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Issue no: 922/66 • FEBRUARY 21 - 23, 2017 • PUBLISHED TWICE WEEKLY PRICE: GEL 2.50

In this week’s issue... FOCUS ON GROWING POTENTIAL From agro-Apps and empowering Local Action Groups to Startup seminars- it's been a busy week in PAGE 3, 8 & 9

Georgian President Visits Enterprises in Adjara to Promote “Buy Georgian” Campaign NEWS PAGE 2 Price & Prejudice on the Georgian Market for Cigarettes ISET PAGE 4 Startup Grind Hosts Ex- Google Software Engineer & Georgian Airways to Launch Direct Flights to Startup Expert London Gatwick PAGE 9 Georgian BY NINO GUGUNISHVILI Student Receives

ollowing on from the announcement that Hun- $160.000 gary's Wizz Air is to fl y direct from Kutaisi to London Luton from June, news very well-received Grant from USA by the expat community here in Georgia, is that 10 from March, Georgian Airways is launching SOCIETY PAGE Fdirect fl ights from Tbilisi to London . Flights will operate every Monday and Saturday. OSCE Permanent Council The negotiations to receive fl ight slots to one of the UK’s biggest airports began in the summer of 2016 and, as Givi Condemns So-called Davitashvili, General Director Georgian Airways, says, they expect customers to be interested in this itinerary. Referendum in Georgia’s "The company promises to offer comfortable travel from Tbilisi to London," Davitashvili said. Breakaway Tskhinvali In addition, Georgian Airways plans to launch Tbilisi - Prague fl ights from May. POLITICS PAGE 11

Prepared for Georgia Today Business by Markets Asof17ͲFebͲ2017 STOCKS Price w/w m/m BONDS Price w/w m/m BankofGeorgia(BGEOLN) GBP31.06 +0,5% +10,9% GEOROG04/21 105.50(YTM5.26%) Ͳ Ͳ0,6% GHG(GHGLN) GBP3.79 +10,4% +9,3% GEORG04/21 111.42(YTM3.86%) +0,0% Ͳ0,0% TBCBankGroup(TBCGLN) GBP14.43 Ͳ0,1% Ͳ0,1% GRAIL07/22 110.31(YTM5.51%) +0,6% +0,2% BGEOLN07/23 101.81(YTM5.66%) +0,2% Ͳ0,2% COMMODITIES Price w/w m/m CrudeOil,Brent(US$/bbl) 55,81 Ͳ1,6% +0,6% CURRENCIES Price w/w m/m GoldSpot(US$/OZ) 1234,60 +0,1% +1,4% GEL/USD 2,6395 +0,6% Ͳ0,9% GEL/EUR 2,7988 +0,2% Ͳ1,0% INDICES Price w/w m/m GEL/GBP 3,2742 Ͳ0,0% Ͳ1,0% FTSE100 7299,96 +0,6% +1,1% GEL/CHF 2,6362 +0,7% Ͳ0,8% FTSE250 18707,49 Ͳ0,0% +2,6% GEL/RUB 0,0453 +0,9% +1,1% DAX 11757,02 +0,8% +1,9% GEL/TRY 0,7272 +2,4% +2,8% DOWJONES 20624,05 +1,7% +4,0% GEL/AZN 1,4836 Ͳ1,7% +2,7% NASDAQ 5838,58 +1,8% +5,4% GEL/AMD 0,0054 Ͳ Ͳ1,8% MSCIEMEE 149,91 Ͳ0,8% +1,0% GEL/UAH 0,0977 +1,3% +1,6% MSCIEM 939,03 +1,0% +4,9% EUR/USD 0,9422 +0,3% +0,9% SP500 2351,16 +1,5% +3,7% GBP/USD 0,8057 +0,6% +0,0% MICEX 2128,21 Ͳ1,6% Ͳ2,3% CHF/USD 1,0026 +0,0% +0,1% MSCIFM 2581,63 Ͳ0,3% +2,2% RUB/USD 58,2915 Ͳ0,0% Ͳ1,9% GTIndex(GEL) 1177,93 Ͳ +0,1% TRY/USD 3,6309 Ͳ1,8% Ͳ3,5% GTIndex(USD) 887,17 +2,3% +5,1% AZN/USD 1,7837 +2,2% Ͳ3,3% GEORGIA TODAY 2 NEWS FEBRUARY 21 - 23, 2017 Georgia Participates Georgian President Visits in IBTM Arabia Enterprises in Adjara to Promote International Exhibition “Buy Georgian” Campaign

BY THEA MORRISON

s a part of the "Ask for Georgian” campaign, Geor- gian President Giorgi Marg- velashvili visited several enterprises in Georgia’s ABlack Sea Adjara region last week. Margvelashvili and the Chair of Adjara government, Zurab Pataridze, visited the BTM textile factory and furniture man- ufacturing company Gloria. The President once again called on the population to purchase Georgian prod- ucts in order to strengthen the country’s economy. “By purchasing Georgian products, we strengthen our economy, contribute to were held during the conference, while the stabilization of the national currency, to strengthen the country’s economy, movement KAR.GE and the initiative of BY NINO GUGUNISHVILI Georgia’s convention and exhibition Lari, and help the people employed in but to create jobs and overcome the photographer Goga Chanadiri, “Buy bureau introduced a new MICE cata- local enterprises,” the President said. existing monetary diffi culties. Georgian”. logue providing information on the The aim of the presidential campaign The President initiated the “Ask for The Presidential Administration reports he Georgian National new members (DMCs, PCOs, and “Ask for Georgian” is the promotion of Georgian” campaign on January 12. that they will continue promoting Geor- Tourism Administration Hotels). Georgian goods and products not only Through this initiative, he has joined the gian products in other regions of Georgia. (GNTA) participated in During the event, Georgia was named one of the world’s largest one of the most attractive destinations exhibitions, IBTM Arabia, for MICE tourism for the Arab states. inT Abu Dhabi, United Arab . The GNTA wants to continue their Georgian Wine Degustation in Stockholm Meetings with European companies efforts to attract visitors from the and private sector representatives Persian Gulf countries to Georgia.

Mikheil Janelidze Meets Romanian Foreign Minister

ongoing in the country and possibilities to expand political and economic co- operation between Georgia and Romania were also highlighted during the meet- ing. The Georgian Foreign Minister pro- vided Melescanu with information on the situation in Georgia’s occupied ter- ritories and on the so-called referendum planned to be held there. The Romanian Foreign Minister pledged his strong support for Georgia and wel- comed the progress the country has achieved in getting closer to NATO and ithin the framework the EU. The sides underlined the role of organized with the support of the Geor- seen as a basis for all future awareness- BY NINO GUGUNISHVILI of the 53rd Munich Georgia as a leader among Eastern Part- gian National Wine Agency, Sweden- raising activities of Georgian wine in Security Conference, nership countries, as well as in terms of Georgia Trade Board and the Embassy Scandinavian countries. Georgian Foreign participation in the NATO-led peace- of Georgia to Sweden. Through a private initiative and the Minister Mikheil keeping missions. eorgian wine producing The event was attended by the own- support of the Sweden-Georgia Trade JanelidzeW held a meeting with his Roma- Janelidze thanked his Romanian col- companies: Bagrationi 1882, ers of Swedish hotels and restaurants, Board, a Georgia-Sweden representative, nian counterpart, Foreign Minister Teo- league for the Romanian government’s Askaneli Brothers, Maran- wine importers and media representa- ‘Georgian Wine for Scandinavian Coun- dor Melescanu. strong support of Georgia’s sovereignty uli, Teleda, Giuaani, Kindz- tives. tries - GeoWine for Nordic,’ was founded The sides exchanged their views over and territorial integrity and invited him marauli Marani, Batono, Aiming at the promotion of Georgian in an effort to unite Georgian wine com- the bilateral relations between Georgia to Georgia. According to Melescanu, a GBG Wine, Dugladze Wines and Spirits, wine to the Swedish market, and at diver- panies for the interest of the Scandina- and Romania. Georgia’s energy and tran- high-level delegation from Romania will and Ikano were presented at the Geor- sifying Georgia’s export markets overall, vian market, which included Sweden, sit potential, infrastructure projects visit Georgia in 2017. gian Embassy in Sweden at an event the presentation of Georgian wine is Finland and Norway. GEORGIA TODAY FEBRUARY 21 - 23, 2017 NEWS 3 Minister of Economy of Georgia Boosting Partnership Potential at

Business Forum in Istanbul National Food Agency

BY NINO GUGUNISHVILI Suspends 11 Business Operators iorgi Gakharia, the Minister of Econ- BY THEA MORRISON omy and Sustainable Development of Georgia, addressed the partici- pants of the Georgia - Turkey- Azer- baijan Business Forum in Istanbul, eorgia’s National Food Agency has Turkey,G noting that the cooperation between the carried out a large-scale raid in Tbi- three countries is an excellent example of how lisi and suspended 11 businesses from neighboring countries can use their potential for operating, including three slaughter- the wellbeing of their populations. houses, four meat wholesale facilities, “It’s important for the Georgian government that Gthree catering facilities and an agricultural market. Turkish companies and companies from Azerbai- Moreover, 34 business operators were fi ned for jan fully benefi t from the investment possibilities various violations, including meat labeling viola- our country has to offer,” Gakharia said, going on tions and for selling meat of unknown origin. to mention the successful operations of a number Overall, the National Food Agency carried out of companies from Azerbaijan and Turkey in eco- 110 inspections and the monitoring of documents nomic sectors in Georgia. of 140 business operators, including 83 butchers. Investments from these two countries alone “Inspection will be carried out throughout the exceed $1.5 billion for the last fi ve years. Giorgi Gakharia at the Business Forum in Istanbul country in order to ensure the protection of con- During the forum, Gakharia met with the Minis- their economic potential, thus developing their tive tourist destinations of the two countries. sumer interests,” said Zurab Chekurashvili, Head ter of Economy of Azerbaijan and the Minister of economies faster,” Gakharia said. The Georgian Chamber of Commerce and Indus- of the National Food Agency. Science, Technology and Industry of Turkey, to Tourism was the major topic during the meeting try was responsible for organizing the participation “The Agency will pay special attention to perish- discuss the strengthening of economic cooperation of the Georgian Minister and Shahin Mustafayev, of the Georgian delegation at the business forum able food - meat and meat products, milk and dairy in the region. Minister of Economy of Azerbaijan, which saw them in Istanbul, exploring the three-country coopera- products, to verify their compliance with the “It is vital that, through cooperation, the neigh- discussing the possibility of creating Georgian and tion possibilities in railway, tourism, pharmaceu- requirements of the technical regulations,” he boring countries bring the power of synergy to Azerbaijan touristic routes, linking the most attrac- ticals, medical and other sectors. added. Dutch-Geo Traktor App & Geocell Mobile Phone Purchasing Campaign to Boost Farmer Learning

government plan on how to expand and modernize the Ministry of Agriculture, although it is poignant Georgia's most important industry has been forth- that the government has failed and responsibility coming. It is hardly surprising that such a revolu- to push the country forward has fallen with the tionary project as Traktor has been endorsed by NGO and private sectors.

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600,000 times. BY TIM OGDEN Access to modern knowledge would have little impact without access to modern supplies, and so Traktor has established its own order service for he vast majority of people in Georgia both domestic and foreign products which can be still work in agriculture, and farmland either delivered or collected. During Traktor's offi - accounts for much of the country's cial unveiling, a live test of its delivery process was territory. However, many Georgian carried out with a package being sent to the pres- farmers still work in a pre-industrial entation, demonstrating the ease and effi ciency of Tenvironment, with little to access to modern equip- its system. Payment for Traktor products is even ment and seeds, and little knowledge of modern possible through Georgia's extensive PayBox system. farming methods. Yet the initial brilliance of the app seemed to be Enter Traktor, an app launched by a joint Dutch- made almost redundant by the fact that just 30% Georgian team (with assistance from the Millen- of Georgian farmers have access to the internet, nium Challenge Corporation, ENPARD and USAID) and the farming community has been proved to be aimed at modernizing agriculture throughout the one of the poorest in the country; access to mobile country. Through the app, Georgian farmers have phones capable of running modern applications is access to an amount of quality information and naturally rather limited in comparison with wealth- supplies hitherto unavailable. ier, urban populations. Despite being the most common occupation Rising to the challenge, Traktor overcame this throughout the country, many Georgian farming diffi culty by partnering with Geocell, the country's methods are outdated and farmers have had little largest mobile network provider. For farmers who access to modern methods or programs through sign up to the Traktor project, Geocell will allow which to learn. To combat this, Traktor has put farmers to purchase modern mobile phones for together over 50 instructional videos for Georgian monthly payments of between just nine and eight- farmers on the best modern farming practices, een GEL (approximately $3-$6). featuring agricultural experts from Georgia and Agricultural reforms have proved to be challeng- abroad; so far, the videos have been viewed over ing for the Georgian government, and no coherent Mnatobi str. 41a, Tbilisi, Georgia / +995 32 2910009 / +995 577 763685 / www.hotelthefamily.ge / [email protected] GEORGIA TODAY 4 BUSINESS FEBRUARY 21 - 23, 2017 THE ISET ECONOMIST A BLOG ABOUT ECONOMICS AND THE SOUTH CAUCAUS www.iset-pi.ge/blog

The ISET Policy Institute (ISET-PI, www.iset-pi.ge) is an independent think-tank associated with the International School of Economics at TSU (ISET). Our blog carries economic analysis of current events and policies in Georgia and the South Caucasus region ranging from agriculture, to economic growth, energy, labor markets and the nexus of economics, culture and religion. Thought-provoking and fun to read, our blog posts are written by international faculty teaching at ISET and recent graduates representing the new generation of Georgian, Azerbaijani and Armenian economists. Price & Prejudice on the Georgian Market for Cigarettes

BY GIORGI MZHAVANADZE

Table 1: Excise tax on cigarettes. Source: Tax Code of Georgia enjamin Franklin once said, “In this world, nothing can in Georgia) for easily increasing budget Knowledge Synthesis” analyzes 108 exist- be said to be certain, except tax revenues . ing studies on the linkage between taxa- death and taxes.” Yet we have Can the government really kill two tion and smoking behavior for different a tax that could prevent hun- birds with one stone – i.e. increase the subgroups of population. The authors Bdreds of millions of premature deaths. health of the nation AND fi ll the budget concluded that raising cigarette prices It is time to use it more effectively. -Prab- coffers with extra money? Let’s look at through increased taxes is an effective hat Jha how well the excise tax has been help- policy measure for youth, which is two to It is a truth universally acknowledged ing in both areas so far. three times more price-responsive than that cigarettes are bad for human health. the general population. They conclude Source: Ministry of Finance of Georgia Yet whenever the government tries to BUDGET that increase prices reduce smoking par- regulate the consumption of cigarettes cost. This means that a consumer does added - it constituted 5% of the retail According to the budget plan 2017, ticipation, consumption of cigarettes, and by increasing their price, it gets a very not directly pay the tax, but that the bur- price (10% from 2016). From the begin- increased excise tax rates on fuels, cars, smoking initiation among youth. mixed reaction from the public. Some den initially falls on the producer, who, ning of 2017, a minimum of 187 Tetri and cigarettes will together accumulate Less pronounced but still strong effects people (mostly non-smokers) welcome by including it in the product price, (specifi c + ad valorem component) is a an additional 597 million GEL tax receipts, are observed in the case of young adults these policies, while others accuse the passes the tax on to the consumer. Typ- pure excise tax component in the price of which about 200 million GEL will be and persons with low socioeconomic government of being greedy and pro- ical examples of excise duties are taxes of fi ltered cigarettes. collected from cigarettes. This ambitious status. However, the main concern with claim the policies ineffective. Who is on alcohol, cigarettes, drugs, fuel and projection is pretty realistic considering lower-income individuals is about fair- right and who is wrong in this debate? gambling. In addition to these, even can- WHY DID GEORGIA the previous dynamics of tax receipts ness of excise tax. Some literature sug- Let’s take a closer look at the facts. dies, soft drinks and other products INCREASE EXCISE TAX? – from 232 million GEL in 2011 to 549 gests that cigarette tax is regressive tax containing sugar are objects for excise There are a number of reasons behind million GEL in 2016 (see the table). on the poor. In other words, the share BACKGROUND tax in some countries. the recent hike in excise tax on cigarettes. of money paid on excise tax in their dis- On January 1, 2017, Georgian tobacco In general, excise tax on cigarettes First, according to government repre- CONSUMPTION posable income is much higher than the smokers faced the fi fth tax hike on ciga- comprises two components: a specifi c sentatives, the main aim is to improve We can make a judgement about the same indicator for high-income persons. rettes in the last fi ve years. This time, component, expressed as a fi xed amount public health outcomes by affecting consumption of cigarettes based on the In addition, studies propose that because the excise tax was increased by 60 Tetri per cigarette pack; and an ad valorem consumption of cigarettes through higher quantity of excise stamps sold by the people of lower socioeconomic status per pack of fi ltered and by 30 Tetri per component, expressed as a percentage prices. Second, Georgia is obliged to government (typically, one excise stamp have higher smoking rates, they pay more pack of non-fi ltered cigarettes. of the product’s retail price. In Georgia, increase control on tobacco consump- translates into a pack of cigarettes sold). tobacco tax per capita than those with By defi nition, an excise tax is an indi- the fi rst increase of excise tax on ciga- tion in accordance with international Looking at the quantity of stamps sold higher incomes. rect tax charged on the sale of certain rettes happened in September 2013; from arrangements . Third, excise tax is sim- between 2015 and 2016, we can clearly In other words, smoking addiction may goods, which usually have a high social July 2015, an ad valorem component was ply a good source (maybe the only way see a reduction in consumption of be contributing to a vicious cycle that imported fi ltered cigarettes (the most keeps poor people in poverty. This could expensive group on the market). The be a problem for Georgia as well. quantity of domestic fi ltered cigarettes has also declined. However, the amount IS THE GOVERNMENT KILLING of domestic non-filtered cigarettes TWO BIRDS WITH ONE STONE? increased, despite the substantial, in The answer to our initial question appears percentage terms, price hike (see the to be yes: graph). • the government of Georgia has suc- Clearly, some smokers reacted to the cessfully reduced consumption of ciga- price hike by substituting away from rettes - the total number of excise stamps more expensive fi ltered (domestic and granted by Ministry of Finance reduced foreign) cigarettes towards cheaper non- by 11.8% in 2016 compared to 2012, which fi ltered domestic ones. is a 62 million cigarette’s pack reduction This is not good news for the govern- of consumption. Although the effect on ment, given that non-fi ltered cigarettes health may be as clear, since there is are also lower quality and more danger- some substitution from higher quality ous for health. cigarettes to lower quality ones). Moreover, despite the fact that people • The government tax receipts from are now consuming fewer foreign ciga- cigarette excise tax increased signifi - rettes, so far we have not seen a reduc- cantly (from 232 million GEL in 2011 to tion in the value of cigarette imports. On 549 million GEL in 2016). the contrary, import values increased Yet, before celebrating victory, the Source: Revenue Service from 90.2 million USD in 2012 to 101.4 government should keep in mind several million USD in 2016 (without consider- things: First, increased prices have to be ing the exchange rate effect). accompanied by strategies to mitigate Yet, an increase in cigarette price may any adverse consequences on the low have a silver lining for domestic produc- socioeconomic status population and ers. The export of cigarettes sharply heavy and/or long-term smokers. Sec- increased from 5 thousand USD in 2012 ond, more aggressive control of contra- to 10.4 million USD in 2016. band cigarettes is needed to make tobacco This may indicate that higher produc- taxation more effective in the future. tion costs are forcing domestic produc- Third, the government should keep in ers to compete in a higher price range mind that once the price hike reaches a and improve the quality of their products. certain level, the tax revenues from The positive side effect of this is the cigarettes may start to drop. increased export potential of locally The last point will be a real test of the made cigarettes. government’s resolve to keep the pres- sure on cigarette prices. And for the sake DOES CIGARETTE PRICE of society’s health, let us hope that the AFFECT BEHAVIOR? government’s actions will echo the sen- It is interesting to look at the literature timent of the former New York City that studies the effects of the excise taxes mayor Michael Bloomberg, who once on smoking behavior. One paper “Effects said “If it were totally up to me, I would of Tobacco Taxation and Pricing on Smok- raise the cigarette tax so high the reve- ing Behavior in High Risk Populations: A nues from it would go to zero.” Source: Geostat, Tax Code of Georgia GEORGIA TODAY FEBRUARY 21 - 23, 2017 BUSINESS 5 What Can We Expect from Georgia’s New Lottery Operator?

ack in October 2016, the Min- to a country such as the UK which has istry of Finance put out a call one of the leading lotteries in Europe, to international lottery oper- online gaming has helped the game fl our- ators. Following the privati- ish in recent years. zation of the Georgian Indeed, through a combination of inno- NationalB Lottery in 2009, two companies vation, investment and regulation, iGam- have since been in charge of the draws. ing is extremely buoyant in the UK, and First to step up and take control was the there are certainly some lessons to be Georgian Lottery Company (GLC), before learned for any operator that takes charge the postal service came and took over of the Georgian National Lottery. The in 2011. fi rst and most obvious is access. As well Despite almost six years of successful as offering tickets in stores and online, service, the government decided in 2016 players of the UK Lotto can now play that a new company should come in and via their mobile devices. In addition to try to replicate the success that other picking numbers for individual draws, national lotteries have enjoyed in recent mobile lottery players can set up regular years. With this in mind, international payments, save their favourite combina- operators were given the chance to sub- tions, and check their results via their mit proposals along with a $5 million mobiles. bank guarantee by December 12, 2016. MORE WAYS TO NEW OPERATOR COULD USHER PAY MEANS MORE IN EXCITING INNOVATIONS WAYS TO PLAY With the bidding process now complete Another interesting inno- and ministers poring over the proposals, vation UK iGaming has that credit cards are still not a standard online betting options. Again, looking it won't be long until we're given an developed in recent years method of payment. With this being the at the UK, players can go online and indication of which company will take is a universal payment case, some form of alternative payment buy-in to the weekly draw and then play charge of our national lottery. As with method. When people method for prospective lottery players games such as slots and blackjack. any takeover, some changes are bound either can't or won't pay would likely make the game more pop- By grouping the lottery with other to happen. But what could that mean for by standard methods such ular with the general public. online betting options, operators have players across the country? as a credit card, some been able to increase participation and, One of the major areas of development online gaming operators GEORGIAN LOTTERY HAS therefore, increase jackpots. One of the in the lottery industry over the last fi ve offer a "pay by phone" A CHANCE TO BECOME A main reasons the Ministry of Finance of years has been the advent of online and method. For example, on MAJOR FINANCIAL ASSET Georgia is looking for a new lottery mobile betting. Although players have the mobile slots site Mr. Finally, when the new lottery operator operator is to increase tax revenue. With been able to play via GLC's ebetting.ge Spin, players can deposit by phone up Despite recent innovations in the world does take charge, we could likely see a this in mind, any company that comes portal in the past, it's likely that the new to a maximum of £10. The benefi t of this of Georgian fi nance - such as Bitcoin host of new games built up around the in will likely be looking to learn a thing operator will bring in their own online is that the deposit is charged directly to company Bitfury exploring new payment main draw. Although any gaming options or two from countries such as the UK services. In many respects, this could their mobile phone contract (or pay as options within the country – paper money would fi rst have to be cleared by the in a bid to make the Georgian lottery make lottery gaming a lot more effi cient you go credit), and they don't need to is still king. In fact, travellers coming government, many international lotter- both modern and appealing to all play- and, potentially, more varied. If we look input any personal information. from foreign countries are often advised ies are part of a much larger stable of ers.

WWelcomeelcome ttoo IIndianndian PPunjabiunjabi RestaurantRestaurant SSanjhaanjha CChulhahulha 1

Mobile +995 596 56 13 13 Phone +995-322-95-96-14 Skype: SANJHA CHULHA Facebook: sanjha chulha indian restaurant mail: [email protected] Website: Sanjhachulha.ge Agmashenebeli Avenue 130, Tbilisi 0112 Georgia Delivery service areare availableavailable GEORGIA TODAY 6 BUSINESS FEBRUARY 21 - 23, 2017 S&L Hotel & Tourism in Georgia Luckily, I found Levan Matsiashvili who both for businessmen investing in the INTERVIEW BY NINO has 12 years’ experience in the sphere. sphere and for the people working and GUGUNISHVILI employed in it. Often, taxes are so high FROM YOUR EXPERIENCE OF that for a person owning or renting a OPENING THE HOTEL, WHAT property, or willing to open a hotel, it’s ourism is booming in Geor- ARE THE MAJOR ISSUES just not profi table. Perhaps a stimulus gia, as is hotel construction. THAT NEED TO BE WORKED would be to free such people from taxes S&L is one such new hotel. ON IN THE SECTOR? or at least decrease taxes for a certain Opened on Svanidze Street, Gaioz: First and foremost, I’d say ser- period of time… Tbilisi, in close proximity vice. You can’t imagine how hard it can Tto Vake Park and Turtle Lake (Kus Tba), be to fi nd a professional housekeeper or WHAT DISTINGUISHES S&L it claims to offer the best service to its cleaner. The level of service in Georgia HOTEL FROM OTHERS? future clientele, with 17 rooms of stand- is, unfortunately, very low, and the rea- Gaioz: We try to treat each and every ard, comfort and luxe type with balco- son for that is unprofessionalism, which, client as our personal guest, providing nies, plus a swimming pool and sauna, I think, lays in the lack of vocational them a family-friendly atmosphere, and with an equipped gym soon to be added. training courses for people who want to offering an individual approach to any- GEORGIA TODAY met the hotel owner, work in a hotel. It’s a specifi c job and one who decides to stay with us. Being Mr. Gaioz Kardava, a Russia-based Geor- needs to be learned just like any other. competitive means offering top quality gian businessman, and Levan Matsiash- The quality of service is the most essen- service. The price and the service the vili, the hotel manager, to fi nd out about tial thing, though, as in order for a small, hotel provides need to complement each the concept of S&L Hotel and their ambi- family-type hotel to succeed, the owners other and be right. In my opinion, fam- tion to make it one of the best places for should not be oriented solely towards ily-type hotels are more in demand today. tourists to stay at in the city. profi t; the focus should be on gaining We try to offer a relatively low price but clients and serving their needs. We’ve a top quality service to our potential WHY DID YOU DECIDE TO been taking feedback from our guests, customers. In smaller hotels like this OPEN A HOTEL IN TBILISI AND and using their suggestions, concerns one, it’s easier to constantly improve WHAT SEGMENT OF CLIENTS and comments to help us improve the your service, pay attention to each of DO YOU PLAN TO TARGET? service we offer. your guests and to supervise the work Gaioz: I built this house some nine or Levan: Although tourism is becoming of your employees. At our hotel, we can luxe rooms; we have family suites; we ist segment as an example, many of the ten years ago, and rented it out. My fam- one of the priority directions for our plan sightseeing tours for visitors which have a winter garden and terraces, a sauna, tourists who were previously traveling ily and I have been living in Russia for country’s development, there are still we organize through our own tourism swimming pool and a gym. We have con- to Egypt or Turkey now often consider 32 years; but I decided to transform my too many problems in the sphere. Hotel agency. I would like this hotel to be the cierge service and a 24-hour desk, and Georgia as a holiday destination, and Georgian property into a hotel. Although management, guide services, transport; place I’ve always imagined- the kind I’d staff members who can help to carry lug- that’s probably one of the reasons. I’ve never worked in the hospitality and these are the sectors that defi nitely need want to stay in myself. We’re now in the gage, if necessary. We’re proud to have tourism business before, I can’t say it to be improved. There are hundreds of process of negotiations with an insur- had very good reviews so far. WHAT SEASON DO YOU was something unplanned or something fantastic resorts and places in Georgia ance company and will soon be offering THINK WOULD BE BUSIEST I didn’t think through carefully. However, that still have no infrastructure to enable insurance to our guests. I hope this will WHY DO YOU THINK THE FOR YOUR HOTEL? there were number of challenges I visitors to reach them by car. As for the be taken as an indication of how much TOURIST NUMBERS ARE Gaioz: I hope we can say our work was encountered on the way. It was diffi cult hotel industry itself, in my opinion, the we care about our clients. UP FOR GEORGIA? successful enough that we’ll be packed to fi nd the right employees for the hotel. State needs to create better conditions Levan: We have standard rooms and Gaioz: If we consider the Russian tour- all year round, we’ll see…

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BY TIM OGDEN

oreign military aid in the form of military training and surplus equipment was given to Geor- gia in abundance after Presi- dent Saakashvili rose to power inF 2003, and the fl ow was not stemmed after the 2008 war against Russia; on the contrary, it increased. However, not willing to be solely reli- ant on arms from overseas, the Ministry of Defense (MoD) ordered its produc- tion wing, STC Delta, to begin producing domestically-designed weapons, muni- tions and armored vehicles. Delta began as a wing of Tbilisi Aircraft Manufacturing, a factory that produced droves of planes during the Soviet era but was unable to maintain its output as Georgia became independent and entered a decade of economic turmoil and civil strife. During this time, Delta itself primarily only produced RPG-7 anti-tank weapons (an infamous Soviet design now mostly associated with terrorist groups due to its prevalence on the black market), which saw use in the civil wars of 1992- 1993 and 1998. In 2010, the MoD drastically increased Delta's funding, and within a year the fi rst members of the Didgori family of armored vehicles had been produced. its M4 service rifl e to its allies is its production line, Delta did not abandon with the exception of Saudi Arabia; the country's wine production in Kakheti. Designed to fulfi l the role of armored abundant supply; after the US Army all small arms production, and continues Riyadh signed a contract worth $40 mil- Despite the eastern region of the coun- reconnaissance, several variants have bought the M4 design from Colt out- to make sniper systems and heavy-cali- lion to purchase more than 100 Didgori try producing the bulk of Georgia's been produced, including a command right in 2009, other companies (mostly bre anti-material rifl es. It even designs variants. famous wines, it is racked by stormy and control vehicle and a heavily-plated in the United States, but also in and produces its own optics for the It is quite possible that Delta's produc- weather in the spring and summer months, medical evacuation wagon. A year later, and Turkey) are now free to produce weapons, saving the MoD signifi cant tion could undercut Western fi rms (espe- and hail can be incredibly destructive Delta showcased its fi rst Infantry Fight- the weapon. Naturally, this availability amounts of money on importing scopes cially with its armored vehicles and to crops. Delta-produced chemical rock- ing Vehicle, the Lazika, which is hoped does not extend to modern armored and sight systems. In addition, in recent anti-material rifl es), selling similar prod- ets are fi red from launchers dotted around to eventually replace Georgia's ageing vehicles, although Delta did fl irt with years the Georgian Armed Forces have ucts of comparable quality; Georgia could the region, which detonate within storm Soviet APC fl eet, and fi ll a gap left by the idea of producing its own M4 vari- started using domestically-made helmets see a signifi cant boost to its economy if clouds. These dissipate chemicals that foreign donations; as willing and able ant in 2012. However, production of the and body armor, all produced by Delta. Delta is able to become a competitor to disrupt the formation of hail, and instead Georgia's Western allies are to supply it G5 carbine was ultimately canceled due Delta has also managed to have an FN, HK, Barrett, Colt and Remington. induce rainfall. These rocket systems with surplus rifl es and light vehicles, to the vast number of M4s being granted impact on the Georgian economy by However, arguably Delta's greatest have proved to be so effi cient that they few NATO APCs and IFVs have been to Georgia, with Delta's budget and time securing the sale of its armored vehicles contribution to Georgia so far has had have even attracted the attention of agri- given. better spent on other, more pressing abroad. While having made ten deals little to do with defense or economics. cultural experts in the United States, Indeed, a main reason the United projects. with foreign countries, the details of the Agriculture remains the largest compo- who are currently reliant on aircraft to States has given such vast quantities of Yet despite the G5 never reaching the benefactors are classifi ed at this time, nent of Georgia's economy, especially accomplish the same goal. GEORGIA TODAY 8 BUSINESS FEBRUARY 21 - 23, 2017 EU Promotes Best Rural Development Practices in Georgia

he European Union has fi nalized a rural development in the region. This included series of study tours to the regions tourism development projects in Bakuriani and of Georgia for representatives of local forest restoration in Tsagveri. governance, business and civil soci- The Borjomi Local Development Group was ety. The study tour to Borjomi on established in November 2015 with assistance 18-19T February followed earlier tours to Lagodekhi from the European Union and in cooperation with and Kazbegi and aimed to share the experience Mercy Corps, Angus Council and the Bundesan- of Local Action Groups (LAGs) that work to engage stalt für Bergbauernfragen. The group lists up to local residents in rural development. 25 members and takes active part in municipal The Borjomi study tour involved over 40 par- life. ticipants from different regions of Georgia and The Local Action Groups (LAG) in Borjomi, was attended by government offi cials, including Lagodekhi and Kazbegi are the fi rst of the pilot Nodar Kereselidze, First Deputy Minister of Agri- LAGs in Georgia. The European Union will con- culture; Irakli Matkava, First Deputy Minister of tinue supporting the establishment of the Local Regional Development and Infrastructure; Nino Actions Groups this year in the municipalities of Javakhadze, Deputy Minister of Economy and Dedoplistkaro, Akhalkalaki, Tetritskaro, Keda and Sustainable Development; and Tamaz Marsagish- Khulo. vili, Deputy Minister of Education and Science. The assistance to the Local Actions Groups In the framework of the European Union's Neigh- (LAGs) is in line with the Rural Development borhood Program for Agriculture and Rural Devel- Strategy of Georgia adopted by the Government opment (ENPARD), the study tour was organized of Georgia in December 2016. by the United Nations Development Program The EU is supporting rural development in (UNDP) and the Ministry of Agriculture of Geor- Georgia through its ENPARD Program. Imple- gia, in cooperation with the Civil Development mented in 2013 with a total budget of EUR 102 Agency (CiDA) and international non-govern- million, the main goal of ENPARD is to reduce mental organization Mercy Corps. rural poverty. The fi rst phase of ENPARD in Geor- In Borjomi, the study tour participants met with gia focused on developing the potential of agri- the local authorities and Local Action Group culture. The second phase focuses on creating members and visited the sites of small initiatives economic opportunities for rural populations that funded by the European Union in 2016 to promote go beyond agricultural activities. GEORGIA TODAY FEBRUARY 21 - 23, 2017 BUSINESS 9

Adam Dingle and Colin Donohue talk startups Startup Grind Tbilisi Hosts Ex-Google Software Engineer & Startup Expert

people who clicked on us, only around 1,000 came INTERVIEW BY KATIE RUTH DAVIES back regularly and knew what we were and what we could do. Another mistake was that we tried to go too big, too soon. In retrospect, we should have n February 16, Colin Donohue, the started out just covering our own city, and expanded Tbilisi Director of Root Deeper Mar- from there. When you start a company, you should keting, held a “fi reside” chat with start small, build your base, then expand. startup expert and ex-Senior Software Engineer at Google, Adam Dingle. WHAT OTHER ADVICE DO OPresent in the audience was a plethora of young YOU GIVE THOSE WANTING Georgians eager to learn more about what it takes TO START A BUSINESS? to set up and maintain a new enterprise. The event Well, the youth I’ve met in Georgia seem smart, was held within the frames of the Google-sponsored educated. Some speak excellent English- the abso- global community ‘Startup Grind,’ designed to lute foundation for communicating with the West. educate, inspire, and connect entrepreneurs. So for that, I tell them to speak as much as possible, Adam Dingle is a software architect and entre- and travel. Maybe even try to work for a foreign preneur based in San Francisco, California, with a company to broaden their experience and perspec- diverse experience in high tech. From 1994-96, he tive. They should educate themselves- use the taught computer science at Charles University in internet. And if they read only one book, let it be Prague. From 2002 to 2006 he worked as a Senior Startup Playbook by Sam Altman, an American Software Engineer at Google when it grew from entrepreneur, programmer, venture capitalist and roughly 550 employees to 9,000 and went public. president of Y Combinator. The book takes about At Google, he worked on various products includ- an hour to read and can tell you everything you ing Google Desktop, Firefox (and planning for need to know about startups- what to do, what not Chrome), and served as Technical Lead for Google to do, based on mentoring thousands of entrepre- Toolbar. After Google, he moved into his own neurs. startup work, founding Parking Hero as well as the What else? Well, I’d say it’s essential to hire smart. open-source Yorba Foundation, and more recently It takes time and effort. But you, as the hirer, have Roundtown, an event aggregator. to be selective and careful- the cost of a bad hire GEORGIA TODAY sat down with Adam Dingle is very high. You need to be conservative about before the talk to fi nd out more. who you hire. The ideal candidate needs to be: 1) Sharp- gets it quickly, deeply understands what HOW DID YOU COME TO BE you’re asking of them. IN GEORGIA AND WHAT ARE 2) Smart- educated, seeks to self-improve. YOUR IMPRESSIONS? 3) A good communicator. Georgia is a fascinating mixture of old and new: I’d also say it’s important to make a product that you’ve got crumbling buildings that probably look a few people love, over making a product that a lot exactly like they did in the 60s, that 1980s metro, of people “just like.” People who love something and hidden cafes, stylish stores and restaurants. I are more likely to tell others about it. lived in Prague for three years in the 90s; I moved A last point is to fi nd mentors who have been there a few years after the revolution when things through the fi re, and learn from them so you avoid were in rapid transition. Here in Georgia, you can making the mistakes they made. feel some echoes of that. I came to talk at this event at Colin’s invitation- WHAT WOULD YOU SAY GEORGIA we’ve been friends for years. Plus, I have a fascina- NEEDS MORE OF TO MAKE A tion both with Eastern Europe and technology. SUCCESS OF THE STARTUP SECTOR? That led me to Startup Grind and to meeting Geor- In the two weeks I’ve been here, I’ve seen a real gian startups. hunger for connection with Western Europe and the US, which is very wise- in isolation you can WHAT DO YOU THINK OF THE only do so much and the Georgian market it’s small GEORGIAN STARTUPS YOU’VE at 4 mln people. Georgia, among EU countries, is SEEN OR HEARD ABOUT SO FAR? still seen as relatively poor. It needs more exports, People are doing the right things. The entrepre- more things to sell to the rest of the world. There neurs here seem sharp. It’s still a small community, should be more public-private partnership. There and the government program Startup Georgia is is a lot of potential. Salaries are still very low, com- good to encourage more innovation in this direc- bined with low talent, and other countries have tion. And it refl ects what other governments have taken advantage of such a situation in different tried to do- I remember Startup Chile- offering ways. China, , India all have that to some $50,000 to any US startup that moved to Chile for degree- China exported the service of building at least nine months. Even in the US, the home of physical products, India has its call centers, Ukraine big internet companies, the internet was originally exported a lot of software development. For Geor- created with state-funding back in the 1960-70s. gia, a model where technology is exported, or where There’s defi nitely a role for the government to play there is cooperation with Western companies who in nudging private enterprises. outsource operations in Georgia, would be ideal. My last startup, Roundtown.com, had at its peak TELL US ABOUT YOUR MOST eight employees. For the cost of hiring those eight, RECENT STARTUP we could have hired maybe 30 in Georgia. The I founded Roundtown.com, based in Massachusetts challenge is communication. To someone in the near Boston, with my cousin. It lasted three years. US, Georgia sounds very far away. Even in a big Our goal was to list every event happening anywhere city like New York, maybe only 1 in 3 could say on the planet- from concerts to sports. It took us a which country Tbilisi is in. Building bridges is year to develop before launching. You start out opti- essential for any kind of economic leverage. mistic- and that passion is key to getting it going and keeping it going- even though statistics are high Adam was educated at Princeton and UC Berkeley, that you’ll fail. And we did. We watched the metrics- and is a passionate believer in sharing knowledge. The after two years I thought we were doing pretty well effect of this can be seen in the successes of his students, as visitor numbers seemed to be going up, but it including the blossoming of a student project he led as turned out they were mostly one-off visitors. We professor at Charles University into NetBeans, a Java didn’t have enough visitor traction- of millions of IDE which Sun purchased in 1999. GEORGIA TODAY 10 SOCIETY FEBRUARY 21 - 23, 2017 Georgian Student Receives $160.000 Grant from USA BY THEA MORRISON

talented and successful student of Georgia’s Pri- Art Palace vate Demirel College, Luka Demetrashvili, is to con- tinue his studies in the Showcasing AUnited States. Luka will study at the Manhattan Col- lege, where he will continue his educa- Private tion in the fi eld of medicine. Luka was awarded the Presidential Scholarship, which amounts to $160,000 Collection over four years. His goal as a student in the United States is to demonstrate his abilities of Picasso, and become a neurosurgeon. Regarding his choice, Luka says, “Man- hattan College is a Liberal Arts College, Kandinsky & a private university of free science. While choosing the university, I paid attention to the qualifi cation of its teach- Other Greats ers and the infrastructure. I also got interested in the sports activities there. painter Gigo Gabashvili opened at Art I think from the proposed colleges, I BY NINO GUGUNISHVILI Palace, Tbilisi, on February 18. chose the best!" The artworks belong to the private Luka is currently in his fi nal year of collection of Davit Kobakhidze, a US school. He received primary education n exhibition of the works based art collector, and were bought at in Skhivi Lyceum and has been study- from some of the world’s the Sotheby’s, Christie’s and other famous ing at Private Demirel College since most prominent artists: auctions over time. Grade 7. Luka is actively involved in Pablo Picasso, Wassily Kan- The exhibition at Art Palace, 6, Karga- various school activities, and he believes dinsky, Franz Roubaud, reteli Street, Tbilisi, is open for one that his success is directly linked with AMaximillien Luce and the Georgian month. the education he received in Georgia. GEORGIA TODAY FEBRUARY 21 - 23, 2017 POLITICS 11

ROUTING FLIGHT NUMBER WEEK DAYS DEPARTURE ARRIVAL TK 387 05.50 07.25 TBILISI - TK 385 11.45 13.25 ISTANBUL ATATURK AIRPORT TK 383 18.10 20.00 EVERYDAY TK 386 01.40 04.55 ISTANBUL ATATURK AIRPORT - TK 384 07.30 10.50 TBILISI TK 382 13.55 17.15 TBILISI - TK 381 07.40 09.00 ISTANBUL SABIHA GOKCEN AIRPORT EVERYDAY ISTANBUL SABIHA GOKCEN AIRPORT - TK 380 20.45 00.10+1 TBILISI BATUMI - ISTANBUL TK 393 17.50 19.10 EVERYDAY ISTANBUL - BATUMI TK 392 13.55 16.55 Tel: (995 32) 2 45 08 08 10 Galaktion Street E-mail: [email protected] OSCE Permanent Council TIFLIS KIS TARIFESI 7.5x6cm ING.indd 1 02/11/16 15:23 Condemns So-called Referendum in Georgia’s Breakaway Tskhinvali

Stoltenberg: NATO Committed to Georgia’s Security, Territorial Integrity reforms,” Stoltenberg stated. BY THEA MORRISON The NATO Sec. Gen. also talked about the recent developments in the region and criticized Russia’s actions and reiterated his support to Georgia’s eorgia is making good progress, work- sovereignty and territorial integrity. ing closely with NATO teams to “NATO remains strongly committed to Georgia’s implement the Substantial NATO- security and territorial integrity. We are concerned Georgia Package- said North Atlantic by Russia’s deepening relations with the Abkhazia Treaty Organization (NATO) Secre- and South Ossetia regions of Georgia. We call on Gtary General, Jens Stoltenberg, on Thursday at a Russia to reverse its recognition of the regions and The Hofburg Palace, seat of the OSCE Permanent Council in Vienna. Source: cvce.eu summary briefi ng upon completion of the NATO- to withdraw its forces," he said. Georgia Commission meeting in Brussels. Stoltenberg also said that the Alliance will con- The Georgian side also called on the international BY THEA MORRISON Georgia is the only non-NATO member state to tinue to work together with Georgia and will pro- community to be vocal and take appropriate meas- have held a NATO-Georgia Commission meeting vide the practical tools to help Georgia advance ures against the illegal actions of the Russian Fed- within the framework of the NATO Defense Ministry. towards eventual NATO membership. eration; to spare no effort to avoid the escalation Discussion of Georgia’s progress on defense Prior to the summary briefi ng, the NATO-Geor- he Georgian delegation to the OSCE, of the situation in the Tskhinvali region and to reforms, including the Strategic Defense Review gia Commission meeting was held, at which Geor- headed by Ambassador Konstantine prevent another fact of illegal annexation in Europe. and the implementation of the Substantial NATO- gia’s Defense Minister, Levan Izoria, spoke about Zaldastanishvili, initiated discussions Georgia’s Ministry of Foreign Affairs reported Georgia Package (SNGP), were on the agenda of the ongoing reforms and the optimization process with the Organization for Security that the representatives of the United States, Azer- the meeting. within the ministry. and Co-operation in Europe (OSCE) baijan, Ukraine, Norway, Canada, Iceland, Liech- “We recognize Georgia’s progress in the imple- Ministers of NATO-member states underlined TPermanent Council over the issue of the “referen- tenstein and the European Union supported Geor- mentation of reforms in the defense fi eld…We have the importance of Georgia’s contribution to global dum” in Georgia’s breakaway Tskhinvali (South gia in their statements. close mutual partnership with Georgia which means security, noting the courage and commitment of Ossetia) region, scheduled for April 9. Turkey, Ukraine, Moldova, San Marino, Monte- that we help each other. We help Georgia to improve Georgian soldiers who take part in various peace- The international community assessed the so- negro, Bosnia and Herzegovina, Albania and For- its defense capabilities to implement necessary keeping missions. called referendum in Georgia’s South Ossetia region mer Yugoslav Republic of Macedonia aligned to as illegal and unconstitutional. the statement made by 28 member states of the Leonid Tibilov, ostensible President of Georgia’s EU. breakaway region South Ossetia, announced a ref- “The delegations once again reaffi rmed their fi rm erendum to rename South Ossetia, “South Ossetia- support for the sovereignty and territorial integrity Alania,” as he says, “a historic name.” He said the of Georgia within its internationally recognized referendum would be held on April 9, 2017 together borders,” the MFA statement reads. with the presidential elections. The EU representative expressed deep concern The Georgian delegation stressed that this deci- regarding the announced “referendum” and stated sion aims to lay ground for the illegal annexation that the EU does not recognize the framework in of the occupied Tskhinvali region. The Georgian which the so-called referendum would take place, side underlined that the decision to hold a “refer- considering it unconstitutional. endum” in the occupied territory of Georgia is “It was stressed that such illegal steps are against illegal and cannot have any legal effect as the occu- the ongoing efforts to strengthen security and sta- pying power fully controls the situation on the bility in the region. The EU called on the Russian ground and the ethnic population have fl ed as a Federation to fulfi ll its obligations under the cease- result of ethnic cleansing. fi re agreement of August 12, 2008, and its subse- The Georgian Delegation once again underlined quent implementing measures of September 8, that this is another act of aggression by the Russian 2008, and to provide the EUMM access to the Federation, fully neglecting the fundamental prin- occupied regions,” MFA said. ciples of territorial integrity and the inviolability The issue of so-called referendum was also raised of internationally recognized borders of a sovereign by the Georgian side at the meeting of the Com- state, and is aimed at undermining the established mittee of Ministers’ Deputies of the Council of international order. Europe.

PUBLISHER & GM Journalists: Photographer: ADDRESS Reproducing material, photos George Sharashidze Tony Hanmer, Irakli Dolidze 1 Melikishvili Str. and advertisements without Zaza Jgarkava, Tbilisi, 0179, Georgia prior editorial permission is COMMERCIAL Maka Bibilashvili, Layout: strictly forbidden. DEPARTMENT Karen Tovmasyan, Misha Mchedlishvili Tel.: +995 32 229 59 19 The author is responsible for Commercial Director: Dimitri Dolaberidze, E: [email protected] all material. Rights of authors Iva Merabishvili Maka Lomadze, Webmaster: F: GeorgiaToday are preserved. The newspaper Marketing Manager: Tim Ogden, Joseph Larsen, Sergey Gevenov is registered in Mtatsminda Mariam Giorgadze Vazha Tavberidze, ADVERTISING & district court. Nugzar B. Ruhadze, Circulation Managers: SUBSCRIPTION EDITORIAL DEPARTMENT: Nino Gugunishvili, David Kerdikashvili, +995 595 279997 GEORGIA TODAY Editor-In-Chief: Thea Morrison, David Djandjgava E-mail: marketing@ Reg. # 06/4-309 Katie Ruth Davies Natia Liparteliani georgiatoday.ge GEORGIA TODAY 12 POLITICS FEBRUARY 21 - 23, 2017 Georgian PM Holds High- rank Meetings in Munich

stressing the Georgian government's cussed at the meeting of Kvirikashvili BY THEA MORRISON commitment to the effective implemen- and Vice President of the European tation of the 2017-2020 Association Commission and Commissioner for Agreement Agenda. The sides also Energy, Maros Sefcovic. ithin the frames of touched on the upcoming Eastern Part- It was emphasized that membership the 53rd Munich nership Summit planned for late 2017. of the Energy Union will enable Geor- Security Conference, On February 19, Kvirikashvili met his gia to improve its energy security and the Georgian Delega- Turkish counterpart, Binali Yildirım. boost the development of renewable tion, headed by the The Prime Ministers spoke of the need energy sources and energy effi ciency. WPrime Minister, Giorgi Kvirikashvili, held to further intensify the bilateral economic The parties discussed important various meetings with high-rank offi cials. ties between the two countries and con- regional transit projects and Georgia's The 53rd Munich Security Conference fi rmed their commitment to deeper The Georgian PM met with special role and importance in their suc- took place on February 17- 19. More than cooperation on important international the High Representative of cessful implementation. The discussion 500 decision-makers from across the projects, including the successful imple- the European Union for also involved the second phase of the globe, including more than 25 heads of mentation of the Southern Corridor. Foreign Affairs and Security Shah-Deniz Project, as well as TANAP Policy, and Vice-President of state and government, 80 foreign and Binali Yıldırım invited Kvirikashvili to the European Commission, and TAP, which will bigly increase the defense ministers, and strong delega- attend the summit of the heads of states Federica Mogherini transit of natural gas. tions from the new US administration celebrating the 25th anniversary of the The Georgian delegation also met and Congress, came together in Munich Organization of the Black Sea Economic that Georgia, as a staunch partner and Response Mechanism, with the Geor- Secretary General of the League of Arab for discussions on major international Cooperation in Istanbul, scheduled for ally of the US, values deep strategic gian PM once again condemning the States, Ahmed Aboul-Gheit. security challenges. May 22. partnership with the United States. The so-called referendum planned in the The key issues of their discussion The Georgian PM fi rst met with the The Georgian government’s press Prime Minister invited the US Vice Tskhinvali Region, emphasizing that included the enhancement of diplomatic High Representative of the European offi ce reports that at the meeting of the President to Georgia. the international community should relations as well as economic coopera- Union for Foreign Affairs and Security Georgian PM with the United States Kvirikashvili also met with United join forces to stand up to the provoca- tion. Policy, and Vice-President of the Euro- (US) Vice President Mike Pence, the Nations (UN) Secretary General, Anto- tive actions of the Russian Federation. Georgia received support from the pean Commission, Federica Mogherini. US Vice President emphasized the nio Guterres to discuss bilateral coop- Prior to meeting Guterres, Kvirikashvili President of Estonia, Kersti Kaljulaid, The EU High Representative com- readiness of the new US Administration eration and the developments in Geor- and the President of the Islamic Repub- who told Kvirikashvili that Estonia mended Georgia's exceptional progress to continue its strategic partnership gia's occupied territories. lic of Afghanistan, Mohammad Ashraf expresses full support to Georgia on its on its path towards the European Union with Georgia and expressed his hope Kvirikashvili informed the UN Sec. Ghani, agreed to intensify the trade and European integration path. (EU) and emphasized that the EU will to host the Georgian Prime Minister in Gen. of the hard situation along the economic, transport and transit coop- The parties emphasized the impor- complete the remaining procedures in Washington DC. occupation lines and human rights vio- eration between the two countries. tance of the positive dynamics in the relation to a visa waiver for Georgia in Moreover, Mike Pence thanked Kviri- lations in the occupied territories. Georgia's accession to the Energy cooperation process, particularly in a the near future. kashvili for Georgia's special contribu- The parties emphasized the impor- Union, which will promote Georgia's view of the fact that Estonia is to become The Association Agreement was also tion to global security. tance of the Geneva International Talks alignment with European standards and the President of the Council of the discussed, with the Prime Minister During the meeting Kvirikashvili stated and the Gali Incident Prevention and will streamline energy issues, was dis- European Union in 2017.