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July 24, 2017 #202

July 24, 2017, Issue 202 - www.cbw.ge

interview German Blog About Georgia by Ralph Hälbig Reaches More Than 3 Mln Viewers Pg. 9

“Aghadgine’’ Treepex to Offer Innovative Technology Service To the Global World Pg. 11

Tinatin Stambolishvili: Television Remains Leading Media Despite Attachment to Social Networks Pg. 8

Georgian Hazelnut Health Hazard or Recognized Georgian Brand in Europe?

Gas Tariffs Surge in Georgia Natural gas consumer price has increased. In Tbilisi natural gas rose in value by about 0.5 Tetri, while in regions the tariff increased by 2-15 Tetri after GNERC satisfied the application of gas companies, which demanded for gas tariff correction after increased operational costs. Sharp discussions broke out at the July 17 meeting of GNERC. It should be noted that almost in all regions, common natural gas tariff will run, excluding Tbilisi. Before gas consumer price growth, gas transportation tariff was also raised and it effected final price. Natural gas transportation tariff rose by 0.5 Tetri. GNERC members took unanimous decision. Starting July 20, gas distributor companies will pay 1.9 Tetri for transporting one cubic meter. According to GNERC information, tariff increased because of increased operational costs that are necessary for keeping the network in order. At the same time, gas companies expected the tariffs to rise more. Transportation is one of the components of consumer tariff. GNERC will discuss final price of natural gas.

Pg. 4

Who are Business Angels?

Pg. 7

Small and medium-sized business require funding, especially at the early stages. The main source of financing is usually non-formal investors such as friends, family and so-called “business angels.” In the United States, 55%-72% of “business angels” mostly invest in start-ups or at the earliest stage of development. The same situation is in Great Britain where 50-65 % of business angels invest in small and middle sized enterprises at the above mentioned stage. Who are “business angels”? The terms “business angels” and “angel investors” have the same meaning. In many countries “business angels” are the second way to finance newly created ventures and (highrisk) enterprises. For Georgian entrepreneurs, the main source of funding is a banking loan but access to this form of financing for start-ups is limited. Pg. 6


Newsroom

2 Government

Finance Minister Hopes that Economy will Grow by More than 4% this Year

The Minister of Finance hopes that the country’s economy will grow by more than 4% this year. The minister has set the pretension that gives the possibility to make such prediction.

First Test Train from Turkey to Georgia Sent through BTK Railway Route

The BTK Railway, an important section in the middle of the modern Silk Road, will soon be fully commissioned, increasing connectivity among Azerbaijan, Georgia and Turkey.

economy

Gas Transportation Tariff Grow

Since 2000 gas transportation tariff for steam power plants was 0.9 GEL per cubic meter, Kazbegi Gas – 0.9 GEL, Dusheti Gas – 1.167 GEL and other consumers – 1.383 GEL. The mentioned tariff will be valid through December 31, 2018.

Georgia and Ukraine to Reduce Cargo Transit Duty

Transit cargo duty reduction will be discussed at GeorgiaUkraine negotiations in Batumi. The meeting will discuss cargo transit issues between Europe and Asia.

banking

Banks’ Profit Increased 3 Times

Consolidated net profit of the banking sector is 95 882 million GEL, which is 2.7 times more comparing to the previous year (06.2016 – 36.165 million; +165% y-o-y). To note, 15 out of 16 banks have a total profit of 448 760 000 GEL.

TBC Capital Company to implement 10 Million USD bonds Placement of Nikora

The term of Nikora bonds are 2 years, the annual interest rate of 9%. Finding investors, interest and bonds were carried out by TBC Capital.

business

Industrial Products Manufacturing Price Grows

In June 2017 the index of changes in industrial products manufacturing prices made up 0.5% month on moth. Upturn in prices on finished metal products constituted 1.8%, as well as prices on food products, drinks and tobacco products rose by 1.1%.

Cigars and Cigarettes Imports Grow in Georgia

According to Geostat, in 2016 Georgia imported 2 023 000 cigars, up 972 000 cigars as compared to 2015. In 2016 Georgia imported 8 441 000 cigarettes, up 500 0000 cigarettes as compared to 2015.

company

VEON Launches Personal Internet Platform in Georgia

Named VEON, the platform was unveiled to Italian customers earlier this year, and now the upgraded version will be available to hundreds of millions more across the world.

July 24, 2017 #202

Georgian-Ukrainian Business Forum urges investors to boost cooperation

G

eorgia has hosted a Georgian-Ukrainian Business Forum, seeking to attract more investments from Ukraine and deepen the bilateral cooperation. Representatives of 120 Georgian and 34 Ukrainian companies attended the Business Forum, which aimed at establishing business ties between the business societies of the two country. Georgia’s Prime Minister Giorgi Kvirikashvili, who also participated in the Forum together with Ukrainian President Petro Poroshenko, promoted business-friendly Georgia and informed foreign investors about opportunities offered by the country. We, Georgia and Ukraine, face big challenges. Russia’s actions – the occupation of our countries and militarisation of its regions – has violated the balance and worsened the security environment in the South Caucasus and Black Sea region,” said Kvirikashvili. I am sure, we will achieve deoccupation and unification of our countries thanks to the active and sustainable support of

the international community,” he added. Georgia and Ukraine are making important steps towards EU integration. We know this path is not easy and we will keep facing [these] challenges, but we also know how to overcome these challenges – by strengthening reforms, by sustainable development of the economy, by the strong protection of democratic values and, more importantly, by supporting each other,” Kvirikashvili said. Trade turnover between Georgia and Ukraine reached $500 million in 2016, said the PM and added that “there is obvious chance of further develop-

ments in trade relations”. On the other hand Ukraine’s President Poroshenko invited Georgian companies to do business in Ukraine. 50 companies operate in Georgia with Ukrainian capital, however the Foreign Direct Investments from Ukraine reached only $42 million in the first quarter of the year. Share of Georgian investments in Ukraine is much less and reach only $4.6 million. My friends, I am here to invite you to Ukraine,” said Poroshenko. Within the Forum the company representatives had business-to-business (B2B) meetings to establish business communication.

investment forum in Batumi

G

eorgian and Ukrainian presidents have addressed participants of an investment forum in the Georgian seaside town of Batumi. Addressing the participants of the forum in Georgian, Ukrainian President Petro Poroshenko said his visit to Georgia has proved how close Georgians and Ukrainians are. He said “these two days have been the brightest in my life”. Calling Georgia and Ukraine “the two leaders of the Eastern Partnership (EaP)”, Poroshenko said “we did not only receive the proof of cooperation between our countries, presidents, [and] governments, but also the proof of our strategic cooperation”. We have carried out a number of reforms and have radically changed our countries, Ukrainian and Georgian citizens have received visa-free travel opportunity [with the Euro-

BUSINESS WEEK caucasus

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

pean Union/Schengen Zone] but I would like to ask you not to simplify the meaning of visafree travel – this is not only an opportunity for Ukrainian and Georgian citizens to cross their lands with biometric passports, but it’s rather a farewell with the Soviet Union and the Russian empire and our return to the European family”, President Poroshenko said. Georgian President Giorgi Margvelashvili said this day “is an emotional illustration” of the joint vision Georgia and Ukraine are sharing about the future. Georgia and Ukraine are both clearly European oriented countries in terms of business. The both countries have signed Association Agreement and Deep and Comprehensive Free Trade Area (DCFTA) [with the European Union], both countries have visa-free regimes with the Schengen Zone. It means that Georgia and

Ukraine have clear and interesting environment”, Margvelashvili said. The two presidents discussed Georgia’s tourism potential and encouraging the participants of the forum to better familiarise with the country and its seaside region of Adjara. Within the investment forum, business organisations participating in the forum had an opportunity to exchange ideas and share experience in various directions. An agreement was signed between the officials of the Georgian region of Adjara and Ukraine’s region of Odessa on deepening further cooperation in 2017-2019. Ukrainian President arrived to Georgia on Monday. Up to now he has met with the Georgian officials and visited different parts of Georgia including the occupation line between Georgia and its Russian occupied region of Tskhinvali (South Ossetia).

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 24, 2017 #202

publicity

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econo-mix

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July 24, 2017 #202

Gas Tariffs Surge in Georgia Natural Gas Price in Regions Rose by 2-15 Tetri

N

Ramaz Gerliani PhD in Economics

Water Export Tendencies

‘‘

Merab Janiashvili Economic Analyst

In 2006-2016 Georgia’s economic growth constituted 4.4% on average. In this period the highest indicator was registered in finance sector (Indirect evaluation of financial mediation service + financial activity). Finance sector was growing by annual 25%. Mining industry is second with 8.2% and real estate operations, leasing and consumer services grew by annual 8.1%.

‘‘

According to official data, in 2016, mineral and fresh water export decreased by USD 2 million as compared to 2015. Exports in USD as the most converted currency have decreased in Kazakhstan (USD 4.1 million), Azerbaijan (USD 0.93 million), Belarus (USD 0.25 million) and Turkmenistan (USD 0.35 million). If we exclude Kazakhstan, export increased by about USD 2 million in 2016. Moreover, there has been a sharp increase in new markets in a number of countries and regions. A logical question then arises. How can a quantitative decline in water exports in the monetary index be explained? A decrease in exports may be associated with the sharp devaluation of the currencies in these countries in 2016 as well as the US - GEL exchange rate. For example, KZT (Kazakhstani tenge) suffered a sharp decline at the end of August 2015 which would have made for a negative impact on the country’s export in 2016. The devaluation of the Kazakhstani currency also continued in 2016. As well, AZN (Azerbaijani manat) also devalued by 31% in December 2015 against GEL. Additionally, BYR (Belarusian ruble) was devalued by 16% in 2016 as compare to 2015. All of the above mentioned comprise the main reasons for the decrease in water export (fresh and mineral) in the monetary indicator (in USD). Notably, a decline is not observed in the quantity indicator. For example, in 2016, 116 thousand tons of water were exported. In 2015,101 thousand tons were exported. Of course, the main importance is export estimated in cash. There is no decline if water exports are expressed in the national currency. USD is an intermediate currency between Georgia and a number of major exporting countries. In 2016, USD devalued by 3.5% against GEL as compared to 2015 whereas water exports estimated in cash declined by just 3.0%. Finally, analysis shows that water export has in fact been more positive than negative. There is nothing alarming about the situation of water export. The production and export of drinking water need more private investment, more private capital, more private assets, promotion from the state and, most importantl, a market and access to an appropriate niche market, in particular. According this, we can firmly proclaim our facilitating civil-national initiative - which can be called “Be Your country’s economic emissary” - all citizens who are abroad easily can ask/request water from Georgia (possibly a specific brand) in hotels; Market etc. Therefore, there needs to be campaigns targeting the export of Georgian water to many new markets and increasing the demand or demand expectation in these markets. Of course, this may alsobe the case for other domestically produced items but water is easier to export, as it is a primary product, while at the same time Georgian waters meet modern market demands with their unique quality. This means that we can easily launch a campaign “Be Your Country’s Economic emissary “ Water, as an export product, is growing in Georgia and our analysis shows that the growth trends will most certainly be maintained in the future.

atural gas consumer price has increased. In Tbilisi natural gas rose in value by about 0.5 Tetri, while in regions the tariff increased by 2-15 Tetri after GNERC satisfied the application of gas companies, which demanded for gas tariff correction after increased operational costs. Sharp discussions broke out at the July 17 meeting of GNERC. It should be noted that almost in all regions, common natural gas tariff will run, excluding Tbilisi. Before gas consumer price growth, gas transportation tariff was also raised and it effected final price. Natural gas transportation tariff rose by 0.5 Tetri. GNERC members took unanimous decision. Starting July 20, gas distributor companies will pay 1.9 Tetri for transporting one cubic meter. According to GNERC information, tariff increased because of increased operational costs that are necessary for keeping the network in order. At the same time, gas companies expected the tariffs to rise more. Transportation is one of the components of consumer tariff. GNERC will discuss final price of natural gas. The commission does not make comments on whether natural gas price will rise for consumers, while expertს expect the tariff to grow further. After determination of a new price of natural gas, Ministry of Energy should take one more decision. Namely, the Ministry plans to annul the decree by former Energy Minister Aleko Khetaguri regarding gas tariff regulation. This signifies that in regions a unified tariff has been termined for all subscribers by GNERC. Before price growth, old subscribers used to pay 45 Tetri per cubic meter (who joined the network before 2008), while the new ones used to pay 5 Tetri. Under the new decision, Kztransgas Tbilisi subscribers in Tbilisi will pay 46 Tetri and 56-57 Tetri in regions. «For many years I and my colleagues have been discussing, writing and demanding for cancellation of this absolutely illogical decree (supply deregulation, when the country has one monopolist supplier), but in vain. However, this statement by GNERC chairperson gave certain hopes that this absolutely unjustified decree will be abolished by the Energy Minister.

The above-mentioned statement of GNERC chairperson also implies a commencement of expected public discussions regarding the so-called natural gas social tariffs. I think that this tariff is neither social nor fair. When only 4% of population consume 40% of total volume of consumed natural gas, similar tariff cannot be fair, reasonable and social, even more so, this tariff has nothing common with optimal and reasonable use of state-owned natural gas resources. And one more theme that should be discussed is also related to natural gas tariffs in household and commercial sectors. For information: our country is an only country in Europe, including eastern European countries, where commercial (industrial) tariff exceeds household tariffs. The situation is opposite in all other countries. All countries have determined economic development priorities. Economy should create job places and payers of taxes, natural gas or electricity tariffs», ex Energy Minister David Mirtskhulava said. According to the tariff before July 20, Tbilisi residents used to pay about 45.620 Tetri for a cubic meter, while now GNERC has set 46.153 Tetri for a cubic meter (including VAT). Gas distribution in Tbilisi is carried out by LLC KazTransGas Tbilisi, and in Regions – by SOCAR Georgia Gas and SakOrgGas. LLC KazTransGas-Tbilisi is a subsidiary of JSC KazTransGas that has been serving a major number of consumers in Tbilisi since 2009. The determined gas tariffs came into force on July 20 and will be valid through December 31, 2018. At the same time, it should be noted that under GNERC decision, top margin tariff for KazTransGas Tbilisi that supplies natural gas to Tbilisi, was reduced to 46 Tetri from 50 Tetri. Price change has not been reflected on subscription tariff, because under the memorandum, the Government used to subsidize 5 Tetri of the consumer gas and population used to pay 45 Tetri. However, the changes have made gas tariff more expensive because of higher gas transportation tariff. New tariffs of natural gas, starting July 20: KazTransGas Tbilisi – 46.153 Tetri SOCAR Georgia Gas – regions – 56.94 Tetri SakOrgGas – Gori – 57.015 Tetri

“Government of Georgia will not subsidize natural gas tariff. This subsidy will be abolished. The 5-tetri tariff was moved to the supply price. Instead of 120 USD, the tariff is 105 USD. Therefore, the memorandum will not be extended. Neither regulation decree nor memorandum will run – it will be terminated after the new agreement will come into force. This is the efficient tariff that will be paid in unified form in due license areal. This will be a fixed efficient tariff for Tbilisi residents, while GNERC tariff will run for regions”.

Mariam Valishvili Deputy Energy Minister


July 24, 2017 #202

publicity

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opinion

July 24, 2017 #202

Who are Business Angels? Business Angels for Small and Medium-sized Business Development: Georgia’s Example

Shorena Tielidze Co-founder of Georgian Business Angels Assosiation

Small and medium-sized business require funding, especially at the early stages. The main source of financing is usually non-formal investors such as friends, family and so-called “business angels.” In the United States, 55%-72% of “business angels” mostly invest in start-ups or at the earliest stage of development. The same situation is in Great Britain where 50-65 % of business angels invest in small and middle sized enterprises at the above mentioned stage. Who are “business angels”? The terms “business angels” and “angel investors” have the same meaning. In many countries “business angels” are the second way to finance newly created ventures and (high-risk) enterprises. For Georgian entrepreneurs, the main source of funding is a banking loan but access to this form of financing for start-ups is limited. Perspective for Business Angel Network Development in Georgia The government has been actively promoting start-ups in Georgia since 2015. The Small-sized Entrepreneurship Promotion Program promotes business development through financial support or consulting services. A total of 1,656 startups were financed by the Made in Georgia program in 2016 which comprise 58% of the total funded projects. Research has revealed problems vis-à-vis the accessibility of funds for start-ups in Georgia. The problem of availability of financial resources was the main reason of creating and then implementing an action plan for the country under the project organized by the Swedish International Development Agency (SIDA). The Private Sector Development Strategy program involves representatives of 13 public schools and the private sector to set up the Georgian Business Angels Association which took place on March 22, 2017. The main idea of the association is to finance, small and mediumsized enterprises during their early stage of development by strengthening communication with investors. The idea for the network idea and the business angels concept is innova-

tive for Georgia. The Georgian Business Angels Association represents a platform where young entrepreneurs and investors can meet each other to change ideas and achieve successful results for both sides. Since its establishment, the association has attracted significant interest from governmental, non-governmental and private sector representatives who can become business angels or angel investors. The benefits that this association can bring for entrepreneurs and business angels are different. For small and mediumsized enterprises, the association can provide financial support for start-ups and share knowledge and experience vis-à-vis building and developing successful a business. At the same time, however, there is the issue of risks for Georgian investors concerning start-ups. The motivation for the “business angels” network can be financial benefits, social responsibility, supporting the production of goods and services for the public and job creation, among others. Role of the Government While „business angels” market is in the early stages of its development in Georgia and t needs special support from both the state and the private sector. First of all, it is important to increase the awareness of business angels in Georgia and encourage wealthier and high-income people to become an angel investors, also Cooperation with foreign business angel networks. Problems such as Georgia’s underdeveloped capital market, the high risk surrounding investment, the promotion of entrepreneurial skills for local entrepreneurs need to be solved. Even though the concept of the “business angels” network is is brand new to Georgia, there is a high potential for its development. With the support from the state and a high level of activity from the private sector and investors, the Association of Business Angels may become an important platform for start-up entrepreneurs to have access to financial resources and increase their entrepreneurial experience.


July 24, 2017 #202

trade

Georgian Hazelnut Health Hazard or Recognized Georgian Brand in Europe?

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nly two cases of excessive aflatoxin were registered in Georgian Hazelnut in 2017, the statement by Ministry of Agriculture of Georgia reads. The statement was released to react to information as if Georgian Hazelnut cannot be exported to EU market because of excessive aflatoxin. Aflatoxin in a scientifically-approved carcinogen and it creates preconditions for provoking cancer. Georgian product included in RASFF system in 2016 was found with excessive norm of aflatoxin. Tengiz Kalandadze, head of Agriculture Ministry department for agriculture products, noted that only a small volume of exported Hazelnut may be violating the legislation standards. As reported, according to EU food safety network operation, not only product documentations are examined at the state border (from the country of origin), but also the product in itself. If suspicious content is detected, information is transmitted to the center in Brussels. The data are examined there repeatedly and if the hazard is confirmed, the signal is transmitted to all European countries. Kalandadze explained that, for example, last year 9 cases of excessive aflatoxin were registered, 0.5% of total exports volume. This year only two

cases of disapproval were registered, he said. “In this case aflatoxin exceeds the norm in a very small volume. Under the EU legislation, 5 micrograms are admitted in 1 kilogram of Hazelnut, while in the USA this norm is twice higher. This year the disapproved cargo was examined anew, however, some of them were not found with excessive norm of aflatoxin. In this case our entrepreneurs have the right for two operations. 1) First – distilling oil from very polluted Hazelnut, in case of comparatively small volume; 2) mixing healthy Hazelnut after which aflatoxin parameters will satisfy standards», Kalandadze said. How competitive is Georgian Hazelnut on exports markets? Are all international standards protected in Georgia? Kalandadze said that a lot of job should be performed in this respect. There are companies on the market with modern drying systems and their products are competitive on international markets. Several components are required to receive high-quality products, including timely trimming, spraying, picking, drying, storing of Hazelnut, Kalandadze noted. «The full chain should be controlled and the Ministry will do it. Georgian Hazelnut would not enter European market if it did not satisfy European standards», Kalandadze noted. Farmers have introduced internal control

mechanisms, because they know their products cannot satisfy standards and they will bear losses, he noted. Hazelnut exporters categorically reject spread information as if Georgian Hazelnut has been banned on European market. Georgian Hazelnut is a perceptible brand in Europe, the farmers noted. Iveri Kvaratskhelia, head of Nakifu 2014 Hazelnut manufacturing cooperative, explains that aflatoxin level in Hazelnut grows in case of invaluable drying and spoilage process. If a farmer stores product due to standards, the mentioned substance cannot exceed the verge, he noted. «We dry the product in natural way and this depends on weather conditions. In rainy weather the spoilage threat grows. We need special drying facilities», Kvaratskhelia noted. National Food Agency permanently examines Hazelnut before exports. Hazelnut technical regulations were enacted a month ago and these regulations are to improve Hazelnut quality, he said. «Our revenues directly depend on quality», Kvaratskhelia said. In response to the question whether Georgian Hazelnut satisfies international standards and is competitive in relation to imported products, Kvaratskhelia noted that there are certain problems.

7 The process is improved. Nobody cared for quality previously, while now farmers have to ensure high quality. Today market demands for high-quality products, Kvaratskhelia said. The sector had problems in terms of education. Thanks to government’s involvement, this problem is being solved stage by stage, he added. It will be wonderful if the country arranges drying systems to store Hazelnut in civilized forms. Farmers need due volume of investments, he said. Currently, the company does not export Hazelnut and sells product on domestic market. The cooperative owns 47 hectares of Hazelnut plantations. Jener Belkania, director of Agro-Expo Georgia company, noted that information about disapproved Georgian Hazelnut in Europe is misinformation. The company started Hazelnut exports to Europe 20 years ago. “I was angry to have heard this misinformation, because Georgian Hazelnut is a brand. Trust my experience. We have been exporting Georgian Hazelnut to Europe for several years. Aflatoxin may be genuinely detected in the product, but in small volumes, because the state provides strict control over the issue”, he noted. Mamuka Beriashvili, member of board of association of Hazelnut processing and exports companies and founder of NUT.GE company, noted that aflatoxin level is in norm in Georgian Hazelnut. This is a very negative PR and these statements are made by ignorant and incompetent people. Sometimes, this substance exceeds norm 10 and 20 times in Azerbaijani and Turkish Hazelnut, but this factor has never created problem, he said. “All countries have set their own admissible norm. Aflatoxin group in Europe is determined by 10 micrograms in 1 kilogram. Previously, this indicator was 1 or 2. In Europe 5 and 10 micrograms in 1 kilogram of Hazelnut is not considered as health hazard. Similar threats may arise if a person eats more than 10 kilogram Hazelnut diseased with aflatoxin”, Beriashvili said. Today Georgian Hazelnut is a brand and competes with Turkish, Azerbaijani and Spanish Hazelnut. Today price of Georgian Hazelnut is higher, as compared to Turkish and Azerbaijani Hazelnut, he added. «When Europeans buy Georgian Hazelnut, they are not afraid of aflatoxin. Europeans often say that they prefer Georgian Hazelnut», Beriashvili said. The company exports Hazelnut to a lot of countries, including European, Asian and African countries. Neodi Otkhozoria, head of TAIA 2014 cooperative, noted that the company owns 20 hectare Hazelnut plantations in Chkhorotsku District for many years and the company processes Hazelnut. Because of small volumes and finances, the company cannot export products, while Georgian Hazelnut fully satisfies European standards and its is competitive product, he noted. Hazelnut must be stored due to standards to maintain Aflatoxin in due norms. I mean drying systems that many farmers do not have, Otkhozoria noted. ‘When we pick Hazelnut, we dry it and sell it to buyers. We do not have drying systems, because they require serious finances», Otkhozoria said. Irakli Chikava, commercial director of Agro Solutions agro consulting company, noted that various substances may be defected in any product, but this fact does not result in any restrictions for a country. Detection of similar diseases in products are bad, but this is not alarming and this does not signify Georgian Hazelnut will never go to exports markets, Chikava said. Georgian farmers should realize that this disease should be prevented thanks to permanent control. «This is additional challenge for Georgian farmers and valuable control will bring everything in order», Chiakava said. Today, education is a key challeng in the sector. Even financial resources are useless without due knowledge, he said. According to Geostat, national statistics service of Georgia, Hazelnut is one of the leading exports items in Georgia. In 2016 the product was recorded in top five exports items.


PR Person

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July 24, 2017 #202

Television Remains Leading Media Despite Attachment to Social Networks

Interview with Tinatin Stambolishvili, head of marketing communication department of GPI Holding insurance company. - Which media outlets do you follow every day? - My profession dictates me to follow all leading media practically 24/7. Moreover I also use media monitoring software to see if I have missed something. I have been accustomed to this practice and sometimes I feel discomfort if I do not hear information or I do not read. I have TV sets in all rooms at home, including kitchen – I watch almost all news programs and talk shows of all channels. Moreover, I also work at Facebook, as I can collect interesting information from this social network. Naturally, social network tendencies are very important. Nevertheless, television still dominate. Despite our attachment to social networks or Internet media, television is a leading mediain Georgia for the time being. I think Public Relations is a profession about staying aware of ongoing developments around you, despite the sphere you work in, what the society makes focus on, what people talk about. You have to follow all the news including politics and especially politics, world trends, etc. Public moods change every day and you should be aware of everything, what goes viral, what does not. This allows you as a PR specialist to feel the media situation and plan accordingly. - Talk about the difference between PR and advertising. - I would advise a very interesting book on this issue – The Rise of PR and Fall of Advertising. This is the popular text about how persuasion theories have changed in the 21st century and what factors generate personal confidence, how and what inspires people. Naturally, I do not assert that advertising is useless and inefficient – on the contrary, it is unimaginable to ensure steady large-scale public relation campaign without advertising and other marketing means. Basic difference between these two disciplines – public relations follow long-term tasks and this task is to create reputation, establish relations with various interest groups, while main task of advertisement is to deliver message to large audience in a short period and attain short-term tasks. Another key difference consists in choosing the target segment – while in adverstisement you choose the target segment, depending on the product and your objectives at that particular time, in public relations target segments exist on its own way – we call it interest groups, or stakeholders and you have to identify them and nurture relationship with them. If you do not need them in this specific moment, you will need them necessarily in some moment and therefore, you should keep relationship with them. I would compare this t family and friends – you choose friends yourself, but you cannot choose family members and you have to communicate with them in any case. In adverstisment you choose the target segment and in Public relations you cannot choose – you are forced if you want to build relationships. The third most distinct difference is the media usage: in advertising you control the whole situation, because you pay money and buy media space yourself

When we talk about reputation, I imply this aspect – you become Thought Leader when you do not follow only narrow commercial interests and take efforts to cover wider themes, talk based on values, cover public interests, are bold and unbiased.

(including time on television or internet placement), while the key objective of public relations campaign is to draw attention of media and placement is not in your hands – this is in the hands of journalists or editors. This means you should generate reasons to raise the media interest, involve third parties, opinion leaders. Therefore, organization of public relations campaign implies an articulation of themes interesting for society (for your interest group). In creating the reputation, I also mean a wide communication of those values in the society that are created by your organization. Besides organization, this may be a person, naturally in case of political campaign or a musician, public leader and so on. - Name your best project or period you take pride in. - I would name a recent campaign: GPI Holding’s job fair campaign (it was held for the second time in 2017). As part of GPI JOB FAIR we have employed 500 persons without qualification and experience requirements and age restriction. In 2015 we held the first campaign and key challenge consisted in positioning of sales manager as a profession, because sales were not perceived as a profession and it was mainly related to vain and inefficient walking door to door. Second – overcoming nihilism in the people you were seeking employement. The people that we searched as candidates lacked trust that somebody could offer them a job without any connections or previous experience. With the campaign we had to create this trust and encourage these people to respond with persuasive messages and trustful third parties. In classical understanding, this was one of the first campaigns of thos scale in Georgia in terms of employer branding. The campaign brought success and number of people who responded to the job opening was twice as much as we planned. Slogan of the first campaign was - 200 Job Places. As a result, we employed 220 persons. Next year – number of job seekers even doubled and we employed 365 persons on this position. During the campaign we had more than 100 media placements and we spent about 15 hours in TV and radio. Media found the topic interesting, naturally, because employment is one o the most relevant in Georgia, after the issue of territorial integrity. One of the prerequisites of the success of the campaign was the synergy with our HR department. When we talk about the profession of public relations, HR is your best friend in an organization, because employees are your first interest group, because the company reputation first of all depends on these people. Besides professional aspects and the results of the pr campaign, we are proud, because we gave hundreds of people an opportunity to learn, grow and build a carrier and be part of our group. - How do you integrate social media with PR? - Social media and PR do not need integration, because social media is a mechanism to establish relations with individuals without «mediators» and naturally this is

one of the most important channels for us today. At the same time, we should avoid overdose, because what happens in Facebook does not always signify that all the society thinks the same and frequently Facebook tendencies leads us to erroneous decisions. Sometimes we think if one or two persons say something, this is a public opinion. But this is incorrect in most cases. - How would you describe the Thought Leadership? - There are various interpretations for Thought leadership. This term denotes a person or organization that is perceived as an authority in this or that field, when their opinions are followed, shared and accepted. When we talk about reputation, I imply this aspect – you become Thought Leader when you do not follow only narrow commercial interests and take efforts to cover wider themes, talk based on values, cover public interests, are bold and unbiased. This is long-term approach. The society is very sensitive when seeing narrow marketing interests only and respond poorly to such communication. On the other hand, public relations makes focus on assembling thought leaders and engage them in various campaigns and become themselves (as an organization) thought leaders, who are recalled first of all when discussing your sphere or industry. - Talk about your experience in negative media attack that you have overcome. - There were a lot of similar cases – nowadays this seems to be inseparable part of our profession. My main suggestion is not to fall in depression, because you are not alone. All PR professionals deal with negative word of mouth every day – sometimes fair and sometimes unfair. If only two out of ten ones spread positive word of mouth, eight out of ten spread negative word of mouth. This means that people who want to comment in your Facebook page are predominantly unpleased or even angry with your company or product. This is natural, people want to epack up and want to hear their voice. The situation may be improved only through dialogue. It may be said that negative comments are useful too, because they outline shortcomings in your organization and we pay serious attention to claims of any consumer, if these claims concern our services. - Describe a time you trained or mentored a colleague. What personal features are required in similar situations? - As I noted above, employees are key target group for public relation professionals – because these people are your key channel to introduce organization values to the society for what and who you exist, what value you create in general. Thus, if you want we can name it mentoring and training, this is your everyday job to plan and implement communication within organization, establish relations with people at all levels so as they get information from first hand so as they feel well and understand everything very well.


interview

July 24, 2017 #202

“The established travel publisher from Germany has offered me to take over the travel guide Georgia in the future as an author”

“This ancient cultural landscape of Georgia is particularly impressive for me. A small nation with an extraordinary language survived all the historical upheavals in their history. Through their archetypal selfassertiveness, they shape their surroundings. For me, Georgia is a polyphonic country in many cases.”

ninna gomarteli

Ralph Hälbig manages a blog about Georgia and South Caucasus. Blog is available in German and shares politics, economics and art narrative in the region. Visitors are increasing day by day, while he’s planning to commit himself more and write a travel guide about Georgia. CBW had an interview with Ralph about his inspirations, experience and opinion towards region. Tell us what you’re looking for in Georgia? The first time I was in Georgia in the late 1990s. This was a particularly interesting experience for me. There were hardly any tourists. Every day I experienced electricity outages. Tbilisi was gray, dark and yet it had a magical appeal to me. I was impressed, despite the adversities of everyday life, how spirited people were. Again and again I experienced her humor. Grandiose is the hospitality and life philosophy of the Georgians. Georgia seemed to me a truly poetic landscape. Georgia is always a surprise – anything but a boring country. What inspired you most? This ancient cultural landscape of Georgia is particularly impressive for me. A small nation with an extraordinary language survived all the historical upheavals in their history. Through their archetypal self-assertiveness, they shape their surroundings. For me, Georgia is a polyphonic country in many cases.

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German Blog About Georgia by Ralph Hälbig Reaches More Than 3 Million Viewers How is the idea to create a blog born? What was your first post about? I was so enthusiastic about Georgia that I kept coming back. Of course, I also read a lot about Georgia. I searched the Internet and the media for “Georgia”. A good friend, whom I met in Georgia, I then always sent all the research. Then he gave me the tip to start a blog to Georgia. In 2005 I wrote a small article about the Georgian State Dance Company Sukhishvili for an online magazine. This was then also my first contribution in my blog. In the following years established the blog for re-posts on the topic South Caucasus. How did you reach people in the beginning as it has 3,027,918 views nowadays?

At first, the popularity of the blog grew slowly and gradually. You need time and a long breath. Interesting was then for me Facebook. In Facebook, I tried to address the Diaspora of the Georgians. That is why I have many FB friends and followers from Georgia. Through Facebook and Twitter, I became more and more interested in the whole world. And of course I have quite a few friends in and from Georgia. Who are the visitors of blog? Are you from Germany or any other person? Most visitors come from Europe and North America and also from Georgia. Of course also many readers are from Germany. The re-posts to Georgia and South Cauca-

sus are bilingual – German and English. Meanwhile, I also reach many experts and other journalists through my Twitter account https:// twitter.com/SouthCaucasus. On Twitter I have daily up to 5,000 visitors and on my blog 1500 to 2000 daily. Where do you get the source of information from? The information I refer on the one hand from my searches. Then I know of course the relevant media. Twitter and Facebook are very good intermediaries. And finally, many Georgians and Germans send me informations and links. Over the years I have always received very good feedback. For years almost daily I have been doing a lot for this blog. This blog is a lot of work.

We’ve heard about your plan to write a travel guide about Georgia,do you cooperate with someone? Because of my commitment, I now have a certain reputation. The established travel publisher (travel know-how) from Germany has offered me to take over the travel guide Georgia in the future as an author. I think my friends and networks in Georgia will help me to bring a high-quality travel guide to the book market. I would be grateful and grateful for cooperation in Georgia. Maybe I find support in Georgia. Who knows what is the result? I would, of course, love to get more involved in Georgia. After all, I am now also familybound to Georgia. What is your opinion about how Georgia is developing, what changes do you see? Georgia has changed a lot. Globalization and West orientation have left their footsteps. A lot has happened since the nineties. The orientation towards Europe is visible. There is a free Visa. It is being built a lot and more and more tourists are pouring into the country. I very much hope that Georgia will deal responsibly with its rapid changes and will continue to do so in the long term so that the beauty of its country and its people is not sacrificed to the quick money. Then I also wish that above all the poor in the Georgian society can participate in the development.


business

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July 24, 2017 #202

23 Years Old Startup European Standard Honey Winnie 23 years old Besik Ekseulidze, Political Sciences Student runs startups and organizations like: Upwork, CDI and mitargmne. Honey Winnie is his new startup, which produces European standard honey, following all sanitary rules. Its first goal is to produce Georgian natural honey and honeycomb, then move forward to export Winnie products. Marketer had an interview with Besik.: How did you come up with an idea to launch honey enterprise? I had this idea since 2010, when I was a student and I have written a lot of work on the development of beekeeping in Georgia. I just got an opportunity to make my idea come true by support of ”the Entrepreneurial Skills,Employment and Income Generation Support Project in Georgia” (Yes Georgia). Unfortunately, there are cases when honey is made by sugar, and the bees are served by preparations that are often dominated in the product during honey testing. If a bee produces honeycomb itself, it’s going to take the same amount of time like to produce one kilogram honey. That’s why honeycomb is prepared by a beekeeper which is mostly made by paraffin, con”.

Co.Mode Trendiest Georgian Clothing Brand Opens Batumi Branch Georgia’s trendiest clothing brand, Co.Mode has opened its second shop in Georgia’s seaside town Batumi. The first shop which is located in the center of Tbilisi, is one of the most popular Georgian concept store, uniting more than 50 local designers. Brand offers the variety of clothes and accessories that fulfills the women requirements in finding the desirable products. CO.MODE is the outstanding store for its exclusiveness, creativity and affordable prices.

BiuBiu Takes over 50% of Chicken Meat Market in 3 Years BiuBiu company has occupied 50% ratio on the chicken meat market in 3 years, Chirina company head Revaz Vashakidze told Business Course. The company produces chicken products under BiuBiu brand. Over the past period, ratio of domestic products have considerably increased in poultry segment, chicken meat, not chicken minced meat. Today, domestic production controls 80% of chicken meat market, the businessman said. “3 years ago imports from Brazil constituted 350 tons, Ukraine – 300 tons, Europe – 80 tons, Turkey – 250 tons. Today, chicken meat has not been imported from Brazil over the past 3 months. Imports from Ukraine has dropped to 40 tons, Europe- 20 tons. At the same time, imports from Turkey rose to 350 tons, from where low-quality products are imported”, the company director said.

Armani, Calvin Klein, IKKS and Roman in Galeria Tbilisi Multifunctional Shopping Center ”Galeria Tbilisi” will be opened in Autumn, on Rustaveli Avenue. Where many affordable and unique brands will be available. It will be the first time in Georgia for the brands like: Armani Exchange, Calvin Klein Jeans, IKKS womenswear and menswear and Roman. Lacoste, Guess, United colors of Benetton, Trussardi and Stenders will be back with a new concept. In addition, there will be H&M first store in Caucasus Region. Total area of Shopping center covers 55 000 sq.m. Supermarket, bank, pharmacy, laundry, beauty salon, mobile service center and repair center will be placed on -1st floor. first four floors will cover affordable, as well as high-class brands of clothes, shoes and accessories; Household appliances and sport accessoires. Various restaurants, cafés and fast food objects will be gathered in the food zone.It will be available to leave the children in Children’s Entertainment Center next to the food zone.

GYMer Fitness Application to Reduce Risk of Trauma Bodybuilding and Fitness application GYMer provides us with visual information how to develop our muscles safely. The application is created by Giorgi Lekveishvili, Sandro Khardzeishvili and Levan Moseshvili. They started recording fitness videos from February 2017 and as a result there are 350 guidance available. Marketer had an interview with one of the founder- Giorgi Lekveishvili. What was the motive to create GYMer? I am a co-founder of ”Mobile Development”company (MPDC), I started to work out few months ago and as a customer I was facing lack of information, I nearly got a trauma while exercising in a wrong way. Then I met Sandro, an athlete and we came up with an idea to create an application in the direction of fitness and bodybuilding, develop global level project. I must note, Snap Fitness Georgia let us film videos in the hall. How exactly does it help a customer? First you look up the specific

muscle you want to develop. Let’s say biceps or chest muscles. Each exercise includes 3 videos: 1.How to perform an exercise correctly; 2.What’s the wrong way to perform, which movement we should avoid; 3.Graphic effect let us see which parts are working. We also offer premium content where you can access a few-day program by an athlete. What is an advantage of GYMer comparing to other similar applications? There was no similar application on the market which would be both for professional and amateur. We reduce the risk of trauma or wrong muscle development by showing them not only right but wrong way too. We have statistics of global market, the list of countries where this field is popular lie the U.S, the U.K and Canada,which will be our first target to spread the word about our product. As for marketing strategy, we reach bodybuilding and gym blogs or websites to promote information about us. We will use social network advertising too.

Georgian School Novator to Teach Teenagers Programming and Robotics Novator is a School of Computer Science, where studying process is joyful and lets 11-15 years old students enjoy with new technologies. Startup is founded by 2 friends, using Massachusetts Technical University program adapted to Georgian reality. The main value of school is to create comfortable environment, get them involved in computer science and let develop themselves logical and creative mind. Marketer had an interview with Mikheil Phailodze, Founder of Novator. What is Novator aiming at? This is a School of Computer Science. Company is founded by two programmers, who has more than 10 years experience in this field. We came up with the idea when we faced an issue- we needed developers to occupy but it was hard to find a professional. We decided to solve the problem by opening a school. The school is oriented to 11-15 years old teenagers. As a result of research we selected an optimal program developed by Massachusetts Technical University for teenagers development.

We adapted this program to Georgian reality, gathered team which happened to be quite successful. We noticed that it was easier for younger people to master and get familiar with new technologies. In order to make studying process fun, we have robots which we build and program together. two robots are already built, Bart and Lisa. What knowledge do kids get? Besides the fact that Computer Science is a demandable and popular field, it’s the best way to maintain logical mind. The skills that students get at our school, gives them advantage to be novators in any field. Course includes programming foundation, robotic foundations and generally robotechnick. Also, they learn networks, electronic engineering, network engineering and graphics. What is your price policy? Course duration is 1 year, twice a week, 1 and a half hour lessons. Price for a month is 99 GEL. We have a summer camp in Bakuriani where two teams will be created to work on two big robots during 10 days.


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July 24, 2017 #202

Treepex to Offer Innovative Technology Service To the Global World

Borjomi national park is one of the largest park in Europe, which has top grade ecological significance. In August 2008 wildfire hits Borjomi forest and 250 ha has been completely burnt. CBW had an interview CEO and Co-founder of Treepex, Bacho Khachidze who shares experience about the project which restored 34 436 trees and combating the progressing ecological disaster. Locals,large companies and individuals are continuously contributing to tree planting which has a healthy affection to ecological system,as well as society’s attitude towards environment. He shares the bigger plans with us: Who is organising the campaign ‘’Aghadgine’’ ? The Campaign ‘’Aghadgine’’ is planned and executed by startup Treepex, Business Information Agencyl BIA and National Forestry Agency.We have equally distributed liabilities;BIA provides the involvement of business sector, Startup Treepex technological solution and innovative solutions, To allow the user to plant trees through the easy-to-use online platform with just a few clicks,While the forest agency is preparing a forest restoration plan for the campaign. As we know, international experts do monitoring, how did the evaluate given situation? We convened international expert Dieter Müller from Germany for monitoring and recommendations. This year’s spring plantings showed incredibly high survival rate of seedlings,due to the high quality seedling, properly conducted planting works and most importantly the natural environment. Do you plant the same species of trees which

got destroyed or you add different variety? The species were selected by the experts of the National Forestry Agency and we therefore follow the plan of recovery. The following trees are planted: mainly Caucasian pine, high mountain oak, high mountain maple and meadow maple. How do you deal with erosion areas? Planting trees is one of the most sufficient tools to combat erosion. Cleaning and preparation is underway before planting activities, which usually means arranging platforms.There are some erosion areas where forest expert suggest that such places should be restored naturally. While,more than 200 hectares of forest requires human intevention,otherwise forest won’t restore the initial state and conditions will get worse. What’s the feedback from local community, how actively involved are they? We proud of the fact that we fully manage local inhabitants to be involved. 42 people got employed in planting and follow-up maintenance activities. They know that this is not short term action,they understand the meaning and importance of taking care of the seedlings during 5 years,which also will mobilize additional incomes. How many companies are engaged in this process and how the number is increasing? At this stage up to 200 companies are involved and this number is constantly growing. ‘Aghadgine’ provides a unique opportunity for companies to express their social responsibility. Tell us about the success achieved in Barcelona. ‘’The Global Mobile Challenge’’ was quite successful for startup Treepex. We made sure that there are no boundaries in startup world. It doesn’t matter what you represent developed,developing or neverland. The only important factor is how your product works and how the problem is solved by using that.We got in grand final,in top 5 among 4500 other startups created in 2016. We defeated startups from Silicon Valley (USA),Spain,the Netherland and other countries from better developed startup ecosystems. How big was the interest of foreign media? We attracted local, as well as international press

attention from the very beginning. We were aired in Washington’s television block ‘’Global Business America’’.I’d say media is ready to support innovative startups. Then we had active development stage during what Treepex did not appear in media. We plan presenting new product to the global market,accordingly we’ll get active. Do you hold press conferences in the framework of the project? ‘’Aghadgine’’ Campaign characterized by great media activity. Of course there are press conferences and various activities in the Internet space. Which technology do you use to manage the online system? Treepex is a technology driven startup and we have complex solutions. We created flexible API, which is integrated with electronic payment services, online platform is very convenient, which performs tree planting with just few clicks. We are launching an innovative tracking system for rangers, which digitizes each tree, meaning taking picture, geographical location description and placement on Treepex map.

Do you think similar activities has an affection on society’s attitude towards environment? I believe that we change society’s knowledge, attitude and action towards environment besides planting a tree. For many years the value of wood was defined as firewood or timber as furniture manufacturing material. Tree has become a symbol of love,future and responsibilty in the framework of project ‘’Aghadgine’’ as statistically users plant trees on behalf their beloved or their children, while business shows the responsibility towards country. What are the planned activities, do you intend to implement the same project on other sites? Our team is moving to New York City from September.We aim to offer the innovative and technology service to the global world. Planting trees will be carried out in Africa and Amazon Forest where the Earth has the biggest issue and needs to be saved. ninna gomarteli


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July 24, 2017 #202

Brand History Tskali Margebeli – Nabeghlavi History of Tskali Margebeli is interconnected with multi-year history of Nabeghlavi mineral water. Nabeghlavi mineral water source is located on the territory of Nabeghlavi resort, in the river Gubazeuli Gorge. Nabeghlavi spring was discovered in 1905. According to legend, in untouched nature zones of Guria Region, local residents discovered one spring. Oxen often drank the water there. This spring was found with special taste and special healing characteristics. Nabeghlvi mineral water was examined in the first half of the 20th century by Georgian and foreign experts. Initially, chemical structure of the water was explored by Latvian researcher in Georgia Robert Luptsis in 1921. In 1930s hydro-geological research works were conducted on water source under guidance of distinguished Georgian and other scientists. Nabeghlavi water bottling started in 1958. A new phase in the history of Nabeghlavi mineral water started in 1997, when Tskali Margebeli took over the production. The company did not confine only by production of mineral water and in 2002 it started bottling Bakhmaro water too. In 2017 Tskali Margebeli started cooperation with Rauch company, one of the ma-

jor manufacturers of juices and soft drinks in Europe. On June 24, 2017 a multi-profile strong drinks plant opened. At this plant Tskali Margebeli bottles Nabeghlavi mineral water and Bakhmaro spring water, as well as Rauch juices, cold tea, lemonade and other

soft drinks. Cooperation between Rauch and Tskali Margebeli will make significant contribution to exports growth and economic development in Georgia. The brand’s success was achieved thanks to devotion to business, professional staff and international standards. The new plant is an evident sample of modern industry. It fully satisfies world standards and represents the region’s major enterprises, they said. A building with total space of 20 000 square meters and a bridge on the river Gubazeuli were built. Outdoor infrastruc-

ture was arranged on 3 hectares. Seven production lines were installed. Technological planning and equipping were fully ensured by the world’s distinguished companies Krones and Tetra Pak. Renewable energy systems are applied for heating and cooling of the pant. The company plans to develop key exports directions, such as: CIS countries, the USA, Baltic countries, EU countries, Turkey. The company plans to enter new markets in Asia. Currently, Nabeghlavi carries out exports in 20 countries.


July 24, 2017 #202

world

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Azerbaijan, Turkey intend to bring mutual trade volume up to $15B

Siemens retreats from Russian energy after Crimean scandal Germany’s Siemens (SIEGn.DE) tried to distance itself from a Crimean sanctions scandal on Friday, halting deliveries of power equipment to Russian state-controlled customers and reviewing supply deals. The industrial group said it now had credible evidence that all four gas turbines it delivered a year ago for a project in southern Russia had been illegally moved to Crimea, confirming a series of Reuters reports over the past weeks. The move is embarrassing for Russia which stands accused of disregarding EU sanctions and of flouting its original agreement with Siemens and it risks making European companies more cautious about doing business there. The Kremlin declined to comment, saying it was a matter for the companies involved. Siemens said it had not yet found proof that it had violated sanctions itself, reiterating that the turbines had been locally modified and unlawfully moved to Crimea against its will and in breach of contractual agreements. Crimea is subject to EU sanctions on energy equipment since Russia annexed the Black Sea peninsula in 2014. Russian President Vladimir Putin has promised to provide the region with a stable energy supply. “This development constitutes a blatant breach of Siemens’ delivery contracts, trust and EU regulations,” Siemens said. Siemens said it would “take immediate and decisive action” if it discovered further indications that export control regulations had been violated.

Armenia saves €9 million thanks to export customs exemption implied by GSP+ regime Armenia saved €9 million in 2016 as it exported commodities to EU countries without customs procedures as part of GSP+ regime, Makar Arakelyan, chairman of the Union of Freight Carriers of Armenia, told reporters on Monday. He said only eight countries enjoy such an advantage, and Armenia should use it actively. Arakelyan also said that the new system REX (Registered Exporter System) for exporter companies will be available to Armenia from January 2018. «The companies which will register in the business system beforehand, will be allowed to bring to EU countries a batch of goods worth €6,000 without submitting additional papers and origin certificate and without customs procedures,» he said. In his words, this will allow Armenian exporters to increase their exports to EU countries reducing along with that their own expenses. According to the National Statistical Service, Armenia’s trade turnover with the European Union amounted to $396.4 million in Jan-Apr 2017 (23.5% share and 11.6% growth). In 2016, it amounted to around $1 218.7 million (24% share and 2.1% growth), in 2015, $1 220.6 million (25.7% share and 23.7% decline) and in 2014, $1 574 million (26.6% share and 4.8% decline).

Azerbaijan and Turkey intend to bring the mutual trade volume up to $15 billion by 2023, Turkish Deputy Prime Minister Nurettin Canikli said in an exclusive interview with Trend. “We intend to raise economic and trade relations with Azerbaijan to an even higher level,” he said. “For this purpose, Turkey has begun working over signing an agreement on preferential trade with Azerbaijan. The text of the agreement is planned to be prepared in 2017.” “Despite there is a decrease in trade turnover between the two countries now, there is a great potential for increasing it,” he said. “The agreement on economic cooperation, the agreement on eliminating double taxation and the agreement on mutual protection of investments signed between the countries facilitate to it.” Canikli said that the trade turnover between Turkey and Azerbaijan amounted to around $1.6 billion in 2016, while it was $5.1 billion in 2014.

“The trade turnover between Turkey and Azerbaijan increased by 11.4 percent in January-May 2017 compared to the same period of 2016,” he said, adding that it testifies to the economic potential of the two countries.” “I am confident that on the basis of the existing potential of the two countries, we will be able to increase the volume of export-import operations in the coming years,” Canikli said. “Our goal is to increase the trade turnover volume between our countries up to $15 billion by 2023.”He said that Azerbaijan is also one of the countries where Turkish contracting companies are actively working. “Until now, Turkish contractors have implemented the projects worth $11.6 billion in Azerbaijan,” he said.Moreover, Turkey is working over a plan to increase trade relations with Azerbaijan’s Nakhchivan Autonomous Republic. “As part of expanding trade with Nakhchivan, the delegation of the Turkish Economy Ministry visited Azerbaijan in June 2017,” Canikli said.

The world’s largest power plant is a $27 billion ‘engineering wonder’

The World’s Winemakers to Compete for a Gold “Azarpesha” What is an azarpesha? In Georgia, that’s how they used to call the elegant wine vessels with long hand, made of silver or gold. These richly decorated objects are now rare antique collectibles. Now, a miniature gold azarpesha is chosen as the top award of Saperavi World Prize, the first wine contest of Saperavi wines produced in all continents. Saperavi, the “signature” Georgian grape variety, is becoming increasingly popular with winemakers around the world. Saperavi wines are produced in USA, Europe, former Soviet republics, and even New Zealand, but it is Australia where this Georgian variety has become especially widespread. For the first time the Saperavi wines produced in all these countries will be judged in Georgia, by an international jury involving top experts in Saperavi winemaking. Saperavi World Prize is conceived to become not only a wine contest of Saperavi wines produced abroad, but “a meeting point of international winemakers and Georgian tradition-keepers, backed by eight millennia-old winemaking history of Georgia – the cradle of wine”, according to the contest’s organizers. Information can be found at http://sapprize.hvino.com. The contest, which will become annual, is initiated and organized by wine news publisher Hvino News with official support of National Wine Agency. Hvino News is the world’s primary news and

information resource on Georgian wine, published daily since 2012, in English and Russian languages, with traffic over one million views and readers in 160 countries “It was not easy task to identify all the world’s wineries which produce Saperavi, and it required a lot of research, – explained Inge Olsson of Hvino News. – But, once we contacted them, we were happy to see the enthusiasm of winemakers excited about our initiative. One of the winemakers has shortened “Saperavi World Prize” to “SapPrize” and we decided to keep the catchy name”. While the list of participants is almost complete, the entry is still open for wineries from outside Georgia, who produce Saperavi. Participation in the contest is free for winemakers thanks to support of corporate sponsors – Georgian and international companies interested in raising awareness of their brands on international level. “It seems our project came at right moment, as it was welcomed by everybody: not only winemakers, but also the sponsors, and the mass medias”, – Inge Olsson noted. “For example, France-Presse – one of world’s leading news agencies – called SapPrize “an excellent initiative”. That’s very important for us, as the attention of leading world press helps to reach the main goal – make Georgia and its culture become better known and more popular in the world”.

Located on the border of Brazil and Paraguay, the Itaipú Dam produced 103.09 million megawatt-hours (MWh) of electricity in 2016 — making the hydroelectric system the world’s largest power plant. Ten years after its completion in 1984, the American Society of Civil Engineers named it “one of the seven engineering wonders of the modern world.” Building the $27 billion Itaipú Dam required 18 years and 40,000 workers, according to PBS. Construction began in 1975, when workers carved a 1.3-mile-long, 300-foot-deep, 490-foot-wide diversion channel to re-route the Paraná River to make way for the dam. In the process, they moved 50 million tons of rock and earth and used about 12.3 million m³ of concrete (roughly enough to build 210 football stadiums). The structure also features approximately 380 times the amount of steel and iron as the Eiffel Tower. Because of construction, approximately 10,000 families living beside the Paraná River were displaced in the early 1980s. The concept behind the power plant started with negotiations between the Brazilian and Paraguayan Ministers of Foreign Affairs, Juracy Magalhães and Raúl Sapena Pastor, in the early 1960s. In 1966, the two countries signed a treaty that said they would explore hydropower resources in a shared section of the Paraná River (located on the border). The negotiations inspired the construction of the Itaipú Dam, which gives power to both Brazil and Paraguay. Today, the system provides about 16% of Brazil’s energy supply and 76% of Paraguay’s. The system is a gravity dam, meaning it relies on its own weight to resist the pressure of water that flows through it.


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July 24, 2017 #202

September 18 Schauspiel Dortmund, Germany About Performance:

International Program Samuel Beckett

Endgame Directed by Kay Voges

Venue: Royal District Theatre Duration: 80 minutes, without intermission Tickets: Parterre – 30 GEL; Balcony – 20 GEL; Beginning: 20:00

„Endgame“ (1957) is a famous play by Samuel Beckett about the main characters Hamm and Clov (or master and servant). From eternity to eternity they ask themselves why they have to stick together although they are trying to get rid of each other. In an eternal dependence they have to conclude: „We try again, we fail again, we fail better“. The performance in the direction of Kay Voges (who is the artistic director from Schauspiel Dortmund) is a very physical interpretation of the play by using loops and a special arrangement of different sounds which „bore into“ the spectators bodies.


July 24, 2017 #202

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

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

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,

15 SH. RUSTAVELI STATE THEATRE Tbilisi. 17 Rustaveli Ave. Tel: 93 65 83, Fax: 99 63 73 TBILISI STATE MARIONETTE THEATRE Tbilisi. 26 Shavteli St. Tel: 98 65 89, Fax: 98 65 89 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

Limelight Travel info Center 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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July 24, 2017 #202

Caucasus Business Week #202  

Caucasus Business Week #202

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