Caucasian Business Week #30

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BUSINESS WEEK November 18, 2013 #30

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November 18, 2013, Issue 30

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georgia

Investment Funds to be Supervised by the National Bank

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nvestment funds will be supervised by the NBG, however, it will be a temporary process and the National Bank will have a regulatory function only for a few months.

Pg. 5

Creditors Agreed on Strategy of Actions to Save “Goodwill”

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oodwill” creditors have agreed on the strategy of actions for the company’s salvation.

CBW reports that the enlarged meeting of the creditors was held in “Bagrationi 1882”. Pg. 6

10 GEORGIAN COMPANIES TAKE PART IN HONG KONG WINE EXHIBITION

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eorgian Ministry of Agriculture reported that 10 Georgian companies take part in Hong Kong International Wine & Spirits Fair 2013.

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CHAIRMAN OF SILK ROAD GROUP SUPERVISORY BOARD: WORKING ON ALL PROJECTS RESUMED

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hairman of Silk Road Group supervisory board Giorgi Ramishvili declared that after 1-year time-out working on all projects is resumed.

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Money transfers increased in October

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n October amount of the money transfers made in the country increased in comparison with previous month, also in the annual expression.

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Azerbaijan EBRD forecasts 3.5 percent growth in Azerbaijan’s economy

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zerbaijan’s economy is expected to grow by 4.5 percent in 2013, and show slightly more moderate growth in 2014.

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Armenia Export from Armenia increased

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Fitch

May Lower Rating to Georgian Railway

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ating agency Fitch Ratings affirmed long-term rating of Georgian Railway on “BB-” level, although changed the outlook to Negative to Stable. In the press release the Rating Agency explained that deterioration of the rating is driven by deterioration of the company’s credit metrics and agency’s vision that Georgian state’s support for the company has weakened.

“Fitch continues to view GR’s standalone rating

as commensurate with a ‘BB-’ rating and the ratings continue to be based on the expectation that GR will maintain its monopoly status and liberal tariff setting policy, along with its dominant regional market share in the provision of freight transportation services. The company’s small size compared with many other railways is a limiting factor as is its reliance on the transportation of transit volumes by a single transit route which heightens event risk.” - states the press release.

EBRD FORECASTS ECONOMIC GROWTH IN GEORGIA TO MAKE UP 2% THIS YEAR

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BRD published updated forecast today, saying that economic growth in Georgia will make up 2% this year, while next year – 4%.

According to EBRD forecast of May of the year, these rates made up respectively 3% and 5%. EBRD stresses that Georgia’s economic growth slowed down due to lower public and private investment and policy uncertainty, related to the post-election political transition and the

presidential elections.

Under-spending of the capital budget by the government and contraction of private investments have contributed to a recession in construction and a marked slowdown in the industrial sector, EBRD pointed, noting however that growth is observed in agriculture and trade, after Russia started to re-open access of Georgian products to its market.

cis Press says Ukraine torn between EU and Russia

WORLD NEWS Going With the Flow

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fter decades of efforts by environmental groups and others to decommission dams, stating that they destroyed ecosystems and uprooted communities, today hydropower has a promising future as a source of green energy.

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Pg. 3

Itzik Moshe: The Government should Encourage Foreign Investment in Tourism Pg. 6 Government Writes off Fines from over 40 Companies Pg. 6

Batumi Seaport CEO Involved in Kazakh Oil Scanda

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Sarah Williamson: Time for a free trade deal with Georgia

Business Ombudsman to Have Direct Pg. 3 Access to Basisbank Marks 20th Anniversary Confidential Pg. 4 with Various Innovations Information of Taxpayers

he total volumes of the export from the Republic of Armenia have increased during the months of January-September by 14%. Pg. 11

ewspapers believe Ukraine is playing for high stakes with Russia and the EU, after MPs failed to agree on a bill that would allow jailed opposition leader Yulia Tymoshenko to leave the country.

Pg. 12

Kakha Kaladze: Citizens Save 60 million GEL thanks to Tariff Reduction Pg. 8

Pg. 6

RMG Purchases 30 Pg. 5 Volvo Trucks

New Year Discount at the Special Issue for the 31st of December Congratulate the Coming New Year to Diplomatic and Business Establishment

Pg. 5

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main events caucasian business week

New Georgian president ponders going to Sochi Olympics

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he newly elected president of Georgia is considering showing up at the winter Olympics in Sochi, despite his country’s strained relationship with Russia.

A few days ago, president-elect Giorgi Margvelashvili said in an interview with Russia’s Channel One that he might go to Sochi to support Georgian athletes during the Olympics.

His statement was criticized by the government’s opponents. The outgoing president, Mikheil Saakashvili, vowed to boycott the Sochi Games, but the decision was reversed when the coalition that Margvelashvili belongs to, Georgian Dream, headed by the billionaire Bidzina Ivanishvili, was

swept to power in the election a year ago on a promise to mend ties with Russia.

Sochi lies only half an hour’s drive from Abkhazia, a region that broke loose from Georgia in the early 1990s and has maintained its own unrecognized government with the help of Moscow.

Georgia still has to deal with more than two hundred thousand internally displaced people from a mass exodus in the wake of the Abkhazian war in 1993, people who the United Nations has said must be allowed to return.

Georgia fought a brief war with Russia in 2008 over another breakaway region, South Ossetia, where tensions have been rising since summer as Russian border guards have put up razor wire and fences along the cease-fire line, claiming it as a permanent border.

Political debate in Tbilisi has centered on how to send a clear signal to the Kremlin that the borderization is unacceptable, while not derailing the process to open the vast Russian market for Georgian exports that were cut off in 2006 due to an embargo on wine and mineral water.

Vano Machavariani, advisor for Margvelashvili in foreign affair issues, told journalists that the issue of whether the new president will attend the Olympics must follow certain procedures. First of all, Margvelashvili must receive an invitation.

“There is a discussion about the Sochi Olympics and we don’t want to make decisions fast. It is a difficult situation. We will foresee everyone’s position, including people’s opinion,” he said.

November 18, 2013 #30

NEXT YEAR’S ASSIGNMENTS OF AGRICULTURE MINISTRY TO GROW BY 20%

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raft state budget-2014 envisages allocation of 290 million lari to Agriculture Ministry. This volume exceeds respective showing of 2013 by 49 million lari (i.e. by 20%). The mentioned allocation includes 130.4 million lari for amelioration systems’ arrangement (exceeds respective volume of 2013 by 66 million lari, i.e. 1.97 times).

Preferential agrolending program will be funded by 68.8 million lari. The Finance Ministry does not provide allocations of 2013 to compare.

Leasing of farming machinery and payment of loans are planned for the next year, being funded with 25.1 million lari.

Besides, 6.8 million lari is envisaged for research activities in agriculture sector, while 5 million lari – for promotion of Georgian wine.

USAID TO SUPPORT WORKING OUT A MODEL OF HYDROPOWER MARKET

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nergy Ministry presented hydropower and energy planning project (HPEP). HPEP is USAID’s next project after Hydropower Investment Promotion Project (HIPP).

With assistance of USAID, model of hydropower market should be developed by the end of 2014, while stage-by-stage implementation of the model is planned to start in 2015.

Deputy Energy Minister Mariam Valishvili told Sarke that the strategy puts the accent on invest-

ments’ attraction, market modernization and liberalization and promotion of cross-border trade.

In order to enhance energy security, we need diversified suppliers and well-mastered local resources that are water resources in case of Georgia, Valishvili said.

GEORGIA AND POLAND SIGNED COOPERATION AGREEMENTS IN Georgia to Initiate Association TRANSPORT SECTOR eorgian Ministry of Economy and Today, Polish delegation visited Tetritskaro district, Agreement Sustainable Development reported aiming to become acquainted with ongoing process

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eorgia’s Association Agreement with the EU will be initiated by Deputy Foreign Minister Davit Zalkaliani during the Eastern Partnership summit in Vilnius November 28-29. Foreign Minister Maya Panjikidze said this on Monday. The text of the agreement, she said, is 1 000 pages and each page must be signed. The process will last about three hours.

There will be a five-member delegation from Georgia, but only Zalkaliani’s name is known. It is not yet decided who will be the rest four.

Panjikidze said there were many people participating in the process of negotiations wishing to be in the delegation.

“An Association Agreement is a huge document.

I don’t think that anyone will read it except experts and people engaged in the process. That’s why we agreed with the EU to prepare a shorter version and translate it into Georgian which will be accessible for the wider society,” she said.

The Georgian delegation will be headed by Giorgi Margvelashvili, who will be inaugurated less than two weeks before the summit.

Government Forecasts 5% Economic Growth in 2014

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raft state budget-2014 envisages that rate of economic growth will make up 5%, while inflation – 3.5%. Moreover, while presenting the draft in the Parliament yesterday, Finance Minister Nodar Khaduri stressed that the World Bank considers economic growth rate to reach in the next year at least 6%.

According to the draft, tax revenues of consolidated budget should amount to 7.38 billion lari in 2014.

At that, grants make up 130 million lari, other revenues – 300 million lari, proceeds from privatization – 80 million lari, while return of past

years’ loans – 70 million lari.

Emission of securities of 400 million lari is planned. Besides, current year’s untapped balance of 350 million lari will pass into budget2014.

As Khaduri declared, the government is going to pay foreign and domestic debts of more than 840 million lari in next year.

Priorities of next year’s budget are healthcare, education and agriculture. In particular, assignments of Labor, Healthcare and Social Protection Ministry are planned at 2.7 billion lari, including 1.3 billion lari for pension provision, 575 million lari for social assistance, 300.8 billion lari for universal healthcare program and 18.8 million lari for medical facilities’ rehabilitation and equipping.

Khaduri pointed that basic parameters of draft budget-2014 will be finally agreed with the Parliament, as well as with IMF mission, which is already arrived in Tbilisi. The government will submit revised and agreed draft to the Parliament on November 30.

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that Polish delegation arrived to Georgia, being headed by Transport, Construction and Maritime Economy Minister Slawomir Nowak.

Within the visit, agreements on motor traffic between Georgia and Poland and maritime transport were signed yesterday.

of Baku-Tbilisi-Kars railway construction.

Representatives of Polish railway infrastructure companies Tines SA and Pesa SA hold meetings with JSC Georgian Railway and LLC MarabdaKartsakhi Railway (being in charge for construction of Georgian section of the mentioned railway).

REPRESENTATIVES OF PARTNERSHIP FUND TO HOLD NEGOTIATIONS IN KAZAKHSTAN

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elegation of Georgian Partnership Fund has paid working visit to Kazakhstan, where meetings with representatives of official and business circles, including Kazakh Investment Fund. The visit will last until the end of the week.

To remind, the Partnership Fund jointly with Kazakh investors implements construction of 5-star

hotel complex Rixos in Likani resort (Borjomi district, Kvemo Kartli region). According to the Fund, total cost of the project makes up currently $40 million.

Answering Sarke’s question regarding recently announced possible increase of investment by $15 million, the Fund said that comment on the subject will be made after completion of the visit.

REPRESENTATIVES OF 25 COUNTRIES STUDY GEORGIA’S INVESTMENT POTENTIAL WITHIN EASY-INVEST

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nvestment conference and business-forum Easy-Invest was launched today in Tbilisi exhibition center ExpoGeorgia. Representatives of 25 countries attend the event, organized by Georgian Chamber of Commerce and Industry.

Among participants of the forum are companies, engaged in agriculture, tourism, information technologies, textile, alternative energy, transport

and logistics, construction.

Easy-Invest is an ongoing project (2010-2013) of the EU’s Eastern Partnership initiative, and is implemented by consortium, led by European Chamber.

The project aims promotion of private sector’s development and trade-investment relations with EU countries in 6 countries of Eastern Partnership.

The Newspaper is Distributed at Tbilisi to Athens Flights of Aegean Airlines

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caucasian The Editorial Board Follows Press Freedom Principles Publisher: LLC Caucasian Business Week - CBW Director: Levan Beglarishvili DISTRIBUTED FREE OF CHARGE Editor-in-chief: Evgeni Mikeladze Mobile phone: 591 013936; 577965577 Commercial Department: Irakli Lekvinadze Email: caucasianbusiness@gmail.com

The weekly is distributed to top companies, banks, embassies, state sector, Tbilisi and Batumi hotels, Tbilisi, Batumi and Kutaisi Airports.

The newspaper will also penetrate Azerbaijan in the near future

main topic caucasian business week

November 18, 2013 #30

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Mikheil Saakashvili Praised the Achievements of Georgia in International Rankings

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n the last days of his presidency, Mikheil Saakashvili has published on his page on “ Facebook “ a commentary on the country’s achievements related to improving its position in the international rankings. The reason for this was the statement made by the Russian President Vladimir Putin that Russia managed to improve its position to 92nd place in the ease of doing business ranking. “Putin also promised his country and the world that by 2018 Russia would take the 20th place in this ranking, although most experts believe this plan is ridiculous.

All this I tell because from 2004 to 2013, Georgia has gone a way from 127th to 8th place in the ratings of fight against corruption, simplification of bureaucratic procedures, that is, simplified and facilitated people’s lives.

According to the World Bank, we have become number 1 in the issue of reforms. Georgia is also ranked the first in many issues related to reducing corruption, and on this indicator it is ahead of many developed countries. We became the first developing, but still a poor country, which happened in the top ten, where before there were only developed and rich countries. Now someone will say that I’m bragging, but it’s all based on very critical and serious international studies.

These achievements do not belong only to the President , it is the achievement of the country. We should not give former corrupt officials, who are nostalgic for the ticket to Moscow for 37 rubles, to return the country to the corrupt system in which they feel very well.

Our way lies to the future and not to the past, “ - the now ex –president writes .

AmCham Georgia President Sarah Williamson: Time for a free trade dealmise with Georgia more often than they do in Washington.

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magine a country whose legislative body vigorously debates policy proposals and then comes together to strike compromises for the common good.

Imagine a government that enacts regulatory reforms that encourage long-term growth, expedites the country’s acceptance into trade agreements with the largest markets around, and creates a more equal business environment.

What country comes to mind? For me it’s Georgia, where I’ve lived since 1998 and co-own the country’s largest IT company.

In recent years, few countries can match Georgia’s progress when it comes to strengthening democratic institutions and creating a businessfriendly environment for American investors.

As a steadfast ally of the United States in a strategically important region, whose soldiers have stood shoulder to shoulder with American forces in Iraq and Afghanistan, it’s about time Washington took note of Georgia’s recent accomplishments.

The presidential election held at the end of October was widely hailed by international observers as a successful free and fair election. This is a huge step for a country where stolen elections led to revolution only a decade ago.

A pre-election assessment from the National Democratic Institute found that Georgians now “enjoy an electoral environment shaped by the fundamentals of democracy: the first peaceful transfer of power through the ballot box; a credible political opposition; a parliament characterized by meaningful debate and decisions; an increasingly independent judiciary; and a lively media environment.”

The presidential election marked another watershed moment as Prime Minister Bidzina Ivanishvili and President Mikheil Saakashvili, both of whom deserve credit for where Georgia is today, will leave government in the next month. Georgia is now entering a more vibrant era of governance where democratic institutions trump individual personalities.

President-elect Giorgi Margvelashvili and Prime Minister-designate Irakli Gharibashvili represent Georgia’s new political class who can work across party lines and are focused on an aggressive reform agenda.

Over the past year, Georgia has made tremendous progress in strengthening democratic institutions.

For the first time, the Parliament functions as a true legislative body with a significant majority and a strong opposition. Committees hold open debates and engage in negotiation and compro-

Among rule of law experts, there is near unanimous agreement that the judiciary is much more independent than it was a year ago. In a dramatic break from the past, judges are now ruling against prosecutors in many cases, and defendants are acquitted due to a lack of evidence or procedural violations. While we take these things for granted in the West, these are remarkable developments when one considers how Georgian courts functioned just over a year ago.

While the strengthening of democratic institutions bodes well for the future, Georgia’s transition to a full democracy needs continued support from the West. A successful presidential election and the appointment of a new prime minister carried out in accordance with the Constitution provide the U.S. with its greatest opportunity in recent years to help the Georgian people realize their ambition of integrating into the Euro-Atlantic community.

Along with strengthening democratic institutions, Georgia has initiated reforms to improve the business environment and further integration into the global economy.

The new government regularly consults a broad base of stakeholders, including business associations and civil society organizations, on legislation impacting the business community.

Over the past year, the government has introduced customs clearance zones and undertaken balanced reforms, while strengthening legal institutions relevant to business regulation.

The impact of these reforms is just starting to be felt. Recent estimates from the World Bank predict Georgia’s economy will grow by 5-6 percent next year.

Georgia is now poised to ink a Deep and Comprehensive Free Trade Agreement (DCFTA) as part of its EU Association Agreement that will be enacted later this month. The EU forecasts that the DCFTA will eventually increase Georgia’s exports to the EU by 12 percent and imports from the EU by 7-8 percent. Full implementation of trade-related reforms could increase Georgia’s long-term GDP by more than 4 percent.

Two years ago, President Obama announced that the US would begin discussing a free trade agreement with Georgia. Since Georgia has met the EU DCFTA requirements, which are considered as demanding as U.S. requirements, it’s time both countries move forward in earnest on this mutually beneficial initiative.

The strengthening of democratic institutions, combined with pro-business economic policies aimed at unlocking Georgia’s growth potential, drives my optimism about Georgia’s future. In a region of the world that is trending away from democracy and free markets, Georgia provides a unique success story that U.S. policymakers should embrace by extending opportunities for greater Euro-Atlantic integration.

Sarah Williamson is the President of the American Chamber of Commerce in Georgia and CoOwner of United Global Technologies [UGT], the largest IT company in Georgia. thehill.com/

EBRD FORECASTS ECONOMIC GROWTH IN GEORGIA TO MAKE UP 2% THIS YEAR

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eorgia’s economic growth slowed considerably due to lower public and private investment and policy uncertainty related to the postelection political transition and the presidential elections. Under-spending of the capital budget by the government and contraction of private investments have contributed to

a recession in construction and a marked slowdown in the industrial sector. Agriculture and trade have been buoyant, after Russia started to re-open access of Georgian foodstuffs to its market. Economic growth is expected to accelerate in 2014, provided both the political uncertainty subsides after the presidential elections and the improvement of Russian-Georgian commercial relations continues.

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banking news caucasian business week

November 18, 2013 #30

Basisbank Marks 20th Anniversary with Various Innovations

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asisbank marks the 20th anniversary of the foundation with various innovations. The bank has drawn additional 6 million USD from the Black Sea Trade and Development Bank (BSTDB) to finance the trade development and promote small and medium-sized business sectors. The agreement was signed by Basisbank and BSTDB on November 12. The bank’s management says this agreement is not the first one with BSTDB, as on March 2, 2012 the parties also signed an agreement on allocation of a renewable credit line for financial support of exports and imports. The credit line has been used successfully. A total of 14 trade transactions have been implemented, including the exports marked 30% and the imports constituted 70%.

BSTDB vice president Mustafa Boran noted the project turned out very successful and BSTDB took a decision to allot additional 6 million USD to Basisbank.

“BSTDB prioritizes to finance the trade sector.

The ratio of the trade sector in a total financial package for the region makes up 23%. Financial support to the trade sector is of crucial importance for Georgia too. This will develop the exports. We hope our financial support will improve the situation with employment in Georgia. We believe the

Georgian trade in the Black Sea region will find its niche and will become successful”, Mustafa Boran noted.

BSTDB has been successfully cooperating with Georgian banks and BTSDB may even increase its portfolio in Georgia in the future, he added.

It is worth noting the BSTDB portfolio increased in Georgia by 9% in 2012, while the 2013 growth will make up 6.5% instead of initial forecast of 7.5%.

Besides exports and imports transactions, BSTDB will finance the agribusiness sector, energy projects, processing sector in 2013. BSTDB has been actively cooperating with Basisbank, TBC Bank and KOR Standard Bank. Basisbank director general David Tsanava says Basisbank has been cooperating with BSTDB successfully for many years and this trend will be maintained.

“BSTDB has been our strategic partner. Our cooperation started over a year ago. Thanks to this cooperation we are trying to offer good and successful products to our clients. First of all, I mean the promotion of the companies involved in the exports and imports transactions, especially, the companies operating in the Black Sea Region.

The very successful relations have conditioned the growth in the credit line”, the Basisbank director general noted.

The bank with a 20 year history is one of the

Freight turnover of Batumi Port increased by 13,6% in a year

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anager company of the port informs that in 10 months of the current year turnover of dry freights equaled to 1,485 tons, which exceeds to the data of the same period past year by 178 thousand tons (13,6%). Besides, industrial plan is fulfilled by 100,4%. Leader positions in the port’s turnover take raw sugar (29,63%), bulk freights (28,82%) and ammonium nitrate (18,11%). Overfulfillment of the pan is mentioned in the raw sugar - by 93 thousand tons, liquid freights - by 32 thousand tons (33%), also big-bags - by 19 thousand tons (44%).

Several freight categories are a little behind the

plan - nitrogen fertilizers (-4%), bulk freights (-5%) and wheat (-4%).

During 10 months 2014 loading amount of the following freights have been increased in comparison with the same period last year: Big-bags (675%), raw sugar (4,5%), ammonium nitrate (3,5%), bulk (43,1%), bottling (41,8%).

Transit freights remain on the leader position, which constitutes 39% of the total freight turnover of the port.

Import freights rank second with 36% During 0 months 2013 totally 610 ships have been processed by the port, which is 16 units more in comparison with the data of the same period last year.

successful banks in Georgia. A 90% ratio of the bank is owned by Chinese Hualing Group. Zurab Tsikhistavi, a head for Basisbank supervisory board says the bank has withstood many challenges for many years and the bank has survived among 200 banks in Georgia and it continues successful operation.

“In several days we will mark the 20th anniversary after a group of enthusiasts, a major part of which has graduated Moscow University, founded a commercial bank. In those years over 200 banks used to operate in Georgia. Our history, the past years have shown the miracle happens when people honestly treat their business. Basisbank has survived and advanced among 200 commercial banks. The commencement of cooperation with international institutions was a huge breakthrough for the bank and that process started 10 years ago. In this period we have obtained the Fitch rating. We have launched cooperation with the World Bank (WB), OPIC, EBRD, BSTDB. All these factors have enabled us to meet the client requirements for many years. As a result, Hualing Group has become a huge investor in our bank. We believe thanks to our stakeholders and the management, Basisbank will introduce many new interesting products and occupy its special place in the Georgian economy”, Zurab Tsikh-

istavi noted.

The bank offers many innovations to the mentioned jubilee. Basisbank director general David Tsanava says the bank offers many surprises and more useful and convenient terms on bank products in relation to the 20th anniversary of the bank’s foundation.

Namely, starting November 12 the annualized interest rate on MegoBarati has been lowered to 10% from 15%. MegoBarati has been popular for many years among clients. The card has got useful terms: the card is issued free of charge, payment for public utilities and communications is also free of charge. The cardholder receives free talking time and SMS services.

GeocellVisaCard has been also rebranded. The card is a joint product of Basisbank and Geocell.

“Moreover, this year we have offered a new card of LadyCard, a credit card for successful women.

The card has become popular in a short period thanks to its useful terms: the card has got unprecedented long-term 60-day grace period, exclusive discount of about 50% at over 40 trade outlets and service centers and useful credit terms”, the Basisbank director general says.

The consumer and mortgage loans terms have been also improved, Tsanava said. “Our consumers are able to receive a GEL denominated loan starting from 7.77% interest rate! I would like to note the interest rate of Your Mortgage card is floating and it depends on the National Bank’s refinancing index. The interest rate is calculated in the following way: The National Bank’s refinancing index is added a Basisbank interest rate. The current refinancing rate is 3.75%. The loan’s top amount is 400 000 GEL with a 15 year maturity period and the interest rate starts from 7.77%!”, the bank’s head says.

The Basisbank management says interest rates have fallen on consumer loans too. The lowest interest rate is 12%, while clients with a wages account will receive the loan at fixed 12%. Clients with fivefold wages receive the loan without guarantee for a period of 26 months. The top amount is 20 000 GEL. Clients with tenfold wages use the following terms: guarantee; a maturity period of 36 months and the top amount of 20 000 GEL.

Internet users nominated best news radios

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Palitra, Maestro and Portuna are leaders of Gepra survey rom October 24 to October 26 communication company GEPRA made a survey of the news website users to determine rating of the most listened news radios. Special questionnaire was published on 8 information portals and 8836 persons participated in the survey. According to popularity of radio news program, leader was changed in comparison with previous survey and Radio Palitra ranked first (21,3%), Radio Maestro – second (14,7%), Fortuna (8,9%) remained on the third place, Radio Imedi (8,8%) ranks fourth, Voice of Abkhazia (7%) is still fifth.

In comparison with previous survey, up to 18 years old category was added to the survey, which made certain influence on the demographic and income picture of the respondent. Number of the survey participants according to age looks like following: up to 18 years – 5,4%, 18-24 – 18,7%, 25-32 – 26,5%, 33-45 – 23%, 46-55 – 16,1%, 5664 – 6,7%, over 65 – 3,6%.

69,6% of the respondents are employed, 11,7% are students, 5,7% - housewives, 3,2% - pensioners, 10,3% - unemployed. Monthly income of the majority of respondents is up to 500 GEL, 25,5% - up to 1000 GEL, 16,3% has income from 1000 to 2000 GEL and 15,6% - over 2000 GEL. In comparison with previous survey, Radio Commersant improved rating, which, despite the fact that it’s business-niche radio, closely approached to the top-5 list of general profile radios, rating of Public Radio and Green Wave has also increased.

Number of the respondents who indicated Other Radio instead of provided list has also declined

(only 19,9% of the respondents). It’s interesting that 61.7% of the GEPRA online-survey participants are male.

«We are satisfied with the results of second internet-survey. Users of informational websites actively participated in int. Improvement of methodology and questionnaire enabled us to get more refined information, on the basis of which we plan to carry out full-scale project in February. We want survey results to be more transparent and become immediately available for each respondent and for all users of the websites», - senior consultant of GEPRA Soso Galumashvili states. «On the first stage of the survey we said that it would not have claim on high quality of representation and would not replace classical sociological survey.

Although, reduction of the error in the survey results became possible through research scale and increase of the number of repeated researches.

Online surveys become increasingly more popular in the world; they are used to study consumer behaviors and get feedback on their expectations.

Internet penetration in Georgia and respectively, increased number of the internet-users gives the best base to hold cheaper and larger-scale research. We have a great desire to adjust research methodology with radio-stations and web-portals after the pilot survey, eradicate all obstacles and make a syndicated research», - GEPRA states.

November 18, 2013 #30

business

caucasian business week

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Gudauri and Bakuriani Resorts Business Ombudsman to Have may Receive Holiday Makers in Direct Access to Confidential Early December Information of Taxpayers The majority of rooms are reserved for New Year Holidays

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ommersant” radio station reports that the popular winter resorts are ready for the season opening . As the head of Gudauri Development Agency informs, cableways passed technical inspection and snow clearance machines are mobilized in the resort.

According to Sandro Onoprishvili, the season opening is scheduled for December 15, but he does not exclude that in the case of rainfall, they will receive the first holiday makers since early December. Onoprishvili notes that 80% of rooms in the hotels are reserved from December 25 until January 1. The Agency expects an unprecedented

flow of visitors this season.

Bakuriani resort also plans to open a winter season on December 15. According to Bakuriani Tourist Information Centre, if the snow comes, the resort might take vacationers in early December. They also say that most rooms are already booked for the New Year in Bakuriani. This year Armenian and Azerbaijani tourists are especially active. Mestia plans to receive tourists from December as well. It is scheduled to open the season at the end of December, although the majority of rooms in hotels are already booked for the New Year. It is reported that Mestia will meet the winter season with an unchanged infrastructure.

BOSCH REPRESENTATIVE IN CIS AND GEORGIA: THE COMPANY HAS QUITE SIGNIFICANT GROWTH IN GEORGIA

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erhard Pfeifer, Bosch representative in CIS and Georgia, declared that despite economic slowdown, the company has quite significant growth in Georgia. However, he refrained to forecast results of this year, noting that annual report will be

published in next May. Pfeifer reported that in 2012, the company’s turnover in South Caucasus totaled to 16 million EUR, including Georgia’s share of 9 million EUR. Sales in Georgia increased by 18% yearon-year, while combined growth in CIS countries made up 10-15%, he marked.

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hy does a business ombudsman need to have a direct access to confidential information of taxpayers?

It became known that according to changes in the tax code, a tax ombudsman and his deputy will be added to the circle of subjects who are allowed to have an access to confidential information of taxpayers. The Ombudsman’s Office makes explanations regarding changes in a conversation with “Commersant”.

It appears that access to secret information was initiated by the Ombudsman’s Office in order to support the Office’s activities. According to the Tax Code, the ombudsman will review applications and appeals relating to the facts of violation of tax payers rights by tax and other state authorities. Giorgi Gakharia ‘s Office states that the Ombudsman should have the right to obtain the explanations from Tax Service.

Investment Funds to be Supervised by the National Bank

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nvestment funds will be supervised by the National Bank of Georgia [NBG], however, it will be a temporary process and the National Bank will have a regulatory function only for a few months.

A legislative initiative proposed by the MP David Onoprishvili, amendments to the law on “Investment Funds” which are already discussed at the committee hearings will define the authority supervising the activity of investment funds by establishing provisional regulation.

According to the bill, until March 1, 2014 , the National Bank of Georgia will carry out the powers of the supervisory authority of investment funds.

RMG Purchases 30 Volvo Trucks

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business & economy caucasian business week

Government Writes off Fines from over 40 Companies

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tate wrote off penalties for more than 40 companies for non-compliance of their contractual obligations - the decision was accepted by the Commission to study agreements related to the disposal of state property.

According to the Chairman of the Commission, Deputy Economy Minister Dmitry Kumsiashvili, now investors are exempt from fines in the amount of 2.8 million GEL “There are also companies which debts have been written offprovisionally - in general it is about 10 million GEL. This will give companies the opportunity to direct their available funds for the resumption of projects that were stopped, “ – says the Deputy Minister.

According to the Deputy Minister, the purpose of this decision is just to stimulate the activation of investors.

Commission to study contracts signed for the purpose of disposal of state property was established by Georgian Economy Minister Giorgi Kvirikashvili . It includes representatives of the Ministries of Economy, Finance, Infrastructure, Justice, Interior and the Agency for State Property Management.

The Commission considers the cases in which the penalties are not less than 100 thousand GEL.

Badagoni and Tbilvino Show Content with Return to Russian Market

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fter the access into the Russian market, a wine company “Badagoni” plans to double production.According to the company’s Director, after the access into the Russian market, the interest of tourists has increased dramatically.

From July “Badagoni” has sent one million bottles to the Russian market and plans to deliver another half a million by the end of the year. Gia

Shengelia says that next year the company is going to deliver 2.5 million bottles of wine to Russia.

“Tbilvino” also assesses the return to the Russian market as successful. According to the company’sCEO, half a million bottles have been exported since the opening of the market and by the end of the year this figure will increase by 100 thousand. Next year, “Tbilvino” intends to export one million 700thousand bottles to Russia.

November 18, 2013 #30

Georgian- Israeli Chamber of Commerce: The Government should Encourage Foreign Investment in Tourism

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he Head of the Georgian - Israeli Chamber of Commerce Itzik Moshe expressed the hope that the economic policy of the new Prime Minister will attract investment and maximally use a potential of the tourism industry in the country. “The Chamber has been engaged in the deepening of economic relations between the two countries for many years and is optimistic about the future. Jerusalem may become an example for Georgia where the government encourages more foreign investment in tourism than the local “- Moshe said. According to him, the Co-investment Fund’s activity will have a great importance for the attraction of investment, including Israeli, in particular, at the end of the year Israeli investors are going to offer the Fund to consider a number of major projects.

Living wage increased by 1 GEL in a month

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eostat informs that in October living wage for a man, capable for working equaled to 148,7 GEL, this data equaled to 147,7 GEL in September. According to official statistics, living wage of October 2013 is 2,9 GEL less than the data of analogic period last year.

It’s noteworthy that in October, living wage of average consumer equaled to 131,7 GEL (130,8 GEL in September), average family - 249,4 GEL

(247,8 GEL in September).

According to statistics, living wage of 1-person family equals to 131,7 GEL, 2-person family - 210,7 GEL, 3-person families - 237 GEL, 4-person families - 263,4 GEL, 5-person families - 296,3 GEL, families with 6 and more members - 350 GEL. It’s noteworthy that in the current year highest amount of the living minimum was mentioned in January - it equaled to 150,7 GEL.

Batumi Seaport CEO Involved in Kazakh Oil Scanda

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EO of Batumi Sea Port “Batumi Industrial Holdings” Talgat Baitaziev was one of the central figures in the oil scandal in Kazakhstan.

The scandal began when the head of one of the country’s regions was declared wanted on charges of forming a criminal group of 35 people, which caused damage to the state in the amount of 71 billion tenge. Kazakh media (Taszhargan.info) pays attention to the connection of a criminal group with Director of the Batumi port, which is owned by “Kaztransoil”.

In particular, the media reports that Talgat Baitaziev was Director of the refinery in Atyrau where the abovementioned group operated and that CEO of the Batumi port was very rarely seen in Batumi.

According to Taszhargan.info journalist Denis

Karamanov , the criminal group created firms for money laundering and the traces of these activities lead just to Baytazaev.

“Now Baytazaev hardly appears in Georgia and holes up in Cyprus, where one of his offices is located. In Batumi, he appears 2-3 times a year, “- the journalist writes .

The Prosecutor’s Office of Kazakhstan has also found evidence of illegal sale of oil by Petroline company, which was associated with this group.

The investigation found that across the country in total 33 000 tons remained unaccounted and 168 000 tons have been exported uncounted.

It should also be noted that the claims of the Prosecutor’s Office of Kazakhstan are not related to the activities of the Batumi port and related to a period when Talgat Baytazitev was Director of the oilrefinery in Atyrau

Creditors Agreed on Strategy of Actions to Save “Goodwill”

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oodwill” creditors have agreed on the strategy of actions for the company’s salvation. “Commersant “ reports that the enlarged meeting of the creditors was held in “Bagrationi 1882” where an action plan was prepared and the relations between the creditors were defined. Although “ Bagrationi” does not specifically talk about the action plan.

According to “Commersant”, importers of “TBC Bank” Supervisory Board Chairman Mamuka Khazaradze attending the meeting strictly required to provide an effective assistance to “Goodwill “ .

The meeting was attended by 34 business companies, including Marneuli food plant, Telavi Marani, Badagoni Tbilvino, Coca - Cola, Teliani Trading, Sante and GD-alco.

Recall that “Goodwill” company announced about a difficult financial situation a few months ago. Management states that under the previous government “Goodwill” was forced to unreasonably spend 30 million which is reflected in the company’s financial position.

At the request of the company’s management, the case on the solvency of the company is currently being discussed in a court, but that does not mean that the company is closed.

Variations of Latte Tea

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ecently, latte tea has appeared in Tbilisi. It’s made from milk, Indian herbs and condiments.

The latte tea is mainly targeted at the average segment. A small cup costs 5.90 Lari, while a large one is 9.50. So far the product is available at Public Coffee, and it’s unknown whether or not it’ll start selling elsewhere. The barman of the aforementioned establishment, Dito Metreveli, says that the latte tea is imported from Germany and comes in different types.

These types are as follows: “The Tiger”, which has a distinct cinnamon flavor; “The Turtle”, with a green vanilla aroma and a light taste; “The Elephant”, with a black vanilla aroma and a slightly stronger taste than The Turtle. There’s also “The Mango”, which tastes and smells like the fruit it’s named after; “The Flamingo”, a mix of vanilla and exotic aromas; And “The Dolphin,” which contains Asian condiments and has the aroma and taste of black tea.

As they themselves say, the product has a calming effect and it’s possible to be taken with a mixture of coffee as well.

“So far we’re only oriented on our own customers and thus we haven’t had large support campaigns, nor have we placed the product at a festival of any sort. As for future plans, we’ll probably open up one more subsidiary, and our product range will also grow in accordance to what is offered to us by the production companies.”

November 18, 2013 #30

business

caucasian business week

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Three Students, 34 Trained in Various Subjects and 52 Students of Vocational Schools

Natakhtari Foundation Publishes Results for Six Months

Achieved Results As part of the Care for Future project of the Natakhtari Foundation aimed at caring for orphan cadolescents in Georgia and promoting their independent life, offering services required for their support and various working skills after the state service. A special services and assistance package has been implemented for 150 adolescents of small family houses and orphan adolescents at big institutions. The project is being implemented by the association of Our House – Georgia, a partner nongovernmental organization to the Natakhtari Foundation.

Unlike previous years, 15 year old adolescents were also involved in the project starting April 2013. Before, the project’s target group was 16 to 18 year old adolescents under the state care.

Along with the growth in number of children, the quantity of team of psychologists has also increased so as the beneficiaries could receive high-quality services. At this stage, 10 psychologists serve 150 adolescents all over Georgia.

We have reached considerable results in six months. To make the picture clearer, we will talk about only quantitative results. A total of 34 students were trained in various school subjects, while 52 adolescents gained working skills at vocational schools. The probation practice was also actualized and six participants passed the probation period with the perspectives for employment.

Financial needs for sports section were covered for 5 beneficiaries, while driving licenses were financed for 8 adolescents. We have purchased text books and tools for strengthening professional skills for 15 beneficiaries, while the adolescents, who have left small family houses and remain without the support network, receive the follow-

ing services under the project: fees for apartment, food and gas. They also master various professions. There are six similar students in the project. Three adolescents have successfully passed university exams and they have become students.

The government finances their studies, while the foundation replenishes all financial differences.

At this stage, we pay fee for studies to one student, Lela Merabishvili, one of the managers of the project and a representative of the association of Our House – Georgia says and adds all activities as part of the project are being implemented purposefully and stage by stage. We act in behalf of each adolescent, she added.

Small History The initiative of Natakhtari company for caring orphan adolescents was highly appreciated from the very beginning, because any citizen could make contribution to this kind project. To this end the company has set up Natakhtari Foundation and launched the implementation of the Care for Future project jointly with the Association of Our House – Georgia.

As part of the charitable campaign, 0.01, 0.03 or 0.05 GEL were transferred from each sold Natakhatri lemonade bottle to the Foundation due to a container volume: 0.5 liter, 1 liter and 2 liters.

At the first and second stages of the project, over 250 000 GEL were collected in this way (2011 to 2012 and 2012 to 2013).

Initially, Natakhtari Foundation started caring for 16 to 18 year old children, while today 15 year old children are also involved in the project. We welcome similar changes - over 18 years project participants leave the family houses and they need support at this important stage of the life so as they easily be integrated in the society.

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business & economy caucasian business week

Kakha Kaladze: Citizens Save 60 million GEL thanks to Tariff Reduction Ministry of Energy summarized 1 year work in the report

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nergy Minister Kakha Kaladze declared that the country’s population saved more than 60 million lari through reduction of consumer tariffs on electricity and natural gas.

The Minister declared this, while presenting oneyear report within “Open Government” event today. To remind, consumer tariff on electricity decreased on January 1 by 3.54 tetri (i.e. approximately by 20%). On March 1, consumer tariff on natural gas reduced by 5 tetri (i.e. by 10%).

Energy Minister Kakha Kaladze declared that work on models of Georgia’s electricity market and electricity trade will be completed by the end of 2014. Implementation of these models will be gradually launched from 2015, he pointed.

Kaladze noted that SWOT analysis of the branch has been already conducted, acting as basis for a new strategy document.

Taking into consideration new realities and necessities, market’s modernization will promote development of private sector in hydroenergetics, facilitate cross-border trade and improvement of mechanism for investment risk reduction, Kaladze declared.

Energy Minister Kakha Kaladze reported that negotiations regarding KhudonHES project are underway and significant steps to be made in near future. At that, the Minister refraining to specify, what steps does he mean.

While presenting a 1-year report on the “Open Government” event today, Kaladze said that the previous government illegally seized land of 1,500 ha from local population, so first task of

the new government is achievement of investor’s consent to undertake liability on returning this land to its owners.

Land’s ownership will be registered to population, while then these sites will be assessed and compensated in compliance with the World Bank’s standards, Kaladze pointed.

To remind, construction of KhudonHES is planned in mountainous Svaneti region. Estimated cost of this hydroelectric plant with installed capacity of 702 MW makes up $776 million. TransElectrica Limited plans to implement construction.

Energy Minister Kakha Kaladze declared that terms of KintrishaHES construction were extended for Hydro Development Company. Due to that, daily fines system was applied to the company instead of seizure of bank guarantee, he said.

According to the Ministry, the company had to get permission for construction of this hydroelectric station in Ajara in March 2012, while its putting in operation was planned in September 2014.

Now, the Ministry told Sarke that construction of KintrishaHES will start in next April, while launch of the station is planned for October 2016.

Installed capacity of the station will make up 5 MW, while its construction is expected to cost $8 million.

Energy Ministry reported that 4 hydroelectric stations will be launched by the end of the year.

These stations are BakhviHES-3 (installed capacity – 9.8 MW), LarsiHES (19 MW), AragviHES (8 MW) and AkhmetaHES (8 MW).

According to the Ministry, total annual output will amount to 250 million KWh, while total investment cost makes up $45 million.

To remind, ShildaHES and KhadoriHES-2 with total capacity of 10 MW were already launched in Kakheti region this year.

Energy Minister Kakha Kaladze declared that volume of investments in oil extraction sector will reach $70 million by the end of 2013. As of June, $44 million was invested in drilling works, he pointed. To compare, according to Georgian Oil and Gas Agency’s data of 2012, companies, operating on license blocks, have invested $68.4 million. The Minister reported that currently, 12 companies are engaged in drilling works on 25 license blocks. At that, oil extraction in 9 months totaled to 36,278 t.

45 COMPANIES PARTICIPATE IN ELCOM CAUCASUS 2013

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lCom Caucasus 2013, international exhibition of energy, electrotechnology, telecom and IT industry, was opened in Tbilisi today. In the event, which will last until November 14, take part 45 companies. Georgia’s Energy Minister Kakha Kaladze declared that besides companies, which

already operate in Georgia, regional companies are exhibited as well, showing keen interest to investments in Georgia and to participation in tenders.

Topics of the exhibition are energy industry, machinery and equipment, automated control systems, energy saving technology, software and environmental safety.

Agriculture Cooperatives to Receive Status in DecembeR

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griculture Ministry reported that status assignment to agricultural cooperatives will start in December this year.

Status assignment will be duty of newly created Agricultural Cooperatives Devel-

opment Agency, which presentation was held in Tbilisi exhibition center ExpoGeorgia today.

The Agency is established as legal entity of public law, being in charge for status assignment and cancelation to cooperatives, as well as for monitoring and implementation of the state programs.

OIL AND GAS CORPORATION TO HOLD MEETINGS WITH INVESTORS IN LONDON AND NEW YORK

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eorgian Oil and Gas Corporation informed that its management will visit London and New York on November 18-22.

The visit targets holding meetings with holders of the Corporation’s bills and

introduction of recent events and news to them, the Corporation noted. The meetings will be held with assistance of JPMorgan.

To remind, state-owned Georgian Oil and Gas Corporation has placed Eurobonds of $250 million on London Stock Exchange in 2012.

November 18, 2013 #30

WORLD BANK REPRESENTATIVES ACQUAINT WITH REFORMS IN GEORGIAN AGRICULTURE

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eorgian Agriculture Ministry informed that the Minister Shalva Pipia met representatives of World Bank today. The sides discussed completed and planned projects, including assistance for land-poor farmers in

terms of spring works, preferential agrolending, rehabilitation of irrigation and drainage channels as well as export strategy of the government.

The Ministry pointed that representatives of World Bank became especially interested in issue of agricultural cooperatives.

GEORGIAN RAILWAY ANNOUNCED PAYMENT OF 3M LARI AS DIVIDENDS

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SC Georgian Railway had announced in October about payment of dividends of 3 million lari for the 3rd quarter. In July, the company reported about dividends payment of 18 million lari for the 2nd

quarter.

Georgian Railway pointed that based on increasing cargo flows and company’s operational ac-

tivities, payment of additional dividends may be announced during this year.

Volume of dividends, announced for this year, not to exceed 48.6 million lari (50% of consolidated net profit as of December 31, 2012), the JSC noted.

Single owner of JSC Georgian Railway is Georgian Partnership Fund.

CHAIRMAN OF SILK ROAD GROUP SUPERVISORY BOARD: WORKING ON ALL PROJECTS RESUMED

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hairman of Silk Road Group supervisory board Giorgi Ramishvili declared that after 1-year time-out working on all projects is resumed.

Ramishvili pointed that time-out was caused by changes in the country and following study of the situation.

Currently, negotiations on Trump Tower project are underway with American, European and Russian business groups, Ramishvili told Sarke, refraining to disclose the details. He promised that “Silk Road Group will publicly announce every reached agreement with potential investors”.

To remind, construction of Trump Tower in Batu-

mi was planned to launch in 2013. As Ramishvili said, initially planned investment of $250 million, presumably, will not change.

10 GEORGIAN COMPANIES TAKE PART IN HONG KONG WINE EXHIBITION

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eorgian Ministry of Agriculture reported that 10 Georgian companies take part in Hong Kong International Wine & Spirits Fair 2013. This international wines and spirits exhibition, organized by HKTDC (Hong Kong Trade Development Council), is being held on November 6-9.

Among these Georgian companies are Bagrationi-1882, Besini, Chateau Mukhrani, corporation Georgian Wine, GWS, Kakheti Traditional Winemaking, Sarajishvili, Schuchmann Wines Georgia, Tbilgvino and Winery Khareba.

According to the Ministry’s latest data, 781,108 bottles of Georgian wine and brandy are exported in China, at that, 103,399 bottles in Hong Kong.

OPERATING INCOME OF MOBITEL INCREASED BY 11.1% IN Q3

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perating income of LLC Mobitel (Beeline brand) in the 3rd quarter of the year made up 40 million lari. This volume increased by 11.1%, if compared with the 2nd quarter of this year, and by 5.3%, if compared with the same period of 2012.

The company’s total operating income for 9 months of the year made up 109 million lari, increasing by 14.7% year-on-year.

These data are provided in report, published by Russian Vimpelcom (owner of Mobitel’s controlling stake).

Mobitel’s EBITDA (Earnings Before Interest,

Taxes, Depreciation and Amortization) in the 3rd quarter amounted to 14 million lari, increasing by 27.3% both quarter-on-quarter and year-onyear. EBITDA margin made up 33.6% (instead of 31% in the previous quarter and 29.8% – a year ago).

As of October 1, the company has 1.1 million customers, whose number increased by 8.9% quarter-on-quarter and by 11.4% – year-on-year.

ARPU (Average Revenue Per User) made up 11 lari, decreasing by 8.3% year-on-year.

In the reporting period, capital investment amounted to $12 million, increasing 6 times year-on-year.

SLOVAKIAN INVESTORS STUDY INVESTMENTS’ PROSPECTS IN GEORGIA

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epresentatives of J&T Group (investment group of Central Europe, founded in 1993 in Slovakia) are visited Georgia, being invited by Economy and Sustainable Development Ministry. The Ministry informed that Slovakians have already visited Likani and Baku-

riani and are going to visit Kazbegi and Kakheti after visiting Gudauri.

According to Sakstat, Slovakian investments in Georgia made up $3.686 million in 2012, $563,000 in the 1st quarter of this year, while there was negative showing of $200 in the 2nd quarter.

November 18, 2013 #30

Bank of Georgia TO GET LOAN OF $10M FROM CITIGROUP AND OPIC

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ank of Georgia signed an agreement with Citigroup and the US Overseas Private Investment Corporation (OPIC) regarding allocation of $10 million. As Bank of Georgia said, the loan is the first one, being jointly allotted for Georgian microcrediting by Citigroup and OPIC. Terms of the loan are not disclosed. In cooperation with OPIC, Citigroup has allotted $360 million for 40 microfinance institutes in 22 countries as of today. Bank of Georgia is the largest Georgian bank, accounting for 34.7% of total banking assets of Georgia, 34% – of total loans, 31.4% – of total clients’ deposits and 36.6% – of total joint-stock capital.

Bank of Georgia COMPLETED ISSUANCE OF NOTES

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ank of Georgia Holdings, holding company of Bank of Georgia announced today that Sakartvelos Banki has completed next issuance of notes. The matter concerns notes of $150 million with yield of 7.75% and maturity period up to 2017. Payment of coupon yield will be made semi-annually. The notes are listed on the official list of the UK Listing Authority and admitted to trading on the London Stock Exchange’s regulated market. This emission forms a single series with notes, issued in July 2012 ($250 million, yield rate – 7.75%), BGH pointed. The emission was implemented through JP Morgan Securities and Merrill Lynch International.

Bank of Georgia’s director general Irakli Gilauri pointed that initially demand exceeded offer more than three times, while interest was expressed by over 80 investors.

Banking & Insurance NBG’S VICE-PRESIDENT: THERE IS NO DANGER FOR FINANCIAL STABILITY

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ice-president of National Bank of Georgia (NBG) Archil Mestvirishvili assures that there is no danger for financial stability, either in short term or in long term period.

Guarantee of this is NBG, he declares.

Mestvirishvili declared the mentioned at today’s news briefing, while commenting on recent dy-

namics of exchange rate.

To note, exchange rate, being at 1.6715 GEL/ USD at the beginning of this week, increased up to 1.6793 GEL/USD on November 8, and makes up 1.6787 GEL/USD| as of today. Mestvirishvili said that nothing special happens on the market.

Rate’s fluctuations are common, they are characteristic, usual function of the rate, he noted.

Money transfers increased in October

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n October amount of the money transfers made in the country increased in comparison with previous month, also in the annual expression.

National Bank informs that in October $132.5 million or 220.7 million GEL was transferred from abroad to Georgia, which is $16.7 million (28.5 million GEL) or 14.5% more than the data of the same period 2012.

In the previous month $131.843 was transferred from abroad to Georgia. 94.3$ of the transfers made from abroad to Georgia comes on 13 largest donor countries, from there amount of such transfers exceeded to $1 million in October. In October of last year 95.2% of the total money transfers came on these countries.

Traditionally, Russia is a leader of the transfers, on which come over half of the total transfers.

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BC Bank has reported net profit of 48.38 million lari for 9 months of the year. This volume is decreased by 13.2% year-on-year, while increased by 47.4% quarter-on-quarter. As of September 30, the bank’s total assets amounted to 3.66 billion lari, increasing by 1.5% year-on-year. At that, ratio of liquid assets to total assets made up 29.41% against of 28.19% in the same period of previous year.

Net loans made up 2.126 billion lari (year-onyear growth – 0.24%), while loan loss reserves – 206.15 million lari (growth – 49.16%). Ratio of idle loans to total credits made up 11.03% (against of 6.14% a year ago).

Total liabilities amounted to 3.08 billion lari (year-on-year growth – 0.16%).

At that, sum on clients’ current accounts made up 682.17 million lari (growth – 19.3%), demand deposits – 666.67 million lari (growth – 55.9%), while fixed deposits – 1.15 billion lari (decline – 12.1%).

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ank Republic has reported net profit of 18.7 million lari for 9 months of the year. If compared with the same period of previous year, this showing increased by 43.5%.

As of September 30, the bank’s total assets amounted to 890.8 million lari, increasing by 15.4% year-on-year.

Net loans made up 563.49 million lari (growth – 22.4%), while loan loss reserves – 62.3 million lari (decline – 4%). Ratio of idle loans to total loans made up 11.24% (against of 14.37% in the same period of 2012).

Total liabilities amounted to 751.1 million lari, increasing by 14.8% year-on-year.

At that, sum on client’s current accounts made up 243.55 million lari (year-on-year growth – 80.6%), demand deposits – 102.3 million lari (growth – 16.9%), while fixed deposits – 159.96 million lari (decline – 2.3%).

Ratio of sum on client’s current accounts and demand deposits to total assets made up 38.83% (against of 28.82% a year ago).

Return on assets (ROA) made up 2.99% (against of 2.42%), while return on equity (ROE) – 19.06% (against of 16%).

In the reporting period, shareholders’ structure did not changed: Societe Generale (93.64%) and EBRD (6.36%).

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TBC BANK COMPLETED 9 MONTHS WITH NET PROFIT OF 48.38M LARI

REPUBLIC COMPLETED 9 MONTHS WITH NET PROFIT OF 18.7M LARI

INVESTBANK COMPLETED 9 MONTHS WITH LOSS OF 1.88M LARI

36% OF TBC BANK CORPORATE CLIENTS USE INTERNET-BANKING ccording to latest data of TBC Bank, 36% of its corporate clients use internet-banking service. The bank renewed this service for legal entities this year. TBC Bank launched internet banking in 2001. In 2012, the service was renewed, allowing to increase its users’ number 5 times, according to the bank. The bank does not specify exact number of users, however.

TBC Bank declared also that its internet-banking system was named at recently held annual awarding ceremony of Global Finance magazine as “having the world’s best utility payment system”.

Georgian bank won also another nomination – the world’s best integrated web page.

As TBC Bank marked, its internet and mobile banking services have received already 9 international awards.

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caucasian business week

INSURANCE PREMIUM OF GPIH MADE UP 39.6M LARI IN Q2

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tate Service for Insurance Supervision reported that in the 2nd quarter of the year, gross insurance premium (total attracted premium including reinsurance) of GPI Holding made up 39.6 million lari. Reimbursements of the company made up 28.6 million lari.

Medical (health) insurance accounted for the largest share of attracted premium – 27 million lari (i.e. 68.2%).

Next come: land transport insurance (except railway) – 11.1% (i.e. 4.4 million lari), property in-

surance – 8.9% (3.4 million lari), life insurance – 4.95% (1.96 million lari), civil liability insurance – 1.7% (666,775 lari), land vehicles usagerelated civil liability insurance – 1.3% (530,120 lari), cargo insurance – 1.3% (517,024 lari) and accident insurance – 0.8% (301,973 lari).

Remaining part of attracted premium, making up 801,773 lari, is distributed between travel insurance, obligations’ fulfillment insurance, air vehicles insurance (hull insurance), maritime vehicles insurance (hull insurance) and financial losses insurance.

INSURANCE PREMIUM OF ARCHIMEDES GLOBAL GEORGIA MADE UP 32.6M LARI IN Q2

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tate Service for Insurance Supervision reported that in the 2nd quarter of the year, gross insurance premium (total attracted premium including reinsurance) of Archimedes Global Georgia made up 32.6 million lari. Reimbursements of

the company made up 28.8 million lari. Medical (health) insurance accounted for the largest share of attracted premium – 32.2 million lari (i.e.

98.8%). Next come travel insurance – 0.7% (i.e.

221,207 lari), life insurance – 0.3% (100,922 lari) and accident insurance – 0.2% (56,602 lari).

nvestbank has reported loss of 1.88 million lari for the 3rd quarter. In the same period of previous year, the bank had net profit of 3.7 million lari.

In the reporting period, total assets of the bank amounted to 30.79 million lari (yearon-year decline – 8.2%), including net loans of 8.46 million lari (year-on-year growth – 35.5%) and loan loss reserves of 348,495 lari (growth – 14.8%). Total liabilities amounted to 17.8 million lari (growth – 0.03%). At that, sum on clients’ accounts made up 9.8 million lari (decline – 14%), fixed deposits – 1.56 million lari (growth – 22.8%), while demand deposits – 440,243 lari (decline – 39.7%).

As of September 30, ratio of sum on clients’ accounts and demand deposits to total assets made up 33.3%, instead of 36.22% in the same period of 2012. Return on assets (ROA) made up negative 7% (instead of positive 14.03% a year ago), while return on equity (ROE) – negative 17.66% (instead of positive 33.96%).

Owner of 70% of the bank’s shares is legal company Dimitri Aleksidze and Vladimir Gabrielashvili, while Trendfor Holding Ltd. owns remained stake.

To remind, National Bank of Georgia appointed in Investbank a temporary administration on November 1. According to decision of NBG’s Financial Sector Supervision Committee, term of the administration expires on December 30.

VTB Introduced preferential businessloan

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he new loan product is for small and medium-size business and annual rate starts from 8%.

The loan is attached to the monetary (refinancing) ration of the National Bank. The loan interest rate is calculated according to following formula: loan % = National Bank’s refinancing rate + bank’s interest marge.

National Bank determines refinancing rate on the monthly basis and it’s main instrument for monetary-credit policy. It changes with the certain intervals, depending on the aims of monetary policy.

Minimal interest rate of the credit is 8%. The loan is issued for up to 10 years, only in GEL and maximum amount is 1 million GEL. Preferential period is 6 months.

Through the preferential period loan payment schedule may be adjusted to the specifics and seasonality of the business activity.

10 Azerbaijan, Qatar eye energy issues

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resident of Azerbaijan`s state oil firm SOCAR Rovnag Abdullayev has paid a visit to Qatar. As a part f his visit, Abdullayev met Emir of Qatar Sheikh Tamim bin Hamad bin Khalifa Al Thani to hand him a letter of President Ilham Aliyev.

Abdullayev also met minister of industry and energy Mohammed Saleh Abdulla Al Sada to discuss fostering of cooperation in the fields of oil and gas, as well as the issue of experience exchange.

SOCAR annually invests billions of dollars in transport infrastructure and is involved in key projects designed to increase Europe’s energy security.

It owns gas stations in Azerbaijan, Switzerland, Georgia and Ukraine. It has representative offices in Georgia, Turkey, Romania, Austria, Switzerland, Kazakhstan, Britain, Iran, Germany and Ukraine and trading companies in Switzerland, Singapore, Vietnam, Nigeria, and other countries.

Azerbaijan’s leasing market potential estimated at $2.5 bn a year

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oreign experts claim about the presence of the phenomenal potential of the leasing market in Azerbaijan.

Today in Baku Michael Boardman, a member of the Supervisory Board of leasing company Joint Leasing, has claimed that the domestic leasing market is still far from saturation.

“Azerbaijan’s economy annually attracts up to $25 bn of investments, and the leasing market volume does not exceed $250 million or 1% of all investments. For comparison, similar in structure to the economies of Central and Eastern Europe, Latin America the domestic leasing market reaches 5-10% of investment in the economy,” Boardman said.

If his analogy is correct, then the annual Azerbaijani leasing market should reach $2.5 bn.

“Leasing is fundamentally important for the development of small and medium-sized enterprises as well as individual entrepreneurs. We believe that for the development of leasing it is needed to foster funding in international markets and attract longterm finances,” Boardman added.

Joint Leasing was established by UK’s DH Leasing (52.4%) and OJSC International Bank of Azerbaijan (47.6%).

BP with partners from AIOC have exceeded target on gas delivery to SOCAR for 2013 by 30.7%

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P-led consortium Azerbaijan International Operating Company (AIOC), developing Azeri-Chirag-Gunashli field block, has exceeded the plan on delivery of associated gas to the State Oil Company of Azerbaijan (SOCAR) for 2013.

BP Azerbaijan reports that in Jan-Sep 2013 SOCAR received on average 5.9 million cu m (210 million cubic feet) of associated gas per day. For comparison, as of July 1, 2013 this index made up 6.7 million cu m (236 million cubic feet) per day.

“For three quarters of the year it was supplied 1.62 bn cu m (57.3 bn cubic feet)”, - BP reports. The supplies exceeded by 30.7% the plan of gas delivery from AIOC in 2013, equal to 1.24 bn cu m (44 bn cubic feet) of associated gas. AIOC transfer to 98% utilization of associated gas conforming to European standards indirectly contributed to exceeding the plan of gas supplies. In 2012 it was delivered on average by 9.2 million cu m (324 million cubic feet) of associated gas to SOCAR, although by 1 October 2012 daily supplies totaled 10.2 million cu m (359 million cubic feet). Last year it was delivered 3.4 bn cu m (119 bn cubic feet) with overall target of 3 bn cu m (106 bn cubic feet).

In 2011, BP and partners planned to deliver 2.3 bn cu m (80 bn cubic feet) of associated gas to SOCAR, and in fact it was delivered 3.3 bn cu m (116.87 bn cubic feet) that exceeded the target by about 43%.

In 2011 BP and partners delivered on average by 9.1 million cu m of gas a day to SOCAR. The contract for block development includes free delivery of associated gas to SOCAR. abc.az

Azerbaijan caucasian business week

November 18, 2013 #30

Talks with potential start-ups investors underway

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he Azerbaijan State Fund for Development of Information Technologies is negotiating with private companies and holdings for long-term investment in start-up projects.

The news was announced by Fund Executive Director Elchin Zeynalov at “Start-up Days” conference in Baku on November 7.

According to Zeynalov, some of these holding companies are already opening private funds, which will obtain the opportunity of being supported by the State Fund. These private funds are intended to support of start-up projects and innovative ideas.

“Financial support for start-up projects by private foundations will not possibly be as large as the State Fund’s financing, but their support will be important in the development of innovative ideas. There will be several such private foundations that will have a positive impact on supporting private entrepreneurship in the country,” he said.

The financing of the projects by the State Fund is expected to start in 2014, and about 5 million manats ($6.3 million) will be allocated to start-up projects in the coming year.

The first contest for start-ups in Azerbaijan is expected to be held in late November, early December. The contest aims to select the most effective and promising projects in the field of ICT, preferably projects that envision the creation of innovative products and “green” technologies.

Each Azerbaijani citizen can avail himself of the advantages of the ICT Fund’s financing. The maximum grant available is up to 300,000 manats, provided for a period of 36 months. The amount of small grants is designated at 10,000 to 100,000 manats, while medium grants could be from 100,000 to 200,000 manats, and large ones could be from 200,000 to 300,000 manats.

Incubation center for start-ups in Baku High Tech Park has started the implementation of a pilot project to establish a business incubation center, an initial step in the development of startup projects, Head of Research and Development, Supporting Startups at High Tech Park Ulvi Aslanov said on November 7.

The park will be built over 50 hectares in the Pirallahi district of Baku. Work is currently underway to build the park, construct the necessary infrastructure, study pertinent international experience, and address other organizational issues.

“The incubation center will be located in the center

of Baku, which is very important, as most universities are located in the capital. The place for the incubation center has already been allocated, and works on its creation are planned to be completed before the year-end. This is an innovation for Azerbaijan,” Aslanov said.

Necessary conditions for each participant will be created for the development of start-up projects. The center will organize workshops to enhance the skills of the participants.

The center will create all the necessary conditions for teamwork on projects as well.

“When the projects reach the desired stage of development, the next step will be shifting them to the High Technology Park,” he said.

The high-tech park is being created in the country under a decree of the Azerbaijani President, enacted on November 5, 2012. The new facility is an area with the necessary infrastructure, logistics and governing entities for conducting research in ICT, telecommunications and space use, energy efficiency, and the development of new and high technologies.

Once commissioned, the facility will expand the scope of information and communication technologies, and lay the ground for creating a modern complex to carry out research and IT development on the basis of current scientific and technological developments.

Residents and companies operating in the park will be exempt from the 18 percent VAT on imported infrastructural and technological goods and services.

The park participants will also be exempt from tax and customs duty for seven years.

Azerbaijan-Poland signs traffic coop agreement

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n intergovernmental agreement on cooperation in the sphere of international motor traffic was signed between the Transport Ministries of Azerbaijan and Poland in Baku on November 14. The agreement was signed by Azerbaijani Transport Minister Ziya Mammadov and his Polish counterpart Slawomir Nowak.

Mammadov informed Polish guests about the infrastructure and transportation projects in Azerbaijan, as well as the country’s important role in regional projects.

According to Mammadov, the agreement will play an important role in transportation between Azerbaijan and Poland, as well as in the transportation of goods to third countries. “We intend to expand ties in this sphere which will create quite accept-

able conditions for cargo carriers. Azerbaijan has ambitious projects the main purpose of which is the country’s integration into the world community. We are ready to cooperate and I believe it is necessary to hold such meetings regularly,” he said.

According to Poland’s embassy, Nowak is accompanied in Baku by a delegation of representatives of Polish transport companies who will meet with the management of the Baku Metro, Azerbaijan Railways and the Baku International Sea Trade Port.

Rapid development can be seen in all sectors of Azerbaijan’s economy. One of the important components of the country’s economic development is to improve and modernize the transport system, actively participate in the development of transport corridors (Europe-Caucasus-Asia and North-South) and the development of transit potential in the coun-

try.

Pro-active operations are being conducted to develop the road transport infrastructure as well as sea, air and rail transport.

Relations between Azerbaijan and Poland are developing quickly, and there are favorable mechanisms between the two countries for cooperation.

Poland recognized the independence of Azerbaijan in December, 1991. The diplomatic relations between the two countries were established in February, 1992.

According to the Azerbaijani State Statistics Committee, the trade turnover between Azerbaijan and Poland amounted to $24.19 million in the first half of 2013.

Azerbaijan mainly exports agricultural and chemical products to Poland.

EBRD forecasts 3.5 percent growth in Azerbaijan’s economy

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zerbaijan’s economy is expected to grow by 4.5 percent in 2013, and show slightly more moderate growth in 2014.

The news was announced on November 11 by the European Bank for Reconstruction and Development (EBRD) in its latest Regional Economic Prospects report.

Growth has accelerated in Azerbaijan due to the stabilized oil outputs and sizable fiscal stimulus deployed ahead of the October Presidential elections, the Bank said. According to the report, Azerbaijan’s economy is expected to grow by 4.5 percent by the end of 2013, 3.5 percent higher that the previous forecast in May. However, growth in 2014 is set to cool down to 3.5 percent as macroeconomic policies are normalized following the elections, and the recovery of oil output is completed.

“Azerbaijan’s economy has accelerated in the course of the year, led by significant pre-election fiscal and monetary stimulus. The pace of hydrocarbon extraction has stabilized after the contraction of the past two years,” EBRD said.

The non-oil sector, supported by public spending and a credit boom, has expanded at double-digit rates and is at risk of overheating, the Bank highlights.

According to the Bank, once macroeconomic policies are normalized following the Presidential elections and the recovery of oil output is completed, growth rate is likely to stabilize at around 3-4 percent in the next year.

The region has been affected by the unfavorable global economic environment and, in some cases, by domestic and international policy instability, the report said.

According to the EBRD, growth in Eastern Europe and Caucasus has remained constrained by a difficult external environment and domestic policy uncertainty.

“Ukraine has been in recession since the third quarter of 2012, and external vulnerabilities have increased as central bank reserves have fallen to around 2.5 months of imports. Growth has also slowed down considerably in Armenia, Belarus and Georgia,” the report said.

The Bank forecasts inflation in Azerbaijan at 2.7 percent in 2013, compared to 3.4 percent in the May forecast. Azerbaijan’s inflation rate was at 1.1 percent in 2012.

So far, the EBRD has given $2.1 billion worth of loans to Azerbaijan for 134 projects. Around $1.4 billion has been spent on supporting 125 projects in the private sector.

Azerbaijan participates in World Travel Market

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zerbaijan participated in the international World Travel Market 2013 exhibition.

The exhibition was held in London on November 4-7. Supported by the Culture and Tourism Ministry, Azerbaijan was represented by Azerbaijan Airlines Company (AZAL), Fairmont Baku, Four Seasons Hotel Baku, Jumeirah Bilgah Beach Hotel, Youth Foundation under the President of Azerbaijan, and many others.

Azerbaijan’s stand was located in the pavilion in an area of 105 square meters, and visitors received detailed information about tourism opportunities in the country. Speaking at the opening ceremony, Azerbaijan’s Minister of Culture and Tourism Abulfaz Garayev wished success for the 12 tourism companies

participating in the exhibition, as well as Turkey’s representatives whose stands were placed nearby.

Garaev also took part in the summit of the World Tourism Organization (WTO) member countries, where problems in the fields of tourism, aviation, and also visa and their possible solutions were discussed.

Speaking at the event, the Minister talked about the work done in the country’s tourism industry on implementing the State Program on development of tourism in 2010-2014, approved by the Decree of Azerbaijani President Ilham Aliyev. In the end, Garayev proposed to simplify the visa application process for tourists.

Garayev also met with WTO Secretary General Taleb Rifai, and Tourism Ministers of Russia, Ukraine,

Saudi Arabia, Argentina, Albania, Croatia, Lithuania, Uzbekistan, and other countries. During the meetings, the sides exchanged views on enhancing cooperation.

Then the Minister gave interviews to the British media and also held meetings on the European Games that will be held in Baku in summer 2015.

World Travel Market (WTM), the leading global event for the travel industry, is a four-day businessto-business event presenting a diverse range of destinations and industry sectors to the UK and International travel professionals. It is a unique opportunity for the whole global travel trade to meet at one place and negotiate, exchange ideas, and conduct business. azernews.az

Armenia

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caucasian business week

November 18, 2013 #30

Armenia increases fish export to Russia

EDB’s investments in Armenia’s economy amount to $200mln

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Export from Armenia increased

he volumes of the live fish exported from the Republic of Armenia during the months of January-September have increased by 4,6% in comparison with the

same period of the previous year making 13,6 tons. The entire amount of the fish was sent to Georgia. According to the data provided by the State Revenue Committee of the Government of the Republic of Armenia, in January-September period the export of the fresh or frozen fish has increased by 57,5% making 1410 tons with the total customs value exceeding $10,6 million.

Nearly the whole volume of the fresh or frozen fish exported from Armenia, 1406,6 tons, was purchased by Russia, thus exceeding the indicator of the same period of the previous year by 57,36%.

Export of agricultural products increased in Armenia

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he total volumes of the export of the food and agricultural products from Armenia have increased by 4,5% in comparison with the same period of the previous

year. The volumes of the export of textiles and shoes have increased by 1,3%. The share of the metals, minerals and precious stones has reduced.

According to the data provided by the State Revenue Committee of the Government of the Republic of Armenia, during the months of JanuarySeptember the import share of cars, devices and transportation means has reduced by 1,9%, food and agricultural products – 0,7%, the indicator of the minerals has remained the same and the indicator of textile and shoes has increased.

Armenpress reports that during the months of January-September the total export indicator made $1 billion 106 million 884 thousand, that exceeds the indicator of the same period of the previous year by 14%.

Armenpress reports that during the months of January-September the total import indicator made $3 billion 139 million 943 thousand, that is more than the indicator of the same period of the previous year by 3,3%.

Car import to Armenia increased

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he volumes of the imported cars to the Republic of Armenia during the months of January-September have increased by 15,62% in comparison with the same period of the previous year making 28,129 pieces.

According to the data provided by the State

Revenue Committee of the Government of the Republic of Armenia, during the nine months of the previous year 24,328 cars were imported to the Republic. Armenpress reports that in 2012 34,683 cars were imported to our Republic in comparison with the 29,388 in 2011 (11% growth).

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nvestments by the Eurasian Development Bank (EDB) in Armenia’s economy amounted to about $200 million, chairman of EDB Board Igor Finogenov told ARKA. Right now the bank is considering projects worth a total of about 0.5 billion dollars, he said adding it is mainly infrastructure project in construction, agriculture and business.

Finogenov said the bank has no intentions to limit

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he total volumes of the export from the Republic of Armenia have increased during the months of January-September by 14% in comparison with the same period of the previous year and the volumes of the import have increased by 3,3% making $1 billion 106 million 884,000 and 3 billion 139 million 943,000 correspondingly.

According to the data provided by the State Revenue Committee of the Government of the Republic of Armenia, during the months of January-September the goods exported from Armenia, having the highest total customs value, are as follows: copper, ethyl alcohol and other alcoholic

its investments to any party.

“Everything depends on projects to be submitted for funding and on proactive attitude of our Armenian colleagues who will submit economically justified projects”, Finogenov said.

As of today, total volume of the bank’s investments exceeded 5 billion dollars, total number of projects is 93, he said.

EDB’s investment portfolio rose by 1 billion dollars this year only, Finogenov said.

beverages, non-distilled copper, diamonds, energy, aluminum, gold, tobacco, apricots, peaches, cherry and other fruits, as well as bottles, fish, cement, sheep and goats, conserves, grape and potato, wine, cheese and curds, mineral waters, watches, etc.

Armenpress reports that during the first nine months the goods imported to Armenia, having the highest total customs value, are as follows: natural and liquid gas, oil and petroleum products, cars, gold, diamonds, medicines, as well as domestic poultry meat and meat products, wheat, aluminum, chocolate, sugar, detergents and cleaning products, coffee, pet food and other products.

Coffee global deflation bypasses Armenia

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he price for the coffee has mainly dropped in the world market during the last two months.

Though the Armenian companies involved in the coffee business state that in the country the reduction of the coffee price is prevented by the transport expenses increase, pricing additives by the mediators, the heated competition in the market, etc. The Armenpress correspondent tried to connect the current coffee trends in the international market with the local reality.

During the months of January-September of 2013 8 million 18 thousand 900 kilograms of coffee were imported to our Republic and 833,500 kilograms have been exported from Armenia. The average customs value for one kilogram of the imported coffee during January-September made

$2,42 or about 1000 drams in comparison with the $2,51 of the same period of the previous year.

Thus, the average customs value for one kilogram of coffee during the nine months of 2013 has reduced in comparison with the same period of the previous year by only 3,6%. It is worth mentioning that the major part of the coffee imported to Armenia during January-September is from Indonesia and Vietnam. One kilogram of coffee, having an average customs value of 1000 drams, is sold for about 2200 drams in the local market.

Armenia reduced wheat import Ukrainian Air Company to by 48 percent he wheat import to the Republic of the Republic of Armenia, our country imported implement Kiev-Yerevan flights Armenia volume was reduced by 390 thousand 854 tons of wheat in the first nine

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48,39 percent in January-September of the current year in comparison with the same period of the previous year, thus reaching 201 thousand 717 ton.

In accordance with the data of the State Revenue Committee adjunct to the Government of

months of the previous year, and 477 thousand 681 ton in 2012. Armenia imported the majority of wheat from the Russian Federation, Ukraine, and Bulgaria. As reports “Armenpress”, Armenia didn’t export wheat at the course of the current year.

Armenian insurances companies earn 426.4 million drams in net profit in third quarter

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rmenian insurances companies earned 426.4 million drams in net profit in the third quarter of 2013, down from 1.113 million drams they had earned in the third quar-

ter of 2012.

According to ARKA news agency’s bulletin “Insurance Company of Armenia,” four companies reported profit, while three others – Rosgosstrakh- Armenia, Ingo Armenia and Reso – reported a total loss of 617.7 million drams.

According to the balance sheet data, Rosgosstrakh -Armenia suffered 407. 24 million drams in losses against 59.2 million drams in profit in the third quarter of 2012.

RESO reported 136.8 million drams in net loss

versus 345.4 million drams earned as profit in the third quarter of 2012. Ingo Armenia’s loss amounted to about 73.6 million drams against 116.8 million drams earned as profit in the third quarter of 2012.

According to ARKA analysis, Nairi Insurance Company earned 413.2 million drams in profit, up from 259.3 million drams earned as profit a year before.

Garant- Limens reported 382.2 million drams in net profit. Armenia Insurance was said to have earned about 176.5 million drams in profit, down from 336 million drams a year before and Sil Insurance earned 72 million drams in profit against 103.48 drams reported as losses in the third quarter of 2012.

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he General Department of Civil Aviation of the Government of the Republic of Armenia began contacting the aviation authorities of different countries, informing about the open sky policy in the Armenia’s air transfers. The Head of the General Department of Civil Aviation of the Government of the Republic of Armenia Artyom Movsisyan told Armenpress about it.

“It has been nearly a month that we began working in that direction. On October 23 the open sky policy project was adopted and we began working with the aviation authorities of Israel, Iraq, Russia and Ukraine and informing them that we are going in the direction of the liberalized open sky policy”, - said Artyom Movsisyan.

The “Ukrainian International Airlines” has already made a step, offering to implement two Kiev-Yerevan-Kiev flights daily. Liberalizing

the air transfers and implementing the open sky policy, Armenia will create opportunities for the corresponding companies to create air companies in the country and organize regular flights.

“The Government has already approved the program and corresponding events will be held according to the schedule. I think that the implementation of the program will take about a year and a half”, - said the Minister of Economy of the Republic of Armenia Vahram Avanesyan. He stated that with the introduction of the abovementioned strategy the passenger transfers will grow by 20-25%, thus increasing the Gross Domestic Product by 10%. “We will have geographic expansion and reduction of prices”, - said the Minister of Economy of the Republic of Armenia Vahram Avanesyan. armenpress.am

12 Turkmenistan’s GDP increases by 10 per cent since early 2013

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he growth rate of Turkmenistan’s GDP over the first ten months of 2013 amounted to 10 percent, the Turkmen Economy and Development Ministry reported.

The volume of industrial production in Turkmenistan grew by 13.2 percent compared to the same period of 2012. The volume of investments from all financing sources, increased by 7.2 percent compared with the same period of 2012. The specific weight of the investment to GDP was 45.6 per cent.

Turkmenistan holds one of the key positions in the region for natural gas supplies. Its importers are Russia, China and Iran. Meanwhile, the country’s leadership has taken a course for the diversification of economy; the spheres such as oil and gas processing, textile industry, cotton processing industry and production of construction materials develop in recent years. Over the ten months of 2013 the plan for the production of natural and associated gas has been fulfilled by 106.7 per cent, and plan for production of oil and gas condensate has been carried out by 105.4 per cent.

The oil and petroleum production also grew compared to the same period of the last year increased. The production of gasoline, polypropylene, liquefied gas also increased.

The volume of drilling operations significantly increased, and the growth rate amounted to 135.4 per cent in comparison with the same period of 2012.

According to the ministry, implementation of large-scale investment projects is currently ongoing at large fields across the country.

EBRD says Central Asia’s economic growth to remain relatively strong

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he economic growth in Central Asia is expected to remain relatively strong owing to a number of large natural resource projects.

The news was announced on November 11 by the European Bank for Reconstruction and Development (EBRD) in its latest Regional Economic Prospects report. According to the report, much of the effect of new natural resource deposits in Kazakhstan and Turkmenistan will be reflected in output growth in the first two to three quarters of 2014, while in the Kyrgyzstan and Tajikistan growth is expected to decelerate somewhat in the light of weaker demand and remittances flows from Russia. Certain delays notwithstanding, large natural resource exploration projects remain broadly on track throughout the region, and are expected to make a sizable contribution to growth over the medium term, the EBRD said.

“In Kazakhstan, GDP growth slowed from 7.5 percent in 2011 to around 5 percent in 2012 owing to the more difficult external environment. Growth then picked up to 5.7 percent in the first three quarters of 2013 on the back of resilient investment. It is expected to remain around this level in 2013, supported by an expansion of oil output,” the report said. According to the EBRD, Kazakhstan’s banking sector remains weak, suffering from overhang of nonperforming loans while inflation in the country has slowed down somewhat, to 5.4 percent in September 2013, and remains broadly within the targeted range.

“In Kyrgyzstan, a disruption at the Kumtor gold mine in early 2012 caused a significant temporary drop in gold production and resulted in an output contraction of around 1 percent for the year as whole. Given the one-off nature of the disruption, output rebounded strongly in the first three quarters of 2013 and growth is expected to reach 6.5 percent for 2013 as a whole, reflecting the base effect, before subsequently moderating,” the EBRD said.

According to the report, inflation in the country picked up from around 2 percent in August 2012 to 8 percent in summer 2013 but is expected to moderate.

“In Tajikistan, GDP growth remained strong at 7.5 percent in 2012 and 7.4 percent in the first three quarters of 2013.

It is expected to moderate somewhat to 7.1 percent in 2013 on account of slowing remittances, which come mainly from Russia,” the report said. The EBRD believes that the growth outlook in Tajikistan is particularly uncertain given weaknesses in the banking system and continued tensions with Uzbekistan that may lead to further interruptions in gas supplies and railway shipments. Inflation declined from 7 percent in the beginning of the year to 4.6 percent in August 2013 owing to lower growth of food prices, the bank said. “Turkmenistan continues to experience a buoyant economic expansion with GDP growth of 11.1 percent in 2012 and 9.9 percent in the first nine months of 2013, driven by large public construction projects and increased gas exports to China,” the EBRD said. According to the bank’s report, GDP growth in the country is expected to reach 10 percent in 2013, as a new gas field comes on stream, and remain strong over the medium term, supported by exploration of Turkmenistan’s abundant gas reserves and further diversification of export routes.

“Uzbekistan’s GDP growth remained strong at 8.2 percent in 2012 and 8 percent in the first half of 2013. It was driven by a combination of increases in public spending, diversification of gas export routes and accommodating monetary conditions,” the report said.

The EBRD believes that growth in Uzbekistan is expected to slow down somewhat to around 7.7 percent in 2013.

The bank forecasts that real GDP in 2014 will increase by 5.5 percent in Kazakhstan, 5.5 percent in Kyrgyzstan, 5 percent in Tajikistan, 10 percent in Turkmenistan and 7 percent in Uzbekistan. azernews.az

CIS

caucasian business week

November 18, 2013 #30

‘Special Comrades’ Russia and Vietnam to double trade by 2015

Putin arrived in Vietnam after holding meetings with Kazakhstan’s President Nursultan Nazarbayev in the Russian city of Yekaterinburg and will visit South Korea on Wednesday.

Putin has been rounding up ex-Soviet states to join Russia in a Eurasian block with promises of lower gas prices and other trade perks, and is now extending this invitation further eastward. India has expressed interest, and Armenia has said it will join the Customs Union.

The leaders have not touched upon visa regulations. Currently Vietnamese citizens need a visa to enter Russia, but Russians do not need a visa to visit Vietnam for up to 30 days.

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ietnam is a step closer to joining the free trade zone between Russia, Kazakhstan, and Belarus.

During President Putin’s trip to Hanoi, Russia and Vietnam signed 15 cooperation agreements expected to double trade to $7 billion by 2015.

“We have agreed to speed up the negotiation process so as to conclude this agreement in the near future,”Vietnamese President Truong Tan Sang about joining the Russian-led Customs Union after talks with Russian President Vladimir Putin in Hanoi on Tuesday.

Vietnam “has always considered Comrade Putin our very close friend,” Tan Sang said.

Russia hopes the free trade zone turnover to double to $7 billion by 2015 and reach $10 billion by 2020, Putin wrote in a letter published in Vietnamese newspapers on the eve of his official

visit In 2012, bilateral trade between Russia and Vietnam climbed 20 percent to $3.66 billion.

Relations between Russia and Vietnam have a “special character,” the Russian President said in the capital of Hanoi, where he is on an official trip to boost trade cooperation. He also participated in the opening ceremony of Russian cultural days in Vietnam. Putin mentioned potential future projects in mechanical engineering, aviation, space, as well as humanitarian fields.

Russia exports machinery, fertilizers, and metals to Vietnam and imports clothing, agricultural products, and electronics.

The IMF predicts Vietnam to have GDP growth of 5.3 percent in 2013, opening many opportunities for market and trade development.

Putin went ahead with the trip despite concerns over safety as the region continues to struggle with the devastating fallout of Typhoon Haiyan.

Fueling energy ties Russia is also interested in developing Vietnam’s hydrocarbon resources, and both state-owned oil and gas companies Rosneft and Gazprom will increase their presence in Vietnam this year, supplying the country with liquefied natural gas from Russia’s Far East fields.

Rosneft plans to jointly develop offshore oil and gas reserves in cooperation with PetroVietnam, Vietnam’s National Oil and Gas Group in the Pechora Sea in the Arctic.

Last summer Rosneft signed a production sharing agreement with PetroVietnam on a Vietnamese offshore block.

In October Gazprom teamed up with PetroVietnam over offshore gas production with recoverable gas reserves of about 36 billion cubic meters of gas and 15.2 million tons of gas condensate.

Gazprom also plans to work with PetroVietnam to refine oil onsite at its processing plant, which could produce 8 million tons of oil per year with an estimated value of up to $4 billion. Vietnam plans to commission Russia’s State Nuclear Energy Corporation Rosatom to build Vietnam’s first nuclear power plant in the province of Ninh Thuan, which will begin operations in 2023. rt.com

Press says Ukraine torn between EU and Russia

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ewspapers believe Ukraine is playing for high stakes with Russia and the EU, after MPs failed to agree on a bill that would allow jailed opposition leader Yulia Tymoshenko to leave the country.

Some liken the country to a lover torn between two suitors - the EU, which has made Ms Tymoshenko’s release a condition for a key association agreement, and Russia, which wants Ukraine to join its own customs union. EU monitors now say Ukraine must pass laws meeting EU conditions by next Tuesday, or the deal will not be signed at a summit in two weeks’ time.

‘Risky game’ Papers in Ukraine have mixed views on the chances of an agreement with the EU, as well as on its desirability.

The tabloid Vesti says that in Ukraine “sceptical sentiments were growing yesterday regarding the prospects for signing the association agreement with the EU”.

Columnist Oles Buzyna goes further in the daily Segodnya. “Today it became finally clear to me that Ukraine’s infamous association with the EU has kicked the bucket,” he says. The columnist welcomes this, accusing the EU of being “maliciously willing to do away with Ukraine and what remains of its industry”.

Start Quote However, the daily Den believes Ukraine “will lose out” if the agreement is not signed. “In the event of failure, everybody - the Ukrainian authorities, opposition and the European side - will be to blame,” it says.

The tabloid Segodnya quotes an aide to President Viktor Yanukovych, Dmytro Vydrin, as saying the agreement “will be signed anyway because there is a political will on the part of Euro-MPs and bureaucrats”. Meanwhile the pro-opposition daily Ukrayina Moloda believes Mr Yanukovych “has not fully abandoned the EU association as

yet”, but is playing “a risky game” in a bid to extract as many concessions as possible from both Brussels and Moscow.

‘Trust’ at stake Russian newspapers see little chance of the EUUkraine agreement still going ahead.

Under the headline “Ukraine in no hurry”, the Vedomosti business daily says the probability of signing the association agreement has plummeted from 90% just a week ago to under 50% after the Ukrainian president visited Moscow over the weekend. Novyye Izvestiya agrees that “Ukraine is well on the way to scuppering the signing of the association agreement with the European Union”. It notes that “the authorities have started saying that the country does not need the association with the EU at all”.

Moskovskiy Komsomolets suggests that the Ukrainian authorities have deliberately “disrupted” the passing of European integration bills.

However, it quotes Global Strategies Institute director Vadim Karasev as saying that the president has “not yet made a final decision”.

The business daily Kommersant quotes pundits as warning that, as Mr Yanukovych continues to “manoeuvre” between the EU and Russia, he “may lose the trust of both”.

‘Giddy fiancee’ The Polish daily Rzeczpospolita offers an explanation for Ukraine’s perceived reluctance to resolve the issue of Ms Tymoshenko’s fate. “Experts say that the ruling Party of Regions and President Viktor Yanukovych are scared by the former prime minister’s ability to influence the presidential election campaign in 2015,” the paper says.

Germany’s Frankfurter Allgemeine Zeitung believes that, “like a bride between two cavaliers”, the Ukrainian president “is trying to play off Moscow and Brussels against each other”.

In this situation, the paper urges the EU to stay firm. “Europe must not allow an association with Ukraine for as long as Tymoshenko is in prison,” the paper says.

Under the headline “Ukraine moves away from deal with EU”, France’s Le Figaro Magazine feels that “there is a strong wind in Kiev blowing eastwards”. “Like a giddy fiancee who has been pretending for months she was about to announce her prompt marriage with Europe, Ukraine is now going back on her promise, deciding instead to flirt with Russia, a protective neighbour who does everything it can to sabotage this union,” the magazine says. bbc.co.uk

November 18, 2013 #30

world news caucasian business week

Going With the Flow

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What’s green and strong? Hydropower, which is poised for major growth

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fter decades of efforts by environmental groups and others to decommission dams, stating that they destroyed ecosystems and uprooted communities, today hydropower has a promising future as a source of green energy. Indeed, over the next two decades, hydro is expected to maintain its position as the largest source of renewable power and play a crucial role backing up intermittent generation from wind turbines and solar panels.

Throughout the world there is a huge demand for the electricity and ancillary benefits hydropower provides. There is also a need for cleaner, renewable sources of power. New techniques mean hydropower can operate in less damaging ways.

But hydropower still has to overcome some big obstacles, including a bad reputation.

Mega Dams From 2010 to 2035, hydropower generation is expected to expand by two-thirds while maintaining a roughly 15% share of the world’s electricity supply, as other sources of generation increase as well, says Michael Waldron, an analyst at the International Energy Agency.

Most of that growth is expected to come from large dams either under construction or on the drawing board in the developing world.

China alone could account for more than a quarter of the growth over the next five years, according to the IEA. After completing the Three Gorges Dam, the world’s largest, it has 60 projects in the pipeline, including Xiluodu, expected to bring 13,860 megawatts online, and Xiangjiaba, expected to supply 6,400 megawatts, according to the International Hydropower Association. (The largest dam in the U.S., Grand Coulee, has a capacity of 6,809 megawatts, enough to power about 2.3 million homes.)

Meanwhile, Brazil is constructing three dams in the Amazon, including the Belo Monte with an expected capacity of 11,233 megawatts. Ethiopia has begun work on the Grand Renaissance Dam with an expected capacity of 6,000 megawatts along the Blue Nile River. India is studying a 9,750-megawatt dam on the Brahmaputra River.

Huge dams remain lighting rods for critics. Brazil’s Belo Monte, for instance, is being opposed for concern over its effect on the rain forest and

its indigenous population.

But not only are these mega-dam projects the cheapest way to generate lots of electricity, they also can store fresh water and provide insurance against drought and floods, which could be exacerbated by global warming. “There is a growing awareness that hydropower is part of the solution,” says Jean Michel Devernay, chief hydropower specialist at the World Bank.

The World Bank stopped financing hydropower projects for about a decade after criticism of the environmental impacts. Now bank officials believe hydropower can be built in a more sustainable manner, a view increasingly shared by environmental and social nonprofit organizations. The Nature Conservancy, for instance, is working with the U.S. Army Corps of Engineers and other big developers to reduce the environmental impacts of dams.

Options to Upgrade Additional hydroelectric power can come from upgrading existing dams that produce power and by converting non-hydroelectric dams and canals. Over the next two decades, such changes could bring online 20,000 megawatts of new hydropower in the U.S., the equivalent of 20 nuclear power stations, says Jose Zayas, director for the Department of Energy’s Wind and Water Technologies Office.

The Army Corps of Engineers has identified more

than $4 billion of upgrades and improvements for 54 of its hydropower plants over the next two decades. The Corps also is encouraging private investors to convert its dams that currently don’t generate power. The Oak Ridge National Laboratory has identified more than 50,000 dams in the U.S. where hydropower could be added. The Army Corps owns and operates most of the largest facilities identified by the report. American Municipal Power Inc., of Columbus, Ohio, is adding hydropower to four dams along the Ohio River.

The dams are expected to provide power to 79 municipalities when work is completed in 2016.

Meanwhile, there is growing interest in other forms of hydropower. British Columbia, for example, has seen a surge of interest in projects that divert river water into a pipe, where it can power an electric turbine and then return to the river.

Only a small percentage of the water is supposed to be siphoned off, minimizing impact on fish and wildlife. But some environmental groups say that in reality a significant amount of water gets diverted, particularly when there are several adjacent facilities. The environmental groups advocate evaluating the cumulative effects of multiple projects on the entire river’s ecosystem.

The discussion is especially important in the U.S., where diversions could represent the biggest source of new hydropower development, according to Mr. Zayas.

Getting Pumped Significant new generating capacity is also expected from pumped-storage facilities, which generate power by sending water back and forth between two reservoirs. They have the advantage of delivering power on demand to offset power lost to the grid from variable wind and solar supplies. Europe is expected to add 11,526 megawatts of pumped-storage capacity over the next decade from updating older facilities or creating new ones, according to the Electric Power Research Institute.

The technology is still in its early stages, but dozens of demonstration projects are also in the works that harness tides, river currents and waves.

In September, Scotland approved a project to tap tidal energy in the Pentland Firth off its northern coast. When the first phase is completed, the six turbines are expected to supply 86 megawatts, enough to power about 42,000 homes.

The U.S. Department of Energy is supporting several smaller demonstration projects in the U.S., including a tidal turbine off the coast of Maine in the mouth of the Bay of Fundy that began delivering power in September 2012. “Right now the technology is commercially viable in niche markets,” says Chris Sauer, chief executive of Ocean Renewable Power Co., Portland, Me., which is operating the Bay of Fundy project. online.wsj.com

Shaky growth: EU slows to 0.2% in Q3

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any EU countries have declared an end to recession, but the weak 0.2 percent growth in the EU for Q3 tells another story. Strong Germany growth dipped to 0.3 percent and the French economy fizzled, dropping to 0.1 percent.

In the 17-nation euro currency bloc growth fell to just 0.1 percent, as recovery is still slowly stabilizing after a near 2-year recession, according to preliminary GDP data for Q3, released by the

European Union Statistics Bureau, Eurostat on Thursday.

Modest growth was driven by a pickup in consumer spending, but public finances remain weak.

Growth significantly slowed from the 0.3 percent in the second quarter of 2013.

Eurozone economic powerhouse Germany saw GDP rise 0.3 percent, which was exclusively driven by domestic demand, according to the Federal Statistics Office. Germany continues to be the main driver of growth, as consumer spending and

exports remain healthy. The Bundesbank had predicted a slowdown in the third quarter, following “immense” 0.7 percent growth in Q2.

Germany’s industrial-based economy has kept it competitive in international trade, which has yielded an “excessive” 18.8 billion euros trade surplus, which has drawn jealousy from struggling neighbors. The 8 percent trade surplus is “in-depth review” by the European Commission to see if it is undermining the recovery of other European markets.

The review process is fairly routine - in 2012 the EC launched similar reviews of 13 EU countries, including Belgium, Finland, and Sweden.

Germany has come under fire for being too dependent on exports, and not stimulating enough domestic demand, which could be hindering growth across the rest of Europe.

Many EU 28 countries posted stellar growth in Q3- Romania increased 1.6 percent, Latvia 1.2 percent, the UK 0.8 percent, Poland 0.6 percent, Finland and Estonia 0.4 percent.

France’s economy fell flat and contracted 0.1 percent, as high taxes continue to cramp business expansion and push up unemployment.

France’s poor performance follows a credit rating downgrade by Standard & Poor’s agency on November 8, which cited poor economic growth prospects for Europe’s second-largest economy.

Many countries have officially excited recessionthat is, posted grow for the first time after eight, even nine consecutive quarters of contraction.

Spain managed to emerge from recession posting 0.1 percent growth quarter-on-quarter between July and September, and France has declared an end to their recession as well.

Debt, unemployment, and weak exports still plague the continent, especially as periphery zones continue to contract. Unemployment across the euro currency zone is 12 percent, and more than double that in Spain and Greece.

The biggest contractions were in Cyprus, which contracted 0.8 percent, the Czech Republic by 0.5 percent, and Italy down 0.1 percent.

Data is not yet available for Denmark, Ireland, Greece, Luxembourg, Malta, Slovenia, and Sweden.

Much of Europe is still stabilizing after the 2 year recession, trying to find the right balance between spending and austerity. Unlike America, which is aggressively pumping stimulus into its economy, Europe, for the most part, has chosen austerity to cure the deep wounds of crisis.

Fearing stagnation, the European Central Bank unexpectedly cut interest rates to a record low of 0.25 percent (link) on November 5th after inflation suddenly dropped to 0.7 in October, far below the targeted 2 percent, which stirred fears of deflation.

The European Commission has cut its growth forecast to 1.1 percent from 1.2 percent for 2013.

Rt.com

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Colombia’s return to market means pain for coffee growers

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offee drinkers have cause to celebrate the return of Colombia, the leading producer of high quality arabica beans, to the market, but for growers the timing is unfortunate.

After a virulent strain of coffee fungusravaged the country’s coffee farms five years ago, output has recovered after an extensive four-year restoration programme where 40 per cent of coffee trees were replanted.

However, the Latin American country’s harvest, which is expected to rise almost a third this year to 10m 60kg bags, has come at a time when the

world is awash with arabica – the higher quality bean used in espressos and cappuccinos – and prices are plummeting.

Having fallen to a third of its 34-year peak of $3.089 a pound in 2011, ICE March arabica is trading at $1.0655 a pound, having fallen to a five-year low of $1.0415 earlier this month. “$1 coffee. How low can it go?” asked Kona Haque, analyst at Macquarie in London, adding that she struggles to see any supporting factors for the price.

While the price fall is good news for coffee drinkers, it has been devastating for growers. The cost of production in many countries is now higher than the price, and many are relying on government subsidies to keep on farming.

Average production costs have risen for growers, with Central America and Colombia seeing costs at about $1.40-$1.50 a pound – a level the market breached in February this year. Last month, arabica coffee prices fell below $1.20 a pound, the production costs for Brazil, the world’s largest and most efficient coffee grower.

Although for many commodities, the cost of production tends to provide a price floor, coffee growers tend to be slower in responding to weaker prices. Unlike annual crops such as grains and oilseeds, where farmers can adjust the sowing of seeds to cut production in the face of a supply glut, lower prices do not lead to coffee farmers felling the perennial trees.

After two years of excess output, the market faces the prospect of another year of the same. The arabica market was oversupplied by 800,000 bags in 2011-12 and 7.4m bags in 2012-13, according to Swiss coffee trader Volcafe. Brazil is expected to have another bumper crop, while Colombia is likely to continue to see strong output. Barring adverse weather hitting both countries, analysts

estimate a surplus of about 2m-3m bags in 201314.

The current low prices will eventually feed through to production numbers as farmers refrain from investing and maintaining their trees, say coffee executives.

“The natural reaction to low prices – decreased use of inputs, insufficient husbandry, diversification and abandonment – will be intensified,” said Carlos Brando, director of P&A International, the marketing and consulting arm of Brazilian coffee machinery maker Pinhalense.

“A fundamental turnround for the coffee market will be ahead of the Brazilian 2015-16 crop for which the flowering of the trees starts in October 2014,” said Ms Haque.

One ray of hope for farmers is a move away among coffee roasters and blenders from robusta, the lower quality bean, into arabica. After arabica coffee hit its highs two years ago, many roasters started to use more robusta in their blends or introduced cheaper coffee products using a higher proportion of the cheaper bean. $1 coffee. How low can it go?

- Kona Haque,Macquarie

This year’s sharp decline in arabica prices has seen some roasters switch back to the higher quality bean, especially in Brazil, the second largest coffee consumer, as well as other parts of the world, according to traders. Anecdotally, some traders are noticing an increase in arabica imports in the Mediterranean countries, while others say Japan and the US are also purchasing more arabica beans.

However, the impact of bean switching is expected to take time to filter through. Until then, farmers will need to weather the losses.

Luis Fernando Samper of the Colombian Coffee Growers Federation says the country’s farmers have managed to cut some costs thanks to rising production yields after the renovation programme. There is also a push to increase margins by producing high end speciality coffee beans.

In the short term, the vast majority of the federation’s coffee growers are facing a difficult situation. “The pain is particularly felt by many of the small growers, who depend on the coffee income.

We need the government to give us a hand during this price cycle,” said Mr Samper Ft.com

November 18, 2013 #30

Embassy United States of America Embassy 11 Balanchivadze St., Dighomi Dstr., Tbilisi Tel: 27-70-00, 53-23-34 E-mail: tbilisivisa@state.gov; askconsultbilisi@state.gov United Kingdom of Great Britain and Northern Ireland Embassy 51 Krtsanisi Str., Tbilisi, Tel: 227-47-47 E-mail: british.embassy.tbilisi@fco.gov.uk Republic of France Embassy 49, Krtsanisi Str. Tbilisi, Tel: 272 14 90 E-mail: ambafrance@access.sanet.ge Web-site: www.ambafrance-ge.org Federal Republic of Germany Embassy 20 Telavi St. Tbilisi Tel: 44 73 00, Fax: 44 73 64 Italian RepublicEmbassy 3a Chitadze St, Tbilisi, Tel: 299-64-18, 292-14-62, 292-18-54 E-mail: embassy.tbilisi@esteri.it Republic of Estonia Embassy 4 Likhauri St., Tbilisi, Tel: 236-51-40 E-mail: tbilisisaatkond@mfa.ee Republic of Lithuania Embassy 25 Tengiz Abuladze St, Tbilisi Tel: 291-29-33 E-mail: amb.ge@urm.lt Republic of Latvia Embassy 4 Odessa St., Tbilisi Tel: 224-48-58 E-mail: embassy.georgia@mfa.gov.lv Greece Republic Embassy 37. Tabidze St. Tbilisi Tel: 91 49 70, 91 49 71, 91 49 72 Czech RepublicEmbassy 37 Chavchavadze St. Tbilisi Tel: 291-67-40/41/42 E-mail: czechembassy@gol.ge Web-sait: www.mzv.cz Japan Embassy 7 Krtsanisi St. Tbilisi Tel: 75 21 11, Fax: 75 21 20 Kingdom of Sweden Embassy 15 Kipshidze St. Tbilisi Tel: +995 32 2 55 03 20 , Fax: +995 32 2 22 48 90 Kingdom of the Netherlands Embassy 20 Telavi St. Tbilisi Tel: 27 62 00, Fax: 27 62 32 People’s Republic of China Embassy 52 Barnov St. Tbilisi Tel: 225-22-86, 225-21-75, 225-26-70 E-mail: zhangling@access.sanet.ge Republic of Bulgaria Embassy 15 Gorgasali Exit, 0105 Tbilisi, Georgia Tel: +995 32 291 01 94; +995 32 291 01 95 Fax: +99 532 291 02 70 Republic of Hungary Embassy 83 Lvovi Street, Tbilisi Tel: 39 90 08; E-mail: hunembtbs@gmail.com State of Israel Embassy 61 Agmashenebeli Ave. Tbilisi Tel: 95 17 09, 94 27 05 Embassy of Swiss Confederation’s Russian Federation Interests Section Embassy 51 Chavchavadze Av., Tbilisi Tel: 291-26-45, 291-24-06, 225-28-03 E-mail: RussianEmbassy@Caucasus.net Ukraine Embassy 75, Oniashvili St., Tbilisi Tel: 231-11-61, 231-12-02, 231-14-54 E-mail: ukraina_pu@wanex.net; emb_ge@mfa.gov.ua Consular Agency: 71, Melikishvili St., Batumi Tel: (8-88-222) 3-16-00/ 3-14-78 Republic of Turkey Embassy 35 Chavchavadze Av., Tbilisi Tel: 225-20-72/73/74/76 E-mail: turkemb.tbilisi@mfa.gov.tr Address: 8, M. Abashidze str.

Batumi, Georgia tel: (8-88-222) 7 47 90 Republic of Azerbaijan Embassy Kipshidze II-bl . N1., Tbilisi Tel: 225-26-39, 225-35-26/27/28 E-mail: tbilisi@mission.mfa.gov.az Address: Dumbadze str. 14, Batumi Tel: 222-7-67-00 Fax: 222-7-34-43 Republic of Armenia Embassy 4 Tetelashvili St. Tbilisi Tel: 95-94-43, 95-17-23, 95-44-08 E-mail: armemb@caucasus.net Web: www.armenianembassy.ge Consulate General, Batumi Address: Batumi, Gogebashvili str. 32, Apt. 16

Tbilisi Guide

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

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

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

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

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

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

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

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

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

The Best Georgian Honey of chestnuts,acacia and lime flowers from the very hart of Adjara Matchakhela gorge in the network of Goodwill, Nikora and smart

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