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July 10, 2017 #200

July 10, 2017, Issue 200 - www.cbw.ge

MegaDoors From Construction Material Import to Local Development Expansion

Mega Project King David Officially Accepted into Exploitation Pg. 6

Pg. 9

Keti Bakhturidze: Most important projects and bigger challenges are still to come... Pg. 8

Uninsured Trade and Business amid Frequent Fires

Annual Inflation Exceeds 7% In june 2017 inflation rate marked -0.4% month on month and 7.1% year on year, while National Bank of Georgia has set annual target inflation rate at 4%. Despite slight contraction in general level of prices in June 2017, prices have risen anyway, as compared to the same period of 2016. Georgia has not recorded higher than 7.1% inflation since August 2011. In June 2017, major contraction in prices was recorded for vegetables, while a major rise in prices was registered for tobacco products. Change in prices in the following groups have mainly determined a formation of inflation indicator: Food and soft drinks: Prices declined by 1.5% in the group with -0.45% effect in total inflation indicator. Prices declined in the following subgroups: vegetable (-9%), milk, cheese and egg (-2.1%), oil and fat (-1.1%) and fruit and grapes (-0.9%). Strong drinks, tobacco: prices in the group rose by 2.5%. Consequently, the group’s ratio in total inflation indicator marked 0.17%. Prices rose on strong drinks (1.3%) and tobacco products (3.6%). Pg. 4

GEPRA Moves to Innovative Business Model

Pg. 7

GEPRA, PR and marketing communication company, has been operating on Georgian communication market for 15 years. The organization held the 2017 strategic meeting on July 2 and agreed a new operational method – business model. The company has moved to a new stage and outlined new challenges for further development. According to the company information, the new model enables customer organizations to enjoy a wider range of services. Moreover, at the meeting two new senior consultants were named. In her interview, CEO of GEPRA Ekaterine Zhvania unveiled reasons of moving to a new business model, appraised the 2016 performance results and divulged future plans. The meeting was very useful. We had performed huge job for a long period to meet this day prepared. Preliminary preparatory works started about 2 months ago. Pg. 11


2 GOVERNMENT

NEWSROOM Georgia’s Finance Minister sums up 2017 budget The Minister stated that due to high economic activity in the country, tax revenues of the consolidated budget have been increased. Tax revenues reached 4.74 mln GEL in six months which is 105.4 % of the plan.”

Gov program supports beekeeping in Georgia The new state program encourages the creation of honey cooperatives and aims to improve the material-technical base of agricultural beekeeping and to increase the quality and quantity of honey and other beekeeping products.

ECONOMY

Cargo Shipping in Georgian Corridor In the first quarter of 2017, Georgian Railway financial indicators worsened, as a result of 2% contraction in turnover. Total revenues of Georgian Railway declined by 3% (3 million GEL).

Georgia’s Economy Gathers Pace, Grows 4.5 pct in Jan-May Georgia’s economy expanded 4.5 percent in the first five months of this year, official data showed on Tuesday, up from 2.9 percent in the same period in 2016, after a rise in exports and remittances from abroad.

BANKING

Leading Commercial Banks Raised Interest Rates on Deposits in GEL According to the national bank statistics, for legal bodies, annual interest rate on GEL-denominated deposits accounts for 7.3% , while in foreign currency denominated deposits the figure makes up 3% .

BGEO Differentiates Banking and Investment Businesses BGEO Group has released a statement on separation of banking and investment businesses. Namely, Bank of Georgia and the group’s investment business will be shaped separately.

BUSINESS

Georgian blueberries and herbs exported to Qatar Georgian company ”Uvie’s Berries”exported Blueberries, tomatoes, coriander, parsley, dill and other kinds of herbs to Qatar supported by LEPL ”Enterprise Georgia”.

Oil Shipments from Batumi port fall 29% in First Half The official gave no reason for the fall, but KazMunaiGas has rerouted some shipments to the Baku-Tbilisi-Ceyhan pipeline this year. The terminal shipped 3.377 million tonnes of oil and oil products last year, down from 3.616 million tonnes in 2015.

COMPANY

July 10, 2017 #200

ADC Presented Design of Anaklia Port to Gov Anaklia Development Consortium presented preliminary design of the Anaklia deep sea port to the Government of Georgia. Project includes first phase of Anaklia deep sea port planing, which will cover approximately 110 hectares.

‘Invest in Batumi’: Georgia’s seaside resort hosts business forum

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eorgia’s seaside resort town Batumi is hosting the ‘Invest in Batumi’ business forum, which aims to promote a range of investment opportunities in Georgia’s Adjara region. Representatives from Georgian and Kazakh business societies attended the forum. Adjarian Chamber of Commerce and Kazakhstan’s investment agency Kazakh Invest signed a Memorandum on Cooperation (MoC) within the forum. The MoC will help Georgian companies to export their products to Kazakhstan without obstacles, announced the Ministry of Finance and Economy of Adjara. The Minister of Finance and

Economy of Adjara Ramaz Bolkvadze highlighted the region’s recent economic developments and investment potential. $428 million was invested in Adjara in 2016 of which 71 percent was foreign investments. Last year private investments increased by 17 percent compared to 2015. In terms of investments the leading sectors are energy (45 percent), tourism (32 percent) and construction (21 percent),” said Bolkvadze. In his words the Ministry was actively working for utilising the investment resources of Adjara. He named several projects that would further improve the investment environment in the region.

Among the projects were development of former military range in Gonio, Heroes Alley, Kobuleti touristic zone. Also, Bolkvadze talked about Goderzi resort, which is the newest of Georgia’s four winter resorts on the slopes of the mountainous Adjara region. The development regulation plan of Goderzi has already been created. The Minister of Finance and Economy of Adjara has already started receiving investment proposals. After discussing these proposals, an e-auction will be announced. Development of the resort includes building high-level hotels, food facilities and other public centres in the area,” Bolkvadze said.

Parliament Speaker: “Georgia is ambitious to take on higher level in PACE assessment”

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eorgia’s Parliament Speaker Irakli Kobakhidze, who is now in Strasbourg, is holding a meeting at the Parliamentary Assembly of the Council of Europe (PACE) and states Georgia has an “ambitious goal” to upgrade itself in the PACE assessment system. Kobakhidze refers to Georgia’s current “monitoring stage” in the PACE assessment, which means PACE rapporteurs regularly visit the country to check the situation in terms of democracy and human rights. We deserve to move to the post-monitoring dialogue from the existing monitoring level. We will very actively work for this and the reforms carried out in Georgia also serve this aim,” Kobakhidze told the Secretary General of the Assembly Wojciech Sawicki. The Parliament Speaker announced that one of the

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The Editorial Board Follows Press Freedom Principles Publisher: LLC Caucasian Business Week - CBW Address: Aleksidze Street 1 Director: Levan Beglarishvili; Mob: +995 591 013936 Sales: Mob: +995 558 36 61 07 WWW.CBW.GE Email: caucasianbusiness@gmail.com

discussion topics with the Secretary General was the ongoing constitutional reform process in Georgia, which also serves the aim of “higher democracy and human rights protection.” PACE helps Council of Europe member states to fulfill their promises to uphold the highest democratic and human rights standards, the PACE official webpage reads. The procedure works in four ways. Full monitoring procedure: This involves regular visits by a pair of rapporteurs, who conduct an ongoing dialogue with authorities, and occasional plenary debates to ensure that a state’s progress and problems are honestly assessed. This currently applies to ten states (Albania, Armenia, Azerbaijan, Bosnia and Herzegovina, Georgia, Republic of Moldova, Russian Federation, Serbia, Turkey and Ukraine). Post-monitoring dialogue:

States that have made progress may pass on to this stage, a less intensive procedure involving a limited number of remaining issues. This currently applies to three states (Bulgaria, Montenegro and “The former Yugoslav Republic of Macedonia”). Periodic reviews: All other member states are subject to this process roughly every five to six years, which draws together information from all parts of the Council of Europe to arrive at an overall assessment of how far they are honouring their obligations and commitments to the organisation. This currently applies to 33 of the Council’s 47 member states. Specific report on the Functioning of Democratic Institutions: Finally, the committee can prepare a report on the functioning of democratic institutions in any member state when particular developments warrant.

Editor: Nutsa Galumashvili. Mobile phone: 595 380382 Reporters: Nina Gomarteli; Mariam Kopaliani; Merab Janiashvili Technical Assistant: Giorgi Kheladze;

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


July 10, 2017 #200

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ECONO-MIX

July 10, 2017 #200

Annual Inflation Exceeds 7% June Records Highest Inflation Since 2011

Merab Janiashvili Economic Analyst

As to economic growth, this year Government plans it at 4%, however, our economy is demonstrating better indicators. In May 2017, as compared to May 2016, state economy grew to 5.3%, while averaged real growth in January to May 2017 marked 4.5%. Consequently, NBG should carry out very cautious and reasonable monetary policy to maintain general growth in prices within target inflation rate (4%).

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OK Georgia Magazine held a Green Party at Tbilisi Gardens, organized with the support of the Ministry of Environment and Natural Resources Protection of Georgia, and in partnership with PASHA Bank. The event was attended by Georgian government officials, representatives of the business, show-business and media sectors. Guests of the green party were treated to plants and a short film screening on Georgia’s protected areas was then held. “Throughout the year 2017 PASHA Bank initiated and realized a number of environmental projects. We are proud to say that we have planted thousands of trees in different parts of Georgia. Among them there are unique Georgian trees like Iberian Oak, which is in the Red List of threatened species of plants. We are glad that media is now supporting Green Projects as well as this will help raising awareness regarding ecological problems. Partnership of this event is a continuation of our green CSR activities. We hope that together we will leave an important and positive footprint on environment.” – commented Anano Korkia, Head of PR and Marketing Department of PASHA Bank. As the Ministry of Environment and Natural Resources Protection states, it fully supports the partnership of state and private sectors together with the media in advocating and promoting green, eco-friendly projects and will be actively supporting such activities in the future, in order to raise public and business awareness towards the importance of eco-friendly initiatives in creating a healthier living environment. “We’ve dedicated this evening to the green theme entirely. Even the decorations of the event were made with an ecological approach. I would like to thank the Ministry of Environment and Natural Resources Protection of Georgia and PASHA Bank for their support; motivating us to continue our work on green, eco-friendly projects, informing more members of the public and raising their interest in eco projects” Maia Tsereteli, Executive Director of OK Magazine Georgia said at the event. Among the green projects carried out and supported by PASHA Bank are: – 2017 Georgian Pine Trees planted on behalf of PASHA Bank partners to rehabilitate the forest that got burnt down in August 2008 in Borjomi area – 1,000 Georgian Oak (Quercus Iberica) and Imeretian Oak (Quercus Imeretina) trees planted in Ajameti Managed Reserve, the latter being in the Red List of threatened species of plants – 500 trees planted in scope of campaign “Aghadgine” near Borjomi – Support of the green project by Rotary Club Tbilisi Ambassador to carry out an eco-project in Kondoli village (Telavi region, Kakheti), which implied planting of trees in the school yard, building a playground and formation of the eco-club. – Donation of Caucasian Fir trees to ten schools in Tbilisi in scope of Georgia Today’s SCR project on International Children’s day, June 1. During 2017 PASHA Bank plans to carry out other eco projects as well.

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PASHA Bank – Partner of Green Party by OK Georgia Magazine

n june 2017 inflation rate marked -0.4% month on month and 7.1% year on year, while National Bank of Georgia has set annual target inflation rate at 4%. Despite slight contraction in general level of prices in June 2017, prices have risen anyway, as compared to the same period of 2016. Georgia has not recorded higher than 7.1% inflation since August 2011. In June 2017, major contraction in prices was recorded for vegetables, while a major rise in prices was registered for tobacco products. Change in prices in the following groups have mainly determined a formation of inflation indicator: Food and soft drinks: Prices declined by 1.5% in the group with -0.45% effect in total inflation indicator. Prices declined in the following subgroups: vegetable (-9%), milk, cheese and egg (-2.1%), oil and fat (-1.1%) and fruit and grapes (-0.9%). Strong drinks, tobacco: prices in the group rose by 2.5%. Consequently, the group’s ratio in total inflation indicator marked 0.17%. Prices rose on strong drinks (1.3%) and tobacco products (3.6%). As noted above, the previous month recorded a downturn in prices, but inflation rate rose anyway. As compared to the previous year, almost all products have risen in price, including vegetables, fruits, transport and healthcare services. Price changes in the following groups have made affect on shaping annual inflation: Food and alcoholic beverages: Prices have increased by 9.5% with 2.87% ratio in total growth. Prices increased in the following subgroups: vegetables (33.7%), fruits and grapes (15.7%), milk, cheese and egg (11%), sugar, jam and other sweets (10.4%), coffee, tea and cocoa (5.3%). Transport: prices rose by 15.3% with 1.92% ratio in inflation index growth. Prices increased on personal transport exploitation (21%), a purchase of transport (12.9%) and transport services (4.6%); Alcoholic beverages, tobacco: price rose by 18.2% with 1.18% ratio in total index growth. Prices rose on tobacco products (36.8%) and alcoholic beverages (3%). Healthcare: prices rose by 7.4% with 0.66% ratio in total index. Prices increased on medical products, equipment and devices (21.3) and inpatient medical services (5.4%). It should be noted that the monetary policy committee of National Bank of Georgia (NBG) took decision on June 14, 2017 on maintaining refinancing rate unchanged. As a result, today refinancing rate constitutes 7%. YTD, NBG tightened monetary policy by only 0.5%, despite the fact starting January 1, 2017 the excise tax rate rose on tobacco products and fuel. Consequently, NBG’s initial forecast increased inflation expectations. The next meeting of monetary

policy committee will be held on July 26, 2017. «As to inflation, NBG should pay due attention to this issue. We have problems in this direction. Therefore, attempts for curbing inflation should not harm economic growth. This is very difficult and in short-term and midterm perspective, NBG will have to take scrupulous decisions», Irakli Kovzanadze, head of finance-budgeting committee noted. It is worth noting that excessive tightening of monetary policy may reduce inflation, but make credits more expensive and economic growth indicator may decline. «If we excessively curb inflation, this signifies unemployment and imports will rise, domestic production will decline and more problems will arise in the future. It is wrong decision to cut expenditures through curbing revenues. In this specific case, upturn in prices are caused by one-time factors and excessive reaction from NBG will be incorrect decision. Raising excise tax rate and petrol prices on global market preconditioned temporary declination of the inflation indicator, but it has not provoked inflation processes. This signifies NBG reacts to inflation processes and we are to prevent these processes, as well as inflation tendencies. Therefore, in midterm period inflation should be close to 4%, while the index should be reduced to 3% in 2018», NBG vice president Archil Mestvirishvili said. As to economic growth, this year Government plans it at 4%, however, our economy is demonstrating better indicators. In May 2017, as compared to May 2016, state economy grew to 5.3%, while averaged real growth in January to May 2017 marked 4.5%. Consequently, NBG should carry out very cautious and reasonable monetary policy to maintain general growth in prices within target inflation rate (4%). At the same time, tightened approaches should not harm economic growth pace. This year we have recorded the best indicators over the past 3 years in terms of GDP growth. Therefore, government’s fiscal policy and NBG money-credit policy is to maintain this indicator and further increase it.

“Expenditure reduction by tying up revenues will not be a correct decision. Price increase, in this particular case, is caused by single factors and the excessive reaction of the National Bank is wrong. The excise and petrol price increase on the world market has led to a temporary deviation from the inflation rate, but this has not caused inflationary processes, i.e. the NBG reacts to the inflationary processes and it is our duty not to allow these processes as well as to avoid deflationary processes. Therefore, inflation is close to 4% in the medium term period and close to 3% from the next year.”

Archil Mestvirishvili Vice President of the NBG


July 10, 2017 #200

PUBLICITY

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PRODUCE IN GEORGIA

July 10, 2017 #200

Imports of Construction Materials toward Domestic Production Expansion

D

oor is one of the key components in modern design. Designers suggest to harmonize door, its color with house interior. MegaDoors company offers a wide range of doors to Georgian customers, however, the company plans to expand assortment. History of success for MegaDoors started 20 years ago. Initially, the company used to sell only construction materials. Founded in Batumi, the company offers any construction materials to customers – starting from plaster, bathroom equipment and a wide spectrum of construction materials. In 2017 MegaDoors obtained a financial support as part of Produce in Georgia state program and expanded business. Namely, the company obtained 2 million GEL financial component and a land plot for 1 GEL. Thanks to the mentioned resources and its own savings, the company opened wood processing plant on Kairo Street in Tbilisi and employed 50 persons in addition. The company management has serious plans for future to replace wood doors imports by domestic products. The company plans to broaden assortment by the end of 2017 and offer metal doors for exterior, besides interior doors. Moreover, MegaDoors company intends to launch exports. Initially, the company management plans to send test consignment of 400-450 doors to Armenia and Azerbaijan. At the same time, the company plans to start using raw materials. After the company starts exports and obtains licenses for wood material production, MegaDoors plant will be able to move to fullcapacity production.

Mimoza Gabaidze, MegaDoors sales manager, told the Caucasus Business Week (CBW) that the company has already applied to the due instance to obtain wood cutting license. Having obtained the license, MegaDoors will apply domestic wood materials. Currently, the company uses Austrian Kromostar raw materials. So far the company has not taken part in various tenders, but the management plans to take efforts in this direction too. Before, MegaDoors offers products to construction companies, retails stores… The company always tries to satisfy the relevant demands and follow the market tendencies through participation in international exhibitions. At the same time, exhibitions provide good opportunity for MegaDoors to set up new contacts and outline future perspectives. Currently, this success enables company to have employed 150 citizens.


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INSURANCE

July 10, 2017 #200

Over the past 5 years several trade centers burnt down in Georgia

UNINSURED TRADE “A statement of one of the sellers was spread – I had not insured property, because I did not know fire would break out». This is mindset. That’s why the Government plans to introduce mandatory insurance, because they know insurance does not exist in traditions, culture and business process of people”

 According to statistics of Insurance Supervision Service, in the attracted insurance premium, a major part is recorded for medical insurance – 84.46 million GEL. Land transport insurance is second with 23.70 million GEL, property insurance is third with 12.42 million GEL, life insurance is fourth with 6.88 million GEL, civil responsibility insurance is fifth with 3.95 million GEL.

FREQUENT FIRES

DAVID BAGHASHVILI

In most cases, property turned out uninsured. This factor generates huge problems. For many years, insurance sector specialists stress that there is no insurance culture in Georgia. Insurance experts point out that the country does not provide satisfactory firefighting standards. On the other hand, the country lacks for a civilized form of insurance and a major part of sellers encounter the mentioned threats without insurance. Insurance experts assert that Georgia, in practice, is an only country without any type of mandatory insurance policy. As a result, by government’s initiative, the Authorities have developed a bill for introducing mandatory insurance of responsibility in public places. The bill has been already forwarded to the Parliament. However, before the law adoption, new accident took place on July 2 – a part of three-floor building and several stores burnt down near Eliava Fair territory. Here we publish a short list of trade facilities that burnt down over the past 5 years. 1. Lilo Fair – on November 15, 2012 Lilo Fair territory burnt down. About 30 trade facilities were annihilated. 2. Saba shopping mall – on February 26, 2013 about 5-7 thousand square meter space burnt down. 3. Saneki Fair – on August 25, 2014 fire broke out on a 3 000 square meter territory and products and goods of about 250 sellers were annihilated. 4. GIPSY Fair – on September 2014 the so-called Gipsy Fair burnt at Railway Station. As a result, 2 500 square meter space was annihilated. 5. Khopa Fair – on December 7, 2014, the so-called Khopa Fair burnt in Batumi and two workers were injured. 6. Eliava Fair – on December 27, 2014 a part of Eliava Fair was annihilated by fire. 7. Isani Fair – on January 21, 2015 fifteen stores were annihilated by fire at Isani Fair. 8. Eliava Fair – Paints storehouse was inflamed at Eliava Fair on August 4, 2015. 9. Black Fair – Zestaponi Fair was almost entirely burnt down on August 2, 2016. 10. Children World shopping mall – The fire covered the whole complex and the building entirely burnt down. Tens of sellers lost products and goods on January 29, 2017. Over the past period, number of conflagration cases has increased. The Caucasus Business Week (CBW) has examined whether property and reserves insurance segments were expanded in this period. Aldagi insurance company “Number of property and reserves insurance policy grows thanks to major business sector”, Aldagi insurance company director general Giorgi Baratashvili noted. Number of property insurance policies has increased by about 10% year on year thanks to major business sector, he said. “Property insurance is one of the cheapest directions. For example, value of 10 000 GEL property insurance is only 200-300 GEL a year, about 8-10 GEL a month. Nobody will say this is expensive. Our problem consists in public mindset. Major business guessed that insurance is a key instrument for risk management. As to small business and individual entrepreneurs, there is low activity in this segment. The process cannot be enlivened without regulations. Europe and developed countries took these decisions 50 years ago. They also had problems, but they introduced mandatory insurance products to increase perception and coverage of

insurance”, Baratashvili noted. Aldagi director general talks about introduction of mandatory insurance of responsibility for Public Places. Aldagi insurance company is participating in the working process, he noted. It is important to prepare such a law, when insurance companies will develop diversified portfolios that may be re-insured abroad, Baratashvili noted. “We should adopt laws that will enable to shift risks abroad”, Baratashvili said. Introduction of property mandatory insurance will upgrade insurance culture in the country, he added. ARDI Insurance Company Property insurance segment has increased by about 5-10%, Mikheil Japaridze, ARDI insurance company business development director, noted. This is mechanical upturn. NO breakthrough has taken place in public mindset, he added. Property mandatory insurance issues become relevant, when natural disasters and conflagrations break out. The time passes and a major part of entrepreneurs forgets about insurance issues, he said. “For example, we can recall the case at SABA shopping mall on February 26, 2013. After this case, a part of sellers insured property, however, when the situation settled, they rejected insurance products”, Japaridze noted. GPI Holding insurance company There is comparatively different situation at GPI Holding insurance company. Tina Stambolishvili, head of the company PR office, explains that GPI Holding introduced entrepreneurs insurance program in February 2017, after conflagration at Children World complex and offered 50% co-financing of property and reserves insurance policy. As a result, number of applications in this segment has increased, Stambolishvili said. «Lack of information creates key barriers among entrepreneurs. However, we try to make this service attractive for entrepreneurs through active communication. About 1000 entrepreneurs have joined the program since the program commencement», she said. As to official statistics, Georgian insurance sector attracted 143.8 million GEL insurance premium in the first quarter of 2017, up 13.2 million GEL as compared to the same period of 2016. According to statistics of Insurance Supervision Service, in the attracted insurance premium, a major part is recorded for medical insurance – 84.46 million GEL. Land transport insurance is second with 23.70 million GEL, property insurance is third with 12.42 million GEL, life insurance is fourth with 6.88 million GEL, civil responsibility insurance is fifth with 3.95 million GEL. As of the first quarter of 2017, fifteen insurance companies are registered on Georgian insurance market, of which 14 ones own life and nonlife insurance licenses and one of them holds nonlife insurance license. Insurance Association of Georgia Devi Khechinashvili, head of Insurance Association of Georgia, noted that number of applications for property and reserves insurance has not increased. «A statement of one of the sellers was spread – I had not insured property, because I did not know fire would break out». This is mindset. That’s why the Government plans to introduce mandatory insurance, because they know insurance does not exist in traditions, culture and business process of people», Khechinashvili said. Giorgi Gigolashvili, President of Insurance Institute In previous cases, no seller had insurance policy, but now 57% of sellers, 17 of 30 ones, had insurance policy, he said. Giorgi Gigolashvili stressed necessity of introduction of mandatory insurance component. Low penetration is the result of inactive character of human thought rather than a lack of information, Giorgi Gigolashvili said.


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PR PERSON

July 10, 2017 #200

Most important projects and bigger challenges are still to come... CBW had an interview with ‘’Tiflis Palace’’ head of Marketing and PR DepartmentKeti Bakhturidze. She shared with us her first step into hospitality field, handling multiple tasks and forthcoming activities. - Which PR firms do you admire and why? - My previous work experiences are mostly in fields of advertising and marketing, so that I’m more aware of marketing and advertising companies’ works. There are many famous firms creating impressive works, that’s why it’s hard to name one. I must admit that I feel very proud that Georgian companies have reached incredibly high level, growing stronger day by day. I must express my pride towards Windfor’s Advertising Agency winning silver at Cannes Lions festival. I feel enthusiastic seeing that we have true potential in this field. Which media outlets do you follow? - I always try to stay updated. Usually, I don’t watch TV but, I follow almost all the news agencies, and different media sources online, as well as foreign editions in Georgia. - Tell us about the difference between PR and advertising. - I would divide PR and Marketing into different directions, as lot of people can’t see the difference and the line between these two different fields is very unclear. It can be a very large topic to discuss, but to make a brief overview, I’d say that, Public Relation is focused on creating and maintaining the strong positive public image/reputation of a Company, (or Public Figure, or Politician etc.), while Marketing is focused on promoting, advertising and selling products or services of the company. For example: PR specialist writes a press release, positive stories about company’s activities to the media, builds relationships with the media and important organizations, and so on, a Marketing specialist does market researches, creates an advertising campaign for a new product and/or service, using relevant media sources (e.g., radio, TV, or Internet etc.), creates supporting materials for promoting certain products/services, like brochures, website, etc. - What media placements are you most proud of? - As I have already mentioned my previous experiences were more related to Marketing and Advertising and less to PR. As for my current work, I’d mention that, for the last three years, fortunately we had chance to place several PR articles in different foreign publications, (printed media, as well as online magazines and different business or travel blogs) and I

In the age of technologies and Internet I think that social media became one of the most important spaces for companies to reach customers. It is a perfect way to directly engage with your target audience as well as with the press.

strongly believe that our company could be proud for gaining popularity and good reputation in different counties, promoting not only our company’s products and services but also our beautiful city as one of the most attractive touristic destinations. - Describe some affiliate networks you’ve collaborated with and why did you choose them? - Since I work for Gloria LLC, we had many different PR and marketing activities for hotel Tiflis Palace and restaurant Tiflis Veranda. As you may know, the company is increasing day by day. For now, we are operating hotel in Tbilisi - Tiflis Palace, with its wonderful restaurant “Tiflis Veranda” and our own laundry “Tiflis Laundry” .also, we are about to open new luxury 5 Star hotel at the seaside in Batumi, the property will have several restaurants, swimming pools and etc., Our company is not going to stop on that, we have a lot of plans in different fields so, despite of quite interesting and multiple past activities that we had or currently having, I’m sure that the most important projects and bigger challenges are still to come. - How do you integrate social media with PR? - In the age of technologies and Internet I think that social media became one of the most important spaces for companies to reach customers. It is perfect way to direct engagement with your target audience as well as with the press. This also helps companies to measure the effectiveness of shared content and/or Ads in reaching the target audience. - How would you present the results of your work? - It was more than a year that company was operating the newly reopened Tiflis Palace and Tiflis Veranda, by that time they didn’t have a separate person, responsible for PR or Marketing. There was a Head of Sales and Front Office Department, who was also responsible for this fields and of course it was very hard for one person to handle operating several departments to find and allocate enough time, to properly focus on PR and marketing. After I joined the company and became PR and Marketing Executive, we were able to dedicate more time to these fields and execute all the plans that the company already had, We also started to have more different

marketing and PR activities in printed media, TV, Social media, foreign media and etc. We launched our new website, activated social media, we built relationship with different mass media; Company became member of several Chambers of Commerce and Industry; we participate in different projects related to Hospitality Business. We cooperate with different business companies, international organizations; governmental structures and etc. As a result, our company has definitely created very positive reputation and gained popularity among the most important representatives of all this fields, and we still haven’t stopped developing. - What would you do if a client or manager disagreed with your PR strategy? - Collaboration with manager is very important. If a manager disagrees, there still can be found the ways to discuss issues, listen to each other’s arguments and come to a solution that satisfies both sides. - How have you worked with a team to handle a PR crisis? - I don’t remember to have a real PR crisis at our company, but what I think about is that, when negative PR crashes on a company the rightest thing to do is, not to wait for anything but, to act and react immediately. Ignoring the crisis, hiding from it, or being too late in actions can be the biggest mistake, because the negative things spread and affect too quickly, while the reputation that company has gained can be easily damaged with ignoring or late reactions ( Interaction). - What’s interesting about our current PR work? What would you improve? - First of all, my current work is interesting because it is a new experience for me. I haven’t worked in hospitality business before, although I was always interested in it. Also, it is very interesting to work for a relatively new and growing company, as it lets you face a lot of new challenges and gain new experiences. As I already mentioned - I’m sure that the most important projects and bigger challenges are still to come! - Describe a time your PR communications were misunderstood by your target audience. How did you handle it? - Fortunately, I don’t have this experience yet.


July 10, 2017 #200

MEGA PROJECT

King David Officially Accepted into Exploitation NUTSA GALUMASHVILI

King David exclusive project, defining new standards of unique, luxurious and residential living, Has officially accepted into exploitation. As the second highest building in Tbilisi, King David a multifunctional complex consisting of two towers, completes major works on both parts, lobbies of these towers are ready to receive its residents and guests. The property featuring 32 stores of luxury apartments and office accommodations distributed in 16 floors creates a five star lifestyle with beautifully designed amenity spaces organized enticingly as multistory urban resort and exclusive collection of specially-designed services. Residents of the tower will experience luxury brand’s signature understated elegance, clean lines and the authenticity and quality of the materials planned for use throughout the development. From September 2017 King David opens its doors. A special ceremony will hold to mark the inauguration of what developers claim is the first class-A residential and business center, architectural creation in Georgia. Offering all services in one place is the main goal of King David developer’s team. While one year ago alongside with Colliers International Georgia which is an exclusive broker representative of King David Business center launched renting out office spaces, now on company sells its properties as well. Headquartering two large organizations, such as Colliers international itself and Samsung Georgia, Business center will accommodate several company branches from this July. King David Business Center is A class business center with 12,000 m² office accommodation. The extensive facility mix positions King David as class A property for all the occupiers of the property making their stay and work particularly comfortable. The center offering the wide range of office accommodation starting from 75 m², small offices, reaching the full floor offices up to 1000 m² in size. The last two stores of the

Business Center are hotel rooms which mostly accommodate guests of the office space. Apart from these the center has a bar-restaurant, cafeteria, meeting rooms and a conference hall up to 100 delegates. It is worth to mention that King David has 1000 m² size Event Hall on the first floor of the tower, which lately hosted Mercedes Fashion Week. Purchasing of residential spaces with stainedglass views, high ceiling, 5-star hotel services at the higher tower could be made internal as well as mortgage loans. Month ago, “Rezid Holding GmbH” and the Bank of Georgia signed memorandum of cooperation on the project. customers have the opportunity to purchase apartments at the King David through the Bank of Georgia’s mortgage program. Bank of Georgia mortgages ensures maximum affordability for customers, by offering co-funding of only 10%, payment period of the loan up to 20 years and preferential interest rate of 7%. Customers interested in purchasing the Kind David residences are offered the min 48 m² apartments. In case of internal credit, the initial installment is only 5%. There is also a special offer for solo users and they enjoy 10% discount. From now, in case of purchasing apartments at Kind David, residents are available to start repair works and move to their apartments in December. Residents immediately become King David club members and are offered 50% discount voucher on every services, provided by the infrastructure of the project. Over 40% of the project is made up by infrastructure. A spa center; fitness center; swimming pool; beauty center; restaurants and Garden on terrace will all be located within the complex. A recreation zone spread over 1,400 square metres will be located on the terrace. A space for children as well as a health-food cafe will be dotted with evergreen shrubbery. King David is a project where the time of its residents and workers is valued greatly. The concept of the project, which gives one the impression of living in a small multifunctional city, is very innovative in today’s Georgia.

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BUSINESS

July 10, 2017 #200

PwC Announces Admission of the First Georgian Partner The professional services firm PwC Georgia (PricewaterhouseCoopers) announces that effective 1 July 2017, Lasha Janelidze has been promoted to a Partner within the Assurance Services. Starting from the establishment of PwC Georgia in July 2005, Lasha has been instrumental in helping to grow the local practice and has made a considerable contribution to establishing the PwC brand of the Tbilisi office in the Georgian market. He has worked with local and international PwC teams within the Assurance, Advisory and Tax and Legal practice areas to bring value to a broad range of local and international clients in various industries. Lasha has 15 years of extensive experience working with key industry players in the Georgian market and is the Fellow Certified Chartered Accountant (FCCA). This is a major career milestone for our people! Our partners are proven leaders, who are committed to developing themselves and their teams.

Business Technology University is planning to cooperate with VR House BTU is going to approach new level of method of studying by using Virtual Reality (VR)three-dimensional computer generated environment. Students can achieve a sense of presence at University by using a headset despite geographical location.They are able to connect one another to attend trainings, lectures or meetings in the same auditorium which simply makes the process interactive. User becomes part of this virtual world or is immersed within this environment and whilst there, is able to manipulate objects or perform a series of actions.

BDO Declares Significant Growth by 2016 Results BDO declared a significant growth as compared to the previous year. According to the data released by Supervisory Agency for Accounting, Auditing and Reporting, BDO’s combined fee income for the 2016 financial year amounts to GEL9,775,521 and establishes solid 3rd place for the firm in the official ranking of audit companies operating in Georgia. This translates into 41% growth ratio reflecting service diversity and organic growth as well as significant merger in the beginning of the year. The merger accounts for major new direction of technology advisory now presented under the brand name of BDO Solutions. Tangible 35% growth in dedicated partners and staff is the matter of singular importance as always.

Georgian Startup Develops Universal Model of Cottage Georgian startup ‘’kote.ge’’ set the goal to make buying a home available for everyone. They developed universal model of cottage which can be consumed in various ways,in any climate conditions. Cottages can be residential or innovative model of resting space, which will be available for any interested person with minimal effort and financial resources. CBW had an interview with a founder-Levan Tkemaladze. “OSB3 is one of the materials in interior,which is natural wood product,even more firm and flexible than natural wood,as well as better water resistance. ’Our goal is to make buying a home available for everyone. These homes are mobile and have an easy do it yourself setup.’’ Cottage consists 7 pieces and takes 25 minutes to be built. Later,it can be disassembled and transported to another location as many times as an owner needs.Or,you can even move it by a trailer assembled. We offer 8.2 square meter cottages at this stage which can be purchased at hypermarket or ordered on internet based on your taste and wish. Out cottage construction doesn’t require any permission Except for the occasions where appropriate regulation is applied to the given land plot.

Mototravel Georgia from Netherlands The country that made the deepest impact on two motorcycle enthusiasts turned out Georgia and that’s how the idea for ‘’Mototravel Georgia’’ was born. Willem Van Houten first went to Georgia in 2014 for an internship at the Dutch Embassy in Tbilisi. Meanwhile he was cultivating the idea of importing Motorcycles from Netherlands with Evert Brolsma. By 2016 he started a crowdfundingcampaign to take the company to the next level by buying 8 BMW of excellent quality. What is the service that you offer? We brought high quality motorcycles from the Netherlands. All our bikes have suitcases mounted on them for the luggage/ convenience,helmet, gloves and motorcycle insurance. Our motor-

cycle tours can be booked on:MototravelTbilisi starting from 5 to 12 days include everything, meaning we provide the fuel, foods & drinks, cab fares and the stay at hotels/guesthouses. Our clients are very surprised that they see so little motorcycles on the road here. because they all say the country is perfect for motorcycling. What are the safety standards? Our motorcycle insurance covers almost all damages. However, our insurance only covers the motorcycles, we strongly recommend all our clients to make sure that they are properly insured in the event of any accident. We strongly warn customers that it is not allowed under any circumstances to ride into or within the illegal breakaway regions of South-Ossetia and Abkhazia with our motorcycles.

Clubhouse Turned into a Growing Business Cory Greenberg arrived in Georgia in 2011 from U.S. Moving to Tbilisi After two years of volunteering in Gardabani, he had no intention that clubhouse in a hidden spot would happen to turn into an international, diverse place where locals,tourists or immigrants from around the world would gather every night.That’s how it established as a bar. In 2016 there was already a need of opening a new,larger bar where the space would be enough for growing customers. CBW had an interview with Dive and DivexFabrika owner-Cory Greenberg. Please tell us a little bit of your background, what was your purpose coming to Georgia? I originally came to Georgia in 2011 as a Peace Corps Volunteer. I lived in Gardabani for two years helping public school number one increase its English language teaching capacity. Did you have any expectations of starting a business?

DIVE originally started as a clubhouse for a group of friends in the Summer of 2013. We had no plans to be a real business. Just a fun place for us and our friends to enjoy cold beers during a hot summer. Do the result and your intention initially match? No,we had no initial plan for a long term business. But quickly, during the first summer we notice that people we didn’t know were coming, and they were bringing their friends, and by the end of the summer we had a burgeoning business with diverse clientele. What do you like most about being a bar owner? That I have been able to create a space that people have adopted as their community. Every night we have Americans and Iranians and Russians and Ukrainians, Georgians and Armenians and Turks. DIVE isn’t just a bar, it’s a community or family or culture. Creating this kind of space is what I like most.


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July 10, 2017 #200

“The meeting was very useful. We had performed huge job for a long period to meet this day prepared. Preliminary preparatory works started about 2 months ago. We are studying models, think of future plans. We have selected 55 ones from business models”. Ekaterine Zhvania - CEO of GEPRA

Global Group Acting Locally –Ferrero For Georgia

GEPRA Moves to Innovative Business Model

The Ferrero Group presented its 7th Corporate Social Responsibility report (CSR), with a Special Focus on projects in Georgia. The report was introduced by Ambassador Francesco Paolo Fulci, Vice President of the Ferrero Group and Aldo Uva, Chief Operating Officer Strategic Business Units Ferrero International Caucasus Business Week had a brief interview with Aldo Uva.

- Could you tell us briefly what CSR projects, Ferrero Group have implemented in Georgia? - The Ferrero Group is present in Georgia since 10 years with its agricultural company named Agri Georgia, one of the most important actors in the local hazelnut business. Agri Georgia’s long-term vision is reflected in several sustainable development activities, specifically tailored for the local requests and needs of the sector. Among these activities we can mention: Ferrero’s investments in green economy through the project called Afforestation with Hazelnut Plantations in Western Georgia; a dedicated training program in collaboration with USAID which involved 3000 farmers; the assistance to local schools, orphanages and churches; the contribution to the Georgian Hazelnut Growers Association foundation; the stimulation of the private sector investments in critical hazelnut post-harvest infrastructure through the Grant Program for Husking, Drying, and Storage; the promotion of modern production though the Turnkey Solution Program. - Why are exactly this CSR activities implemented? Is it based on global CSR policy or local needs? - As indicated by our CEO, Giovanni Ferrero, “Being a Global Group does not prevent us from acting locally, thus we maintain our strong bond with the people and territory in which we operate”. We define the local CSR activities depending on local context and specific needs but we guarantee that each activity is in line with the Group CSR strategy and reflects the Group values. - In past years CSR has become inevitable part of company’s activity schedule, how do you asses the importance of CSR in your company? - For the Ferrero Group, implementing social responsibility in its daily activities is a characteristic written in its own DNA. This is emblematically demonstrated by the farreaching words expressed by Michele Ferrero already in 1957: “I personally pledge to dedicate everything I do and all my intentions to our company, assuring you that I will only feel satisfied once I am able to ensure you and your children a safe and peaceful future”. The best assessment is the one we conduct every year in order to write the corporate social responsibility report. In fact, the CSR Report not only contains the CSR strategy and goals for the future, but it mainly reflects the concrete social and environmental activities carried out around the world in the previous fiscal year.

The Ferrero Group is present in Georgia since 10 years with its agricultural company named Agri Georgia, one of the most important actors in the local hazelnut business. Agri Georgia’s longterm vision is reflected in several sustainable development activities, specifically tailored for the local requests and needs of the sector

GEPRA, PR and marketing communication company, has been operating on Georgian communication market for 15 years. The organization held the 2017 strategic meeting on July 2 and agreed a new operational method – business model. The company has moved to a new stage and outlined new challenges for further development. According to the company information, the new model enables customer organizations to enjoy a wider range of services. Moreover, at the meeting two new senior consultants were named. In her interview, CEO of GEPRA Ekaterine Zhvania unveiled reasons of moving to a new business model, appraised the 2016 performance results and divulged future plans. The meeting was very useful. We had performed huge job for a long period to meet this day prepared. Preliminary preparatory works started about 2 months ago. We are studying models, think of future plans. We have selected 55 ones from business models. We have analyzed them at the meeting and agreed on one hybrid and very interesting model. This is the result of yesterday’s meeting – useful and efficient teamwork. The past year was very successful and interesting. We established partnership with Ketchum Maslov communication agency – one of the major and diversified international PR agencies. The next year will bring many new things. The new business model is to ensure further growth and development of our company to attain bigger plans. Therefore, we believe that changes are necessary to make our company stronger. Based on the past year’s experience and analysis, we have prepared a new development plan. We continue working on the chosen business model. We will refine and polish the plan for one more month and GEPRA will continue working on the ground of this operational method. Meanwhile, two new senior consultants were introduced to our team – Ketevan Galumashvili and Tinatin Samkurashvili. This promotion is the result of huge job they have performed for our company”, GEPRA Director Eka Zhvania noted.

How experienced the promoted consultants are, which projects they have implemented and what duties they will fulfill at GEPRA - We have posed these questions to GEPRA senior consultants Ketevan Galumashvili and Tinatin Samkurashvili. M: - How would you describe your working experience at GEPRA? Tinatin: - I have been working for GEPRA since January 2009. I was 20 years old when I came here, in September 2008. I passed the course of integrated marketing communications at PR school, a joint project of GEPRA and Georgian-American University (GAU). GEPRA hired me, as a successful student, for a probation period. Thus, I have been working here for 9 years. In September 2009 I became PR school manager and I guide this direction even today. Ketevan: I have been working for GEPRA as PR consultant for 10 years. This experience have outlined my strong features and potential. Besides GEPRA, I have been a mentor for GAU PR school projects. I have been working with students on various presentation topics, including development of communication strategy and project offers. And recently, about a month ago, I became a manager

for Startcom, GEPRA competence center. This is a new project of GEPRA – space, a certain platform, where private and public sectors, nongovernment organizations or media agencies acquire the opportunity to plan and hold discussions of any format on relevant issues. We plan to hold wide discussions over relevant issues such as public-private partnership (PPP) and public finance initiative (PFI). M:- At the 2017 strategic meeting you summed up the last year’s performance and drafted future plans. Would you name successful projects you have participated in last year? Tinatin: - I would name International Folklore Festival that was held for the first time in 2016. Four countries have taken part in that event. We have worked on the festival branding and communication campaign. As a result, about 9000 spectators attended the concert at Black Sea Arena. Moreover, Wings for Life World Run is one of my favorite projects, which was held for the fourth time in 2017. Over the past years GEPRA has been the event partner. I would also name a development of communication strategy and action plan for Public Defender. This process has given me quite important experience and played a certain role in my career promotion. Ketevan: Through the past year I have worked on project by order of Caucasus branch of WWF – Forest Week. This is my authorial project. I have worked on ideas, slogans and content and implementation issues. From Forest campaign I would name a social virus campaign. We arranged yttriums at Tbilisi Mall with inscription -” Air on Sale” ad we placed branded bottles with various inscriptions: “Mountain Air, Sea Air and Forest Air. Main message of the campaign was: Care for Forest, Breathe Free! We sold packed air and supervised reaction of citizens. Many of them showed readiness to buy clean air. This campaign has helped many citizens start thinking of threats from damaging environment and forest. I have also worked on Microsoft project – Cloud in the Clouds that covered fourth technological revolution issues. Streaming was carried out from the highest place of the capital city, Tbilisi Television Tower. Experts and IT specialists took part in the discussion. Social network users were able to ask questions in live air and learn more about cloudy technologies. M: At the strategic meeting you learned that you had been promoted to the position of a se-

nior consultant. What duties does this position imply in GEPRA? Tinatin: You should pass a long way to become a senior consultant and GEPRA staff steps on this way in everyday job. This status signifies that the company shows trust to you and believes that you are ready to plan, implement and manage project of any size and complication, because you have gained due experience. As to duties, besides you remain projects manager, your functional role in the company grows. You participate in taking all important decisions to promote the company development. It is huge responsibility to represent GEPRA as a senior consultant. Ketevan: - This was unexpected decision and a certain surprise. Senior Consultant for GEPRA. This is higher responsibility and this is an absolutely other dimension. I have been supervising and learning from them, who are senior consultants, for many years. And I know what quality and competences are are required. I know what to make focus on. These issues may seem difficult, on the one hand; however, this is a worthy job, on the other hand. New position at GEPRA is a source for planing further work, new energy and motivation.


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July 10, 2017 #200

Brand History – SakCable

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SC SakCable is Georgia’s major manufacturer of cable products. Founded in 1959 the company’s key function is to manufacture copper and aluminum cable products. In October 2016 the current administration took over the plant management. As a result of cooperation with Sket company, SakCable carried out re-equipment project and bought two new machineries, established modern technological process and increased assortment and volume of products, improved quality,

established firm business contacts with suppliers of raw materials, improved technical cycle and introduced a modern system of quality management. As a result of the mentioned steps, the company became able to produce new sort of cable products. Currently, SakCable produces about 2000 products of 70 sorts. A part of the products is exported to Armenia. Negotiations are underway with European countries. On December 23, 2008 SakCable ob-

tained ISO 9001: 2000 certificate. In 2012 the company carried out rebranding project. New identification attributes of the brand combines business priorities and experience gained for many years. As a result, the company has managed to take leading positions on the market. On March 13 of the same year, the company successfully passed certification, proved quality management efficiency and system supervision over quality improvement. As a result, TUV SUD, Germany’s certifying body, granted ISO 9001:2008 standard certificate to SakCable. Idea of Production Commencement – the plant opened in 1959, however, this culture, tradition and experience existed in Georgia. The idea arose in 2004. Edisher Mamaladze, head of the company supervisory board: “In 2004 several partners owned the company that used to import cables. As one of the importer companies, we took part in a state tender and won it. Father of one of my partners was working in this plant and he explained that cables could be manufactured in Georgia too. We liked the idea. Several persons jointly bought the plant, made investments and launched its re-equipment”, Mamaladze noted. Main Difficulties in Brand Establishment Process – The process of becoming perceptible and establishment on the market turned out very difficult. The

company founder noted that the market was saturated by imported products. Appearance of SakCable company was very unpleasant moment for market players . In that period, trade organizations perceived SakCable as an enemy rather than an alley, the company director noted. However, after years we have this result - “We have spent much time to prove that we were not their enemy and we enabled them to work”. History that Made Significant Influence on Brand’s Success – This is stability and high-quality product. Initially, SakCable used to manufacture 10 varieties of products. SakCable managed to establish itself on the market thanks to high quality products. The country is developed, the market grows and demand for high quality cable products grows every day. The company tries to satisfy this demand. SakCable produces affordable and highquality products. All stages of production are under control. The company has such identification signs that enable to surely identify manufacturing plant, exact time of production, responsible bodies, all required technical parameters and so on. Logo and Brand History – Name of SakCable has historical roots. The Sovietperiod plant was called in this way and this name has been maintained today. As to logo, it was selected in 2013 as part of rebranding project.


July 10, 2017 #200

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WORLD Around AMD 600 billion lent to farmers in Armenia over last four years

Global cement giant opens 140-mln euro plant in Central Anatolian city Sivas Brazil’s Votorantim Cimentos, one of the world’s leading cement producers, opened a production plant in the Central Anatolian province of Sivas for a 140 million euro investment on July 5 in a bid to boost its expansion in the region. This was also the largest industrial investment which has ever been made in Sivas, according to a follow-up press release. Through this investment, the company modernized the Sivas Cement Factory, for which the foundation was laid back in 1938 and which later became the first plant built by the state after the Turkish Republic was founded, read the release. The company, which has production plants across Turkey, plans a further 35 million Turkish Lira (8.5 million euro) investment in Turkey in 2017, it added. Votorantim Cimentos Türkiye Global CEO Walter Dissinger said Turkey has big growth potential in terms of construction and exports. “Turkey has also a labor force of high quality. In light of these key opportunities, we made our largest investment outside the Americas in Sivas,” Dissinger added. The company has operations in a total of 14 countries and has a 57.5 million ton of annual production capacity, according to the release. With the new investment in Sivas, its production capacity will raise by 40 percent to 3.6 million tons, it added.

Over the last four years, banks have lent around AMD 600 billion to farmers in Armenia, Arthur Javadyan, head of the Central Bank of Armenia, said Thursday in the National Assembly at the 2016 government budget execution discussion. “About AMD 90 billion has been provided to farms as subsidized loans at a 8% interest rate,” he said. Javadyan said that interests were lower than before. Mortgage lending interest rates were significantly downed, he said. The mortgage loans total AMD210 billion today. They are available everywhere at a 12-percent interest rate maximum. There are special programs, such as mortgage loans for young families and specialists. They are available at 8.5% in Yerevan and 6.5% in provinces. According to Javadyan, banks’ aggregate consumer loan portfolio amounts to AMD 452 billion now. Farmer and industrial loans together exceed consumer loans twice. Asked by Mikael Melkumyan, Tsarukyan faction head, what steps are being taken to ease the debt burden of

farms stricken hard recently by hail in Armavir, Javadyan said hail has inflicted damage to nine communities. “We have conducted a study working with banks and credit organizations which have lent money in these communities,” he said. “We have information about the number of the damaged units and on the damage inflicted. In this context, we invent nothing new, since this would be wrong in regard to those who had been harmed in the past. We do the same – banks apply individual approach to all borrowers.” Individual approach, he said, implies loan repayment adjournment, extension of grace periods in some cases and the lowering of interest rate in all cases when it is higher than 15% and in some cases 11%.Over the last four years, banks have lent around AMD 600 billion to farmers in Armenia, Arthur Javadyan, head of the Central Bank of Armenia, said Thursday in the National Assembly at the 2016 government budget execution discussion.

Volkswagen re-enters Iranian market after 17 years

EU extends sanctions till Russia freezes over

SOCAR discloses revenues from activity in foreign countries

The European Union has prolonged antiRussia economic sanctions, keeping restrictions on business with Russian energy, defense, and financial sectors until January 31, 2018. According to a release published on Wednesday, the “decision follows an update from President Macron and Chancellor Merkel to the European Council of 22-23 June 2017 on the implementation of the Minsk Agreements.” Russian presidential spokesman Dmitry Peskov said the Kremlin takes the EU’s extension of sanctions “negatively and with sorrow.” Last week, EU leaders confirmed their decision to keep sanctions in place, with the President of the European Council Donald Tusk tweeting “Agreed. EU will extend economic sanctions against Russia for their lack of implementing the Minsk Agreement.” The sanctions were first introduced over the crisis in Ukraine and the Crimea reunification in 2014. They include an arms export ban, limited access to finance for Russian banks, and travel bans for over 150 individuals. Many measures, specifically, prohibit financial interactions with Crimea. In response, the Kremlin imposed an embargo on EU agricultural produce, food and raw materials. Since then the sides have repeatedly broadened and extended the restrictive measures.

Revenues of Azerbaijan’s state oil company SOCAR in 2016 from activity in Switzerland amounted to 40.44 billion manats compared to 23.85 billion manats in 2015, according to the consolidated report on SOCAR financial activities in 2016 audited by the Ernst & Young UK company and published on its website. In late June 2012, the US Exxon Mobil multinational oil and gas corporation handed over the assets of its Esso Switzerland company to SOCAR management. The total value of assets acquired by SOCAR in Switzerland amounted to $330 million. With the acquisition of Esso Switzerland, the SOCAR company received a retail network, the company’s division engaged in fuel marketing for industry and wholesale clients (division sells household fuel and gas cylinders to independent distributors throughout Switzerland). SOCAR also got Wangen-Olten gas filling plant, gas filling stations and joint enterprises engaged in refueling of aircraft at airports of Geneva and Zurich, as well as the Swiss company on ensuring and distribution, which controls joint ventures managing terminals and pipelines. SOCAR revenues from the activity in

Turkey in 2016 amounted to 3.48 billion manats compared to 2.57 billion manats in 2015, from the activity in the United Arab Emirates – 1.16 billion manats compared to 948 million manats in 2015, from the activity in Georgia – 1.05 billion manats compared to 748 million manats in 2015, according to the report. SOCAR revenues from activity in other countries amounted to 615 million manats in 2016 compared to 360 million manats in 2015. In total, SOCAR revenues in 2016 amounted to 5.17 billion manats compared to 4.63 billion manats in 2015. Revenues of SOCAR obtained in 2016 in Azerbaijan amounted to 51.905 billion manats compared to 33.1 billion manats in 2015. SOCAR includes production unions “Azneft” (enterprises on oil and gas extraction on land and sea), “Azerikimya” (enterprises of chemical industry) and “Azerigaz” (gas distribution). The State Oil Company is the only producer of oil products in the country, and also has petroleum stations in Azerbaijan, Georgia, Ukraine, Romania and Switzerland. SOCAR is the co-owner of the biggest Turkish petrochemical complex “Petkim”.

German carmaker Volkswagen (VW) said Tuesday it would resume exports to Iran as soon as next month, marking a return to the resurgent market of the Islamic Republic after a 17-year absence. The aim is to reduce the manufacturer’s dependence on volatile markets such as China and Brazil. VW’s deliveries to China reportedly dropped 3.3 percent between January and May to 1.51 million cars while sales in Brazil fell 1.9 percent to 116,600 vehicles. The company sealed a deal with local importer Mammut Khodro, which is due to import VW Tiguan and Passat models through eight dealerships mainly in the Tehran area. VW is seeking to catch up with European rivals Renault and Peugeot Citroen that became the first car makers to re-enter the Iranian car market after Tehran’s 2015 deal with world powers. Europe’s largest car manufacturing group began selling vehicles in Iran in the 1950s, but suspended exports in 2000 as the international sanctions introduced against Tehran over its nuclear weapons program began to bite. “We are strengthening once more our international presence,” said Anders Sundt Jensen, VW’s project leader for Iran in an emailed statement, as quoted by Reuters. The company is trying to embrace new overseas markets as it struggles with multi-billion euro losses following the diesel gate scandal. VW is currently investing into electric car projects and new mobility services. The latest move will help the automaker to get to know local market conditions and reestablish the Volkswagen brand, according to the statement. Annual sales in the Iranian market are seen rising to about three million cars over the medium- to longer-term, VW said, citing government estimates.


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PUBLICITY

July 10, 2017 #200


July 10, 2017 #200

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 76-g Chavchavadze Ave., Tbilisi Tel: 231-11-61, 231-14-54 E-mail: 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

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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


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PUBLICITY

July 10, 2017 #200

Profile for Caucasian Business Week

Caucasus Business Week #200  

Caucasus Business Week #200

Caucasus Business Week #200  

Caucasus Business Week #200

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