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BUSINESS WEEK July 21, 2014 #63
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July 21, 2014, Issue 63
GEORGIA GEORGIA RATIFIES EU ASSOCIATION AGREEMENT
he Georgian Parliament ratified the Association Agreement with the EU, also including deep and comprehensive free trade area, at an extraordinary session on July 18. Pg. 2
PASHA BANK SPONSORS BUSINESS DEVELOPMENT FORUM
ASHA Bank, a full service corporate bank, sponsored the second Business Development Forum that was held on July 10th at the exhibition centre Expo Georgia. Pg. 9
CIS 9 EU COUNTRIES READY TO BLOCK ECONOMIC SANCTIONS AGAINST RUSSIA
rance, Germany, and Italy are among EU members who don’t want to follow the US lead and impose trade sanctions on Russia. Pg. 10
AZERBAIJAN ATTRACTS $84 BLN FOREIGN INVESTMENT
BE INFORMED, DO BUSINESS
POST A NEW LAW PERHAPS DHL, TNT, UPS AND FORTY LEAVE THE COMPANY ON THE MARKET
PM Addresses Parliament over Association Agreement
GEOCELL NET SALES SHRINK BY 6.7 Y-O-Y
n January-June of the current year net sales of Geocell reduced by 6,7% in comparison with the first half of last year. As quarterly report of Teliasonera (owner company of Geocell) indicates, in January-June of the current year net sales of Geocell equaled to 410 million Swedish Krona, in the same period of last year - 440 million Krona. In the
Q2 of the current year cellular operator of Georgia sold products and services of 208 million Krona, in the Q2 of last year - of 225 million Krona or 7,8% more. The quarterly report also indicates that in the 1-year interval number of subscribers increased by 1,9% and equaled to 1,866 million users by the end of June 2014. By July 17 exchange rate of 10 Swiss Krona is 2,5736 GEL
TBC BANK WINS EUROMONEY MAGAZINE’S BEST BANK IN GEORGIA 2014 AWARD
Kakha Bendukidze: Iran is less Dangerous than Russia
“Kazantip” to Kick off on August 20
WORLD NEWS US FEDERAL DEBT TO REACH 106% OF GDP BY 2039
merica’s public debt will rise to 106 percent of GDP in the next 25 years, a level seen just once in US history - just after World War II, the US Congressional Budget Office (CBO) warned. Pg. 13
Hans Rosling: In the future, Georgia will Have to Choose between One billion Europeann Market and 9-billion Market of Asia and Africa
ne of the main priorities of Azerbaijan’s government has been promoting its nonoil sector. Pg. 11
NIKITA MARSHUNOK Pg. 5
MAIN EVENTS July 21, 2014 #63
caucasian business week
PM ADDRESSES PARLIAMENT OVER ASSOCIATION AGREEMENT
M Irakli Garibashvili said in his address to the Parliament just before it unanimously ratified the Association Agreement with the EU that Georgia has taken “an important step towards Europe, towards firm democracy and this process has now become irreversible.” “I congratulate on this historic event everyone for whom democratic values are precious, who are committed to European democratic ideals and who see Georgia’s future in the large family of European states,” Garibashvili said. “I am confident that Georgia has already overcome the most critical moment,” he said. “June 27, 2014 was written in the history of our homeland as a new big date. The historic dream of all Georgians came true on this day. This day has brought us closer to Europe – the space which is so close and natural for us, the space which our country had been torn off artificially for hundreds of years and the idea of unification with which was brought to us by numerous generations of Georgians.” “Now we are standing on the verge of this space. We should enter Europe as the country with ancient history and unique culture, which will make its contribution to diverse European culture. Our and European ideological links, closeness and relations counts already centuries. This is the relationship which stood the time.” He said that “qualitatively new stage starts in the history of Georgia.” “We entered the path, which should deepen and strengthen our relations with European states. Today is a very exciting and jubilant day for all of us, for the entire Georgia. Today the Georgian Parliament should ratify the Association Agreement with the EU, which has historic significance for our country. And we all are waiting for the minutes when the Parliament will reaffirm the historical choice of our people.” “After today’s discussions I am sure that you will unanimously support the agreement. It is great honor for us that the EU member states – Romania, Lithuania and Latvia have already ratified the EU-Georgia Association Agreement and I want to thank them especially. 25 more countries and the European Parliament will ratify the Association Agreement. We should duly start implementing of those measures, which will bring us closer to Europe and bring benefits to Georgian population,” Garibashvili said. “This year EU marks the 10th anniversary of eastern enlargement. We have all witnessed those huge benefits, which this historic EU enlargement has brought to new members, their populations and economies as well as old member states,” the Georgian PM said. “This is the most important period in the context of EU enlargement. This is, first of all, the process directed towards enlargement of the area of European values. It is especially important for us that even small countries in the European family play as important role in common European affairs as large states.” He said that with contribution to EU’s missions Georgia “has proved that it can be a reliable partner of our Western friends.” “We have already proved our reliability with participation in various peacekeeping missions and I am sure that Georgia’s capabilities in this regard will further be demonstrated through our future cooperation,” Garibashvili said. “Today I can state with pride that Georgia is an example, which has implemented successful democratic reforms and is ready to be a guarantor of peace and cooperation in the entire region,” he said. “We have stated for multiple times that Georgia has an
unwavering will to gain a worthy place in the united European family. A new stage of European integration process starts for us by signing the Association Agreement – interesting road towards Europe full of challenges, which demands huge efforts, dedication and support from each of us – the government, political forces and the entire society.” “We are obliged to work hard in order to ultimately appear where we see the perspective of our development; where we will feel ourselves safe and protected; where our identity will only be interesting for and respected by others.” “The Association Agreement is an action plan for our country’s modernization, Europeanization and we should implement this plan thoroughly. This plan envisages commitment to democratic principles and I believe that it will be the process of tireless work,” the PM said. “This agreement offers Georgian population the possibility to come closer to the European rule of life. With approximation to the European political, economic, social and legal standards we will bring welfare and stability to our people and our country. I am happy that our people will soon enjoy all those benefits, which the European states offer to their citizens.” “One more important priority of EU-Georgia cooperation agenda is non-visa rules with EU states. Progress in this process is especially important for us, because non-visa rules will bring the most tangible results to our citizens,” he said. “The EU-Georgia Association Agreement acts on the entire territory of Georgia within our internationally recognized borders. Accordingly, we express an unwavering will and readiness to share the benefits gained from the Association Agreement with all of our citizens living in Abkhazia and Tskhinvali Region.” “Therefore, today I want to address our Abkhazian and Ossetian brothers from the parliament’s rostrum – my friends, you will share all those achievements and successes, which will be gained by Georgia by approximation with Europe. You will have a unique chance to enjoy all these benefits, including non-visa rules with European countries, the largest EU market for businesspeople, participation in educational programs or many others,” Garibashvili said. He thanked the EU for its “unwavering support to Georgia’s territorial integrity within its internationally recognized borders and for providing firm political support to our country.” “The EU representatives demonstrated unprecedented support towards Georgia. It was a demonstration of unique relationship during this entire period and we appreciate it highly and thank them for it. Just with the support and help of our Western partners, friends we were able to overcome lots of difficulties and to reach this day.” “And finally, let me reiterate that Georgian people have chosen European and Euro-Atlantic integration not as the best, but as the only foreign political orientation, which is fully in line with our values and aspirations on the path towards democracy, peace and welfare. Just therefore, I want to say special thanks to our people, who made European integration into national idea and despite of many dangers, it did not betray this ideas even for a minute,” the PM said. “I want to thank each and every person, who made their contribution to Georgia’s EU integration.” “Dear lawmakers, I again call on you to support the ratification of the EU-Georgian Association Agreement, to support European future of our country in order to make our country modern, strong and European state once and for all,” Garibashvili said.
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GEORGIA RATIFIES EU ASSOCIATION AGREEMENT
he Georgian Parliament ratified the Association Agreement with the EU, also including deep and comprehensive free trade area, at an extraordinary session on July 18. The agreement, signed in Brussels on June 27, was endorsed by the Parliament unanimously with 123 votes. President Giorgi Margvelashvili, PM Irakli Garibash-
vili and government members, as well as foreign ministers of Bulgaria and Latvia, Kristian Vigenin and Edgars Rinkēvičs, respectively, the second speaker of the Austrian parliament Karlheinz Kopf and EU Commissioner for Enlargement and European Neighbourhood Policy Štefan Füle were in the chamber in Kutaisi as the Parliament voted for the ratification of the Association Agreement.
EU COMMISSIONER ADDRESSES GEORGIAN PARLIAMENT AA will be followed by ‘more intensive international scrutiny’; ‘Demands on Georgia will increase’; ‘At the end of process, Georgia will increasingly resemble EU-member state’; ‘Georgia is lucky to have such a strong national proEuropean consensus’ Govt can ‘count on pro-European credentials’ of parliamentary opposition; Addressing the Georgian Parliament just before it unanimously ratified the Association Agreement on July 18, EU Commissioner for Enlargement and European Neighbourhood Policy Štefan Füle said that it was a “momentous step” in Georgia’s history. “Using the Association Agreement as its foundation, Georgia will introduce reforms which will progressively bring the country into the European mainstream – economically, socially, and politically,” Füle said. In his 13-minute speech before the Georgian lawmakers in the chamber in Kutaisi, the EU Commissioner said that although the Association Agreement is not an accession agreement with the EU, its full implementation will make Georgia “increasingly resemble” a EU-member state. “The [Association] Agreement leaves the way open for future progressive developments in European UnionGeorgia relations. By implementing this Agreement fully Georgia will create ‘facts on the ground’,” he said. “At the end of the process, Georgia will increasingly resemble a member state. This would create a very different context in which to have this discussion. But most importantly it would mean that the Georgian people would already benefit from many of the advantages which European Union membership would bring. So I urge you to remain focused on the key challenge, which is to implement the agreement in full over the coming years.” The EU Commissioner urged the Georgian lawmakers “to devote equal energy not just to the technical aspects of the agreement but also to its spirit.” “I know that Georgians take their politics very seriously, and sometimes very personally,” he said. “Feelings run high, and it can be hard to put differences to one side and to search for consensus. But the European agenda offers a platform for such consensus. Strong institutions, and a firm attachment to principles rather than people, are essential.” He said that with the signature, ratification and provisional application of this agreement, “the demands on Georgia will increase.” “This includes not less, but a more intensive international scrutiny,” Füle said. “Georgia is lucky to have such a strong national consensus in favor of integration with Europe, and an active and vibrant civil society plays a special role in this regard. The government could also count on the strong pro-European credentials of the opposition in this house,” he said, refereeing to UNM parliamentary minority group. “Given the difficult situation in the wider region, I believe that Georgia’s pro-European forces have a strong interest in uniting. You have a common interest in capitalizing on this great potential for unity,” Füle said. “I urge all of you to reflect a spirit of unity and solidarity in the execution of your responsibilities as Georgia’s leaders. Disagreement and debate are essential in a healthy democracy, along with respect for divergent views and above all for the institutions of democracy, and for the law.”
He said that he’s confident Georgia is ready for challenges it will face along the way of implementing the agreement. “Your commitment over recent years, under successive governments, to pursue ambitious reforms leaves no room for doubt,” Füle said. “Georgians know only too well that rewards come to those who put in the effort. But this is your choice, and you can count on the European Union to support you in that choice.” “I know that some Georgians fear that implementing the Association Agreement will prove costly. No one should be under the illusion that these reforms will be easy. Investment will be needed to meet new regulatory standards, for example. But some benefits will quickly become apparent,” he said. He said that although Georgian agriculture has enormous potential, it requires further modernisation. “It can certainly compete on the European and the global stage, but to do that it will need reform and investment, not least in skills among the workforce,” Füle said. “Reforms take time. We know this, and that is why the Association Agreement includes transitional periods to give Georgia the time it needs to complete the process. In some areas – including agriculture – the transitional phase will last for a number of years.” He said that the ratification of the agreement by the Georgian Parliament would open the way for “a swift provisional application” of the treaty, including its deep and comprehensive free trade agreement. “Immediately upon entry into force, the European Union will remove all import duties on imports from Georgia. Georgian companies which export to the European Union will benefit right from the start. Companies will also benefit immediately from simpler conditions for establishing their businesses in the European Union and in Georgia. Not only does this help Georgian companies who wish to do business in the European Union; it will also boost investment and create jobs in Georgia with immediate effect,” Füle said. Bulgarian and Latvian foreign ministers, who were present in the chamber, also addressed the Parliament. “Georgia has been a frontrunner in the region and beyond in establishing democratic institutions and implementing economic reforms,” Bulgarian Foreign Minister Kristian Vigenin said. He said that the Association Agreement “is not the end point of our cooperation.” According to Vigenin the Bulgarian Parliament is likely to ratify the Association Agreement between Georgia and the EU next week. Latvian Foreign Minister Edgars Rinkēvičs said that Georgia and EU Eastern Partnership will constitute an important part of Latvian EU presidency; Latvia will assume EU’s rotating presidency from January, 2015.
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PUBLICITY July 21, 2014 #63
caucasian business week
INTERVIEW July 21, 2014 #63
caucasian business week
HANS ROSLING: IN THE FUTURE, GEORGIA WILL HAVE TO CHOOSE BETWEEN ONE -BILLION EUROPEAN MARKET AND 9-BILLION MARKET OF ASIA AND AFRICA
AN INTERVIEW WITH PROFESSOR, SWEDISH ACADEMY MEMBER HANS ROSLING -The methodology of calculating unemployment level is one of the problems existing in Georgia. Different organizations have different results, not to mention the social issues. How can we
resolve this issue? - Indeed, the methodology is crucial. For example, can a woman who stays at home to bring up a child and not looking for a job be considered an unemployed? Or for example, who are villagers in Georgia - employed or self-employed? To live in the countryside and work the land is very good, but if there is an opportunity to earn enough for a living? There are a lot of issues, but the main is that the methodology should be one and immutable. - People often talk about the relationship between economic growth and population growth. How do statistics confirm this trend? - Population is determined by proportion of the younger generation. Some governments think they can control the birth rate, but the fact is that in poor countries with an uneducated population, the birth rate is significantly higher, and vice versa, when the standard of living increases, the birth rate falls. At the same time when economic growth is stable, the number of children grows. - Then the most stable birth rate must be in Europe? - There is practically no growth in the EU. Rich
countries will not be able to achieve even a 5% increase, and it is quite logical, since their economy is already very highly developed. Georgia needs rapprochement with the EU, although in the long term I can advise the Asian market.The European market is 1 billion, Asian - 5 billion, African- 4 billion. Where is it more profitable to trade - on one billion or 9-billion market? Though of course, we do not know what will be tomorrow in these countries - look at Iraq, Ukraine ...A situation is especially tragic with Ukraine which has a huge potential, but catastrophic condition of the economy. It is a country with German level of education and the level of economy as in Guatemala. - How do you think, can social development outpace economic? - Can. If we take the example of Georgia, major social investments have been made in education. Georgia’s economy is just much smaller. In order a social growth to be even more pronounced, new investments are needed. But the economic growth will not come automatically. Look at Cuba. The people are educated there, but
the economy is communist that hinders development. - Where did the communist idea emerge? In the National Library of Great Britain. Why? Because at that time there was a very unfair economic system based on the exploitation of child labor, slavery, and social inequality in a country with a high level of education. - Whereas today successful countries are based on very different principles - a free market, a wellfunctioning state apparatus and the civil society sector. These components are the most important and not ideology. - What is the optimal state apparatus - the smaller the better? - Not the size of government but its effectiveness, the quality of work is important. Private business is good, but what to do with the mentally ill, lonely? The private market does not regulate all this; effective state apparatus is needed for this. Of course, all depends on the country, Sweden is a rich country, Georgia -poor, so you cannot automatically adopt the experience. Each country must make its own choice.
KAKHA BENDUKIDZE: IRAN IS LESS DANGEROUS THAN RUSSIA
AN INTERVIEW WITH THE ADVISER TO THE GOVERNMENT OF UKRAINE KAKHA BENDUKIDZE - You once said that it would be very difficult to carry out reforms in Ukraine, as systemic corruption is the main problem the country faces. What do you think about this now? - Now I think the same. Ukraine faces a real danger. Maybe in a year it will not exist in today’s borders. For example, it is said in Ukraine that taxes should be reduced and they will do it in 2016, but
it is necessarily to survive until 2016. If the government doesn’t begin to act now, it will be just another country. If they do not carry out reforms, then Putin will come and implement them himself - in his own way, of course. - We are talking about the reforms carried out in Georgia in 2004-2007? - In Ukraine, energy subsidies, which we did not have, play a very important role. Georgia managed to move very quickly to the market principles in the energy sector, in Ukraine a situation is quite different.To put it simply, they spend $ 150 per ton of coal, and then sell it for $ 50. Energy subsidies of all kinds generally occupy 12% of Ukraine’s GDP, that is, if 40% of the budget of Georgia went on energy subsidies. It’s impossible to even imagine. - Now what do they have to do? - Something they do, but slowly. For example, electricity tariffs were increased and brought closer to market level. It is clear that they have serious problems - if they stop subsidizing Donetsk and Lugansk, the entire population will oppose the government – as this is a region where a number ofminers reaches 180 000, so it’s a big problem. - Will a rejection of Russian gas bear any risk to Ukraine? - Actually, no, since Ukraine has enough its own gas. If to sell it at the market price, then it will be-
sufficient for the whole country. In Georgia, the economy is much less energy expending, several times less than in Ukraine. For example, Ukraine has four nuclear power plants, which produce cheap energy, but they do not work full-time as the authorities made a political decision to use more expensive gas and coal for energy production. Motivation was not to live people without job. But there is no such approach anywhere in the world. In Russia there was a very large coal industry, but it has been reformed, after which only profitable mines survived while unprofitable- were closed. Big reform was carried out in Poland. Ukraine did not do anything, so coal companies lay a heavy burden on the economy. The practice of tax evasion and money laundering in the industry has become widespread. - If we talk about Russia, how they will benefit from getting such a large area as the Crimea in the long run? - In 2013, the Russian government issued economic growth forecast which has been revised several times. According to it, in the next 20 years the country’s economy will grow by 2.5% per year, which is very small, just ridiculously small. Certain sanctions have already been imposed on Russia, they certainly are pretty bland, but their escalation is inevitable.
“KAZANTIP” TO KICK OFF ON AUGUST 20 On 20- 30 August the electronic dance music festival “Kazantip” will be held in Anaklia. The project manager Nikita Marshunok met with Georgian journalists and told them the details of the upcoming project. Infrastructure works have already started in Anaklia, installation of the stage and construction of the tent city will be ready by August 10. 200 foreign DJs, including 13 local, will arrive in Georgia to participate in the festival. In order to get to the festival, one must register on the site of the festival, take the so-called visa, which costs USD 175- 262. Why was it decided to hold a festival in Anaklia, how much will it cost? NIKITA MARSHUNOK answered CBW questions. - Why did you choose Anaklia? What is the reason? - Anaklia has a huge potential and it was impossible to ignore such a proposal. Another factor is that Georgia is an open country - obtaining visas to foreign nationals is very simplified, respectively, it will be very easy to get into the country. In general, I’ve heard a lot about Georgia, though I’ve never planned to hold “Kazantip” here. Now the situation has changed.
- Which is a feature of your project? - This will be a large-scale electronic music festival, which will be attended by 200 foreign and 13 Georgian artists. It will be an unforgettable sight. In society, there is a clear lack of information about “Kazantip”, so we invited members of the media in Anaklia. I am staying in Georgia for more than a month and personally supervise all the preparatory work. - What do the local residents feel about “Kazantip”? - I have repeatedly met the local residents. I often go with my wife to talk to them, and then they realize that that I’m not as awful as it looks on TV, I have normal thoughts and ideas. - Nevertheless, there is a public perception that the festival will promote drugs and lechery. What can you say to that? - In the world there are no countries where drugs are allowed. There are countries with soft laws and there are others where they are tough. In Georgia, the legislation is tough, respectively “Kazantip” will take into account local realities. It’s generally unnecessary to talk about drugs as the police will be mobilize to control this situation. As for my personal relationship with drugs, I can say that I am totally against any drug. I get a posi-
tive without drugs. As for lechery, the festival is not designed to promote lechery, it is aimed to inspire a sense of happiness in people who want to relax. - Do you plan to conduct “Kazantip” in Georgia in the future? - I have no doubt that the festival will bring great success to Georgia. We want Anaklia to become the center of youth recreation, and music is the best way for this. So, I’m sure that “Kazantip” will take place in Georgia in the future. - How many tourists do you expect? - 20 000 people have already registered on the official website. Registration will continue until the end of July, and we expect this figure will at least double. - As for the financial side of the issue - how much does the festival cost and what profit do you expect? - At this stage, I cannot say anything about the amounts. There is no project that would cost the same amount in different places. Festival should be primarily of high quality. I can only say that USD 4, 6 million were spent last year. As preparatory work is underway in Anaklia, I cannot name the specific numbers. Let’s talk about figures on September 1.
- How real are tougher sanctions, given Europe’s energy dependence on Russia? - This question can be divided into two parts - oil and gas. As for oil, Russia sells to Europe 150 million tons, and it can easily be replaced by Iran, although certainly not immediately. Ideally, the Iranian and Iraqi oil may be enough, it should be noticed that Iran is less dangerous for the world community than Russia. Iran does not occupy but two uninhabited islands in the Persian Gulf. If the Iranians want, they will be able to do 5 atomic bombs in 10 years, while Russia has now – 2 300. Which of them is dangerous? Naturally, Russia. As for gas, Europe now receives from Russia 130 billion cubic meters of gas per year. Alternatively, the EU has terminals which allow obtaining 120 billion cubic meters of liquefied gas, and they are loaded by only 20%. - Can Georgia’s role as a transit country grow in this situation? - Of course, Georgia’s role will grow. Azerbaijan becomes even more important partner for Turkey and Europe. I cannot say that this will lead to the prosperity of Georgia, but they are very good projects, and will be very useful if they are implemented. This will increase our energy independence and grow revenues in the budget - not 2-3 times, of course, but in any case, there will be growth.
ECONOMY July 21, 2014 #63
caucasian business week
POST A NEW LAW PERHAPS DHL, TNT, UPS AND FORTY LEAVE THE COMPANY ON THE MARKET
inistry of Economic Development Ministry has developed a draft “Postal Union”, which is economically unreasonable in this segment of the market introduction of state regulation. Elaboration of the draft law, international companies operating in this segment of the market (DHL and TNT), as well as “Transparency International - Georgia” First Deputy Minister of Economy and Sustainable Development, Mr. and Mrs. Natia Mikleadze Kumsishvili met on April 16. An agreement was reached during the negotiations provided for in this bill, a number of issues. Despite this agreement, the Ministry of Economy and Sustainable Development of the revised billdid not reflect the agreed regulations: “Post” draft proposed regulations directly contradicts current international practice and EU - Georgia Association Agreement commitments. The bill has a negative effect on the market in this segment of free, fair and competitive business existence. draft provided by the introduction of new regulations in this market segment of international companies - DHL, TNT, UPS and forty members of the company, which is now on the market for operating activities in a formal / bureaucratic barriers turn and These companies will be forced to leave the Georgian market. similar cases only in Turkmenistan in 2005. The draft law envisages: 1. Market monopolization “of the Post” by As a result of the adoption of the draft law “On Post” national operator status directly (without any competition) will be given an unfair discounts and receive, making it a place in a privileged position compared to other companies. In particular, “the Post” will be a monopolist on the market for 5 years
and the other operators only “The Post”, “umbrella” will be able to deliver their services. 2. Regulations that are contrary to the principles of free market economy As a result of the adoption of the bill only “Georgian Post” to 30 pounds to the weight of the exclusive International Packages The economic feasibility is not justified and is not consistent with the principles of a free market economy. 3. Leading international practice of lining The bill is contrary to international practice, which, according to the Postal Union of the full liberalization of the market, the promotion of free competition (EU Directive 2002/39/EC) and “Postal backup service” Range Cancel (EU directive 2008/6/EC) in this area is considered to be successful in reforming the way .”Post” contrary to the law of the EU - Georgia Association Agreement commitments undertaken, which sets out the principles of liberalization of postal and courier services market, providing “universal postal service” and the postal service in other markets, the separation of species and their separate regulation. Recommendations We call on the Ministry of Economy and Sustainable Development, “Post” to submit the draft law to the parliament to ensure the following: - “Mail” in the bill by the postal service in the field of legal settlement activity in line with the rule of law and international best practices; - Postal services in the field of activity of the system by implementing an adequate legal regulation, liberalization and abolishment of monopoly in this market segment; - Universal postal service provider a national operator (According to “The Office”) to protect the objectivity and transparency in the selection process.
ADB MAINTAINS DEVELOPING ASIA GROWTH FORECAST
eveloping Asia remains on track toward steady growth in 2014 despite slower-than-expected growth in the United States (US) in the first quarter, says a new Asian Development Bank (ADB) report. The Asian Development Outlook (ADO) Supplement, released today, maintains ADB’s April forecast of 6.2% growth in 2014 and 6.4% in 2015 for the region’s 45 developing economies. “Developing Asia as a region continues to perform well,” said ADB Deputy Chief Economist Juzhong Zhuang. “The pace of the growth moderation in the People’s Republic of China (PRC) is in line with our expectations while the stage is set for India to pursue reform that could unlock its growth potential.” The major industrial economies are anticipated to expand by 1.5% this year, a downward revision from the 1.9% forecast in April’s ADO 2014. Softer US growth has been somewhat offset by Japan’s robust first quarter performance while the euro area has generally met expectations. In East Asia, quarterly growth in the PRC met ADB expectations with steady consumer demand, targeted government measures to stabilize investment, and a pickup in external demand in the second quarter of 2014. Both retail sales and industrial production have been picking up pace. Overall, the PRC is on track to meet ADO 2014 forecasts of 7.5% growth in 2014 and 7.4% in 2015. Improving prospects in India have buoyed South Asia’s growth outlook somewhat. The new government—the first to hold a single-party majority in the lower house since 1984—outlined a 10-point plan to revive the Indian economy prioritizing infrastructure and investment reforms, faster resolution of inter-ministerial issues, efficient policy execution, and policy stability. While detail on the structural reforms remains limited, it is expected that greater political certainty will support a pickup in infrastructure investment. ADB maintains its growth forecast at 5.5% for fiscal year (FY) 2014 but upgrades its FY2015 forecast by 0.3 percentage points to 6.3% as anticipated reform bears fruit. Pakistan’s growth for the fiscal year that ended in June surprised on the high side—4.1% compared to the ADO 2014 forecast of 3.4%—and Nepal’s growth was seeing a strong finish to its fiscal year. Overall, South Asia’s 2014 forecast
is nudged up 0.1 percentage points to 5.4%. The improved outlook in India pushes up the subregional forecast for 2015 from 5.8% to 6.1%. The outlook for Southeast Asia has softened as growth prospects falter in Indonesia, Thailand, and Viet Nam. In Indonesia, first quarter 2014 growth slowed to 5.2% as soft external demand, low commodity prices, and the temporary ban on select mineral exports undermined the recovery of net exports. Thailand’s economy contracted by 0.6% in the first quarter as the political deadlock affected domestic demand and tourism. Viet Nam’s growth forecast has been slightly adjusted to account for the effect of tensions with the PRC on economic activities including recent factory riots. The 2014 forecast for the subregion is downgraded by 0.3 percentage points to 4.7%. As the factors slowing growth in 2014 are expected to be temporary, the forecast growth of 5.4% in 2015 has been maintained. Growth in Central Asia is gradually moderating, with many economies affected by the deteriorating outlook of the Russian Federation. Revised projections reflect weaker-than-expected performances in Kazakhstan, Kyrgyz Republic, and Uzbekistan so far in 2014. Aggregate growth projections for the region are revised down to 6.3% in 2014 and further to 6.1% in 2015, from 6.5% forecast for both years in ADO 2014. A devastating tropical storm in Solomon Islands and weaker-than-expected indicators for Palau and Timor-Leste are holding back growth in the Pacific. Overall, Pacific GDP is expected to grow 5.2% in 2014, a 0.2 percentage point decline from the ADO 2014 forecast. The pace of growth is expected to soar to 13.2% in 2015 led by a one-time growth surge in Papua New Guinea from its first full year of liquefied natural gas exports. The Asian Development Outlook is ADB’s main economic forecasting product. It is published each April with an update published in September and brief supplements published in July and December. All materials are available at www. adb.org/data/publications/main. ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members—48 from the region. In 2013, ADB assistance totaled $21.0 billion, including co-financing of $6.6 billion.
istort the market” thinking we imagine government regulations, taxes, subsidies, which may interfere with market mechanisms to achieve optimal benefits. For example, if you pay 100 euros for a taxi 30 minute service (as it is in many European capital), you can, it is easily subject to government regulations that taxi drivers are in a special certificate requests (the highest price set), and if we ignore such a request (certificate), Taxi drivers will have a greater desire to manage, which will increase supply and reduce prices. It should be noted that the government is not a “market distortion” is the only reason.Culture and religion are seriously involved in the market (and government) to manage and potentially impede him achieve the most benefit. For example, nepotism - a cultural norm in many non-European countries - is hampering the efficiency of the labor market. Cultural norms, the market where trading could move some sakonelita and underground services, lifelong learning and encourages crime and corruption on the hard ground. The case is a clear example of “sexual services are provided.” The world’s oldest profession in different cultures have different attitudes. In some countries (such as Singapore), prostitution is allowed, but not regulated, some are (the Netherlands), the profession regulated only in special facilities and services - saroskipoeb occurs. Other states, including Georgia, is considered a crime. In countries where prostitution is legal, this area brings considerable income (net income of approx. 100 billion U.S. dollars). If ignoring the moral aspect, there are many economic (and not only) factor, which is why prostitution should be legal. ECONOMIC BENEFITS It is no secret that the sex industry in every country there is a stable part of the underground economy. Laundering regulations and give a tax collection method. The income can be used to improve the general picture, better educated and more professional opportunities for young women to initially deal with the challenging problems of prostitution. State of Nevada (USA - the only state where prostitution is legal) annual tax income of $ 20 000 women sex workers - reached (Ayres, 2003). Many developing countries, prostitution is the main export product and the means of getting money from foreigners. For example, “Kyodo News” - a survey of South Asia in the years 1993-1995 revealed that prostitution in Thailand with an annual income of $ 22.5 - $ 27 billion dollars. EQUITABLE BENEFITS The presence of prostitution underground, complicating the police and the justice system.Unfortunately, police prostitution-related expenditures of the information is not available.Nevertheless, legalization would solve the problem of overcrowded prisons. Based on the available information, only the state of California in 2010 involved 11 thousand people were arrested for prostitution. Legalization will not only reduce the expense of the people, but also to increase the police kmedunarianobasa. Attention of the police force and prostitution on the streets in search of facts, rather than move to more serious crimes. Another important benefit is the reduction of the legalization of criminal activity that is related to (illegal) prostitution. Look at those countries where it
is legal profession, we see that the statistics indicate the decrease of sexual violence and trafficking. It is also important that individuals involved in the legalization of prostitution protection from abuse. You can not call the police about a crime and applications when your profession is itself a crime. In countries where prostitution is illegal, prostitutes often meet women victims of violence.Gary raidvma (serial killer who murdered 48 women), said that he was killing women prostitutes because he knew that no one would punish him for it. Reduced health risks Last, but not least important argument is that legalization reduce sexually transmitted diseases, including HIV infection risk. The main source of nonregulated prostitution, the spread of such diseases. Legalization (and regulation) will be a powerful weapon to solve health problems. Sexual workers will be obliged to undergo periodic examination, will have improved health education, access to contraceptives, and medical services. Legalization will not only reduce the spread of sexually transmitted diseases, but also saves costs for a large proportion of which is spent to combat this type of diseases. The data provided by the Center for Disease Control and Prevention in the United States that allows for such a conclusion. According to these data, Nevada, which, as noted above, the only places are created, where prostitution is legal, sexually transmitted diseases in the United States to train a few people to prove it - the scale. Typically, illegal and unregulated prostitution is often linked to the drug industry. Legalization would help countries to reduce drug dependence. Drug dealers often try to “hook for $” (drug addicts to make) sex - workers, in order to have better control over them and they will employ dilerebada. Legalization, the brothel will protect employees and help them overcome their drug addiction. WHAT’S HAPPENING IN GEORGIA? Given the increased influence of the Orthodox Church, the government, the parliament and the public, the legalization of prostitution, I think a very distant prospect. Despite the fact that the State recognizes the role of the Orthodox Church in the country’s history, the Christian worldview dogmasa and should not be given a key role in the formation of the country’s legal system. On the one hand, to reject the legalization of prostitution, it’s just an ostrich posture and eyes dakhuchvaa what until now has always existed and undoubtedly will continue to exist. This issue is important to properly analyze the costs and benefits associated with aralegalurobas prostitution, the legalization of the adoption of which we can. On the other hand, the poor prostitution activity is unchanged (see Lena edlundis the last survey), while exacerbating poverty in his ban. The economic benefits of legalization would help the poor overcome such a situation and develop new economic opportunities. In the meantime, people will be able to cultural, religious and legal restrictions and avoidance of “close to best” solutions. Market by the restrictions of a conveniently tackle - one of the best examples of “Uberi” (Uber) - A new booking software that allows smartphone owners to hire a private hire cars anywhere. “Guardian”, according to London’s taxi drivers - license holders - are engaged in a real war, and the users, for this opportunity to have a real celebration held anywhere - at the office, at home or at the airport. iset.ge/blog
BUSINESS caucasian business week
July 21, 2014 #63
TBILISI HOSTS ANNUAL BEER FESTIVAL
he 5th annual Tbilisi Beer Festival was held on July 12-13 at Rose Revolution Square, organized and initiated by Natakhtari brewery where thousands of people attended. This year, despite the hot, muggy weather, the festival drew a large crowd who cooled down with a beer or two. According to Nino Surmava, the company’s PR Manager, the first anthem of the festival was performed and there was Karaoke too. “We also created special coins for buying beer as last year we had paper coupons. Additionally, the World Cup Final was broadcasted for the visitors,” she continued. “Everyone can come and enjoy the environment created by the festival, while beer lovers have the opportunity to try different types of beer including Natakhtari, Kozel, Mtieli, Efes, Herrenhauser and Kaiser, listen to live music, play games and
“FOODPANDA GEORGIA” AND “SUBWAY” FRANCHISE OWNERS SIGN PARTNERSHIP MEMORANDUM
n July 11th, 17:00 local time, Director of “Foodpanda Georgia”, Giorgi Kerkadze, and representative of the “Subway” franchise group Givi Ordenidze signed a partnership memorandum in frames of making Subway’s entire product service available to Foodpanda customers. The deal, which was signed in the latest Subway restaurant that opened in Georgia, means that anyone with a Foodpanda account can order and customize their Subway sandwiches right from Foodpanda’s website or mobile application. Attending the event was Pawel Netreba, Foodpanda’s regional director, who gave his thoughts regarding the agreement. - What do you think this partnership means for Foodpanda Georgia? - “Branching out and encompassing as many food service chains as we can has always been Foodpanda’s priority. I think it’s great that deals of this scale are already being made, considering how new our company is to Georgia. And we all know how everyone loves sandwiches, and no one does it better than Subway. It’s great!” - Do you consider this deal important for Subway’s services, as well? - “In short, yes. We provide a unique opportunity for all food services in that we present them with an online hub which they can utilize, basically, as their online ordering platform. It’s a huge advantage to any customer knowing that in order to get their favorite type of Subway sandwich delivered to their doorstep, all they need to do is visit Foodpanda’s website or open the app on their smartphone.” - Subway’s sandwiches are famous for being
highly customizable and provide endless variations which may be problematic to implement in an online ordering system. Was this considered? - “It just so happens that it was, yes. Both on our website and in our apps, the Subway category uses a specially-designed system which lets users manually construct their sandwiches online, just like they would in the restaurant. The prices are calculated accordingly and – as per our policies – presented to the customer without any additional fees from our end. It’s very comfortable to use, and it’s absolutely the best way to order Subway’s amazing sandwiches straight to your home.” - How do you see Georgia’s and Foodpanda’s cooperation so far? - “I think things are going well. We have struck deals with over 50 restaurants in Georgia and we are happy with the performance foodpanda Georgia has shown over 3 month period.. Subway is a major milestone and I’m hoping to see more and more successes in making Foodpanda the go-to online food ordering platform in Georgia. For those who have not tried yet, we think it’s time for you to test our amazingly convenient service through our website or mobile application, which is available for free download for all 3 major Smartphone platforms - from App store, Google play and Windows phone store”. - Do you think that’s actually on the horizon? - “Why not? Foodpanda is an international brand that spans over 40 countries in the world, it’s a very strong contender to make itself the best at what it does. I have strong faith in our company and deals like these reinforce it more than anything else.”
simply have fun,” she clarified, adding that they created a special, supervised place for kids enabling parents to leave their children while they enjoy the evening. During the event, Elene Kalandadze and Dato Iluridze performed for the audience together with bands like The Jetbird, Ara, Jgupi Kvela, Friendly Mosquito, LOUDspeakers and Frani and Robi Kukhianidze. Cheese House gave beer drinkers a chance to fill up on food, offering 11 varieties of cheese to the customers with affordable prices, including cheese with mint, Gauda, Becheli, Chechili and Georgian Parmesan cheese. As Surmava stated, around 25,000 liters of beer were consumed last year, while they expect this number to double this year. In addition, the festival is also celebrated in seven other cities in Georgia.
INTERVIEW July 21, 2014 #63
caucasian business week
GEORGIAN CHEESE – THE PRODUCT WITH 80-CENTURY HISTORY AND ENCOURAGING FUTURE New Business Project – Cheese House Opens On May 10 the Cheese House was unveiled at no. 20a Aleksandre Kazbegi Avenue in Tbilisi. The store offers a wide variety of cheese products, including many forgotten and, in most cases, publicly unknown varieties of cheese. It is worth noting the store trades in Georgian and Georgia-made European cheese varieties such as Gouda, Parmigiano, Mozzarella, Bierkase and so on. Clients are able to both buy and taste the cheese. On the second floor there are several tables and comfortable environment for taking a seat and tasting cheese, ordering wine, beer or other drinks. ANA MIQADZE, one of the owners of the Cheese House, noted a Cheese bar will launch operation in the near future. The bar will trade in cheese and related dishes, Khachapuri, pizza and cheese soups, Achara cuisines, Kaimaghi, Borano, Tirano and so on, that is, popular varieties. How many cheese varieties are registered in Georgia, how informed the society is about it, is Georgian cheese able to find its niche on foreign markets, on these and other issues Ana Miqadze, a head for the Cheesemakers Guild in Georgia and Cheese House founder, talks in her interview for CBW.
- Prior to opening the Cheese House, you have visited various regions of Georgia to find new cheese varieties. It is interesting which varieties you have found in this or that region of Georgia? -Having started working on the project, I preferred to search all varieties from the Region of Samegrelo. This region is famous for Sulguni cheese and I supposed to find many cheese varieties in Samegrelo. But later I made sure this was not real and, on the contrary, the cheese well turned out in the region of Samtskhe-Javakheti. Various cheese products are made in almost all villages in this region. Ordinary Chechili cheese is made there, as well as Moldy Chechili, Moldy Butter, Tenili Cheese, Cheese ripened in a kid’s belly with excellent taste characteristics. I was absolutely shocked when exploring this culture of Meskheti. I have made sure this region is a genuine cheese well. By the way, the Kakheti Region was considered to be lacking cheese varieties and to have only Guda Cheese in Highland places, in Akhmeta, Tusheti. Indeed, Guda Darbaiseli is a complete cheese, but no one knew about Chongi that I have found in this region. Chongi is ripened in a sheep’s skin as a tender cheese for greasing on bread. This variety is consistency of a cottage cheese, but it is preserved in a sheep’s skin and may be added to the category of sourish cheese varieties. Moreover, there are two varieties of cheese in the Kakheti Region, Iakin Kalti and Ordinary Kalti. These varieties are also cottage-cheese consistency. When tasting Kalti Cheese, you feel to be tasting all highland grasses. -It is interesting what factors have preserved these cheese varieties. Is this the result of traditions or are there records of technologies and recipes? - Unfortunately, there are no similar records. No information has been preserved on milk and diary products manufacturing in Georgia. All this information is preserved in ordinary people, families, by the way, among shepherds, most of all. One day I met a very strange cheese variety with shepherds in Vardzia hills. I asked them, whether they had cheese of special taste and the shepherd answered they had, but he sincerely noted, I would not like it. I insisted on showing it to me and he exposed that cheese that had been preserved in a pot. The shepherd had put spoiled cheese in the pot and added garlic, savory, bitter pepper. I tasted it and I was astonished because this was a valuable and complete dinner with complete and genuine cheese taste. -Are you interested and do you explore the genealogy of technologies or the history of making a cheese in this or that region of Georgia? - All these issues need search and new findings. A human follows a taste and any variety of cheese is a taste. I would recall the history with Roquefort. In the
raining a shepherd forget a cheese in the cave that he had taken for a meal. A month later he occasionally turned out in the same cave and the forgotten cheese was founded moldy. The shepherd took the cheese to home and tasted and this taste astonished him. It is said the history of Roquefort Cheese started since then. This is a tenderly preserved, corked and moldy cheese that has been widely acknowledged. A human may find a taste by occasion or may create the taste himself. - Today, a major part of the Georgian population knows only four varieties of cheese basically and prefers to enjoy them. It is worth also noting the Georgian society has got quite conservative attitude to the taste issues. Do you think our population will accept new varieties and how acceptable does the population will find all this? - When talking about taste characteristics, first of all, we should note cheese is born in the world that seemingly shows conservative attitude to the tastes. For example, over 20 special varieties of cheese are made in the Foka Monastery, including the cheese of European technologies. The Monastery applies European, classic, ripening technology. Thus, affairs are not as bad as it seems. As to the dissemination of this knowledge and this information, public perception of this information, attitude of restaurant networks and ordinary consumers, I would like to note all of them understands these factors very well. We have organized a show-room for sales and exhibition and we are trying to expose all varieties of cheese in one space. Representatives of restaurants come to us and ask us whether we are able to provide guaranteed supply of this or that cheese variety. Indeed, we provide such a guarantee. I would like to say we have managed to involve Georgian farmers in our process and we have decided not to stop production of this or that cheese variety. -Have you ever thought of integrating cheese cultures of various regions of Georgia? -Indeed, I have resorted to similar little hooliganisms, because creativeness is driving any production. It is inadmissible to stay on the same place. I have got one friend, expert Manana Baramia with inexhaustible fantasies. We jointly made a cheese pot, then smoked the pot and put knits of Tenili Cheese in this pot, that is we integrated Megrelian Smoked Cheese with Meskhetian Cheese and we received a very tasteful product. The National Museum of Georgia preserves 100 year old cheese figures, that is various figures of cheese and Sulguni, small deer, goats, rings, bracelets, chains and so on. All these samples were found in various regions, mainly in the Samegrelo Region, by the way, similar figures are still made in Samegrelo. -It is interesting how old is the cheese production in Georgia? -When I saw 28-century milk container at the Mtskheta Archeology Museum, I was absolutely shocked, because it was drilled in the middle part, that is this container was not for milk, this was a cottage-cheese container. I told the museum director to pour some liquid in the container, indeed, the liquid would be definitely poured out. This container has a drilled bottom, from where, I think, serum was to leave the container. It has got also a lip, supposedly, for pouring out a serum. This container made me surprised and I was saying to everyone Georgia had got a 2800year history of cheese production and what kind of a cheese container we had. Archeologists told me then very modestly this age was childish in archeology and they added a 8000 year old cheese container was preserved at the National
Museum in Tbilisi. This is not exaggerated, because the cheese production accounts for 4 000 years and all this starts from the first Egyptian who took a skin on shoulders and took a long way. On the way the milk turned sour and he returned to his place with this soured milk. When he tasted it, he liked it and this is the commencement of cheese production history. -It is interesting whether the Georgian cheese has got potential to penetrate foreign market and be successful there? Even more so, the markets are quite competitive, because many countries produce cheese. Is Georgia able to compete with these countries and find its own niche on these markets? -Indeed, I think about these issues, but there are many smarter people, besides me, who think about this too and many of them analyzes the situation from the economic and financial points of view. Even more so, after the conclusion of the EU Associated Membership Agreement, I am often asked how we are getting ready for the European market and whether we will offer the cheese products European consumers will like. I have definitely answered, Indeed, we will do, we produce such cheese products, because both EU and the remaining world prefer to buy not factory cheese, but find something interesting and tasteful. The Georgian cheese has to find its niche, the niche of a boutique cheese. This cheese is requested all over the world. Moreover, there is one strange cheese variety that is made in one of the Serbian villages from donkey milk. They grow high-productive donkeys and make cheese of donkey milk and one kilogram of this cheese costs 1500 GBP. This signifies this variety is very expensive and it belongs to a rare category and we will follow this niche too. I am sure the world will be interesting in our products, but some time is required, indeed. -In this case technological pureness and volubility, certification are very important. A worldwide recognized institution must exist that would permit its representation in Georgia or would arrive in Georgia and prove this or that variety is made of genuinely Georgian technologies. -I would say there is two approaches to cheese products worldwide. The consumer chooses either safe cheese with all certificates and all standards, when milk production and processing standards are protected, that is a factory cheese, or there is another category, farmers’ cheese. A shepherd living in mountains, at about 3000 meters above the
sea level, without electricity boils milk by timber and makes cheese in this way. I personally as a cheese expert, definitely, will choose farmer’s cheese, because I prefer taste characteristics. So, every person chooses safety or taste characteristics. He will choose either boutique cheese or factory cheese. - Famous French political figure Charles de Gaulle has said – how would you rule the nation that has got over 500 cheese varieties. How many cheese varieties have you counted in Georgia? - I would like to say Saqpatenti has registered 14 cheese varieties due to indications of origin as part of our project, including Dambal-Khacho, Tenili Cheese and even Chogi and Kalki that were not taken as Cheese previously and today all of them represent valuable cheese products. So, we have registered 14 cheese varieties, but I have got recipes of 60 Georgian cheese, indeed, with their own names and we can provide positioning of 60 varieties of Georgian cheese. At the same time, I would like to say if we add mint to ordinary Georgian cheese, we will receive entirely new variety of cheese and the French have received 400 cheese variety in this way. - The Georgia market is small and enthusiasts for various cheese tastes are not discerned yet and the people prefers traditional varieties. Do you find reasonable to increase the production of various cheese varieties. Does the Georgian market need such decisions? - I would like to say the interest is growing and many and many people asks for new varieties and seeks new tastes. Indeed, the Georgian market is conservative, traditional, stubborn, small. Nevertheless, these factors cannot hinder our success, even more so, the number of interested persons grows every day. - It is also worth noting all cheese manufacturing countries are very small, except France and several other countries. Small countries like the Netherlands and Switzerland have carried out expansion worldwide with their cheese products and they have considerable weight in the cheese production. Italy and France come after them. I do not say tomorrow we will produce such volume of Dambali Khacho and Tenili Cheese that we will be able to meet the world demand, but we are able to occupy boutique, family cheese niche and produce cheese varieties that is demanded in the world. We will produce in small volumes, but expensive and worth products. We plan to take this niche by our production.
PRESENTATION caucasian business week
July 21, 2014 #63
BANKING NEWS July 21, 2014 #63
caucasian business week
TBC BANK CLIENTS TO ENJOY SERVICES OF INTERNATIONAL COUNSELORS
mall and medium-sized enterprises, which are clients of TBC, will get technical and consulting assistance from the foreign counselors. The bank informs that Business Support Program of TBC and Dutch technical assistance program PUM Netherlands senior experts gives this opportunity. Special contest will select 10 companies, which will be able to invite Dutch specialists for several weeks, with minimal expense, for development of their business. On the second stage they will sent employees to Holland for the fellowship. The consultations in Georgia
and Holland include technical and management issues. The applicant should meet the following criteria: should be borrower of TBC, should have employed 10 and more people and has obtained 2-years working experience. Priority spheres are industry (among them any kind of industry and processing) and agriculture. PUM Netherlands senior experts funded by government of Netherlands, unites over 3000 specialists experts, managers, entrepreneurs and consultants, which promote development of entrepreneurship in various countries, among them in Georgia, for over 30 years.
TBC BANK WINS EUROMONEY MAGAZINE’S BEST BANK IN GEORGIA 2014 AWARD
n its 23rd annual Awards for Excellence, Euromoney Magazine has named TBC Bank the Best Bank in Georgia in 2014. This is the third time the Bank has been commended by the publication, having won the same award in both 2011 and 2012. In selecting the winners of its prestigious awards, Euromoney has stated that it “combines quantitative data with informed and important subjective judgments to honor those institutions which have brought the highest levels of services, innovation and expertise to their customers.” TBC Bank’s strong net income and lending growth, continued leadership in internet banking, as well as important innovations, such as the SME Support Program and a range of bancassur-
ance products, are highlighted by Euromoney. Commenting on the news, Vakhtang Butskhrikidze, TBC Bank’s Chief Executive Officer said: “We are honored to win this highlyregarded award from Euromoney Magazine. This recognition is a testament to our continued focus on excellence in financial services and commitment to the highest industry standards.” Now in its 23rd year, the Awards for Excellence continue to be the most respected awards in the financial services industry. The Awards cover more than 20 global product categories, best-inclass awards in all regions and the best banks in close to 100 countries around the world. The full list of winners will be published in the July issue of Euromoney.
PASHA BANK SPONSORS BUSINESS DEVELOPMENT FORUM
ASHA Bank, a full service corporate bank, sponsored the second Business Development Forum that was held on July 10th at the exhibition centre Expo Georgia. Advisory firms, financial services sector representatives and international donor organizations all took part in the event. Forum, which consisted of the exhibition and conference, provided an excellent venue for business to business interaction. 20 companies participated in the exhibition. Over 250 participants from various business sectors attended the conference. Mr. Giorgi Kvirikashvili, Minister of Economy and Sustainable Development of Georgia, addressed the participants with the opening speech. Challenges faced by the Georgian economy, ways of improving the business climate and creation of new investment opportunities dominated the conference agenda.
Welcoming speech was also delivered by Mr.Shahin Mammadov, CEO of PASHA Bank in Georgia. “It is a big honour to sponsor such a valuable event for the business sector in Georgia. We are dedicated to developing the full potential of the Georgian economy. This is not the first time that PASHA Bank in Georgia has sponsored an economic conference. One of the main objectives of PASHA Bank on the Georgian market is to provide financial support and a contribution to investments and trade activities of domestic players. Arranging such roundtables is helpful for the representatives of the private sector and officials to share ideas and discuss issues that will bring the economy to a better place,” said Shahin Mammadov, CEO at PASHA Bank in Georgia. The inaugural Business Development Forum was held in September 2013with more than 300 participants in attendance.
PASHA BANK SPONSORS ADIZES METHODOLOGY AND 4D BRANDING SEMINARS
IN JUNE HIGHEST AMOUNT OF MONEY WAS TRANSFERED TO RUSSIA
mount of the money transfers made from Georgia equaled to $14,107 million (06/13 -12 million). Compared to previous month, the amount has reduced - in May $14,454 million was transfered from Georgia to abroad. Source: National Bank of Georgia The data includes transfers through banks and microfinance organizations.
BY JULY 11 PREFERENTIAL AGRO CREDIT PORTFOLIO EQUALS TO 402 350 000 GEL By July 11, 2014 Preferential Agro Credit portfolio equals to 402 350 000 GEL.
Source: Projects Management Agency Preferential Agro Credit started last year, on March 27. At first it included 3 components, later leasing, winery and citrus production components were added, this year - grant and loans for the fruit exporters.
ASHA Bank, a full service corporate bank, sponsored seminars - A New Management Paradigm for a New Age of Managers, and 4D Branding - Surprise Branding. The events took place on July 11-12th at the exhibition centre of Expo Georgia. ShohamAdizes, Vice President of Operations and Director of Training and Certification at the Adizes Institute/USA, and Thomas Gad, Founder and senior brand strategist at Brandflight, a consultancy/Sweden, led the seminars. Dr. Ichak Adizes, founder of the Adizes Institute, is one of the world’s leading experts on improving the performance of business and government through fundamental change. Over the past 40 years, he has worked with some of the largest organizations in the world, and consulted with many heads of state. Shoham Adizes has been with the Adizes Institute since 2001. Working with organizations around the world, assisting with massive restructuring programs he has helped a wide
variety of organizations achieve high levels of sustainable growth. Thomas Gad is an experienced and inspirational branding authority, with more than 20 years’ experience. He has worked on brand development, communication and advertising for some of the best known companies in the world, including, Nokia, Scandinavian Airlines, Procter & Gamble, Compaq and Microsoft. Thomas Gad has developed a unique 4-dimensional method of creating, transforming and maintaining brands and published this in the bestselling book 4-D Branding. Thomas Gad founded Brandflight in 1997. “As an young, fast growing organization we are always on the lookout for the cutting edge developments in business thinking and practices. It is a big honour for us to contribute to this excellent opportunity of introducing these internationally renowned experts in the fields of branding and organizational development to the Georgian business community” - said Goga Japaridze, Commercial Director at PASHA Bank in Georgia.
CIS caucasian business week
July 21, 2014 #63
US READIES TO IMPOSE UNILATERAL SANCTIONS AGAINST RUSSIA
fficials in the United States called European Union ambassadors this week for a closed-door meeting in the White House to urge their governments to impose tougher sanctions on Russia over the situation in Ukraine. If European countries refuse America’s request, however, the Obama administration is reportedly ready to announce so-called sectorial sanctions on its own. Three unnamed government officials who participated in the meeting confirmed to Bloomberg that
the US is ready to act unilaterally as early as this week. Representatives for European nations are currently in the midst of meetings in Brussels at the EU Summit, and on Wednesday they reportedly plan to announce the imposing of additional sanctions against Russia, according to the Associated Press. But if “EU officials fail to enact strong sanctions,” the AP reported out of Washington early Wednesday, the US may take its own actions. At the Brussels meeting, all 28 member-states
of the EU must agree on what sanctions will be lobbed against Russia. The Wall Street Journal reported earlier in the week that that European leaders are expected to end that conference with the announcement of “modest” measures aimed at Russian businesses tied to the current crisis in Ukraine, and early Wednesday a draft document was published by Bloomberg News alleged to contain the EU’s conclusions concerning imminent action against Russia. The French government particularly demands that the latest sanctions target new individuals or entities and do not hit entire sectors of the Russian economy. France has a $1.6 billion military contract with Russia and is supposed to deliver two ‘Mistral’ class helicopter carriers within the next years. Along with France also Italy, Slovakia, Greece and Austria reportedly voiced objections to broader sanctions. Nevertheless, the EU “condemns the continuation of illegal activities by armed militants in eastern Ukraine,” the draft says, and the 28-nation bloc will “proceed with the expansion of restrictive measures.” Moscow has been hit with rounds of sanctions already from the international community in response to Russia’s accession of Crimea in March after the majority of the peninsula’s population voted on the referendum to join the Russian Federation. Western countries also accused Putin’s
government of providing military and logistic assistance to separatists in Eastern Ukraine — a claim that Russia categorically denies. Now as the EU prepares to make a formal announcement concerning new sanctions against Russia, the AP’s sources say Washington will respond if necessary with actions of its own. “Until now, the US has insisted on hitting Russia with penalties in concert with Europe in order to maximize the impact and present a united Western front,” Julie Pace reported for AP on Wednesday. “The European Union has a far stronger economic relationship with Russia, making the 28-nation bloc’s participation key to ensuring sanctions packages have enough teeth to deter Russia,” Pace added. “But those same economic ties have made Europe fearful that tougher penalties against Russia could boomerang and hurt their own economies. After weeks of inaction, the officials say the US is now prepared to move forward alone if EU officials fail to enact strong sanctions during a meeting Wednesday in Brussels.” Previously, the US has announced sanctions against dozens of Russian officials and businessmen, as well as multiple banks and energy companies. Bloomberg News’ sources say that most likely future US sanctions will ban sales of dual-use technologies to targeted Russian entities and bar financial institutions from buying assets of some Russian banks in an attempt to prevent them from getting access to world financial markets. Other measures are also on the table. Meanwhile, Russia reportedly is preparing a harsh response if such actions are taken by the US or EU member states. On July 8, Deputy Finance Minister Sergey Storchak said, according to Bloomberg, that Russia would prepare “serious countermeasures” if the sectorial sanctions are imposed.
LEAKED: EU TO CUT LOANS AND INVESTMENT FOR RUSSIA, PUNISH CRIMEA
9 EU COUNTRIES READY TO BLOCK ECONOMIC SANCTIONS AGAINST RUSSIA
U leaders may impose a new round of sanctions against Russia at Wednesday’s summit, including blocking trade and investment in Russia and Crimea, according to media sources that have obtained a copy of a draft statement. EU leaders may impose a new round of sanctions against Russia at Wednesday’s summit, including blocking trade and investment in Russia and Crimea, according to media sources that have obtained a copy of a draft statement. Unsatisfied with Russia’s role in calming down anti-Kiev separatists in eastern Ukraine, the EU is poised to dole out more sanctions on Russia, according to a number of media outlets who have seen a draft version of the summit communique. New sanctions may include expanding the blacklist of Russian companies and individuals to match the US, trade barriers, more asset freezes, and economic relations with Crimea. The EU may expand asset freezes and target companies “that are supporting materially or financially actions undermining or threatening Ukraine’s sovereignty, territorial integrity and independence,” the statement says, Bloomberg reports. The EU may refuse any Russian participation with the European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD), cutting off all new project funding. Suspending lending from these institutions would hurt Russia, the biggest loan recipient from the London-based EBRD. Last year Moscow received $2.5 billion (1.8 billion euro) in invest-
rance, Germany, and Italy are among EU members who don’t want to follow the US lead and impose trade sanctions on Russia. US sanctions are seen as a push to promote its own multibillion free-trade pact with Europe. “France, Germany, Luxembourg, Austria, Bulgaria, Greece, Cyprus, Slovenia, and EU President Italy see no reason in the current environment for the introduction of sectorial trade and economic sanctions against Russia and at the summit, will block the measure,” a diplomatic source told ITAR-TASS. In order for a new wave of sanctions to pass, all 28 EU members must unanimously vote in favor. EU ministers plan to discuss new sanctions against Russia at their summit in Brussels on Wednesday, July 16. Even if only one country vetoed, sanctions would not be imposed. With heavyweights like France and Germany opposed to more sanctions the measure will likely again be stalled, the source said. According to the source, the US sees slapping Russia with sanctions as a way to promote its own trade agenda with Europe, a side rarely explored in mainstream media. The Transatlantic Trade and Investment Partnership (TTIP) between the US and Europe would create the world’s largest free trade zone, but some worry it could balloon into an “economic NATO” or could end up putting corporation interest above national. “Last year the EU and the US started difficult negotiations on a free trade agreement, which would force the EU into serious concessions, in particular, agricultural quality standards and regulation on genetically modified products. In this circumstance, restrictions against Russia will force EU countries to expand trade with the US,” the source said, citing shale gas as an example. On June 20, Czech President Milos Zeman came out against sanctioning Russia, saying there is “no reason” to further “isolate” the country. America was successful in getting Europe to toe its sanctions agenda at the height of the Ukraine crisis, but now Russia has removed its troops from the Ukraine border and promised peace in the region, Europe isn’t interested in further sanctions.
ments from the EBRD and $1.4 billion (1 billion euro) from the EIB. Russia used the money to finance a variety of projects: from pipeline valves, property purchases, and a loan to a hypermarket chain. There are two Russian projects currently awaiting funding from the EBRD, one a 300 million euro plan to promote energy efficiency, and the other a $180 million loan to lease agricultural and forestry equipment. The EBRD invests about 9 billion euro annually across Europe, central Asia and North Africa, and is more than 50 percent owned by the G-7 nations and Canada. The US has a 10 percent stake in the institution, and Russia has 4.05 percent. The bank has a total of 64 shareholders. BRICS establish $100bn bank, currency pool to cut out Western dominance Calls on Russia halt interventions in Ukraine “have not been fully met,” the draft says, according to Bloomberg. Europe has much stronger economic and energy ties with Moscow than the US. Powerhouse economies like Germany, France, and Italy have all been wary of burning economic bridges with Russia, fearing business and growth will suffer. Angela Merkel, the German chancellor, has said Europe won’t ease off on sanctions. The summit on Wednesday is primarily tasked with filling key EU jobs, and notably to name a new foreign policy chief to replace Catherine Ashton. Speaking at the BRICS summit in Brazil, President Putin suggested the five-nation bloc come up with a way to protect against sanctions and US-driven foreign policy.
The EU initially followed the US cue when it imposed sanctions on Russia after the reunification of Crimea in March, but these measures were limited to politicians and businessmen. The EU unleashed a second round which expanded the list to over 72 individuals, who cannot enter the EU or access any assets there. BOOMERANG EFFECT Russian officials maintain that sanctions are counterproductive, and will end up hurting the West more than they will Russia. Another reason EU countries are wary of slapping Russia with economic sanctions is the possible spillover effect. Unlike the US, European countries rely heavily on Russia as a trading partner, especially for natural gas. The World Bank estimates that if sanctions escalate European gas prices could jump 50 percent. Europe clearly has much more to lose by punishing its neighbor, with annual trade in goods and services worth $330 billion. American trade with Russia, by contrast is just a tenth of that at $38.1 billion. Deals with UK-based BP, US-based Weatherford International, and ExxonMobil, continue to show that most countries continue to do business with Russia, politics aside. Italy was the first country to speak out against Russian sanctions. Rosneft, the world’s largest listed oil company, recently acquired a 26.2 percent stake in Italian tire company Pirelli. Igor Sechin, boss of Rosneft and on the US sanctions list, joined the board of the Milan-based company. Three other Rosneft representatives, as well as the CEO of Russia’s second largest bank, VTB, sit on the board.
AZERBAIJAN July 21, 2014 #63
caucasian business week
SOFAZ EARNS ENORMOUS PROFIT FROM ACG, SHAH DENIZ PROJECTS
zerbaijan’s state oil fund SOFAZ has gained over $102.8 billion from 2001 to July 1, 2014 by implementing the project of developing the giant Azeri-ChiragGunashli (ACG) block of oil and gas fields in the Azerbaijani sector of the Caspian Sea. The fund earned around $7.78 billion from ACG project from January 1 to July 1, SOFAZ toldTrend Agency on July 16. The ACG block of fields has been active since 1997. Production started from the Chirag part of the field. It was followed successfully by Azeri Project; Central Azeri production in February 2005, West Azeri in December 2005, and East Azeri in October 2006. The Deepwater Gunashli section launched production in April 2008. SOFAZ also said from 2007 to July 1, it gained $1.893 billion by implementing the development project of the giant Shah Deniz gas condensate field in the Caspian Sea. SOFAZ earned some $296 million as part of the Shah Deniz project from January 1 to July 1.
The Shah Deniz field, one of the world’s largest gas-condensate fields, was discovered in 1999. Its reserves are estimated at 1.2 trillion cubic meters of gas. Overall, the field has proved to be a secure and reliable supplier of gas to Azerbaijan, Georgia, Turkey, and Europe. SOFAZ, an entity that accumulates and manages Azerbaijan’s oil and gas revenues, was established in 1999 with assets worth $271 million. The main aims of the fund include, accumulation of revenues, investment of assets abroad to minimize negative impacts on economy, preventing the ‘Dutch disease’, ensuring savings for future generations, and maintaining the current social and economic standards in the country. The assets of SOFAZ has increased by 2.07 percent as of April 1, 2014 compared to early 2014 ($35,877.5 million), standing at $36,618.4 million. Since the first quarter of 2012, the fund started purchasing gold, and the amount of the purchased gold reached to 30 tons 175 kg (970,146 ounces) as of April 1.
AZERCELL’S SHAREHOLDER GETS TELE2’S NORWEGIAN OPERATIONS
zercell’s main shareholder European communication giant TeliaSonera is acquiring Tele2’s operations in Norway, according to a message from Azercell. The company has also committed itself to 98 percent population coverage for 4G by 2016, two years ahead of its obligations. Tele2 operates under the brand names Tele2, One-Call, My Call and Network Norway. The number of mobile subscriptions was 1,133,000 and the number of fixed subscriptions was 60,000 at the end of the first quarter. The transaction will increase TeliaSonera’s mobile market share in Norway to approximately 40 percent from 23 percent while the mobile subscription base will increase to 2.7 million from 1.6 million. In order to show the benefit of consolidation for the customer, TeliaSonera is accelerating the 4G roll-out to reach 98 percent population coverage by 2016 instead of 2018. This valuable acquisition will improve competitiveness and ability to offer mobile internet services to enterprise customers and consumers in the entire country, including the rural areas where large investments are needed. Once the acquisition is completed Tele2’s customers will have access to a nationwide 4G network which currently covers 3.2 million people and in 2016 virtually all Norwegians. TeliaSonera will continue to offer a variety of brands on the Norwegian market, both premium and low cost brands. The acquisition is expected to be finalized in the first quarter of 2015 at the latest.
TeliaSonera provides network access and telecommunication services that help people and companies communicate in an easy, efficient and environmentally friendly way. From Norway to Nepal, TeliaSonera is presented in Azerbaijan, Denmark , Estonia, Finland, Georgia,Kazakhstan, Latvia, Lithuania, Moldova, Nepal, Norway, Russia, Spain, Sweden, Tajikistan, Turkey andUzbekistan. Being the first 4G provider and European’s leading telecom provider TeliaSonera holds 190.6 million subscriptions and 25,741 employees worldwide. Being a part of TeliaSonera group of companies and adopting the best European experiences Azercell continues to introduce latest technological innovations to the Azerbaijani market. Azercell Telecom LLC was founded in 1996 and since the first years sustains a leading position on the market. Azercell introduced a number of technological innovations in Azerbaijan: GSM technology, GPRS/EDGE, 24/7 Customer Care, full-time operating Azercell Express offices, mobile e-service ASAN imza (ASAN signature) and others. With 51 percent share of Azerbaijan’s mobile market Azercell’s network covers 99.8 percent of the country’s population. By the end of 2013 the number of Azercell’s subscribers reached 4.5 million people. In 2011 Azercell deployed 3G and in 2012 the fourth generation network - LTE in Azerbaijan. The company is the leader of Azerbaijan’s mobile communication industry and the biggest investor in the non-oil sector.
OIL TRANSPORTATION VIA BTC JUMPS
round 17.6 million tonnes of oil was transported via the BakuTbilisi-Ceyhan (BTC) oil pipeline in Jan.-June 2014, versus 16.6 million tonnes in the same period of 2013, Azerbaijani State Statistical Committee reported. BTC accounted for 75 percent of the total volume of oil transported via the country’s main oil pipelines in Jan.-June, the report said. BTC transported some 33 million tonnes of oil in 2013, versus 32.9 million tonnes in 2012. The country’s main oil pipelines transported a total of 23.3 million tonnes of oil during the reporting period, which is 7.3 percent more than in Jan.-June 2013, the Statistical Committee said. The total length of the BТС is 1,768 kilometers including a 443 kilometer long section running through Azerbaijan, a 249 kilometer long section in Georgia and a 1,076 kilometer long section in Turkey. The construction of the pipeline started in April 2003. It was filled with oil on May 18, 2005. BTC Co. shareholders are: BP (30.1 percent),
AzBTC (25 percent), Chevron (8.9 percent), Statoil (8.71 percent), ТРАО (6.53 percent), Eni (five percent), Total (five percent), Itochu (3.4 percent), Inpex (2.5 percent), ConocoPhillips (2.5 percent) and ONGC (2.36 percent). The report said that some 3.1 billion cubic meters of gas was transported via the South Caucasus Pipeline (Baku-Tbilisi-Erzurum) in Jan.-June, versus 2.1 billion cubic meters in the same period of 2013. Baku-Tbilisi-Erzurum gas pipeline transported around 4.7 billion cubic meters of gas in 2013, compared to four billion cubic meters in 2012. A total of 11 billion cubic meters of gas was transported via the country’s main gas pipelines in Jan.-June 2014, which is 9.8 percent more than in the same period of 2014, according to the report. The length of the Baku-Tbilisi-Erzurum pipeline is over 700 km. The gas produced at the Shah Deniz field in the Azerbaijani sector of the Caspian Sea is transported via this pipeline and is supplied to Georgia and Turkey. Azerbaijan also is a buyer of this gas.
AZERBAIJAN ATTRACTS $84 BLN FOREIGN INVESTMENT
ne of the main priorities of Azerbaijan’s government has been promoting its non-oil sector. Attracting investments, advanced technologies and management experience from abroad is one of the main directions of the country’s economic policy, said Azerbaijan’s Economy and Industry Minister Shahin Mustafayev in his article published on the official press on July 16. He noted Azerbaijan has achieved most of its goals in this field, and added the country successfully attracted $83.8 billion worth foreign investment from 1995 to 2013, some $35 billion out of which accounted for non-oil sector. Political and macroeconomic stability, secure protection of investors’ rights, favorable geographical location, rich natural resources and highly skilled workforce have turned Azerbaijan into one of the most attractive countries for foreign investments. “$10.5 billion foreign investment was invested in Azerbaijan’s economy last year and it is important to direct over half of this amount to non-oil sector,” he added. “Over a quarter (26 percent) of the foreign direct investment was made by Turkey. Azerbaijan’s second and third largest direct investors are Great Britain (16 percent) and the U.S. (12 percent). As for investment in fixed capital, the Great Britain invested $18 billion in Azerbaijan, the U.S., $7 billion, and Japan, $4 billion,” the minister said. Azerbaijan’s State Statistics Committee said the total volume of foreign investment made in Azerbaijan’s fixed capital in the first half of 2014 amounted to 2.2 billion manats. This figure is 15.8 percent more compared to a same period last year. Some 80.3 percent (1.794 billion manats) of investment was made by foreign countries and international organizations in January-June 2014. Investors from the UK, Norway, U.S., Turkey, Japan and France invested in Azerbaijan during the mentioned period. Some 134 countries were Azerbaijan’s foreign trade partners in the period. The total trade turnover of the country in the first half of year amounted to $15.37 billion.
In January-June, Azerbaijan conducted export transactions amounting to 11.25 billion, and import volume of the country stood at $4.12 billion. Mustafayev went on to add that today some 6,857 enterprises with foreign investments are operating in Azerbaijan. “Over one third of them, in particular 2,464 companies were established with the investment from Turkey, 570 enterprises with the investment from Russia, and 541 enterprises with the investment from Great Britain,” he said. “Foreign companies are actively involved as contractors and subcontractors in infrastructure and other projects implemented with public investment.” Also, the dynamic development, growth of financial opportunities and development of the private sector have made Azerbaijan an exporter of investment: the country has invested heavily in projects in Turkey, Georgia, Montenegro, Serbia, Switzerland and other countries. “Another indication of Azerbaijan’s positive image, formed in the international arena, is invitation of Azerbaijani business to participate in privatization and investment projects abroad,” he added. Azerbaijan has made a leap in the economic development in a short period and will continue this trend. “The dependence of the national economy on the oil factor will be minimized, and the country’s GDP will be doubled thanks to the development of non-oil sector by 2020,” Mustafayev noted.
CARGO TRANSPORTATION VOLUME THROUGH AZERBAIJANI SEGMENT OF TRACECA NAMED
round 23.4 million tons of cargo was transported via the Eurasian transport corridor (TRACECA, the Europe-Caucasus-Asia) through the Azerbaijani territory in January-May. This figure amounted to 24.3 million tons in the same period of 2013, Azerbaijan’s State Statistics Committee said. Vehicles accounted for 49.6 percent of the total volume of cargo transportation, railway - 33.6 percent, and waterway - 16.8 percent. Around 124.9 million people were transported via TRACECA in January-May, which is 7.9 percent more compared to the same period of 2013. The revenues from the cargo transportation via this corridor amounted to 202.4 million manats in the reported period, or 6.3 percent more compared to the same period of 2013.
The revenues from the passenger transportation stood at 43.7 million manats in January-May, which is 12.7 percent more than in the same period of 2013. TRACECA is an international transport program involving the European Union and 14 memberstates of the Eastern Europe, Caucasus and Central Asia regions. It has a permanent Secretariat, financed by the European Commission, in Baku, Azerbaijan, and a regional office in Odessa, Ukraine. Since 2009 the organization has been entirely financed by member countries. Azerbaijan, Bulgaria, Georgia, Kazakhstan, Armenia, Kyrgyzstan, Iran, Moldova, Romania, Turkey, Ukraine, Uzbekistan, Tajikistan, and Turkmenistan participate in the TRACECA program. The official exchange rate on July 16 is 0.7844 AZN/USD.
AZAL IN LIST OF MOST PUNCTUAL AIRLINES
zerbaijan Airlines (AZAL) , the biggest Azerbaijani airline and national flag carrier, has been named one of the most punctual airlines in a ranking published by the Russian Domodedovo International Airport. AZAL operated 111 dead-on-time flights in a month. Lufthansa became the most punctual airline company among foreign airlines as it operated 188 on-time flights in a month. The list also includes Rossiya, Izhavia, Pskovavia, Lufthansa, Dniproavia, and Japan Airlines, AzerTag state news agency reported.
Being the biggest Azerbaijani airline and national flag carrier, and a regional and CIS leader in the number of new aircrafts, AZAL offers its passenger flights to European countries, the CIS, Middle East, and Asia. The airline plans to open regular flights to several destinations in North America and Southeast Asia from September. The company cooperates with about 60 airlines to provide its passengers with an opportunity to travel freely around the world. Currently, AZAL’s fleet consists of Boeing 757200, Boeing 767-300, Airbus 319, Airbus A320, Airbus A340-500, Embraer ERJ 170-100LR and Embraer ERJ 190-100.
PUBLICITY caucasian business week
TBILISI INTERNATIONAL FESTIVAL OF THEATRE International Program
with elegant touch of reality… SEPTEMBER 20 - OCTOBER 8
“When you’re talking about Cloud Gate, magic is not too strong a word. ” Time Out 20 , 21 SEPTEMBER , 2014 Cloud Gate Dance Theatre of Taiwan, Taiwan And State Academic Ensemble “Rustavi”, Georia
SONGS OF THE WANDERERS Choreographer - LIN Hwai-min ABOUT SONGS OF THE WANDERERS A monk stands still at a downstage corner throughout the 90-minute performance, while a shimmering stream of rice grains showering from above and onto his shaved head. Golden rice grains on stage transform from a river to hills to a desert. Rice grains shower like a summer storm and waterfalls. Onto this landscape, dancers in ragged garb holding a tall staff, move slowly in a pilgrim journey... Inspired by the wealth of religious practices found throughout Asia, and Herman Hesse’s account of Siddhartha’s quest for enlightenment, Lin Hwai-min transforms ancient rites into resonant dance theatre. A visually stunning paean to spiritual pilgrimage, Songs of the Wanderers creates a world of intense reverence, distinctly Asian in its imagery yet with powerful relevance far beyond Asia. Spiritually evocative movements set to soulful Georgian folksongs, bring to life on a truly astonishing set with 3½ tons of shimmering golden grains of rice. The production has been acclaimed a masterpiece at most prestigious festivals and theatres in world. Since 2011, Songs of the Wanderers has also been presented with the live accompaniment of the Rustavi Ensemble of Georgia around the world. “…My recent years’ deepest musical impression is Georgian folk songs.” Igor Stravinsky The Georgian folk singing culture is rich and diverse. It depicts Georgian people’s inexhaustible
creative fantasy, complex and highly developed musical thinking. State Academic Ensemble “Rustavi” was created in 1968. During its existence the ensemble has successfully performed about 4000 concerts, travelled through about 70 countries (most of them several times), has held concerts in such prestigious halls as “Olympia”, “Mogador” and the “Theater of Player” in Paris, London’s “Albert Hall”, the Great Theater of Moscow, St. Petersburg, Vienna, Amsterdam, New-York, Tokyo, Cairo, Rome, Shanghai, Berlin and the great concert halls of other cities of the world met with ovations the “Rustavi”. At different times the “Rustavi” has recorded and produced on gramophone records and CDs about 700 Georgian folk songs, hymns and their different versions. It must be noted that 318 songs from this catalog were recorded by “SONY”. From the very first days of its existence, the “Rustavi” has always searched for the new ways and approaches. They recorded rare versions of forgotten songs from old singers in different parts of Georgia. They reconstructed some recordings made in the 1st half of the 20th century. Such working style has become the demand of the “Rustavi” and some of those recorded and reconstructed songs are included in the repertoires of most of the working ensembles in Georgia. Duration: 90 minutes Without Intermission Web-site; www.cloudgate.org.tw www.tbilisiinternational.com www.facebook.com/TbilisiInternational
July 21, 2014 #63
WORLD NEWS July 21, 2014 #63
caucasian business week
ARE THE BRICS IN MIDLIFE CRISIS?
re the BRICS (Brazil, Russia, India, China and, its most recent member, South Africa) in the midst of a midlife crisis? Based on recent data, this would appear to be the case. China grew at a rate of over 10% for 30 years but its growth rate has now slowed to around 7%, and it may fall further if the reforms to rebalance growth from credit-fuelled fixed investment to consumption are delayed at the risk of a hard landing. India, meanwhile, grew rapidly earlier this decade (9% plus in 2010-2011) but its growth rate slumped to 5% in 2013 and may only modestly pick up this year. The other BRICS are even worse: in 2013 growth was 2.5% in Brazil, 1.3% in Russia and 1.9% in South Africa. This year things will not be much better, and I forecast mediocre growth of 1.8% in Brazil, 1.7% in Russia and 2.6% in South Africa. Three of the five BRICS (Brazil, India and South Africa) are now part of what investors consider the Fragile Five emerging market economies (the other two being Turkey and Indonesia). These fragile emerging markets share weaknesses, such as large current account deficits, large fiscal deficits, falling growth, rising inflation and political and policy uncertainty, and they all face parliamentary or presidential elections this year. Last year their financial markets headed south (weaker currency, weaker bond markets and weaker equity markets) and this year could also be a challenging one. What ails the BRICS (and a few other emerging market economies)? First of all, while most of them implemented firstgeneration reforms, they failed to implement second-generation structural reforms that are more micro-based and boost productivity growth. As a result, their potential growth rate has fallen. Second, not only did they fail to implement market-oriented reforms, most of them moved towards a growth regime based on state capitalism:
an excessive role of the public sector and stateowned enterprises in the economy; excessive role of state-owned banks in the allocation of savings to investment and credit creation; trade protectionism; resource nationalism; and so on. State capitalism may have worked at earlier stages of development and during the global financial crisis, which had prompted a fall in private spending, but it is now distorting economic activity and leading to a fall in potential growth, as investment becomes less efficient. All of the BRICS have experienced stagnation of the business environment, with few reforms after 2006. With the easy sources of growth gone and the external environment less supportive, issues such as rule of law and operating rigidities become a more significant speed bump. Third, the commodity super-cycle is probably over – for a variety of reasons – and this hurts the BRICS that are commodity exporters: Russia, Brazil and South Africa. Given the slowdown of China, after years of high prices, commodity prices may fall further, hurting the growth of the commodity-oriented BRICS. Fourth, in the boom years for the BRICS and for emerging markets, macro policies became too loose, leading to overheating: excessive credit growth in part driven by excessive capital inflows; growing currency appreciation, which led to a loss of competitiveness and in some cases external deficit; and looser monetary and fiscal policy, given cheap external financing. The deterioration of macro policies was serious in Brazil, India and South Africa but even in China creditfuelled investment has led to a surge in public debt that will burden the official and shadowbanking system. Fifth, in some BRICS – specifically China and Russia – there is no demographic dividend, as the population is ageing for a number of reasons (one-child policy in China and more fundamental low fertility rates and high mortality rates in Russia). Lower population growth is associated with
lower potential growth. Sixth, many BRICS may end up in the middleincome trap, failing to progress to a higher per capita income. Solid institutions, good governance and appropriate macro policies, mobilization of savings, capital and labour inputs can lift an economy from a low per-capita income to middle-income status (as many emerging markets and most of the BRICS have done in the last two decades), but transitioning into a developed market is much more difficult. Indeed, World Bank studies suggest that only a small number of emerging market economies have escaped the middle-income trap, and as more emerging markets navigate from low to middle income, avoiding the trap becomes harder. Making the transition means moving from resource mobilization (of labour and capital) to sustained increases in total factor productivity growth, and requires innovation, investment in new technologies and the digital economy, an opening up of the economy and fostering of private-sector development. Innovation is harder to achieve than the mobilization of resources and the copying or reverse engineering of existing technologies. Thus, many BRICS may be close to the point where the easy sources of growth are gone, while the sources of fast growth that propel an economy to high-income status are harder to achieve. Of course, in spite of their recent economic difficulties, one should not be too pessimistic about the prospects of the BRICS. There are many reasons to be optimistic about their prospects for future growth. First, they are all large economies with large populations and markets, and three out of five still benefit from a demographic dividend. Second, in spite of the delays in the last decade, most may eventually shed a model of state capitalism and implement structural reforms that increase potential growth. Third, the macro weaknesses that some of them faced are solvable; none of them face the past risks of severe currency, sovereign or external debt crises. Fourth, some secular forces are still in their favour such as urbanization, industrialization, the catch up from low per capita income, the rise of stable middle classes and the development of a consumer-oriented society and economy. However, future success will depend on fixing macro-imbalances; implementing appropriate structural reforms; strengthening weak political and other institutions; shedding state capitalism; and opening up further their economies to global trade and investment. If such policies are put in place, the risk of hitting a thick brick wall of low growth will be avoided and the future of the BRICS could be bright again.
GOLD SPIKES ON MALAYSIA AIRLINES CRASH The price of the safe haven metal surged amid market nervousness over the crash in Ukraine
afe-haven gold spiked and stocks fell as investors took fright at the loss of a passenger jet in Ukraine near the border with Russia. Gold, a shelter for investors in times of uncertainty, surged as much as 1.9pc on reports the Malaysia Airlines aircraft, which was carrying 295 people, had been shot down.
Gold price Source: Bloomberg Meanwhile, the CBOE Volatility Index, a measure of investor anxiety known as the Vix or “fear index”, leapt more than 16pc.
Stocks were also shaken. The FTSE 100 closed down 0.7 at 6,738.32 and the Dow Jones Industrial Average immediately weakened as much as 0.5pc on Wall Street. The price of Brent crude also rose.
Dow Jones Industrial Average Source: Bloomberg
“As is always the situation when something tragic and sizeable happens, the markets tend to get a bit nervous and panicky,” said Alastair McCaig, an analyst at spread-betting firm IG, who added that “speculation tends to be rife” because of a lack of facts.
US FEDERAL DEBT TO REACH 106% OF GDP BY 2039
merica’s public debt will rise to 106 percent of GDP in the next 25 years, a level seen just once in US history - just after World War II, the US Congressional Budget Office (CBO) warned. US debt has skyrocketed to over $17 trillion, and is now about 74 percent of total gross domestic product, the CBO said on Tuesday. The only other time it was this high was during World War II. During the the financial crisis of 2008, it was only half of what it is now. “The unsustainable nature of the federal tax and spending policies specified in current law presents lawmakers and the public with difficult choices,” the CBO said in the report. Between 2015 and 2020 the public debt is expected to hover between 72 and 74 percent, but then begin to bulge after. By the end of 2024 the CBO predicts it will be 78 percent. Increasing debt will put a squeeze on long-term economic growth, which will increase the risk of a fiscal crisis. “Unless substantial changes are made to the major health-care programs and Social Security, spending for those programs will equal a much larger percentage of GDP in the future than it has in the past,” the report says. In the previous longterm budget outlook, the CBO reported public debt was 73 percent of GDP, and that by 2039 debt would reach 102 percent of GDP.
Worldwide, the US has the 11th highest debt to GDP ratio. Japan, the third largest economy, has the biggest debt as a percentage to GDP, with 180 percent. Greece has about 150 percent, and Italy has 109 percent. However, this ranking only takes into account overall ratios, and not the different levels of taxes in each individual country. In 2012, Germany, the fourth largest economy, had more than 80 percent of public
debt to GDP. If debt continues to increase, the likelihood of a fiscal crisis in the US increases, because investors will be unwilling to continue buying government debt. Or, if they continue to shell out loans, they will demand higher interest rates. The CBO is directed by economist Douglas Elmendorf, who works closely with the Speaker of the House of Representatives John Boehner.
FTSE 100 Source: Bloomberg
Investors were concerned about the Ukraine crisis even before the crash. Stock markets were lower throughout the day amid nervousness about the fresh sanctions imposed on Russia for its intervention in Ukraine, particularly those measures introduced by the US. Washington targeted Russian companies, such as oil producer Rosneft, blocking them from raising money from US debt and equity markets. The punitive measures sent Russia’s Micex index down 2.3pc, and Rosneft shares lost 4.3pc, although equity trading in Moscow closed before the plane went down. The Market Vectors Russia exchange traded fund, which tracks a basket of Russian companies and is traded in the US, slumped as much as 6.2pc on the crash. In London, shares in British companies with significant exposure to Russia also fell amid nervousness about the potential impact of the sanctions. Oil major BP, which holds a near 20pc stake in Rosneft, dropped 1.9pc. Russian steelmaker Evraz, which is a member of the FTSE 250 and is backed by Roman Abramovich, slid 2.8pc. The loss of the airliner similarly shock International Airlines Group, the parent company of British Airways, and pushed the shares down 3pc.
PUBLICITY caucasian business week
Every Wednesday At 21:00 On GDS TV Full of humor
Anchors â&#x20AC;&#x201C; Kotiko Toloraia, Levan Gogoreliani will offier refined humor, provide good mood and invite interesting guests for the program audience. The program consists of three parts: the first block offers humor and apolitical monologue with funny video clips, pictures and so on. The second and third blocks are dedicated to famous public figures that will be invited as guests. The show will start Wednesdays at 21 oâ&#x20AC;&#x2122;clock and it will cover all interesting issues excluding politics to guarantee good mood for the audience.
Guests: Chele, Nutsa Mestumrishvili, Nuka Orjonikidze, Qeti Jaoshvili, Ruska Chumburidze, Tamuna Morchiladze
July 21, 2014 #63
TBILISI GUIDE July 21, 2014 #63
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
July 21, 2014 #63