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BUSINESS WEEK May 26, 2014 #55
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May 26, 2014, Issue 55
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GEORGIA EXPORTS WITH EU INCREASED BY 50%
eostat informs that in January-April 2014 foreign trade turnover with EU countries equaled to $897 million, which is 14% more than the respective data of last year. Export amount has increased by 50$ in comparison with the same period last year and equals to $194 million.
DIRSI COMPLEX ON THE DUMP TERRITORY
Heydar Aliyev Foundation shows Azerbaijan’s dedication to creative spirit: First LadyPg. 11
BANK SECTOR COMPLETES JANUARY TO APRIL PERIOD WITH 120 MILLION GEL PROFITS
anking sector completed January-April with 120 million GEL profit (01/04/14 94,6 million GEL). Pg. 9
CIS KIEV OFFERS TO REPAY GAZPROM GAS DEBTS ‘IN 10 DAYS’ IF DISCOUNT PRICE GRANTED
kraine will pay back its staggering debts for Russian gas in just 10 days’ time – but only if Gazprom agrees to bring back the price agreed with ousted President Viktor Yanukovich for 2014, Ukraine’s coup-imposed PM said in his EU address. Pg. 10
AZERBAIJAN AZERBAIJAN’S BUSINESS OPPORTUNITIES PRESENTED IN U.S.
zerbaijani business and trade was presented at Ronald Reagan International Trade Center on May 20, the United States-Azerbaijan Chamber of Commerce (USACC) reported. Pg. 11
WORLD NEWS US ENERGY AGENCY CUTS MONTEREY SHALE OIL ESTIMATE BY 96%
he US Energy Information Administration (EIA) has cut the Monterey Shale oil formation estimate by 96 percent to just 600 million barrels from 13.7 billion, due to a lack of extraction technology. Pg. 13
Association Agreement will be signed by Georgia’s Prime Minister
Is it Safe For Health and Why There are no Selling on the First Floor APM TERMINAL PLANS INCREASE OF PORT-TERMINAL SERVICE TARIFFS
PM Terminal plans increase of port-terminal tariffs. According to decision of Poti port owner company APM Terminal, new increased tariffs will be enacted from June 1. As head of supervision board of East Gate Group Irakli Iashvili stated to GBC, APM already sent message to all terminal-logistic companies about possible increase of the fees. “It is a wish of APM to increase all 4 tariffs for the existing services. Fees increase considerably, from 20 to 40%, although we hope that Ministry of Economy will get involved and tariffs will not increase sharply. We avoided APM monopoly, to provide cargo entrance only to its terminal, although we can’t circumvent to cargo unloading service from the ships. I think company will not maintain status quo, although we hope that the tariffs will not increase so sharply”, - Irakli Iashvili states and mentions that tariff increase will
be reflected extremely negatively on the attraction of Georgian transport corridor and shipments. According to the information published on the website of international transport company WORLD EX, as a result of increased tariffs, service fee for one HC40 container increases by $50, respectively this amount will be distributed on the number of the cars in the container. In the case of 3 cars in the container, fee for 1 car will increase by $17, in the case of 4 cars in the container - by $13. Reminding that Poti port owner APM was going to enact a new regulation from May, according to which receipt of the containers brought by naval container lines will be prohibited to all container terminal, which automatically means exclusive receipt of the containers from the ships to the private terminal of APM Terminal of JSC Corporation Poti Port. Doe to protest of terminal companies and involvement of Ministry of Economy this regulation did not validate.
Alexi Petriashvili: After the signing of the Association Agreement, certain issues of trade relations might be revised Kakha Bendukidze to Work in Advisory Council at Gov’t of Ukraine Pg. 6
MAIN EVENTS caucasian business week
ASSOCIATION AGREEMENT WILL BE SIGNED BY GEORGIA’S PRIME MINISTER
eorgia’s Prime Minister Irakli Garibahsvili will be Georgia’s representative and sign the Association Agreement (AA) with the European Union (EU) on June 27. The Government’s Parliamentary Secretary, Shalva Tadumadze, announced the Government’s decision on who would sign the document at a special press conference at the Government’s Administration today. “Given the high public interest, yesterday’s cabinet meeting focused on the legal and practical issues of signing the Association Agreement and it was decided that on June 27, the Agreement will be signed by the Prime Minister,” Tadumadze said. The person who would sign the important document became a subject of discussion in Tbilisi, as some believed the Prime Minister should sign it as the head of the Government, while others argued the President should be the one to sign the agreement. President Giorgi Margvelashvili’s Foreign Adviser, Vano Machavariani said yesterday, the country’s Constitution read the President was a competitive person to sign the AA and Margvelashvili was ready for further discussions with the Government to make the best decision regarding the issue.
Today, Tadumadze said despite Article 73 of the Constitution claiming the President represented Georgia in foreign relations, he needed consent from the Government in such occasions. “The President would have been authorized to sign this type of agreement only if he had held negotiations about the issue. As negotiations with the EU had not been led by the President, as per Article 73, he lacks the power to sign the Association Agreement without the Government’s consent and subsequent counter-signing from the PM,” he said. Tadumadze explained that if the President signed the agreement, it would not be able to acquire legal force without the Prime Minister’s countersignature, which would lead to some confusion in the international arena. Additionally, he said the Government was in charge of executing obligations given by the AA, so its leader, the country’s Prime Minister, was also in charge to sign the document. Constitutional Commission member Levan Bodzashvili believed the AA should be signed by the President and the Prime Minister. He said a similar precedent was not provided by law or in practice, but at the same time, it was not prohibited. “Given that the document is of historic importance and will determine the irreversibility of the future political orientation of Georgia, and moreover, will create an obligatory legal environment that will be restrictive for future governments despite their foreign policy and political orientation, it would be reasonable if the agreement is signed by both the President and the Prime Minister,” Bodzashvili said. However authorities said it was not important which political figure signed the AA – what really mattered was Georgia would sign the AA with the EU.
GEORGIA’S PM GUARANTEES A PRESSURE-FREE BUSINESS ENVIRONMENT
eorgia’s Prime Minister is encouraging business sector representatives to band together to jointly overcome “the big challenges the country is facing” and promised businessmen the industry would not be subject to any form of pressure. Garibashvili said he had faith the Government could jump-start commerce in a more effective way by coordinating work with businesses and voiced his hope at his regular meeting with about 100 local and international businessmen operating in Georgia. At today’s meeting, held at the Radisson Blu Iveria Hotel, Garibashvili guaranteed he would not let anyone exert any form of pressure on businesses or interfere in businessmen’s activities. “Every businessman in Georgia is very respectable. After our Government came to power, businesses were freed from pressure and we are doing our utmost to create a completely free and competitive environment in Georgia once and for all,” Garibashvilisaid. “No businesses should be privileged. I, as the head of the Government, will not let anyone exert any form of pressure on you or interfere in your activities. I want to call on every businessman that if in any way there is a problem, you can appeal to a business ombudsman round-the-clock,” he said. Garibashvili said the goal of the Government was to create “the highest free competitive environment” and not create additional barriers for busi-
ness development. He believed the Government had done a lot of work to improve the business environment and create advantageous conditions for private sector development. He used the Competition Agency as an example of his claim, and noted it was an independent structure established for exercising effective state supervision over a free, fair and competitive market environment. “Local and international experts are in the process of discussing the legal acts for full-functioning of the Competition Agency,” he noted. He also noted the importance of developing the Enterprise Development Agency and banks have the opportunity to obtain agriculture lands. Garibashvili also presented the businessmen with the recently launched Government-funded 46 million GEL ($27 million USD) ‘Produce in Georgia’ project. He said this project would support the creation of new jobs and provide the country with additional income. The program was first presented on May 19 and will come into force on June 1. The program will initially support any entrepreneur who decides to create a new industrial or agriculture enterprise. Speaking about challenges of local economy, Garibashvili said problems still remained in tax administration and local producers still had not resolved the problem of defining industrial standards. In addition, natural losses and the tax dispute resolution mechanisms had to be improved, he said.
May 26, 2014 #55
RUSSIAN MFA ON EU-GEORGIA ASSOCIATION AGREEMENT
t is Georgia’s sovereign right to sign the Association Agreement with the EU, but it should also understand possible consequences, Russian Foreign Ministry spokesman, Alexander Lukashevich, said on May 22 and pointed at increasing Georgian exports to Russia. He also said that country’s sovereign rights should be exercised without damaging the rights of others and mentioned Georgia’s NATO aspiration in this context, adding that Moscow was “alarmed” by Georgian Defense Minister’s recent remarks made in Washington. Asked during a press conference in Moscow if upcoming signature of Georgia-EU Association Agreement can become a stumbling block in normalization of ties between Tbilisi and Moscow, Lukashevich responded: “We of course respect the right of any nation to choose its way and perspectives of joining this or that international format.” But then he also added that in this particular context “it is very important to understand consequences to which the upcoming signing of the Association Agreement between Georgia and the EU on June 27 may lead.” “It concerns both our bilateral [Russian-Georgian] relations and financial-economic consequences, which we will have to elaborate by taking into account Georgia’s joining the EU [Association] Agreement,” the Russian Foreign Ministry spokesman said. He pointed out that Russia has recently become Georgia’s third largest trading partner, which, he suggested, is indicative of an important trend. “While taking any step any state has to calculate not only benefits, which may be gained through interaction with any international organization, but also has to think about steps, which other countries having bilateral agreements with this state, will have to take,” Lukashevich said. “It should also be remembered that the sovereign rights of any state have to be exercised without damaging the rights of others,” he continued. “For example, some politicians in Georgia aspire joining NATO at any cost without thinking that it may damage security of other states.” “In this context we have been alarmed by statements made by Georgian Defense Minister [Alasania] in Washington, calling for deployment of American or NATO anti- missile systems in Georgia,”
“In this regard questions inevitably arise towards Tbilisi about its real intentions and from whom these systems, if deployed, should protect the Georgian territory,” Alasania said in Washington on April 30 that in response to Russia’s actions in Ukraine, NATO allies should deploy “defensive assets” in Georgia. He saidthat air defense and anti-armor capabilities are “something we need to put in Georgia and Russians will understand that you are serious.” Speaking at a joint news conference after meeting in Brussels on May 21, Georgia’s PM Irakli Garibashvili and President of the European Commission José Manuel Barroso said that Moscow assured them it would not hinder signing of the Association Agreement between Georgia and the EU. Asked about Russia in the context of upcoming signature of the agreement, the European Commission President responded that he and President of the European Council Herman Van Rompuy “explicitly” told Russia’s President Vladimir Putin, when the latter visited Brussels in January, “not to disturb” negotiations and agreements that the EU was preparing with Georgia. Barroso said that Putin “promised” that he would not. “So we expect the Russian authorities to fully respect the sovereign right of Georgia to conclude the agreement with the European Union,” Barroso added. Responding to the same question, PM Garibashvili said: “I am more than confident that we will sign the Association Agreement without any complications, without any problems.” The Georgian PM also said that Russia’s Deputy Foreign Minister Grigory Karasin told Georgian special envoy for relations with Russia, Zurab Abashidze, that Moscow has no intention to interfere in the process of signing the Association Agreement between Georgia and the EU. During the press conference in Moscow, Russian Foreign Ministry spokesman also said on May 22 that Moscow is “quite satisfied with the results achieved” in frames of a dialogue between Russia’s Deputy Foreign Minister Grigory Karasin and Georgian PM’s special envoy for relations with Moscow Zurab Abashidze He said that next meeting between Karasin and Abashidze is scheduled for July, but exact date has yet to be set.
AFTER THE SIGNING OF THE ASSOCIATION AGREEMENT, CERTAIN ISSUES OF TRADE RELATIONS MIGHT BE REVISED ALEXI PETRIASHVILI
hese types of statements do not concern us; on the contrary, they make us stronger, State Minister for European and Euro-Atlantic Integration Alexi Petriashvili said in response to Russia’s official representative Alexander Lukashevich’s statement. He said that the Defence Minister of Georgia is obliged to raise the issue of equipping Georgia with defense capabilities. ‘’In 2008 Russia conquered more than 20% of Georgia’s territories and deployed troops on our land - Abkhazia and the Tskhinvali region. Daily, like Somali pirates, the Russian soldiers abduct civilians from the Georgian-controlled areas, erect barbed wire fences, and do not let people approach their ancestors’ cemeteries. In 2014 Russia annexed Crimea and Sevastopol and continues destructive practices on the territory of a sovereign state - Ukraine. Rightly for these and other reasons, when the occupation forces are standing 40 kilometers away from the capital, the Defense Minister is obliged to raise the issue
of equipping Georgia with defense capabilities,” Petriashvili said. According to him, import of products from Georgia to Russia does not really represent a humanitarian gesture of goodwill or good behavior from the Russian side. “Nobody can frighten Georgia with embargos today. The European Union’s readiness to extend full assistance and support are increasingly reflected in specific actions. It will be so in the future too,” says Petriashvili. He said that after the signing of the Association Agreement, certain issues of trade relations might be revised. According to him, Gharibashvili will sign the Association Agreement in the presence of leaders of the 28 EU countries on June 27. ‘’These types of statements do not concern us; on the contrary, they make us stronger and our friends more sober. Success is near and we will necessarily celebrate the signing of the Agreement on the 27th of June’’, the State Minister for European and Euro-Atlantic Integration said.
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PUBLICITY May 26, 2014 #55
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e are pleased to inform you that we are now at an advanced stage of preparing the Caucasus Healthcare Infrastructure & Pharmaceutical Summit, set to take place in Tbilisi on 18 and 19 June 2014. Euroconvention Global is delighted to invite you and your colleagues to take actively part into this conference and exhibition. An opportunity to get first hand information from policy makers and other private sector decision makers on recent development and opportunities in the sector. Networking time to enable one-to-one business to be initiated or contracted has been built into the program as well. Your peers and other key players in the healthcare infrastructure, medical technology and pharmaceutical industries will be attending, along with investors, banks, consultants, legal advisers, designers and constructors. A 2-day unique update on the Caucasus healthcare industry Healthcare policy makers, European professional associations, pharmaceutical regulators, International Financial Institutions and a select number of private sector speakers will participate in the various panel sessions, covering topics such as: 1. Overview of the healthcare sector in the Caucasus - reforming, innovating, investing 2. Pharmaceutical market - further growth, export, R&D, capital investment 3. Legal and regulatory environment for the pharma industry - status and best practices 4. Hospital build & sustainable healthcare delivery services - project finance & growing role of PPP 5. Advanced medical technology, innovative equipment and e-health solutions 6. Financing of the healthcare in the Caucasus and sustainability of health program 7. New opportunities for the insurance sector 8. Long term opportunities for investors in the new health projects Early Bird discount for registrations currently available! The detailed agenda and registration form are available upon your written inquiry to: firstname.lastname@example.org As CBW Readers, please note that you are benefitting from a 20% discount on all registrations and corporate packages. Simply quote â&#x20AC;&#x2DC;CBW-CHSâ&#x20AC;&#x2122; to apply the discount. Sponsorship, speaking opportunities and exhibiting at the Summit The Georgia, Azerbaijan and Armenia healthcare markets are offering significant business development opportunities. If you consider having a pro-active participation in the Summit, this unique industry gathering for the Caucasus will provide your company with an excellent occasion to raise your profile, to highlight your expertise or to showcase your product/service. Please ask for sponsorship/corporate packages available and I will be at your attention for any further clarification or to tailor together a package in line with your budget. We can speak at your earliest convenience to discuss the best format of presence for your company, whether you are interested in delegate registration(s), a speaking slot in the program, logo branding, a display stand space in the Summit foyer, etc. I look forward to hearing from you. Kind regards, Francis Smith Event Director Euroconvention Global; Avenue du Perou 84; 1000 Brussels - Belgium; Tel.: +32 2 662 16 12
INTERVIEW caucasian business week
May 26, 2014 #55
CENTER OF ECONOMIC DEVELOPMENT: THERE IS A NEGATIVE TREND IN 10 YEARS An interview with the founder of the NGO Center of Economic Development Roman Gotsiridze
- How do you assess the improvement of the growth rate of the Georgian economy in 2014? - In general, the economic situation is difficult, despite the growth. This does not involve any dramatic gains or breakthroughs in economic policy. The growth of the economy can only be welcomed, but the problem is that last year the growth was so low, that on this background the current indicators look convincing. However, in any case, economic growth by itself can only be welcomed. There is another point - government expenditures still play an important role in the economic growth, for example, in agriculture. Private sector and business activity is not a factor of growth. In general, it will be fine if growth continues at the level of 5% per year. International organizations predict growth within these limits on the basis of internal potential of the country and from external factors.
For instance, the situation in Ukraine is a negative external factor, which is one of our main trading partners. Both exports and imports suffer from it. The growth of tourists from Ukraine may be a positive factor, due to the decrease of tourist flow in the Crimea- it is known that 65% of tourists were Ukrainians, and now they have to go on holiday in other countries. If at least 5% of this flow comes to Georgia, it would be a serious compensation of losses connected with Ukraine in other industries. - Do you think that economic growth is predetermined by government subsidies, and it is not very good? - Of course. Public investment is a temporary phenomenon. When we talk about economic growth, we should not forget two things - the failure of the budget which led to the depreciation of GEL in November-December 2013. The second is that the NBG lost 470 million USD of reserves in order to stabilize the exchange rate. This is the most negative result of 2013. It takes many years to accumulate half a million dollars of reserves. Now the main question is how the year 2014 will finish, as there is a very negative trend in nearly 10 years - for several months the National Bank of Georgia practically has not been buying the currency, whereas in 2013 in total 200-300 million USD were purchased. It’s good, of course, that GEL does not fall and manages to maintain its stability, but it is bad that the trend has clearly changed - previously, the National Bank bought more foreign currency than sold, now - on the contrary.
REPORTS SAY KARTU BANK WAS PURCHASED BY BUSINESSMEN SHOTA SHALELASHVILI, GIA MIKELADZE
eports say the Kartu Bank was purchased by businessmen Shota Shalelashvili and Gia Mikeladze. Official information about the purchase will be published in ten days. InterpressNews called Nodar Javakhishvili, the Chairman of the Supervisory Board of the bank, to check the information, though he did not confirm the report. ‘Of course, it is not true. The fact of a sale will not be hidden. I have repeatedly said and I am repeating now that the issue is being negotiated. You will be informed about the sale if it happens. It needs consent from the National Bank, etc. So, at least two months earlier you’ll be aware of it’, Javakhishvili said.
KOREAN COMPANY K WATER IN TALKS REGARDING HPP CONSTRUCTION IN GEORGIA
he delegation of the Korean National Water Company KWater headed by its President is paying a working visit to Georgia, in the frames of which negotiations are held with representatives of the Partnership Fund regarding the construction of the hydroelectric power station on the river Neskra in a mountainous region of Svaneti. “The construction of the hydroelectric power station will not cause problems standard for power facilities such as the need for resettlement of local residents, the flooding of the territories, etc. The capacity of Neskra HPP amounts to 210 MW, production will amount to 1.3 billion kW/h and after
its introduction into operation Georgia will be able to get a guaranteed energy supply in winter and in summer it will be able to sell electricity. The cost of the project is 600 million USD,” – President of the Fund Irakli Kovzanadze says. The Korean company owns assets in the amount of 20 billion USD, its annual turnover makes up 1.7 bln USD. After the establishment in 2006 K Water is engaged in water resources management and water supply in South Korea. The company owns dams, water systems. It also implements large international projects, expect for South Korea, works in Colubmia, India, Afghanistan, China and Pakistan.
This shows that the country does not receive investments. The capital is not invested in new projects, which in itself is bad. The budget is also deficit and it is replenished at the expense of domestic debt of 600 million. In general, this year the government borrows 1.5 billion GEL and this is a very bad indicator. Budget remains the main challenge. November and December are risky. Five months of 2014 passed and only 3 billion from the 9 billion budget have been spent, that is, we are dealing with irregular implementation of the plan. In the last quarter of the year large sums will be issued, and the National Bank, as well as last year, will have to go on major intervention. We’ll not have this luxury in 2014 because of problems in the replenishment of the reserves of the National Bank. - How do the government’s economic development policies and large social costs taken by the government tie together? - Today we have a policy aimed to solve economic problems with the help of budget expenditures. This is a very wrong way, because our budget has no such resources. The budget envisages not only social expenditures, but also the intensification of business, and processing of land by peasants, various subsidy programs, promotion of local production, cheap loans, etc. The idea of establishing the State Development Bank is also obscure, as it will fund projects unprofitable for the state, during the previous government 71 companies were founded and only 15 are operating now. Today unprofitable enterprises worth 500 mil-
lion GEL will be sold but I am sure that their privatization will not bring 10% of these costs. In fact, the state spent their money extremely inefficient, and if businessmen had involved in these projects, the result could have been different. That is, we have a socially oriented policy in conditions when it will not have enough funds. The government tries to solve the problem offering inadequate projects, which, moreover, are implemented on borrowed money. Before the elections all like to use numbers - 100 new companies, 100 new hospitals, etc. And why did no one initiate a program of million toilets? Does it sound undignified? But we are talking about tourist country where more than half of the population live without sewerage system, in rural areas. - What will be the economic effect from the creation of the Development Bank? Will it play a role in economic development? - The bank will be unprofitable, will go bankrupt, and all companies or enterprises, which will be created through it, eventually will be sold at a lower price. The government should cease to fund business projects. It should deal with infrastructure, education, health, etc. - How do you assess the government jobs program? - The employment rate will not grow until the government continues financing of arable works and doing something similar. Jobs are not created for budget money. They are created by business, and the government has no policy on business development.
IRANIAN LARGE BUSINESS DELEGATION TO VISIT GEORGIA IN AUGUST
visit of large Iranian business delegation in Georgia is scheduled for August. A member of the Board of Directors of the Georgia- Irania Chamber of Commerce and Industry states “Commersant” that the strengthening of the trade and industrial relations between the countries enters an active phase. According to Vano Mtvralashvili, Iranian companies are interested in Georgia in tourism, agriculture, construction and energy. Mtvralashvili notes that today most of the registered legal persons in Georgia are from Iran and their number reaches 5 thousand. 10 thousand visitors arrive in the country during the year and spend about 100 million USD. Mtvralashvili does not reveal projects, howev-
er, says that the companies wishing to invest in Georgiaare working on the projects. The Chamber of Commerce and Industry plans to establish communication with the authorities in the nearest future. It is also planned to discuss sanctions imposed on Iranian companies. Mtvralashvili adds that Iranian and Georgian parties are interested to resolve questions concerning the activities of Iranian companies in Georgia.
ALDAGI’S CAPITAL INCREASED TO 28,361 MILLION GEL
apital of insurance company Aldagi increased second time during last 2 months. Company stockholders made a decision, which named expansion of Aldagi activities as a reason for capital increase. According to stockholders’ decision, stated capital increases by 4074 million GEL and equals to 28 360 955 GEL. Besides, according to the decision made on March 6, remaining unallocated 325 000 new stocks have been emitted out of the stated stock capital. Bank of Georgia purchased it. In total, the bank paid 2 047 500 GEL for the new stocks. Emission of 373 350 new stocks is also planned, price of which allocation will
be 6,3 GEL per stock and the stockholders of the company, which have a desire, will purchase them. It’s already known that second stockholder of Aldagi Galt and Tagart Holdings does not want to fill share with the new stocks. Share of Bank of Georgia has been increased in Aldagi. According to last data, 84,5% of the insurance company belongs to the bank. Share of the second stockholder - Galt and Tagart Company reduced from 34 to 15,4%. Stockholders made decision about capital increase on May 7 session.
BUSINESS May 26, 2014 #55
caucasian business week
DIRSI COMPLEX ON THE DUMP TERRITORY Is it Safe For Health and Why There are no Selling on the First Floor
he Dirsi living complex that contains full social space with schools, trade space and other services is being built in Tbilisi. The first stage of the complex is already finished and company had already begun the process of selling living flats. But with the information of Business Week the complex is built on the territory of old building material dump that can be dangerous for the inhabitants as well as for the environment. Business Week made some researches around the theme and got comments about. As is known closed dump needs conservations works that is expensive and also necessary if there is going to be constructions on the territory. We talked to the Dirsi complex management that proved that constructions really were made on old dump. Also we got comments from Solid Waste Management Company of Georgia about the process of the conservation. LASHA CHKHARTISHVILI talked to us about the theme. Q. What kind of information you have about the territory of the constructions and what kind of condition is there right now? Lasha Chkhartishvili, the Delisi region majority candidate of Tbilisi City Assembly, heavy ecologist, who worked years on the theme of the waste management: on the left embankment of river Mtkvari, in Ortachala district is located the complex. There was former dump. If the constructions are made on the dump territory it is possible if there are made proper works and process of conservation of. Without conservation the territory can be potentially harmful for people. There is possibility of chemical and radioactive pollute. As I have information the bump was of building materials and as the question of safety of building materials in Georgia is not under control so we can suspect that there can be dangerous contaminations such as chemicals and this is real that the level of the pollute can be high. Also I can say that as building materials are not under control and Georgian legislation doesn’t consider their additional examination and if we consider that they can contain radioactive radiation it can cause problems to human’s health. I don’t think it is enough just to cover the dump with ground layer, there is need of conservation and full isolation from environment. Q. Do you have information from whom or which organization the company bought the territory? A. I don’t have exact information but I know that there were tensions between private organizations and city hall. I have to say that there is no dump where there were made conservation on the territory of Tbilisi during Shevardnadze, Saakashvili period till today. Mostly they are covered with ground and there is no guarantee that they can be safe for the environment and people. They keep contaminating the air, ground and water till today. KHATUNA CHIKVILADZE, the advisor of the director of Solid Waste Management Company of Georgia on the issues of protection of environment: The company is responsible for arrangement of all municipal dumps on all territory of Georgia except Tbilisi and Adjara. They didn’t have any kind of responsibility by the law to address us, We arrange 54 bumps on all the territory of Georgia. The works we provide with looks like: we cover the territory with ground layer to avoid emission in the air and water, when it is covered with clay ground it means that you reduce emission in the environment. When the new layer is added on the dump the operator with tractor which rearranges the garbage like hill and then when layer reaches one meter more it is covered with ground. Q. In this case the dump becomes safe for environment? A. There is going on different works including fencing, making drainage channel to control waters. When dump reaches proper condition and
height it should be closed and it is not cheap and it costs equivalent of nearly million dollars. For example in Borjomi old dump was covered and conserved and on this territory was opened new one and it took 1 200 000 Dollars. It should be said that there should be used geomembrannes to avoid percolation and contamination. There is difference how building material or household waste dumps should be closed. There are aftercare works too. Q. To which organization Dirsi had to apply to provide with conservation of the bump and did they apply you? A. The company had to apply Tbilisi City Hall. As I have information on that territory there was brown field but not dump of household waste. There are three kinds of dumps: dangerous, inert and household. We are responsible for household dumps. I can say that on that territory there was no household dump. May be the territory was researched before constructions begun anyway I don’t have information about. THE DIRSI MANAGEMENT COMMENTED. Q. Where Dirsi complex is located? A. The Dirsi district is located in Tbilisi, that is in seven minutes from city center, between Kakutsa Cholokashvili (former 5 December street) street and River Mtkvari. This location is characterized with special panoramic views in the River Mtkvari and mountains.
Q. When the Dirsi complex is going to be is full exploitation? A. Dirsi is the biggest living complex in Transcaucasia. It unites 20 high store modern buildings. The main conception if the complex is that in one step from living house to have access to all kind of necessary social-commercial objects. That’s why there is building of 2 schools, 2 children’s garden and trade-entertainment center of an Italian style. Also big attention is paid to the recreational zone and greenery. In this case greenery amount is three times more than common measurement data. Right now the first stage is coming to end, that takes into account the full exploitation of 11 living buildings and the first inhabitants will enter it in 2014. Q. Did company take into account the ecological and environmental conditions while choosing the territory? A. While choosing the territory there were taken into account several criteria: the space, insolation and ecology. Due to these criteria, there was chosen 40 hectare land in 7 minutes from Tbilisi center. Before the beginning of the construction works the territory was researched by the geologist and seismologists and after this it was fully cleaned. It meant cutting of 7-11 meters of the ground. The territory was learned through laboratorial expertise, and due to the report of the expertise we clearly declare that Dirsi district is located in ecologically clean and healthy environment. Ecology and environment is the main elements of Dirsi conception, and it determines the fact that the greenery of the district is three times more than guidelines. Q. Is this right that the construction of Dirsi complex is going on the territory of
former dump? A. Dirsi district is built on the territory where was accumulated during long time building materials. This territory was not adjusted and treated. It must be said that building materials have no ability to rot that’s why it has no factor for ground contamination. As we already stated there was cut 7-11 meters of the ground height and the location was cleaned. After this there was made laboratory expertise of the soil and air and the report makes us to state that Dirsi district is located in ecologically clean and healthy environment. The construction of the district is going on rocky ground, The foundation is based on the most firm and strong surface. Besides the building are built using tunnel caliber and it determines that the 80% of the walls are supportive. That’s why Dirsi buildings seismological firmness is very high. Q. Did investor have the information that on the territory was dump before it bought it? A. AS Group Investment is Azerbaijanian holding with 10 years of experience. On Georgian market it came in 2011 and before was made researched to learn market and building sector. Every detail is the result of deep analyses. It is true that the territory was not adjusted for living area and it was used as dump for building materials. But the final result was reached after researches and woks made on by geologists, seismologists and the cleaning service. The ground of 7-11 meters was cut and the buildings were built on rock surface. Naturally AS Group Investment was providing all these processes under its close attention and supervision. Q. Were there made special conservations of the dump to be safe for the environment and people how much was the cost of these works and by whom they were provided? A. It must be said that building materials don’t rot that’s why it doesn’t contaminate soil and air and doesn’t provoke intoxication. It was made site leveling of the foundation and the territory was cleaned. All these works were made by the AS Group Investment. Also the researches of the soil and seismic resistance were made by the Center of Seismologic Monitoring of Ilia State University. Q. There is information that the company has problems with realization of the flats on the first floor? A. Taking into account that the main idea of the project is to create independent space which provides with all the necessary objects, together with living houses there are commercial and social spaces too. The commercial zone is organized in trade center of an Italian style. The commercial spaces are places on the first floor. Interests towards these spaces were from the first days of constructions; though due to the selling politics of the company the process of selling these areas don’t take place. Right now company is selling living houses and makes negotiations with investors and interested persons for other areas. Company plans to begin the realization of commercial spaces from the end of 2014. Q. Does investor satisfied with selling results? A. AS Group Investment was planning to begin selling process after the end of the first stage of the constructions, but high interest from customers was so high that the realization of the flats was begun from Summer time in 2013, after 10 months of constructions. In spite of the fact that company doesn’t provide with aggressive selling politics the management is satisfied with the results. It must be said that there is interest not only from Georgia but also in emigrants from other countries – Russia, Ukraine, Israel, also Greece, Italy and America. Right now 20 percent of the fats are already sold. Ketevan Charkhalashvili
NEW FLIGHTS CONNECT THREE UKRAINE CITIES WITH BATUMI
kraine International Airlines has announced it will put on new flights from three of Ukraine’s largest cities to Batumi, Georgia’s Black Sea resort town. A new flight service will connect Kiev, Lvov and Kharkov in Ukraine with Batumi International Airport. The regular flights will begin flying direct to Batumi from Kiev, Lvov and Kharkov from June 14. Flights from Kiev to Batumi will depart on a daily basis while flights from Kharkov will be held twice a week, on Thursdays and Sundays. Passengers travelling between Batumi and Lvov will be able to fly once a week, on Saturdays.
SARAJISHVILI COMPLETED LAST YEAR WITH 5,44 MILLION GEL NET PROFIT
SC Sarajishvili completed last year with 5,44 million GEL net profit. The profit equaled to 3 GEL per stock, which is maximum of last 5 years. According to financial report of the company, in 2013 company revenue from the realization of the product and materials (main assets and so on) equaled to 21 771 300 GEL. By January 1, 2014 material actives of the JSC equals to 55 466 000 GEL, among them residual value of the basic property is 14,5 million GEL. In the 2014 reporting years level of the overall produced goods in the reduced increased in comparison with 2012. In particular: 41.4 dekaliters cognac was bottled in 2012, 68.02 thousand dekaliters - in 2013, which is 26.8 thousand dekaliters more. 123.1 thousand Dali vodka was bottled in 2013. It’s noteworthy that Sarajishvili resumed export to Russia at the end 2013. The report indicates that the contracts signed for the current year consider export of the alcohol drinks of $2 million value to the Russian Federation. Reminding that 99.25% of the Sarajishvili stocks belongs to individual - Elguja Bubuteishvili.
IN APRIL 77% OF THE EXPORT FROM ADJARA CAME ON TEXTILE
n April 77% of the export from Adjara came on textile. According to the data of Adjara Exporters Association, last month textile of $4 917 3311 value was exported from Adjara. Greenery ranked second with 10% share ($613 920 value), export of wooden-fiber tiles equaled to $364 474, which is 6% of the total export. Top-5 list include hazelnuts with $255 200 and tangerine concentrate with $204 279. Respectively, their share is 4% and 3%. In April export basket included: bay leaves ($84 200); Platyphillin hydrotartratis / aloe dry extract ($78 840); tea ($56 731), furniture ($39 891), Eucalyptus leaf ($36 746), plastic bottles ($27,157.5), apple ($18,072.90), cow leather ($11 259), decorative plants ($7 000), cabbage ($4 200). As for reexport - in April 11,4 million vacuum gasol, 2,3 million copper concentrate, also wooden-fiber tiles of $7 389 has been exported.
BUSINESS 6 NATAKHTARI LAUNCHES TRADITIONAL LOTTERY caucasian business week
atakhtari’s traditional lottery is dedicated to the 2014 FIFA World Cup and offers various monetary prizes to beer lovers. From May 19 to June 13, consumers should SMS the special 8 digit number found on beer caps to 91101 to enter the competition. Tornike Nikolaishvili, marketing director of the
company, noted at a press conference on May 19 that the total prize fund was 375,000 Lari. Additionally, the ten most active participants in the lottery would be named on June 13 and get 5,000 Lari each. “We always try to be innovative and offer our clients different types of contests,” he continued, adding that the lottery would be broadcast via
KAKHA BENDUKIDZE TO WORK IN ADVISORY COUNCIL AT GOV’T OF UKRAINE
eorgia’s former Minister of Economy Kakha Bendukidze was invited in Ukraine to work in the Council whose aim is to help the government in the recovery of the
country’s economy. The Advisory Council will consist of five people who haves a great experience in the implementation of economic reforms. The Council will gather once a month at the Ukrainian Economy Ministry. Its first session is planned for today. During his visit to Ukraine Bendukidze will meet with Lviv Mayor and local political leaders and will read a lecture at Kyiv School of Economics. Bendukidze arrived in Georgia in 2004 at the invitation of the then President Mikheil Saakashvili and headed the Ministry of Economy. “To sell everything expert for the conscience” was the main principle of his activity. Bendukidze left the state service in 2009, founded the Free University in Tbilisi and bought the shares in the Agricultural University.
PRODUCERS ARE READY FOR ENTERING TO THE RUSSIAN MARKET
ocal producers are ready to enter to the Russian market. One week is left for vegetable ripening and time is enough to inspect food for the harmful organisms, to arrange technologic line to preset products as commodity. Exporter Company Global is going to export about 200 tons of potatoes to Russia this year. On the previous season they exported to Belorussia as well and the product met with similar requirements. Research on quarantine organisms was made along with Food Agency last season and cleanliness of the product was approved. National Food Agency reports that before the fruit and vegetable export to Russia, Rosselkhod-
nadzor specialist will arrive to Georgia and research parasites, among them Easter Californian Twix. The agency informs that the entrepreneur is required to invite entomologist. The agency informs that according to the research made in the Western Georgia, the harmful organism can’t be mentioned. Eastern Georgia needs a research. Currently none of the companies has not applied to National Food Agency for phytosanitary certificate. Rosselkhodnadzor stated that from May 26 export of the following agricultural products will be allowed from Georgia: topato, cucumber, cabbage, aggplant, cherry, apricot, peach, plum, persimmon, kiwi and berries. Also, the export update wil dealt to the fresh potato if the oroduct is washed and packahed according to consumer norms.
the Georgian Public Broadcaster at 10 pm during World Cup matches. “Those who send an SMS will get a special notifying text message back stating on which day they will have chance to win,” he explained. In addition, each participant will have a unique identifying number in order to access the company’s official web-page and Facebook Page.
May 26, 2014 #55
Bacho Kajaia, host of the lottery program, stated that during each 15 minute live broadcast the audience would enjoy a show full of humor and interesting prizes. The numbers can be found on Natakhtari beer bottles, on the caps of the 500ml glass bottles as well as the larger 1, 2 and 2.5 liter plastic bottles.
AUTOMOBILES IMPORTS DROP BY 14% YEAR ON YEAR
il and oil products remain number first import products of Georgia. Geostat informs that in JanuaryApril oil and oil products of $241 million have been imported in the country, which are 105 of the total import. Compared to the same period of last year, import of this segment has reduced by 6 million. As for the motorcars, which rank second, their import has reduced by 14%. Import of this com-
modity group equaled to $200 million and 85 of the import. Oil airs and gaseous hydrocarbons ranks 3 with $149 million (6$ of the import). Top-5 list also include remedies (90 million) and copper ores and concentrates (61 million). Import of the phones equaled to $51,6 million, black metal constructions - 36,7 million, wheat - 36,46 million, calculation machines and blocks - 30,5 million, cigarettes - 27,79 million.
EXPORTS WITH EU INCREASED BY 50%
eostat informs that in JanuaryApril 2014 foreign trade turnover with EU countries equaled to $897 million, which is 14% more than the respective data of last year. Export amount has increased by 50$ in comparison with the same period last year and equals to $194 million. As for import, annual growth is 7%, amount - 703 million. Share of these countries in the foreign trade turnover of Georgia equaled to 265, among them 215 in export and 28% in import (in January-April 2013 - respectively 26, 16 and 30%). 32% of the trade deficit came on EU countries (37% in January-April 2013). Detailed information about the foreign trade turnover with CIS countries is also available. In January-April turnover with these countries equaled to $1,169 billion, which is 18% more
than last year. Export increased b y19%, to $510 million, import - by 175, to $659 million. Share of CIS countries in the foreign trade turnover of Georgia was 34%, among them 55% in export and 26% in import (n January-April 2013 - respectively 22, 55 and 25%). In the first 4 months of the year, 9% of the trade deficit came on CIS countries (in January-April 2013 - also 9%). Reminding that in January-April 2014 trade foreign turnover in Georgia (without unorganized trade) equaled to $3,441 billion which is 14% more than in January-April of last year among them export equals to $933 million 19% morel import is $2,508 billion, 13% more. In January-April 2014 Negative trade balance of Georgia equaled to $1,576 billion and 46% of the foreign trade turnover.
AUTOMOBILES EXPORTS SHRINK BY 4% YEAR ON YEAR
otorcars remains the only sector in top-10 list of the export of Georgia, amount of which reduced. According to Geostat data, in January-April 2014 motorcars were number one export products on Georgia, although compared to the same period of precious year, motorcars export has reduced by $8 million or 4%. In the first 4 months of the country motorcars of 193,8 million have been exported from the country, among them only in April - $40,8 million. 21% of the total export comes on the motorcars. Ferroalloys rank second with $101,9 million. Growth equaled to 16% in comparison with previous year.
Copper ores and concentrates rank third with $81,96 million. Export has increased by 4,5 times in comparison with 4 months of last year. Top-5 list includes wine with 59 million and nitrogenous fertilizers with 58,2 million. Among them during this period wine of $38,7 million more value has been exported. Export of mineral water equaled to 48,13 million. Growth is significant here as well (_24,2 million). Amount of the spirituous drinks export equals to 36,9 million, nuts and hazelnuts - 25,2 million, so-called armature - 23,3 million, remedies - 22,4 million. Reminding that in January-April products of $933 million gave been exported, which is 19% more in comparison with the same period 2013.
STATISTICS May 26, 2014 #55
caucasian business week
HPP caucasian business week
GIORGI RAMISHVILI: KHUDONI HPP IS VITALLY IMPORTANT PROJECT
usinessmen actively talk about the importance of Khudoni HPP for the state economy development. They also point to the need of more active government efforts to this direction. At this stage, these efforts should be confined with only active work with the population. Businessman Giorgi Ramishvili says the Khudoni HPP construction is of vital importance and this is inarguable as one the main guarantors of our independence.
“The use of hydro power potential means the state independence. Any obstacles are ruled out if the project calls for caring for natural resources”, Giorgi Ramishvili noted. The economy development grows energy consumption and this is clear to everyone. Therefore, the HPP construction is not related to only appearance of a new exports sector. Businessmen assures in 3 to 4 years there will be real deficit of electricity. “The current volume of electricity will not suffice for the increased economy. In the future, the product imports from the Russian Federation will be limited, because the consumption will grow there too. The tourism season will be enlarged. The same scenario is expected in relation with Azerbaijan too. Even more so, 80% of the energy carriers are imported and the country has no other resources”, the Businessman says. Giorgi Ramishvili agrees with his colleagues, economic experts, high-qualified specialists who appraise nonuse of hydro resources as hindrance of the state interests. He believes that such practice may be appraised as only hostile approach to our own economy,.
ZURAB BUBUTEISHVILI: WE SHOULD CONSTRUCT KHUDONI HPP AND USE ALL RESOURCES TO BOOST ECONOMY
SC Sarajishvili executive director Zurab Bubuteishvili assures the country should use hydro resources, as well as all resources that are required to enhance the state economy. The implementation of large-scale projects like
Khudoni HPP is very important, particularly, when the country uses only 18% of its hydro resources, he added. “I only welcome the energy independence of our country that depends on the implementation of projects like Khudoni HPP. I cannot understand why reasonable people should object to its construction or what are the arguments against the state’s energy independence, cheap electricity generated by the HPP, exports of excessive electricity, maintenance or even lowering electricity tariffs in the future. My company is one of the major electricity consumers and electricity costs are reflected in the product cost price. Indeed, maintaining or lowering electricity tariffs makes direct influence on the product price. In general, I back the position that our country must use all resources to become stronger”, Bubuteishvili noted.
ZURAB JAFARIDZE: KHUDONI HPP CONSTRUCITON IS VITALLY IMPORTANT FOR GEORGIA.
s it Khudoni HPP construction important for Georgia’s economic development? Concerning the issue the parliament’s minority representative Zurab Jafaridze says: “We have expressed our clear position many times and we repeat our position today. We say Khudoni HPP construction has vital importance for the country and the project determines Georgia’s energy security and independence. If Khudoni HPP is not constructed in the following years, we will have deficit in the power supply system every year. This signifies we will have to
increase the imports. Unfortunately, only source is Russia. This signifies we will become more and more dependent on Russia. Another problem is that the price of the imported electricity is far higher compared to the electricity generated by Georgian hydro resources. This signifies we will have to permanently increase electricity tariffs and our population will have additional tax burden. We clearly say this is an important project, but details should agreed with local population. I understand this is a complicated process, but the project must be implemented. -Your government used to talk about Khudoni HPP construction too, but the project was not implemented. - We failed to be in time. -Local residents object to implementing Khudoni HPP construciton project and the government is facing problems. What is the way for the problem resolution? - The problems come from not only local residents. According to my information, there are concrete interest groups that strive for making benefits from this situation, including political dividends. We should struggle with them, but negotiations should be also carried out with the local government. This is not a simple process, it is very complicated, but the ruling Authorities are acting adequately in this situation. I personally have openly expressed my support to the Energy Minister and his activities, because this is a correct way.
May 26, 2014 #55
LEVAN BEZHAHSVILI: “WE HAVE TO PERSUADE LOCAL RESIDENTS IN IMPORTANCE OF KHUDONI HPP CONSTRUCTION
hudoni HPP project and the energy sector development is very important for Georgia. The country has to boost industrial potenial and any authorities should prioritize the inauguraiton of new enterprises. Along with development, the country needs new energy resources for both exports and domestic consumption”, Levan Bezhahsvili, a member of the parliament’s minority, says. Levan Bezhashvili, a member of the United National Movement, talks about the importance of Khudoni HPP implementation for Georgia’s economic development: “The government must provide permanent efforts to find new sources for generating energy power. Khudoni HPP is one of the important projects in this respect. However, we should definitely take into account the interests and position of local residents. We should try to persuade them in the necessity of implementing this project. We should
also etake into account those traditional and cultural heritage issues that are related to that concrete zone, where the HPP should be constructed. Therefore, the issue requires a joint approach to take optimal decisions”.
PM STATED THAT THE DISASTER IN DARIALI GORGE HAS NO CONNECTION TO THE CONSTRUCTION OF POWER PLANT THERE
e refused to façade construction and are construction so that it excludes disasters caused by it””, - Prime Minsiter of Georgia Irakli Garibashivli stated on the ceremony of the Khobi-hesi-2 construction in the village Mukhuru, Chkhorotsku municipality on Sunday. He said that the disaster in Dariali Gorge has no connection to the power plant existing there. “The disaster, which happened yesterday in Dariali Gorge, has no connection to the power plant existing there. It happened 20 km away from Dariali power plant. Moreover, tunnel of the plant passed water and we avoided large-scale catastrophe”, - Prime Minister stated. He called important energy project to the construction of Khobi-hesi-2 on the river Khobist-
skali and mentioned that intensive process of investing and construction is going in the country. Installed capacity of Khobi-hesi-2 will be 55 MW, annual output - 260 million KW/hours. Its construction will be completed in autumn 2017. It will be a power plant with 24-hour regulation and major part of the electricity produced by it will meet the local demand. LTD Georgian Investment Group Energy carries out the project. In the project framework road will be constructed to the Shurubumu unique Karst cave, will considerably reduce way to the Lake Tobavarchkhli and tens of tourist trails will be arranged, which will promote utilization of the tourist potential of the region. After the presentation of the power plant construction, Prime Minsiter visited exhibition of the local products.
CONSTRUCTION OF ARAGVI-HESI COMPLETED
n Friday Vice Premier and Minsiter of Energy Kakha Kaladze, governor of Mtskheta-Mtianeti - Nugzar Kipiani, representatives of the government and energy companies will attend the opening ceremony of Aragvi-hesi exploitation in the village Zemo Mleta, Kazbegi municipality. LTD Energo-aragvi implemented the project. Construction of the power plant started in February 2012 and completed in February 2014.
Installed capacity of the power plant is 8 MW, annual output - 50 million KW/hours. Investment value of the project is $13 million. Number of employees in various periods equaled to 50-120 persons. During the power plant operation period 10 people will be employed. Aragvi-Hesi is the first power plant implemented only by cooperation of Georgian and European private investors. The station is equipped with the high-quality European technologies and management systems, made by Austrian company Koisler. ‘
SOUTH KOREAN K WATER IS INTERESTED IN NENSKRA-HESI PROJECT
epresentatives of South Korean Water Resource State Corporation K Water, among them president Gayvo Chou, Vice-president Haejin Jang, director of financial department Taekwon Seo, senior managers Biungki Kim and Yuntak Choi are visiting Georgia and met with management of Partnership Fund. The fund reports that reason for their visit is interest in the hydropower project in Svaneti, at the confluence of the river Nenskra. “Construction of hydro power plant on the river Nenskra will not cause standard problems such as eviction of the population, flooding of the settlements and so on”, - executive director of Partnership Fund Irakli Kovzanadze states. Annual output of 210MW capacity Nenskra power plant will be 1.3 billion KW/hour and after the
exploitation it will supply Georgian market with continuous guaranteed electricity during autumnwinter period; will provide maximal export during summer time. IFC (World Bank) is the project advisor; overall investment amount is $600 million. Partnership Fund mentions that Korean K Water owns total actives of $20 million and its annual turnover is $1.7 bullion. Since the day of establishment in 1967, K Water implements management of national water resources and provides water supply for the major part f Korea. They also own dams, Coastal Protection, water supply systems and structures. In addition to Korea, K Water also implements international projects in various countries, among them: Columbia, India, Afghanistan, China and Pakistan.
BANKING NEWS May 26, 2014 #55
caucasian business week
TBC COMPLETES JANUARY TO APRIL PERIOD WITH 21.9 MILLION GEL PROFITS
SC TBC Bank completed January-April with 21,9 million GEL profit (01/05/13 -20,2 million GEL). By May 1 credit portfolio of the bank is 2,706 billion GEL (01/05/13 -2,236 billion), deposits - 2,712 billion GEL (01/05/13 - 2,301 billion), overall obligations are 3,585 billion GEL (01/05/13- 2,934 billion). Loans have increased by 21%; annual growth of
the deposit portfolio is 18%. Bank’s actives are 4,175 billion GEL, market share - 24,3% (Q1 2013 - 5,8 billion GEL, 24%). The bank operates for over 20 years. It is represented in several companies, among them by the micro-finance organization TBC Credit, operating in Azerbaijan. IT also owns 99,7% of the Bank Constanta stocks. Bank’s capital equals to 591 million GEL (01/05/13 -565,4 million).
TBC REMAINS A LEADER OF INDIVIDUALS DEPOSIT MARKET
SC TBC Bank remains a leader on individuals deposit market. By May 1 its market share is 32% (Q1 2014-31,8%, 2013 - 32%, 2012 -35,2%). Individuals’ deposit portfolio in TBC
Bank equals to 1,635 billion GEL (Q1 2014 -1,569 billion GEL). By April 1 cumulative portfolio of TBC Bank’s client (without banks’ deposits) equals to 2,712 billion GEL (Q1 2014 - 2,643 billion GEL).
PROGRESS BANK CHANGED STOCKHOLDERS AND WORKING ON THE NEW STRATEGY
ew stockholder of Progress bank WEBION INVESTMENTS LTD maintains bank’s strategy. The bank founded by Minister of Energy Kakha Kaladze will be represented mainly on the corporate market. Director general of progress Bank Kote Sulamanidze states that currently they are working on the new strategy. He informs that the deal was made several months ago and the international company, which is the successor of Kala Capital, became owner of 78,29% share at the end 2013 and continues investment in the bank’s develop-
ment. 21,7% of the stocks remains to Bidzina Ivanishvili and as Sulamanidze states, sales of the share is not planned. Annual report of Progress Bank indicates that Mark Zoi is a final owner of WEBION INVESTMENT LTD. Company of Zoi, registered in Limassol, Cyprus, purchased majoritarian share of Georgian bank from Kala Capital, which is also registered in Cyprus. After the change of stockholders structure, supervision board and directors remain same. Ilia Kechakmadze is still among the directors, which is also director of Kala Capital.
BTA TO MERGE WITH KAZCOMMERCEBANK
entral Bank of Kazakhstan expects merge BTA to KazCommerceBank till the end of this year. Manager of Central Bank of Kazakhstan Kairat Kelimbetov stated about it in the interview with Reuters. BTA Bank, control stockholder of which is currently Kazakhstan, owns controlling stake of Georgian BTA Bank. Kelimbetov states that in addition to merge of BTA and KzaCommerceBank, merge of 3 medium-sized banks - Alliance Bank, Temir-Bank and Fortebank is also expected. “We think that 2-3 system banks will be in the country, 2 precisely and 15-20 medium-sized banks”, - Kelimbetov stated. Currently there are 38 banks in Kazakhstan. From 2015 the country transforms to Bazel-3, increases capital requirement 10 times, which, as Kelimbetov considers, will reduce number of financial organizations. Currently minimal capital requirement is 10 billion Tenge ($55 million). By 2016 this number should be increased to 30 billion Tenge, by 2019 - to 100 billion Tenge. “It does not mean that the banks, which will not resist, should be closed. They may be transformed into the credit comradeships, deposit banks, micro-finance organizations”, 0 first banker of Ka-
zakhstan considers. “They have a happy opportunity to sell the bank to the others, merge to those who have money”, - he added. He considers that banking sector of Kazakhstan does not currently evoke interest of the international investors. “NPL (more than 90 days overdue credits) is 33%, minimal capital requirement - 10 billion Tenge, who will get interested in?!” = Kelimbetov states. Amount of the over 90 days overdue credits currently equal to 4,8 trillion Tenge, or $26 billion and this amount accumulated after the crisis. Kelimbetov stated that they offered liberation from the toxic tactics, or their write-off to the banking sector and amended tax code for this, in order to liberate write-off of such actives from the taxation. Currently 66% of the toxic credits come on BTA and KazCommerceBank, which are undergoing merging process. Currently KazCommerceBank is purchasing 46,5% of BTA for 465 million and also businessman Kenes Rakisheb will buy share in the bank. Closure of this deal is scheduled in the second quarter 2014. “United Bank will occupy 27% of the market and it will become number one. After the resolution of NPL problem, it will be a market leader”, - manager of Central Bank of Kazakhstan considers.
CREDIT PORTFOLIO INCREASED TO 10,9 BILLION GEL IN APRIL
n the total credit portfolio of the banks share of problem loans have been reduced. By May 1 it equals to 7,5%. Compared to the same period of last year (9,8%) it has dropped by 23%. According to statistic of National Bank of Georgia, amount of the problem loans (non-standard, dubious, hopeless) equals to 822 GEL (01/05/13
- 868 million GEL). Slowdown of the enactive loans has been mentioned since the beginning of last year, by the end of it started to reduce and this trend was maintained in 2014. Annual growth of the overall loan portfolio is 22,9% (01/05/13 -14%). By May 1, 2014 cumulative portfolio of 21 banks is 10,9 billion GEL (01/04/13 -8,9 billion).
ASSOCIATION OF BANKS OF GEORGIA: BANKS PROPERTY RECEIVED IN PAYMENT OF OVERDUE LOANS INCREASED An interview with President of the Association of Banks of Georgia Zurab Gvasalia - Despite the fact that the banking sector is steadily growing, the level of lending is quite high, and the interest rate on loans has reduced, the index of property taken by banks in the payment of overdue loans has been increasing in recent years. Since 2008 it has increased 40 times, and in 2013 reached a record of 312 million GEL. How dangerous is it for the banking sector? - I consider it wrong to appeal only to the grown figures, as it does not provide an objective picture of what is happening. At first glance, these data are really alarming, as the property with the value of 312 million GEL is really a lot. Although, if we look from the systemic point of view, everything is not so bad. We must remember that a rate of the property taken in the payment of overdue loans makes only 1.8% of total bank assets and this picture has not changed since 2010, when the assets of banks doubled in comparison with 2008. Moreover, you should not use such a word as “to take away”, as in this case we are talking about the property that was pledged under the loan by the customer without any coercion, only voluntarily. It is also important to bear in mind that even the increasing figure is data summarized for several years that gives the client a priority right to purchase property, which was pledged under the loan and in case of non-payment will be auctioned. He is given the time specified in the contract - it
could be six months or even 3 years, and then the property will be sold to third parties. Thus, we are talking about a long term process and 312 million – this is not only in 2013. On this basis, the risks of the banking system have not increased, moreover, in 2013 the share of overdue loans in relation to total loans decreased by 3%, and net income of banks increased by 45%. It should also be noted that in January-March 2014 profit of the banking system of Georgia amounted to 95 million GEL.
STOCKHOLDERS OF VTB BANK GEORGIA WILL NOT GET DIVIDENDS FROM LAST YEAR PROFIT
tockholders of VTB Bank Georgia will not get dividends from 2013 profit. They made the decision on the stockholders’ meeting. Profit of 2013, which equals to 8,2 million GEL, will be directed for the payment of past ears loss. The bank was profitable in previous years (2012 -
3,8 million, 2011 - 10,3 million); in 2010 loss was about 22 million. On the meeting the participants approved 2013 report and also a new member of the supervision board - Vladimer Tsarov, who changed Piun. 165 450 548 stocks (96,8%) of the votes belong to VTB Bank (ВТБ), other part - to the individuals.
VTB INCREASED AUTHORIZED CAPITAL
TB Bank (ВТБ) increased share in VTB Bank Georgia to 96,8% as a by emission of the stocks of 11 million GEL value. As a result, authorized capital of Georgian bank increased to 171,3 million GEL. Head of the VTB Bank’s subsidiary companies department Mikheil Yakunin stated that increase of capitalization level will positively influence on the business development. National Bank of Georgia approved final emission prospect of VTB Bank Georgia at the end of
March. By Q1 bank’s actives exceed to 900 million. The ban reports that growth was mentioned into all main business directions. VTB Bank actively works for the crediting of large, mediumsized and small business; to develop retail segment, offers wide range of retail products and services to the customers. Along with the banks of VTB group, it offers credit products, trade funding and documentary operations to Georgian business sector. VTB Bank Georgia (former (UGB) operates on the market since 1995.
BANK SECTOR COMPLETES JANUARY TO APRIL PERIOD WITH 120 MILLION GEL PROFITS
anking sector completed JanuaryApril with 120 million GEL profit (01/04/14 - 94,6 million GEL). Like in the first quarter, 17 out of 21 banks are profitable (Q1 2013 12 out of 20). According to statistic of National Bank of Georgia (NBG), revenue of the sector in 4 months equaled to 799 million GEL (01/05/13 - 724,3 million), expenditures - 658 million GEL (01/05/13 - 613 million).
For the reporting period, own capital of the banking sector (stock capital) is 3,06 billion GEL (01/05/13- 2,6 million). Supervision capital equals to 3,09 billion GEL (01/05/13 - 2,6 billion) and has reduced in April (01/04/14 - 3,1 billion). Capital Adequacy Coefficient is 17,6% (01/05/13 -17,7%). For the reporting period Return on equity (ROE) is 12%, Return on Actives (ROA) - 2,1%) (01/05/2013- respectively 12,1%; 2,1%).
CIS caucasian business week
May 26, 2014 #55
KIEV OFFERS TO REPAY GAZPROM GAS DEBTS ‘IN 10 DAYS’ IF DISCOUNT PRICE GRANTED
kraine will pay back its staggering debts for Russian gas in just 10 days’ time – but only if Gazprom agrees to bring back the price agreed with ousted President Viktor Yanukovich for 2014, Ukraine’s coup-imposed PM said in his EU address. “The Ukrainian side offers OJSC Gazprom to sign an additional agreement, which sets the price for natural gas for the year 2014 to the amount of $268.5 per 1000 cubic meters, as was defined in the first quarter of 2014. After signing this agreement, Ukraine offers to settle the existing debts to the Russian side within 10 days,” Arseny Yatsenyuk, said in a statement on Tuesday. The statement was addressed to the leaders of the European Commission and the European Union. Earlier last week, Gazprom CEO Aleksey Miller said that Russian gas supplies to Ukraine will be cut off if Kiev fails to pay its gas bills by June 2. A preliminary pre-payment bill for June has also been issued by the company to Ukraine’s Naftogaz. The Kiev government, which currently owes Gazprom an estimated of $3.5 billion, has refused to consider the bill. Claiming that the Russian side refuses to settle the gas prices issue, Yatsenyuk said in the Tuesday statement that “the question of advanced payment cannot appear on the agenda.” Moreover, Kiev again threatened to sue Gazprom at
the international arbitration court in Stockholm at the end of May if the situation does not improve. Under the present terms, Kiev has to pay $485 per 1,000 cubic meters of gas. The price tag was raised in April from $268.50, after Russia withdrew all sorts of discounts for Ukraine. In April, Gazprom stopped the $100 discount enjoyed by Kiev under the Kharkov Agreement on leasing the Crimean port of Sevastopol to station the Black Sea Fleet, which is now part of Russia. Another discount, secured by President Yanukovich at talks in Moscow in December 2013, was cancelled by the Russian gas giant on the grounds that Ukraine stopped paying its bills. The Russian government has repeatedly said that it is well aware of the fact that Kiev has the money to repay its gas debts, but has made no indications it is going to pay back even a fraction of the sum. On May 7, Kiev received $3.2 billion from the International Monetary Fund (IMF), the first tranche of a $17 billion loan. On May 13, Ukrainian officials met with EU commission ministers and received assurances of 1.61 billion euros in macroeconomic loans for Ukraine to help with the current critical economic situation, with the first 100 million euro batch arriving on Monday. The US has also issued $1 billion in loan guarantees to Ukraine through its Agency for International Development (USAID)
ASTANA PREPARES FOR OFFICIAL RECOGNITION OF EXPO-2017
he official recognition of the “Expo -2017” in Astana and the transfer of the official flag of the BIE to Kazakhstan will be held in June 2014 at the 155th General Assembly of the International Exhibitions Bureau. This was mentioned at the Chairman of the board of JSC Expo-2017 Astana National Company, Talgat Yermegiyaev’s speech at the special session on “EXPO- 2017: Preparation of the infrastructure of Astana” held at the VII Astana Economic Forum. “The government of Kazakhstan pays great attention to the construction and preparation of the international specialized exhibition “EXPO -2017”, which is an event of national significance. And in this case, the active participation of the citizens of Kazakhstan is the key of its success”, - Yermegiyaev said. He also noted that in April this year, President Nursultan Nazarbayev has laid a capsule, by
launching the construction of the exhibition. The session was attended by Secretary-General Advisor of the BIE on communication issues, Ivan Prostakov, Nobel Prize laureate in Physics (2006), George Fitzgerald Smoot III, special adviser to the United Nations Fund for the initiative “Sustainable Energy for All”, Serge Martin, co-founder and managing partner of the TIMWE, Ricardo Carvalho. Expo will be a unique part of the city in the future. World’s best innovations will be applied to develop this project. In particular Ricardo Carvalho said that “Today we would like to present some ideas about how the exhibition “Expo -2017” should help visitors to coordinate, facilitate transport and leisure, as well as about how the residents of this city would improve their standard of living after the exhibition. We believe that this event will raise Astana’s development to the next level. This is the main idea”. The expert suggests to present the living standards through mobile applications.
EBRD UPS LENDING IN KAZAKH NATIONAL CURRENCY
he European Bank for Reconstruction and Development (EBRD) and the National Bank of the Republic of Kazakhstan signed two agreements which enable the EBRD to dramatically increase local currency lending, the bank reported on May 21. “The institutions have signed two facilities which will enable the EBRD to source up to US$ 1 billion in tenge from the NBRK for on-lending to Kazakh financial institutions, municipalities and corporates,” the bank said. The two facilities will be an amended repo agreement for $400 million equivalent and a swap framework agreement for $600 million equivalent, the latter being provided over a three-year period. The agreements were signed during the Astana Economic Forum by the head of Kazakh National
Bank Kairat Kelimbetov and EBRD Managing Director Olivier Descamps. “Our strategic priorities in Kazakhstan focus on diversification, development of the regional infrastructure and strengthening the role of the private sector. These priorities require us to lend more to local businesses in local currency,” Descamps said. Thanks to the agreements, the EBRD will be able to increase lending for projects with Kazakh banks, non-banking financial institutions and corporate clients, Kelimbetov said in turn. “This will be especially important for micro and SME clients who need protection from foreign exchange risk,” he added. The EBRD has invested close to $6.5 billion in the country’s economy since the beginning of its operations in Kazakhstan, with more than half of the bank’s projects supporting the private sector.
RUSSIA HAS BEST PLACING IN IMD WORLD COMPETITIVENESS RANKING
ussia gained 4 places to reach 38th among 60 countries in the 2014 IMD World Competitiveness Ranking. It’s the only BRICS member to improve, and is Russia’s best position in the history of the rating. Since 1997 IMD ranks and analyzes the ability of countries to create and maintain an environment in which enterprises can compete. The study covers four main factors when evaluating national performance; economic performance, government efficiency, business efficiency and infrastructure. Each criteria is assessed by top managers of companies from the key economic sectors – commodities, manufacturing and services. The improvement in Russia’s rating is down to greater government efficiency. On this alone Russia gained six places to 37th, and better infrastructure saw it jump four spots to 35th place. As opposed to last year when Russia’s ranking was hurt by fears the Sochi Olympics would be a failure, this year’s great outcome for the Games must have produced an “emotional splash” among respondents who assessed government performance much better, Elina Pechonova, IMD partner in Russia, told Vedomosti. For a third year Russia remained in 53rd place for business efficiency, while economic performance worsened by 3 positions driven by slowing GDP growth, a worsening balance of payments, inflation, and the large shadow economy.
In 2013 Russia’s improvement was better, gaining six positions, but that was mostly caused by the deterioration of other countries, according to the Vedomosti newspaper. In 2014 Russia’s competitiveness grew while EU members were strengthening their positions and exiting recession. Among the BRICS countries India mirrored Russia’s promotion dropping 4 positions to 44. China is the leading BRICS country at 23rd. Brazil dropped 3 steps back to 54, while Russia’s customs partner Kazakhstan improved 2 places to 32. The US is the highest ranked in 2014, reflecting the resilience of its economy, better employment numbers, and its dominance in technology and infrastructure. Europe fares better than last year, thanks to its continuing economic recovery. Denmark enters the top ten, joining Switzerland, Sweden, Germany and Norway. Europe’s economies of Ireland, Spain and Portugal also showed improvements, while Italy and Greece fell. “The overall competitiveness story for 2014 is one of continued success in the US, partial recovery in Europe, and struggles for some large emerging markets,” said Professor Arturo Bris, director of the IMD World Competitiveness Center. “There is no single recipe for a country to climb the competitiveness rankings, and much depends on the local context.”
AZERBAIJAN May 26, 2014 #55
caucasian business week
HEYDAR ALIYEV FOUNDATION SHOWS AZERBAIJAN’S DEDICATION TO CREATIVE SPIRIT: FIRST LADY
resident of the Heydar Aliyev Foundation, and UNESCO and ISESCO Goodwill Ambassador Mehriban Aliyeva has given an interview to ‘The Business Year magazine’. AzerTag presents the full text of the inter-
view. “After the founder of the Azerbaijani state, national leader Heydar Aliyev passed away in December 2003, various initiatives were put forward to establish a special public organization with a view to preserve his rich legacy, passing it down to future generations, and continuing his noble deeds. Taking into account social demands, the Heydar Aliyev Foundation, a nongovernmental organization, was founded in May 2004,” Azerbaijan’s First Lady said in her interview. She said the Foundation’s major mission is both to popularize and advocate the life and activities of Heydar Aliyev, and also to support socio-economic and humanitarian development within the country and abroad. “Committed to these principles since its establishment, the Foundation has implemented educational, healthcare, cultural, sport, scientific and technological, environmental, social, and other projects. The Foundation has achieved positive results in both Azerbaijan and abroad through its programs, projects, and charity activities. The Foundation initiated the creation of centers provided with state-of-the-art equipment, and the necessary literature for popularizing the history and rich culture of Azerbaijan and national leader Heydar Aliyev’s life and activities,” she said, adding that the centers do not function simply as museums, but they also help young people and teenagers acquire diverse skills and knowledge. The Heydar Aliyev Foundation, which pursues the provision of equal opportunities in education, as well as the integration of the country into the world educational system, has implemented a number of programs and projects on this front, the First Lady said. “Among them are the “Development of Orphanages and Boarding Schools,” “New Schools for a New Azerbaijan,” and the “Support for Education” projects. Supported by civil society and the private sector, these projects and programs involved the construction and overhauling of dozens of children’s facilities, and over 400 schools. The Foundation’s initiatives enjoy strong government support also, with a total of 2,700 schools built or reconstructed in the country over the past decade. The “Development of Pre-School Educational Facilities” project is the latest in a line of new initiatives on this front. Made public this year, the project provides for the execution of complex measures in order to fully meet the demand for kindergartens in Baku,” she stressed. The Foundation’s activities in the field of culture cover a few major areas, according to the First Lady. Thus, preserving national and moral values and the country’s cultural legacy, restoring historic monuments in the country and in other parts of the world, building new cultural facilities, and introducing Azerbaijani culture to the global community are among them. “Successful projects include the opening of the International Mugham Center designed to develop and promote traditional Azerbaijani music, which was inscribed on the UNESCO Representative List of the Intangible Cultural Heritage of Humanity, and the establishment of the Museum of Modern Art, the Museum of Azerbaijan Carpets and Applied Art, and the Qala Archaeological and Ethnographic Museum Complex. Annual international music competitions are considered stand out as important cultural dates in Azerbaijan and across
the world. High-profile events like the International Mstislav Rostropovich Festival, the International “World of Mugham” Festival, the Gabala International Music Festival, and the International Ashyg Music Festival contribute to fostering the development of performing arts and expanding cultural relations,” Mehriban Aliyeva added. “The Heydar Aliyev Foundation places special emphasis on the mutual enrichment of various cultures and civilizations, the expansion of dialogue among nations, and the preservation of the traditions of tolerance, and to this end is implementing the “Azerbaijan Home to Tolerance” project. Under the project, the Foundation is reconstructing religious monuments and temples and arranging relevant exhibitions,” she stressed. The Heydar Aliyev Foundation is also actively contributing to preserving the health of the population of Azerbaijan, according to the First Lady. “One of the key tasks the Foundation has set for itself is helping children and teenagers in orphanages and boarding schools, as well as the children of martyrs, refugees, IDPs, poor families, and children suffering from various diseases. In partnership with international organizations and the world’s leading healthcare companies, the Foundation implemented initiatives which include the “Best Care for Children with Diabetes” and the “For Life without Thalassemia” projects, and has completely repaired, remodeled, and rebuilt medical facilities. A number of hospitals, polyclinics, diagnostics centers, and other medical facilities have been built, repaired, or remodeled in Azerbaijan since the establishment of the Foundation,” she emphasized. Mehriban Aliyev said charity is one of the key priorities in the activities of the Heydar Aliyev Foundation, as it carried out charity campaigns aimed at promoting the integration of children deprived of parental and family care into society, and ensuring the effective organization of leisure activities. As part of these campaigns, the Foundation provides a broad range of assistance and sends gifts to orphanages and boarding schools, while also organizing concerts and entertainment, she added. “The Foundation arranges annual New Year and Novruz celebrations for children who have distinguished themselves in education and those who have been brought up in orphanages and boarding schools. It also assists children from refugee and IDP families, as well as orphans and those deprived of parental care, and sends holiday gifts to such institutions operating in Azerbaijan and also abroad,” Azerbaijan’s First Lady said. “The Heydar Aliyev Foundation organizes foreign visits for these groups of children and also provides opportunities for children from other countries to visit Azerbaijan and familiarize themselves with our country’s history and rich culture. Initiated and supported by the Foundation, Azerbaijani schoolchildren have visited Germany, Belgium, France, Georgia, the Netherlands, and Romania, while schoolchildren from the US, Georgia, Romania, and Russia were given a chance to spend time in Azerbaijan.” “The Heydar Aliyev Foundation is an organization which operates at an international level. It has offices in the US, Romania, Russia, and Turkey. The Foundation maintains close cooperation with the UN Development Program, UNESCO, ISESCO, and other international organizations, and is carrying out important programs and projects in foreign countries. Its activities abroad focus around three priorities: promoting Azerbaijan, including raising the international community’s awareness of the truth about the Armenia-Azerbaijan Nagorno-Karabakh conflict, restoring and preserving the historical and cultural legacy related to Azerbaijan and its citizens, and fostering humanitarian and social development,” she added. In foreign countries, the Foundation presents Azerbaijan through the organization of culture days, exhibitions, as well as events to mark historic occasions and pay tribute to prominent figures in science and culture, Mehriban Aliyeva said. “Cultural events held by the Foundation abroad include the “Azerbaijan: To the World of Tales on Flying Carpets” exhibition, celebrating the 20th anniversary of restoration of national independence by the Republic of Azerbaijan, marking the 870th anniversary of the great Azerbaijani poet Nizami Ganjavi, which visited several cities in Europe including London, Paris, Berlin, Moscow, Strasbourg, and Rome,” she stressed. Azerbaijan’s First Lady said in the interview the Foundation, which places a special emphasis on making the truth about the Armenia Azerbaijan Nagorno-Karabakh conflict known to the world community, has been car-
rying out commemorative campaigns about Khojaly in prominent cities across the world since 2007. These campaigns, according to her, feature the presentation of the “Khojaly Genocide” film, photos documenting atrocities committed by Armenians in Khojaly, articles on the Khojaly tragedy issued by leading foreign editions, the “Truth about Garabagh” series, and the “War Against Azerbaijan: Targeting Cultural Heritage” book. In February of 2012, the Heydar Aliyev Foundation initiated the erection of a memorial commemorating the victims of the Srebrenica genocide in Sarajevo, the capital of Bosnia-Herzegovina, and the Khojaly genocide in Nagorno-Karabakh, she added. “As in Azerbaijan, the Heydar Aliyev Foundation’s projects in education, healthcare, culture, and other fields are a success abroad too. For example, several schools were remodeled and completely repaired in Georgia, Egypt, Romania, Russia, Pakistan, and the Netherlands under the “Support to Education” project. The construction of a school for girls in Pakistan is one of the major success stories. A devastating earthquake completely destroyed a girls’ school in Rara, in the Pakistani city of Muzaffarabad, in 2005. In response, within a short period of time, the Heydar Aliyev Foundation had built a new 650-seat school there. Projects implemented by the Foundation in the sphere of public health include the vaccination of tens of thousands of people from low-income families against the Hepatitis B virus in Pakistan, the provision of ambulances and blood banks for people suffering from thalassemia, hemophilia, and other blood diseases, and carrying out eye surgeries,” Mehriban Aliyeva said. In 2013, the Foundation also provided financial assistance to schools in the State of Maryland, US, for the purchase of interactive whiteboards, and special equipment for children with disabilities, and in 2014 embarked on a new project in partnership with the US Urban Alliance organization, she added. “This was set up to provide assistance to graduates through training sessions and practical education. Another project by the Heydar Aliyev Foundation in the field of healthcare was initiated jointly with “Save a Child’s Heart” in Washington, and the Foundation also provided support to the reconstruction of the Center for Blind and Visually-impaired Children and Youth in Sarajevo.” “The Foundation’s cultural projects in foreign countries demonstrate its respect for cultural diversity and universal values, contributing to a strengthening of dialogue between cultures and civilizations. This is evidenced in the restoration of monuments in the park of the Palace of Versailles, the Louvre, and the Berlin City Palace, which was destroyed in WWII, as well as medieval manuscripts in the Vatican Archives and the Roman Catacombs in the Vatican, and the repair of the Philosophers’ Room in the Rome Capitoline Museum,” President of the Heydar Aliyev Foundation said, adding that the Foundation’s work abroad also includes programs and campaigns in the field of healthcare. “In April 2008, people with heart diseases received treatment in cooperation with the Ioan Pop de Popa Foundation. In December of 2010, a fully equipped Sobol ambulance car was donated to the Center of Paediatric Oncology and Haematology at the Regional Clinic Hospital No. 1 in Yekaterinburg.” She said in December 2012, the Heydar Aliyev Foundation in partnership with the Polish Embassy in Baku organized a visit of physicians from Anna Dymna’s Mimo Wszystko Foundation to Azerbaijan. “As part of the visit, the physicians conducted training and courses at the Association of People with Down Syndrome. In March 2013, the Foundation organized a visit of Azerbaijani children with Down syndrome and their parents to Krakow,” Mehriban Aliyeva added. Adding that the Foundation’s activities abroad include other social projects, she said it financially assisted Haiti in dealing with the consequences of an earthquake, and Romania in tackling the consequences of a natural disaster. In September 2011, the Foundation provided financial assistance to the French Association for the Victims of Terrorism to help it organize the 7th International Congress for the Victims of Terrorism in Paris, the First Lady said. “Social projects implemented by the Heydar Aliyev Foundation in a number of cities of France, Russia, Hungary, Italy, and Germany contribute to bringing nations together, and the successful integration of cultures. Projects related to the design of parks and the restoration of historical monuments are of moral significance, and are becoming a kind of symbol for calling for friendship and peace all over the world,” she added. “On May 10, the Heydar Aliyev Foundation will celebrate its 10th anniversary. Thanks to its advanced organizational skills and tireless efforts, the Foundation has walked a glorious path, having become the bearer of universal values in Azerbaijan and abroad, and a symbol of development and prosperity, hope, and humanity.” The Heydar Aliyev Foundation embodies Azerbaijan’s dedication to promoting the Creative spirit, Mehriban Aliyeva concluded.
AZERBAIJAN’S BUSINESS OPPORTUNITIES PRESENTED IN U.S.
zerbaijani business and trade was presented at Ronald Reagan International Trade Center on May 20, the United States-Azerbaijan Chamber of Commerce (USACC) reported. Ronald Reagan Building and International Trade Center (ITC) has hosted USACC and Azerbaijan’s Export and Investment Promotion Foundation (AZPROMO) for a breakfast presentation titled “Business and Trade with Azerbaijan”. The event purposed to brief the audience about fastdeveloping and emerging Azerbaijani market with focus on business opportunities in non-energy industry, including technology and communications, industry, agriculture, renewable energy and tourism. The event was opened by Andrew Gelfuso, Director of Office of Trade Promotion at Ronald Reagan Building and ITC. Gelfuso talked about the activities of Ronald Reagan Building and ITC and stressed the importance of holding business and trade events to inform the American audience about vast opportunities in countries like Azerbaijan. Following, Aaron Brickman, Deputy Executive Director at SelectUSA, briefed the participants of the event on the mission of SelectUSA, highlighting the fact that it had been created at the federal level to showcase the United States as the world’s premier business location and to provide easy access to federal-level programs and services related to business investment. He emphasized SelectUSA’s interest in interacting closely with USACC and AZPROMO, and enhancing closer business and trade ties between two countries. Mark A. Stuckart, CFA for Product and Business Development at OPIC (Overseas Private Investment Corporation) highlighted Azerbaijan’s importance as a key U.S. ally and energy partner for Europe and touched upon the successful cooperation between two countries over the past 20 years. He spoke about OPIC financing and funds that help U.S. businesses gain access to emerging markets, catalyzes revenues, jobs and growth opportunities both at home and abroad. Next, Susan Sadigova, USACC Executive Director, focused on recent economic achievements and current business opportunities in Azerbaijan. In her presentation, she spoke about “Azerbaijan 2020” concept that outlines the stage-by-stage acceleration of the economy. Talking about major projects initiated by Baku, such as High-Tech Park, TASIM, and Sumgait Chemical Industrial Park, Sadigova underlined the role of the Azerbaijani leadership in seeing through the realization of projects of regional and global importance. She also outlined other opportunities in wide range of non-oil sectors, from renewable energy to agriculture, tourism, transportation, information and telecommunications. U.S. Representative of AZPROMO, Elshan Baloghlanov informed the audience about AZPROMO’s activity and mission in the United States. He particularly touched upon the “Flavors of Azerbaijan” and “Wine & Spirits of Azerbaijan” projects, and invited interested U.S. parties, especially food and beverage importers, wholesalers and distributors to cooperate with export-oriented companies of Azerbaijan. Baloghlanov also briefed the audience on legal and tax matters, as well as cultural and regulatory considerations in doing business with Azerbaijan. The World Bank (WB) and the International Finance Corporation (IFC) ranked Azerbaijan 70th in the Doing Business 2014 rating. Azerbaijan’s economy has improved its position, ranking 70th out of 189 countries in the world and, by a number of indicators; it is among the advanced countries. According to the report, as a result of the implementation of 18 targeted reforms on regulations and the improvement of legislation in the area of improving the business climate, Azerbaijan’s economy has entered the list of the top 15 countries of the world. The Doing Business 2014 report also included Azerbaijan in the list of 29 reformist countries thanks to the reforms in the “starting a business”, “construction permits”, and “international trade” spheres carried out in the country in 2012-2013.
PUBLICITY caucasian business week
May 26, 2014 #55
WORLD NEWS May 26, 2014 #55
caucasian business week
BARROSO TO PUTIN: GAZPROM RESPONSIBLE FOR STEADY TRANSIT TO EUROPE
RUSSIA AND CHINA SEAL HISTORIC $400BN GAS DEAL
fter 10 years of negotiations, Russia’s Gazprom and China’s CNPC have finally signed a historic gas deal which will provide the world’s fastest growing economy with the natural gas it needs to keep pace for the next 30 years. The total value of the contract is $400 billion, Gazprom CEO Aleksey Miller said. However, the price of gas stipulated in the document remains a “commercial secret.” Assuming the overall price of the contract includes only the cost of supplies of Russian gas, then the $400 billion price tag means China will pay about $350 per 1,000 cubic meters. Delivery price for the contract will be tied to market oil prices, Putin said from Shanghai on Tuesday. Infrastructure investment from both sides will be more than $70 billion and will be the world’s largest construction project, with Russia providing $55 billion up front and China $22 billion for pipelines on their respective territories. This is Gazprom’s biggest contract to date. Russia will supply China 38 billion cubic meters of gas per year via the eastern ‘Power of Siberia’ pipeline, which crosses Siberia and reaches China’s populous northeast regions. A separate route that could deliver gas to China’s western provinces and provide diversification is also in the works, according to Putin. A memorandum of understanding was signed in the presence of Russian President Vladimir Putin and President of China Xi Jinping on the second day of Putin’s two-day state visit to Shanghai. The deal comes as a part of Russia’s larger-scale pivot to Asia and especially China as Western economies threaten sanctions over turmoil in Ukraine. Sanctions by the US and the EU have been mostly limited to visa bans and asset freez-
es on some of Russia’s top officials, while so far only threatening a so-called third round of real economic sanctions against Russian hydrocarbon businesses. Just ahead of Putin’s visit to Shanghai, Russian Prime Minister Dmitry Medvedev gave reassurance that the agreed price would be fair. “One side always wants to sell for a higher price, while the other wants to buy for a lower price,” Medvedev said. “I believe that in the long run, the price will be fair and totally comparable to the price of European supplies.” A major breakthrough in negotiations came on Sunday as Gazprom chief Aleksey Miller sat down with his CNPC counterpart, Zhou Jiping, in Beijing to discuss final details, including price formulas. Although Europe is still Russia’s largest energy market – buying more than 160 billion cubic meters of Russian natural gas in 2013 – Moscow will use every opportunity to diversify gas deliveries and boost its presence in Asian markets. “I wouldn’t look for politics behind this, but I have no doubt that supplying energy to the Asia Pacific Region holds out a great promise in the future,” Medvedev said. In October 2009, Gazprom and CNPC inked a framework agreement for the Altai project which envisions building a pipeline to supply natural gas from fields in Siberia via the western part of the Russia-China border. In March 2013, Gazprom and CNPC signed a memorandum of understanding on Russian gas supplies to China along the so-called eastern ‘Power of Siberia’ route. When both pipelines are activated, Russia can supply Asia with 68 billion cubic meters of gas annually. Last year, China consumed about 170 billion cubic meters of natural gas and is expected to consume 420 billion cubic meters per year by 2020.
azprom should stick to existing contracts with Europe and gas supplies shouldn’t be interrupted, EC President Jose Barroso wrote in a letter to President Putin. It comes at a time when the escalating conflict in Ukraine threatens to disrupt gas tarnsit. “It … continues to be Gazprom’s responsibility to ensure the deliveries of the required volumes as agreed in the supply contracts with European companies,” European Commission President wrote in a letter published Wednesday. “I also recall that the European Union expects the Russian Federation to activate the early warning system well in advance if ever the need arises,” Barrosso added. Gazprom CEO Aleksey Miller warned on May 12 that if Kiev failed to pay its gas bill by June 2, exports to Ukraine would come to a halt the next day. Such a scenario naturally worries Brussels, as 50 percent of Europe’s gas supplies enter the continent via Ukraine from Russian supply lines. Barroso’s letter is in response to one sent by Putin last week that said Gazprom, starting in June, would only deliver gas to Ukraine if paid in advance. “Given the circumstances, the Russian company has issued an advance invoice for gas deliveries to Ukraine, which is completely in accordance with the contract, and after June 1 gas deliveries will be limited to the amount prepaid by the Ukrainian company,” Putin said in the letter. The Russian leader also said that Ukraine’s gas
debt to Russia continues to grow, and now stands at $3.5 billion. Barroso mentioned the ongoing trilateral talks between Brussels, Kiev and Moscow that are centered on the “issue of the price for gas supplies to Ukraine,” as well as establishing “the willingness of the Government of Ukraine to pay the agreed upon arrears” owed to Russia. The Commission President described it as “imperative” that the parties agree on a future price for gas supplies that “reflects market conditions.” Barroso revealed in his letter that the EU and “other international donors” have already given “significant support” to Ukraine and will continue to “remain committed.” The letter was posted on the European Commission’s website the same day Moscow was celebrating a $400 billion dollar gas deal with China that will provide energy supplies to the world’s economic powerhouse for the next 30 years.
US ENERGY AGENCY CUTS MONTEREY SHALE OIL ESTIMATE BY 96%
he US Energy Information Administration (EIA) has cut the Monterey Shale oil formation estimate by 96 percent to just 600 million barrels from 13.7 billion, due to a lack of extraction technology. The assessment cut US national reserves by 39 percent. Monterey Shale is a 1,750-mile formation that accounts for two-thirds of the US’s shale oil reserves. It lies through the center of California from Sacramento to the Los Angeles basin and includes some coastal regions. Being folded and shattered by seismic activity the shale oil is concealed deeper than the relatively even and layered like a cake North Dakota and Texas formations. Compared with oil production from the Bakken Shale in North Dakota and the Eagle Ford Shale in Texas, “the Monterey formation is stagnant,” LA times quotes John Staub, a petroleum exploration and production analyst who led the energy agency’s research. “From the information we’ve been able to gather, we’ve not seen evidence that oil extraction in this area is very productive using techniques like fracking,” Staub said. “Our oil production estimates combined with a dearth of knowledge about geological differences among the oil fields led to erroneous predictions and estimates.” He added that the potential for recovering the oil could rise if new technology is developed. “We have a lot of confidence in the intelligence
and skill of our engineers and geologists to find ways to adapt,” Tupper Hull, a spokesman for the Western States Petroleum Assn said. “As the technologies change, the production rates could also change dramatically.” An oil industry representative expressed optimism that new techniques will be capable to open up the whole potential of the Monterey formation. “The oil is there,” Rock Zierman, chief executive of the trade group California Independent Petroleum Assn. said. “But this is a tough business.” The reassessment comes as a blow to the US plan to become energy independent. “The narrative of fracking in the Monterey Shale as necessary for energy independence just had a big hole blown in it,” the LA Times quotes Seth B. Shonkoff, executive director of the Physicians Scientists & Engineers for Healthy Energy. It’s a second revaluation of the oil capacity of the Monterrey slate formation in California. In 2011 the EIA said the formation contained 15.4 billion barrels of oil available to extract via hydraulic fracturing. In 2012 this assessment was reduced to 13.7 billion barrels. The EIA estimates published in April 2014 showed total US oil reserves of 33.4 billion barrels. Taking into account the cut by the EIA the total has fallen by 39 percent to 20.3 billion barrels. The new EIA estimates will be officially published in June 2014.
PUBLICITY caucasian business week
May 26, 2014 #55
TBILISI GUIDE May 26, 2014 #55
Embassy United States of America Embassy 11 Balanchivadze St., Dighomi Dstr., Tbilisi Tel: 27-70-00, 53-23-34 E-mail: email@example.com; firstname.lastname@example.org United Kingdom of Great Britain and Northern Ireland Embassy 51 Krtsanisi Str., Tbilisi, Tel: 227-47-47 E-mail: email@example.com Republic of France Embassy 49, Krtsanisi Str. Tbilisi, Tel: 272 14 90 E-mail: firstname.lastname@example.org Web-site: www.ambafrance-ge.org Federal Republic of Germany Embassy 20 Telavi St. Tbilisi Tel: 44 73 00, Fax: 44 73 64 Italian RepublicEmbassy 3a Chitadze St, Tbilisi, Tel: 299-64-18, 292-14-62, 292-18-54 E-mail: email@example.com Republic of Estonia Embassy 4 Likhauri St., Tbilisi, Tel: 236-51-40 E-mail: firstname.lastname@example.org Republic of Lithuania Embassy 25 Tengiz Abuladze St, Tbilisi Tel: 291-29-33 E-mail: email@example.com Republic of Latvia Embassy 16 Akhmeta Str., Avlabari, 0144 Tbilisi. E-mail: firstname.lastname@example.org 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: email@example.com Web-sait: www.mzv.cz Japan Embassy 7 Krtsanisi St. Tbilisi Tel: +995 32 2 75 21 11, Fax: +995 32 2 75 21 20 Kingdom of Sweden Embassy 15 Kipshidze St. Tbilisi Tel: +995 32 2 55 03 20 , Fax: +995 32 2 22 48 90 Kingdom of the Netherlands Embassy 20 Telavi St. Tbilisi Tel: 27 62 00, Fax: 27 62 32 People’s Republic of China Embassy 52 Barnov St. Tbilisi Tel: 225-22-86, 225-21-75, 225-26-70 E-mail: firstname.lastname@example.org 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: email@example.com State of Israel Embassy 61 Agmashenebeli Ave. Tbilisi Tel: 95 17 09, 94 27 05 Embassy of Swiss Confederation’s Russian Federation Interests Section Embassy 51 Chavchavadze Av., Tbilisi Tel: 291-26-45, 291-24-06, 225-28-03 E-mail: RussianEmbassy@Caucasus.net Ukraine Embassy 75, Oniashvili St., Tbilisi Tel: 231-11-61, 231-12-02, 231-14-54 E-mail: firstname.lastname@example.org; email@example.com 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: firstname.lastname@example.org 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: email@example.com 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: firstname.lastname@example.org Web: www.armenianembassy.ge 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: email@example.com Romania Embassy 7 Kushitashvili St., Tbilisi Tel: 38-53-10; 25-00-98/97 E-mail: firstname.lastname@example.org Republic of Poland Embassy 19 Brothers Zubalashvili St., Tbilisi Tel: 292-03-98 Email:email@example.com Web-site: www.tbilisi.polemb.net Republic of Iraq Embassy Kobuleti str. 16, Tbilisi Tel: 291 35 96; 229 07 93 E-mail: firstname.lastname@example.org 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: email@example.com United Nations Office Address: 9 Eristavi St. Tbilisi Tel: 225-11-26/28, 225-11-29/31 Fax: 225-02-71/72 E-mail: firstname.lastname@example.org Web-site: www.undp.org International Monetary Fund Office Address : 4 Freedom Sq., GMT Plaza, Tbilisi Tel: 292-04-32/33/34 E-mail: email@example.com Web-site: www.imf.ge Asian Development Bank Georgian Resident Mission Address: 1, G. Tabidze Street
Freedom Square 0114 Tbilisi, Georgia Tel: +995 32 225 06 19 E-mail: firstname.lastname@example.org; Web-site: www.adb.org World Bank Office Address : 5a Chavchavadze Av., lane-I, Tbilisi, Georgia Tel: 291-30-96, 291-26-89/59 Web-site: www.worldbank.org.ge Regional Office of European Bank for Reconstruction and Development Address: 6 Marjanishvili St. Tbilisi Tel: 244 74 00, 292 05 13, 292 05 14 Web-site: www.ebrd.com Representation of the Council of Europe in Georgia Address : 26 Br. Kakabadze, Tbilisi Tel: 995 32 291 38 70/71/72/73 Fax: 995 32 291 38 74 Web-site: www.coe.ge
Hotels in Georgia TBILISI MARRIOTT Tbilisi , 13 Rustaveli Ave. Tel: 77 92 00, www.marriott.com COURTYARD MARRIOTT Tbilisi , 4 Freedom Sq. Tel: 77 91 00 www.marriott.com RADISSON BLU HOTEL, TBILISI Rose Revolution Square 1 0108, Tbilisi Tel: +995 32 402200 radissonblu.com/hotel-tbilisi RADISSON BLU HOTEL, BATUMI Ninoshvili Str. 1, 6000 Bat’umi, Georgia Tel: 8 422255555 http://radissonblu.com/hotel-batumi SHERATON METECHI PALACE Tbilisi , 20 Telavi St. Tel: 77 20 20, www.starwoodhotels.com SHERATON BATUMI 28 Rustaveli Street • Batumi Tel: (995)(422) 229000 www.sheratonbatumi.com HOLIDAY INN TBILISI Business hotel Addr: 1, 26 May Square Tel: +995 32 230 00 99 E-mail: email@example.com Website: http://www.hi-tbilisi.com BETSY’S HOTEL With Marvellous Tbilisi Views Addr: 32/34 Makashvili St. Tbilisi Tel: +995 32 293 14 04; +995 32 292 39 96 Fax: +995 32 99 93 11 E-mail: firstname.lastname@example.org Website: http://www.betsyshotel.com
Restaurants CHARDIN 12 Tbilisi , 12 Chardin St. , Tel: 92 32 38 CHINA TOWN Tbilisi , 44 Leselidze St. (ent. from Chardin St.) Tel: 43 93 08, 43 93 80, Fax: 43 93 08 BREAD HOUSE Tbilisi , 7 Gorgasali St. , Tel: 30 30 30 BUFETTI - ITALIAN RESTAURANT Tbilisi , 31 I. Abashidze St. , Tel: 22 49 61 DZVELI SAKHLI Tbilisi , 3 Right embankment , Tel: 92 34 97, 36 53 65, Fax: 98 27 81 IN THE SHADOW OF METEKHI Tbilisi , 29a Tsamebuli Ave. , Tel: 77 93 83, Fax: 77 93 83 PICASSO Tbilisi , 4 Miminoshvili St. , Tel: 98 90 86 SAKURA - JAPANESE RESTAURANT Tbilisi , 29 I. Abashidze St. , Tel: 29 31 08, Fax: 29 31 08 SIANGAN - CHINESE RESTAURANT Tbilisi , 41 Peking St , Tel: 37 96 88 VERA STEAK HOUSE Tbilisi , 37a Kostava St , Tel: 98 37 67 BELLE DE JOUR 29 I. Abashidze str, Tbilisi Tel: (+995 32) 230 30 30 VONG 31 I. Abashidze str, Tbilisi Tel: (+995 32) 230 30 30 BRASSERIE L’EXPRESS 14 Chardin str, Tbilisi Tel: (+995 32) 230 30 30 TWO SIDE PARTY CLUB 7 Bambis Rigi, Tbilisi Tel: (+995 32) 230 30 30 LOFT 11. I. Mosashvili str, Tbilisi Tel: (+995 32) 230 30 30 RESTAURANT NERO 21 Abano Street, Tbilisi Tel: (+995 32) 292 10 15
SH. RUSTAVELI STATE THEATRE Tbilisi. 17 Rustaveli Ave. Tel: 93 65 83, Fax: 99 63 73 TBILISI STATE MARIONETTE THEATRE Tbilisi. 26 Shavteli St. Tel: 98 65 89, Fax: 98 65 89 THEATRE OF PANTOMIME Tbilisi. 37 Rustaveli Ave. Tel: 99 63 14, (77) 41 41 50 Z. PALIASHVILI TBILISI STATE THEATRE OF OPERA AND BALLET Tbilisi. 25 Rustaveli Ave. Tel: 98 32 49, Fax: 98 32 50
Galleries ART GALLERY LINE Tbilisi. 44 Leselidze St. BAIA GALLERY Tbilisi. 10 Chardin St. Tel: 75 45 10 GALLERY Tbilisi. 12 Erekle II St. Tel: 93 12 89 GEORGIAN NATIONAL MUSEUM - PICTURE GALLERY Tbilisi. 11 Rustaveli Ave. Tel: 98 48 14 KARVASLA’S EXHIBITION HALL Tbilisi. 8 Sioni St. Tel: 92 32 27, KOPALA Tbilisi. 7 Zubalashvilebi St. Tel: 99 99 02, Fax: 99 99 02 MODERN ART GALLERY Tbilisi. 3 Rustaveli Ave. Tel: 98 21 33, Fax: 98 21 33 M GALLERY Tbilisi. 11 Taktakishvili St. Tel: 25 23 34 ORNAMENT - ENAMEL GALLERY Tbilisi. 7 Erekle II St. Tel: 93 64 12, Fax: 98 90 13
Akhvledianis Khevi N13, Tbilisi, GE. +995322958377; +995599265432
Cinemas AKHMETELI Tbilisi. “Akhmeteli” Subway Station Tel: 58 66 69 AMIRANI Tbilisi. 36 Kostava St. Tel: 99 99 55, RUSTAVELI Tbilisi. 5 Rustaveli Ave. Tel: 92 03 57, 92 02 85, SAKARTVELO Tbilisi. 2/9 Guramishvili Ave. Tel: 8 322308080,
Theatres A. GRIBOEDOV RUSSIAN STATE DRAMA THEATRE Tbilisi. 2 Rustaveli Ave. Tel: 93 58 11, Fax: 93 31 15 INDEPENDENT THEATRE Tbilisi. 2 Rustaveli Ave. Tel: 98 58 21, Fax: 93 31 15 K. MARJANISHVILI STATE ACADEMIC THEATRE Tbilisi. 8 Marjanishvili St. Tel: 95 35 82, Fax: 95 40 01 M. TUMANISHVILI CINEMA ACTORS THEATRE Tbilisi. 164 Agmashenebeli Ave. Tel: 35 31 52, 34 28 99, Fax: 35 01 94 METEKHI – THEATRE OF GEORGIAN NATIONAL BALLET Tbilisi. 69 Balanchivadze St. Tel: (99) 20 22 10 MUSIC AND DRAMATIC STATE THEATRE Tbilisi. 182 Agmashenebeli Ave. Tel: 34 80 90, Fax: 34 80 90 NABADI - GEORGIAN FOLKLORE THEATRE Tbilisi. 19 Rustaveli Ave. Tel: 98 99 91 S. AKHMETELI STATE DRAMATIC THEATRE Tbilisi. 8 I. Vekua St. Tel: 62 59 73
THE BEST GEORGIAN HONEY OF CHESTNUTS,ACACIA AND LIME FLOWERS FROM THE VERY HART OF ADJARA MATCHAKHELA GORGE IN THE NETWORK OF GOODWILL, NIKORA AND SMART
PUBLICITY caucasian business week
May 26, 2014 #55