Caucasian Business Week #71

Page 1


BUSINESS WEEK WWW.CBW.GE caucasian business week Partner News Agency

October 13, 2014 #71

October 13, 2014, Issue 71

caucasian1 NBG President on New Regulations for Housing Sector




n Thursday evening on the session of economic council held by guidance of Prime Minsiter implementation ways of 100million investment project were discussed.


Pg. 2



ccording to economic Freedom Index of Fraser Institute Georgia ranks 16th among 152 countries and has improved data of last year by 9 steps. Pg. 2



ore Georgian wine is continuing to be exported to Russia. From January 1 to September 30, Georgia exported 42.8 million 0.75 litre bottles of wine, valued at $137 million USD to 39 countries across the world. Pg. 2



rdering online on the fast food market from is gaining more and more demand. The service is universally acclaimed by people of all ages and professions, from both men and women. Pg. 3

Pg. 5


an, Law, Freedom” has submitted an application to the Competition Agency for exploring monopolistic activities of concrete business companies. A statement released by the NGO reads: “Man, Law and Freedom nongovernmental organization welcomes the enactment of the antitrust legislation and hopes the competition agency will provide efficient and touchable job. There are grounded doubts about monopolized business sectors and cartel collusions. Public attitude to-

ward the issue was formed under the governance of the previous Authorities and this attitude, unfortunately, remains today. The due legislation and political will are required to expose concrete facts of misuse of advantageous positions by concrete business companies. The fact is the previous authorities have never demonstrated similar intention. We welcome the new Authorities are interested in the issue and have taken first steps for the business sector development. Even more so, there are many facts new and successful businesses were absorbed by major and government-lobbied companies.


McDonald’s Georgia Founder to Build 200-Suite Hotel in Kobuleti



he EU and Kazakhstan have signed an agreement in Brussels Thursday, forging closer economic and political ties. Pg. 11

Pg. 9

Pg. 4



Kovzanadze Finds Difficult to Select Different Model for Partnership Fund

GELA DUMBADZE Georgian State Minister for Diaspora Issues

n Saturday, 11th of October, at 11:00, in hotel Radisson Blu Iveria Hotel, leading Turkish Medical Institution Anadolu Medical Center organized specialized Conference with Georgian doctors. Pg. 6


Pg. 2

Tbilisi Hosts Diaspora Economic Forum


zerbaijani President Ilham Aliyev said the economic indicators of the first nine months were very positive. Pg. 10

Kvirikashvili Refuses Plans for Obligatory Licensing of Hotels and Restaurants

Pg. 2


Pg. 9

Archi Group: Prohibition of nonprofile ILIA TSULAIA Director general of the company

Pg. 9

AppIdea Revolutionary company that realizes your digital dreams



he ability to attract top talent is now the biggest concern for public relations agency leaders around the world, according to a survey conducted by The Holmes Report and the International Communications Consultancies Organisation (ICCO) as part of the World PR Report. Pg. 13

Pg. 4


Pg. 9


MAIN EVENTS caucasian business week

October 13, 2014 #71



n Thursday evening on the session of economic council held by guidance of Prime Minsiter implementation ways of 100-million investment project were discussed. Tbilisi Mayor David Narmania informed the council members about the project - Royal Gardens. He explained that preparation works of the project had been going during 6 years, which

caused loss to the investor. According to decision of economic council, in the coming days public contest will be announced on the architectural projects. Special council will select 3 projects. At the end of the year the investor will select the best of them. LTD Apolo G implements the project. It’s going to carry this important investment under Kempinsky trademark.



ore Georgian wine is continuing to be exported to Russia. From January 1 to September 30, Georgia exported 42.8 million 0.75 litre bottles of wine, valued at $137 million USD to 39 countries across the world. Of this, Russia obtained 27.9 million bottles, which was 65 percent of total exports, said the National Wine Agency of Georgia based on latest

state data. Wine exports increased in both volume and value in the first nine months of the year. In particular, the volume of wine exported grew by 62 percent, while the value surged by 64 percent compared to the same period of 2013. Latest data showed Ukraine was the second highest importer of Georgian wine, followed by Kazakhstan, Poland, Belarus, China, Latvia, Lithuania, Estonia and Azerbaijan.



usinessman Temur Chkonia plans to build a new 200-room hotel. According to preliminary estimates, tens of millions will be spent on the construction of the hotel. In addition, the businessman criticizes tourism infrastructure in Kobuleti and says that an approach to the resort of Kobuleti remains the same as 8 years ago and nothing has been done to bring the infrastructure in order. According to Chkhonia, infrastructure should be developed in Kobuleti, a hotel should be built and even more we have invested so much that it cannot be stopped. In his words, an approach to the resort has not changed and he does not see any difference between the current and the eightyear-old situation and it is a catastrophe for him.



ccording to economic Freedom Index of Fraser Institute Georgia ranks 16th among 152 countries and has improved data of last year by 9 steps. 2014 ranking reflects situation of 2012 according to economic freedom, rating published in 2013 reflected 2011 situation. In 2012 (on the basis of 2010) Georgia ranked 42. Top-3 list of the rating include: Hong-Kong, Singapore and New Zealand. Anti-record in terms of economic freedom belongs to Zimbabwe, Congo and Venezuela, which ranks 152 as the least free

economy of the world. Out of post-soviet space Estonia ranked 22nd, Lithuania - 27th and Latvia - 44. Main trade partner of Georgia Turkey ranks 75th, Russia shared 98th place with Ghana and was placed between Tajikistan and Sri-Lanka. As for first export market of Georgia - Azerbaijan ranked 115. Neighbor Armenia comes after Georgia, on the 17th place. Annual conference of Economic Freedom Network was held on this topic in Brussels on October 5-7. There discussions were about economic reforms in the context of increasing economic freedom.



ccording to 2014 research of GOEuro, Georgian ranks second according to cheapest train travel price. Only South Africa is ahead of Georgia, then comes Egypt on the third place. The rating indicates that train travel cost for each 100-km is $2.39. Train travel is

the most expensive in Denmark, where travel cost is $39,84 for every 100 km. Then comes Switzerland with $38,28. Austria completes top=3 list of the most expensive countries with $32.16/100km. GoEuro is one of the first multifunction research companies in travel. It compares and calculates travel costs by train, bus and plane.


The Editorial Board Follows Press Freedom Principles Publisher: LLC Caucasian Business Week - CBW Address: Shrosha Street 8/10 Director: Levan Beglarishvili Mobile phone: 591 013936; 577965577 Commercial Department: Irakli Lekvinadze Email: WWW.CBW.GE



ederica Mogherini, Italy’s foreign minister who is nominated as next EU foreign policy chief, told European Parliament members during a confirmation hearing on October 6 that in its eastern neighborhood the EU “will need to support” Georgia, Moldova and Ukraine. “We need a greater attention in different forms to the east – starting from support to Ukraine in terms of security, institutional reforms, political process, economic challenges and energy challenges. We will need to support Moldova and Georgia… We will need to work with Armenia, Azerbaijan and Belarus on our way forward,” Mogherini said in his opening remarks during the hearing at the European Parliament’s foreign affairs committee. Georgia was mentioned in the context of the Eastern Partnership once again during the three-hour hearing when Mogherini was asked how she sees democratic transformation in the Eastern Partnership countries in the view of Russia’s attempts “to establish Soviet sphere of influence there.” Mogherini responded: “I think the attempt that Russians trying to have is that of showing that the European choice is bad for the people in those countries… If we manage to show together that the European choice is good for the citizens of these countries – I think of Moldova, where difficult elections are coming now, I think of Georgia, I thing obviously of Ukraine – if the European choice is delivering concrete good results for the

people, that would be an attractive pull factor also for parts of their societies that are probably thinking in different way today.” In her opening remarks Mogherini said that Russia “might not be a partner at the moment – which is a picture of the situation today, still it is a strategic country in the world.” “So I guess we will need to deeply re-assess together our relations [with] Russia,” she said. Asked which tactic she would use if confronted by “Russia bear”, Mogherini responded: “I would say that we need mix of assertiveness and diplomacy – the balance will also depend on the reaction of the bear.” When Estonian MEP Tunne Kelam told Mogherini that “you have yet to convince me how to stop Mr. Putin” and that EU’s sanctions are lagging behind Kremlin’s moves, Mogherini responded that the sanctions have been “effective” as the Russian economy “is starting to suffer quite a lot.” But she also added: “Are they [sanctions] effective on Russian political decisions? I think we still have a question mark there.” Mogherini said that her “point of reference” is to work with the Ukrainians and to support President Petro Poroshenko’s efforts “because in the end they are the ones who have to deal with conflict on their territory.” She also said that the EU may need to work on increasing sanctions against Russia “if things get worse” in respect of Ukraine, and the EU “could lift the sanctions if things get better.”



ich Metals Group’, which represents the unity of ‘RMG Gold’ and ‘RMG Copper’, is issuing an official statement and answering the National Party and its representative, Givi Targamadze, regarding allegations he voiced at a press conference on October the 6th. According to Givi Targamadze, ‘Lengthening the license term for RMG Gold in April 2014 on behalf of the Prime Minister was a corrupt deal, resulting in the Government’s loss of income.’ As proof, Mr. Givi Targamadze names the license taxes RMG Gold had to pay for the budget in 2011 and 2012, which was a sum of 204 million GEL. We’d like to state that the conclusion drawn by Givi Targamadze is illogical and incorrect. In April 2014, which was after Sakdrisi-Kachagiani’s loss of its monument status by the order of the minister of culture in 2013, the company had rights to carry out its work on this site. As per the request issued by the company, the government lengthened the two-year license given out in 1994 by 8 months, taking into consideration that the prior 8 years (2006-2013) rendered the licensed territory inoperable for mining. However, because of court proceedings, the Sakdrishi-Kachagiani utilization never started and, correspondingly, RMG has gained no income, since no economic process was conducted. As for the taxes, the 204 million GEL noted in Mr. Givi’s statement is a

license tax that the company used to buy a new, 27 year-long license on gold and copper mining which will go into effect on January 2015. This wasn’t a regular pay via some economic activity, it was a single-time payment in budget, comparing which to our case is completely inappropriate and amateurish. Coming from the aforementioned circumstances, we would like to state that Givi Targamadze’s allegations are lies, and using similar “facts” to search for corrupt traces in RMG’s activities is completely irrelevant. Our company’s workings are transparent and in total adherence to Georgian Law and business ethics.”

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

BUSINESS October 13, 2014 #71

caucasian business week

55% OF FOODPANDA’S CUSTOMERS ARE WOMEN Men are urged to strive for foodpanda surprises by the opposite gender


rdering online on the fast food market from www.foodpanda. ge is gaining more and more demand. The service is universally acclaimed by people of all ages and professions, from both men and women. The latest statistics show that it’s the female sex that’s more active and makes up 55% of foodpanda’s userbase. A large portion of men write this result off to the women’s busy schedules and large amounts of duties, while others think that they’re just being lazy and dislike kitchen chores, and have now found the best possible way to impress their other halves – “Foodpanda.” “Foodpanda offers a simple, safe and wide range to their customers. This is a service that delivers food right to your doorstep, pushing the envelope

of e-commerce and having no business model alternatives here at Georgia. Spend your evenings with Foodpanda in warm and comfortable situations – bring your favorite restaurant home. Several women were asked of their experience with foodpanda. “I’m very glad something like this has started in Georgia!” … “Made things a lot easier for me.” … “The ordering process is so simple – I can do it from my computer or an even more handy phone app” … “Foodpanda’s the answer when you’re up to your nose in work and have no time to make food or even shop for it!” … “I’d suggest everyone use this app when they’re too busy to cook something special they could easily get from a restaurant.” … “I’d give a hint to all men to frequent Foodpanda surprises in their households!”



INTERVIEW October 13, 2014 #71

caucasian business week



n October 13 Sheraton Metechi Palace hosted the Diaspora Economic Forum organized by the State Ministry for Diaspora Issues. CBW has interviewed Georgian State Minister for Diaspora Issues GELA DUMBADZE over the Forum agenda and relevant issues. The Diaspora Economic Forum is an entrance event to the Global Diaspora Week that is held in tight cooperation with International Diaspora Engagement Alliance (IDEA – The Georgian State Ministry for Diaspora Issues joined the Alliance on August 1, 2014. The cooperation aims to achieve maximal involvement of the Diaspora and foster the development of Diaspora entrepreneurship in Georgia. IDEA was founded by Hillary Clinton, the US Department of State, the International Agency for International Development (USAID) and Calvert Foundation – 15 billion USD Community Development Financial Insti-

tution. A mutual understating memorandum was signed by the State Ministry for Diaspora Issues and USAID as part of the Forum. The memorandum calls for promoting Diaspora entrepreneurship in Georgia as part of the USAID/Georgia’s Restoring Efficiency to Agriculture Production (REAP). Romi Bhatia, an IDEA Head and senior adviser for USAID in Diaspora partnership issues, is an honorable guest of the Forum. He has chaired many microfinance programs for money transfers mobilization for USA-based immigrants. The Forum participants also discussed affects of money transfers and mechanisms of modern Diaspora investments. The Forum also discussed economic effects from the signature of the EU associated membership agreement, new regulations, the current challenges and needs in relation to the Diaspora, the ongoing state programs and the experience of the EU member and candidate countries. DIASPORA BANKING SYSTEM AND SPECIAL SERVICES Money transfers represent a Diaspora-related financial instrument in the migration history. According to the World Bank 2012 statistics, money transfers in the developing countries marked 401 billion USD. In the recent years the WB developed and improved

money transfers mobilization system in the form of Diaspora bank services. The Georgian Diaspora’s financial potential is reflected in money transfers to Georgia that constitute 9 to 10% of the state budget and exceed the volume of foreign direct investments. In Georgia the system of Diaspora money transfers is often spontaneous. Consequently, the transferred money is spent and disappeared, because there was no saving service of the Diaspora bank accounts in Georgia. The Diaspora Bank Accounts are one of the most practical methods for mobilizing money transfers and it is actively used in the countries with significant Diaspora components to promote the state economy, including, the developing countries Albania, Armenia, Ethiopia, India, Kenya, Nigeria, SriLanka and Turkey have liberalized the bank sector regulations with the aim to draw Diaspora depositors to their homelands through offering saving deposits at the Diaspora banks. Namely, Diaspora deposits increase domestic bank assets and commercial banks easier make investments and issue credits. Consequently, commercial banks have developed packages of special services, that, in most cases, include preferential terms and interest rates to the Diaspora with the aim to maintain deposits in homelands. The Diaspora bank deposits system is one of the components of a democratic state. The Diaspora bank system contains special packages of preferential and favorable services for the Georgian Diaspora, including an access to bank services for residents without a legal status and favorable terms for placing transferred sums on personal deposits. The Diaspora welfare is a main priority direction of the State Ministry.



n the Thursday session of the Economic Council Minister of Economy and Sustainable Development George Kirikashvili denied information released in media about establishment of the new regulations for the hotels and restaurants. “The government is not planning to establish any restricting regulations to the hotels and restaurants. Such initiative many come from associations and private sources. The state doe not have such aim”, - George Kvirikashvili stated. In media information was released based on the official person - deputy chairman of Tourism Department of Adjara Mamuka Berdzenishvili. He shared own opinion to information agency GHN about this topic and recalled international practices as example. Berdzenishvili considers that special license system should exist to start hotel and restaurant activities. A hotel

or a restaurant should meet minimal criteria, which should be written in the legislation. Such regulations do not exist now. “Specific licenses should exist for starting of hotel, restaurant, tourist and agency business, or working as a guide. In fact all these tourism spheres should have minimal preconditions, after the satisfaction of which starting of a concrete business will be possible. It exists in any normal country. Not to go too far, it’s in our neighbor Turkey” - Berdzenishvili explains. Berdzenishvili also considers that introduction of the new regulations will not cause additional expenditures to business. “It will not be a burden, as in the case they meet the conditions, a hotel will get business starting license. To satisfy license terms, security requirements should be met at the minimal level. It does not mean that license should be paid. It means that it’s necessary to meet minimal norms and standards”, - Berdzenishvili states.

APPIDEA REVOLUTIONARY COMPANY THAT REALIZES YOUR DIGITAL DREAMS Company that creates opportunity for the people from all over the world to virtually realize their ideas

INTERVIEW WITH THE FOUNDER OF “ APPIDEA” MIKHEIL CHKHARTISHVILI - How did you get the idea about founding “Appidea”? - When I graduated from Regent’s University, my friends and I began to think big about an enterprise we could dedicate ourselves to - thus the idea of trying our forces in the digital business arose. We realized that the online industry appeals to our visions of scalability; where it is possible to convert virtually any good idea into a valuable asset by focusing on product volume - this is what we want to do; empower idea-makers with sheer reach and size. - When and under which circumstances was your company established? (Please) Introduce your team?

- Our production facility and staff is located in Tbilisi, and our management and finance department out of London. Thus Georgian coding capacity and mathematical minds meet the power of British business and financial force. On the production side, we have a 16 member team in Tbilisi, who possesses all skills required to create high quality product in line with Silicon Valley standards. Despite the fact that the app industry already has a turnover of several billion of dollars, it is still in its earliest stage, which makes it very difficult to find the best staff, who is capable to perform the tasks needed to chip in on this development. Our team is truly an asset to the ventures we are facing. On the business side, we have strong strategic competencies and financial force backing us from London, which means that we are capable of taking things to the next level and beyond in a fraction of the time needed by most other development agencies. We are 100% financially independent. - What is the main goal of your enterprise and what are your expectations? - Many people believe that success in business depends only on miracles. There are cases where a single, but not necessarily high- quality app brought tens of millions in income in just a few hours, and a lot of people buy in to this dream My vision of success is very pragmatic: I believe that success can be achieved by systematic and on daily basis development- oriented approach. We look at long-term prospects of our business, but this does not exclude the possibility of sudden success, which is common in this industry, why we are a lot more prone to take chances.

Our goal is to gain multi-million user base of our products by our one-year anniversary. We have a precise plan and a strategy to achieve this. - As we know, anyone can present and post an idea on your website. What do we need for that? - Besides the application development, we have established a venture capital enterprise, which means that we expand our cooperation to entrepreneurs from all over the world. AppIdea has funding capital to finance virtually all types of start-up projects. Our goal is to create a bank of ideas in order to choose the best ideas and develop them further. In our opinion, this is one of the main ideas that makes our company attractive. As it is known, there is a misbalance between amount of ideas and capital, which can be invested in the development of ideas: There are thousands of unrealized ideas, which lack allocation of funding. Our approach in this case is unique. On the one hand, we have our staff who works daily on the development of new ideas and on the other hand, we seek out for the entrepreneurs from all over the world and discuss prospects of potential cooperation. The combination of these two approaches allows us to identify the gold line between great ideas and capital investments in this industry. - What are the criteria for start-ups selection and how will they be financed? - After applicants submit their ideas on our webpage, the committee of the venture capital enterprise undertakes detailed analysis of the project. Then we perform risk- analysis, calculate costs of participation of the applicants in the project, and propose individual offers.

Unfortunately, this business is dominated by ideas that lack specific motivations for why particular projects should be funded. For this purpose, we have developed complete cycle of analysis, which includes maximum filtration and creates real chance of success. - As we know the selection of start-up projects will not only encompass Georgia, but different countries of the world. Could you (please) tell us more about this? - With AppIdea having offices in different countries in Europe, it allows us to establish contacts with different companies and individuals. Our geographical location also allows us to undertake project management in different countries more easily if that would be the case. Despite of the fact that online industry is built in the virtual world, it is still difficult to produce a product through virtual communication. AppIdea is very fit in this regard, as we have offices in world’s five leading countries - we’re going to be close to everyone. - How do you picture your company in few years? - This could be a revolutionary company with a pioneering effect on the Eastern European techwave, that we are currently seeing. Everyone is talking about Eastern Europe as the new frontier of the tech-world; the next Silicon Valley, and we would like to pitch in on that development with our two major assets: Human resources and capital. We believe that this combination together with right strategies make success inevitable. Also the fact that we create the database of ideas for future funding allows us to have a constant stream of the best ideas and projects, which is also a precondition for success.


October 13, 2014 #71


he housing sector in Georgia has taken second breath. The 2008 to 2012 crisis has been overcome. The times when development companies used to collect money from customers for incomplete apartments have been also passed. The customers have changed their approaches, preferences and needs. They have become more cautious and pretentious. Consequently, developers and construction companies have changed their strategy too. They offer higher-quality products and more favorable terms. Amidst growing competition, the process of natural selection proceeds on the market. New, including major foreign development companies, have appeared on the Georgian market. They have been operating on the market with their own capital and offer international standard products to their clients. It is also worth noting construction projects are being expanded to regions from Tbilisi. Developers assert there are good perspectives in Batumi and other resorts of Georgia to make housing projects as attractive as in Tbilisi. As to the capital city, the price of a square meter ranges from 5000 to 600 USD on average. The price depends on the location of districts. For example, the price of a square meter in Vake-Saburtalo and the so-called prestigious districts starts from 800-900 USD and reaches 1000-1500 USD, in some cases, even 2000 USD. Prices are lower in suburb areas. In Gldani, Temqa and Varketili the price of a square meter ranges from 500 to 600 USD. Developers hope the number of clients will increase along with improving citizens’ financial welfare. In this respect the bank sector should further develop and loan interest rates should be lowered. Other circumstance that makes developers hopeful is the fact there is a great number of apartments in Tbilisi and all over Georgia constructed in the Soviet period. Major part of them are outdated, especially, the so-called Khrushchovkas. Major part of residents of these apartments will definitely become clients of development companies in the future. Thus, this business has got significant perspectives in Georgia. Moreover, construction projects are not priority in outskirt areas and, on the other hand, there are more free and vast spaces on these territories. The advantage of outskirt districts is conditioned by ecological conditions, while there are many serious problems in this respect because of overloaded road traffic and air

caucasian business week

pollution. This and many other circumstances have generated a new tendency on the global market: developers are giving preference to complex construction and development of urban territories instead of point projects. Similar settlements are equipped with all required infrastructural assets, commercial and recreation zones. The global tendencies are reflected on the domestic market too. Domestic developers are trying to arrange even a small yard or a parking place for each residential building. Competition sharpened after foreign investors showed special interest in the Georgian market. Georgia’s one of the major investments was recently made by an Azerbaijani investment holding house. AS Group Investment has made an ambitious statement and launched construction of the South Caucasus’ biggest project DIRSI. The large-scale project drew public interest from the very beginning, but today this interest has further increased after the developers announced the project completion schedules. In two years developers have completed the first stage and finished construction of 11 residential buildings. Skeptics used to note in two years the company could not keep the promise and it would have to prolong the terms. But the autumn of 2014 has come and DIRSI has introduced its report, as promised. At this stage, the first stage construction works of a residential complex between the river Mtkvari and Cholokashvili Street have been almost completed. The company says in november everything will be ready for the clients to mark their new-dwelling. The complex is based on the principle of Everything in One Step.

This is a new word on Georgia’s development market. Previously, customers could make choice between white and black frames. The situation is different in case of DIRSI. Customers have to only bring furniture to DIRSI apartments and the company has provided job for creating comfortable environment for clients. The complex will have its own medical asset, two secondary schools, two nursery schools, a recreation zone, an about 3 kilometer boulevard, café-bars, restaurants, parking places and underground parking zones. Active negotiations are underway with famous Georgian and foreign brands on opening various stores, markets and restaurants in the boulevard. The company does its best to make the DIRSI complex an important recreation and entertainment center. As to the quality, construction works are being carried out with international technologies, with ecologically clean construction materials and in line with international standards. The company applies the so-called tunnel gauge construction method as one of the main guarantees for steadiness and seismic stableness of a building. Similar buildings withstand 9-scale earthquakes, developers assert. The DIRSI complex is based on a rocky foundation and this factor is one of the main conditions for the building safety. Buildings on rocky foundations are less vulnerable and similar buildings withstand earthquakes better. The DIRSI complex has other big advantage – hydro and thermal insulation. This signifies DIRSI residents will pay 30% to 40% less money for public utilities compared to other residents. The DIRSI buildings have got modern firefighting systems, Italian fast cargo and passenger elevators. If electricity is turned off or in other emergency situations, elevators do not stop operation, modern technologies enable passengers to leave the cabin immediately. The DIRSI services also include paid underground parking places and free aboveground parking

places for all residents. Concierge services are also available. The price of a square meter makes up 900 USD. The price is not low, but taking into account the list of services, everyone will agree that the price is reasonable. Repair works are complete at all apartments and they have got with all accessories of kitchen and bathroom, gas stove, built-in ventilation systems, sinks, toilet pans and showers. As to the payment terms, the company offers flexible mortgage system and internal installment schemes. It is impossible to ignore the complex that has considerably changed the capital city appearance. Our interest, however, was doubled by the fact DIRSI is about completing the first stage of the construction project. About 450 customers will move to new apartments in late November. At this stage, DIRSI has finished the construction of 11 residential buildings. Apartments have got windows, doors, walls have been plastered and the floor have been lined. Apartment works have been completed in 7 residential buildings. At this stage, yards lining works are being carried out on the territory of residential buildings: the company is laying plates, arranging pavements, planting trees and flowers. Construction works have been almost completed on a part of the boulevard. Railings have been made, cycling line has been arranged, and traffic direction signs have been painted. The project is being carried out by Azerbaijani development company AS Group Investment. The company also produces and sells construction materials in Georgia. The company launched operation in 2003 and entered Georgia in 2010. AS Group Investment took decision to launch its first project in Georgia in 2011. In 2012 the company launched construction works and in two years introduced a report for Georgian citizens – the company has completed the first stage of the project in the promised terms.



or many years famous companies have disappeared from various business sectors in Georgia and the market leading companies have replaced them. Oil products importers, pharmaceutical and insurance companies, cell operators and other sectors’ companies are samples to this. There are importer companies that enjoy exclusive rights for imports of grain and wheat to Georgia. This circumstance is preconditioned by the fact political groups lobby this or that business sector. Our organization has collected information on the rights and duties of the agency; it is important that there is a limitation under which if compa-

nies with especially major turnover (20 million GEL) merges with other economic body, it becomes obligatory to inform the agency over the planned activities. The competition agency will explore the issue and assess whether the deal may create monopolistic conditions to the company. We would like to note that in due time insurance companies used to apply various schemes. For example, Aldagi insurance company merged with several companies and, in practice, turned into a monopolist. It is also worth noting GT Mobile has disappeared from the market and its license was later purchased by Geocell. Later LLC Mobitel appeared on the market under the brand of Beeline and the company had to deal with many

problems to operate on the market. The pharmaceutical market is also very important, as for many years the sector is has been controlled by monopolist companies and cartel collusions. In reality, there are major manufacturers and importers on the pharmaceutical market and they control a major part of the market, while authorized pharmacies cannot compete with them and they remain as main sources for satisfying the needs of drug addicts. We should also explore the activity of oil importer companies. Real signs of cartel collusion in this sector emerged after SUN Petroleum Georgia launched operation under the brand of GULF and expelled several companies from the market, for

example, Magnat, Senta and Eco Georgia. Moreover, for many years SOCAR used to exclusively import natural gas and fuel”, the statement reads. Thus, representatives of Man, Law, Freedom NGO note the legislation is timely and a bit delayed and the competition agency will have to explore many business sectors and business companies. In the near future the organization plans to apply to the competition agency for exploring activity of a concrete business company. “We hope, the agency will work efficiently and protect interest of each business company, promote the business development and growth in competition capacity”, the statement reads.


BUSINESS caucasian business week

October 13, 2014 #71



ompany Natakhtari has been equipping barman schools of vocational institutions and colleges with beer pouring equipment, special vessels and the other required materials, so that future barmen can better acquire the barman’s profession and equipment treatment skills, which will ensure better servicing customers at bars, pubs or restaurants in all towns and regions of Georgia and facilitate establishing modern standards of beer consumption. One of such events was organized at barmen training class of Icaros College. Jako Jorjadze, President of Barmen Association introduced the project details to guests. Future barmen are being taught to make beer cocktails. NINO SURMAVA, Natakhtari’s PR Manager: “It is our intention to offer consumers highest quality beer. Within the project framework we plan to install the pouring equipment so that future barmen are allowed to learn beer pouring and making cocktails at a professional level.” JAKO JORJADZE, Barmen Trainer, Ikaros Vocational College : „We like the project very much. I would like to thank the Company Natakhtari. Equipment was installed at the college. Every month we’ll have a cask of beer to teach students how to pour beer and make cocktails on its basis. We have not had such opportunity up until now.” The Barmen School students taught attending journalists how to make cocktails from beer. Media representatives also had the opportunity to taste cocktails.

ANADOLU MEDICAL CENTER HELD SECOND CONFERENCE TOGETHER WITH GEORGIAN DOCTORS Alternative views and Free Medical Second Opinion for Georgian patients from specialist of the center


n Saturday, 11th of October, at 11:00, in hotel Radisson Blu Iveria Hotel, leading Turkish Medical Institution Anadolu Medical Center organized specialized Conference with Georgian doctors. At round table, doctors discussed several patients’ medical history and talked regarding the ways of treatment and worked out the procedures needed to overcome cancer. During the conference, discussion was held among Georgian doctors together with experts from Anadolu Medical Center and simulated Tumor Board Meeting was held. Representatives from Anadolu Medical Center attended the meeting: • Onco – surgeon , Meting Cakmakci

• Radiation Oncologist, Kayıhan Engin • Nuclear Medicine Specialist, Kezban Berberoglu At the end of the conference, at 15:00, Georgian patients received Free Medical Second Opinion. Specialist from Aanadolu Medical Center met Georgian patients and discussed with them ways of treatment. As they say, early diagnosis and treatment with innovative technologies increases chances of patient’s survival. This is second conference organized by Anadolu Medical Center in Georgia. Last year medical center held a meeting on 15th of June and the theme was: “ Latest Medical Updates”. Over 100 Georgian doctors attended the event and more then 50 patients received Free Medical Second Opinion. Anadolu Medical Center is leading European

Medical Institution using cutting edge treatments. Since 2002, Anadolu Medical Center had close partnership and a data-sharing collaboration with John Hopkins Medicine, one of the most respected medical institutions worldwide, with over 100 years of expertise and experience. Anadolu Medical Center’s Oncology Center closely follows standards of care developed and practiced by Johns Hopkins in cancer research. The Oncology Center offers services related to the diagnosis and treatment of all types of cancers as well as preventive medicine. The Center is equipped with world standard technology in the field of cancer treatment and also offers a comprehensive screening program, developed to identify healthy individuals and inform the public on cancer prevention. Designed around the concept of a “hospital

within a hospital”, the Anadolu Oncology Center gives the patients the opportunity to receive treatment in a private dedicated environment. The concept enables all disciplines involved in the treatment and observation of cancer patients to work in collaboration under the same roof. This is of great importance, as both the patient and primary doctor can effortlessly access the assistance of other medical disciplines. A multidisciplinary approach is recommended also for the diagnosis and treatment of gynecologic cancers. Anadolu Medical Center developed a dedicated international department of 50 full-time employees, providing translation in 15 languages and coordinating all aspects of the patient’s and his family visit, including scheduling appointments, arranging accommodation and an interpreter to facilitate all the communication.


caucasian business week


ISET Policy Institute International Chamber of Commerce


PUBLICITY caucasian business week

October 13, 2014 #71


BANKING NEWS October 13, 2014 #71

caucasian business week



n the coming weeks National Bank of Georgia will offer new game rules to the commercial banks in lending of construction and healthcare businesses. President of NBG George Kadagidze stated about it on Wednesday, after the meeting with developers. NBG president stated that his institution will regulate the issue by respective normative act, working on which has already been started. Regulator of financial system made decision to issue there act on the basid of claim of Builders’ Association of Georgia. Association member devrlopers (Arsi, Axis) are concerned by the fact that the bank, which own construction company or a hispital, by submis-

sion of respective business plan they get access on the ready-made projects, with justification and budget.developers consider that nonprofile construction and healthcare actives give banks monopolistic position in comparison to other market participants. George Kadagidze stated that despite nonprofile actives is about 1% of the total actives of the banks and it does nor create problems to competition, as it seems it’s problem due to specific of Georgian market and his institution will help market in its resolution. President of Nationwide Bank states that banks will be prohibited to lend own business from the deposits received from clients. Ownership of nonprofile actives may also be prohibited to the clients.

PASHA BANK SPONSORED CONSULTATIVE BOARD MEETING OF THE ICC GEORGIA ASHA Bank, a full service corporate vestment climate in the country. The issues raised KOVZANADZE FINDS DIFFICULT TO


bank, sponsored the seventh meeting of the ICC Consultative Board on October 2, 2014. Board meeting was exceptionally attended by Giorgi Kvirikashvili Deputy Prime Minister and Minister of Economic and Sustainable Development of Georgia. Goga Japaridze, Commercial Director at PASHA Bank Georgia delivered his welcoming speech. The meeting covered the key challenging issues for Georgian economy. The Outlook on Plans for Expansion of Poti Sea Port; Challenges with the Revenue Service; Challenges with the New Visa Policy for Employers and Perspectives; Government’s Plan to Improve the Business and Investment Environment. The ICC Consultative Board is the only body of its kind in the business community in Georgia, consisting of seven ambassadors, three major international financial institutions, and three major international organizations. The purpose of the Consultative Board is to bring together members of the diplomatic and business communities on a quarterly basis to discuss the business and in-

are subsequently advocated to the government through a multi-pronged approach by the ICC stakeholders to effect positive change in the business and investment climate. The International Chamber of Commerce is the largest business organization in the world that includes hundreds of thousands of businesses and chambers of commerce. ICC consults regularly at the global level with the G8, G20, the World Bank, WTO, WCO and the UN. In Georgia and beside regular companies ICC includes sixteen major business organizations, up to 100 business companies and universities. “We have been operating in Georgia for about n year and a half by now, and from the very beginning we have built a mutually productive working relationship together with ICC. PASHA Bank fully supports their mission of improving the business climate in Georgia,” said Goga Japaridze, Commercial Director at PASHA Bank Georgia. “We are more than happy to support ICC in holding this Consultative Board Meeting today. I would like to use this opportunity and thank them for the great job they are doing,” said Japaridze.



rchi Group considers that prohibition of non-profile ownership to the commercial banks is important and beneficial. As director general of the company Ilia Tsulaia states, if the regulator establishes such restriction, all companies working in development business will be in equal conditions and healthy competition will be created in the sphere. It will promote development of this field. He also states that in the current situation development company, which belongs to the bank, has easier access to large amount of financial resource. “Clients of such development company get mortgage loans more easily, which gives

additional advantage to the company in sales. As you know sales are vitally important for the development company. In addition, independent development companies do not have desire to cooperate such banks and get credit due to several reasons: first, such banks are not interested to strengthen in fact competitive companies second, independent development companies do not have desire to open commercial secrets not to partner bank, but in fact to the competitors. Respectively, establishment of the restriction will considerably solve these problems - banks will be interested in cooperation with independent developers and developers will have problems to have open business relations with the banks”, - Tsulaia considers. Ilia Tsulaia also mentions that during elaboration of the limitation regulation, it will be very important to elaborate formulation, which not only formally prohibit ownership of nonprofile actives, but it will really implement it. Reminding that on Wednesday on the meeting with the developers president of NBG George Kadagidze stated that in the coming weeks they will offer new game rules to the commercial banks in lending of construction and healthcare businesses. Kadagidze stated that banks will be prohibited to give credits to own construction businesses from the deposits. Besides, it’s not excluded that ownership of nonprofile actives will be totally prohibited to the banks.



ank of Georgia announced about a new loan offer. The customers can port from other bank and benefit from the improved conditions. Aim of the loan is not restricted. It’s for any need (vacation, funding for study,

purchase of furniture or technology, payment of credit card). For the salary clients of Bank of Georgia the loan equals to 14 times salary amount. Maximal amount is up to $50 000 GEL/ USD, term - up to 10 years. Minimal monthly salary requirement is 200 GEL.



rakli Kovzanadze considers that it’s difficult to in a significantly different model from Partnership Fund to create a state fund or corporation. Executive director of Partnership Fund Irakli Kovzanadze stated about it on Thursday, on the commenting of Development of Financial Corporation bill. Kovzanadze considers that considering double deficit of the country, it’s difficult to find resources from the new sources for the state fund. “When we have in fact double deficit in Georgia - there is a budget deficit and deficit of the current account caused by trade deficit, it’s difficult to find resources for the state fund other than Partnership Fund, among them from the budget sources. It’s also difficult to fin significantly different model from Partnership Fund. Therefore, it’s important to maintain the investment directions, vector of Partnership Fund al also to maintain long-term funding of the capital, which is deficit in Georgia,” - Irakli Kovzanadze states. Reminding that government at first planned to create Sovereign Fund, then State Bank for Development on the basis of Partnership Fund. Idea of the state bank deserved sharp criticism. According

the latest decision, a new state organization, which will be founded on the basis of Partnership Fund, should be named as Financial Corporation for Development. The parliament has not yet started discussion of the bill.



BC Bank, today announces that Badri Japaridze has been appointed as a Chairman of the Supervisory Board of Bank Constanta. Mr. Japaridze is a Founder Shareholder and Vice Chairman of the Supervisory Board of TBC Bank. Bank Constanta focuses on the growing microfinance segment of the Georgian banking sector.

It is a wholly owned subsidiary of TBC Bank and all members of the Supervisory Board of Bank Constanta are also the members of TBC Bank Management or Supervisory Boards. Mr. Japaridze will oversee the final stage of the integration of Bank Constanta into TBC Bank, which is expected to be completed in the First Quarter of 2015.



BC Bank, a leading bank in Georgia, is pleased to announce the appointment of George Tkhelidze as Chief Risk Officer, effective from December 2014. The former Chief Risk Officer, Archil Mamatelashvili, will take the position of Advisor to the Management Board for Macroeconomics and the Financial Sector. Mr. Tkhelidze joins TBC Bank from Barclays Investment Bank, where he held the position of Vice President in the Financial Institutions Group (FIG), EMEA since June 2011. For the two years prior to this he was an Associate Director in Barclays Debt Finance and Restructuring Teams. In his earlier career in Georgia, Mr. Tkhelidze held various managerial positions in ALDAGI insurance company, where he also served as Chief Executive Officer until he left the position in 2007 to obtain his MBA degree from London Business School. During his career in London, Mr. Tkhelidze executed multiple M&A, debt and capital markets transactions with European financial in-

stitutions. Mr. Tkhelidze graduated from Tbilisi State University in 2000 with a Diploma in Law and in 2002 obtained a Master of Laws degree in International Commercial Law at the University of Nottingham. Commenting on the appointment, Vakhtang Butskhrikidze, Chief Executive Officer of TBC Bank said, “I am very pleased to welcome George to TBC Bank’s Management Board and as Chief Risk Officer. George brings with him extensive banking sector expertise combined with managerial experience in Georgia. Importantly, George was one of the key advisors on our recent successful IPO and knows TBC Bank well. I am confident that George will contribute a great deal to the Bank’s further growth and development. I would also like to take the opportunity to thank Archil for his superior work and invaluable contribution to the Bank’s success during the transition period when he served as the Bank’s CRO. I would also like to wish him further success with his new duties.


AZERBAIJAN caucasian business week

October 13, 2014 #71




zerbaijani President Ilham Aliyev said the economic indicators of the first nine months were very positive. He made the remarks at a meeting of the Cabinet of Ministers dedicated to the results of socio-economic development in nine months of 2014 and future tasks on October 8. The president said since the beginning of the year and to the present day the Azerbaijani economy has successfully developed. “I should note that the financial and economic crisis is still ongoing in Europe, while Azerbaijan is registering economic development every year. In the first nine months of this year, the gross domestic product grew by 2.5 percent,” he said. “Most importantly - and we note this with satisfaction every time - our non-oil sector has grown by 6 percent,” the president added. “Inflation is very low - only at 1.5 percent. Population’s incomes have increased by 5.4 percent,” he said. “Thus, as in previous years, incomes exceed inflation, and this has a direct positive impact on people’s living standards. I am sure that inflation will remain low for the rest of the year.” A total of $19 billion has been invested since the beginning of the year. Of this, $11 billion is domestic investment, he added. President Aliyev also said Azerbaijan possesses sufficient foreign exchange reserves. “Since the beginning of the year our financial resources have increased by $3.6 billion. In general, our foreign exchange reserves exceed $53 billion, which is also a very high figure on a global scale. In per capita terms, I believe that our foreign exchange reserves are at the highest level on a global scale,” he noted. President Aliyev also said Azerbaijan’s main point of support and the source of strength is the economic independence. “We do not depend on anyone, which allows us the opportunity to pursue an independent policy in the political sphere, including foreign policy,” he added. The head of state went on to say that during the first nine months all infrastructure projects were successfully implemented, and this process is underway. “The state program on the socioeconomic development of the regions has been successfully implemented. More than 100,000 jobs were created, including 80,000 permanent ones. Since the beginning of the program, from 2004 to the present day, 1.3 million jobs have been created. This has sharply reduced unemployment, which now stands at 5 percent,” he noted. The head of state said important steps were taken to improve living standards of displaced persons. “We allocated major funds to provide the IDPs with new homes. This process is ongoing and will, of course, be continued next year too,” he said. Touching upon the Armenia-Azerbaijan Nagorno-Karabakh conflict, President Aliyev said unfortunately, this year has not seen any progress in the settlement of the conflict. “The main reason for that is the non-constructive and insincere stance of the Armenian side. Armenia is trying to delay the issue as much as possible and leave the status quo unchanged despite the fact that the presidents of the OSCE Minsk Group co-chairing countries have repeatedly stated that the status quo is unacceptable and should be changed. Changing the status quo means the

liberation of the occupied lands. But unfortunately, these statements are hung in the air and Armenia ignores them, while the sides that have made these statements do not take serious measures and the issue remains unresolved,” he said. President Aliyev expressed confidence that Azerbaijan will restore its territorial integrity. “Political, diplomatic, economic and military factors play the key role in it. I have repeatedly said this and I want to say again that a significant role is also played by the demographic factor. According to Armenia’s official statistics, the country’s population has decreased by 80,000 people in the first nine months of this year alone. So 80,000 Armenian citizens have left the country for good. This trend will continue for the rest of the year, so the Armenian population will reduce by more than 100,000 people. The population of Azerbaijan is growing and will continue grow. This, in turn, will play a fundamental role in conflict resolution and regional panorama as a whole,” he added. With regard to the country’s energy policy, President Aliyev called the stone foundation of the Southern Gas Corridor as a historic event for Azerbaijan. “I am confident that in the near future the Southern Gas Corridor will be built, commissioned and ensure steady development of our country in the decades to come. Our political influence will increase and there will be new economic opportunities,” he noted. Later, Azerbaijan’s Finance Minister Samir Sharifov, Ecology and Natural Resources Minister Huseyngulu Baghirov, as well as Youth and Sport Minister Azad Rahimov made speeches to highlight what was done in the first nine months of 2014, and outlined further tasks. Finally, President Ilham Aliyev made a closing speech at the meeting. The Head of State instructed relative officials to implement all tasks set before them. He said the state budget has sufficient financial resources and the infrastructure projects should be carried out in time. The head of state stressed the importance of further strengthening the Azerbaijani army and developing the defense industry in the country. The Azerbaijani president also said the government should approve the investment program by the year-end to implement investment projects starting next year. President Aliyev expressed confidence that drop of oil prices on the world markets will not seriously affect the fulfillment of Azerbaijan’s state budget. President Aliyev also stressed the importance of increasing the export capacity of the country. He said Azerbaijan should effectively use new opportunities to increase the export of agricultural products. President Aliyev stressed the importance of propagating Azerbaijan’s tourism capacity abroad, ensuring food security and paying special attention to the environment issues. At the end the head of state said work on preparation for Baku 2015 European Games is successfully underway. He expressed confidence that Azerbaijan will host the Baku 2015 European Games as successfully as the Summer Olympic Games. “I am confident that all the tasks will be fulfilled successfully by the end of the year. We will successfully finalize 2014 and successfully start 2015,” he concluded.

he International Monetary Fund (IMF) forecasts Azerbaijan’s GDP growth at 4.5 percent in 2014 and 4.3 percent in 2015. This was noted in a report on the prospects for development of world economy World Economic Outlook - published on IMF’s website on October 8. According to the fund’s previous forecast, released in June, the GDP growth of the country was predicted at 5 percent in 2014 and 4.6 percent in 2015. The report also said in 2019 the economic growth in Azerbaijan is expected to reach 4.2 percent while the June report forecasted the country’s GDP growth at 4.23 percent in 2019. IMF experts believe the decline of economic growth in oil and gas exporting CIS countries in 2014-2015 is mainly due to the fact that high prices of energy carriers compensate only part of the impact of the decline in Russia’s export. “Given the geopolitical tension in the region, the sanctions against Russia and structural changes in the Ukraine, the CIS economy is facing serious problems,” the report noted. IMF analysts expect a decline of overall GDP growth rate in the CIS countries from 2.2 percent in 2013 to 0.8 percent this year, and this figure is expected to reach 1.6 percent in 2015. Azerbaijan’s Social-Economic Development Concept, developed by Economy and Industry Ministry, said the real GDP growth in the country will be equal to 5.2 percent. This figure is predicted to reach 59.4 billion manats in 2015. The World Bank forecasts Azerbaijan’s economic growth to stand at 5.2 percent in 2014, and 4.1 percent in 2015. The Asian Development Bank predicts the rate of GDP growth will amount to 5 percent in 2014, and 4.8 percent in 2015. IMF also forecasted that the growth of current account surplus of Azerbaijan will reach 10.4 percent of GDP by 2015. The report said this figure stood at 17 percent of GDP in 2013, and the fund expects this figure to decline to 14.6 percent of GDP by the end of this year.

Also, it is expected that the current account surplus will decrease to 7.2 percent of GDP in 2019. The Central Bank of Azerbaijan (CBA) said earlier that the surplus of the current account totaled $6.4 billion in January-June 2014, decreasing by 4.5 percent compared to the same period of last year. The surplus of current account of Azerbaijan’s oil and gas sector amounted to $10.3 billion in the reporting period. The total balance of payments surplus made up $4.4 billion, increasing 1.88 times compared to the same period of last year. Touching on the inflation rate in Azerbaijan, the IMF report said this figure will stand at the level of 2.8 percent in 2014 and 3 percent in 2015. In the fund’s June report, the inflation was predicted to be at 3.5 percent 2014, and in 2015 - at the level of 4 percent. In 2013, consumer prices in Azerbaijan rose by 2.4 percent, and the annual rate of inflation was 1.5 percent during the first 9 months of 2014. IMF also estimates that inflation in Azerbaijan is expected to reach 4 percent in 2019. The Azerbaijani government expects consumer price inflation to be 3.5 percent in 2014. Consumer inflation in Azerbaijan will not exceed 1.6 percent till the end of 2014, according to forecasts of the European Bank for Reconstruction and Development (EBRD). ADB forecasts inflation in Azerbaijan for 2014 and 2015 at 4 and 3.5 percent, respectively. The official exchange rate on October 9 was 0.7843 AZN/USD.



he agricultural products of Azerbaijan’s various companies are demonstrated at the 16th Russian agricultural exhibition ‘Golden Autumn 2014’, which is underway in Moscow on October 8-11. The news was announced by Azerbaijan’s Economy and Industry Ministry. Fourteen Azerbaijani companies engaged in the sale of fruit and vegetables, a variety of fruit juices, jams, tomato paste and other products, represent the country at the event. The exhibition is important for the Azerbaijani companies in terms of presenting their products, increasing export opportunities and gaining access to new markets. Russia has banned the import of almost all fruits and vegetables from Poland, including apple, pear, cherry, peach, plum and cabbage since August 1. Imposition of bans on imports of European and

U.S. products by Russia has created new opportunities for increasing the export capacity of Azerbaijan’s agricultural products to this neighboring country. Russia is the main trade partner of Azerbaijan in the CIS. It also ranks first among the countries importing from Azerbaijan. Azerbaijan’s delicious, high-quality and organic agricultural products have always enjoyed significant demands in the Russian market. Great interest of Russian consumers shown towards diversity of products offered by the Azerbaijani companies, high quality and packaging level of the products during the exhibition ‘Golden Autumn 2014’ is the main indicator of this. Today, Azerbaijan is ready to rapidly boost the volume of our export. This year, the country has imported 157,000 tons of fruits and vegetables, particularly potato, nuts and other goods, through the border with Russian Dagestan.


CIS & CHINA October 13, 2014 #71

caucasian business week



he EU and Kazakhstan have signed an agreement in Brussels Thursday, forging closer economic and political ties. President Nursultan Nazarbayev also met with European Commission President Jose Manuel Barroso. Brussels and Almaty will enhance cooperation on 29 key sectors- including economic, financial, energy, transport, environment, climate change, employment, education and research. Kazakhstan is the biggest economy in Central Asia, and has large oil reserves, and is the world’s largest producer of uranium. It is also closely politically aligned with Russia, and along with Belarus is a member of the Eurasian Economic Union, which comes into force on January 1, 2015. The EU is Kazakhstan’s biggest trading partner and foreign investor. Bilateral trade between

the two countries is €31 billion, and the EU accounts for over half of foreign direct investment in Kazakhstan, according to a statement released by the EC on Thursday. Kazakhstan exports €24 billion worth of goods to Europe, with oil deliveries making up 7.5 percent, or €1.8 billion. The EU exports manufactured goods, machinery, and equipment to the landlocked ex-Soviet state. On Friday Nazarbayev with meet with heads of state from Russia, Belarus, Kyrgyzstan and Tajikistan in Minsk where they are expected to sign a document disbanding the Eurasian Economic Community (EurAsEC) signed in the 1990s in order to prepare for the Eurasian Economic Union, which will be the largest common market in the ex-Soviet sphere come January The Kazakh president has suggested establishing a free trade zone involving Russia, Azerbaijan, Iran, Kazakhstan and Turkmenistan; all bordering the Caspian Sea and oil-rich.

RUSSIA’S GAZPROM BUYS CHINA SURPASSES US AS WORLD’S EUROPE’S BIGGEST GAS STORAGE LARGEST ECONOMY BASED ON KEY FACILITY ussia will acquire Europe’s larg- nearby Netherlands. In 2012, it represented about est underground gas storage facil- one fifth of the Germany’s entire storage capacity. MEASURE ity this autumn from Germany’s The deal will help Gazprom get a footing in the


hina has surpassed the US in terms of GDP based on purchasing power parity (PPP), becoming the largest in the world by this measure, International Monetary Fund estimates

show. In 2014 China reached $17.6 trillion or 16.48 percent of the world’s purchasing-power-adjusted GDP, while the US made slightly less, 16.28

percent or $17.4 trillion, the FT reported citing IMF data. PPP is recognized as the best way to compare the size of economies rather than using volatile exchange rates, which rarely reflect the true cost of goods and services. Thus a trillion US dollars are worth a lot more in China than in the US. On the purchasing power basis, China is overtaking the US right about now and becoming the world’s biggest economy, according to the forecast. The US has been the global leader since overtaking the UK in 1872. Most economists previously thought China would pull ahead in 2019. According to IMF estimates, in 2015 the gap between China and the US will increase to almost a trillion dollars: Chinese GDP PPP will amount to $19.23 trillion against $18.286 trillion in the US. However in terms of a real GDP the United States remains the undisputed world leader with $16.8 trillion output, significantly outpacing China with $10.4 trillion.


BASF, continuing the development of its Nord Stream operations. In return, the Germans will get access to large gas reserves in Western Siberia. Gazprom and the Wintersall subsidiary of German chemical company BASF are putting the final touches to the asset swap, which will see Gazprom getting the facility in the small German town of Rehden, Deutsche Welle reported Wednesday. The framework for the deal was signed in December 2013 and was approved by the European Commission. Both the EU and Russia say the deal will not be sidetracked by sanctions. The storage facility in Rehden covers eight square kilometers, storing some gas at depths of 2,000 meters. It can hold 4.2 billion cubic meters of natural gas, or about 7 percent of Germany’s 60 billion cubic meters of annual consumption. In terms of sheer size the storage center is a crucial element in energy security both for Germany and the

gas market in Northern and Western Europe after opening its Nord Stream double pipeline that runs under the Baltic Sea to Germany. The twin pipes were launched separately, the first in 2011 and the second in 2012. “As a result, the exchange will significantly strengthen Gazprom’s position in the entire production chain, from raw materials, to realization, to final products for customers,” Gazprom said, as quoted by Vesti. BASFalso owns a 15 percent stake in Gazpron’s South Stream pipeline, which will deliver Russian gas to central Europe via the Black Sea and the Balkans. In 2013, Russian natural gas exports to Germany increased to 40.2 billion cubic meters (bcm) up from 33.3 bcm the previous year. It is common practice for Gazprom to use European gas storage facilities. It currently stores gas in Austria, the UK, Germany, Serbia, Latvia, Belarus, and Armenia.




he International Monetary Fund (IMF) has slightly lowered its outlook for global economic growth this year and in 2015, mostly due to continued weakness in Europe and lower growth in some emerging markets. The IMF lowered its forecast for global economic growth in 2014 to 3.3 percent from 3.4 percent. World growth should pick up to 3.8 percent in 2015, according to an IMF report. Fund economists suggest that global economic growth this year will be equal to the growth in 2013. They warn that current estimates of growth are “based on the assumption that the key drivers of growth in the advanced economies, including ... an easing monetary policy remain in force.” Another initial assumption is “reduction in geopolitical tensions” and at least some improvement in the “economies that are under stress.” Despite the setbacks, the unstable global economic recovery continues, IMF analysts say. In particular, they estimate that in developed countries, economic recovery is still slowed by the residual effects of the crisis, “including a high level of public and private debts.”

Continued decline in 2014 is projected only in Italy with minus 0.2 percent, but even there, it is forecast to be replaced by the rise to 0.8 percent next year. The main engines of growth in Western Europe are the UK with 3.2 percent and 2.7 percent and Germany with 1.4 and 1.5 percent in 2014 -2015. Russia is projected to end this year with only 0.2 percent growth and to expand by 0.5 percent in 2015. Meanwhile its BRICS counterpart China is projected to grow 7.4 percent this year and experience a small decline to 7.1 percent in 2015. The global lending organization has a more optimistic view of the US economy, which it expects will grow 2.2 percent this year. The forecast is a half percentage point higher than it was when the fund last updated its estimates in July. The 2015 forecast projects the country’s economy to grow 3.1 percent. The IMF also published its new estimates and forecasts for oil prices. The average level was projected to reach $102.76 per barrel in 2014, and $99.36 in 2015. To compare, in 2013 the figure was $104.07 per barrel.

he Fitch rating agency has downgraded Kiev’s long-term rating, as the Ukrainian capital failed to repay its domestic $87 million debt. The move could be classified as a “restricted default” if the city fails to settle bonds by October 10. The rating agency cut Kiev’s longterm foreign and local currency rating to CC from CCC, and its national long-term rating to BB from BBB, the statement says. Initially the review date for Fitch’s rating of Kiev was scheduled on October 10. But after the city announced a restructuring of domestic bonds and its failure to repay the scheduled tranche of 1.125 billion hryvnia ($87 million) on October 6, the agency decided to issue the reassessment before the date in order “to reflect adverse deterioration in its credit profile.” “Fitch considers Kiev’s recent inability to honor immediate refinancing needs as materialization

of significantly increased refinancing risk. The weakness of the domestic capital market puts additional pressure on the city’s already distressed ability to service its debt. The city will also be refinancing its two outstanding $250 million Eurobonds and 1.9 billion hryvnia domestic bonds coming due in 2H15,” the agency said in the statement on Tuesday. Fitch also “expects volatility in Kiev’s budgetary performance due to the lower predictability of potential fiscal changes as national parliamentary elections are scheduled on 26 October 2014.”



fter the hearings over the company’s appeal on October 6, 2014, the arrest of the company’s bank accounts and commercial reserves was suspended, and Lukoil began the procedure to start the Petrotel refinery,” TASS quotes Lukoil spokesman Vitaly Matushkin. On Monday officials at Lukoil’s Petrotel refinery said authorities confiscated raw materials, crude oil and products. Following the seizure, the refinery halted production and commercial activity. On October 2, Romanian police searched Lukoil’s refinery in the town of Ploiesti “as part of an in-

vestigation into tax evasion and money laundering that cost an estimated €200 million,” Romania’s National Anti-Corruption Department said. Prosecutors accompanied by armed police had seized Lukoil’s accounts and occupied the refinery, as TASS cites media reports.


PUBLICITY caucasian business week

October 13, 2014 #71

WORLD NEWS October 13, 2014 #71

caucasian business week




he ability to attract top talent is now the biggest concern for public relations agency leaders around the world, according to a survey conducted by The Holmes Report and the International Communications Consultancies Organisation (ICCO) as part of the World PR Report. The findings come after the World PR Report yesterday revealed that global PR industry optimism has rebounded, led by increasing marketing spend on PR and rising digital budgets — all of which is contributing to improved agency profitability. Despite the improved sentiment, certain challenges remain pressing, not least talent and overall communications budgets. Almost four out of 10 (39.9%) consultancy principals responding to our survey cited “staff recruitment” as one of the most significant challenges facing PR firms in their market. That was an increase over last year, when recruitment was second (36.9%) behind concerns about overall economic conditions (37.6%). Economic conditions were a less pressing concern this year, with just 25.8 percent identifying them as one of the three greatest challenges to their growth—although many (31.5%) continued to worry that clients are unwilling to commit sufficient funds to public relations.

But perhaps the most interesting development of the year saw a surge in marketing communication (53.6%) compared to corporate reputation (45.8%). Last year those two areas were seen as almost equal with corporate reputation slightly ahead (49.7%, compared to 46.4% who cited marketing communications). Marketing communications was strongest in North America (where it was cited by 60.5% of respondents), Eastern Europe (56.0%), and Asia (54.6%). The only regions in which growth in corporate reputation outpaced marketing were Latin America (47.1% compared to 35.3%); Western Europe (46.6% compared to 39.8%); and the Middle East and Africa (48.1% compared to 37.0%). Latin America was most bullish on public affairs (41.8%), some way ahead of Australia (36.6%), while developing markets such as Latin America (23.5%) and Africa and the Middle East (22.2%) were the biggest growth markets for corporate social responsibility. Australian firms, meanwhile, saw the by far most significant growth in investor relations and financial communications (27.3%), while Western Europe (15.5%) and the Middle East and Africa (18.5%) are the two regions where employee communication is making a significant contribution to agency growth. Looking ahead, agency principals expect digital to continue driving growth (77.8%), along with marketing communications (51.9%) and corporate reputation (52.2%). In terms of industry sectors, consumer products and technology were the two clear leaders globally—except in Australia, where healthcare was the biggest source of growth.

“The recession may be over in most markets around the world,” says Paul Holmes, publisher/CEO of The Holmes Report, “but many clients are still reluctant to spend on public relations, and agencies are feeling the pressure to deliver more for less.” The survey identified a number of concerns that may be contributing to that problem. The first is increased competition. This year, more than a quarter of responding firms (25.5%) cited competition from other marketing disciplines as a major obstacle to growth—that continues a steady increase from 22.9% of respondents in 2013, and 20.6% in 2012. Similarly, 22.8% cited competition from other PR firms as one of their toughest challenges, up from 18.2% in 2013 and just 15.5% in 2012. The second is the ability to master digital and other new technologies—although PR firms do appear to be rising to the challenge, as this issue was cited by 22.5% of respondents this year, compared to 25.2% last year. The third is measurement and evaluation. While this was cited by just 13.8% of respondents (down from 17.5%) last year, it seems likely that there is some correlation between the industry’s ongoing measurement problems and the unwillingness of clients to invest sufficient funds. Says Holmes, “If we were providing clients with convincing metrics to show that PR impacts their performance, we would surely be seeing higher levels of investment.” The fourth is client education. Around one in five (19%) suggested that client understanding of PR was a significant obstacle to growth, and an ever greater number (24%) worried that clients were too focused on the short-term. “The fact that talent is now the leading issue for PR agencies globally shows that growing pains are once again top of the agenda, while economic conditions have slipped down the list,” added ICCO chief executive Francis Ingham. “This is reassuring to some extent, but there is some concern over the growing pressures brought on by competition from other marketing disciplines - leading to this continuing reluctance from clients to spend on PR. “As the global PR industry’s talents become increasingly diverse, it is inevitable that competition with other disciplines will be an everyday experience — an interesting dynamic which I believe can only help us to hone our abilities.”

The consumer products sector was the number one source of growth in North America (where it was cited by 48.1% of respondents); Latin America (56.2%); Western Europe (47.6%); and Asia (59.4%). Technology was the top growth sector in the UK (56.5%) and Eastern Europe (52.0%). The two sectors tied (57.1%) in the Middle East and Africa. Healthcare was cited by 45.5% of firms in Australia. Agency forecasts, however, indicate a slightly different picture. Technology and consumer products remain the key drivers of growth over the next few years, but 49% of respondents point to healthcare as a source of growth over the next few years, compared to just 34% last year. GLOBAL INVESTMENT PLANS Last year, PR firms continued their investment in social media community management (68.9% listed that among their top three growth areas), multimedia content creation (37.1%), and digital build and production (26.2%)—but also in senior counsel (37.0%) and, somewhat surprisingly, media relations (35.1%). At the other end of the scale, research (7.2%) and professional development were the areas of lowest investment. Looking ahead, digital is likely to be the area of greatest focus: 52.7% expect to continue spending heavily on social media community management; 40.6% on digital production; and 38.9% on multimedia content. But there is also a surge of interest in measurement and analytics, which is likely to see the fourth highest investment in 2014, cited as a priority by 31.2%. Add in the number who expect to increase spending on insight and planning (20.1%) and other research (11.4%) and it is clear that data and analytics-related investment is on the increase.

GROWTH Increased spending on digital and social media remains by far the most significant driver of public relations agency growth around the world, with 69.5% of respondents identifying digital as one of their three top growth drivers (compared to 75.3% last year). Indeed, digital was top in every region around the world, most notably in the UK, where it was cited by 80.3% of respondents.

Other priorities for firms around the world include senior counsel (26.5%) and creativity (24.2%). Interest in expanding social media community management is strongest in the Middle East and Africa (70.4%) and weakest in Latin America (25.0%). Enthusiasm for digital build and production is highest in Eastern Europe (58.0%) and lowest in Western Europe (31.4%). And multimedia content production is a top priority in the UK (54.4%) but barely registers in Australia (9.1%). Senior counsel is a high priority in Australia (45.5%) and in Latin America (37.5%), while measurement and analytics garners the greatest interest in the most developed markets: the UK (41.3%) and North America (39.8%).


PUBLICITY caucasian business week

October 13, 2014 #71


TBILISI GUIDE October 13, 2014 #71

Embassy United States of America Embassy 11 Balanchivadze St., Dighomi Dstr., Tbilisi Tel: 27-70-00, 53-23-34 E-mail:; United Kingdom of Great Britain and Northern Ireland Embassy 51 Krtsanisi Str., Tbilisi, Tel: 227-47-47 E-mail: Republic of France Embassy 49, Krtsanisi Str. Tbilisi, Tel: 272 14 90 E-mail: Web-site: Federal Republic of Germany Embassy 20 Telavi St. Tbilisi Tel: 44 73 00, Fax: 44 73 64 Italian RepublicEmbassy 3a Chitadze St, Tbilisi, Tel: 299-64-18, 292-14-62, 292-18-54 E-mail: Republic of Estonia Embassy 4 Likhauri St., Tbilisi, Tel: 236-51-40 E-mail: Republic of Lithuania Embassy 25 Tengiz Abuladze St, Tbilisi Tel: 291-29-33 E-mail: Republic of Latvia Embassy 16 Akhmeta Str., Avlabari, 0144 Tbilisi. E-mail: Greece Republic Embassy 37. Tabidze St. Tbilisi Tel: 91 49 70, 91 49 71, 91 49 72 Czech RepublicEmbassy 37 Chavchavadze St. Tbilisi Tel: 291-67-40/41/42 E-mail: Web-sait: Japan Embassy 7 Krtsanisi St. Tbilisi Tel: +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: Republic of Bulgaria Embassy 15 Gorgasali Exit, 0105 Tbilisi, Georgia Tel: +995 32 291 01 94; +995 32 291 01 95 Fax: +99 532 291 02 70 Republic of Hungary Embassy 83 Lvovi Street, Tbilisi Tel: 39 90 08; E-mail: State of Israel Embassy 61 Agmashenebeli Ave. Tbilisi Tel: 95 17 09, 94 27 05 Embassy of Swiss Confederation’s Russian Federation Interests Section Embassy 51 Chavchavadze Av., Tbilisi Tel: 291-26-45, 291-24-06, 225-28-03 E-mail: Ukraine Embassy 75, Oniashvili St., Tbilisi Tel: 231-11-61, 231-12-02, 231-14-54 E-mail:; Consular Agency: 71, Melikishvili St., Batumi Tel: (8-88-222) 3-16-00/ 3-14-78 Republic of Turkey Embassy 35 Chavchavadze Av., Tbilisi Tel: 225-20-72/73/74/76 E-mail: Address: 8, M. Abashidze str. Batumi, Georgia tel: (8-88-222) 7 47 90 Republic of Azerbaijan Embassy Kipshidze II-bl . N1., Tbilisi Tel: 225-26-39, 225-35-26/27/28 E-mail: Address: Dumbadze str. 14, Batumi Tel: 222-7-67-00 Fax: 222-7-34-43 Republic of Armenia Embassy 4 Tetelashvili St. Tbilisi Tel: 95-94-43, 95-17-23, 95-44-08 E-mail: Web: Consulate General, Batumi Address: Batumi, Gogebashvili str. 32, Apt. 16

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

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

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

Restaurants RESTAURANT BARAKONI Restaurant with healthy food. Georgian-European Cuisine Agmashenebeli Alley 13th Phone: 555 77 33 77 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

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



PUBLICITY caucasian business week

October 13, 2014 #71