Issue #1298

Issue no: 1298

• MAY 28 - JUNE 3, 2021 • PUBLISHED WEEKLY

FOCUS ON BORJOMI

The workers' strike ends with most demands met

PAGE 9

PRICE: GEL 2.50

In this week’s issue...

Corona Updates: COVID Cases in Georgia Continue to Decrease NEWS PAGE 2

Lukashenko ‘The AviaPirate’ – Steadying The Sinking Ship?

POLITICS PAGE 4

Georgia and Its Transit Potential BUSINESS PAGE 5

ISET GDP Forecast | Tourism Decline Main Driver of 2020 Negative Growth. Will it Drive the Recovery in 2021?

ISET PAGE 6

Terabank is the Winner of Meliora for Responsible Business in Georgia BUSINESS PAGE 8

French Winemaker Loic Pasquet to Produce Georgian Wine for the EU Luxury Market EXCLUSIVE INTERVIEW BY GEORGE SHARASHIDZE

Events Focused on Empowering Women and Girls held in Zugdidi Municipality SOCIETY PAGE 10

Meet the Artist: Painter and Illustrator Nino Chakvetadze CULTURE PAGE 11

L

oic Pasquet, a legendary winemaker who sells his wines for €30,000, was recognized as the best winemaker in France in 2011 and is the owner of the Liber Pater brand.

“I am proud to name him among my friends!” Gocha Chkhaidze, Askaneli founder, wrote on Facebook. “And we are starting a joint project in Georgia! Expect intellectual wines from us. Askaneli already has them, but I'm thinking about other wines that no-one else has produced so far. Surprise!”

When Chkhaidze hosted the French wine celebrity Loic Pasquet in Georgia this month, GEORGIA TODAY took the opportunity to meet him in person.

“Georgia is getting slapped on the art of receiving! No castles, no hostesses, no parking, no fireworks, but an art of living, culture and a love of wine sweating everywhere. Unforgettable. Thank you for these unique moments,” Pasquet said, having managed to visit both east and west Georgia in early May in an aim to learn more about the winemaking culture in the “cradle of wine”– Georgia.

Continued on page 7

CULTURE PAGE 11 Prepared for Georgia Today Business by

Markets As of 24ͲMayͲ2021

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GRAIL 07/22

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+0,0%

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GEBGG 07/23

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+0,1%

+0,0%

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GBP 6.35

+0,8%

+12,4%

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GBP 11.08

+3,0%

+4,5%

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101.37 (YTM 5.59%)

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109.48 (YTM 7.25%)

+0,1%

+0,3%

TBC 06/24

107.75 (YTM 3.08%)

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+0,8%

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105.87 (YTM 6.13%)

+0,1%

+1,0%

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GBP 12.60 +14,5%

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3,3085

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4,0400

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3,6910

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1 881,02

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13 661,17

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0,8972

181,07

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73,4815

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1 326,68

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8,3876

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SP 500

4 197,05

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1,6989

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2 494,11

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520,6000

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2

NEWS

GEORGIA TODAY

MAY 28 - JUNE 3, 2021

The Namakhvani HPP: Gov’t and ENKA Ready for Constructive Talks with Protesters

Our main demand is for ENKA to leave the Rioni Gorge and to terminate all agreements that have been signed with it. - Varlam Goletiani. Image source: Ipress.ge

BY TEAM GT

M

inisterofEconomyNatia Turnava responded to ongoing protests regarding the construction of the Namakhvani HPP this week, saying that the government is ready for “meaningful dialogue.”

However, she added, talks on this issue will be very difficult if the capital’s streets remain blocked.

“All branches of our government are ready to discuss this issue, with experts.

However, of course, dialogue will be very difficult if the streets are blocked and paralyzed,” Turnava said.

People protesting the construction of the Namakhvani HPP, currently being built north of Kutaisi by a Turkish-Norwegian company ENKA Renewables LLC, last weekend set up tents in Republic Square in Tbilisi, claiming they would stay in the area until their demands were met.

“If our demands are not met, we will picket and paralyze the capital,” said Varlam Goletiani, one of the organizers of the rally.

After a 208-day protest in tents in the Rioni Gorge, and further rallies in Kutaisi, activists protesting the construction of Namakhvani HPP moved to Tbilisi.

“The battle begins here and now, and

we will bring it to an end. It is important to be ready for a long-term struggle,” Goletiani told his fellow protesters on Republic Square.

Construction company ENKA responded to the ongoing rally against the construction of Namakhvani HPP with a special statement.

“We would like to state with full responsibility that the opinion of both the residents of Rioni Gorge and each citizen of Georgia is important to us. We recognize our share of responsibility to the public and once again publicly declare our readiness to continue the business discussion with all stakeholders.

“We believe that the most important thing today is to use any business format, all opportunities for dialogue, so as not to leave unanswered any problematic questions, and, based on facts and arguments, to assure you that the Namakhvani project is a Georgian affair that serves the well-being of Rioni Valley residents and the country,” reads the statement.

In an exclusive interview with GEORGIA TODAY last week, Elene Ghubianuri, Administrative Director of ENKA Renewables, said that the company, contrary to the claims of the protesters, had been open with the local community from day 1.

“From the day of winning the international tender in 2017, the company launched an active communication cam-

paign with the local population,” she told us. “To this end, community coordination councils were set up, whose members were represented by representatives named by the villages. Informational meetings and discussions were held in the format of these boards with the participation of the company's management, its employees, and invited experts. Information centers were also set up where anyone interested could get information on key issues, as well as raise a new issue for further discussion.

The focus of the discussion was on dam safety, environmental and social impacts, and compensation policies.

“The company also discussed the development prospects of the valley and the company plans for projects to improve the well-being of the locals,” she said.

“These include the development of family hotels, winemaking, beekeeping, agriculture and education.”

Yet, Goletiani noted this week that their demands are unchanged.

“Our main demand is for ENKA to leave the Rioni Gorge and to terminate all agreements that have been signed with it. This includes the contract and the transfer of land. Further, we demand the Minister of Economy resign. We want to raise the issue of responsibility of all those who participated in the preparation of this documentation, and announce a moratorium to start public engagement to address the problems in the energy sector so that protests such as these are no longer necessary,” he said. “As it stands, this protest will continue until our basic requirements are met.”

“Each and every citizen should know that speaking in the language of an ultimatum is categorically unacceptable, and is reminiscent of the dark 90s,” Prime Minister Irakli Garibashvili told reporters in response, noting that the state will have an appropriate response for all citizens who violate the law.

“We did our best to provide maximum information to our citizens. We also offered our citizens a suitable dialogue format. There have been numerous attempts on our part,” the PM claimed.

“In addition, we invited the EU Special Representative, who will once again examine in detail all the nuances and details of this project. I also instructed

the Ministry of Justice to study the compliance of the project with international practice using an independent law firm.

“At the end of the month, I'll meet the investor company owner. I myself am involved and want to be aware of all details so that there is nothing contradictory in this agreement,” Garibashvili said.

On May 24, Goletiani suggested the protesters march to parliament and dialogue be held with parliamentarians in the street, or in the presence of media, “for all to hear.”

Kakha Kuchava, Speaker of the Parliament, responded to this idea in the negative, labeling it as an “unconstructive format for dialogue.”

“The format that was proposed to us, of course, was not constructive, because it is physically impossible to discuss issues with hundreds of people at one time. During the chairmanship of the Environment Committee, we had the practice of setting up a working group on such issues, and all our meetings were broadcast live, including on Facebook.

My door is always open for a constructive conversation, and I will gladly continue to involve all parties in a transparent manner in any form, be it live, on TV, Facebook, or social media,” Kuchava said.

To date, no dialogue has taken place in any form.

Following a three-day protest in Geor-

gia's capital Tbilisi, the “Guardians of the Rioni Valley” returned to the village of Gumati and spent six hours overnight Wednesday repeatedly hitting the metal barricades around the construction site that had been erected by the police.

The move caused the Ministry of Internal Affairs to launch an investigation.

“The metal barricades set up by police for security reasons near Gumati have been damaged,” the MIA announced Thursday morning.

“Opponents of Namakhvani HPP construction moved from Tbilisi to Rioni Gorge yesterday and continued their protest rally in Gumati. The gathered crowd threw stones and various objects at police security barricades throughout the night. We are looking into the fact of violation, which will be followed by an appropriate legal response.

“The Ministry of Internal Affairs calls on citizens to act in full compliance of the law and follow the rightful demands of the police when exercising the right of freedom of expression and assembly,” the Ministry stated.

The police have mobilized a water cannon vehicle on the ground.

On arrival in Gumati, Goletiani said the “Guardians” were going to block all entrances to the valley and restrict the movement of ENKA vehicles.

Follow the latest developments on georgiatoday.ge.

The “Guardians of the Rioni Valley” returned to the village of Gumati and spent six hours overnight Wednesday repeatedly hitting the metal barricades around the construction site. Image source: Netgazeti

Corona Updates: COVID Cases in Georgia Continue to Decrease Imnadze, Deputy Director of the NCDC, noted that the side effects of the Sinovac vaccine are minimal and mild.

Georgia is expected to receive the first batch of a total 1 million doses of Pfizer in June, first intended for those who need their second dose, followed by the most vulnerable groups.

BY ANA DUMBADZE

I

n recent days, newly detected coronavirus cases in Georgia have continued to show a decreasing trend. However, the capital Tbilisi, given the highest number in terms of population, still reports the majority of cases on a daily basis. Tbilisi is followed by the Adjara, Imereti and Samegrelo-Zemo Svaneti regions.

Georgia reported 338 coronavirus cases, 1357 recoveries, and 17 deaths on Monday, with 9598 tests conducted over 24 hours. Georgian capital Tbilisi recorded the highest number of 208 cases, followed by the Adjara region with 50 cases, and the Samegrelo-Zemo Svaneti region with 33 cases.

On Tuesday, the country recorded 1354 coronavirus cases, 821 recoveries, and 15 deaths, with 30,456 tests conducted.

Tbilisi recorded 669 cases, followed by the Imereti region with 184 cases, and the Samegrelo-Zemo Svaneti region with 129 cases.

Georgia reported 1015 coronavirus cases, 1151 recoveries, and 28 deaths on Wednesday, with 39,697 tests conducted across the country. Tbilisi recorded 550 cases, followed by the Samegrelo-Zemo Svaneti region with 102 cases, and the Imereti region with 84 cases.

The country reported 508 coronavirus cases, 1481 recoveries, and 17 deaths on

THE RESTRICTIONS

Thursday, with 24,358 tests performed.

Tbilisi again recorded the highest number of 252 COVID-19 cases within 24 hours, followed by the Adjara region with 61 cases and the Samegrelo-Zemo Svaneti region with 48 cases.

The total number of confirmed cases in Georgia since February 2020 has reached 340,838. Among these, 323,409 people recovered and 4699 died. There are 12,730 active cases of infection in the country.

The daily test-positivity rate this week-

end stands at 2.09 %, down from 3.77% in the past 14 days.

There are 48 people in governmentassigned quarantine facilities, 3965 COVID-19 patients hospitalized, while 668 asymptomatic and mild symptom patients are being treated at governmentassigned treatment facilities.

Currently, out of 891 critical patients, 218 require mechanical ventilation.

THE VACCINES “As of May 27, a total of 125,601 vaccina-

tions had been administered and 19,392 people are fully vaccinated,” reported the National Center for Disease Control and Public Health (NCDC).

On May 24, the Sinovac vaccination program started in Georgia. Registration for the Sinovac vaccination opened on May 21. Bookings filled quickly.

The Chinese-made Sinovac vaccine, like Sinopharm, is a traditional vaccine and is used for people over 18 years of age, reports the Ministry of Refugees, Labor, Health and Social Affairs. Paata

Considering the current epidemiological situation, the Georgian government has decided to lift two important restrictions this week: the country will open its land borders from June 1, and will once again allow eateries to host customers indoors on weekends.

“Land borders will be opened and it will be possible to cross the border with a full vaccination certificate and a negative PCR test result, or with only a negative result from a PCR test performed in the last 72 hours, provided such persons are again tested within 72 hours of entering Georgia,” said Giorgi Gibradze, Chief of the Operational Staff of the Interagency Coordination Council.

The government recommends that all visitors have health insurance, which also covers COVID cases.

In addition, Canada, Japan, Kuwait, China, South Korea, Moldova and Oman are to be added to the list of countries whose citizens and residents will be able to cross the Georgian border with a negative PCR result received in the last 72 hours.

IWG plc, Level 4, 2 Leonidze str. Tbilisi, Georgia | +995 32 290 039

4

POLITICS

GEORGIA TODAY

MAY 28 - JUNE 3, 2021

Lukashenko ‘The Avia-Pirate’ – Steadying The Sinking Ship?

INTERVIEW BY VAZHA TAVBERIDZE

O

n May 18, Belarus’ most popular internet portal TUT.by was shut down.

In addition to the editorial office, journalists were also searched and 15 employees of the newspaper were arrested.

There is no rest for the wicked, they say, and if it’s indeed true, then Belarus strongman President Alexander Lukashenko might just be suffering from acute insomnia. Shutting down TUT.by evidently couldn’t sate his appetite, though, as, on Sunday, May 23, he committed a direct act of state terrorism: a Belarusian fighter jet forced a Ryanair flight, which was flying from Athens to Vilnius, to land at Minsk Airport. After the forced landing, passenger Roman Protasevich, founder and ex-editor of the opposition Telegram channel Nexta was promptly arrested.

While the West plans a new round of sanctions, the pivotal question puzzling analysts and opinion-makers alike is what is on Lukashenko’s mind? Why is the self-proclaimed president so willing to aggravate things even further? Especially in a situation where active protests in the country have been suppressed and his power, at least in the immediate future, seems no longer threatened?

These were the questions GISP asked Maria Avdeeva, Research Director at the European Expert Association.

THE PROTASEVICH INCIDENT HAS ALREADY BEEN DUBBED AN “ACT OF STATE TERRORISM,” AND INDUCTED LUKASHENKO INTO AN INCREASINGLY NARROW GROUP OF INTERNATIONAL PARIAH LEADERS. IS THERE A WAY OUT OF THIS FOR HIM TO EVER BE CONSIDERED AS A LEGITIMATE POLITICAL FIGURE AGAIN? The crimes committed against his own population after the 2020 elections already made another rapprochement with the West very unlikely. However, one shouldn’t still completely rule it out: previously, Lukashenko got away with even killing his political opponents. And yet, this last incident might just prove to be the final step that went too far. If there is any winner in this situation, it’s Russia – as the already miniscule field

for dialogue between Lukashenko and the West has diminished further, and now he is even more dependent on Russia.

It also highlights the impact of the 2020 protests on the Lukashenko regime, of its transformation. Whereas previously there was room for "system liberals," now they have been entirely replaced by the “Siloviki”. But relying exclusively on the Siloviki has its own peculiarities.

Now, the Belarusian regime is doomed to search for new enemies - the siloviki need a trademark outer threat to demonstrate their indispensability. And although, in the short term, this helps to keep the situation under control, it simultaneously shortens the regime's days.

The political system built by Lukashenko is gradually moving into self-destructive mode.

SHUTTING DOWN TUT.BY, KIDNAPPING PROTASEVICH LUKASHENKO MIGHT THINK HE IS WINNING A BATTLE BUT MIGHT HE BE LOSING THE WAR? He is losing the war against his own people, as his position becomes more and more precarious, with precious little room for political maneuvers. In the eyes of the Belarus people, he is already an outcast, no longer one of their own. He might himself entertain notions to the contrary, and console himself with thoughts that there are no large scale protests anymore, his naysayers are in jail, that he succeeded to terrorize a whole nation into submission, but there is no way for him to get the trust of the people back. That bridge was burnt long ago, and it’s only a matter of time before he starts losing the battles as well.

HIS DECREE PROVIDES FOR THE TRANSFER OF PRESIDENTIAL POWERS TO THE SECURITY COUNCIL OF BELARUS IN THE EVENT OF AN EMERGENCY. WHAT ARE THE IMPLICATIONS OF SUCH A MOVE? He himself dubbed it a “historic decree”.

It’s a military junta scenario; it tells the Belarusians “whatever you do, nothing will change. If I am no longer around, the military will rule the country.” He wants to give the impression that he has everything under control, that nothing will happen and his regime will stay in power. It’s also a precaution: if things go pear-shaped for him, he doesn’t want all

Maria Avdeeva, Research Director at the European Expert Association

his power to be in one person’s hand, which constitutionally would be the Prime Minister. On the foreign policy front, it’s also a bow towards the Kremlin, indicating that Lukashenko’s past bargaining with the West might be truly over and that now he is firmly in their grasp.

FOR DECADES, LUKASHENKO WAS SEEN AS TRYING TO MAKE HIS PRESIDENCY HEREDITARY. GIVEN THE CURRENT SITUATION, IS THIS SCENARIO STILL ON THE CARDS?

I think it might be shelved, but that doesn’t mean it has been cancelled altogether. He is very worried about his sons, his family – by now, these might well be the only people that won’t betray him given the chance. If Russia doesn’t guarantee their well-being and safety, he should take care of that himself. As for transferring presidential powers to his offspring, I am sure he still entertains the notion, but his youngest son, whom he reared for such eventuality, is still too young. Trouble came knocking at Lukashenko’s door earlier than he’d have liked.

WE NEED TO DISCUSS THE SO-CALLED “ASSASSINATION” ATTEMPT AS WELL- WHAT WAS THAT ALL ABOUT? WHO BUYS THE NARRATIVE THAT THE WEST ORDERED LUKASHENKO’S DEATH? Supporters of Lukashenko, and to an extent, Putin, more or less do believe what they are told. Especially the older generation for whom the state-run TV channels are the main source of information. Another thing it accomplishes is distraction from actual events and, obviously, giving the Kremlin propaganda, another lever to use in their AntiWestern rhetoric. Even Putin mentioned it in his speech in front of the federal assembly.

INCREASINGLY, IT LOOKS LIKE LUKASHENKO IS CORNERED. AND CORNERED PREDATORS, AS THEY SAY, ARE AT THE MOST DANGEROUS. WHAT’S THE MOST DANGEROUS MOVE HE COULD PULL OFF?

Protesters seeking the freedom of journalist Roman Protasevich. Photo by Wojtek Radwanski/Getty Images

I’m very worried about the Belarusian people. What we are witnessing now exceeds any limits. 15 journalists in jail at the moment, charges all politically motivated, and tomorrow this number

could rise to 150. And Lukashenko will keep on going – he sees the reaction from the West, but seems to think it’s a risk worth taking.

There was a leaked conversation where his top level Siloviki were discussing creating quasi-concentration camps for “untrustworthy” opposition figures – after Protasevich’s arrest, it no longer seems so unthinkable. Especially considering that Lukashenko is a long-time admirer of the Soviet Union and probably more knowledgeable than most about Stalin’s methods.

HE’LL PROBABLY BE FORCED TO MAKE SOME CONCESSIONS TO MOSCOW. COULD ONE SUCH BE RECOGNITION OF CRIMEA, ABKHAZIA AND SOUTH OSSETIA? The probability of that is quite high; there has been a constant pressure on Lukashenko from the Kremlin to make that happen. Unlike with the West, Lukashenko is still wary of burning bridges with Ukraine, and to an extent, with Georgia. Minsk as a place for mediation, and Lukashenko himself as the middleman between warring countries – that’s a chair he’s most comfortable sitting on and will be very loath to part with.

Additionally, Ukraine is one of Belarus’ biggest economic partners, and if he were to go that route, he’d have to suffer the Kyiv sanctions, which will hurt him more than the Western-imposed sanctions do. Ukraine and Belarus share a one thousand km long border – alienating such a neighbor is not in Lukashenko’s interests, and it’s not the same as throwing vague threats at the proverbial West. Were it to happen, though, I doubt such recognition would carry much political weight internationally – if anything it would further cement Lukashenko’s image as a dictator.

BUSINESS

GEORGIA TODAY MAY 28 - JUNE 3, 2021

5

Georgia and Its Transit Potential ANAYSIS BY EMIL AVDALIANI

G

eorgia might be a small market, but this deficiency can be substantiated by the country’s location. Georgia has historically been at the edge of empires and entire continents – Asia and Europe. This has been both an asset and a hindrance to the development of the country. A hindrance because it attracted foreign invaders, an asset because Georgia’s location allowed the country from time to time to position itself as a major transit territory between Europe, Central Asia, and China.

Since 1991, a new Silk Road concept has been gradually emerging at the borders of Georgia. In fact, a closer look at historical sources from the ancient, medieval or even 15th-19th cc. history of Georgia shows an unchanged pattern of major trade routes running to the south, west, east and north of Georgia. Those routes were usually connected to the outer Middle East, Central Asia, and the Russian hinterland. Only rarely did the routes include parts of the Georgian land and, when it happened, it lasted for merely a short period of time as geography precluded transit through Georgia: Caucasus Mountains and seas constrained movement, while general geographic knowledge for centuries remained limited.

After the break-up of the Soviet Union, Georgia returned to its positioning between the Black and Caspian seas, between Central Asia and Eastern Europe.

Major roads, pipelines and railway lines now run through Georgian territory.

Moreover, major works are being done to expand and build existing and new Georgian ports on the Black Sea, with the potential to transform Georgia into a sea trade hub.

A good representation of Georgia’s rising position on the Silk Road is a major bi-annual event, the Silk Road Forum, held in Tbilisi since 2015. The hosting of the event underscores how Georgia has recently upped its historical role as

a regional hub connecting Europe and Asia. On the map, it is in fact the shortest route between China and Europe, which could in turn make the country an increasingly attractive destination for foreign investment. Indeed, the regional context also helps Tbilisi to position itself, as Georgia has Free Trade Agreements with Turkey, the CIS countries, the EFTA and China, and a DCFTA with the European Union, comprising a 2.3 billion consumer market. These are those advantages which can be leveraged by the European business community in their quest to penetrate the far-flung regions of Central Asia and the Middle East.

Thus, from a historical perspective, the modern Silk Road concept emanating from China arguably represents the biggest opportunity Georgia has had since the dissolution of the unified Georgian monarchy in 1490 when major roads criss-crossed the Georgian territory.

Another asset is the newly built Baku– Tbilisi–Kars (BTK) railway opened in 2017 by Azerbaijan’s President Ilham Aliyev, Turkish President Erdogan, as well as then-Georgian Prime Minister Giorgi Kvirikashvili, at a ceremony to launch the railway which stretches from the Caspian Sea port of Alat to the city of Kars in eastern Turkey.

This set the scene for improved connectivity not only in the South Caucasus, but also for the landlocked Central Asian states. The project opens a rail corridor potentially connecting Central Asia with European markets through the South Caucasus.

And Central Asia matters. To reach the region, Georgia and its infrastructure are critical. What is crucial here is that the shortest route to ship freight to Europe from Central Asia is across the Caspian to Azerbaijan, Georgia and the Black Sea. The steady growth of shipments from China will further boost the fragile South Caucasus transport and energy corridor, which struggles to compete with enormous trade routes which go through Russia and elsewhere.

What makes the Caspian route more interesting is the progress made in port

These connectivity trends will reinvigorate Trans-Caspian shipping. Source: eu4georgia.ge/maritime

development in Azerbaijan and Georgia.

The ports of Baku and the small city of Alat have notably improved their infrastructure over the past several years.

Similar trends of improving infrastructure are being seen along the rest of the South Caucasus corridor. The Georgian government granted the APM Terminals a permit to start the expansion of Poti Port. Essentially, the project, which will add more than 1000 local jobs, involves the construction of a separate new deepwater multifunctional port.

The project consists of two major phases: the first stage of $250 million will take around 2.5 years to complete and will involve the development of a 1700-meter-long breakwater and a quay with a depth of 13.5 meters. The second stage envisages a 300-meter-long container quay. What is more important for the infrastructure of the eastern Black

Sea region and the geopolitics of transcontinental transshipment, the expanded Poti Port would have the capacity to receive Panamax vessels.

The expansion of Poti will have regional implications. The port already enjoys the role of the largest gateway in the country and is a major outlet for Azerbaijan and Armenia’s trade with Europe. For instance, liquids, passenger ferries, dry bulk and container traffic go through Poti. Poti Port also serves as an alternative route for export from Central Asia to the Black Sea and elsewhere.

Similar developments are taking place in Batumi. In 2019, Wondernet Express, Trammo and the Government of Georgia announced plans to build a new terminal with a total investment cap of 17.5 million Euros. The new facility will be able store tens of thousands of tons of mineral

fertilizers coming from Central Asia through Azerbaijan.

These connectivity trends will reinvigorate Trans-Caspian shipping, but there is still more to the story, as both Europe and Turkey are interested in breaking Russia’s grip on gas export routes from Central Asia. Support for the east-west corridor across the South Caucasus has been present since the break-up of the Soviet Union, but rarely have there been such promising trends as there are now: steadily increasing China-Europe shipping; the Chinese Belt and Road Initiative’s expansion into Central Asia; and gradually improvement of rail, road and port infrastructure in Georgia and Azerbaijan.

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

Paving the Way to a Climate-Proof Future

O

n the path to achieving a climate-proof future, Georgia is preparing a national strategy for low-emission development. The strategy will focus on transforming the economy and reducing greenhouse gas emissions by 2050, will include specific low-carbon development scenarios for key sectors and will define long-term priorities to mitigate climate change.

The Ministry of Environmental Protection and Agriculture (MEPA) is taking the lead in this effort with support from the European Union (EU) and the United Nations Development Programme (UNDP). The EU and UNDP assistance draw on the EU-funded EU4Climate programme.

On 24 and 25 May, specific low-carbon development scenarios for eight sectors of Georgia’s economy (agriculture, buildings, energy, forestry, industry, land use, transport and waste management) were discussed at a workshop organized by the EU, UNDP and MEPA in partnership with the Regional Environmental Centre for the Caucasus.

“The Long-Term Low-Emission Development Strategy 2050’ will be based on the latest scientific research to address Georgia’s climate goals and economic priorities,” said Deputy Minister of Environmental Protection and Agriculture Nino Tandilashvili. “Georgia already submitted its updated Nationally Determined Contributions and adopted the Climate Strategy and the Action Plan. The strategy for low-emission development will mark the next step in planning the national

emissions by 15 per cent below the reference level; the industry sector (responsible for 12 per cent of national emissions) will reduce emissions by 5 per cent.

The ‘Long-Term Low-Emission Development Strategy 2050’ complements these commitments by presenting a long-term vision of low-carbon development and supporting Georgia’s progress toward a climate-resilient and economically and socially prosperous society.

“Low-carbon development is the way to achieve sustainable economic growth, create new jobs and explore climatefriendly technology in every economic sector,” noted UNDP Acting Head Anna Chernyshova. “UNDP supports the Government’s decision to set up realistic long-term goals and take practical steps to achieve them.” The national ‘LongTerm Low-Emission Development Strategy 2050’ is expected to be finalized by September 2021. After adopting the Strategy, the Government of Georgia will submit it to the UNFCCC secretariat.

These connectivity trends will reinvigorate Trans-Caspian shipping.

climate mitigation measures.”

“The EU welcomes bold steps made by the Georgian Government to adopt a long-term low-emission development strategy that will help to make national development climate-compatible and define concrete priority directions for Georgia to meet its climate objectives,” said Alexandre Darras, Team Leader on Connectivity, Energy, Environment & Climate Change at the EU Delegation to Georgia. “The EU4Climate program

assists Georgia and the other Eastern Partnership countries in fulfilling climate and energy commitments undertaken under the EU Association Agreement, the Paris Agreement and the Energy Community Treaty.”

On 5 May, Georgia submitted its updated Nationally Determined Contributions (NDCs) to the United Nations Framework Convention on Climate Change (UNFCCC), pledging to unconditionally reduce national emissions by 35 per cent

below its 1990 baseline by 2030. At the same time, the country adopted its new Climate Strategy and the Action Plan, setting out concrete steps to achieve this ambitious goal.

Among other commitments, Georgia’s climate pledge includes reducing the carbon footprint of the key sectors responsible for national emissions.

According to the updated NDCs, the energy sector (responsible for 62 per cent of national emissions) will reduce

*** The EU4Climate program is designed to assist Georgia and other Eastern Partnership countries mitigate climate change by reducing their greenhouse gas emissions and adapt to its effects by introducing climate-sensitive policies. The program is funded by the EU and implemented

by UNDP in the six Eastern Partnership countries (Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine). Drawing on a total budget of EUR 8.8 million, the four-year EU4Climate program will continue until the end of 2022.

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BUSINESS

GEORGIA TODAY

MAY 28 - JUNE 3, 2021

ISET GDP Forecast | Tourism Decline Main Driver of 2020 Negative Growth.

Will it Drive the Recovery in 2021? nia [-12.9 ppts], Turkey [-9.9 ppts] and EU [-5 ppts]), while the decline in tourist numbers (visitors who spent 24 hours or more in Georgia) amounted to 64.4%.

Overall, dramatically declining numbers of visitors and tourists, along with a sharp decrease in touristic spending has made a significant negative contribution to the growth forecast. Overall, 2020 has demonstrated just now much the Georgian economy depends on international tourism flows. This “dependence” also implies that as the economy gradually opens up, Georgia may be reasonably looking forward to a tourism-driven economic recovery.

REAL EFFECTIVE EXCHANGE RATE

BY DAVIT KESHELAVA AND YASYA BABYCH

I

SET-PI has updated its real GDP growth forecast for the second and third quarters of 2021. Here are the highlights of this month’s release:

HIGHLIGHTS • Geostat has released its GDP growth estimate for the first quarter of 2021. The Q1 growth stands at -4.2%, which is 1.2 percentage points above the recent ISETPI forecast.

• ISET-PI’s forecast of real GDP growth for the second quarter of 2021 stands at 12.2% -up from 11% in April. The third quarter growth forecast currently stands at 3.3%.

• Notably, our econometric model depends only on the retrospective information (past observations), thus, an abnormally large negative growth of the real GDP during the second wave of strict government restrictions causes overestimation of the contraction in the first quarter and growth in the second quarter of 2021 .

• Consequently, the annual growth in 2021, from March data, is expected to be 3.9% in the worst-case scenario, and 4.3% in the best-case or an average long-term growth scenario. Our middle-of-the-road scenario (based on the average growth in the last four quarters) predicts a 4% increase in real GDP.

REAL GDP BY CATEGORIES OF USE IN 2020 Geostat has released information about the decomposition of economic growth by categories of use for 2020. Increase in private consumption and general government expenditure were the main contributors to real GDP growth in 2020.

The boost to consumption can be related to the fiscal stimulus aiming at mitigating the effects of the pandemic and the favorable growth of lending to the economy. The impact of the crisis on investments was relatively small, making a negative contribution of 0.8 ppt in 2020

respectively. Net export was the main contributor to the economic slowdown in 2020 (with -8.2 ppts contribution), and drop was mainly driven by the disruption in tourism revenues.

EXTERNAL MERCHANDISE TRADE In March, Georgia’s exports increased by a 30.6% yearly. This trend was mainly driven by an increase in the export of ferro alleys, textile and carbon steel semifinished products to Turkey; alongside with the export of ferro-alleys, natural grape wines, mineral waters and alcoholic beverages to Russia; re-export/export of motor vehicles, calculating machines and their blocks, as well as copper scrap and mineral waters to Ukraine; export of

medicines in Uzbekistan; exports of precious metals and chemical fertilizers to Lithuania; export of spirits to France; reexport of copper and precious metals to China, and ferro alleys to USA. In contrast, Georgian export of copper ores and concentrates to Spain and Bulgaria experienced annual decline.

During this period, the import of goods increased by 17.8%, driven by a increase in import of copper ores and concentrates from Armenia; petroleum and fuel product imports from Russia and Azerbaijan (mostly due to a significant annual increase of crude oil prices on the international market in annual terms – by 104.4% in March). Among other positively affected imports were: vehicles (carry-

ing more than 10 passengers) and electricity from Turkey; copper ores and concentrates from Indonesia; motor cars and trucks from Germany; and paving tiles from Iran. In contrast, Georgian imports of special purpose vehicles from China; motor cars from USA; copper ores and concentrates from Peru; and fuel and petroleum products from Kazakhstan. Consequently, the trade deficit increased by 9.9% yearly, and amounted to 442.4 million USD. Overall, trade related variables had a negative contribution to the GDP growth forecast.

MONEY INFLOW After a significant slowdown in money inflows at the beginning of the previous year, remittances were on the path of recovery.

In March, remittances increased by 49.5% yearly.

The main contributors to this increase were Italy (by 76.3% YoY, contribution 10.5 ppts), USA (by 59.8% YoY, 7.2 ppts), Russia (by 26.8% YoY, 5.4 ppts), Ukraine (by 145.2% YoY, 4.2 ppts), Azerbaijan (by 207.6% YoY, 3.9 ppts), Greece (by 27.3% YoY, 3.5 ppts), Israel (by 32.7% YoY, 3.1 ppts), and Germany (by 70.2% YoY, 2.8 ppts). The recovery of remittances flows made a positive contribution to the growth forecast.

INTERNATIONAL VISITS AND TOURISM Tourism arrivals and receipts declined sharply as a result of numerous travel bans, as well as precautionary behaviors on the part of potential tourists. In March, the number of international visitors decreased by 73.4% yearly (driven by Azerbaijan [-18.7 ppts], Russia [-13.5 ppts], Arme-

In March, the Georgian Lari real exchange rate depreciated by yearly and appreciated by monthly terms against all main trading currencies. The Real Effective Exchange Rate (REER) appreciated by 4.5% relative to the previous months, and depreciated by 5.8% relative to the same month of the previous year. Notably, the Lari real exchange rate depreciated with respect to the Euro, the US Dollar and Russian Ruble by 10.5%, 4.5% and 6.8% respectively in yearly terms, but appreciated with respect to Turkish Lira by 1.2%. REER appreciated with respect to major partner currencies in monthly terms by 2.6% against US dollar; 9.9% against Turkish Lira; 2.8% against Russian ruble; 4% against the Euro.

Depreciation of the REER is typically associated with domestic export goods gaining competitiveness on the foreign markets, but it also translates into increased prices on imported goods.

Overall, REER-related variables had a small positive contribution to the real GDP growth projections.

INFLATION In March, the annual inflation of consumer prices amounted to 7.2%, which is notably higher than the targeted 3%.

Approximately 1.6 percentage points of CPI inflation were related to higher food prices, which increased 5.5% annually (which was driven by higher world food prices), while tobacco prices contributed 0.4 percentage points. Furthermore, increased oil prices made a notable positive contribution (0.4 ppts) to the annual inflation measure. The latter trend is mostly a reflection of significantly increased oil prices on the global market (Euro Brent Spot Price (COP) increased by 104.4% yearly). Meanwhile, the measure of core inflation amounted to 6.6%. Due to substantially higher annual inflation rate compared to the targeted 3% and risks of emerging inflationary expectations, National Bank of Georgia (NBG) increased Monetary Policy Rate (MPR) twice in March 2021 by 0.5 ppt and in April 2021 by 1 ppt. This had a negative impact on the annual real GDP growth. Overall, CPI related variables had a slight negative contribution to the GDP forecast.

Our forecasting model is based on the Leading Economic Indicator (LEI) methodology developed by the New Economic School, Moscow, Russia. We have constructed a dynamic model of the Georgian economy, which assumes that all economic variables, including GDP itself, are driven by a small number of factors that can be extracted from the data well before the GDP growth estimates are published. For each quarter, ISET-PI produces five consecutive monthly forecasts (or “vintages”), which increase in precision as time passes. Our first forecast (the 1st vintage) is available around five months before the end of the quarter in question. The last forecast (the 5th vintage) is published in the first month of the next quarter.

BUSINESS

GEORGIA TODAY MAY 28 - JUNE 3, 2021

7

French Winemaker Loic Pasquet to Produce Georgian Wine for the EU Luxury Market you have amazing wine in Georgia, but it is difficult to find. And amazing winemakers, but I have yet to find them. So far, the wine I’ve tasted is best for drinking with friends, but is not suited for export. I would like to find a small winemaker with all the potential behind them of a wine variety paired with the right terroir.

DO YOU ALREADY HAVE A BUSINESS MODEL IN MIND? Yes. And I don’t think the price of Georgian wine is good today. Wine is born here, and yet the price is lower than that of Napa Valley, and that is a mistake.

HOW DO YOU COMPARE GURIA’S WINES TO KAKHETI WINES?

George Sharashidze, Georgia Today’s publisher, interviewing Loic Pasquet in Bukistsikhe, Guria

Continued from page 1 George Sharashidze, GEORGIA TODAY’s publisher, and founder of the brand ‘Guria Republic,’ with an ambitious plan to make Guria, a Georgian region in western Georgia, a world-famous destination for wine lovers, met with France's best winemaker Loic Pasquet in his own village of Bukistsikhe, in the Gurian mountains, a unique micro zone for Gurian endemic wine varieties such as Chkhaveri, Jani, Skhilatubani, Mtevandidi, and Sakmiela.

On May 13, after trying Chkhaveri wines from village Bukistsikhe winery and delicious Gurian culinary served wholeheartedly in Vakhtang Sharashidze’s 200-yearold historic house, George sat with Pasquet to explore the secret behind producing the most expensive wines at 30,000 Euros a bottle, and how to start improving Georgian winemaking to EU standards for the most expensive wine segment.

LOIC, TELL US WHAT FIRST GOT YOU INTERESTED IN GEORGIA AS A POTENTIAL DESTINATION. Everybody knows about Georgia in Europe, because it is where wine was born. On TV, we hear a lot about Georgia, and yet you’ll struggle to find a bottle of Georgian wine in Europe. This is

the nation where wine was born, but it is impossible to find it to taste in Europe.

And if we do find a bottle, we don’t like the quality. All the knowledge, all the history should be in that bottle, but it is merely the kind of wine you might drink at the table with friends - not export.

IS THIS YOUR FIRST VISIT TO GEORGIA? Yes. It’s an impressive country, because you have wine everywhere. We see it is a nation of wine, and the people are friendly, the atmosphere is good. It is clearly a big wine nation.

WHAT ARE YOUR IMPRESSIONS OF THE GEORGIAN REGIONS? I KNOW YOU VISITED KAKHETI, ADJARA, AND NOW YOU ARE IN GURIA. Yes, and each region is totally different - west, east; the climate is different, the weather, the soil and wine varieties are different. The fermentation methods are different. Everything is different and we see big potential in the various terroirs in the regions. You need to explore this potential.

DO YOU HAVE ANY FAVORITE WINES YET? Not yet. I’ve tried a lot of wine. I’m sure

It’s difficult to compare. It’s my first time in Georgia and I am still trying to understand it. We can feel the potential, but I’m not sure you have the best wine.

Georgians need to be more professional, I think. They seem to have perhaps lost their wine culture - by which I mean knowing which is the right vine variety for the right terroir. They have perhaps forgotten where the old, original, plots are, where varieties were grown before the Soviet Union. They need to learn again the best clay for good wine, and how best to ferment - in Qvevri, or in the European style. It is a discovery being here, but I am still trying to get my head around it. I will come back in July and then we’ll see.

using the Georgian technique, not from barrels. If you give me Georgian wine with the same taste as Bordeaux, why bother? It makes no sense. I want to experience Georgian wine, I want to feel Georgia, the Georgian mountains, countryside and song. For me, it is all about the Qvevri. But not only that: you need to present all the techniques from each region, to show the country off. And it is important to control everything; the techniques; get the right varieties growing on the right terroir.

SO, YOU HAVE TASTED GEORGIAN RED, WHITE, AND ROSE WINES, RIGHT? DO YOU SEE POTENTIAL IN ALL OF THEM? Yes, but there is a long way to go. The Georgians must not forget the 8000 years of history of wine here. My advice is to learn again what was in the past the best wine, good terroir, variety and technique of fermentation. I’ve tasted a lot of wine where they use very traditional tools to control the quality and acidity, and they have no problem controlling it with those

tools. What can I say? The market simply wants great wine.

HAVE YOU TRIED QVEVRI WINE FROM ANOTHER COUNTRY? No. Why would I want to taste Qvevri Wine from another country when it was born here in Georgia? If people end up trying Qvevri wine from another country, it is Georgia’s fault for not being present on the market already to discourage others making it as their own. Take the example of Orange wine - a huge success, and Georgia is known for making the best. Yet, today, Bordeaux is making orange wine.

WHAT’S NEXT? For Georgian wine, it not so much an issue of quality, it’s a problem in marketing, and that’s what I see here. It’s not difficult to make wine, it just needs to be done in the right place - that pairing of the grape variety with the right terroir, and remembering the old traditions.

I have to explore it more deeply, and then we will see what the business potential is for me.

HOW DO YOU ASSESS THE POTENTIAL OF GEORGIAN WINE? I’m sure it has very big potential, and, as I said, everybody talks about Georgia, but people simply want to taste good Georgian wine, and right now, they can't.

People must drink a good bottle of wine and then they will want to come to Georgia to see it for themselves.

But if, for example, in France, it is impossible to find Georgian wine, it comes down to a technical and marketing problem.

STRANGE, AS WE REGULARLY HEAR THAT SOME GEORGIAN WINES HAVE ENTERED THIS OR THAT INTERNATIONAL MARKET. Maybe, but I don’t know where. If you go to a supermarket or cellar in France, you won’t find Georgian wine. If you can, it’ll be a variety fermented in an oak barrel. But I want to drink Georgian Qvevri wine: I want to taste wine made

Loic Pasquet tasting Chkhaveri wine made by Bukistsikhe village winemakers in Vakhtang Sharashidze’s 200 years old historical house

Deputy Economy Minister: We’ll Use All Tools to Start Direct Air Traffic with the US

BY ANA DUMBADZE

G

eorgia still wants to start direct flights to the United States.Negotiationsbetween the two countries were underway before the coronavirus pandemic, but the process could not be completed due to the global pandemic, stated the newly appointed Deputy Economy Minister Mariam Kvrivishvili.

Three airlines were interested in starting direct flights in Georgia, which were about to arrive in the country and evaluate its infrastructure, she said.

“Of course, our greatest wish is for transatlantic flights to kick off very soon.

Prior to the Coronavirus pandemic, our delegation visited the United States under the leadership of the Minister of Economy. We had quite interesting and fruitful negotiations with three airlines, and, as a result, we came up with a specific

business plan and saw that there was quite a lot of interest.

“The next step was for the airline representatives to come to Georgia and check our infrastructure, both at the airport and in terms of tourism.

“I have high hopes that we will be able to resume the negotiation process very soon. It will not be easy as 95% of airlines are actually in the process of reexamination, thinking about where and in what directions to resume operations. Nevertheless, we will be proactive and use all the tools we have to bring results we can be proud of very soon, so that Georgia can have direct flights to the United States,” Kvrivishvili said.

Mariam Kvrivishvili, member of Parliament of Georgia, First Deputy Chairman of the Committee on European Integration and former Head of the National Tourism Administration, (GNTA) was appointed Deputy Minister of Economy and Sustainable Development of Georgia on May 24.

Deputy Economy Minister: We’ll Use All Tools to Start Direct Air Traffic with the US

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BUSINESS

GEORGIA TODAY

MAY 28 - JUNE 3, 2021

Terabank is the Winner of Meliora for Responsible Business in Georgia

T

erabank has won the Georgian Responsible Business Meliora Competition. The bank’s project, Terabank for Business Support, won one of the main nominations ‘Support for Small Business and Affected Sectors during the COVID-19 pandemic.’ This year, the competition was dedicated to the very initiatives that companies have taken to fight COVID-19 within the framework of corporate social responsibility.

The winning project provided 50 Terabank business customers with a package of services tailored to their needs in 2020. Among the packages were the creation of logos and corporate styles, social media channels and websites, the promotion of relevant activities on tourism platforms, photography, e-commerce, training, the placement of business information on TV and Terabank communication channels and more. The implementation of the initiative started in the spring of 2020, during the very first stage of the pandemic. The project was preceded by a detailed survey of the needs

of Terabank’s business customers in order to make all of the services as appropriate as possible for the development

of their activities.

“This award is doubly gratifying for us. Naturally, we are very proud to win

this competition but at the same time, we are extremely happy that the support and partnership that exists between

Terabank and our business customers, something which is very special for us, has been recognized. Indeed, we are pleased to have contributed to reducing the damage of the pandemic through our corporate social responsibility activities,” Terabank said.

Terabank’s partner companies were also involved in the initiative in terms of providing their assistance to the bank’s business customers. Communication, consultation and assistance in improving their activities still continue with all of the project’s beneficiaries.

Meliora rewards business companies for their corporate social responsibility (CSR) initiatives. The nominees are evaluated by an independent jury of leading Georgian and foreign experts and the winner is chosen according to the best CSR initiatives based on planning, consistency, effectiveness and sustainability criteria. The competition is organized by the Georgian Center for Strategic Research and Development (CSRDG) with the support of the European Union and the Konrad Adenauer Foundation (KAS).

Global Startup Foundation unites International and Local Investors to Finance Georgian Startups

BY KETEVAN SKHIRTLADZE

A

ngel Investors from the Israel Silicon Wadi, various international foundations, local investors, and speakers from the world-renowned Mas-

sachusetts Institute of Technology (MIT), in partnership with the Georgian Agency for Innovation and Technology, met via webinar at the 3rd Global Startup Fund event at the University of Business and Technology (BTU). 16 startups selected by investors made presentations for the international markets for commercialization and partnership opportunities with

Angel Investors.

The Global Startup Fund is the first international startup fund in Georgia to be established at BTU with the support of Israeli Silicon Wadi Investors and the Georgian Innovation and Technology Agency. The first major funding in the fund, in partnership with GITA, to the amount of GEL 1,300,000, was awarded

in 2019 to the startup Echolize. After joining the MIT Entrepreneurship Center in 2021, all BTU Startup Fund partner companies, startups, and investors have access to the Martin Trust Center's international network, which is one of the largest startup ecosystems in the world.

TBC Startup, a partner of the Global Startup Fund, has created a new startup

investment product that is also becoming available to companies and investors looking to fund a startup.

Following the presentation of the 16 startups pre-selected by investors, the best companies were identified that in the framework of the fund in order to get funding, and these will continue to negotiate with international investors.

BUSINESS

GEORGIA TODAY MAY 28 - JUNE 3, 2021

9

Striking Employees of Borjomi and Company Management Reach Agreement

BY ANA DUMBADZE

A

fter a nine-day strike, an agreement was reached between the striking employees, trade unions and the administration of IDS Borjomi Georgia on Wednesday, with up to 350 workers of Borjomi Bottling Plants N1 and N2 announcing that the strike is over.

The trade unions reported that, following the continuous protests, most of the demands of the employees had been satisfied. Further, the administration and director of JSC Borjomi had been replaced.

The agreement was signed by the Director of IDS Borjomi Georgia, Merab Akhmeteli, President of the Georgian Trade Unions Confederation, Irakli Petriashvili, and Chairman of the Trade Union of Employees in Agriculture, Trade and Industry, Giorgi Diasamidze.

In accordance with the agreement, IDS

Borjomi is to increase the salaries of its workers by 20%-30% and will pay fairly for overtime work.

“The strike of the employees of the Borjomi bottling plant ended in victory!” the trade unions announced. “Most of the demands of the employees have been met – based on the main demand, salaries will be increased from June 1, and their other working conditions will be improved.

“The administration and director of Borjomi were changed, and the new director agreed to a dialogue with the trade unions and facilitated a fair resolution to the process. The agreement was signed in the presence of the employees at the strike site.”

“Fighting always makes sense!” said the Youth Movement of Trade Unions, one of the organizers and supporters of the strike.

“An agreement was reached between Borjomi management and the striking employees. Merab Akhmeteli, the new director of the Borjomi N1 Factory, met

with the striking employees and introduced a number of novelties that the company is to offer them,” announced the IDS Borjomi Georgia administration.

“The new director hopes that the resumption of work at the plants will begin tomorrow. It should be noted that the decision on personnel changes was made by the company due to the current situation.”

On May 25, employees of the Borjomi bottling plant announced that they would picket the plant and not allow anyone

to enter or leave. However, no such radical forms of protest were deemed necessary in light of the ultimate decisions made by the employer company management. Prior to that, the striking employees had met with representatives of local authorities and a mediator appointed by the Ministry of Health, with no results achieved for either party.

The employees of the Borjomi bottling factories went on strike on May 18, demanding a pay rise and better working conditions. The protesters claimed

their salaries had been reduced by 200250 GEL over the previous year, and they could not take a break due to lack of staff and were paid too small an amount for overtime work.

Prior to the strike, there was a 21-day mediation between the company, employees and the Trade Union of Agriculture, Trade and Industry, which ended without an agreement, after which the employees began their legal strike. As a result, the operation of Borjomi N1 and N2 bottling factories were suspended.

SOCIETY

Tchaikovsky & Georgia OP-ED BY NUGZAR B. RUHADZE

A

t least half of Georgians would be up in arms against me if I blurted out something positive about Russia; their annoyance being more than fair, because this nation is angry with that nation, and our fury has widelyknown specific reasons. Regardless, let’s think outside the box for a second to pose two trivial questions: how bad is it for Georgia to have a foe like Russia, and how good might it be to enjoy a comrade in the Russian people? We already have the Russian adversity sitting right on our doorstep, but I have no clue if friendship is likely between us, if imaginable at all.

I’m not trying to replay the forgotten rhapsody of the Russian-Georgian interaction, but I have a funny feeling in my bones that the erstwhile attraction between these two peoples has not utterly disappeared. After all, their historical ties are so tight that they cannot vanish very quickly, leaving no trace in these two peoples’ hearts and minds.

War is a terrible thing, leaving a painful trace in our imagination, but should we be stuck with that much anguish forever? Certain life-size episodes of history would keep that question alive for some good reason. For instance, the preeminent Russian composer Pyotr Tchaikovsky’s brother used to live in

Georgia, having a nice residence where Tchaikovsky Street is now, in old downtown Tbilisi. The musician had a habit of frequenting his sibling here. One of the greatest musicians of all time, who was head over hills in love with the Georgian capital, he would often mention Tbilisi as a sweet dream while corresponding with his friends in Russia: “Tbilisi is an utterly European city, very well arranged, clean, and with an unusually wonderful climate, rich stores and a fabulous opera house. This is a city that fully meets the demands of civilized Europe. At the same time, next to the European part of the city, there is a regular Asiatic town, which is a symbiosis, giving a charming image to the city – the greatest attraction of the place.”

Some of Tchaikovsky’s famous operas were conceived in Tbilisi. The composer liked Georgia so much that he even nursed the idea of moving here, saying that he would stay in Tbilisi for good if he were a little younger. He even wrote a lengthy letter to Emperor Alexander of Russia, requesting the monarch to allot funds to finalize the construction of the new opera house in Tbilisi which would match the dignity of this beautiful city. Tchaikovsky’s kind attempt resulted in real success – the theater was built. He said he had not even known that his music was so popular in Tbilisi, emphasizing that his operas were performed in Tbilisi more often than any-

where else. The fact made his love for Tbilisi even stronger.

The composer’s last visit to Tbilisi took place in autumn of 1890, when he stayed for five weeks. Before returning to Russia, he conducted the symphonic orchestra of the local Music Society. Prior to the concert, the Georgian fans presented him with a conductor’s baton. He was literally drowned in flowers.

For Pyotr Tchaikovsky, Georgia was a country to which he was attracted until the end of his life. One of the most outstanding pieces in the history of music, his Violin Concerto was created in Tbilisi, and his Nutcracker’s world premiere took place here too, conducted personally by him. That day, the composer received one railway-carload of roses from Kutaisi to fill the entire Opera House and its exterior.

Understandably, Russia is no longer a favorite country for Georgians. The Russian language, culture, literature, music and historical personalities have lost their charm and significance for us, although a memorial tablet is still attached to the wall at 16 Tchaikovsky Street in the older part of the city where one Tchaikovsky brother used to live as a permanent resident, and the other stayed as a frequenting visitor. The house itself is an old dilapidated structure that looks wretched and relinquished. The question is whether it is right or wrong to mistreat the great man only because he was Russian.

Tchaikovsky's house in Tbilisi. Source: hideawayreport.com

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SOCIETY

GEORGIA TODAY

MAY 28 - JUNE 3, 2021

Really Happening: Etseri, Svaneti tarmac the year before. And it was also in such bad shape that I, a non-local, was incensed on behalf of those who must travel it regularly. Into whose pockets has the extra money gone, leaving a shoddy, shame-inducing mess behind?

Who is standing over them, protecting them from prosecution?

We must do our best to ensure that the same thing is not repeated here. Our workers don’t live in this province; they are from far away, and don’t have to live with or travel on the results of their handiwork once it’s finished. I hope to get to know them a bit, and get their names and company details, and try to get word out in the village that we CAN say and do something to see a good job done. Really, how can any worker do such a poor job and then get any pride for their labor? Do they push down the voice of conscience until it is completely stifled, and go home glad to be getting a salary for their families anyway? I don’t know. A good worker is worth their weight in gold; a bad one, I only want to advertise AGAINST. So, my mood at the moment is optimistic, forewarned, and cautious. I hope for the best, but recognize that I may have to work, and encourage others to work, to see it happen. I just hope we won’t let ourselves be deceived by what is being done right under our noses and running past our doors. The next few months will say.

BLOG BY TONY HANMER

A

couple of forewords before I start this week’s main article. One: A neighbor of one of the graduating Latali pupils I wrote about last week called me a day after I had finished editing the 768 photos of their two-day celebrations. At great speed, and with considerable anger (and not a word about the quantity or quality of my images), she let me know that, because I had hitched a ride for the roughly 20 km round trip from Mestia to their final destination (a trip not included in my own petrol calculation), I wasn’t entitled to the remaining 30 GEL of my 60 GEL petrol fee. Having been interrupted by her several times, and being unable to make any headway, I handed the phone to my wife, who got little further despite both of them being native Georgian speakers. Disgusted and furious, all I want now is an apology from someone.

The other thing is that I intended to write this week about the renaming of our Etseri Public School after one of four young men who died on the same day in the war with Abkhazia a couple of decades ago. But that event has been so full of invitations not given or given too late, and numerous other spurnings and intrigues, that I throw up my hands.

Instead, I turn to the long-awaited and now starting renovation of the roughly 2 km road which goes up past our house from the main Zugdidi-Mestia highway.

Little rebar posts with red and white ribbons attached (either Georgian or Canadian colors) have begun appearing on the road, which currently resembles nothing as much as a former river bed.

The surveyors came; now the workers

are paying a local family some 700 GEL/ month to host them as they begin. They are digging trenches for water to run along the road, first. I’m not sure of we will get only cement or tarmac as well, but the excitement is considerable.

The thing is, as I am taking pains to say to the mayor and others, my wife and I saw a new tarmac road being laid in Ambrolauri, Racha, on our Covidinduced Georgian travels last fall. It was not yet finished… and, even to my

untrained eye, was already heartbreakingly badly done, before erosion or other natural factors could begin spoiling it.

The 10 km road from the main Racha highway to my wife’s ancestral village of Mravaldzali had also been done in

Tony Hanmer has lived in Georgia since 1999, in Svaneti since 2007, and been a weekly writer and photographer for GT since early 2011. He runs the “Svaneti Renaissance” Facebook group, now with nearly 2000 members, at www.facebook.com/ groups/SvanetiRenaissance/ He and his wife also run their own guest house in Etseri: www.facebook.com/hanmer.house.svaneti

Events Focused on Empowering Women and Girls held in Zugdidi Municipality

O

n May 21, a number of events focused on the topic of empowering women and girls were held in Zugdidi Municipality through

the joint effort of the Human Rights Secretariat of the Administration of the Government of Georgia, the United Nations Population Fund (UNFPA) Georgia Country Office and the publish-

ing house ‘Intelekti Publishing’, with the support of the UN Resident Coordinator Office in Georgia. The events were attended by Sabine Machl, UN Resident Coordinator in Georgia, Lela Bakradze, Head of the UNFPA Georgia Country Office, Malkhaz Toria, Governor of Samegrelo-Zemo Svaneti and Zviad Kvaratskhelia, writer and Editor-in-Chief of Intelekti Publishing.

As part of the initiative, an Equality Corner was opened in the public school of the village of Koki in Zugdidi Municipality. Opening Equality Corners at schools and libraries in various regions of Georgia is an initiative of the UNFPA which has been implemented together with partner organizations since 2018.

This initiative enables adolescents and youth to learn more about the concept of equality through contemporary literature. The Equality Corner at the Koki

public school, which is the ninth Equality Corner in Georgia, was opened by renowned bestselling writer Nino Haratischwili.

At the Zugdidi Botanical Garden, a meeting was held with Nino Haratischwili, owner of several literary awards and a popular author with both Georgian and non-Georgian readers. The meeting was jointly organized by Intelekti Publishing and the UNFPA. During the meeting, the author, whose works have been translated into many languages, spoke about her work and life, and present-day issues of interest and high relevance.

She also answered readers' questions.

The meeting with Nino Haratischwili was moderated by Gvantsa Jobava, Deputy Chairperson of the Georgian Book Publishers and Distributors Association.

Within the same space, the exhibition “Girls from the Future” by photographer

Dina Oganova was organized. The photo project, through photos as well as texts, tells the stories of girls aged 10 to 16 living in different cities and villages of Georgia. The project aims at emphasizing to the public that unlocking the full potential of girls, creating equal conditions and an equitable environment for them, and ensuring their access to education and healthcare is crucial for the progress and development of every country; that every girl should enjoy the opportunity to complete their education and make informed decisions about their life and health. The photo project was initiated by the UNFPA Georgia Country Office within the UN Joint Project for Gender Equality and is part of the large-scale advocacy work undertaken by the UNFPA to address harmful practices of early marriages and to respect the reproductive health and rights of adolescents and youth.

CULTURE

GEORGIA TODAY MAY 28 - JUNE 3, 2021

11

Vardzia Rock Complex Receives European Cultural Heritage Award / Europa Nostra Prize

BY KETEVAN SKHIRTLADZE

T

he Vardzia rock complex has been awarded the European Cultural Heritage Award / Europa Nostra Prize, reports the Georgian National Agency for Cultural Heritage Preservation.

The European Cultural Heritage Award / Europe Nostra Prize, funded under the Creative Europe Program, went to the Vardzia Complex Conservation

Program.

The nomination application submitted by Georgia to the European Commission and the organization Europa Nostra was named a winner along with 8 other nominees, who were named as exemplary achievements in the conservation category.

The construction of the Vardzia rock complex was begun in the late 12th century by King George III, and was completed by his daughter, King Tamar. The complex is cultivated along a rock, stretching to a height of 50 meters and a length of about 800 meters.

Source of photo: turebi.ge

Meet the Artist: Painter and Illustrator Nino Chakvetadze

ing to discover new, interesting artists and trends.

HOW HAS THE CORONAVIRUS CHANGED YOUR CREATIVE VISION, THE ART MARKET IN GENERAL, AND YOUR SPECIFIC SALES? The pandemic has affected everybody, and I’m no exception, although my regime has not changed much, since I was already working at home. As for sales, the delay is less felt here too, only the form has changed, with people continuing to buy paintings, but online.

Unfortunately, the fact that galleries and museums are visited by far fewer people is striking.

INTERVIEW BY KETEVAN SKHIRTLADZE

Auction to introduce its readers to a variety of both established and up-andcoming artists, we went to meet Nino Chakvetadze to find out more.

N

HOW WOULD YOU DESCRIBE YOUR WORK? WHICH COMMON TRENDS IN ART OR IMPORTANT ARTISTS THEMSELVES IMPACT YOUR WORK?

ino is a painter and illustrator born in 1971 in Tbilisi. She studied at the Iakob Nikoladze Art School, and at the Tbilisi State Academy of Arts in the Department of Painting. She’s also a delightful children's book illustrator and has participated in various exhibitions. She opened her own gallery in Tbilisi six years ago.

As part of our ongoing “Meet the Artist/Designer” series of interviews, which GEORGIA TODAY runs jointly with BI

I think art is eternal, and as long as humanity exists, art will exist as well.

Just the forms are changing.

WHAT IS YOUR OPINION OF THE VIRTUAL ART SPACE, EXHIBITIONS, AND SALES?

a larger audience and also to be able to sell more of their works.

WHAT DO YOU THINK ABOUT BI AUCTION AND ITS ROLE IN ARTISTS’ LIVES, BASED ON YOUR EXPERIENCE? I think BI Auction has a positive role to play in the lives of artists, and their support gives more stimulus to artists.

Of course, actually visiting a museum or gallery has a completely different meaning, but I also welcome the virtual form, as, in this way, it is possible to get more information. Also, artists have more opportunities to present their works to

The themes of my works are mainly dedicated to the lives of children and the elderly, and most of the paintings have a nostalgic nature, in which any person can find moments of their lives.

I think I have found my own style; however, the process of searching is always with me, and it is always interest-

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IN YOUR OPINION, WITH THE PANDEMIC SHIFTING THE WORLD TO A MORE DIGITAL FORMAT, WHAT IS THE FUTURE OF ART?

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