy is extremely eﬀective in preventing breast cancer metastasis, the deadly spread of cancerous cells to vital organs. Results of the breakthrough study were published in the September 19 online issue of Nature Communications by Noam Shomron of Tel Aviv University’s Sackler School of Medicine, Natalie Artzi of the Massachusetts Institute of Technology, Shomron’s students Avital Gilam and Daphna Weissglas, Artzi’s student Joao Conde, and onco-geneticist Prof. Eitan Friedman of Sackler and Chaim Sheba Medical Center at Tel Hashomer. “Our mission was to block a cancer cell’s ability to change shape and move,” explained Shomron. “Cancer cells alter their cytoskeleton structure in order to squeeze past other cells, enter blood vessels and ride along to their next stop: the lungs, the brain or other vital organs. We chose microRNAs as our naturally occurring therapy, because they are master regulators of gene expression.” The researchers based their approach on the three “Ds” — database, drugs and delivery. The team began by exploring bioinformatics databases to investigate the span of mutations in a tumor and identify precisely which ones to target. They then procured a naturally occurring RNA-based drug to control cell movement and created a safe gold-nanoparticle-based vehicle for delivering the two microRNAs to the tumor site. “We looked at mutations and polymorphisms that other researchers have ignored,” said Shomron. “Mutations in the three prime untranslated regions (UTRs) at the tail end of a gene are usually ignored because they aren’t situated within the coding region of the gene. We looked at the three UTR sites that play regulatory roles and noticed that mutations there were involved in metastasis.” Two weeks after initiating cancer in the breasts of their mouse “patients,” the

researchers injected the tumors with the microRNA hydrogel. Two days after this treatment, the primary breast tumors were excised. The mice were evaluated three weeks later using CT imaging, fluorescent labeling, biopsies and pathology. The researchers discovered very few or no sites of metastasis in the mice that had been treated with the microRNA drug. In stark contrast, the control group, which had been injected with random scrambled RNAs, exhibited a fatal proliferation of metastatic sites. Hope in a bleak situation “We realized we had stopped breast cancer metastasis in a mouse model, and that these results might be applicable to humans,” said Shomron. “There is a strong correlation between the effect on the genes in mouse cells and the effect on the genes in human cells. Our results are especially encouraging because they have been repeated several times at TAU and at MIT by independent groups.” One in eight women worldwide is diagnosed with breast cancer every year, and it is the second leading cause of cancer death in women despite early detection programs. About 80 percent of women with metastatic cancer die from the disease within just five years of being diagnosed. “The situation is bleak,” said Shomron. “Death rates from breast cancer remain high and relatively unchanged despite advances in medicine and technology. We wanted to find a way to stop metastasis from happening altogether. It’s the turning point, where survival rates drop exponentially.” The researchers are continuing their study of the effects of microRNAs on tumors within different microenvironments. Shomron received his bachelor’s degree in biotechnology in Australia; his master’s degree in gene therapy at the Hebrew University of Jerusalem; and his PhD in genetics at Tel Aviv University, where he worked on regulatory RNA systems. He was a post-doctorate affiliate at MIT in Cambridge, Massachusetts. He heads the Functional Genomics Laboratory at Tel Aviv University’s Medical School and is editor-in-chief of Genetics Research, a Cambridge University Press Journal.

PUBLICITY

September 26, 2016 #162

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 16 Akhmeta Str., Avlabari, 0144 Tbilisi. 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: +995 32 2 75 21 11, Fax: +995 32 2 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 15 Gorgasali Exit, 0105 Tbilisi, Georgia Tel: +995 32 291 01 94; +995 32 291 01 95 Fax: +99 532 291 02 70 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 Ave., Tbilisi Tel: 225-20-72/73/74/76 embassy.tbilisi@mfa.gov.tr Consulate General in Batumi 9 Ninoshvili Street, Batumi Tel: 422 25 58 00 consulate.batumi@mfa.gov.tr 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 Kingdom of Spain Embassy Rustaveli Ave. 24, I ﬂoor, Tbilisi Tel: 230-54-64 E-mail: emb.tiﬂis@maec.esRomania Embassy

TBILISI GUIDE 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 Embassy of the Slovak Republic Address: Chancery: 85 Irakli Abashidze St. Tbilisi, 0162 Georgia Consular Office: 38 Nino Chkheidze St. Tbilisi, 0102 Georgia Phone: 2 222 4437, 2 296 1913 e-mail: emb.tbilisi@mzv.sk

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 CORNER HOUSE Tbilisi, I. Chavchavadze ave. 10, Tel: 0322 47 00 49; Email: contact@cornerhouse.ge RESTAURANT BARAKONI Restaurant with healthy food. Georgian-European Cuisine Agmashenebeli Alley 13th Phone: 555 77 33 77 www.barakoni.com CHARDIN 12 Tbilisi , 12 Chardin St. , Tel: 92 32 38 CAFE 78 Best of the East and the West Lado Asatiani 33, SOLOLAKI 032 2305785; 574736290 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 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

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 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

Real Estate International Real Estate Company (IREC) Tbilisi. 9 P. Aslanidi St. Tel: +995 32 238 058 Mob: 599 95 76 71 Email: Info@irec.ge www.irec.ge

GSS Car rental offers a convenient service for those who are interested in renting car in Georgia. Rental ﬂeet mainly consist of Japanese made SUV’s, the company has various models of cars including sedans and minivans which are in good technical condition. Contact information: Email: info@gsservices.ge. Address: Shalva Dadiani 10

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,

LIMELIGHTTRAVELINFOCENTER Address: 13 Sioni Street, 0105, Tbilisi (at the end of Shardeni Street) Phone: +995 322 999 123 E-mail: info@limelight.ge Web-page: www.limelight.ge Facebook page: www.facebook.com/limelight.ge

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, NIKORA AND SMART

PUBLICITY

September 26, 2016 #162