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September 29, 2014 #69

September 29, 2014, Issue 69

caucasian1 Billionaire Mashkevich still Interested in Investing in Georgia

BE INFORMED, DO BUSINESS

GEORGIA ARAB FINANCIERS DISCUSS GEORGIA’S INVESTMENT CLIMATE

rab investment company Dhabi Group believes the Georgian economy has potential and is expressing hope in the country’s business-friendly environment.

Issue of Subsidies for Citrusgrowers Remains Unresolved

Pg. 2

BARAMBO ENTERS IRAQI MARKET

arambo” company started exporting of itsproducts to Iraq. As a result of an active cooperation,a variety of sweets produced by the company will be fully represented on the Iraqi market. Pg. 4

“MACRO CONSTRUCTION” ENTERS DEVELOPMENT MARKET WITH “GREEN BUDAPEST” PROJECT

acro Construction” company enters the Georgian development market with the “Green Budapest” project with a total value of USD 45 million. Pg. 4

GEORGIAN RAILWAY BEGINS TRANSIT OF METHANOL

ccording to the press service of the “Georgian Railway” LLC, methanol was added to the transit goods transported by Georgian rail. Pg. 5

UNESCO HAS GIVEN NO SPECIFIC ADVICE ON SAKDRISI AND WILL NOT BE MONITORING IT

Pg. 4

GEORGIA IS OPEN AND SAFE FOR BUSINESS AND INVESTORS, SAYS PM GHARIBASHVILI

eorgia is not only open for business but it is as safe for businesses and investors as it is in any other country in Europe, Prime Minister Irakli Garibashvili told businessmen at a special New York investment seminar that specifically promoted Georgia as an ideal place to invest. Garibashvili believed business-friendly policies, strong regional trade relations, and location at the

his year, the International School of Economics at Tbilisi State University (ISET) admitted nine Armenian students and one from Azerbaijan. They came to Tbilisi for a preparation course in August and all of them applied for residency permits before the first of September. All applications were exactly identical. Out of ten students, seven got their permits, two were denied, and one is still in process. The reasons for rejection were stated in most general terms, relating to Article 18 of the new immigration law. That article reads: “An alien may be denied a residence permit in Georgia if there is a decision of an authorized body on the advisability of his/her residence in Georgia with regard to safeguarding state security and/or public safety interests.” Pg. 2

s of September 1, 2014, Georgia’s bank sector is represented by 21 commercial banks, including 17 foreign-controlled banks and two branches of non-resident banks. Pg. 9

AZERBAIJAN BELARUS READY TO SHARE HIGH-TECH EXPERIENCE WITH AZERBAIJAN

B CIS

EU AND UKRAINE RATIFY TRADE AGREEMENT IN HISTORIC VOTE

WORLD NEWS FRANCE TO ADOPT PLAIN TOBACCO PACKAGING AND RESTRICT ECIGARETTES

Pg. 2

GEORGIA’S NEW IMMIGRATION LAW: MANY LOSERS AND NO WINNERS

REPORT ON GEORGIAN BANK SECTOR’S ASSETS

elarus has expressed readiness to share its experience in high technologies field with Azerbaijan. Pg. 10

crossroads between Europe and the Asian continent would only continue to encourage growth and international investment. “[…] except that your costs and taxes will be lower, there will be fewer regulatory burdens, and your returns will be higher. Of everything I have said, I hope that sentence got your attention. Let me repeat it: investing in Georgia is as safe as investing in any country in Europe,” he said.

EBRD SELLS ITS HOLDING IN BANK OF GEORGIA Sale reflects strong institutional investor demand and increasing investor focus on Georgia

he EBRD has sold its 5% stake in Bank of Georgia Holdings Plc, the country’s largest bank. The 1,795,503 shares, representing the EBRD’s entire holding in Bank of Georgia, were sold in an Accelerated Bookbuild Offering launched after the stock market close in London on 23 September 2014. The transaction was successfully completed at a small discount to yesterday’s closing price of GBP 24.98 on the London Stock Exchange. The shares were placed

with a broad range of international institutional investors through RBC Capital Markets and UBS Limited as joint bookrunners. The EBRD‘s relationship with Bank of Georgia dates back to 1995. Since that time, the EBRD has provided Bank of Georgia with a range of products, including SME and energy efficiency credit lines, co-financing facilities as well as subordinated and convertible loans. The EBRD had held its current shareholding since early 2012 following the conversion of a financial package provided in December 2008 as part of its response to the effects of the global financial crisis. This financing helped rebuild confidence in the Georgian financial market and supported Bank of Georgia’s successful growth strategy and subsequent premium listing on the London Stock Exchange (LSE). Pg. 5

Control Tightens over Alcoholic Beverages Head of the National Food Agency Zurab Chekurashvili Pg. 4

Businesswoman Laura Gachava Plans to Open a Vocational School Pg. 4 Richard Branson tells staff: take as much holiday as you like Pg. 13

Pg. 9

MAIN EVENTS caucasian business week

GEORGIA IS OPEN AND SAFE FOR BUSINESS AND INVESTORS, SAYS PM GHARIBASHVILI

esterday’s Global Investment Symposium “Invest in Georgia” saw PM Garibashvili address business representatives and potential investors from all around the globe. The event convened in New York City as part of the United Nations General Assembly (UNGA), where selected country leaders and ministers were invited to speak about their country and highlight their nation’s economic climate and its investment opportunities. In Garibashvili’s address to business, finance and government leaders, the Georgian leader spoke about the advantages Georgia offered international investors in the framework of the Association Agreement and Deep and Comprehensive Free Trade Area Georgia recently signed with the European Union. “In Europe, we now stand on the edge of even greater development. At the end of June we signed our Association Agreement with the European Union, further integrating Georgia into a Europe whole, free and at peace. Georgia has always been a European country but this Association Agreement provides an essential avenue to rebuilding our connections with Europe,” Garibashvili said. Georgia’s political and economic relationship with the United States (US) was also a focus of Garibashvili’s speech, where he emphasized Georgia’s trade relationship with the US had “deep roots”. “We had a Bilateral Investment Treaty signed in the 1990s. Georgia also enjoys a GSP trade regime with the United States. Under this institutional framework, our economic and business

cooperation has strengthened consistently. The US-Georgia Charter on Strategic Partnership has made this institutional framework even more robust and our cooperation more trustworthy and reliable,” he said. Garibashvili shared some key statistics with investors and highlighted various initiatives the Georgian Government had been doing to attract more foreign investments. He also named two public and private investment funds with billions of dollars at their disposal to help finance foreign investments in Georgia. “Among those is the Georgian Partnership Fund which invests in large-scale investment initiatives and agriculture management funds, which successfully finances agricultural production. In addition, a newly established private equity fund – the Georgian Co-investment Fund (GCF) – serves as an investment vehicle dedicated to investing in Georgia and provides opportunity for investors to get exposure to the Georgian economy,” he said. Georgia’s Minister of Economy and Sustainable Development Giorgi Kvirikashvili also attended the symposium and said afterwards that a USbased company had expressed interest in investing in the construction of a sea port in Georgia. Georgia’s Ministry of Economy recently announced an Expression of Interest for the construction of a new Deep Sea Port capable to receive Panamax and Post-Panamax ships at Anaklia, a Black Sea coastal city. Garibashvili promised the potential investor that the Georgian Government could be enabling instrument but “it is up to the business to seize the opportunity”.

ARAB FINANCIERS DISCUSS GEORGIA’S INVESTMENT CLIMATE

rab investment company Dhabi Group believes the Georgian economy has potential and is expressing hope in the country’s business-friendly environment. The Arab financiers made the omission during a visit of Georgia’s Prime Minister Irakli Garibashvili to the United Arab Emirates (UAE). Dhabi Group, who already invested in Georgia including with Kor Standard Bank, announced construction of five-star hotel Millennium in central Tbilisi would be finished by 2015. UAE’s Minister of Culture, Youth and Community Development Nahyan Bin Mubarak Al Nahyan, who is chairman of Dhabi Group, gave the Georgian PM lots of information about the design and construction of the hotel, which will be built on Rustaveli Ave. Al Nahyan also expressed his readiness to increase the level of investments in Georgia. “Georgia has strong economic infrastructure, good services, good laws and safety and transparency.

These encourage investments to the country. The Prime Minister’s visit will support further deepening the relations between two countries and increase investments,” Al Nahyan said. Meanwhile, an agreement has been reached where Abu Dhabi Chamber of Commerce and Industry officials will visit Georgia in October. The Georgian Prime Minister extended an invitation to Al-Rumaithi and the private companies in Abu Dhabi to participate in a forum in Tbilisi organised by Asia Development Bank. The event attracted participants from all around the world. The announcement came after the meeting with the PM Garibashvili and Chairman of Chamber Mohammed Thani Al-Rumaithi. At the meeting both sides also discussed Georgia’s investment climate. Al-Rumaithi believed investment cooperation would be implemented. The United Arab Emirates was top fifth largest investor country in Georgia last year. In particular, the UAE invested $62 million USD – 7 percent of Georgia’s total investments in 2013.

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September 29, 2014 #69

GEORGIA’S NEW IMMIGRATION LAW: MANY LOSERS AND NO WINNERS

s things currently stand, the students in question will have to leave the country and discontinue their studies at ISET. The only option given to them is to appeal this decision in court, and this process will take months. The career plans of these two students, who had prevailed in a long and difficult selection process, are now irreversibly damaged. This is a tragedy for those students, for ISET, but also the country of Georgia. A LAW FULL OF FLAWS The new immigration law (and the manner in which it is being implemented) is already causing huge waves in the Georgian expat community. It is a subject of heated discussions on Facebook, at business meetings and parties. For one thing, the law poses unnecessary cost on those seeking residency. The most serious issue is that foreigners cannot apply for residency if they entered Georgia without a special visa which can only be obtained abroad. This rule was not communicated well, and it is not a good rule. Israel, for example, allows everybody to apply for residency inside the country within the three month stay that every visitor is granted. In Georgia, we know of employees of international organizations who now have to return to their home countries just for applying for a visa at the local Georgian embassies. And it remains to be seen whether Georgian embassies are capable of efficiently dealing with these visa requests. ISET is not the only university feeling the heat of new immigration regulations. In particular, it undermines the business model of Georgia’s medical universities which “sell” their educational services to foreigners. International students are typically not aware of the intricacies of Georgian visa regulations. Some had just returned for the start of the new semester only to find out that they have to go back to their home countries for a month in order to apply for special student visas, which means that this semester is lost for them. Who knows whether they will return at all? Another heavy flaw in the new law is the way in which it treats people who do not have regular employment. These may be freelancers with highly demanded expertise (such as architects and engineers) but also artists, persons engaged in culture, and “bohemians”. Thanks to many of these irregularly employed foreigners, Georgia was about to become a “cool” place, something that can be easily confirmed by reading their declarations of love for Georgia on the internet. To a considerable extent, this development came about because Georgia was so successful in attracting artists, bloggers, travelers and generally interesting people (who are considered to belong to the “cultural capital” of a country in economics). Being a “cool” place is not about having a lot of people who work from 9 to 5 every day, as Georgian lawmakers may have thought. Rather it is about artists and cultural entrepreneurs who may indulge in a precarious and unpredictable life. These people have a positive impact on the atmosphere in a city, helping transform a boring, provincial place into a cosmopolitan hotspot. And this has economic implications, because it is much easier to attract economically relevant people to places which have a culturally attractive international atmosphere, like Amsterdam and London. Georgia may now be squandering the advantage it had over much richer places like Almaty, Baku, and Tashkent. GOOD RULES DON’T TRAVEL WELL It is a widespread misconception that the changes in immigration policy were forced upon Georgia by the Association Agreement (AA) with the European Union. The AA text, however, includes only very general statements concerning immigration policy. None of its provisions would force

Georgia to (immediately) copy – lock, stock and barrel – European immigration laws. References to “standard international practice” that are being made by government officials defending the new immigration laws are also completely misplaced. Yes, most EU countries do regulate migration, yet, Georgia is far from being a typical EU member state and faces completely different challenges. While Europe is trying to prevent low-skill immigrants from other continents to “invade” the European habitat and destroy its “way of life”, Georgia’s labor market is in dire need of every European engineer, lawyer, expert farmer and teacher it can attract. Unfortunately for Georgia, there are only 250-300 Germans living permanently in Georgia (based on the German embassy’s database), as compared to 15,079 Georgians officially registered in Germany. Florian Biermann, writing this article, is one of these German citizens, teaching modern economics at Tbilisi’s International School of Economics along with professors from Italy and Israel, US and Canada, UK and France, Ukraine and Armenia. The purpose of Georgia’s immigration policy should be to make it easier for experts to enter and reside in Georgia, not to create artificial bureaucratic barriers on their way here. While it is much more difficult for a Georgian to get residency in Germany due to its restrictive immigration policies, the economic opportunities available in Germany still attract many people from outside. Georgia, on the other hand, is not (yet) a primary target of international migration, and is therefore not (yet) in a position to be restrictive about its immigration. The fact that many more Georgians legally reside in Germany than the other way around clearly demonstrates this point. If the Deputy Minister of Internal Affairs Levan Izoria states that the new law “significantly changes the extremely liberal migration policy conducted by the former leadership of the country”, he is absolutely right. Yet the “extremely liberal migration policy” was one of the extremely few advantages Georgia had when competing for businesses, investments, and human capital. From an economics perspective, an “extremely liberal” migration policy was the absolute right choice for Georgia! It produced a lot of economic benefits and carried no costs (except for the cost of small wine bottles presented to foreigners in Tbilisi airport in 2012). As there are no social welfare payments for foreigners (a huge issue in “socialist” Europe), Georgia could afford to have open borders and liberal labor markets. It reaped all the benefits from this policy without having to deal with the disadvantages. In addition to consuming local products and services, the bohemian or the freelance journalist and blogger who chose to settle in Georgia created a lot of (absolutely free) publicity for Georgia and its wonderfully hospitable culture. Not having formal Georgian employment, many of these people are now being denied residency, which is equivalent to shooting the Georgian economy in the foot. We wonder if anybody in the Georgian government is aware of what this new policy is doing to Georgia’s image, its economy, education, and tourism. It would be reassuring to know that someone is taking note and discussing a possible way out. For now, it looks like Georgia is going back, not forward. It seems logical that, if the two Armenian students who were denied residency permits are a threat to “state security” or “public safety”, they should not have been allowed into Georgia in the first place. But they did enter the country and can even stay here for three months, ample time to wreak havoc on Georgia. Denying residency out of security concerns – without denying entry to the country – is pointless.

The weekly is distributed to top companies, banks, embassies, state sector, Tbilisi and Batumi hotels, Tbilisi, Batumi and Kutaisi Airports, as well as in the town of Marneuli. The newspaper will also penetrate Azerbaijan in the near future

PUBLICITY September 29, 2014 #69

caucasian business week

BUSINESS caucasian business week

CONTROL TIGHTENS OVER ALCOHOLIC BEVERAGES

From January 1, 2015 control will be tightened in restaurants over wine. What does the tightening of controls mean and how will the National Food Agency conduct monitoring - Head of the National Food Agency Zurab Chekurashvili answers “CBW” questions. - On what principle do you choose products you have to check? - The point is that by order of the Minister, we strengthen the quality control plan each year and it concerns all kinds of food. This year we have a control plan, according to which, we take samples to test. - If you plan to tighten control and in what direction? It was reported that inspection of falsified wine would begin in the restaurants. - From next year, we’ll also tighten control over chacha. This year more than a hundred samples will be taken across the country throughout the year, and thenwill be transferred to the laboratory. A fine amounts to GEL 500 at this stage, but it will not be increased, because a fine is not the goal. This amount is too serious for some people,

for others is symbolic, it depends on the venture. Every entrepreneur should try to avoid fines. - What products except alcoholic beverages will be checked? - We check all kinds of products - of both animal and plant origin, including alcohol and drinking water. - Apart from restaurants, if there are other objects where alcoholic beverages are planned to be checked? - We are talking about unbottled wines, therefore, their quality is controlled not only in restaurants, but in the stores where unbottled wine is sold. Most frequently falsified wine is sold just here. - If a fine was imposed on any restaurant or store? - No, we are in the process and if there is such a thing, we will announce this information, at this time no one was fined.

ISSUE OF SUBSIDIES FOR CITRUS-GROWERS REMAINS UNRESOLVED

ccording to Agriculture Minister Otar Danelia, the issue of subsidizing the citrus industry has not yet been resolved, but it is under active consideration by the gov-

ernment. According to him, it is possible that citrus will besubsidized by the state like last year, but the decision will be made more quickly as well as with regard to viticulture and the cultivation of apples. “A special office for harvesting will be created, and if the decision to subsidize is accepted, it will be carried out as well as in the wine and apples growing - that is, funds will be allocated for the business for the purchase of products. In the near future we are going to go to West Georgia, where

the demand for citrus, the forecast for the harvest and affordable prices will be studied. Only after that a specific decision will be made. It is not ruled out that subsidies will not be needed, but in any case, the government will do everything possible to provide for successful citrus harvest season, “- the Minister notes. In his words, the government intends to pay greater attention to issues of transport and logistics, whichcreated big problem in 2013, when due to weather, businessmen could not take purchased by them products on the ferry for a long time to export them to Russia and Ukraine. “In general, transportation and logistics are very important issues, and if there are any deficienciessomewhere, which the government can fix and thereby help the business, then we will do it. Currently, the Ministry is actively preparing for the season of citrus collection, and apparently the risks will be minimal, “- the Minister notes. The Government of Georgia subsidized grapes this year - GEL 20 million were allocated for this purpose. Moreover, a program of subsidizing purchases of “non-standard apples” is currently carried out which can only be used in the processing industry, but do not have the demand as consumer product .

September 29, 2014 #69

WHITE GROUP RETURNS SEIZED PROPERTY AND REMAKES PROJECT ON HEROES’ SQUARE

fter a one-year pause, the construction of the residential building in the center of Tbilisi will beresumed in a few days. Works are carried out by theconstruction company “White Group” which invested over USD 4 million in the project. According to the company’s chief executive officer George Gonjilashvili, the company started construction in 2008, but in 2011 they were deprived of property and t managed to return it

only in 2013 after the new government came to power. Gonjilashvili suggests that construction of the residential complex will be completed in February next year. He notes the sale of apartments has already begun. A price per m2 is 2 thousand Euro. “White Group” plans to construct hotels in the near future. George Gonjilashvili refrains from details at this stage, however, adds that hotels are planned to be built not only in Tbilisi but in other cities.

BARAMBO ENTERS IRAQI MARKET

arambo” company started exporting of itsproducts to Iraq. As a result of an active cooperation,a variety of sweets produced by the company will be fully represented on the Iraqi market. “Barambo” is Georgian chocolate / sweets company. The use of modern technology and the highest quality of Belgian raw materials, the continuous control over the quality production enabled the company to achieve the standards of the leading countries in the world. In 2014, “Barambo” attracted great interest at the international exhibition “GULFOOD” in Dubai. Apart from Iraq, the company actively communicates and negotiates with the representatives of

different countries, who are also interested in the products. “Barambo” continues to actively operate on the Georgian market and until the end of the year will offer a lot of new products to its customers. The company is constantly focused on the expansion of the range and development.

“MACRO CONSTRUCTION” ENTERS DEVELOPMENT MARKET WITH “GREEN BUDAPEST” PROJECT

acro Construction” company enters the Georgian development market with the “Green Budapest” project with a total value of USD 45 million. A modern design created for comfort of residents is not the only thing “Macro Construction” focuses on. The main priority is associated with green color andplanting. The international holding has the ambition to break the stereotype that to live and rest on the nature is possible only outside the city. The company claims that this is a unique project, because planting of greenery and healthy sporty style is actually their priority.

In total “Green Budapest” residential complex will be consisted of 351 apartments in 4 multistory blocks. However, the infrastructure of the territory is diverse: a basketball court, the ski hills for extreme fans, 3 children’s entertainment areas, underground parking and especially interesting d-block where a fitness center and child care center will be located. This is probably the only company in Georgia which offers customers free services during one year. “Macro Construction” is involved in several projects in Georgia. Among them is a furniture manufacturing enterprise in the region of Adjara, however, “Green Budapest” is the most ambitious project.

BUSINESSWOMAN LAURA GACHAVA GEORGIA’S PM: “WE SUPPORT THE TRANS-CASPIAN GAS PIPELINE PLANS TO OPEN A VOCATIONAL TO EXPORT RESOURCES OF SCHOOL to the Ministry of Education in order to open a KAZAKHSTAN AND TURKMENISTAN” vocational school at her own factory.

garment factory owner, businesswoman LauraGachava plans to open a vocational school. As Gachava states “Commersant”, she has recently filed an application

She notes that the tuition will be free in the educational institution and all persons who willsuccessfully complete the course will be employed atthe factory. According to her, the international competition of sewers and tailors will be held in the near future and only professional school students, girls under 23 years old will be able to participate in it. She hopes that the Ministry will issue a license for opening the educational institution and its graduateswill take part in the competition as well.

am proud of the beginning of the second phase of Shah Deniz field. Prime Minister Irakli Garibashvili said at the groundbreaking ceremony for the Southern Gas Corridor. According to him, Azerbaijan is one of Georgia’s close friends and partners in. “We have implemented such projects as the Baku-Tbilisi-Ceyhan oil pipeline and the BakuTbilisi-Erzurum gas pipeline. TANAP project will change the energy map of Europe. New opportunities will open for the countries of the

Black Sea and Caspian Sea, poverty will be reduced. We support the Trans-Caspian gas pipeline project to export resources of Kazakhstan and Turkmenistan.“ The Prime Minister noted that these projects would provide sustainable development. “The Baku-Tbilisi-Kars railway will play an important role in regional development. Thus, we integrate into global markets. Free trade with neighboring countries would make a great contribution. We will do our utmost to ensure that Georgia has become a reliable partner in the regional and global level”.

BUSINESS September 29, 2014 #69

caucasian business week

BEER MAY SOON BE SAVING LIMBS – BEER WASTE FOUND AS IDEAL TO HELP REGROW BONES

he byproducts of brewing beer cost the industry an arm and a leg every year, but thanks to recently-published research, beer may soon be saving limbs. A team of scientists say that beer waste is the ideal substance to help regrow bones, The Mary Sue reports. For the findings, researchers from the Centre for Biomedical Technology of Universidad Politécnica de Madrid and the Institute of Catalysis and Petrochemistry of Consejo Superior de Investigaciones Científicas studied bagasse, organic beer waste made of spent grain that can be used in biofuel or as animal feed. Bagasse also has the same main chemical components as bone: phosphorus, calcium, magnesium and silica.

In a study published earlier this year in RSC Advances, the team explains: Raw biocompatible materials can be prepared from beer production waste.Their characteristics can be tailored for use as replacement candidates in osteoporotic treatments, coatings for prostheses, bone grafts and dental implants, for example, with greater cost effectiveness than conventional scaffolds and eliminating the use of non-renewable raw materials or toxic substances in their preparation. The researchers tested bagasse’s suitability as a scaffold for regeneration by applying a porous compound of the waste to cultured bone cells. Hopefully further research will reveal more specifics about the discovery’s practical application, but in the meantime, drink up, everyone!

ROOMS HOTEL TBILISI LAUNCHES OPERATION

he Vera Area with old encouraging and new beautiful environment enables to feel the capital city from its very heart. One part of visitors is admired by Old Tbilisi sights and others get acquainted themselves with crazy rhythms of the modernity. The Vera Area is located on hills in the center of Tbilisi, upward from the Rustaveli Avenue. The Vera Area with small and windy streets and houses at the bottom of the mountain reminds of special feelings. From the old times, this part of Tbilisi has become an inspiration source of artists and composers. Many famous Georgian historians, writers, theater actors and poets have resided the Vera locality. The first Georgian musical shot in 1973 was called as Vera Area Melodies. Previously, Chovelidze Street was called as Aguri (Brick) Street. This street was built in the 19th century and was renamed in honor of Tamar Cho-

velidze, who died on April 9, 1989 after Soviet troops forcibly dispersed the peaceful independence rally. In the Soviet times the building was made into a publishing house and it used to work as an industrial asset. Architects have spent much time and energy on the project renewal. Streaked oak material, streaked brick, iron and cast iron have been used in the building. The concept of the building reflects historical facts. The initial wooden windows have been restored. This historical part of Tbilisi faces huge problem with parking places for automobiles. To solve the problem, the architects have resorted to unobvious method. They have dug under the ground and constructed a parking zone for 200 automobiles. Architects: Goga Chkhetia, Givi Machavariani, Aleksandre Maghlakelidze, Gogi Sakhelashvili, Giorgi Mikaberidze, Giorgi Butulashvili, Ia Chekheria, Katia Samsonadze. The concept developed by Temur Ugulava.

EBRD SELLS ITS HOLDING IN BANK OF GEORGIA

ick Tesseyman, EBRD Managing Director, Financial Institutions, said: “The EBRD’s role in supporting Bank of Georgia in the aftermath of the 2008 crisis is now complete. The premium listing on the LSE was a landmark moment for the bank and the EBRD is confident that it is now well-placed to continue its dynamic development in the future. The EBRD will continue to provide debt financing to Bank of Georgia going forward as part of our continued support to the Georgian financial sector.” Irakli Gilauri, Bank of Georgia’s CEO, said: “We

appreciate the support the bank has received from the EBRD over the past 19 years as the bank has transformed itself into a dynamic financial institution spanning a range of product areas. We are especially gratified that existing investors have increased their stakes and that we are also attracting new institutional shareholders. This transaction illustrates the depth of support for the bank from international investors and signals increasing investor interest in Georgia’s capital market. We are looking forward to continuing our strong relationship with the EBRD on a number of other longer term funding projects.”

GEORGIAN RAILWAY BEGINS TRANSIT OF METHANOL

ccording to the press service of the “Georgian Railway” LLC, methanol was added to the transit goods transported by Georgian rail. After a successful completion of negotiations, an agreement was reached that the Georgian railway will annually transport 600 000 tons of methanol. The first batch of 5 000 tons has already been transported. “Methanol has not been transported by rail in the South Caucasus in recent decades, Georgia will

receive additional USD 20 million annually as transit fees,” - said in the Georgian Railway. According to the leadership of the Georgian railway, for 6 months in 2014 the revenues of the Georgian railway exceeded the historical maximum and amounted to GEL 232. 4 million that is 8.4% more than in the same period of 2013. Revenues from freight traffic increased by 5.7% and amounted to GEL 175.1 million, which is associated with an increase in transportation of dry cargo.

STATISTICS caucasian business week

September 29, 2014 #69

SAKDRISI TRUTH September 29, 2014 #69

caucasian business week

UNESCO HAS GIVEN NO SPECIFIC ADVICE ON SAKDRISI AND WILL NOT BE MONITORING IT

here have been various opinions regarding the Sakdrisi issue in scientific circles. Two authoritative groups were holding completely different stances; one considered Sakdrisi to be the first gold mine in the world, while the other did not deem it as a mine at all, albeit admitting signs of human presence. In order to reach a conclusive verdict lacking bias, the Agency for Cultural Heritage invited international experts. These experts facilitated certain recommendations for solving the Sakdrisi issue. At this stage, the company “RMG” is also participating in planning specific activities in how the Sakdrisi site research should carry on.

However, it was recently made known that members of the “Sakdrisi Preservation National Committee” received a reply letter to their correspondence to UNESCO. As members of the group are stating, the received letter claims that UNESCO has acknowledged Sakdrisi as a world cultural heritage monument. According to the National Agency for Cultural Heritage Preservation, the interpretation of the letter issued by the committee is not truthful. Tea Oniani, head of the legal office for the National Agency for Cultural Heritage Preservation confirms this, saying that “this interpretation does not correspond to the truth. Word-to-word, the

contents of this letter are as follows: ‘We have taken due note of the information you provided regarding the cultural heritage of the area, and have shared your letter with the relevant Georgian authorities for their information and followup, as appropriate and in accordance with the 1972 Recommendation concerning the Protection, at National Level, of the Cultural and Natural Heritage. I take this opportunity to thank you for your interest in safeguarding of cultural heritage worldwide.’ This is practically a filled-in template which is often sent out by administrative organs for catalysing further action. UNESCO has given no specific advice and hasn’t given

evaluation regarding the Sakdrisi site using this letter. UNESCO won’t conduct monitoring on this site since Sakdrisi is not a world heritage monument. As you may know, we have only three monuments in Georgia today registered in the world heritage list: Chazha in Svaneti (part of Ushguli), Bagrati-Gelati in Kutaisi, and the city of Mtskheta. Since Sakdrisi is not a world heritage monument and doesn’t even carry the cultural heritage title, its recognition goes only as far as being an archeological site. Accordingly, UNESCO won’t be able to engage in this process, not even by their own instructions and proprietary action plans,” – states Oniani.

BANKS&INVESTMENTS caucasian business week

September 29, 2014 #69

BANKING & INVESTMENT September 29, 2014 #69

caucasian business week

CURRENT CONDITION OF COMMERCIAL INVESTORS’ INTEREST IN GEORGIAN BANKS’ LOAN PORTFOLIO WINTER RESORTS INCREASED

he volume of lending by commercial banks (including loans to nonresidents) in August 2014 increased by 41.4 million GEL (0.4 percent) compared to the previous month, constituting 11.1 billion GEL by September 1, 2014. The volume of loans provided in the national currency increased by 0.9 million GEL (0.02 percent) and the volume of loans in foreign currencies increased by 40.4 million GEL (0.6 percent). By the end of August 2014, commercial banks issued 1.3 billion GEL worth of national currencydenominated loans (3.7 percent, or 48.6 million GEL, less than in the previous month) to resident legal entities and 4.2 billion GEL worth of loans in foreign currencies (0.7 percent, or 29.9 million GEL, more than the previous month). Of the total volume of lending to legal entities,

the biggest share falls on trade-30.1 percent. Compared with the previous month, in August 2014 the volume of loans provided for trade decreased by 3.6 percent, or 61.1 million GEL, and constituted 1.6 billion GEL. The share of loans provided to the industrial sector constituted 22.7 percent of all loans to legal entities, amounting to 1.2 billion GEL by September 1, 2014 (0.02 percent, or 0.2 million GEL, less than in August 1, 2014); 7.3 percent falls on construction, amounting to 399.3 million GEL (a decrease of 2.3 percent, or 9.3 million GEL). Therefore, 60.1 percent of the total volume of lending to legal entities falls on only three sectors - industry, construction and trade. The volume of lending to resident individuals increased by 0.7 percent, or 36.9 million GEL, during August 2014 and constituted 5.4 billion GEL by September 1, 2014.

CURRENT TENDENCIES OF BANK DEPOSITS

he total volume of non-bank deposits in the country’s banking sector increased by 1.5 percent, or 150.7 million GEL, compared with August 1 2014, and reached 10.4 billion GEL by September 1, 2014. In August 2014, the volume of demand deposits increased by 53.3 million GEL (1.2 percent) and term deposits increased by 97.5 million GEL (1.7 percent) compared to the previous month. The dollarization ratio of total non-bank deposits constituted 59.81 percent by September 1, 2014;

decreasing by 1.34 percentage points compared to August 1, 2014. The annual average weighted interest rate on term deposits constituted 5.8 percent. In particular, the interest rate for national currency denominated deposits was 7.7 percent and the interest rate for foreign currency denominated deposits 4.6 percent. The share of the US dollar in the total volume of foreign currency denominated deposits equals 81.4 percent and the share of the euro equals 16.0 percent.

NBG KEEPS ITS POLICY RATE UNCHANGED AT 4%

he Monetary Policy Committee (MPC) of the National Bank of Georgia (NBG) met on September 24, 2014 and decided to keep the refinancing rate unchanged at 4 per-

cent. Given the analysis of current economic situation and geopolitical factors, the MPC deems necessary to keep accommodative monetary policy. The committee’s assessment is that the exit out of accommodative monetary policy will take place step by step and the speed of this process will depend on the expected inflation and economic activity. According to current forecasts the inflation will reach its target value in the first half of 2015. Unless new shocks affecting the economy will take place, the main policy rate will approach its neutral level and reach 6 percent by the end of 2015.

The real GDP grew by 5.2% in the second quarter and the economic growth in the first half of the year reached 6.0 percent with the domestic demand contributing the most. The economic growth in the first half of the year was more or less consistent with the forecast however the growth in the trade partner countries has been hindered. Given the external risks the economic growth is fragile and there is no pressure on prices from the demand side so far. The NBG will continue to monitor the developments in the economy and financial markets both domestically and abroad and will use all means and instruments at its disposal to ensure price stability, which is the necessary condition for the long-term high and stable economic growth, low interest rates and high employment. The next meeting of the Monetary Policy Committee will be held on November 19, 2014.

BILLIONAIRE MASHKEVICH STILL INTERESTED IN INVESTING IN GEORGIA

he billionaire Alexander Mashkevich is still interested in investing in Georgia, but plans to do it not through the Co-investment Fund. The Fund’s Executive Director George Bachiashvili says that Alexander Mashkevich is still going to invest in the pharmaceutical market in Georgia. Bachiashvili does not divulge details due to the fact that the project will not be carried out by the Co-investment Fund. According to the Minister of Health David Sergeenko, at this stage the Ministry is working on the modern system of the quality control of medicines. “This will allow us to open a pharmacologic market and increase competition, I have repeatedly stated it, “- said Sergeenko. Several weeks ago, “Commersant” reported that Mashkevich refrained from investing in the pharmaceutical market of Georgia. Health Minister David Sergeenko said in an interview with“Commersant “ that the talks didn’t enter the final phase. Georgia’s Prime Minister Bidzina Ivanishvili made the first statement about Alexander Mashkevich’s plans to invest in Georgia at a meeting with the media last March. According to a former Prime Minister Bidzina

Ivanishvili, Alexander Mashkevich has already visited Georgia. David Sergeenko also talked about the businessman’s plans in the field of health care. According to the Minister of Health, new investments are needed in the country in terms of drug quality control system and a primary care which will be implemented by the businessman Alexander Mashkevich. “It relates to the creation of a drug quality control system as the additional resources are needed for this area. Additionally, investment will be made in proper planning of primary health care,” - says Sergeenko . However, the Minister has no information about the businessman’s visit to Georgia . At the same time, in a conversation with “Commersant” in December of last year, Sergeenko noted that 5 companies were interested in entering the Georgian market, while he was personally involved in the negotiations with Mashkevich. It should be noted that information about Mashkevich’s business activity in Georgia is not available.However, the Georgian “Forbes” reports that in 2004 the company owned by Mashkevich attempted to purchase via tender a privatization package including “Ferro”, “Chiaturmanganum” and Vartsikhe HPP cascade, but to no avail.

he interest of investors in winter resorts of Georgia has increased. Newly built “Orbi Palace” hotel starts operation this season while in the next season “Redko” company will open its hotel in Bakuriani. According to the Government’s project, the artificial snow machines will be installed in Gudauri and Bakuriani that will increase the number of tourists and the duration of the holiday season. Companies respond to increased demands respectively. “Orbi Palace” hotel, recently built in Bakuriani, consists of 90 rooms. Hotel prices have not yet been established. Customers can purchase space in “Orbi Palace”. The minimum area is 25 square meters and selling prices range within USD 800 - 1 500. The hotel will offer various types of services to consumers such as a fitness club, swimming pool, guide service, ski equipment, children’s entertainment center, etc. The company says that their hotel has no rivals in terms of service quality and location. The hotel will operate not only in winter but in the summer season.

The construction company “Redko” has already begun construction of a 4-storey aparthotel. Hotel-style apartments is being built not far from Didveli near the gondola cableway. As for the projects planned in Gudauri, only “Redko” is presented in this winter resort. However, “Orbi” also plans to build a hotel. The company explains that the project will be developed in one month and further details will be announced. “Redko” will complete the construction of another apart-hotel in December while the company’s third project will be finished in 2015. Nearly in a year and a half, the company also plans to build a hotel.

IN WORLD BANK UPDATED RATING, GEORGIA STILL AMONG LOW AND LOWER-MIDDLE INCOME COUNTRIES

orld Bank classifies the world’s economies based on estimates of gross national income (GNI) per capita (GNI per capital-Atlas Method). According to this indicator, countries are divided into four groups: low-income countries with unites countries whose GNI per capita (Atlas method) is equal to or below USD 1,035: Bangladesh, Cambodia, Uganda, Haiti, etc.); lower-middle-income countries whose GNI per capita is equal to –USD 1,036 - $ 4,085 (Armenia, India, Moldova, Morocco, etc); Upper-middle-income countries – USD 4,086 -12,615 (Azerbaijan,

Brazil, Thailand, Bulgaria, etc.) and high income countries whose GNI per capita is equal to and more USD 12.616 (Russia , Australia, Singapore, Italy and so on). Thus, the lower and lower-middle income countries are called developing countries. As for Georgia, in the updating rating 2013, it belongs to the lower-middle income countries along with Armenia GNI per capita whose GNI per capita is equal to USD 3,570. According to the NGO “Society and banks”, in order Georgia to move from a group of the lower-middle income countries to the higher-income countries in a short time, a dynamic growth in real GDP is required.

REPORT ON GEORGIAN BANK SECTOR’S ASSETS

s of September 1, 2014, Georgia’s bank sector is represented by 21 commercial banks, including 17 foreign-controlled banks and two branches of non-resident banks. Compared with the previous month, total assets of Georgian commercial banks increased (in current prices) by 0.2 billion GEL (or by 0.9 percent) and constituted 18.6 billion GEL. The bank sector’s own funds (equity capital) equal 3.3 billion GEL, which makes up 17.7 percent of the commercial banks’ total assets.

The ratio of foreign capital in banks’ total paid-in capital constituted 78.5 percent. In August 2014, the banking sector finished with net profits of 43.8 million GEL. A total of 5 commercial banks with the largest assets constituted 75.5 percent of the total assets of Georgia’s bank sector. One third of the sector’s total assets are registered for Bank of Georgia. Bank of Georgia assets have grown by 2.2% YTD. TBC Bank’s upturn marked 8.7% and Liberty Bank’s growth constituted 14.5%. Five Leading Commercial Banks due to Assets:

The ratio of Georgia’s five leading commercial banks in the sector’s total assets makes up 75.5% as of September 1, 2014 (77.8% as of September 1, 2013).

AZERBAIJAN caucasian business week

September 29, 2014 #69

BELARUS READY TO SHARE HIGH-TECH EXPERIENCE WITH AZERBAIJAN

B AZERBAIJAN, CHINA TO COOPERATE IN EMERGENCY MANAGEMENT

he Azerbaijani Emergency Situations Ministry and the Chinese Ministry of Civil Affairs signed a memorandum of understanding on cooperation in the field of emergency management, The memorandum was signed following a meeting between Azerbaijani Minister of Emergency Situations Kamaladdin Heydarov and Chinese

Minister of Civil Affairs Li Liguo, the Azerbaijani ministry reported. The ministerial delegation headed by Heydarov visited the National Disaster Risk Reduction Center and the Civil Defense Society in Beijing on September 23 - 24. The delegation also visited a number of enterprises for the production of equipment used in emergency situations.

ADVANTAGEOUS CAMPAIGN FROM AZERBAIJAN AIRLINES

ZAL, Azerbaijan’s biggest airline and national flag carrier, has offered a special promotion “Autumn Offers” on international flights. Those who want to take advantage of the autumn campaign should be informed that the sales period within the autumn campaign is October 1 - 15, 2014 and travel period is from November 1 - December 10, 2014. The seats are limited, rebooking and refunds are not permitted and miles points for this journey are not remunerated. A maximum stay is one month, AZAL reports. The ticket prices within the campaign are the following: Baku-London-Baku “round-trip” for only 449 EUR; London-Baku-London “roundtrip” for only 399 GBP; Tabriz, Tehran “roundtrip” for only 209 EUR; Rome “round-trip” for

only 449 EUR; Milan “round-trip” for only 449 EUR; Paris “round-trip” for only 449 EUR; Praga “round-trip” for only 449 EUR; Beijing “roundtrip” for only 449 EUR; Tel-Aviv “round-trip” for only 379 EUR; Tbilisi-New-York-Tbilisi (via Baku) “round-trip” for only 609 EUR (731 USD). For more information please contact: +(99412) 598-88-80 *8880 e-mail: callcenter@swtravel.az As a regional and CIS leader in terms of the number of new aircrafts, AZAL offers its passenger flights to European countries, the CIS, Middle East, Asia and the United States. Currently, AZAL’s fleet consists of Boeing 757-200, Boeing 767-300, Airbus 319, Airbus A320, Airbus A340-500, Embraer ERJ 170-100LR and Embraer ERJ 190-100. The company cooperates with about 60 airlines to provide its passengers with an opportunity to travel freely around the world.

ARGENTINA, AZERBAIJAN EXPRESS READINESS TO CO-OP IN NUCLEAR RESEARCH

zerbaijan’s National Center for Nuclear Research and the Argentine company INVAP S.E. have called for further cooperation in the construction of nuclear reactors, Communications and High Technologies Ministry reported. The Ministry said the issue of cooperation was discussed at a meeting between the Communications and High Technologies Minister Ali Abbasov and INVAP S.E. Business Development Manager Ruben Mazzi. The INVAP S.E. is engaged in the designing and construction of research reactors, installations and production of radioisotopes, nuclear fuel production, uranium enrichment, creation of tools for radiation protection, reactor protection systems, modernization and reconstruction of research reactors, as well as the provision of

the specialized consulting services in the field of nuclear technology. Nobel Oil and Mineks International are partners of INVAP S.E. in Azerbaijan. Argentina is also interested in expansion of nuclear cooperation. It also intends to take part in the projects being implemented in Azerbaijan in the field of satellite communication. The two countries signed an agreement on cooperation in the use of outer space for peaceful purposes in early 2014. The opportunities that Argentina can offer to Azerbaijan in the space sphere and Azerbaijan’s interest therein will be discussed by two sides. The signed document will be a basis for future cooperation between the two countries in this field. Earlier, French company Areva that is involved in the development and production of equipment for nuclear power industry, had proposed the construction of nuclear research reactor in Azerbaijan. National Nuclear Research Center established by the Ministry will use nuclear technologies for peaceful purposes in its future activities. Azerbaijan has already begun cooperation with the International Atomic Energy Agency (IAEA) and European Centre for Nuclear Research (CERN) in this field.

elarus has expressed readiness to share its experience in high technologies field with Azerbaijan. This was said by Belarusian Ambassador Extraordinary and Plenipotentiary Nikolay Paskevich at a meeting with Azerbaijan’s Communications and High Technologies Minister Ali Abbasov. Paskevich said high technologies parks operating in Belarus are interested in cooperating with the high technologies park of Azerbaijan. He added that Belarusian companies also intend to participate in the development of space industry in Azerbaijan. Referring to the strategic and friendly relations established between the two countries in all areas, Paskevich praised the existing cooperation in the field of communications and high technologies. Paskevich stressed that Azerbaijan’s economic opportunities allow the country to further develop its high technologies field. Besides, he noted that Belarusian companies will demonstrate their products and services in the exhibition and conference of BakuTel-2014 to be held in Baku on December 2-5. Abbasov also noted the special significance of

communications and high technologies in the development of bilateral cooperation. Currently, ten high-tech parks are operating in Belarus. The first Azerbaijan’s IT-Technological Park is under construction on a 50-hectare land area in Pirallahi district of Baku. The new facility will be an area with the necessary infrastructure, logistics and governing entities for conducting research in ICT, telecommunications and space use, energy efficiency, and the development of new and high technologies. Residents and companies operating in the park will be exempt from the 18 percent VAT on imported infrastructural and technological goods and services. The park participants will also be exempt from tax and customs duty for seven years. The park’s activity is expected to expand the ICT sector of the country based on current scientific and technological achievements, and to ensure the creation of modern complexes for research and development of new information technologies. The park will play an important role in the sustainable development of economy and competitiveness.

FLIGHTS EN ROUTE ABU DHABI -BAKU LAUNCHED

tihad Airways, the national airline of the United Arab Emirates, has announced the launch of a four times per week service linking Abu Dhabi to Baku. The flights, which commence from October 1, 2015, will be operated using an Airbus A320 aircraft with 16 Business Class and 120 Economy Class seats, offering a total of 1,088 seats per week, the company reported. Etihad Airways’ President and Chief Executive Officer James Hogan said the launch of Etihad Airways’ flights to Baku’s Heydar Aliyev International Airport is consistent with the company strategy of targeting areas of strong growth in the fast-growing Caucasus region. “The new flights will cater for the significant demand for business and leisure travel between Azerbaijan and the UAE, while also providing better access to Azerbaijan for hundreds of thou-

sands of Azerbaijani diaspora, particularly those residing in North America. “Business and leisure travelers out of Azerbaijan will have great opportunities to connect over our Abu Dhabi hub to destinations across the Gulf region, Indian Subcontinent, Asia and North America. Also, the new Abu Dhabi-Baku service will contribute to the development of trade and tourism in Azerbaijan and the UAE, enhancing the already strong ties between both countries,” he said. In 2012, trade turnover between the UAE and Azerbaijan totaled US$400 million, and there are currently more than 12,000 Azerbaijanis living in the UAE. Etihad Airways began operations in 2003, and in 2013 carried 11.5 million passengers. From its Abu Dhabi base Etihad Airways flies to 110 existing or announced passenger and cargo destinations in the Middle East, Africa, Europe, Asia, Australia and the Americas.

COTTON PRODUCTION SUFFERING SETBACKS IN AZERBAIJAN

otton production industry, once a very productive sphere in Azerbaijan is now suffering from some setbacks. Over the past 18 years, cotton production decreased by six times in the country. Moreover, the amount of acreages fell by nine times. Azerbaijan produced 2.7 million tons of cotton in 1995, while in 2013 the comparable figure stood at 452,000 tons already. A significant decrease is also observed in the cotton acreage - the cultivated area was 2.1 million hectares in 1995, while in 2013 it increased to 235,000 hectares. Azerbaijani experts in agriculture say this decrease is resulted from the falling of the cotton’s prices in the world markets and the low profitability of cotton breeding. Meanwhile, there is no room for competitiveness in this sphere. Cotton breeding is also inflicting loses on the farmers. The fall of the industry has also led to the increase of the unemployment especially in the regions. Moreover, high usage of artificial material worldwide has negatively affected the cotton growing sector. Expert Nizami Garayev said to a local press that to find a way out, Azerbaijan has started to import more productive varieties. As a result, the decline in production is lower than the reduction in acreage. So, the yield increased with the usage of more productive technologies and varieties. Moreover, to reduce the cost of production, both companies engaged in cotton production in the country began to use a machine harvesting technology. Yield losses in cotton production can have serious consequences for agriculture of Azerbaijan,

Garayev believes. Recently, the practice of sharing of crop was carried out in Azerbaijan, where cotton was replaced by wheat. Today, the cottonwheat system is replaced by the wheat-wheat one, which ultimately reduces the yield of wheat. Cotton is produced in Azerbaijan only for import. Despite of the decrease in production in Azerbaijan, Russia increased its import of cotton from Azerbaijan by almost 20 percent in 2013. Moreover, the companies specialized in the cotton production buys cotton with seed that is very valuable. In the livestock sector, the cottonseeds are very much appreciated. Along with this sector, it is also used to produce oil. Thus, the situation is very favorable for the companies buying cotton, but not for the farmers, who produce it, creating unfair price situation. Garayev proposes to press ahead with the measures to reduce the cost of cotton production in the country. “It is necessary to use new technologies, minerals and varieties to lower the cost of cotton production in the country. In this case, the Azerbaijani cotton will be competitive in the world markets. Under current conditions, it cannot withstand the price competition, and farmers reclassify into other areas of agriculture, including vegetables cultivation, which is more cost-effective,” he added. In addition, the world production of cotton in the 2014-2015 will decline by 0.5 percent in comparison with the 2013-2014, and will be 25.6 millions of tons. Average price of cotton in the 2014-2015 is expected to reach 61.80 cents/lb, which is 26.6 percent lower than in the 2013-2014.

CIS September 29, 2014 #69

caucasian business week

EU AND UKRAINE RATIFY TRADE AGREEMENT IN HISTORIC VOTE

he parliaments of the EU and Ukraine on Tuesday ratified landmark association and free trade agreements following the decision by legislators in Kiev to grant “special status” for eastern regions of the country torn apart by months of fighting. The historic votes, announced with great fanfare via a joint video link between Strasbourg and Kiev, came nearly a year after massive protests erupted in Kiev that led to the fall of a Russianbacked Ukrainian president who refused to sign the EU integration agreements. The ratification also follows a request from Kiev to postpone the bilateral implementation of free trade until December 2015 from November this year as originally agreed. Russia regards the delay of the implementation of the agreement until December next year as a victory and on Tuesday repeated its threat to impose trade penalties against Kiev as soon as the deal enters into force. The 14-month suspension has triggered alarm in the EU, with many officials expressing concerns that Russia had dictated the terms of a deal that was meant to be bilaterally agreed between Brussels and Kiev. “This delay may be seen as a Russian victory in a Cold War climate,” said Gianni Pittella, parliament’s socialist leader. Stefan Fule, the commissioner for enlargement, said the delay had been necessary because Russia was threatening Ukraine not only militarily but with “a full-scale economic and trade war”. Karel De Gucht, the EU’s trade commissioner, conceded on Friday that the compromise was not ideal. “The world is made of bad precedents,” he said. Addressing EU legislators, Petro Poroshenko, Ukraine’s pro-western president, described the vote as important as the country’s declaration of independence in 1991. Mr Poroshenko recalled the lives of thousands of Ukrainians lost during months of fighting between Russian-backed separatists in the east of the coun-

try and government forces and called for Kiev to be granted an “EU membership perspective”. “Who is ready to die for Europe?” he asked EU parliament legislators listening on the other side of the video link. Minutes after Mr Poroshenko spoke, Ukraine’s parliament adopted a declaration claiming that by ratifying the EU association and free trade agreement, the country had set course for membership in the EU. After the vote, legislators rejoiced by singing the national anthem. But with fighting in the east continuing on the 11th day of a ceasefire, and domestic economic challenges mounting, a cloud of uncertainty loomed over the emotional moment. Adding to the sense of unease was the earlier decision by Ukraine’s parliament to grant an amnesty for Russian-backed separatists not guilty of capital crimes and to offer “special status” for the rebelheld eastern regions of Donetsk and Lugansk. The move to de-escalate a five-month military stand-off that had claimed more than 3,000 lives was approved by a majority in the 450-seat legislature. But the legislation, which was submitted by Mr Poroshenko, stopped short of granting autonomy for the breakaway regions. Separatist leaders who control about a third of the Donetsk and Lugansk regions have in recent days balked at the planned legislation. They have also called for a fresh counteroffensive to push Kiev’s army further out of both provinces. The laws adopted on Tuesday grant fresh guarantees of Russian language rights for the region. They also envision greater regional government authority and an election of legislators representing the region after an October 26 nationwide election. Addressing the EU parliament on Tuesday, trade commissioner Karel De Gucht said exports from Ukraine to the EU had increased 15 per cent since the preferential trade regime took effect in May. The EU and Russia are Ukraine’s largest trading partners. The EU in May unilaterally opened access to its market for Ukrainian goods to give a boost to the country’s recession-battered economy. Monthly average exports to the EU from Ukraine between May and July totalled $1.5bn, in line with previous months, but up 15 per cent compared with the same period the previous year. Between May and July exports to Russia totalled $900m a month, also in line with previous months, and down 24 per cent compared with the previous year, according to Dragon Capital, a Kiev-based investment bank. “Ukraine is reorienting its exports away from Russia and towards the EU,” said Olena Bilan, an economist at Dragon Capital.

BRAZIL BEGINS DAIRY EXPORTS TO RUSSIA

hree so-far-unnamed Brazilian dairy companies have received the proper paperwork to start deliveries to Russia, a representative of the Brazilian Ministry of Agriculture said. The new imports will help fill a gaping hole left by EU suppliers. One of the companies has already started deliveries, Marcelo Junqueira, secretary for international affairs of the Brazilian Agriculture Ministry Marcelo said, ITAR-TASS reported. The new deliveries will help fill the 57 percent gap of imported dairy products after Russia introduced a one-year food embargo in August on certain agricultural products from the EU, US, Australia, Canada, Australia and Norway. The move is symbolic of the strengthening political and economic ties between Brazil and Russia as relations with the West continue to sour over the Ukraine crisis. “Brazil is known for its high level of sanitary control, we supply meat to more than 100 countries and poultry to 155 countries, so it is natural that a major importer [Russia] came to us,” Junqueira said, as quoted by ITAR-TASS. Last week the Brazilian delegation, comprised of 37 private companies, attended the Moscow International Exhibition of World Food. Over $106 million in contracts were inked, Junqueira said, without disclosing which companies.

In 2012, the turnover of trade between Russia and Brazil reached $5.9 billion. Brazil plans to import fish and grains from Russia. In August, the Brazilian Ministry of Agriculture began a registration process allowing companies to be authorized to export to Russia. At the same time, the Kremlin approved 89 Brazilian companies to sell dairy, meat, and other products in Russia, a number which has since grown to over 130. Before 2011, Brazil was the number-one meat supplier to Russia, but lost market share after Russia’s consumer watchdog, Roselkhoznadzor, banned the import of meat from the country. The ban was lifted on August 18. In the past, Russia has been a big importer of Brazilian butter, but Brazil hopes to sell milk and milk powder to Russia. Brazil already has a large domestic dairy market, and it may be hard to convince some farmers and distributors that it is better to send the product abroad. However, Russia’s weak currency favors the seller, and not the buyer. Since the embargo was set, Russia has held talks with several countries - China, Turkey, Serbia, Egypt, Mauritius, Ecuador, Chile, Columbia, Mexico, Sri Lanka, Paraguay, Guatemala, Morocco, Kenya, Argentina, Lebanon, the Faroe Islands, and of course Brazil - about increasing agricultural exports to Russia.

CHINA READY TO RAMP UP FRUIT & VEG EXPORTS TO RUSSIA – OFFICIAL

eijing is ready to meet fruit and vegetable demand in Russia after Moscow’s food embargo on the West, a Chinese commerce official said. Boosting agricultural trade, already worth $20 billion a year, would further cement Russia’s links with China. The eastern Chinese region of Shandong is ready to meet these demands, Izvestia newspaper reportedWednesday, citing the director of the Department of Commerce in the province, Zhang Qingwei. Situated on the east coast between Beijing and Shanghai, Shandong is China’s agricultural powerhouse – producing $141 billion in agricultural products annually. The region is home to 94 million people. Shandong is ready to supply carrots, ginger, garlic, pepper, peas, pumpkins, zucchini, squash, tomatoes, cucumbers and broccoli as well as, peaches, pears, grapefruit and watermelon to Russia – and in return is eager to import grain, rapeseed and honey from Russia. “If we reorient from the West to China, even 1 percent of total agricultural products from Shandong will more than cover the needs of Russia,”

Yakov Lyubovedsky, head of the Russian Organic Farming Union, told Izvestia. Qingwei, the Shandong official, said that a delegation from Shandong is currently in talks with representatives from Russian agriculture groups to better understand the supply and demand dynamics of Russia’s new import substitution policy, which hopes to boost domestic agriculture. Roselkhoznadzor, Russia’s consumer protection agency, has confirmed that Moscow and Beijing are discussing an agricultural trade deal, and that China is interested in doing more business with Russia. READ MORE: China to start direct sales of fruit and vegetables to Russia Earlier, RT reported that China is planning to begin the direct sales of fruit and vegetables to Russia in light of the loss of European products on the Russian market. On August 7, Russia introduced a one-year ban on imports of some agricultural products from the EU, US, Australia, Canada, Australia and Norway. The move could cost the EU and other Western countries the equivalent of $9 billion in food exports.

PUBLICITY caucasian business week

TBILISI INTERNATIONAL FESTIVAL OF THEATRE International Program

with elegant touch of reality… SEPTEMBER 20 - OCTOBER 8

27 SEPTEMBER Song of the Goat Theatre (Teatr Pieśń Kozła), Poland

SONGS OF LEAR Based on “King Lear” Directed by Grzegorz Bral

Songs of Lear seems to have already passed into legend even though it’s only a work in progress. The Guardian ABOUT PERFORMANCE Songs of Lear is a non-linear dramatic event that shows the world of subtle energies and rhythms that govern Shakespeare’s tragedy. The ensemble members have chosen crucial scenes from King Lear to weave a story out of gestures, words and music. Each song is a starting point for another ‘dramatic poem’. Here the music becomes character, relationships and events. The creative process has been divided into several phases: preparation of the concert, dramatizing the songs (an oratorio), creating movement and visual structures, integrating text, music and movement and finally molding the performance into a mature shape. Songs of Lear is a constantly evolving creative research project in which audience may witness a very intimate artistic process. Duration: 65 Minutes, without intermission Web-site: www.songsoflear.com www.tbilisiinternational.com www.facebook.com/TbilisiInternational

PERFORMANCE WAS SUPPORTED BY

September 29, 2014 #69

WORLD NEWS September 29, 2014 #69

caucasian business week

RICHARD BRANSON TELLS STAFF: TAKE AS MUCH HOLIDAY AS YOU LIKE

ir Richard Branson, the billionaire founder of Virgin Group, has told 170 staff working for its head office that they can take as much annual leave as they like, providing it will not damage the business. “Flexible working has revolutionised how, where and when we all do our jobs,” Sir Richard said on his website. “So if working nine to five no longer applies, then why should strict annual leave (vacation) policies?” Sir Richard said he was inspired by Netflix, the US based video streaming service which has a similar policy on not tracking staff holidays. The company reported that staff morale, creativity and productivity had all risen since the “non policy” was introduced. The blurring of the boundaries between work life and home life caused by advances in mobile technology meant that companies were “no longer able to accurately track employees’ total time on the job,” Sir Richard said, adding that there was no need for his staff to ask for prior approval before taking time off. when he or she feels like taking a few hours, a day, a week or a month off, the assumption being that they are only going to do it when they feel 100 per cent comfortable that they and their team are up to date on every project and that their absence will not in any way damage the business – or, for that matter, their careers,” he added. The new rules apply to around 170 staff working at the Virgin head offices in the UK and US.

The wider Virgin Group, which employs about 50,000 people around the world in transport, aviation, technology and banking, will not adopt the same policy – yet. “Assuming it goes as well as expected, we will encourage all our subsidiaries to follow suit, which will be incredibly exciting to watch,” Sir Richard added. Sir Richard could run into resistance from his partners or indeed outright opposition from owners of many of the Virgin-branded companies. In many cases, Sir Richard either has a minority stake in the business carrying the Virgin brand, or where he has no stake at all, there is a brand licence in place for the use of the name. Even the exceptions where Sir Richard does still own a majority holding – Virgin Atlantic and Virgin Trains – he has a large 49 per cent industrial shareholder as partner. Some employment experts on Twitter criticised the claim as a “publicity stunt” for Sir Richard’s forthcoming book, and questioned whether such a policy could ever be applied to the group’s pilots, airline staff and train drivers. But many other social media users admired the bold move, arguing that employees would reward such a level of trust with greater loyalty. In the digital era, executives are growing increasingly concerned that their staff not only take holidays, but also resist the temptation to check emails while they are away. This summer, Daimler, the German car manufacturer, allowed its 100,000 staff to choose to have all their incoming emails automatically deleted when they were on holiday so they do not return to a bulging inbox. Nick Bacon, professor of HR management at Cass Business School in London, said he doubted that the policy would prompt a spike in staff holidays as the culture of “competitive presenteeism” was so prevalent among top executives. “The assumptions we have about standard working hours and standard working holidays do feel very yesterday, but the challenge is applying this policy to more complex rosters, or staff who may not have the same level of commitment as those in head office,” he said. “People get to the top by showing huge commitment and working long hours, which is still the route to success in most organisations.”

FRANCE TO ADOPT PLAIN TOBACCO PACKAGING AND RESTRICT ECIGARETTES

rance said on Thursday that it planned to introduce some of the world’s toughest antismoking legislation, forcing tobacco companies to adopt neutral packaging and restricting the use of electronic cigarettes. The country that gave the world Gauloises – as well as glamorous celebrity smokers such as Serge Gainsbourg and Brigitte Bardot – said the stricter rules would see all cigarettes sold in packages “the same shape, same size, same colour, same typeset”. Marisol Touraine, health minister, said the plans were designed to combat the adoption of smoking among French youth – in part by making the packaging less attractive. She said the rules may also include bans on the use of electronic cigarettes in some public places such as schools and in the workplace. They could also ban smoking in vehicles in the presence of children aged 12 or under. Ms Touraine said smoking caused 73,000 deaths a year in France – equivalent to 200 people a day. Among other things, the plan aims to reduce the number of smokers to fewer than 20 per cent of the population within 10 years, compared with 28 per cent today. As part of an EU directive passed in February, tobacco companies selling their products in the EU already have to cover 65 per cent of the front and back of cigarette packets with text and picture health warnings. They are also prohibited from selling cigarettes in slim, “lipstick-style” packages, often designed to attract young women to smoke. The European Commission said at the time that it

expected the rules to trigger a 2 per cent fall in tobacco consumption over the next five years – equivalent to 2.4m fewer smokers in the EU. It also estimated annual healthcare savings of about €506m. Tobacco use is responsible for an estimated 700,000 avoidable deaths in the EU every year, according to the commission. It says 70 per cent of smokers start before their 18th birthday, and 94 per cent before the age of 25. But the measures contemplated by France would go much further than EU regulations, putting laws on a par with those in place in Australia, which force producers to use identical, olivegreen packaging with the same typeface, covered in health warnings and void of any brand logos. A survey in July showed smoking rates in Australia fell at their fastest pace in more than two decades following the introduction of the rules. The survey showed young people were delaying taking up smoking, with the average age that people consume their first full cigarette rising to 15.9 years, up from 14.2 years in 2010. The average number of cigarettes smoked per week also fell, from 111 in 2010 to 96 in 2013. However, this research was disputed by British American Tobacco, which also said France had carried out no consultation over a policy that breached EU laws. “This policy has failed to reduce smoking in Australia ... and there is no reason to believe it will work in France either,” BAT said. Pascal Montredon, president of the tobacconists’ confederation in France, called the government’s plans “a catastrophe”, insisting the measures would only lead to an increase in contraband while doing nothing to reduce consumption. “It is a scandal,” he said. “It is like a bucket of cold water.”

CHINA CO2 EMISSIONS OUTPACE EU AND US, 45% ABOVE GLOBAL AVERAGE

hina has passed the EU for the first time in terms of per capita emissions in 2013, according to a new scientific report. Globally, the limit for atmospheric carbon will be reached in 30 years if pollution continues at the current pace, the report warns. The world’s second largest economy and most populous country is now producing a greater share of CO2 emissions than both the EU and US, which pioneered the industrial revolution and the so-called second industrial revolution, a report by the Global Carbon Project found. Emissions in 2013 were dominated by China (28 percent), the USA (14 percent), the EU (10 percent), and India (7 percent), meaning that the top four polluters account for 58 percent of total emissions. Trends show that India could soon also out-pollute the EU. From 2012 to 2013, India’s emissions grew 5.1 percent, China was up 4.2 percent, the US expanded 2.9 percent, and the 28-nation EU managed to slash emissions 1.8 percent. Emissions in the UK decreased by 2.6 per cent in 2013 since it cut back on coal and gas use. On average, each person in China produced 7.2 tons of carbon dioxide last year, compared to 6.8 tons per head in the EU. Globally, the average carbon dioxide produced per person was 1.4 tons. The US still has the highest per capita emissions at 16.4 tons of carbon dioxide per person. As a major exporter, 16 percent of China’s emissions are created producing goods and services that are exported. In 2014 emissions are set to reach another record high, with an expected 40 billion tons of CO2, according to the report. The 2.4 percent increase from last year is 65 percent above 1990 levels, when the Kyoto Protocol was established to lower fossil fuel emissions. The scientists found that humans have unleashed about two-thirds of total possible fuel emissions since 1870 that are permissible without causing irreversible changes to the planet. The US and EU are responsible for most of these discharges.

The study was a collaboration of 88 scientists from 68 separate organizations from 12 different countries. TOP 10 GLOBAL CO2 POLLUTERS

Top 10 CO2 emitters 2013

China USA EU India Russia Japan South Korea Iran Saudi Arabia Canada

% of world total

27.6 14.5 9.6 6.7 5.0 3.4 1.7 1.7 1.4 1.4

SOURCE: DATA FROM WORLD CARBON REPORT The report was released on Sunday September 21, before the September 23 United Nations New York Climate Summit, where 120 global leaders, including US President Barack Obama will set out their climate change policy agenda. “Politicians meeting in New York need to think very carefully about their diminishing choices exposed by climate science,” the report warns. China is however, taking steps towards cleaner energy. In May, it signed a 30-year deal with Russia to provide natural gas, which should lessen its dependence on dirty coal. A huge rally against climate change was held in New York over the weekend, which organizers of the People’s Climate March dubbed as the ‘biggest ever’ as up to 310,000 people are thought to have taken part. The rally was sprinkled with celebrity activists, from former US Vice President Al Gore, UN Secretary General Ban Ki-moon, and Hollywood actor Leonardo DiCaprio.

PUBLICITY caucasian business week

September 29, 2014 #69

TBILISI GUIDE September 29, 2014 #69

Embassy United States of America Embassy 11 Balanchivadze St., Dighomi Dstr., Tbilisi Tel: 27-70-00, 53-23-34 E-mail: tbilisivisa@state.gov; askconsultbilisi@state.gov United Kingdom of Great Britain and Northern Ireland Embassy 51 Krtsanisi Str., Tbilisi, Tel: 227-47-47 E-mail: british.embassy.tbilisi@fco.gov.uk Republic of France Embassy 49, Krtsanisi Str. Tbilisi, Tel: 272 14 90 E-mail: ambafrance@access.sanet.ge Web-site: www.ambafrance-ge.org Federal Republic of Germany Embassy 20 Telavi St. Tbilisi Tel: 44 73 00, Fax: 44 73 64 Italian RepublicEmbassy 3a Chitadze St, Tbilisi, Tel: 299-64-18, 292-14-62, 292-18-54 E-mail: embassy.tbilisi@esteri.it Republic of Estonia Embassy 4 Likhauri St., Tbilisi, Tel: 236-51-40 E-mail: tbilisisaatkond@mfa.ee Republic of Lithuania Embassy 25 Tengiz Abuladze St, Tbilisi Tel: 291-29-33 E-mail: amb.ge@urm.lt Republic of Latvia Embassy 16 Akhmeta Str., Avlabari, 0144 Tbilisi. E-mail: embassy.georgia@mfa.gov.lv Greece Republic Embassy 37. Tabidze St. Tbilisi Tel: 91 49 70, 91 49 71, 91 49 72 Czech RepublicEmbassy 37 Chavchavadze St. Tbilisi Tel: 291-67-40/41/42 E-mail: czechembassy@gol.ge Web-sait: www.mzv.cz Japan Embassy 7 Krtsanisi St. Tbilisi Tel: +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: zhangling@access.sanet.ge Republic of Bulgaria Embassy 15 Gorgasali Exit, 0105 Tbilisi, Georgia Tel: +995 32 291 01 94; +995 32 291 01 95 Fax: +99 532 291 02 70 Republic of Hungary Embassy 83 Lvovi Street, Tbilisi Tel: 39 90 08; E-mail: hunembtbs@gmail.com State of Israel Embassy 61 Agmashenebeli Ave. Tbilisi Tel: 95 17 09, 94 27 05 Embassy of Swiss Confederation’s Russian Federation Interests Section Embassy 51 Chavchavadze Av., Tbilisi Tel: 291-26-45, 291-24-06, 225-28-03 E-mail: RussianEmbassy@Caucasus.net Ukraine Embassy 75, Oniashvili St., Tbilisi Tel: 231-11-61, 231-12-02, 231-14-54 E-mail: ukraina_pu@wanex.net; emb_ge@mfa.gov.ua Consular Agency: 71, Melikishvili St., Batumi Tel: (8-88-222) 3-16-00/ 3-14-78 Republic of Turkey Embassy 35 Chavchavadze Av., Tbilisi Tel: 225-20-72/73/74/76 E-mail: turkemb.tbilisi@mfa.gov.tr Address: 8, M. Abashidze str. Batumi, Georgia tel: (8-88-222) 7 47 90 Republic of Azerbaijan Embassy Kipshidze II-bl . N1., Tbilisi Tel: 225-26-39, 225-35-26/27/28 E-mail: tbilisi@mission.mfa.gov.az Address: Dumbadze str. 14, Batumi Tel: 222-7-67-00 Fax: 222-7-34-43 Republic of Armenia Embassy 4 Tetelashvili St. Tbilisi Tel: 95-94-43, 95-17-23, 95-44-08 E-mail: armemb@caucasus.net Web: www.armenianembassy.ge Consulate General, Batumi Address: Batumi, Gogebashvili str. 32, Apt. 16

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

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

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

Restaurants CHARDIN 12 Tbilisi , 12 Chardin St. , Tel: 92 32 38 CAFE 78 Best of the East and the West Lado Asatiani 33, SOLOLAKI 032 2305785; 574736290 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

September 29, 2014 #69