Caucasian Business Week #32

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BUSINESS WEEK December 02, 2013 #32

caucasian business week Partner News Agency

December 02, 2013, Issue 32



NBG: Exchange Rate Fluctuations are Related to Seasonal Factors Pg. 2




he Asian Development Bank (ADB) approved on 25 November 2013 a $73 million loan to the Government of Georgia. Pg. 3

“Deepening of relations with the European Union Provides Credits at European Interest Rate for Georgian business “ Pg. 2



he estimated real Gross Domestic Product (GDP) growth rate amounted to 3.9 percent y-o-y in October 2013. Pg. 6



o-investment Fund reviews project 80million for Diary Farm and Diary products Processing plant. Pg. 8


anking sector in Georgia is represented by 21 commercial banks, including 18 foreign-controlled banks. Pg. 9



zerbaijan’s gas export potential will reach 40-50 billion cubic meters by 2025, head of Azerbaijan’s state energy company SOCAR said on November 21. Pg. 10



rmenian beekeepers are ready to agree on the honey export issue with the Europeans. Pg. 11



iev’s decision to shelve the EU deal sparked protests and accusations that it was political. Pg. 12



eorgia’s Association Agreement (AA) with the EU, also including deep and comprehensive free trade treaty (DCFTA), was technically initialed in Vilnius on November 28 on the first day of the Eastern Partnership summit. A formal ceremony of initialing of 1,000-page AA/DCFTA will take place on the second day of the summit, November 29, with participation of Georgian Foreign Minister Maia Panjikidze and Economy Minister Giorgi Kvirikashvili, as well as EU foreign policy chief Catherine Ashton and EU Trade Commissioner Karel De Gucht. Georgian leadership says its “ambitious goal” is to have AA/DCFTA signed by September, 2014. After the Vilnius summit foreign ministers from

the EU member states will outline several key areas and then the European Commission will develop concrete benchmarks in each of those areas based on which the EU will be monitoring performance of Georgia to assess eligibility to sign the Association Agreement. After the agreement is signed, it will then require ratification by legislative bodies of the EU-member states, as well as by the European Parliament. Before ratification “provisional application” of some parts of the DCFTA will start; those parts of the agreement include regulations related to phytosanitary, intellectual property rights, competition policy, as well as some parts of the agreement related to sectoral cooperation. Pg. 2




he Organization for Economic Cooperation and Development is predicting that Greece’s economy will shrink further next year and that the government might need more financial help, AP reported. Pg. 13


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“GWP cannot Divulge Agreement Content without Another Party’s Consent” Tamuna Tandashvili: Atlasjet Airlines Launches New Service in Georgia Pg. 5

Pg. 3


EBRD Representative: Georgia needs to stimulate consultancy and innovation to help enterprises grow

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

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MAIN EVENTS caucasian business week

December 02, 2013 #32


G From Pg. 1

eorgian Foreign Minister, Maia Panjikidze, says initialing of the AA/DCFTA is a “historic moment for my nation”, which seals the country’s European choice. “Next year, when we enter the implementation phase of our commitments, will be significant for ensuring the irreversibility of Georgia’s European perspective,” she wrote in an opinion piece published by Brussels-based Summit in Vilnius is the third one since EU launched Eastern Partnership initiative in 2009. President Giorgi Margvelashvili arrived in Vilnius to participate in the summit on November 28. This is his first foreign trip after taking the office following the October 27 presidential election. “We are taking step which will bring us closer to the EU and ensure irreversibility of our European course,” Margvelashvili said in Vilnius. During the Vilnius Summit, Georgia and EU will sign a framework agreement on Georgia’s participation in EU’s crisis management operations. According to the Georgian Foreign Ministry, the EU invited Tbilisi to offer its contribution to EU’s civilian mission in the Horn of Africa and West Indian Ocean, EUCAP NESTOR, as well as

in EU’s military training mission in Mali (EUTM Mali) and EU Border Assistance Mission (EUBAM) in Libya. The summit in Vilnius gathers heads of governments and high ranking officials from the EUmember states and six Eastern Partnership members. Among the participants are German Chancellor Angela Merkel, French President François Hollande and UK Prime Minister David Cameron, as well as Presidents of Latvia, Poland, Cyprus, Romania and Slovakia; Prime Ministers of the Czech Republic, Denmark, Estonia, Greece, Italy, Croatia, Luxembourg, Malta, the Netherlands, Portugal, Slovenia, Sweden, Hungary and Spain. Presidents of Armenia, Azerbaijan, Georgia and Ukraine, as well as Moldovan Prime Minister and Belarusian Foreign Minister will be representing Eastern Partnership countries. European Council President Herman Van Rompuy, European Commission President José Manuel Barroso, European Parliament President Martin Schulz, EU foreign policy chief Catherine Ashton, Commissioner for Enlargement and European Neighbourhood Policy Štefan Füle and Commissioner for Trade Karel De Gucht are also participating.



he National Bank’s President claims that the recent drop in the exchange rate is a short-term upheaval and nothing special happens. As Kadagidze tells reporters , GEL exchange rate is characterized by fluctuations , and it is related to seasonal factors. According to Kadagidze, the National Bank has always been a guarantee of financial stability, has both human, financial and infrastructure resources, it has proved in the past and therefore, confidence in the banking sector is so high. It’s the first time the rate of the Georgian national currency has crossed the line in 1.68 four days ago the since July 2011 and is falling every day at least by 10 points. As a result of the recent trade, GEL has fallen by 10 points against USD and was established at the level of 1.6878 that is the lowest rate in the last 2.5 years.



eepening of relations with the European Union envisages credits at European interest for Georgian business - Georgia’s former Ambassador to France Mamuka Kudava states. Mamuka Kudava explains, after

Georgia ‘s rapprochement with Europe a share of European investment will increase and the European businesses will have motivation to start their own business in Georgia. Cheap credits await each resident, not such as it was promised by the new government and partially fulfilled only in agricultural lending . A loan at European interest arte awaits all businesses, small or medium. Why ? Because we’ll have a free market , free trade with Europe. Investors from Europe as well as from other countries will be eager to invest money,” - says Mamuka Kudava . In his words, the aliens will have a desire to come to Georgia to establish a factory, plant , create jobs and export products to all European countries . “Because we will be tied to this 500- million market. It is 3 times bigger than the Russian market, “-says Kudava.



resident Margvelashvili met his French counterpart, François Hollande, on the sideline of the Eastern Partnership summit in Vilnius on November 29. President Hollande told journalists that there’s “excellent” mutual understanding and added that he plans to visit Georgia in “coming months.” The Georgian president’s office said that Margvelashvili thanked his French counterpart for “support in Georgia’s European and Euro-Atlantic integration issues” and invited President Hollande to visit Georgia.

In Vilnius the French President is also due to meet his counterparts from Armenia, Azerbaijan and Ukraine; he also met Moldovan Prime Minister earlier on November 29. In other bilateral meetings on the sideline of the Vilnius Summit, President Margvelashvili held talks with Presidents of Poland and Latvia, as well as Prime Ministers of Estonia and Slovenia. He also met President of the European Parliament Martin Schulz and President of the European Bank for Reconstruction and Development (EBRD) Suma Chakrabarti.



ATO Secretary General Anders Fogh Rasmussen published statement on the Eastern Partnership Summit in Vilnius. “I welcome the results of the Eastern Partnership Summit in Vilnius. The Vilnius Summit is a defining moment in the European Union’s relationship with Eastern European partners. I congratulate Azerbaijan, Georgia and Moldova for making the sovereign choice to take important steps forward in their relations with the European Union with determination, courage and hard work. Today’s agreements will further enhance reforms, trade, and people to people contacts. They represent a major contribution to freedom, stability, and prosperity in Europe. I welcome the forward looking agenda for the Eastern Partnership over

the next two years, which will consolidate and develop the process of political association and economic integration. These are goals that NATO shares and supports through its own partnerships and security cooperation”, the statement says.



he agreements signed with Eastern Partners are not against Russia, the European Parliament President Martin Schulz told journalists in Vilnius. “Often there’s disagreement in Moscow as if the EU steps are directed against Russia. Actually, these steps improve our political-economic cooperation with the countries that want to develop democracy. It is the EU style. It is the model of transnational democratic operation. I hope we’ll manage to openly discuss this issue with the Russian government and assure Russia that EU will not act against them”, Martin Schulz said.

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MAIN December 02, 2013 #32

caucasian business week



dvertising war” has been launched on the Georgian insurance market. A character similar to “Rex”, a hero of “GPI Holding” commercial “Mr. Rex” - Labrador sitting at the feet of the man in the chair was featured in “Aldagi” ad. Answering to a retaliatory move, “Rex” wrote on his Facebook page: “Everybody needs to take care of his job, “Aldagi” insures dogs, my friends from “GPI” and I - people. I was really glad that I got “followers “ in competing companies, if we continue in the same way, both insurance and advertising sectors will benefit. Mr. Rex is “GPI Holding” new “face” . The insurance company decided that a dog is a symbol of loyalty and credibility, and built their advertising campaign around it. This step is critically evaluated in social networks, and the company was blamed for the lack of creativity. This created an expectation of advertising “ping - pong “ among the audience that will be continued. Why did “Aldagi “ decide to respond to a competitor’s advertising campaign and how did “GPI” took this answer? Will “GPI” answer “Aldagi”? Answering с question, “Aldagi”

Deputy Director-General Nutsa Koghuashvili says that due to high demand, the company released pet insurance because at this time there are 200 thousand families which have pets in Georgia. But when asked whether a dog was intentionally featured in the video , the company’s representative says that it’s difficult to answer this question and explains that doing this they simply offered a new product to the user and a dog was shown in the commercial due to the fact that their new product envisages insurance for dogs and cats. “GPI holding” Public Relations Manager Tina Stambolishvili states that if a dog in “Aldagi” commercial is a reference to “Rex”, it looks like a step taken by the market’s small player which repeats big company’s strategy. In her words, a goal of “Mr. Rex” is assistance to people and the quest for a solution and this campaign with participation of this character will continue in future. The insurance company “IC Group” does not appreciate a creative side of competitors’ advertising,however, says that “Aldagi “ and” GPI” commercials could not take their audience away because they are oriented at a low price, and the company’s positions on the market is

evidence of the company’ssuccessful work. According to Director of Retail Sales Department of the insurance company “Ardi “ Giorgi Lomidze, at a time when companies are offering similar types of advertising campaigns they have the appropriate marketing considerations. However, he notes it would be better if the insurance market leaders spent their own time on improving the quality of services instead of “tasteless commercials “. An expert in marketing Niko Tevdorashvili calls the both commercials creative given that the companies presented different and unconventional commercials. Tevdorashvili says that in the case if these companies begin “ping-pong game” and scenarios is interesting , it could focus the whole society on just these two companies, and as a result , their sales will increase . In his words, “Aldagi “ and “ GPI “ commercials, from today’s perspective, are justified because theycaused a great response and attention. “Coca - Cola “ and “Pepsi “ campaign was one of the last examples of “advertising war” in the

world - on the occasion of Halloween “ Pepsi” released a promotional poster, featuring a Pepsi can with a Coca Cola mantle. The caption on the poster reads: “ We wish you a scary Halloween .” “Coca - Cola” answered his rival with its poster, just changed the caption: “Everybody wants to be a hero “ A practice of caricature of competitors in commercials has taken root in Georgian companies as well, but how creative they follow the practice of world brands - the future TV commercials will show .




he Asian Development Bank (ADB) approved on 25 November 2013 a $73 million loan to the Government of Georgia to improve the connectivity between Tbilisi and Rustavi and reinforce the coast of the Black Sea tourist destination of Anaklia. The improved infrastructure will ease chronic traffic congestion, improve the environment and road safety, and contribute to growth and job creation. The loan is the third loan tranche of the Sustainable Urban Transport Investment Program, a $300 million multitranche financing facility approved by ADB in 2010 to address urban transport issues in Georgia. “This loan will improve the efficiency and reliability of the urban transport network, create economic and job opportunities, and pave the way for a more sustainable environment in Tbilisi and Anaklia,” said Anand Chiplunkar, Director of the Urban Development and Water Division of ADB’s Central and West Asia Department. This third loan tranche is earmarked for the construction of the middle section of the Tbilisi-Rustavi road link and continuation and conclusion of the current coastal reinforcement works in Anaklia, financed from a previous loan under the same program. These investments will benefit the population by increasing people’s

mobility and reducing travel times. They will stop the erosion of the sea coast at Anaklia, an emerging summer seaside resort. The investments will be financed from commercial resources from ADB. “These projects will be key contributors to the economic and tourism development, benefitting more than 1.45 million residents in these urban areas. The construction of the TbilisiRustavi road section will improve access to the center of Tbilisi, reduce traffic congestion, and improve road safety,” added Bertrand Goalou, Urban Development Specialist in ADB’s Central and West Asia Department. The investment in improving the Tbilisi-Rustavi road link will also contribute to regional development, as the road is part of the east-west corridor linking Turkey to Azerbaijan via Georgia. This is one of the key trade corridors of the Trans-Caucasian and Eurasian (TRACECA) network. ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth and regional integration. Established in 1966, it is owned by 67 members – 48 from the region. In 2012, ADB assistance totaled $21.6 billion, including cofinancing of $8.3 billion. Since 2007, it has approved more than $1.1 billion in financing operations for Georgia.


ublic views about the roles of men and women in family life, business and politics were examined in a research commissioned by the United Nations Development Programme (UNDP) with funds from the Swedish International Development Cooperation Agency (Sida). Key findings of the study were presented today to representatives of the Government, international organisations, civil society, academia and the media. The nation-wide research looks into public perceptions on gender equality and compares the present results with the conclusions of the previous similar researches. The study reveals that public stance towards gender has remained unchanged over years. It also shows that different age groups in Georgia share similar beliefs, attitudes and stereotypes about women’s participation in politics and economic activities. Speaking at the opening session today, the Head of the United Nations in Georgia, Niels Scott, said: “Georgia has been successful in recent years in promoting gender equality through new legislation and policies. But fundamental change of public perception takes longer and is more difficult to

achieve. We hope that this report will stir a constructive discussion that will lead to new initiatives in the areas of human rights and civic education.” Conducted by the Georgian research agency, ACT, the study accumulates the results of 1,760 faceto-face interviews across Georgia, and 16 focus group discussions in Samegrelo and Kakheti. According to the research, 88 percent of the respondents think that men are supposed to be breadwinners of their families. 62 percent of women and only 37 percent of men think that women and men should make decisions together. Majority of the respondents – 45 percent, prefers to have a boy as the only child. Boys are also privileged in education and property rights. 57 percent agrees that men have a greater chance to get a high ranking position. Both men and women – 68 percent, give priority to a male presidential candidate. 54 percent thinks that politics is inappropriate for women. The research is undertaken under the UN Joint Programme “To Enhance Gender Equality in Georgia”.


INTERVIEW caucasian business week

December 02, 2013 #32


An interview with Jaap Sprey, Head of Regional Programme South Caucasus and Turkey, Small Business Support Team, EBRD - You are the Head of the EBRD Small Business Support Programme for Turkey and the South Caucasus. What does this program exactly provide, what results do you have and what do you plan to do in the near future to support small businesses in Georgia? - The Small Business Support Team is here in Georgia to help small-to-medium-sized businesses grow, succeed, then grow again, becoming genuine catalysts for the Georgian economy. After working with us, our clients understand the value of external advice. They have the tools, skills and know-how to innovate, attract finance and future expertise, and become business leaders. We connect our clients to local consultants and international advisors who can help transform a huge range of businesses. From strategy to marketing, quality management, export promotion or energy ef-

ficiency, SBS draws on the expertise of thousands of local consultants and international advisers to help small business reach their growth and employment potential. From the smallest looking to grow, to those going global, our expert network of doers, thinkers and advisors help our clients to step up, and start thinking big. Being part of an international bank, we can advise on finance and loans. But think of us as a knowledge bank too. We’re just as interested in the human capital of our clients - great ideas and expertise that works and helps people, not just the bottom line. All SBS projects work on a cost-sharing basis and SBS’ work is only possible thanks to the continued support and engagement of a wide range of donors, including the European Union and over 20 bilateral donors and other organisations. Our work in Georgia and the Caucasus is currently funded by the European Union, through the Neighbourhood Investment Facility (NIF). This month, the Small Business Support Team is celebrating ten years working in Georgia. Over the past ten years we have supported over 750 projects with clients who engaged local consultants and nearly 50 projects with local clients who worked closely with an international adviser. We attach great importance to measuring the impact of our programme and therefore always evaluate a project one year after completion. These evaluations show that roughly 4 out of 5 of our clients increase their turnover and 2 out of 3 clients hired new employees. Considering that on average a project creates 6 jobs, we have contributed to a net job creation of over 4,500 jobs in Georgia. Our clients have also been able to attract funding for over 40 million EUR through the EBRD and local banks. Looking ahead, we are grateful for the continuous support of the European Union. We will continue to emphasise the importance of access to finance for small and medium enterprises by having them become more creditworthy through targeted advice. We are also planning to give special attention to Women in Business, i.e. enterprises that are either owned or managed by women. Moreover, we will continue to develop the consultancy sectors in areas that we believehave potential but are still relatively underrepresented or underdeveloped in Georgia.

One of these areas is energy efficiency. Finally, we will continue to support efforts by Georgian consultants and interested stakeholders to strengthen the local consultancy sector by setting up an Institute of Management Consultants. - What problems are obvious in terms of doing business in Georgia? - An obvious and important challenge for local enterprises is obtaining medium to long term financing. Little over one third of domestic credit to the private sector currently goes to micro, small and mediumsized enterprises (MSMEs) as the major banks focus on financing large enterprises. This is why the EBRD works extensively with its partner local banks and microfinance organisations to increase further the availability of long term funds for on-lending to MSMEs, especially in the regions of Georgia outside Tbilisi and in local currency to reduce the foreign exchange risk. The EBRD also supports the development of non-bank financial activities such as leasing, insurance and pension funds. The EBRD also works directly with small and medium enterprises to make them more creditworthy with the help of its Small Business Support team. As mentioned before, our team works with its clients to make help them grow, innovate and attract finance. - A share of small and medium businesses in Georgia is very small and you also talked about this. When can we expect changes in this regard? - As mentioned, an important point is to make it easier for small and medium-sized enterprises to attract funding by working with both the financial sector and the companies. This is what the European Bank for Reconstruction and Development will continue doing. The Small Business Support team in particular has been actively supporting local enterprises in developing business plans, improving their financial accounts and transparency and growing their activities, both here in Tbilisi and in the regions. We are confident that in due course this will allow small and medium enterprises to add more value to the Georgian economy. - What advice would you give Georgian businessmen in order they to develop their business more successfully, considering the reality, is there a lack of good business projects today? - You mention the “lack of good business projects” which reminds me of a survey that the EBRD conducted last year together with the OECD, European Commission and European Training Foundation in six countries of the region, including Georgia. The

objective of the survey was to assess to what extent these countries had made progress along the criteria set out in the so-called European Small Business Act. Whereas Georgia had made good progress on criteria such as operational environment, access to finance and public procurement, the country scored less well on innovation. We understand that the Georgian government has started to introduce rather sophisticated mechanisms such as technology transfer centers to strengthen the innovation capacity of SMEs and focus research outcomes on practical applications needed by the market. We nevertheless feel that more active policy measures are needed to increase the use of consultancy services and innovation support schemes. This innovation process would of course also benefit from greater cooperation between universities, technological centres and industry. As to my advice to Georgian business people, I would recommend they tap more into these innovation support schemes and make more use of consultancy services, as this will help their business grow. Our Tbilisi based Small Business Support team will be happy to assist. - As it is known, EBRD has cut Georgia’s economic growth forecast to 2%. In general, what does a decline in the economic growth rate mean for ordinary people and business companies, what should a company change in its plans and activities at such a time? - It is true that the EBRD has cut its economic growth forecast. Growth has slowed down in Georgia due to lower public and private investment and policy uncertainty related to the post-election political transition and the presidential elections. However, for next year we forecast an acceleration of economic growth to 4 percent. We therefore remain confident about the prospects of the Georgian economy. As to Georgian enterprises, my advice would be to turn the threat into an opportunity. If consumers spend less, they may forgo an expensive product or service in exchange for a more affordable one. This can offer interesting opportunities. For instance, consumers may prefer to go on holiday in Georgia instead of abroad. Or consumers may wish to buy a more low cost local food products instead of expensive imported food stuffs. Local enterprises should seek to identify these trends and capitalise on them, for instance by reducing costs or expanding their product range. The Small Business Support team has a large database of consultants who can assist in this respect.


CEO of Georgian Water and Power Alexey Kuznetsov answers questions received column WEEK GUEST. - Hello. Water supply in the city has improved since your company appeared, thanks. But I can’t understand how you are rehabilitating pipes in Temka in such a way that every time when a tap fails somewhere in the city or a pipe is damaged, water is immediately closed in the third micro region in Temka. Wasn’t it possible to take such engineering solution that could solve that problem? There are cases when water is disconnected for two or more days. I think it will be good if you provide water with tank lorries in such cases, as we pay for delivered as well for undelivered water. I hope that your company will be successful in its business and you will eliminate that problem as well. Thank you! - (Thanks for your questions) 1400 mm main conduit supplies water to Temka, 3 m/r, Gldani III, IIIa, V, VI, VII, VIII micro regions, Centroliti, Koniaki, Gldanula and Gas settlements, Avchala, Mukhiani Military settlement and its adjoining private sectors,

as well as Andronikashvili, Bichvinta, Revolutsia and nearby streets, in addition villages: Gldani and Giorgitsminda and some more settlements and large facilities. As for most part of Tbilisi the very conduit is the main artery for water supply, correspondingly it needs rehabilitation and scheduled maintenance works from time to time. The works must be carried out and, of course, it is impossible to do it without water closures. As regards the issue that the artery runs on the very area, it is caused not by engineering error. At that time it was the only engineering solution proceeding from specific features of geography and landscape. Concerning water delivery with tank lorries when Georgian Water and Power is carrying out engineering works which require water closures at least for 24 hours, in this case the company is obliged to provide the population living there with water. We usually do that and provide water to the population with tank lorries, but if it doesn’t occur, the customers can contact Hot Line (293 11 11) and inform the operator about the problem. The company will urgently solve the problem of water delivery. - What is the permissible standard of pressure for high-rise buildings? Do you comply with them? For your information, in our building in B. Khmelnitsky Str. pressures are not stable... In June my pipe burst because of very high pressure and water flooded my neighbor’s apartment... very often water pressure is 6 atm.... when I notified about the damage– your operator shrugged her shoulders, when I asked about compensation... - In the process of water supply of the capital it is vital to control water pressures in the water supply system and regulate pressures in different districts. In some cases pressure even reaches 62 atmospheres

in the main supply arteries and it is quite understandable – in backbone networks, like 1400, 1200, 1100, 1000, 900 mm, water runs under high pressure; and in distribution zones – which are comparatively small diameter arteries – water pressure couldreach 6 atmospheres. As for internal distribution network of customers, pressure must be 1-1,5 the top floor which may lead to higher pressure at the lower floors of the tall building. Almost all facilities of Georgian Water and Power - powerful pumping stations, backbone and distribution networks, storage reservoirs, local boosting stations, etc. are included in the process of pressure control. – Are not you going to make public your agreement on purchase of Tbilisi Water? The former Government kept that agreement secret… - Georgian Water and Power is a private company which has entered into share purchase agreement with the Government. This means that another party to the agreement is the state. Under the privatization agreement, Georgian Water and Power is unable to make the contents of the agreement public without consent of another party to the agreement – state agencies. Several months ago BidzinaIvanishvili stated that the owner of Georgian Water and Power is a wellknown Russian businessman Andrei Rappoport. Moreover, according to the Prime Minister, he had met Rappoport himself and made him change his mind regarding selling this company. What can you tell us in relation to this? As a CEO of Georgian Water and Power, I am managing this company. My function is to improve water supply services to Tbilisi residents and organizations, as well as endeavour to develop the company. I have no information regarding what is going on in

high political lobbies. Accordingly, I know no more than you about the mentioned meeting. You can find the information regarding the owner in the Public Registry excerpt. - Water spills in the yards. It is really a pity, when you watch it. Are you planning something for solving the problem? - It hurts us as well when water spills. For solving the problem the company registers all such taps and street water springs. We usually fix them, as they create problems for the residents. The population often addresses us with such requests. We install water meters when a natural or legal person takes care of such taps and correspondingly the product is not used aimlessly. - Recently your services have improved which we welcome. What improvements are you planning for the future? - As to the future improvements, the project Mtkvari without Waste Water is being implemented, i.e. the company is cleaning Mtkvaririver from waste water. For this purpose we are implementing separation and renewal of sewerage and storm water pipes in Tbilisi districts. Besides, we permanently carry out rehabilitation of water supply and sewerage main and distribution networks, control quality of water in the city through state-of-the-art laboratory of the company. Recently we have introduced a new approach – we publish the data on water quality control on a daily basis is various media. From 2014, a new, quarterly form of billing water cost is planned for metered customers instead of the monthly one. Internet portal will become available for such customers. We consider sending various pieces of information to customers via SMS notifications in the future.


BUSINESS December 02, 2013 #32

caucasian business week



ompany “Yarasa Cargo”, Cargo General Sales and Service provider in Georgia (GSSA), holds a meeting with International and local Freight Forwarders and Media representatives. Event tooks place on November 27 at Nero, Old Tbilisi at 18:00 o’clock. The aim of the meeting is Lunching Atlasjet Airline Cargo on Georgian Market. “Yarasa Cargo” is the First Georgian GSSA (General Sales and Service Agent) company providing full range of cargo services for Airlines. Yarasa Cargo was nominated as Atlasjet Airlines GSSA in Georgia in November 2013. During the official presentation, the company will provide details about Atlasjet Cargo services and operations. “GSSA is a wide spread business model in air cargo world business. GSSA’s provides a valuable role in assisting Airline Principals to achieve a costeffective presence in a market where it may be uneconomical for an airline to maintain its

own sales force and premises. The GSSA works on behalf of their Airline Principals providing the freight forwarding community with the full range of cargo services within the specified territory. Compared to other means of Transportation, transportation by air s is considered to be the most expensive product. Therefore, Customers are very sensitive regarding price, speed and safety of their goods. We decided to create the company that would meet the local market demands in a best way, able to attract international airlines by the service of highest standards. Briefly, the partnership with the airline makes possible to introduce the tailored products to the market, which allows the exporters and importers to get necessary commercial parameters and services for further efficient trading activities. Today, about 20 airlines offer its cargo services in Georgia. Atlasjet cargo service entrance in Country is a very important move for developing competitive airfreight market in Georgia. Atlasjet service makes air cargo the most

available by its dynamic service, flexibility and convenient rates” – Ms. Tamuna Tandashvili, the company director stated. One of the Turkish Leading Airlines - Atlasjet entered the Georgian Market in October Month 2013 offering its regular flights to passengers. “The main advantage of air freight is of course the speed. As technology develops, distances become smaller but demand becomes higher. In a world where speed is of utmost importance, air transport is one of the indispensable links of the logistics chain. We aim to provide a fast and high quality service on all of our flights. We are working towards this goal together with all of our service providers. We appriciate our partnership with our GSSA Yarasa Cargo . They are functioning as a pure GSSA company providing their service to the big network of the forwarders, understanding the needs of local air cargo market. “- Stated Atlasjet Cargo Director, Ms. Sebnem Sayli. Handling services will be provided by Georgian Post. With its Renovated terminal, Georgian Post offers its best rates and services to customers.



ompany Cross-2 plans to build a large trade center in Tbilisi. To meet this aim, the company purchased a land of 13 thousand square meters, located on Baghdadi street, for which they should pay 2 820 000 GEL. According to auction terms, Cross-2 is required to launch the trade center in 30 months after the purchase contract is signed. The company should make at least 1 million GEL investment for it. According to the data of Public registry, company Cross-2 is registered in May 2013. Its shareholders are citizens of France and Netherlands. IN particular, 50% belongs to the citizen of France Jacques Marie Flur and 25-25% - to the citizen of Netherlands George Svanidze and citizen of France Antoine Laurent Bardont.



n 2012 turnover of the enterprises increased by 5,3 billion GEL. Geostat informs that last year 553 692 enterprises were registered in Georgia, which is 42 515 more than in 2011. In the same period turnover of the enterprises equaled to 42,048 GEL, which in 2011 this data equaled to 36,72 billion GEL. Last year enterprises issued products of total 23,096 billion GEL value (19,2 billion in 2011). Value added indicator equaled to 11,91 billion. Last year 534 397 persons were employed in the enterprises registered in Georgia, which is 3 161 more than employed in 2011. Monthly data of salary has also increased and it equals to 714,3 GEL. In 200 average monthly salary was 622,6 GEL.



skaneli Brothers company has received an approval to all applications submitted to RosPotrebNadzor, the Russian Federation Consumer Rights Supervisory Agency. The company management says the company has got all required permits and certificates to launch exports to the Russian Federation. The company has got recently obtained certificates for brandy products of Askaneli and Gideli. “Exports of the mentioned products of Askaneli Brothers to the Russian market were suspended because of some misunderstanding in May 2013. Therefore, our company requested for a repeated test of the products. Askaneli and Gideli brandy products have successfully passed the second test”, Askaneli Brothers founder Jimi Chkhaidze noted. The certification process lasted three months and all brandy products of Askaneli Brothers – Gideli and Askaneli obtained 3.5.6 and 8 year fermentation certificates from RosPotrebNadzor. “We are glad the misunderstanding is over. Naturally, our company business image was considerably damaged, but I think everything has been clarified. The approval of several other products of Askaneli Brothers is a very pleasant decision. In several days we will send Askaneli and Gideli


brandy products to the Russian Market”, Jimi Chkhaidze said. Askaneli Brothers launched exports to the Russian market 3 months ago and the process has faced no problems. Since June the company has exported over 1 million bottles of wines to Russia. “It should be noted Askaneli Brothers is an only Georgian company that supplies its own products to Ginza Group, Russia’s major network of restaurants. Now Askaneli and Gideli brandy products will replenish our various exports products. In the future we also plan to obtain certificates for XO, VSOP, VS brandy products too”, Jimi Chkhaidze said. At this stage Askaneli Brothers exports nine varieties of wine products to the Russian market: Kindzmarauli, Tsinandali, Alazani Valley – Red, Alazani Valley – White, Khvanchkara, Saperavi, Mukuzani, Akhasheni and Ojaleshi. These wines are sold in the Russia’a major network of supermarkets of Magnit. Askaneli Brothers products

are also distributed by such networks and hypermarkets as X5, Kopeika, Perekriostok, Carousel and so on. As to other innovations of Askaneli Brothers, the company is being developed dynamically; a new enterprise is being also built with Italian machineries. The plant with doubled output is being built under the ISO standards and the construction works will end in six months. Askaneli Brothers company was founded 15 years ago and today it is one of the leading alcoholic beverages manufacturer in Georgia. The company bottles eight varieties of brandy products, 32 varieties of wine products and 4 varieties of vodka. Askaneli Brothers products are considered to be the best ones and they have obtained over 100 awards at various exhibitions and tasting events. The company exports products to 19 countries, including to the USA, Ukraine, China, Germany, Great Britain, Estonia, Lithuania, Latvia, Poland, Czech Republic, Kazakhstan, Finland, Azerbaijan and Belarus.


ccording to statistic of National bank of Georgia (NBG), ratio of the actives of commercial banks to GDP equals to 58,5% by the end if IIIQ (IIQ - 56,5%), deposits - 26,9%, loans - 34,4% (IIQ - 26%, 33,7%). Compared to the same period last yearn ration of monetary aggregates to GDP has increased (IIIQ/12-49,4%; 22,9%; 28,3%). Determining these data, NBG took into account GDP of last 4 quarters.



insiter of Agriculture Shalva Pipia will meet representatives of the largest Israeli agro-companies in the framework of the 13th international exhibition on agriculture, food industry, and processing and packaging technologies. The meting was held in the Embassy of Israel and organized by Ambassador of Israel Yuval Fuchs. Minister of Agriculture talked about the state strategy of Agricultural Development on the meeting. Shalva Pipia stated that all the projects implemented by the ministry and planned for the future aims to provide maximal support to the sphere development and system changes, which will provide advancement of the country’s agrarian sector. “On today’s meeting representatives of the leading Israeli companies made a presentations, who are interested in the technology industry export to Georgia. Sharing of Israeli experience and introduction of the modern technologies will be positively reflected on our country’s agriculture”. - Shalva Pipia. On the meeting Ambassador of Israel Yuval Fuchs stated that active cooperation between Israeli and Georgia in agricultural sphere will continue. Israeli side is ready to share experiences Georgia in agriculture and assist in introduction of the modern technologies.


STATISTICS & ECONOMY caucasian business week



ext year’s budget will be 9 014 000 000 GEL - Finance Minister Nodar Khaduri told journalists after the Cabinet meeting. He explains that the government had approved a draft budget at today’s session and it

would be sent to parliament the same day. “Today, we’ve discussed the draft state budget for 2014 , which will be sent to the Parliament the same day. Budget is calculated at a 5% growth of gross domestic product [GDP] and 3.5% deflator . We assume that nominal GDP will be 29 342 000 000 GEL. Along with that, the total tax revenues are scheduled to amount to 7 230 000 000 GEL. Budget deficit will be 3.9 % . In a word, the next year’s budget will amount to 9 014 000 000 GEL , “- says Khaduri. He explains that the budget of the Ministry of Health is growing, as well as education and science funding. “If in 2012 a total of 18 000 000 GEL were allocated for the science sector, now the figure totals 49 000 000 GEL, “ – Khaduri states.

December 02, 2013 #32



he estimated real Gross Domestic Product (GDP) growth rate amounted to 3.9 percent y-o-y in October 2013. The estimated real GDP growth reached 1.3 percent for the Q3 2013 and 1.9 percent for the first ten months of 2013 y-o-y. Geostat produces monthly rapid estimations of real GDP growth using administrative data on VAT taxpayers’ turnover, fiscal and monetary statistics. The compilation of rapid estimates is an internationally adopted practice to

obtain preliminary monthly growth of real GDP. For those sectors, where preliminary monthly data do not exist (e.g. agriculture, non-observed economy etc.), the estimations are based on the data for previous periods. Therefore, the actual quarterly real GDP growth may significantly differ from monthly rapid estimates. Furthermore, the data on VAT taxpayers’ turnover for the previous months might be updated on a monthly basis, implying corresponding adjustments of real GDP growth estimates.



inistry of Agriculture will begin working on agro-insurance project next year. According to the Ministry, the enactment of agro-insurance is directly related to the land inventory and work in this direction has already begun. They say, an inter-agency committee composed of representatives of agriculture, justice and economy has been working on the land inventory project.

After public and privately owned lands are distinguished, the state will work on agro-insurance project. Note: The Minister of Agriculture Shalva Pipia still in his capacity as deputy minister told ‘’Commersant” that the Ministry consulted with foreign and Georgian insurance companies regarding development of agro-insurance scheme, but then he did not specify the time of the project implementation due to the product complexity.



n increased water fee will be reflected on the major players of the Georgian mineral water market in January next year. “Commersant “ was told at “Nabeghlavi “ company that tax calculation was done once every quarter and the company would start working under conditions of increased taxes from January. To maintain the price of the products, at this stage “Nabeghlavi “ is working on the adjust-

ment to the increased fee. “ Borjomi “ does not comment on this topic . Note: By the government’s decision, from October 1 a water fee has increased only for two companies. Recall that from October 1 water fee would increase only for “Borjomi’’ and “Nabeghlavi’’ that envisages increase in water fee from 10 GEL to 30 GEL per 1 cubic meter for “Borjomi” and for “Nabeghlavi” – from 6 to 18 GEL.

TIFFLISSKY VINNY POGREB PLANS TO PRODUCE 4 MILLION BOTTLES OF WINE NEXT YEAR By the information of “National Wine Agency”, wine producing company ‘Tiflisski Vinni Pogreb’ (TVP) has taken most of the grapes this year. BPI contacted management representative – NINO KHAZIURI.

- Ms. Nino, by the information of “National Wine Agency”, your company Tiflisski Vinni Pogreb’ (TVP) has taken most of the grapes during this year’s vintage. However, the name of the company was not that famous. Can you please present your company and speak about the vintage of 2013. - Our company – LLC “TVP” has been functioning since 1998. It was and is mainly oriented on

export that is why our production is less known on the Georgian market, though company was always in the list of the 3 biggest wine companies of Georgia. Wine factory is the British-Russian capital in Georgia, which is engaged in the Georgian wine production and its popularization outside the country. Nowadays, LLC ‘TVP’ is one of the largest producer and exporter of the Georgian wine. Company produces wide range of wine in the different range of prices. Factory is located in Tbilisi (on the way to Kakheti) and is equipped with the modern devices. Factory capacity equals to 7,000,000 bottles. During the last years, company has formed strong group of young professional specialists with the fresh view, who are ready to solve any kind of technical issues. Their principle of team working is the main basis for the everyday activity. The best production series of the company is the “Georgian vine” wines. The wine of the mentioned series is produced in the limited amount from the highest quality grapes. - What can you say about the Russian market? How big was the problem connected with the closing of the Russian market for you? How actively are you planning to invade Russian market? - Our production is widely known in Germany, Poland, Ukraine, Khazakhstan, Latvia, Israel, Canada, the USA and now in Russia. Company

strengthens the image and authority of Georgia in the international arena by exporting high quality wine. With wine exporting, company brings stable currency in the country. During the last 2 years, we bring more than 2 million Gel in the Georgian budget. In 2013, we purchased the most of the grapes, approximately 6500 tons, while in last year – 3500 tons. It is caused by the increased interest and demand to our high quality production. As you may know, the Russian market opened and demand for the high quality wine has increased, so we increased purchasing and we plan to gain important place on the Russian market. We plan to produce 4 000 000 bottles only for Russia in the next year. Our company was mainly oriented on the Russian market, that is why embargo was the significant strike for our sales, the number of the employers was halved, but by producing the high quality wine, we were able to obtain new clients in the different countries and maintain our place on the market. If sales in 2006 were 420 000 bottles, this number was increased to 2 800 000 bottles in 2012. This year, we plan to sell 3 500 000 bottles, and we want to increase this number to 7 000 000 for the next year. Our annually growth is no less than 35 %, which totally is 6 times growth, from 2006 to 2012. Our production is selling in the European Union countries for a long time: Poland, Germany, Latvia and we also plan to expand this market. - What are your plans in Georgia? Are you

planning to expand further investment and production? - For the future, we plan to expand our production, with minimum 10% growth annually, and improve technical equipment in the factory. Now, we try to develop ISO 9001 and HACP standards in company, which will be additional condition for the improvement of our product. Our production is getting more diverse during the years, we produce wines not only in glass bottles, but also in ceramic, aztek pouch, and apart wine we produce special Chacha, which remain in the French made oak barrel. In the perspective, company plans to produce new brands and improve product quality, to satisfy demands of the real consumers of the Georgian wine. - What do you think, how is important support of the Government for wine producers and what kind of support need companies in the mentioned field? - Government support for wine producers is really important, in particular, shall be mentioned, lowpercentage agro-credits during the vintage. We have used agro-credit in amount of 5,200,000 Gel this year, which allowed us to purchase a record number of grapes. Compensations were given immediately, that made possible to pay peasant in time and strengthen relations with them for the future. This was made by the government initiative, and we thank Georgian Government for this support and hope to have government support to the wine companies in the future.

SOCIAL RESPONSIBILITY December 02, 2013 #32

caucasian business week




ompany Natakhtari continues its Project Take Care of Future focused on children deprived of care supported with the Association Our House Georgia and blessing of the Patriarch of Georgia. Company established Natakhtari Foundation in November 2011 and started the project implementation. During three months 1, 3 and 5 tetris were being transferred to the fund from each sold bottle of lemonade. The Fund aims to assist orphans and children deprived of care, help them in getting ready for an independent life and offer them required services (so that after expiry of the state service they are equipped with certain working skills). Special services and assistance were provided to 224 orphans and children deprived of care being in small family houses and large institutions of Georgia. Data base of children deprived of care was developed within the project framework. As a result of Psychologists’ work, 15-18 year old 224 adolescents got identified, for whom the largest part of the collected funds were allocated. With assistance of psychologists the areas representing interest for children got determined for each child. Initially the project was designed for 16-18 year adolescents. Starting from 2013, 15-year old ones were also added. Along with the growing number of adolescents, the team of psychologists also increased, which allowed the project management to provide quality services to beneficiaries. Currently 10 psychologists are rendering their services to 224 children. Tornike Nikolaishvili, Natakhtari’s Market-

ing Director, Lela Merabishvili, Director of the Association - Our House Georgia and Manana Omarashvili, Head of the Psychology Service met with journalists at Radisson Hotel and acquainted them with the report on the Project activities. In addition, they announced about launch of the third phase of fundraising process. TORNIKE NIKOLAISHVILI: - The third phase of the Project will take place from November 25 to February 25. The innovation this time is that the lemonade in cans will also participate in the campaign. Therefore, we are expecting to collect unprecedented amount. The mark will be the same - the Fund’s Logo on the cap. In addition, the Fund’s principle is transparency and communication with the public. LELA MERABISHVILI: - If we evaluate the current year, during the last six months we achieved significant results. In order to make clearer picture, I would address only quantitative results. 34 adolescents received trainings in various school subjects and 52 acquired vocational skills at colleges. Internships undertaken by 6 children with an employment perspective need to be pointed out. We funded participation of 5 children in sports activities and trainings for driver’s license for eight. We purchased textbooks and instruments for 15 children to strengthen their professional skills. Those who left the small family business and do not have supporting net are receiving the following services within the project framework: apartment rent, food, transportation, acquiring craft. Currently there are 6 such adolescents.

University exams in 2013 were successfully passed by three project participants and they became students. Their tuition fee is being funded by the state. Where the amount of scholarship differs from tuition we are funding the difference. Currently we are providing such funding for one student. All activities planned under the Project are conducted purposefully and gradually. Interest and initiative of each participant is the starting point for us. 10% of collected funds are spent on administrative services, while the remaining amount on psychological and adolescent services. MANANA OMARASHVILI: - Fund is limited and the issue how to spend it is being reviewed by the Coordination Council.

Main directions are: professional orientation, professional consultations, prevention, and intervention, facilitating integration into the society and teaching time and financial management. If in 2012 the number of closed cases was 10, in 2013 the number reached 26, of which 15 got employed, some were hosted by recipient families and the others returned to biological parents. Some got married. We have 6 failed cases, since nothing is known about 5 adolescents and one is under criminal investigation. The fund has been observing this case and we’ll get involved if necessary. 13 participants are successfully working, 5 are teenagers, three of them got enrolled in the university. Company Natakhtari is a big support and hope for them.


BUSINESS caucasian business week



he International Finance Corporation’s (IFC) newly developed consulting program was introduced to Georgian entrepreneurs today.

As IFC Regional Manager for the South Caucasus Thomas Lubeck said, the program will help companies in the agricultural sector with the implementation of management systems for social and food security. “These systems will enable them to reduce operating costs and industrial waste, increase productivity and open up their products to new markets. This is particularly important in some countries in the region where inadequate standards cause losses, reduction in employee productivity and often poses a threat to the environment and local population. Georgian agriculture is characterized by a significant potential, but insufficient standards to some extent hinder its development,” Thomas Lubeck said. The program is funded by the Austrian Ministry of Finance.



o-investment Fund reviews project 80-million for Diary Farm and Diary products Processing plant. Agro-business direction investment officers of the fund state that along with the fund, Ukrainian Terra Food Group will fund the project. Transparence International

Georgia releases the information. The organization mentions that the director responsible for Terra Food Group strategy and investments George Kikvadze is at the same time a manager director of agricultural investments of the Coinvestment Fund. As Co-investment Fund stated to the organization, $0,5 billion investment is planned in the agriculture. 15 agro business projects are submitted in the fund, among them diary farm and diary products processing plant project of the $80 million value, also vegetable processing plant and several greenhouse projects.



urkish textile giant ‘’Gunkar Textile” will invest 1.5 million USD in Georgia. According to President of the International Investors Association , ‘’Gunkar textile” representatives will build a textile factory in Samtredia or Guria [western Georgia] . The investor will take a decision after a meeting with the Georgian side , which will be held in a couple of days. It appears that the factory has already existed in Samtreia, and if it is chosen, the Turkish investor will complete its reconstruction in 3 months.



ompany Bio Wine positively evaluates prohibition of terms “Organic”, “eco”, “bio” in the case of corresponding certificate absence. “It’s a very good initiative, as before everyone used to write these terms of the product label, but in fact following of special terms is necessary to issue bio products”, - Bio Wine manager Zaza Dvali stated to GBC. He said that Bio Wine already has Caucascert

certificates, which is recognized by Georgia and EU. The company informs that according to Caucascert standards, 3 years are required to get biocertificates. Company founder Givi Nikoleishvili registered the vineyard in 2005, in 2008 the vineyard and its harvest gained first bio certificate in Georgia. Reminding that government’s resolution on Bio Products enacts on January 1, 2014. According to document, usage of terms “organic”, “eco”, “bio” will be prohibited on the product’s label, if the product or food is not made according to the requirements of the resolution. The agency reminds business operators that in the case of appropriate certificate absence, usage of these terms is violation of labeling rule, which, after the enacting of resolution will cause responsibility of the business operator.

December 02, 2013 #32



ompany Kolin Construction, Tourism, Industry and Trading will not construct 110MW power station on the river Tskhenistskali. The company unilaterally cancelled Memorandum of Understanding signed with JSC Electricity System Commercial Operator “ESCO” and EnergoTrans on August 15, 2011. Respectively, the government assigned Ministry of Energy to return banking security deposit of $2 million to the company, presented in the framework of the memorandum. As Ministry of Energy stated to GBC, Kolin Construction refused to construct a power station after technical-economic justification document was made up. According to the memorandum, company Construction, Tourism, Industry and Trading Co. Inc. took responsibility to construct 110 MW capacity power station on the river Tskhenistskali, Tsageri region in 56 months after construction permission. ESCO took responsibility that according to investor requirement, in the case of respective agree-

ment, during 10 years after launching electric station would necessarily purchase electricity, produced by the power station during winter seasons (December, January, February), according to tariff determined by the memorandum.



nnual growth of VAT-payer enterprises turnover equaled to 5,3% in October. According to preliminary information of Geostat, turnover of the VAT-payer enterprises equaled to 4,136 billion GEL in October, which is 5,3% more than in the same period last year. It’s the first case after April of the current year when VAT-payer enterprises turnover increased. Geostat also adjusted data published in October, in particular, in September turnover of VAT-payer enterprises was reduced by 1,6% instead of 1,2%. In august drop was

1,5% instead of 1,7% compared to last year. It’s noteworthy that in October 2013, compared to the same month of previous year, number of newly registered enterprises has increased by 24,4%. In October of the current year 3 833 new enterprises were registered in the country.



he company, which had to build Park Hayat on the place of Restaurant Aragvi, Tbilisi, appealed court to start insolvency case on June 7, 2013. Creditors also supported bankruptcy of Loyal Capital bankruptcy, debt to which equaled to 11 157 836 GEL. Company creditors were foreign companies, namely: Boulevard International Incs and Projectwid Ventures, Languor Managements. Because company creditors have not appealed to

court, the court decided: to declare Loyal Capital Property bankrupt and cancel registration in the Business Registry. As representative of Loyal Capital Properties Mindia Gadaev stated to GBC in July, decision on the closure of the company was made because of suspension of the hotel Park Hayat construction project. What project will be implemented instead of Park Hayat, Gadaev can’t specify. It’s likely that trade center will be built on the place of the restaurant Aragvi.



eorgian-Singapore Air Company starts flights in December. Founder of the air company George Kodua informs that licenses on several directions (Minsk, Kiev, Iraq cities, Aqtau) are already got form the regulator. Astana, Tel-Aviv, Istanbul directions are under discussion. The company has also obtained plane-exploiting certificates. The fleet includes 2 planes of 147seat Boeing (MD83), with 12 business class.

Air Caucasus is 3rd brand related to George Kodua after National Airlines and Sky Georgia. Kodua does not have connection to National Airlines (also known as Sky Georgia) any more. He chose rehabilitation regime, although city court decided to bankrupt it. Currently George Kodua owns 55% of the company. 45% belongs to Eurasia Airlines, owned by Asonic Group. Kodua says that he’ll give 30% from his share to Eurasia Airlines till December.


BANKING NEWS December 02, 2013 #32

caucasian business week



asis Bank, which is member of Hualing Group, in relation to creation of large modern commercial market and special economic zone, opened a new service center in the in the constructing Olympic complex in Vazisubani. The service center will promote operational service and also offer of various banking products to the local and foreign companies in order to support their investments. Main activity sphere of the Hualing corporation is to carry out large development project in China and other countries of the world, among them: America, Central Asia and Pacific countries. Hualing Group was founded in 1988, in Sinzian and owns 3 million square meter commercial area and 5 developed retail markets in China. Georgia entered in the group in 2007. The company has a license on 88 000 cubic meters wood obtaining. It already started building of free trade zone in Kutaisi. In 2012 the company became owner of 90% of the stocks of Basis Bank.

y November 1, 2013 share of TBC Bank on the retail lending market is 22,3% (01/01/13 - 25%). Share of individuals’ loan portfolio has increased by 11,3 million GEL (13,2%), to 972,7 million GEL since the beginning of the year (01/01/13 - 859,5 million GEL). Overall loan portfolio of the bank is 2,374 billion GEL (01/01/13 - 2,249 million GEL). Amount of the credit investment of the commercial banks (including loans for non-residents) equal to 9,2 billion GEL. Among them individuals’ credit portfolio equals to 4,4 billion GEL.




TB completed January-October with 7,4 million GEL profit (IIIQ - 6,9 million GEL). BY November 1, 2013 credit portfolio of the VTB Bank Georgia is 486 million GEL (IIIQ - 477 million GEL), deposits (without banks’ deposits) - 497,7 million GEL. Bank’s actives equal to 748,098 million GEL, market share - 4,75%. At the beginning of the year it was 3,76%. Amount has increased by 208 million (01/01/13 -540,1 million GEL). Stock capital of the bank is 76,2 million GEL, supervision capital - 102,3 million GEL. VTB Bank Georgia is a member of international financial group and has highest credit rating “BB” among Georgian banks.



rice of Bank of Georgia’s (BGEO LN) stocks exceeded to 22 pounds on the London Stock Market. Last week maximal price equaled to 22,57 pounds. BG Capital informs that in the reporting period minimal price equaled to 20,99 pounds. In total 490 000 stocks have been traded. Session week closed with 22,56 pounds (+7,3% w/w). Bank of Georgia’s stocks have been traded in the premium list of London Stock Market since February 20, 2012 (in the standard list - Since November 2006).



y November 1 market share of JSC Bank of Georgia according to loans equals to 33,2%. Credit portfolio is 3,2 billion GEL. According to actives, its market share is 32,6% (IIQ - 34,7%). By November 1, 2013 actives amount to 5,143 billion GEL (IIQ - 5,2 billion GEL). The Bank completed January-October with 91,274 million GEL profit (IIIQ -77,6 million, IIQ - 59,3 million GEL). The bank is a market leader according to almost all indicators. By November 1 it’s also first among 16 profitable banks.





n October market rates on retail loans in GEL reduced by average of 1,4%, to 23%, in the foreign currency - by 0,5%, to 16,1%. According to statistic of the National Bank of Georgia (NBG), rate has not changed on the corporate loans in the national currency and equaled to 12,9% in October. At the

beginning of the year it was 14,2%. Rate on the retail loans reduced by 3,7% in 10 months. Since the same period of last year rates for the credits in GEL have reduced by average 2%, in the foreign currency - by 0,8%. Amount of the lending of resident individuals equaled to 4,4 billion GEL by the end October.



he volume of lending by commercial banks (including loans to nonresidents) in October 2013 increased by 100.4 million GEL (1.1 percent) compared to the previous month, constituting 9.6 billion GEL by November 1, 2013. The volume of loans provided in the national currency increased by 84.5 million GEL (2.5 percent) and the volume of loans in foreign currencies increased by 15.8 million GEL (0.3 percent). By the end of October 2013, commercial banks issued 908.2 million GEL worth of national currency-denominated loans (1.0 percent, or 8.7 million GEL, less than in the previous month) to resident legal entities and 4.0 billion GEL worth of loans in foreign currencies (0.4 percent, or 14.7 million GEL, more than the previous month). Of the total volume of lending to legal entities,

the biggest share falls on trade - 48.0 percent. Compared with the previous month, in October 2013 the volume of loans provided for trade increased by 4.6 percent, or 102.2 million GEL, and exceeded 2.3 billion GEL. The share of loans provided to the industrial sector constituted 17.2 percent of all loans to legal entities, amounting to 839.1 million GEL by November 1, 2013 (9.6 percent, or 89.2 million GEL, less than in October 1, 2013); 8.0 percent falls on construction, amounting to 390.2 million GEL (an decrease of 11.9 percent, or 52.6 million GEL). Therefore, 73.2 percent of the total volume of lending to legal entities falls on only three sectors - industry, construction and trade. The volume of lending to resident individuals increased by 2.2 percent, or 95.2 million GEL, during October 2013 and reached 4.4 billion GEL by November 1, 2013.



s of November 1, 2013, the banking sector in Georgia is represented by 21 commercial banks, including 18 foreign-controlled banks and two branches of nonresident banks. Compared with the previous month, the total assets of Georgian commercial banks decreased (in current prices) by 24.4 million GEL (or by 0.2 percent) and constituted 15.8 billion GEL. The banking sector’s own funds

(equity capital) equal 2.8 billion GEL, which makes up 17.8 percent of the commercial banks’ total assets. The share of foreign capital in banks’ total paidin capital constituted 76.4 percent. In October 2013, the banking sector finished with a net profit of 33.9 million GEL. The five banks with the largest assets constituted 77.1 percent of the total share of assets in the banking sector.



he total volume of non-bank deposits in the country’s banking sector increased by 1.5 percent, or 138.5 million GEL, compared with October 1, 2013, and reached 9.1 billion GEL by November 1, 2013. In October 2013, the volume of demand deposits increased by 88.8 million GEL (2.2 percent) and term deposits by 49.7 million GEL (1.0 percent) compared to the previous month. The dollarization ratio of total non-bank deposits constituted 59.34 percent by November 1, 2013;

decreasing by 1.07 percentage points compared to October 1, 2013. The annual average weighted interest rate on term deposits constituted 6.0 percent. In particular, the interest rate for national currency denominated deposits was 8.8 percent and the interest rate for foreign currency denominated deposits 5.1 percent. The share of the US dollar in the total volume of foreign currency denominated deposits equals 80.5 percent and the share of the euro equals 1.9 percent.


SC TBC Bank completed 10 months 2013 with 51,06 million GEL profit (III quarter - 45,4 million GEL, II quarter 30,8 million GEL). Credit portfolio of the bank equals to 2,374 GEL (III quarter - 2,332 billion, II quarter - 2,307 million), deposits - 2,51 billion GEL (III quarter - 2,5 billion, II quarter 0 2,273 billion GEL), overall obligations - 3,149 billion GEL. Bank’s actives equal to 3,735 billion GEL (III quarter - 3,66 billion, II quarter - 3,605 billion GEL), market share - 23,7% (III quarter - 23,2%, II quarter - 3,605 billion GEL, 24,1%). Bank operates for over 20 years. Main stockholders are TBC Holding, European Bank for Reconstruction and Development (EBRD), IFC, DEG (Deutsche Investitions- und Entwicklungsgesellschaft mbH), development organization of the German bank KfW, Development Bank of Netherlands FMO (Nerlandese FinancieringsMaatschappi Voor Ontwikkelingsladen N.V.). Overall stock capital of the bank is 383,2 million GEL (III quarter - 579,4 million GEL).



n 10 months 2013 banking sector got 178,6 million (10%) more revenues in comparison with the same period last year and spent 18,9 million GEL (1,1%) less. According to statistic of the National Bank of Georgia (NBG), 63% of the incomes 1,237 billion GEL is got from the loans (01/11/12 -1,136 billion GEL). 27% of the expenditures - 434,3 million GEL is spent for deposits. Banking sector spent 313,9 million GEL for administrative maintenance. In the same period last year it equaled to 279 million GEL. Currently banking sector of Georgia is represented by 21 commercial banks.



rocredit Bank is opening a renovated, comfortable branch in Samgori, arranged with new standards. “Samgori Branch is one of the oldest branches and currently it serves 8000 clients. In the new comfortable environment the customers will get all banking services quicker and more conveniently. Besides, 24-hour selfservice zone will operate in the branch, which means that the clients will be able to use distance channels for desired banking service 7 days a week, during 24 hours”, - the bank states. The branch located on the #2 Javakheti Alley will serve clients from Monday to Friday 9:3019:00, on Saturday - 10:00 - 14:00. The bank informs that till the end 2013 renovation of some other branches have been planned.


AZERBAIJAN caucasian business week

December 02, 2013 #32

ARAB LEAGUE, AZERBAIJAN TO INK SOCAR UPS GAS PRODUCTION zerbaijan’s state energy company SOCAR produced 5.15 billion AGREEMENT cubic meters of gas in January-


eague of Arab States (LAS) will sign a memorandum of understanding on cooperation with Azerbaijan and Central Asian countries at the forum entitled “Cooperation between Arab countries, Azerbaijan and Central Asia and the

economy”, to be held in Riyadh, Saudi Arabia, on December 2-3. At this forum Azerbaijan will be represented by a delegation headed by Deputy Foreign MinisterMahmud Mammadguliyev. This delegation will also include representatives of the Economy and Industry Ministry and Energy Ministry, Azerbaijan’s Foreign Ministry reported on November 28. According to the report, as a part of the forum a meeting will be held with participation of representatives of the financial, trade and investment structures from the member states of the League of Arab State (LAS), Azerbaijan and the Central Asian countries. Moreover, the deputy foreign minister will hold a meeting with representatives of the Organization of Islamic Cooperation, the Islamic Development Bank and other regional financial and economic structures.



he first IPO in Azerbaijan will be held in 2014, administration head of Azerbaijan’s State Securities Committee told journalists on November 28. “We have high expectations for 2014. One of them is to hold the first Initial Public Offering (IPO) on the Baku Stock Exchange,” Bakhtiyar Azizov said. Several Azerbaijani companies, including GoldenPay, are preparing for the placement and have shown an interest in holding the IPO. GoldenPay is a company specializing in e-payments. The company expects to put 10 percent of its shares on a public offering. “At present, the preparation process is underway,” Azizov said. “Various consultations are being conducted with professional market participants and the State Committee.” Earlier it was reported that the first IPO in Azerbaijan may take place by late 2013. Preparation for a public offering includes various procedures, including a financial audit. Moreover, it will be necessary for the company to re-register from a Limited Liability Company to Open Joint Stock Company for an IPO. An education center under State Securities Committee will also be established by the end of the year.

“The center will start working in 2014,” Azizov said. Azizov went on to note the first investment fund in Azerbaijan will be licensed in 2014. “This is a very complex and multi-staged process, the implementation of which requires a lot of time,” Azizov said. Head of the licensing and control department under the State Committee for Securities Farid Rahimli said the licensing process for the future investment fund is currently underway. The Azerbaijani State Securities Committee issued a license for the activity of İnvest Az Asset Management Company in asset management in late August. Permission was granted for five years. “Earlier, the State Committee issued the appropriate license to the management company. Moreover, we have had one formal and several informal requests for getting licenses for investment funds,” Rahimli said. Rahimli also said interest in the collective investment schemes is growing in the market. “The investment funds are a radical innovation for the Azerbaijani market, as well as in preparing management companies and investors,” he said. “Time has passed. The market is now ready for such institutions in Azerbaijan.”



Saudi Arabian delegation will discuss trade and investment issues in Baku within the third session of the Joint Commission between Saudi Arabia and Azerbaijan. The third session of the Joint Commission on Cooperation in the economic, trade, investment, technical, cultural, sport and youth spheres between Saudi Arabia and Azerbaijan will take place in Baku on December 10-11, Saudi media reported. Samir Maliki, first secretary at the Azerbaijan Embassy has said the 60-member Saudi delegation will be led by Abdullatif Al-Othman, governor of the Saudi Arabian General Investment Authority (SAGIA). According to him, on the Azerbaijan side, Shahin Mustafayev, minister of economic and industry and co-chair of the commission, will lead the country’s delegation. Earlier, Azerbaijani Ambassador to Saudi Arabia Rasim Rzayev stated that Azerbaijan and Saudi Arabia have concluded 12 agreements between them, while 10 more deals are expected to be signed in the near future. He said four Saudi companies from various fields operate in Azerbaijan, including oil and gas sectors. Rzayev also said Saudi Arabia is one of the first countries that provided active humanitarian assistance. According to him, from 1994-1999, Saudi Arabia, starting with the program under King Fahd, has been repeatedly providing humanitarian as-

sistance to refugees and IDPs and provided them food, medicine and other necessities. He added that several disabled persons of Karabakh war were treated in Saudi Arabia in 1999. The Saudi Kingdom, represented by the Saudi Fund for Development (SFD), provided Azerbaijan with a financial assistance for various projects. In 2002, within the framework of projects for the construction of secondary schools in Baku, SFD had extended a loan amounting to SR35.7 million to Azerbaijan. In 2005, the Saudi government provided financial assistance worth $50,000 for de-mining operations and also rehabilitation of people in the liberated territories of the country. Azerbaijan, in 1992 established diplomatic relations with the Kingdom, which was one of the first countries to recognize the independence of Azerbaijan. In 1994, the Azerbaijani Embassy was opened in Riyadh, followed by the Embassy of Saudi Arabia in Baku in June 1999. Armenia occupied over 20 percent of Azerbaijan’s internationally recognized territory, including Nagorno-Karabakh and seven adjacent regions, after laying territorial claims against its South Caucasus neighbor that caused a brutal war in the early 1990s. Long-standing efforts by US, Russian and French mediators have been largely fruitless so far. As a result of the military aggression of Armenia, over 20,000 Azerbaijanis were killed, 4,866 are reported missing and almost 100,000 were injured, and 50,000 were disabled.


September compared to 5.12 billion cubic meters in January-Sep-

tember 2012. The company reported that it produced 557.3 million cubic meters of gas in September compared to 551.2 million cubic meters in the same period of 2012. SOCAR produced 7.46 billion cubic meters of gas in 2012 compared to 7.08 billion cubic meters in 2011. According to SOCAR, some 29 billion cubic meters of gas was produced in the country in 2012, compared to about 26 billion in 2011. SOCAR includes the Azneft production associa-

tion (company producing oil and gas onshore and offshore) and the Azkimya production association (chemical industry) and Azerigaz production association (gas distribution). Moreover, SOCAR includes a number of processing enterprises, service enterprises and institutions engaged in geophysical and drilling operations.



zerbaijan’s gas export potential will reach 40-50 billion cubic meters by 2025, head of Azerbaijan’s state energy company SOCAR said on November 21. Speaking at a press conference held within the Atlantic Council’s fifth annual Energy & Economic Summit, Rovnag Abdullayev said that the volume of investment made in Turkish economy will reach $20 billion by 2023. He went on to note that construction of the Trans Anatolian Pipeline (TANAP) will start in 2014 and, at the first stage, the volume of gas transported through this pipeline will be 16 billion cubic meters. “In the future, the possibility of increasing the gas supply through TANAP to 30 billion cubic meters will be considered,” Abdullayev said. The SOCAR head also said that the gas produced in Iran, Iraq, and Israel may be transported via this pipeline. TANAP is able to meet Europe’s gas needs, and discussions on TANAP partnership will be held with British BP, Norwegian Statoil, and French Total, he said. The TANAP project, jointly developed by Azerbaijan’s SOCAR, Turkish state pipeline companyBotas, and energy company TPAO, will deliver Shah Deniz gas to the Turkish-Greek border from eastern Turkey. TANAP will connect to the Trans Adriatic Pipeline (TAP) on the TurkishGreek border. According to Abdullayev, Azerbaijan’s gas reserves are more than three trillion cubic meters which helps the development of the country’s export potential. Touching on the Star refinery which is being constructed in Izmir, Turkey, the SOCAR head said that his company will allocate $2 billion from its budget to the implementation of this project.

The Star refinery’s processing capacity is projected at 10 million tons of crude oil, and it will be capable of refining such oil grades as Azeri Light, Kirkuk and Urals. Speaking at the press conference, BP Azerbaijan Vice President for Shah Deniz Al Cook said that the natural gas which will be produced within the Shah Deniz Stage 2 development will be sufficient for all the countries of the Southern Gas Corridor. According to him, the final investment decision of the Shah Deniz consortium on this project will be made public on December 24. Some 16 billion cubic meters of gas will be produced in the Shah Deniz Stage 2 development and exported to the energy markets. This figure will be increased by one billion cubic meters per year. The Atlantic Council’s fifth annual Energy & Economic Summit kicked off in Istanbul on November 21. The main topics on the agenda of the summit include global and regional energy security, diversification of energy routes, ansd energy and stability. Ministers, business leaders, and industry experts participated in the summit. The keynote speakers at the opening session of the summit were Turkish President Abdullah Gul, Turkish Minister of Energy and Natural Resources Taner Yildiz, and Grand Duke of Luxembourg Henri. The two-day summit also features keynote addresses by U.S. Secretary of Energy Ernest Moniz, former U.S. Secretary of State Madeleine Albright, and former U.S. National Security Advisor Stephen Hadley among the notable participants. The two-day event features more than 300 policymakers and CEOs representing more than 40 countries.



nvestments by U.S. stakeholders in the non-oil sector of Azerbaijan amounted to $880 million in the period of bilateral cooperation, the head of the Azerbaijan Export and Investment PromotionFund (AZPROMO) Rufat Mammadov said on the eve of the Azerbaijan-US business forum in Baku on November 25. Representatives of major American companies have arrived for the business forum organized by the Azerbaijan Export and Investment Promotion Foundation (AZPROMO) with the support of the Economy and Industry Ministry and a trade mission of USA companies operating in Turkey. With 220 companies backed by U.S. investment operating in Azerbaijan according to Mammadov, the forum is aimed at further augmentation of economic cooperation. “It is about an increase in trade and development of investment cooperation. The event is being attended by more than 70 entrepreneurs from both countries. In general, the forum will discuss the potential for cooperation in various fields- such

as energy, the chemical industry, household appliances and other areas,” Mammadov stressed. According to the State Customs Committee (SCC) of Azerbaijan, in January to October of 2013, trade turnover between Azerbaijan and the United States amounted to $1.19 billion. In this period, Azerbaijani products worth $311.52 million were exported to the U.S., while imports from the U.S. into Azerbaijan amounted to about $877.17 million.


ARMENIA December 02, 2013 #32

caucasian business week



he council of the Central Bank registered the “Export insurance agency of Armenia” Closed JointStock Company. As “Armenpress” was informed from the service of the Public Relations of the Central Bank, “credit insurance” class license of non-life insurance realization was provided for the company. The government of the Republic of Armenia at

the course of the session held on October 17, decided to establish “Export Insurance Company” Closed Joint-Stock Company. The total capital of the company was defined 1 billion 950 million AMD, of which 1 billion 500 million AMD as authorized capital, which corresponds to 150 thousand ordinary shares, each with 10 thousand AMD nominal value, and general store of the company 450 million AMD.



he volumes of the rice imported to the Republic of Armenia during the months of January-September 2013 have increased by more than 11% in comparison with the same period of

the previous year and made 7 thousand 814,2 tons. According to the data provided by the State Revenue C ommittee of the Government of the Republic of Armenia, during the first nine months of the previous year more than 7,000 tons of rice was imported to our country. Armenpress reports that the major part of the rice imported to the Republic of Armenia during the months of January-September 2013 was from Thailand (3367,6 tons), Pakistan (2439,5 tons), Vietnam (801,9 tons) and India (635,7 tons). The average customs value of one kilogram of the imported rice made $0,66 (270 drams) in comparison with the $0,63 in 2012.



ew hotels open their doors to the tourists in Armenia. Nine new hotels will be inaugurated in our country in 2014. The Head of the Tourism Department of the Ministry of Economy of the Republic of Armenia Mekhak Apresyan stated this in a conversation with “Armenpress”. In addition Apresyan noted that the Armenian branches of international networks will also be

introduced among the new hotels. Among other things the Head of the Tourism Department of the Ministry of Economy of the Republic of Armenia Mekhak Apresyan underscored: “It is considered to open Windham hotel in the Avan administrative region in spring. The new building of the Regineh Hotel will be opened along with the new section of Marriot hotel.” Currently there are about 200 hotels functioning in Armenia.



he Public Services Regulatory Commission of the Republic of Armenia approved the decision on selling the belongings of “Vorotan Complex HPP” CJSC to American Contour Global company. The decision was made at the course of the extraordinary session of the Public Services Regulatory Commission of the Republic of Armenia, which was held on November 27. In a conversation with “Armenpress” the Press Secretary of the Public Services Regula-

tory Commission of the Republic of Armenia Mariam Stepanyan noted that the decision will come into force after it is signed by the Chairman of the Commission. The design work of Vorotan Complex began in 1954, and in 1961 the actual construction started. In December of 1970 the firstling – Tatev power plant – was put into operation, followed by Shamb HPP in 1978 and Spandaryan station in 1989. The cascade has four reservoirs and a daily runoff pond. The general plan of Vorotan Complex: former Gorhayk and Tsghuk villages host Spandaryan –the upper reservoir of the cascade. One step down the cascade Angeghakot dam is built, forming Angeghakot reservoir. Water is sent from this reservoir by free-flow tunnel into Tolors reservoir, fed by Sisian and Ayri tributaries. From Tolors reservoir water is supplied to Shamb HPP by a power tunnel. Below the station Shamb reservoir is built with its spillway – a unique structure that has been named “Daisy”. From Shamb reservoir water reaches the daily run-ff pond through a free-flow tunnel, from where it’s sent to Tatev station by a penstock.



he first free economic zone created in Armenia already has about ten beneficiaries in high technologies, biotechnologies, etc. European companies will soon start their activities next to the American, Russian, Belarusian resident companies. The organizer of the free economic zone created in Armenia, the Executive Director of Si-

tronix Armenia Armen Khachatryan told Armenpress that about 7-8 companies have submitted applications to the Ministry of Economy and are waiting for the approval. “The creation of the free economic zone is a great impetus for the foreign companies to expand their business in Armenia. When it starts functioning, more than 5000 people will be provided with jobs”, - said Khachatryan.



rmenian beekeepers are ready to agree on the honey export issue with the Europeans. The President of the National Beekeepers Association of Armenia Telman Nazaryan told Armenpress about it. The beekeeper reminded that in Armenia 300 grams of honey is produced per person annually, but the people do not use it very actively. According to Nazaryan, 400-500 tons of honey annually can be exported to the European coun-

tries from Armenia and the Nagorno Karabakh Republic. “60-70% of the bees in Europe have died in the recent years. The Europeans like eating honey and have money to buy it”, - said the President of the National Beekeepers Association of Armenia. During the months of January-September 2013 6,2 tons of honey were exported from the Republic of Armenia, purchased mainly by China, Russia and the United States of America.



he World Bank sees four ways for creating jobs in Armenia and safeguarding self-sufficient growth. Those ways are improvement of investments, creating jobs in the private sector, improving competitiveness in the market, and increase of connectivity with the world. As reports “Armenpress” Senior Economist at the World Bank, the co-author of the report titled “Republic of Armenia: Accumulation, Competition, and Connectivity” Gohar Gyulumyan stated this at the course of the press conference held on November 27. First, higher investment and better financial intermediation between savers and investors would boost growth. The report suggests building the capacity of SMEs to access credit, improving collateral registration, promoting expansion of microfinance, expanding services (i.e. hedging, factoring, leasing), and building awareness around these financial products. Improving the curricula of professional education by engaging the employers as part of strong quality assurance mechanisms would boost employment. Instituting strong on-the-job learning

options would increase the adaptability of workers, adding to the vitality of the firms. Third, stronger competitive pressures in the markets for goods and services would improve incentives for companies to innovate, adopt new technologies, and become more efficient. Competition is thus of crucial importance for the dynamism of the economy. Pro-competition reforms and effective implementation of antitrust rules can lead to significant productivity gains and consumer savings. Finally, the report calls for enhancing connections of the landlocked Armenian economy with world markets, including through land, air, and through internet and communication technologies, as that would contribute to efficiency gains and competitiveness.



he delegation of the State Revenue Committee of the Republic of Armenia led by the head of the Committee Gagik Khachatryan on November 19-20 participated in the regional conference of the World Customs Organization entitled “Economic Competitiveness” which was held in Abu Dhabi city of the United Arab Emirates.

“Armenpress” was informed from the Department for Mass Media and Public Relations of the State Revenue Committee of the Republic of Armenia that at the course of the conference the participants discussed the recorded achievements towards the harmonization of the customs procedures, the challenges emerging on way to harmonization taking into account the thesis of the revised convention of Kyoto.



he Republic of Armenia exceeds Australia with the indicator of the trade turnover with the Russian Federation and is close to Argentina. Armenpress reports that during the months of January-September 2013 the total Armenia-Russia trade turnover indicator ($908,1 million) exceeded the indicators of Portugal ($830,8 million), Australia ($632 million), Chili ($558,9 million), Tajikistan ($552,6 million), Georgia ($427,2 million), Peru ($347,3 million),

New Zealand ($341,9 million) and other countries. During the nine months of the current year the export indicator from Armenia to Russia made $239,7 million. With its export indicator to Russia our country exceeded New Zealand, Turkmenistan, Tajikistan, Hong Kong, Kyrgyzstan, Georgia, Cyprus and other countries. With its import indicator from Russia, Armenia exceeded Canada, Mexico, Argentina, Norway, South African Republic and other countries.



rmenia will export new batch of wine to the Chinese market in December. The Director of the Armenian Development Agency Robert Harutyunyan stated this in a conversation with “Armenpress”. Among other things the Director of the Armenian Development Agency Robert Harutyunyan underscored: “The new batch of wine will be

send by the beginning of December of the current year. The batch measures 20 tons.” In addition the Director of the Armenian Development Agency Robert Harutyunyan noted that he is confident that there are serious opportunities for the development of wine-making in the Republic of Armenia and the new market will enable us to expand the production. armenpress



iev’s decision to shelve the EU deal sparked protests and accusations that it was political. But looking at the details of the deal and the state of Ukraine’s economy, it’s clear that Kiev had pragmatic reasons not to rush into the EU trade zone. Kiev’s 11th-hour U-turn to halt its preparations for signing a European trade and political agreement did not come out of the blue – it was preceded by long negotiations with the EU. Ukrainian officials said repeatedly that the country would inevitably face substantial losses if Russia would close its borders to Ukrainian goods and restrict bilateral trade. As the EU failed to offer immediate benefits that would cover such losses, Kiev deemed it necessary to suspend the talks. 1 NO FINANCIAL GUARANTEES While Brussels has been demanding political and economic concessions from Kiev, it did not provide any financial guarantees. Ignoring the Ukrainian government’s concerns of an $8 billion loss before the end of this year, the EU offered Kiev 1 billion Euro ($1.36 billion) aid. And even that amount, which has been dubbed “ridiculous” by Polish MEP Pawel Zalewski, was accompanied by demands to decrease budget deficit through potentially socially destabilizing cuts. “The IMF position presented in the letter dated Nov. 20 was the last straw,” according to Ukraine’s Prime Minister Nikolay Azarov. The painful credit terms laid out by the IMF would have meant doublingutility bills, as well as freezing salaries. “We understood that we should expect help from nowhere, we can’t leave our people without salaries and pensions, and we were bound to make a pause,” Azarov said. “I think it became clear to Ukrainian President Yanukovich that if he signs that deal, he is not going to get anything financially from the EU. There will be just talk about democracy, a zone of political stability andhuman rights. He is not going to get any money from the EU and he was going to lose a lot of money, because Russia would protect its market,” political analyst Dmitry Babich told RT.

December 02, 2013 #32

tests. This is pressure and blackmail,” Putin said at a joint press conference with Turkish Prime Minister Recep Tayyip Erdogan.

2 TRADE LOSSES If Ukraine becomes a part of a free-trade zone with the EU, Russia would have to seal its “pretty open” border with its neighbor, for the fear of a flood of uncontrolled and untaxed goods that would ruin Russian industries. Stressing that the problem has purely pragmatic, economic roots, Vladimir Putin went as far as saying the situation “could kill whole sectors of the Russian economy,” including agriculture, aircraft and car manufacturing among the potential losses. To protect its home-grown goods that risk being swept away by the European trade influx, Russia spent some 17 years negotiating with the World Trade Organization (WTO), Putin reminded on Friday. The trade and customs relations with Ukraine are currently based on entirely different set of rules with literally “zero export-import tariffs”, he said. At the same time, for Kiev the EU market will hardly be a substitute for the Russian market, as Ukrainian goods would not be as competitive in the Eurozone. Currently, over a quarter of Ukraine’s exports go to Russia. Moreover, Ukrainian producers would find themselves facing increased competition from European imports, prompting a number of experts to suggest that a range of domestic industries would fail to survive European integration. The prospect of large trade losses adds to the economic woes being experienced by Ukraine, which is currently in recession. Kiev is also strug-

gling to pay off IMF loans, and hopes to secure new $15 billion bailout package. According to financial analyst Eric Kraus, it could slip into default in 2-6 months’ time. Moody’s rating agency has also put Ukraine at a “very high default risk” and depreciating currency reserves with a massive deficit means it could be the next Greece or Cyprus. These are the reasons why EU’s trying to attract Ukraine without giving it big and easy loans. But according to Babich it’s “just not realistic” to think Ukraine could be seduced without more being put on the table. It is also in contrast with previous cases of the EU giving such loans to member state candidates and is hardly comparable to the amount of financial aid channeled to southern European member states like Greece. Worse still, instead of offering Ukraine a helping hand, the EU clearly indicated it will not abstain from the political pressure by demanding the release of the imprisoned Yulia Tymoshenko, the former Ukrainian Prime Minister jailed on the charges of abuse of power during gas negotiations with Russia’s Gazprom. The allegations of political threats by the EU were voiced at the top diplomatic level, with Russian President Vladimir Putin accusing the European block of “blackmail” earlier on Friday. “When we heard (I just found out yesterday) that Ukraine has suspended – not canceled but suspended – negotiations with the EU and wants to review everything, we heard a threat from the EU to Ukraine up to the point of holding mass pro-

3 GAS PRICES Other demands that scared off Ukraine from rushing to the EU had to do with gas prices and tariffs for domestic consumers. The International Monetary Fund (IMF) recently imposed a demand to drastically increase the gas bills of Ukrainians while freezing the salaries at the current level and doing additional budget cuts – something which the Ukrainian Prime Minister Nikolay Azarov has called “the last straw”in EU talks. Apparently referring to Kiev’s expectations that the EU will help negotiate the new IMF credit, Azarov said his government “understood, that no help is within reach, that we cannot leave our people with no salaries and pensions, and so we had to take a break [in EU integration process].” Ukraine would have to increase domestic gas tariffs anyway, if it wants to join the EU, while it repeatedly had problems over late payments for the imported gas with Russia. The country has recently run into a gas debt of $882 million to Gazprom, although Ukrainian officials promised to pay it all back “by the end of the year.” Another piece of the gas puzzle is Ukraine’s gas pipelines, which are in decrepit condition. Gazprom has offered to buy the lines, an offer stateowned Naftogaz has so far rejected. Russia has said it won’t upgrade Ukraine’s rapidly aging pipe system, which delivers about a quarter of Europe’s Russian gas. Having received no promise of compensation for all the potential economic damages from aligning with the EU, Kiev now wants to create a threeparty commission with Brussels and Moscow to find a way to alleviate those losses. Russia is in favor of such negotiations, with Putin on Friday saying that he was not completely against Ukraine’s EU integration, but that such an issue, apparently affecting the Russian economy, should be discussed at three-way talks before any agreement is signed.



ussia’s Gazprom has broken ground on a $2.7 billion pipeline in Serbia, bypassing Ukraine and ensuring unhindered transport of Russian natural gas to Europe. The Serbian PM says it is “vital” and will create thousands of jobs making it an “energy hub”. The project is expected to be finished in 2 years and will employ 20,000 people in construction, gas storage, and energy plant industries, according to Prime Minister Ivica Dacic. “This is vital for Serbia’s energy safety ... Serbia will become an energy hub,” Prime Minister Dacic said Sunday, AP reported. It is part of the South Stream pipeline project to bypass Ukraine, which currently carries 50 percent of Russian gas exported to European markets. Supply disruptions have made Ukraine an unreliable transport partner. Russian President Vladimir Putin said at the ceremony that the section will turn Serbia into one

of the“key energy centers of Europe” adding that the pipeline is“expected to strongly consolidate international energy security.” “The construction project – unprecedented in scope – will help attract large investment to Serbia and other Balkan countries, create jobs and will favor further social and economic development,” by uniting Russia’s biggest natural gas deposits with major markets in Europe, Putin said. The section under construction will have the capacity to transport 40.5 billion cubic meters per year and stretches about 420 kilometers across Serbia. Serbia hopes the pipeline’s construction will boost economic development and strengthen international authority, said Serbian President Tomislav Nikolic in Belgrade. He also attended Sunday’s ceremony to launch construction. Nikolic said that South Stream was a symbol of progress and union of states and peoples, especially Serbia and Russia.

Russia’s Gazprom holds 51 percent of the joint venture, while Serbiagaz has 49 percent of the Serbian section. Gazprom is to finance the partners’ stake in the construction of both the Serbian and Bulgariansections of the pipeline. Gazprom has offered a loan on favorable terms “below the market,” said the head of the company Aleksey Miller, adding that the money is expected to be repaid with the fees received from gas transit. The trans-European pipeline with an underwater section across the Black Sea is expected to start operating in December 2015, shipping up to 64 billion cubic meters of gas annually to Bulgaria, Serbia, Hungary, Slovenia, and Austria and Italy in one direction and Croatia, Macedonia, Greece and Turkey in a second. “We will be part of a pan-European project; this is not just a Russian project,” Dacic said. Serbia hopes the cooperation will bring it strategically closer to both Russia and Europe.

As well as being a key energy partner, Russia has supported Serbia on political issues like Kosovo. Serbia also wants to join the European Union, but they have been at odds over Serbia’s stance on Kosovo. “We wish to unite our two strategic goals: partner relations with the Russian Federation and EU membership,’’ Dacic said, adding Serbia is also interested in improving relations with America. The prime minister explained Serbia’s close relationship with Russia was in part due to it not yet finding a strong strategic partner in the west. “Those (in the West) who criticize Serbia for its closeness to Russia and for our partnership with Russia, should ask themselves why they haven’t offered such relations to Serbia?” Dacic said. “I keep telling the West: Serbia needs a strategic partner in the West too ... But, they are not interested at all,” AP reported.


WORLD NEWS December 02, 2013 #32

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he eight biggest US banks, including JPMorgan and Bank of America may need to spend an extra $104 billion to settle mortgage-related issues. That’s two thirds of $154.9 billion banks’ reserves that they accumulated to stand the potential legal costs. The major US banks may have to pay an additional penalty of between $56.5 billion and $104 billion in potential mortgage payouts, according

to the rating agency Standard & Poor’s. “Notably, mortgage-related litigation has recently gotten a second wind and has expanded beyond investor claims,” S&P credit analysts led by Stuart Plesser wrote in a report. However, the lenders under fire have accumulated $154.9 billion in the form of a so-called “safety pillow”, expecting a new wave of indictments from investors wanting compensation for mortgage-backed securities made up of bad loans.

Earlier this month JPMorgan agreed final details of its record $13 billion settlement for selling “bad loans” before the US financial crisis. This is the biggest penalty of a financial firm in U.S. history. Meanwhile, a similar $8.5 billion settlement between Bank of America and 22 institutional investorshas been under consideration in a New York district court since June 2011, Reuters reports. The legal expenses have already affected the third-quarter profit of U.S. banks. The Federal Deposit Insurance Corporation (FDIC) reported that the total net income of its insured banks fell by $1.5 billion to $36 billion in the third quarter, which is the first year-on-year decline since the second quarter of 2009. JPMorgan was a big contributor in that decline. In October the bank reported its first loss since 2004, following a $7.2 billion penalty for mis-selling mortgagebacked securities. The negative impact of legal expenses on bank’s bottom line wont’ affect its ratings as the risks are already calculated into the equation. “Despite the substantial legal costs already incurred and the raft of new legal issues, we currently don’t expect legal settlements to result in negative rating actions for the U.S. banks with the largest legal exposure,” the S&P report said.



he Organization for Economic Cooperation and Development (OECD) is predicting that Greece’s economy will shrink further next year and that the government might need more financial help, AP reported. The think tank said the Greek economy would contract 0.4 percent in 2014, in contrast to the Greek government’s forecast for 0.6 percent growth. “Positive growth is projected only in the course of 2014, reflecting a slower decline of domestic demand and a pickup in exports,” it added. The government says the country will return to growth in 2014.



razil’s central bank has raised its benchmark interest rate to 10 percent from 9.5 percent, the sixth time in a row. The rise has taken the key rate to the highest level since March 2012, the BBC reported. Brazil has been trying to rein in inflation as consumer prices rose by 5.8 percent in October from a year earlier. The price hike was in part due to the fall in the Brazilian currency, with real falling nearly 20 percent against the US dollar since May this year.



pain’s third quarter GDP data shows the country’s two-year recession ended in the third quarter, as the economy grew 0.1 percent on a quarterly basis. The Instituto Nacional de Estadistica’s final GDP reading is in line with Spain’s Central Bank data for the period. On an annual basis, the economy contracted by 1.1 percent, compared to a 1.6 percent contraction in the second quarter.



ministerial meeting early next month could put final touches on the World Trade Organization’s first-ever global trade reform, Reuters reported, citing negotiators. The highly technical deal would streamline customs procedures and speed up trade around the world. The International Chamber of Commerce says the deal would add $960 billion to the world economy and create 21 million jobs, 18 million of them in developing countries. WTO directorgeneral Roberto Azevedo has vowed to sew up the deal in Geneva and not leave any negotiations for ministers to complete.


PRESENTATION caucasian business week

December 02, 2013 #32



ational Library hosted to presentation of the recently published book about architect Victor (Butza) Jorbenadze. “Butza” – it’s the name of the book dealing to one of the interesting periods of Georgian architecture – second half of the XX century, creation of the new millennium, threshold of the new epoch. Shota and Davit Bostanashvilis are authors of the book, which united ten books about the architect in this book. Name, face, house, palace, temple, story-teller, Homo Ludeens, Lena’s book and L/ena of the Book, K/vali (trace)and window, artifacts – are the books collected in one wonderful edition and reminded to reader, maybe introduced to many people Butza Jorbenadze – a man, a person, a professional, an artist, a friend and a teacher. Creative legacy of Butza Jorbenadze is really impressive – Ritual Palace of Tbilisi, Ilia’s Museum in Kvareli, Batumi Coastal Park design and plan concept, Rike Development project proposal; Cathedral of Georgia project proposal; hotel Racha (Oni), hotel Hereti (Lagodekhi), residential buildings in Tbilisi, Smolensk, Sochi and Yalta and many other works and buildings. The society attending the presentation among which, of coursearchitects and artists of various spheres prevailed, warmly recalled the friend and the colleague. Author of the book David Bostanashvili mentioned that writing about an architect, especially about the architect such as Butza Jorbenadze is an architectural work. “I no not think that any architect work needed so much responsibility, knowledge and professionalism. As creation of the book about an architect. Who knows, maybe our book, which rises another title – “ten books about the architecture” may be appeared carnival deconstruction of the old carnival”, - David Bostanashvili mentioned. VAKHTANG DAVITAIA – architect. Butza Jorbenadze, its a very well-known name and a famous face in Georgian architecture. Butza was a great

intellectual, a good expert of poetry, theater, cinema, art, literature and, of course, first of all servant of architecture. He was the architect with a very special vision. I think that despite such contrasts of out time, if Butza was alive, architectural process would have been better and different”. KETA KOBAKHIDZE, architect. “Victor was a distinguished person with its intellect and intelligence. His humanity, gift of people’s love and enormous love of his profession are the qualities, which made all meetings with him unforgettable”. ELDAR SHENGELAIA, film director. Butza was a wonderful architect. He was full of ideas. In that time, by the way, his ideas were not accepted; there was some kind of opposition. And I think that it happened because his creations preceded to the time very much. There were many debates and discussions about Butza’s works. But what Butza could do during that hard time, he did very good and very well”. “In relationships with Butza as if we seemed to be better. This mirror prolonged and illuminated us. Wherever Butza was, dialogue was there, culture was there, Butza was everywhere and stood “beyond good and evil”. With all classic charac-

teristics being a live embodiment of existentialism, he combined with vivifying pathos of civic spirit... Multilateral interests born in his thoughts, items and affairs sometimes remote in time and space, ideas and concepts, balagan sympathies and aristocratic inclinations, due to high erudition were divided from eclecticism threat and stood as an unity – it was Butza”. – It’s except from the book, which perfectly represents inner works of Victor (Butza) Jorbenadze, one of the outstanding representatives of architecture, for which his colleagues and friends especially loved him.

The book presentation was accompanied with the film about Butza Jorbenadze produced by documentalist Sasha Rekhviashvili in 2002. Book creation idea belongs to Mr. Irakli Kovzanadze. He also organized publishing this book, which was given as a gift to all participants of the event and maybe reminded to all that high level professionalism,aristocracy, perfect, refined human relation and just a good personality is not over with this world’s life. That kindness is infinite and power of goodness is the greatest one on the earth.


TBILISI GUIDE December 02, 2013 #32

Embassy United States of America Embassy 11 Balanchivadze St., Dighomi Dstr., Tbilisi Tel: 27-70-00, 53-23-34 E-mail:; United Kingdom of Great Britain and Northern Ireland Embassy 51 Krtsanisi Str., Tbilisi, Tel: 227-47-47 E-mail: Republic of France Embassy 49, Krtsanisi Str. Tbilisi, Tel: 272 14 90 E-mail: Web-site: 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: Republic of Estonia Embassy 4 Likhauri St., Tbilisi, Tel: 236-51-40 E-mail: Republic of Lithuania Embassy 25 Tengiz Abuladze St, Tbilisi Tel: 291-29-33 E-mail: Republic of Latvia Embassy 4 Odessa St., Tbilisi Tel: 224-48-58 E-mail: 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: Web-sait: 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: 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: 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: Ukraine Embassy 75, Oniashvili St., Tbilisi Tel: 231-11-61, 231-12-02, 231-14-54 E-mail:; 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: 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: 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: Web: Consulate General, Batumi Address: Batumi, Gogebashvili str. 32, Apt. 16

caucasian business week Kingdom of Spain Embassy Rustaveli Ave. 24, I floor, Tbilisi Tel: 230-54-64 E-mail: Romania Embassy 7 Kushitashvili St., Tbilisi Tel: 38-53-10; 25-00-98/97 E-mail: Republic of Poland Embassy 19 Brothers Zubalashvili St., Tbilisi Tel: 292-03-98 Web-site: Republic of Iraq Embassy Kobuleti str. 16, Tbilisi Tel: 291 35 96; 229 07 93 E-mail: 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: United Nations Office Address: 9 Eristavi St. Tbilisi Tel: 225-11-26/28, 225-11-29/31 Fax: 225-02-71/72 E-mail: Web-site: International Monetary Fund Office Address : 4 Freedom Sq., GMT Plaza, Tbilisi Tel: 292-04-32/33/34 E-mail: Web-site: Asian Development Bank Georgian Resident Mission Address: 1, G. Tabidze Street

Freedom Square 0114 Tbilisi, Georgia Tel: +995 32 225 06 19 E-mail:; Web-site: World Bank Office Address : 5a Chavchavadze Av., lane-I, Tbilisi, Georgia Tel: 291-30-96, 291-26-89/59 Web-site: 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: 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:

Hotels in Georgia TBILISI MARRIOTT Tbilisi , 13 Rustaveli Ave. Tel: 77 92 00, COURTYARD MARRIOTT Tbilisi , 4 Freedom Sq. Tel: 77 91 00 RADISSON BLU HOTEL, TBILISI Rose Revolution Square 1 0108, Tbilisi Tel: +995 32 402200 RADISSON BLU HOTEL, BATUMI Ninoshvili Str. 1, 6000 Bat’umi, Georgia Tel: 8 422255555 SHERATON METECHI PALACE Tbilisi , 20 Telavi St. Tel: 77 20 20, SHERATON BATUMI 28 Rustaveli Street • Batumi Tel: (995)(422) 229000 HOLIDAY INN TBILISI Business hotel Addr: 1, 26 May Square Tel: +995 32 230 00 99 E-mail: Website: 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: Website:

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



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December 02, 2013 #32

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