Issue no: 1218/214 • JANUARY 14 - 16, 2020 • PUBLISHED TWICE WEEKLY PRICE: GEL 2.50

In this week’s issue...

Weekly Entrepreneurial News @entrepreneur.ge NEWS PAGE 2 World Economic Outlook in Emerging Markets & Developing Economies Q4 2019 BUSINESS PAGE 4 The Fate of Anaklia after Anaklia Development Consortium BUSINESS PAGE 5 ON EUROPEAN Georgian Library Opens in Qatar University FOCUS SUPPORT 2020 BUSINESS PAGE 6 We take a look at the ways the EU is supporting Georgia's development PAGE 7,8 Messe Frankfurt Presents Ambiente 2020: The Trade Fair Where the Future Georgian Tourism Administration Becomes the Present BUSINESS PAGE 9 Head Sums up 2019 Chinese New Year & Spring BY TEA MARIAMIDZE Festival Celebrated in Berlin CULTURE PAGE 10

eorgian National Tourism Administration (GNTA) Head, Mariam Kvrivishvili, says that 2019 was full of diffi culties The Year of the Rat: War, for Georgia in terms of tourism and yet it hosted a record- number of visitors. Elections, Merabishvili & “9,357,964 international travelers visited Georgia in 2019, Gan increase of 7.8% compared to 2018. The number of international visi- the EU Summit tors amounted to 7,725,774, which is 7.3% more compared to 2018. The POLITICS PAGE 11

Prepared for Georgia Today Business by Markets Asof10ͲJanͲ2020 STOCKS Price w/w m/m BONDS Price w/w m/m BankofGeorgia(BGEOLN) GBP15.70 Ͳ3,2% +0,6% GEOROG04/21 104.52(YTM3.12%) Ͳ0,1% +0,3% GeorgiaCapital(CGEOLN) GBP8.88 Ͳ0,2% Ͳ4,5% GEORG04/21 105.45(YTM2.40%) Ͳ0,1% Ͳ0,1% GHG(GHGLN) GBP1.18 Ͳ4,1% Ͳ26,7% GRAIL07/22 109.95(YTM3.54%) +0,0% +0,2% TBCBankGroup(TBCGLN) GBP12.38 Ͳ4,5% Ͳ5,4% GEBGG07/23 106.00(YTM4.16%) +0,4% +0,6%

COMMODITIES Price w/w m/m CURRENCIES Price w/w m/m CrudeOil,Brent(US$/bbl) 64,98 Ͳ5,3% +1,0% GEL/USD 2,8835 +0,9% Ͳ0,2% GoldSpot(US$/OZ) 1562,34 +0,7% +6,7% GEL/EUR 3,2130 +0,6% +0,2% GEL/GBP 3,7669 +0,7% Ͳ0,9% Image source: avianews.ge INDICES Price w/w m/m GEL/CHF 2,9722 +0,9% +1,2% FTSE100 7587,85 Ͳ0,5% +5,2% GEL/RUB 0,0473 +2,6% +4,0% number of tourist visits was 5,080,478, which is 323,658 more than in 2018, FTSE250 21566,67 Ͳ1,9% +3,8% GEL/TRY 0,4908 +2,5% Ͳ1,4% DAX 13483,31 +2,0% +3,2% GEL/AZN 1,6970 +0,9% Ͳ0,3% an increase of 6.8%,” Kvrivishvili said. DOWJONES 28823,77 +0,7% +3,4% GEL/AMD 0,0060 ͲͲ NASDAQ 9178,86 +1,8% +6,5% GEL/UAH 0,1207 Ͳ0,1% Ͳ1,1% She noted that most of the international visitors came from Azerbaijan MSCIEMEE 199,07 +1,8% +9,4% EUR/USD 0,8993 +0,4% Ͳ0,2% (+7.2%), Russia (+4.8%), Armenia (+7.6%) and Turkey (+5.3%) and the MSCIEM 1133,63 +0,9% +8,0% GBP/USD 0,7655 +0,2% +0,7% SP500 3265,35 +0,9% +4,2% CHF/USD 0,9726 Ͳ0,0% Ͳ1,2% positive trend was maintained by the EU countries. MSCIFM 2748,14 Ͳ0,3% +3,6% RUB/USD 61,0610 Ͳ1,7% Ͳ3,9% GTIndex(GEL) 1582,68 ͲͲTRY/USD 5,8808 Ͳ1,5% +1,3% Continued on page 6 GTIndex(USD) 1208,13 ͲͲAZN/USD 1,6981 Ͳ0,5% Ͳ0,1% GEORGIA TODAY 2 NEWS JANUARY 14 - 16, 2020 Tensions Growing in Sokhumi as De-facto President of @entrepreneur.ge Gamarjoba! I’m the Editor-in-Chief of the Georgian edition of Entrepreneur magazine and I’m here to share the top weekly Entrepreneurial news with you: Abkhazia Resigns

Founded by Mariam Markarovi, Georgian brand Pavone produces exclusive handmade glass jewelry and interior accessories. It is known for its colorful selection of intricately made and unique technology glassware. Mariam plans to open a Pavone studio-salon which will host masterclasses.

On the market for over a year, Wely is a high-technology innovative company that creates systems to support business operations. The team’s mission is to enhance business building and homes with modern digital capabilities via smart equipment, sensors, etc. Wely can access the operating system from anywhere in the world, check the current status, optimize costs and more. Co-founder Aleksandre Kviciani says that the company aims big: their plans present at the meeting. On Friday, the de facto parliament voted include joining foreign markets. BY BEKA ALEXISHVILI Apparently, a top Kremlin courier in favor of Khajimba's resignation. Vladislav Surkov also landed in Sokhumi “I want to announce that I will be leav- Profy is a digital platform uniting everyday life services in one space and on Sunday. Surkov is an advisor to Pres- ing my granted position to maintain facilitating the connection between esieged de-facto president ident Vladimir Putin and a key strategic stability in the ‘country’,” Khajimba said. craftspeople and customers. The of breakaway Abkhazia Raul counselor in shaping the Kremlin’s pol- The pseudo-vice-president of occupied website/application enables users to Khajimba had to fi le his res- itics toward its Abkhazia, South Ossetia Abkhazia, Aslan Barcic, also commented choose a service and browse a list of all ignation amidst increasing and pro-Russian regimes in Eastern on the near revolt state of the region, the craftspeople in that direction, their protests of opposition on Ukraine. saying that “Khajimba resigned to pre- ratings, reviews, and prices. Profy saves BSunday evening. Surkov met with Bzhania, while vent bloodshed and to sustain stability.” people energy and time, all while Immediately before the resignation, a Khajimba surprisingly refused to meet Repeated presidential elections in receiving a high-quality service. Creator group of about a hundred opposition him, Ekho Kavkaza reports. Russian-occupied Abkhazia will be held Irakli Zantaraia says that he aims to supporters came to his state villa near "We categorically demand Khajimba’s on March 22, leader of the Abkhaz oppo- change the specifi cs of the industry, make it easier, more reachable and Sokhumi to stage a rally demanding him resignation," Aslan Bzhania said after sition, Aslan Bjania, announced Monday. comfortable for every party. to step down. the meeting. On January 10, the court in occupied A few hours beforehand, Khajimba met The same demand was aired on Satur- Abkhazia declared the results of the Follow the Entrepreneur Georgia Instagram page to get the latest updates from with Aslan Bzhania, the leader of the day evening by key fi gure behind the second round of the presidential elec- Georgian Entrepreneurs. For doing business with Georgian Entrepreneurs, write us on opposition, and other politicians. Rus- storming of “presidential” offi ce, Akhra tion and the decision of the court of the [email protected] sian herald Rashid Nurgaliev was also Avidzba. fi rst instance illegal. GCAA Calls on Georgian Airlines Not to Use Iranian & Iraqi Airspace on airlines registered in Georgia to avoid lines crash. BY ANA DUMBADZE fl ying into Iranian and Iraqi airspace,” The Ukrainian International airliner the agency's statement reads. bound for the Ukrainian capital, Kyiv, Based on information released by the crashed minutes after takeoff from the he Georgian Civil Aviation European Union Aviation Safety Agency, Imam Khomeini International Airport in Agency has called on Geor- Iranian and Iraqi airspace has been Tehran on January 8 amid escalating ten- gian airlines to refrain from evaluated as "high-risk" by the Integrated sions between the United States and Iran. using Iranian and Iraqi air- EU Aviation Security Risk Assessment The plane was carrying mostlyIranians space. Group, which recommends that fl ights and Iranian Canadians. T“Based on recommendations issued by over Iranian and Iraqi airspace should On the evening of January 10, Iran’s the Integrated EU Aviation Security Risk be avoided as a precautionary measure. military announced that they had acci- Assessment Group, due to Iranian and The Georgian Civil Aviation Agency dentally shot down the Ukrainian pas- Iraqi air space safety risks and the likely also expressed its sincere condolences senger jet, blaming human error because causes of the Ukrainian aircraft disaster, to the families of those who lost their the plane took ‘an unexpected turn’ the Georgian Civil Aviation Agency calls lives in the Ukraine International Air- toward a military base. Iran Admits to Downing Ukrainian Flight

took ‘an unexpected turn’ toward a mil- fi rst, with even the Ukrainian side ruling BY GT TEAM itary base. out an attack. “Armed Forces’ internal investigation By Friday, January 10, American and has concluded that, regrettably, missiles allied intelligence assessments had con- ran has reversed its statement that fi red due to human error caused the hor- cluded that Iranian missiles brought ‘a mechanical failure’ was to blame rifi c crash of the Ukrainian plane and down the plane by accident. American for a Ukraine International Air- death of 176 innocent people. Investiga- media were quick to publicize the fact, lines Boeing 737 crashing shortly tions continue to identify and prosecute as the world waited for Iranian offi cials after taking-off early morning on for this great tragedy and unforgivable to take responsibility. IJanuary 8. mistake,” tweeted Hassan Rouhani, the Soon after the Iranian announcement, The Ukrainian International airliner President of the Iranian Republic. Georgian Prime Minister Giorgi Gakha- bound for the Ukrainian capital, Kyiv, “The Islamic Republic of Iran deeply ria spoke to President of Ukraine Volo- crashed minutes after takeoff from the regrets this disastrous mistake. My dymyr Zelensky over the phone. Imam Khomeini International Airport thoughts and prayers go to all the mourn- During the conversation, the Georgian in Tehran on January 8 amid escalating ing families. I offer my sincerest condo- Prime Minister said he shared the pain tensions between the United States and lences,” President Rouhani added to his over the loss of Ukrainian citizens in the Iran, killing all 176 on board. tweet minutes later. UIA plane crash in the Iranian city of The plane was carrying mostly Iranians The Ukrainian plane carrying 176 peo- Tehran, and expressed condolences to thing was to conduct a full and objective always been side-by-side in the troubled and Iranian Canadians. ple crashed on January 8, the same day the relatives of the victims. investigation into the causes of the trag- periods of history. We have experts work- On the evening of January 10, Iran’s Iranian missiles attacked American bases Gakharia assured the Ukrainian Pres- edy, and Ukrainian experts were already ing, we have already sent a plane with military announced that they had acci- in Iraq. At fi rst, Iran insisted that ‘mechan- ident that Georgia was ready to provide involved in this process. our best specialists to Iran and we are dentally shot down the passenger jet, ical issues’ were to blame. International all necessary assistance to Ukraine. "We feel your support," he told PM working to ensure the transparency of blaming human error because the plane society found the claim reasonable at Zelensky in turn stressed that the key Gakharia. "Ukraine and Georgia have the investigation,” the Head of State said. GEORGIA TODAY JANUARY 14 - 16, 2020 BUSINESS 3 DIRSI Residential Complex - The Art of Living

zones; a kindergarten; a school; a learn- surroundings. For instance, the Mtkvari ing resource center; a business center; River, will in the future be used to cre- supermarkets and parking areas to ate new spaces for leisure, entertain- name a few. The complex is also adapted ment and increased mobility- residents for the needs of people with disabili- will be able get around the river by ties. boat. While the river provides natural What’s more, we have already begun protection from the city’s incessant the construction of the project DIRSI turmoil and pollution to one half of 2, which will be available for sale in the DIRSI complex, the other half is the near future. embraced by a huge park serving the same purpose. Our whole conception THE CONCEPT OF DIRSI is to provide the inhabitants with IS LARGELY BASED ON opportunities to live in a quiet, peace- ECO-FRIENDLINESS. HOW ful, green and secure space. DO YOU DEVELOP YOUR DIRSI has initiated a project of replant- PROJECT, PLEASE TELL US ing trees removed in any part of the MORE ABOUT THIS. country. It also encourages broad par- To create something distinctive, good ticipation in developing parks. infrastructure is not enough; one must be part of the ecosystem. The accumu- WHAT URGED YOU TO lated problems in the environment START A CONSTRUCTION should concern one personally; the SITE IN THIS OLD DISTRICT perpetual eagerness to try and solve OF THE CAPITAL CITY? these issues is essential. DIRSI is an original and independent Conceptually, DIRSI’s approach to district between the River Mtkvari and design puts emphasis on the natural Monk Gabriel Salosi Avenue in the

here and how we ‘CITY WITHIN A CITY’ MEANS. live impacts all DIRSI already owns the largest resi- other functions of dential complex in the city, which daily life. DIRSI comprises only a quarter of its River residential complex City mega project, spanning 47 hectares hasW been designed not only to provide and including high-rise buildings as high-quality accommodation, but also well as townhouses and villas. to create a shared living space where DIRSI is designed to offer a whole everyone will have a stake in environ- new style of living, where the meticu- ment protection and where everyone lously designed atmosphere is there will be treated equally. As ambitious to serve every imaginable need. The as this might sound, DIRSI is setting complex pampers its residents with the bar very high with its human-cen- the fi nest infrastructure and services tered design in Tbilisi’s historical to create a safe and enjoyable atmos- Dirsichala district. phere for living and leisure. These To learn more about this standout include a boulevard; a park with attrac- project, GEORGIATODAY spoke with tions; a multipurpose playground; bike Emin Abasov, General Director of AS lanes; a shopping center; restaurants Georgia (DIRSI). and cafes; basketball/football/tennis playgrounds with instructors for chil- TELL US WHAT YOUR SLOGAN dren; wide pedestrian and car-free

historical part of Tbilisi. The word DIRSI has its origins in Tbilisi’s his- torical part called “Dirsichala” (Dirsi Grove) in the last century. Following the collapse of the USSR, the area soon started to break down: its trees were cut, its gardens were uprooted and its infrastructure was damaged. The com- pany decided to reverse the course by reinstating the historical elements of the areas based on the existing records. This area will soon become one of the greenest parts of the city, with clean air and lots of space for walking and relaxing in the open. The beautiful views of the Mtkvari River and sur- rounding mountains add to the charm of the complex.

COMPARED TO SIMILAR PROJECTS, WHAT OTHER VALUES DOES DIRSI UPHOLD? The safety of children is DIRSI’s top priority. The company ensures safety for kids in its parks, playgrounds and other facilities for children, completely separated from traffi c zones. DIRSI does not differentiate its build- ings or customers by social or economic status. All facilities are accessible to all, equally, without any special privi- leges or special treatment for anyone. Prices at DIRSI are both affordable and competitive. When buying an apartment from DIRSI, customers get additional perks in terms of access to local facilities. Thus, they make an investment that pays dividends to them as well as to the whole community. If you’re looking for something extraordinary, spacious and modern, yet environmentally safe and aesthet- ically beautiful, DIRSI is the perfect fi t. GEORGIA TODAY 4 BUSINESS JANUARY 14 - 16, 2020

World Economic Outlook in Emerging Markets & Developing Economies Q4 2019

Like the advanced economies, experts expect continuing headwinds from the China-US trade tensions. Trade expec- tations are at their lowest level in more than ten years. An increasing share of respondents expect both short- and long-term interest rates to decrease. Whereas, the economic climate for the Commonwealth of Independent States (CIS) slightly recovered and the indi- cator improved by 4.9 points and now points at -10.9 on the balance scale. Assessments of both the current situ- ation as well as the economic outlook improved, but remain negative. Economic activity in Azerbaijan, Armenia, and Kazakhstan is assessed as very favorable. In Russia, Ukraine, and Georgia on the other hand, eco- nomic activity seems to be slowing down, as economic expectations remain pessimistic. The respondents almost unanimously report that corruption is the most pressing problem hindering the economy now. However, lack of innovation comes as a close second.

This research was prepared by ifo institute and was originally published in ifo World Economic Survey, IV 2019 November, Vol. 18. PMC Research Center is a regional partner of ifo Institute in South Caucasus.

he World Economic Sur- in nearly all regions. Assessments of vey (WES) assesses global the current situation were unfavorable economic trends by poll- particularly in emerging markets, while ing transnational and in advanced economies it was primar- national organizations ily the estimates for the coming months worldwideT on current economic devel- that declined. In emerging markets, opments in their respective countries. the downward trend was based mostly Its results offer a rapid, up-to-date in Asia; in advanced economies, it was assessment of the current economic concentrated in the US. Compared to situation internationally. May of 2019, there was a marked increase In October 2019, 1,230 economic in the proportion of experts who rate experts in 117 countries were polled. macroeconomic demand and innova- The survey questionnaire focuses on tion as insuffi cient. qualitative information: assessments of a country’s general economic situ- GLOBAL ECONOMIC OUTLOOK ation and expectations regarding key IN EMERGING MARKETS AND economic indicators. It has proven to DEVELOPING ECONOMIES be a useful tool, since it reveals eco- The economic climate of emerging nomic changes earlier than conven- markets and developing economies tional business statistics. worsened again this quarter. This is The ifo World Economic Climate has the fi fth consecutive quarter where the worsened again, with the indicator climate indicator is in negative terri- falling in the fourth quarter from -10.1 tory. The economic outlook did not to -18.8 points. Both the assessment of change much, but experts remain scep- the current situation and expectations tical. The assessment of the current dropped signifi cantly as the global situation dropped again to reach -37.9 economy continues to cool. There was points, the most negative level since a deterioration of the economic climate second quarter of 2019. GEORGIA TODAY JANUARY 14 - 16, 2020 BUSINESS 5 The Fate of Anaklia after Anaklia Development Consortium

side over the past year have shown that OP-ED BY EMIL AVDALIANI Washington is deeply interested in Anak- lia, as American infl uence seeks to block Chinese moves in the Black Sea. Yet his year the fate of the many in Georgia wonder why, if there is Anaklia Port will remain of increased American interest, no tangible great interest to Georgian progress has been made so far on the society, as well as foreign construction of the port. observers. The port project Let us distance itself from the Georgian Tis inextricably linked to Georgia's inter- perspective and look at the Anaklia prob- nal politics which are likely to be volatile lem from a global point of view. There throughout 2020 as the country prepares have been numerous calls from the ana- for important parliamentary elections. lytical community urging the US to have A further dimension of importance is larger presence in the Black Sea region, attached to the port due to geopolitics. but so far we have seen limited military Indeed, over the past year or so, the issue and economic support for the pro-West- of Anaklia has become part of a geopo- ern Georgia and Ukraine. For the US, litical competition spanning Eurasia, the Black Sea is not of as much geopo- where the US and China are waging a litical importance as the South China battle which does not necessarily involve Sea or Persian Gulf. direct or even proxy warfare but instead This is not to say the Anaklia port pro- a clearly visible contest, with China vying ject is not important to them. On the for control of vital roads, ports, railways contrary, there have been consistent and natural resource bases. The US, moves by the US to counter Chinese considering the country's maritime nature interests around the future port. The and its distance from the Eurasian con- very fact the Chinese did not get the Moscow, the Kremlin has rarely featured On January 9, the Georgian government After ADC, new projects could emerge. tinent, has diffi culty successfully com- right to build the port, but their only in the Anaklia port issue. In fact, there announced it would begin procedures As argued above, the US’ interest in the peting with the Chinese. The competi- competitors, Americans, did, shows have been no offi cial statement or even to cancel the agreement signed with the port could serve as a major driver behind tion between the two states, unlike the Washington's long term perspective. suggestions that Russia is particularly Anaklia Development Consortium (ADC) future initiatives. one which took place between the Soviet Moreover, in mid-2019, the US’ Mike interested in the Anaklia project. How- since the latter had not abided by require- Naturally, this will be no guarantee that Union and the US, involves the economic Pompeo strongly supported the project ever, the economic development in the ments laid out in the initial 2016 agree- the port will be constructed in the near and technological spheres (the past Soviet while criticizing the Chinese and Rus- Black Sea region shows an increasing ment. future, but geopolitical developments technological success having been short- sians. need to have new ports, preferably deep Though this is a negative sign which such as the US-China competition and lived). This brings us to Russia. Though it has sea ones, which explains Russia's recently postpones the construction of the Anak- internal Georgian politics will keep the Various statements from Georgian become something of a fashion in Geor- announced intent to build a new deep lia port, it could also be argued that the idea of constructing the Anaklia port offi cials and most notably from the US gia to link all foreign policy failures to sea port at Taman, on the Kerch Strait. idea of Anaklia port is likely to survive. potentially feasible. State Audit Offi ce of Georgia: GEL 561 mln Worth of Hep C Meds Expired to the Social Service Agency, the main we should always have a certain amount reason for the expiration of the medica- in stock because we are trying to involve tion was that since July 2017, the number more people in this program," Gamkre- of benefi ciaries has declined sharply. lidze explained, noting that the expired Also, at the initial stage of program launch medicines worth GEL 560,645,083 were in 2015, the main treatment drug was not bought from the state budget. Sofosbuvir (Sovaldi), which was pre- "This GEL 560 million was not the scribed in combination with other med- budget money, it was a donation, and ications (Interferon and Ribavirin), but the cost for the medicines was higher in in February 2016, the drug was replaced 2013, 2014 and 2015. Today, the prices are with a new generation of medicines - lower,” he said. Harvon, which changed treatment Gamkrelidze noted that the project has regimes and dramatically reduced the been highly effective, seeing 65,000 peo- use of Sofosbuvir, Interferon and Riba- ple benefi ting from the program, of which virin. Further, the agency explains that 58,000 will no longer develop liver can- there are cases of sudden termination cer, meaning those people will live 15 to of treatment, including the death of 20 years longer than if they had devel- patients, which resulted in the accumu- oped the disease. lation of unused medicines. Former Health Committee Chairman Opposition parties criticized the min- of Parliament, Akaki Zoidze, who quit istry, saying an investigation should be his mandate in early December, said that launched into the fact. no-one questions the Hepatitis C pro- Roman Gotsiridze, member of the gram except Georgians. Zoidze took to United National Movement (UNM), says Facebook to address the issue, saying it that it is a “crime” to let such expensive is unacceptable to politicize everything. medicines go to watse. “No-one on Earth doubts the success “This happened because of negligence, of the Hepatitis C program, except Geor- lack of management and corruption at gians! And it happens when the whole the expense of human health. The Hep- world is watching very closely this truly atitis C program was a unique gift from unique process of elimination of this our friend state the US, which provided terrible disease, and our country is a a grant and is currently spending billions pioneer in it!” he said. of dollars [on it]. No developed country The post reads that only Gilead has the could afford this program because it is right to be concerned about the expira- Image source: npr.org an extremely expensive treatment tion of the medicines, and adds that the medications were refl ected on various of understanding. The project helps to method,” Gotsiridze claims. The MP organization knows the importance of BY TEA MARIAMIDZE material accounts of the Social Service reduce and prevent cases of Hepatitis C called for the proper investigation of the this project and a 1-2% loss of medicines Agency of the Ministry of Health of in Georgia with the main goal of stop- fact. through expiration is expected. Georgia, while the central offi ce of the ping the disease from spreading. The Amiran Gamkrelidze, Director of the “What is the biggest danger for the he State Audit Offi ce (SAO) ministry registered another medicine of treatment is free of charge for all citizens National Center for Disease Control future of the program? Further politiciz- of Georgia released a report the same purpose, worth GEL 121,285 of Georgia. (NCDC) and Public Health, commented ing the issue, and most importantly, the last week which reads that ($42,039), which expired. SAO noted the abovementioned expired on the issue, saying there must always passivity of thousands of citizens who GEL 560,645,083 The health initiative ‘Georgia without medicines included modern Hepatitis be a certain amount of medicines in the know they have the virus but do not seek ($194,331,050) of Hepatitis Hepatitis C’ was launched nationwide C treatment medicines received free of strategic stock so that they can be used in-depth diagnostics and treatment, even TC treatment medications have expired in April 2015, when the Government of charge from a US manufacturer: Harvoni, when needed. though today it is completely free for in Georgia. Georgia and American biotechnology Sovaldi, Zepatier and Interferon. "We are treating every month from them," Zoidze wrote on his Facebook The report reads that the expired company Gilead signed a memorandum The audit offi ce stated that according 1000 to 1200 patients and for this reason page. GEORGIA TODAY 6 BUSINESS JANUARY 14 - 16, 2020 Georgian Library Opens in Qatar University

of the National Parliamentary BY ELENE DZEBISASHVILI Library of Georgia and the founder of the fi rst Georgian digital library. "Being our fi rst such cooperation n Monday, a Geor- with countries in the region, it gian Library opened involves many future perspectives, within the Univer- including an exhibition of Georgian sity of Qatar, with antique books in the fantastic hall English-language of the Library of Qatar in the near booksO and publications on Geor- future. I want to stress the outstand- gian culture and heritage (up to a ing input of the Embassy of Geor- hundred units), as well as diction- gia to Qatar and Ambassador aries and Georgian narratives in Nikoloz Revazishvili,” Kekelidze Arabic. added. “Today, a memorandum was The Embassy of Georgia to Qatar signed between myself, represent- has already donated over 70 books ing the National Libraries of Geor- to Qatar University’s (QU) Library, gia, and Qatar, represented by my including books on Georgian cul- colleague Sohair Wastawy," said tural heritage, diplomacy, Georgian Giorgi Kekelidze, General Director cuisine, dictionaries, and more. Georgian Company to Sew Marks & Spencer Clothing various countries with the label 'Made BY ELENE DZEBISASHVILI in Georgia.' The company, based in Kutaisi in the Imereti region, has increased the assortment of its products within the meri Sewing Company, a benefi - framework of the Produce in Georgia ciary of the 'Produce in Georgia' program and currently employs 400 agency, is to sew clothes for the people. Marks & Spencer Group, a major The state program Produce in Georgia British multinational retailer that is being implemented on the initiative Ispecializes in selling high-quality cloth- of the Government of Georgia. The pro- ing and home products. gram aims to support entrepreneurship Clothes of Imeri Sewing Company will and boost export potential in the coun- be sold in shops of Marks & Spencer in try. Image source: luxherald.com USAID/Georgia Launches Georgian Tourism the USAID Economic Governance Program Administration Head

SAID/Georgia last week itate public-private dialogue to ensure launched the USAID that regulations are well-suited to the Economic Governance conditions of Georgia’s private sector. Program, a fi ve-year pro- The Economic Governance Program Sums up 2019 gram to help Georgia also supports business associations and designU and implement transparent, civil society to drive Georgia’s reform Continued from page 1 enue last year, which is 47 million more ness of the country, increase tourism and evidence-based economic policies to processes through research and advo- compared to 2018,” she noted. income, and promote employment. improve its business and investment cacy. Further, a signifi cant increase in inter- To note, Georgian tourism was hit by “Our goal is to diversify tourism, enter environment. As the leading development agency national visitors was seen from those a travel ban imposed by Russia in July new markets, attract high-cost tourists, Through the program, USAID will of the US government, USAID supports countries where the GNTA conducted 2019, following large-scale anti-Russian and to create new tourism products to partner with the Government of Geor- Georgia to build the capacity to fi nance, active marketing campaigns. protests in the country. The ban affected support businesses involved in the tour- gia, business associations, and civil plan, and implement its own solutions “We saw a signifi cant increase in visitors airlines, travel agencies, hotels and hos- ism industry and job seekers,” she said. society organizations to facilitate strong to development challenges. USAID has from Germany +38.1%, Poland +32%, France tels in various and in total the country As for the challenges of the current public-private dialogue and ensure that worked in Georgia since 1992, support- +28.4%, the United Kingdom +27.5%, Neth- saw a $300 million loss. year, Kvrivishvili said infrastructure Georgia's private sector is represented ing the country’s transformation into erlands +25.8% and others. Particular Kvrivishvili underlined that through improvements and lack of qualifi ed staff in the policymaking process. a developing democracy that is increas- growth was observed from Uzbekistan the tireless work of the government and remain the main issues. The program involves providing tech- ingly integrated into Western political, +101.9%, Kyrgyzstan +99.6%, Kazakhstan the private sector, it was still possible to "The tourism administration has to nical assistance to the Government of security, and economic institutions. +75.7%, China +50.9%, Saudi Arabia +44.9%, jointly overcome the challenges facing create a lot of opportunities for people Georgia to ensure evidence-based More than 30 USAID programs stimu- and Kuwait +34.7%,” she added. the tourism sector. to get jobs because it is a big industry policymaking that accounts for the late inclusive economic growth, develop The GNTA Head noted that 667,612 “We have worked hard and in coordina- and we need more professionals and needs of all stakeholders. democratic governance, enhance energy international travelers visited Georgia tion with the private sector we developed more education programs. In 2019, we Notably, USAID will continue to facil- security, and foster social inclusion. in December 2019, an increase of 16.4% an anti-crisis plan, and carried out many launched a large-scale project in the year-on-year. The number of interna- important activities, such as raising aware- mountains, in which more than 2,000 tional visitors in that month totaled ness of the country's tourism potential people were trained in professional tour- 534,732, an increase of 16.3%, while the in the target markets, creating high qual- ism throughout Georgia for free. In 2020, number of tourist visits was 312,046, up ity tourism products, improving service this project will be given more scope," by 41,821 compared to December 2018. quality and attracting new investment. she noted. “In December 2019, most international As a result, by the end of 2019, the Geor- Kvrivishvili confi rmed negotiations visitors visited from Armenia (+25.8%), gian tourism industry was at a historic with Ryanair and other airlines will be Azerbaijan (+8.8%), Turkey (+19.7%) and high,” she said, adding that in 2020, the ongoing in 2020, as will bringing infl u- Russia (2.6%). According to preliminary agency is to continue active marketing encers, well-known journalists and world data, Georgia received $3.3 billion rev- campaigns and activities to raise aware- leaders to experience Georgia. GEORGIA TODAY JANUARY 14 - 16, 2020 BUSINESS 7 EU4Youth: Cooperation between Georgian Youth & Local Authorities

tences demanded in the labor market. BY NINI DAKHUNDARIDZE Via cross-sectoral cooperation and through strengthening support structures for youth employability at local and nvesting in young people is invest- national levels, the program will addi- ing in the future, claims EU4Youth, tionally aid the development of formal a European Union fi nanced pro- and non-formal education for fostering gram in Eastern Partner countries youth (self)-employability. that fosters the active participa- The SAY YES Skills for Jobs project Ition of young people in society and their has six specifi c actions through which employability. EU4Youth was launched it hopes to reach the goal of employing in 2017 in Eastern Partnership countries more Georgian and Armenian youth. of the EU (Armenia, Azerbaijan, Bulgaria, 1. Research, good practice reviews and Georgia, Moldova, and Ukraine), with a target group mapping to identify required budget of €22.75 million, EU Investment skills that match labor market demands, being €20 million. and for the design of formal and non- ‘SAY YES Skills for Jobs’ is a project formal educational programs. within the EU4Youth program that was 2. Multi-stakeholder development of implemented in Georgia and Armenia. and advocacy for gender- and ability- The project facilitates and contributes sensitive formal and non-formal educa- to the self and general employability of tional programs, including VET curricula young women and men aged between development in compliance with the the ages of 15 and 35 in Armenia and Work-Based Learning (WBL) approach; Georgia, particularly those with fewer 3. Capacity development programs for opportunities and from vulnerable public institutions, public VET colleges groups. The project has a three-year and private companies involved in WBL duration between 2018-2021, and a pro- programs; Image source: European Union gram budget of €1.53 million. 4. Implementation of formal and non- The project in particular aims to enhance formal educational programs for com- 5. Event-based exchanges of practice graduates/ students; The project is implemented by World formal and non-formal education to petence development of youth within and awareness-raising campaigns con- 6. Coordination meetings and advocacy Vision Deutschland VE (DE) in partner- increase opportunities for youth to and outside VET institutions, including necting VET institutions, youth-led measures for improvement of youth sup- ship with the Global Development Fund develop adequate professional compe- complementary e-learning programs; structures, private companies and VET port structures for employability. (AM), Association Anika (GE) and the Georgian Farmers' Association. The Georgian team involved in this program holds meetings as required to make sure they are on the right track. The last such meeting was held in late December in Mtskheta. The coordination meeting held between youth organizations at Mtskheta City Hall discussed the past activities and analyzed the need for new ones. Youth clubs created under the EU4Youth ‘SAY YES – Skills for Jobs’ project outlined their activities, while youth organiza- tions and the Mtskheta City Hall dis- cussed ongoing and planned activities. The meeting highlighted specifi c areas of future cooperation between young people and the local authority. Additionally, successful leaders and members of the SKYE Club set up under EU4Youth were awarded with certifi - cates. SKYE (Skills and Knowledge for Youth Economic Empowerment) clubs give an opportunity to young people aged 16-25 to learn and take care of their community together. They are designed to run on an 18-month cycle, and provide practical and customized support for groups of 10-25 young people. SKYE clubs have been set up within the framework of the EU4Youth SAY YES Skills for Jobs project, further ensuring and facilitating the goal of the program: to open opportunity doors to youth who eventually determine the country’s future. Georgia Allocates GEL 4 Mln to Finance Students Living near Occupation Line

The government has been fi nancing BY ANA DUMBADZE BA and MA students living in Tbilisi- administered villages adjacent to the dividing line since 2013, covering the he Government of Georgia villages of Gori, Kaspi, Khashuri, Dush- has allocated 4 million GEL eti, Oni, Sachkhere, Tsalenjikha and to fund higher education Zugdidi municipalities. for 1,600 Georgian students The Ministry reports that over the past who live near the occupa- seven years the government has funded Ttion lines of Georgia’s Russian-occupied the studies of 7,000 students living at Tskhinvali and Abkhazia regions, 584 the occupation lines and allocated more more compared to the previous year. than 15 million GEL. GEORGIA TODAY 8 BUSINESS JANUARY 14 - 16, 2020 EU Supporting Agricultural Initiatives in Georgia

nesses operate in one of the following BY NINI DAKHUNDARIDZE municipalities: Lagodekhi, Dedoplist- skaro, Tetriskaro, Akhalkalaki, Borjomi, Kazbegi, Keda or Khulo. These are the he European Neighborhood eight municipalities where the rural Program for Agriculture development LEADER projects are and Rural Development implemented under EU-funded ENPARD (ENPARD) has been imple- program. Grant Category 1 will support mented in Georgia since capital investments like machinery and T2013. It aims to reinvigorate the agricul- equipment in any sector of agriculture. ture and the rural sector in the country Grant Category 2 will support farmers, by facilitating the cooperation between rural households, cooperatives and SMEs the government, civil society, and rural who operate in the municipalities of community. The total budget for ENPARD Akhaltsikhe, Dusheti, Khelvachauri, in Georgia, covering the period of 2013- Shuakhevi, Marneuli, Bolnisi, Dmanisi, 2022, is €179.5 million and it was broken Gardabani, Tsalka, Ninotsminda, Aspin- down in three phases: I Phase – € 52 dza, Kvareli, Gurjaani and Signaghi. This million, 2014-2017; II Phase – € 50 mil- grant category follows a value chain lion, 2016-2019; III Phase – € 77.5 million, approach and aims to support the fol- 2018-2022. lowing fi ve sectors: beef (in all munici- Since New Year means new opportu- palities), dairy (in all municipalities), nities, the second cycle of grants in the vegetable (in Kvareli, Gurjaani and program has just been announced. Sighnaghi), wheat (in Sighnaghi) and On January 1, the Food and Agriculture potato production (in Tsalka, Ninots- Organization of the United Nations minda and Aspindza). (FAO), under the EU-funded European What’s more, the grant competition Neighborhood Program for Agriculture gives an opportunity to cooperatives Image source: European Union and Rural Development (ENPARD III), registered in all the regions of Georgia ness in the agricultural sector and better above $150,000 for the application to be will increase the level of support in such announced the second cycle of a grant to obtain co-fi nancing. livelihoods for people living in rural considered eligible. cases to 60%. competition to support agricultural ini- The objectives of this grant initiative areas. The initiative will provide 40% grants The Georgian farmers willing to par- tiatives in Georgia. are to improve access to fi nance, services, There are some restrictions to the grant: and requires benefi ciaries to co-invest ticipate have some time to prepare: The competition includes two catego- equipment and inputs for farmers, rural the competition does not cover operat- a minimum of 60% of the total invest- applications will be accepted until March ries of grants. Within Grant Category 1, households, cooperatives and other small ing expenditures such as input, working ment requirement. 31, 2020. Website faogrants.ge provides agricultural initiatives will be funded and medium enterprises (SMEs) in rural capital and seeds, and the required con- The initiative also aims to support full information about the dates, appli- for farmers, rural households, coopera- areas. These improvements are expected tribution that can be provided by the specifi c investments with high economic, cation submission, required supporting tives and SMEs whose farms and busi- to contribute to increased competitive- project should not be below $1,000 or social, and environmental impact and documents, and promoted investments. Distribution of Dividends

(the “Law on Entrepreneurs”) recognizes Nevertheless, the Supreme Court of profi ts of the company. According to the the right of shareholders to receive div- Georgia has established that the discre- Law on Entrepreneurs as well as we the idends and grants the right to the general tion of the general meeting of sharehold- case law of the Supreme Court of Geor- meeting of shareholders to decide the ers to decide the declaration and payment gia, it is the duty of the director to pre- distribution of interim or annul profi ts of dividends is not unlimited. The court pare the annual accounts. If the director to the company’s shareholders. The Law may intervene if it fi nds, based on the fails to observe this duty, it may be the on Entrepreneurs further states that the allegations of the claimant shareholder, ground for director’s personal liability. procedure for the payment of dividends that the general meeting has exercised shall be established in the company’s its power dishonestly and the court has * * * articles of association. grounds to presume that the actions of The case law of the Georgian courts The Supreme Court of Georgia has the general meeting of shareholders were develops along the corporate relations explicitly stated in the recent decisions “in bad faith, deceitful or observing per- between business entities and their that the distribution of company’s interim sonal interests”. shareholders. The recent disputes have or annual profi ts as dividends is a mat- The Supreme Court of Georgia has given the court an ample opportunity to ter that is subject to the discretion of the recognized that the shareholders have advise the corporate players on their general meeting of shareholders. The legitimate expectations to receive divi- rights and obligations under Georgian court explained that the general meeting dends from the company’s profi ts. Accord- company law. The subsequent share- is entitled to discuss the matter and to ing to the court’s reasoning, the non- holder activism is likely to play a sig- G Law Offi ce, through ing a shareholder’s meeting that decides decide to declare and pay dividends to declaration of dividends out of company’s nifi cant role in establishing a clear and the contribution of the declaration of the dividends out of shareholders. However, the general meet- profi ts imposes on the right of share- coherent practice relating to declaration partners Archil Gior- the company’s profi ts. In closely held ing of shareholders is not legally obli- holders. Therefore, the non-declaration and payment of dividends as well as gadze and Nicola Mar- corporations the majority shareholders gated to determine the matter in favor of dividends by the general meeting shall other related corporate matters. iani, joined by senior are often directors themselves or at least of dividend distribution. This discretion serve a legitimate corporate purpose. associatesM Ana Kochiashvili, Tamar Jikia they are in a position where they can of the general meeting includes the dis- * * * and associate Mariam Kalandadze is appoint loyal directors. Such allocation cretion to decide the amount of dividends RECOURSE OF THE Note: this article does not constitute partnering with Georgia Today on a of power and control leaves out the to be paid. SHAREHOLDER SEEKING legal advice. You are responsible for regular section of the paper which will minority shareholders who depend on PAYMENT OF DIVIDENDS consulting with your own professional provide updated information regarding dividends as a return on their invest- DISCRETION OF THE GENERAL According to the case law of the Supreme legal advisors concerning specifi c cir- signifi cant legal changes and develop- ment. MEETING OF SHAREHOLDERS Court of Georgia, the shareholder may cumstances for your business. ments in Georgia. In particular, we will The disputes between shareholders of The Supreme Court of Georgia has addi- have a recourse against the company if MG Law is the fi rst full-service law highlight signifi cant issues which may Georgian business enterprises relating tionally examined the discretion of the the general meeting decided against fi rm in Georgia to be founded by inter- impact businesses operating in Georgia. to non-payment or incorrect declaration general meeting to determine its scope distribution of dividends or incorrectly national partners. The fi rm advises a and payment of dividends have increased and application. The court analyzed the established the amount of dividends to diverse group of Georgian and foreign * * * in number over the past few years. Due relevant provisions of the Law on Entre- be paid. Firstly, the shareholder, who companies, fi nancial institutions, invest- Investors purchase shares to obtain to these developments the Georgian preneurs. In this examination the Supreme disagrees with the decision of the gen- ment funds, governments and public return on their investment. They expect courts have had to make important clar- Court of Georgia has referred to similar eral meeting, must express his position enterprises. to obtain profi t on their investment in ifi cations and to establish a case law rules and provisions operating in other by voting at the general meeting. Sec- Among many other areas, the fi rm pri- the form of regular dividends. In many which explains and applies the Georgian jurisdictions, including the United States ondly, the claimant shareholder must marily focus on the following sectors: cases for minority shareholders the company law provisions governing the and the United Kingdom. allege before courts that the actions of Banking & Finance, Capital Markets, dividends are the only form of return on declaration and payment of dividends. The Supreme Court of Georgia has the other shareholders were “in bad faith, Arbitration & Litigation, Labor & Employ- specifi c business investments. Minority The case law of the Georgian courts indicated that generally the discretion deceitful or observing personal inter- ment, Infrastructure and Project Finance, shareholders have limited control over has been homogenous in various aspects, of the general meeting of shareholders ests”. The court has to be convinced that Energy Law, Real Estate, Tax and Cus- the decisions of the corporate directors as will be summarized and discussed in is free from court intervention. The Law the decision adopted on the general toms, Investment Law, Corporate Law, and the majority shareholders. The cor- the following paragraphs. on Entrepreneurs does not envisage any meeting did not serve the legitimate and Cryptocurrency & Blockchain. porate directors and the majority share- limitations on distribution of dividends. corporate purpose. holders play signifi cant role in the divi- SHAREHOLDER’S RIGHT It does not establish any mandatory For more information, please visit www.mglaw. dend distribution process. They oversee TO DIVIDENDS UNDER minimum dividend payments either. Any OBLIGATION OF THE DIRECTOR ge or contact Archil Giorgadze at archil. the preparation of the annual accounts GEORGIAN COMPANY LAW limitations on this power may be imposed The general meeting decides the decla- [email protected] and Nicola Mariani and are responsible for calling and hold- The Law of Georgia on Entrepreneurs by the company’s articles of association. ration of dividends based on the annual at [email protected] GEORGIA TODAY JANUARY 14 - 16, 2020 BUSINESS 9

Photo source: Messe Frankfurt Exhibition GmbH / Jean-Luc Valentin Messe Frankfurt Presents Ambiente 2020: The Trade Fair Where the Future Becomes the Present n 7-11 February 2020, Messe Frankfurt, design, classic furnishing ideas, lights, decoration the world’s largest trade fair, congress trends, home fragrance and much more. and event organizer, with its own exhibition grounds centrally located GIVING: GIFTS, DECORATIVE in the heart of Europe, is hosting a AND FASHIONABLE JEWELRY, 5-dayO international exhibition of contemporary BODY CARE AND RECREATIONAL cuisine, home appliances and original gifts titled PRODUCTS, PERSONAL ACCESSORIES Ambiente 2020. AND COLLECTIBLES Within the frames of the large-scale exhibition, Giving celebrates the diversity of gift ideas. This visitors will have the opportunity to discover the area at the fair offers an exciting, cross-sector prod- 2020 - 2021 trends in Dining, Living and Giving. uct mix for all events and lifestyles, from gift items, See what’s happening at the world’s leading trade decorative and personal accessories to bags and fair for consumer goods. Exciting perspectives are jewelry. opening up for exhibitors and trade visitors in the Ambiente 2020 will also allow visitors to attend Dining, Living and Giving areas, with high-caliber various workshops and shows. It is a central plat- contacts, the latest developments in the market form for establishing new contacts, where business and design, as well as trends and opportunities in partnerships, ideas and success bring people all segments. together: the global meeting place for new suc- cesses and opportunities. DINING: A WIDE ASSORTMENT The issues that are shaping the industry are put OF MODERN KITCHEN AND HOME under the spotlight in Frankfurt. Ambiente is an APPLIANCES AND THE LEADING TRENDS important venue for HoReCa, Contract Business Dining is in the spotlight at the fair for everything and Ethical Style. It is also the most important that makes cooking and household living easier sourcing platform outside Asia. Here, you’ll fi nd a and the dining experience more special – from wide array of products and the most comprehen- glass, porcelain and innovative kitchen accessories sive overview of the market. to small electrical appliances. HoReCa buyers fi nd Don't miss the chance to attend the exhibition, inspiration here from new gastronomy and cus- discover the current trends and innovations in tomizing concepts. various directions and fi nd new contacts for future success. LIVING: INTERIOR DESIGN, FURNISHINGS AND DECORATION For more information, please contact: Zaira Soloeva, Elegant interior and exterior decoration, tasteful Senior Project Manager at German Business Association and impressive products, and home accessories (DWV) are put on display to show how we will design our +99532 220 57 67 homes in the future. Solutions for every interior [email protected] concept and in every possible style are presented. Photo source: Messe Frankfurt The area offers the ideal platform for furniture (www.messefrankfurt.com)

Photo source: Messe Frankfurt Exhibition GmbH / Petra Welzel GEORGIA TODAY 10 CULTURE JANUARY 14 - 16, 2020 Chinese New Year & Spring Festival Celebrated in Berlin arts was revived by performers in special BY LILY FÜRSTENOW attire with fans and sables. The sable dance was particularly exciting to look at and to wonder at the graceful preci- ood news for lovers of sion of movements. horoscopes and Chinese Singers and performers of traditional culture: 2020 is the Year of Chinese music instruments added a the Rat and will be offi cially joyful festive character to the event, inaugurated in China on while acrobats balancing on shoulders GJanuary 25, accompanied by 15 days of with lightness and ease left the public celebrations and holidays. Chinese New speechless and delighted. The festivi- Year is one of the country's main holi- ties program included a demonstration days, also referred to as the celebration of Chinese calligraphy, where anyone of spring that is associated with the could have their name written in Chi- renewal of life and nature. Those born nese on a piece of paper and get it in the Year of the Rat are successful, framed, and a crash course in the Chi- witty, energetic and optimistic, yet stub- nese language. born and may at time appear impolite The festive celebration of the Chinese or rude due to lack of communication New Year was organized by the Chinese skills. Rats are associated with the yang Cultural Center in Berlin in cooperation symbol. Rat is the fi rst of all zodiac ani- with the City Municipality in Europa mals. According to one myth, the Jade Center Mall, where guests were welcome Emperor said the zodiac animals order to attend the celebrations and enjoy the would be decided by the order in which live performances free of charge during animals arrived to his party. The Rat the two days of the festival – an extraor- tricked the Ox into giving him a ride. dinarily generous gift to all who joined Then, just as they arrived at the fi nish in! One could see the admiration and line, Rat jumped down and landed ahead excitement in the eyes of the public of Ox, coming in fi rst. In Chinese culture, watching the talented performers who rats were seen as signs of reproduction came from China to show the best of and wealth. their talent, and what better reward could On January 9 and 10, Chinese arts and Image source: socialnews.xyz one ever think of than a happy smile and crafts experts organized a fantastic pres- applause of sincerely enthusiastic crowds entation of centuries old Chinese cultural China lovers and city communities. The and immense elegance. Handmade choreography, harmony of movements, of spectators gathered in one of Berlin's tradition in Berlin. These annual celebra- event was opened with the ceremonial authentic costumes worn by folk danc- grace and originality made an unforget- most beautiful shopping malls inspired tions have already become a tradition in dance of the magic Chinese dragons ers made their performances look like a table impression on the public. The by the architecture and design styles of Berlin, loved and anticipated by both ushering in the new year with fi ery grace fairy-tale come true. Vigorous rhythmic thousand-year-old tradition of martial the good old sixties? The Ambassador's Choice Of Winter Must-Sees rad Benkö, Ambassador of Batumi combines a certain Middle East- the mixed colors of blue sky and trees slopes at 8.00 am! Most ski-lifts are from The Austrian government is very active the Republic of Austria to ern/Las Vegas touch due to the post- in change. Austria and the logistics company that in helping Georgian regions to develop in Georgia, was kind enough modern building activities and the brought them to Georgia is Austrian too. agriculture and tourism. One of the regions to share with WHERE.ge calmness of its people. And all that GUDAURI My personal highlight is to go up Mt is Racha-Lechkhumi and Kvemo Svaneti. his top choices for places against the background of lots of green. When I fi rst visited Oni, I was surprised Ato visit in 2020. Check them out below. Travel eastward to Khulo and you will by the different unexpected attractions it enjoy the stunning landscape of a region offers visitors: You have an impressive SOPHIA MELNIKOVA where autumn is the ideal time to see synagogue which shows that Oni used to have a sizable Jewish community and Shovi is a Balneological-climatic resort with sanatoriums that look like they have been beamed from the Austrian Alps! Not far from there is the town of Tsageri, the center of historical Lechkhumi since ancient times and residence of the rulers of this region hosting a highly interesting museum about the traces ancient invaders left – from the Arabs to the Mongols and many other rel- ics even of prehistoric times. And don’t miss the mysterious Khvamli Mountain where Georgian mythological hero Ami- rani was chained in one of the pits.

KUTAISI

No Austrian can miss Gudauri. Not only Sadzele (roughly 3300m), take a is Marco Polo the fi rst western-style 360-degree look over the mountain hotel opened by Austrians in the 1980s ranges, including Kazbegi, and ski slowly but you even fi nd an Austrian hut at 2700 down to have a snack at Vitamin restau- m altitude where you can stay overnight, rant at the Soliko lift. On the drive up to enjoy the stars and be the fi rst on the Gudauri, take a look at Austrian built hydropower station Aragvi. It is located This restaurant is well hidden behind after the second turn on the left when the Literature Museum and offers not you start the serpentines towards Gudauri: Kutaisi is not only perfectly located to only a wide variety of Georgian but also An elegant symbiosis how to do business make excursions to Chiatura, the once- international food. If the weather allows, in an environmental-friendly way. in-a-lifetime experience of riding a 1950s- take a seat under a roof of vine-leaves era cable car built on the orders of Sta- and enjoy the quiet atmosphere in the ONI & TSAGERI lin himself or the spa resort at Tskaltubo. center of Tbilisi, just a few meters from Bertha von Suttner, the Austrian Peace the busy Rustaveli avenue. Noble Prize winner of 1905 used to leave Beyond the yard is not only a shop with in this city some 140 years ago. The beautifully crafted Georgian art but also capital of western Georgia is a pretty a small theater that you can even rent city wrapped in a constant autumnal for staging plays or having a party. glow boasting lots of charming cafes such as the Palaty next to White bridge. BATUMI And don’t miss Gelati Monastery, a medi- When I fi rst visited Batumi, it was eval cathedral with elaborate frescoes refreshing to feel the humid breeze of in the outskirts of Kutaisi. the sea. The sea always opens your mind and broadens your horizon. Ajara is a beautiful gem in the Georgian crown. GEORGIA TODAY JANUARY 14 - 16, 2020 POLITICS 11 The Year of the Rat: War, Elections, Merabishvili & the EU Summit

the European intermediaries are hope- it is openly discussing the chances of a OP-ED BY ZAZA JGARKAVA ful, it is still unclear whether the oppo- great political deal brewing with those sition will agree to the government’s loyal to him within the internal affairs offer to adopt the quasi-proportional system. ccording to the Chinese system instead of the classic one. It sug- Nor is the Georgian Dream inactive as calendar, 2020 is the year gests 100 proportional and 50 majoritar- it announces the governmental strategy. of the Rat, the fi rst of the ian mandates, but even if the government It seems a lot of majoritarian “Salomes” 12-year cycle of the zodiac. offered to hold the elections with a 140/10 are being prepared, and the party “will Although the pink Pig’s proportion, the opposition would not purchase all 73 mandates whatever the Ayear is still in action until January 25th, agree as this debate is not about propor- cost.” The recent activities of the “rebel- it is clear that the new one already started tions, it is about keeping a promise; the lious” majoritarian MPs in the regions showing its powers and isn’t going to promise the Georgian Dream leader, suggests this approach. It has also become wait until the end of the month. Take, billionaire Bidzina Ivanishvili, gave vot- known that the fi rst 20 seats of the pro- for instance, the series of explosions in ers on June 24, 2019- that there would portional list will be nominated by Ivan- Baghdad, seeing fi rst Iran attacking a US be a zero barrier and completely pro- ishvili, while the other 20 by the former military base and its embassy and then portional system. head of parliament, Irakli Kobakhidze. the latter responding by assassinating The battle is at a stage where backing Major of Tbilisi Kakha Kaladze will have two secret service generals, leading to the opposition could equal death, and his quota too, but the numbers for the a new military crisis between the US so an agreement being reached seems latter are still unknown. and Iran. From a historical perspective, highly doubtful. Quite possibly, the 2020 The gloomy Year of the Rat predicts it is safe to say that the Rat is defi nitely elections will be held according to the numerous impromptus even before the establishing itself as the God of War: the old system, that is with 77 proportional epic 2020 elections. Apart from the judges Russian-Georgian war of 2008, the Bal- and 73 majoritarian, and the opposition to be appointed in the Supreme Court, kans in 1996, the Soviet Union in Mozam- will try to make Ivanishvili and the Geor- the General Prosecutor, Chairmen of the bique, 1984. In short, if the trend contin- gian Dream pay the highest possible Justice Committee, Supreme and Con- ues, it might successfully substitute the political price for the lie given so publicly stitutional Courts – all will become known Roman Mars. What should Georgia in summer. this year. In spring, the Turkish Premier expect, considering the abovementioned In a month, the former Interior Min- Erdogan will visit Tbilisi, followed by chronicles? War or peace? This is the ister Vano Merabishvili will be leaving the EU Summit, where the Russian For- main question for now, because the issue prison. Where earlier it was under ques- eign Minister Sergey Lavrov is also of parliamentary elections of 2020 is tion which United National Movement expected. The arrival of one of the main Image source: nzmint.com under “to be, or not to be” tension, the wing would he collaborate with, today architects of the occupation to our coun- only truth well known to all. the dilemma seems to be solved as both try will be highly risky for the govern- for the outcome. ate too. How pragmatic will the latter 2019 ended without any agreement the European Georgia and the UNM are ment: considering it precedes the elec- In any case, 2020 predicts interesting be in using the current political devel- between the government and opposition in the same coalition. Merabishvili will tions, how the government handles the political events not only for the govern- opments for its own as well as the coun- about the election legislation. Although truly be an asset to the opposition, since dilemma could become a prerequisite ment and opposition, but for the elector- try’s future? OSCE / ODIHR Report on Appointments to Georgia’s Highest Court

appointments process in Georgia at a also invited representatives of key organ- BY ANA DUMBADZE critical period in the country’s political izations involved, including the ombud- development,” said ODIHR Director sperson’s offi ce, civil society, the legal Ingibjörg Sólrún Gísladóttir. “We identi- community, and academia, all of whom hile legal reforms fi ed numerous shortcomings on which positively contributed to the quality and regulating the I hope to be following up with the Geor- openness of the hearings. appointment of gian authorities in the near future. With "However, the fact that parliament Supreme Court our recommendations, we aim to con- played a decisive role in the judicial judges in Georgia are tribute to improvements to the legal appointments, and likewise that the pro- Wan important step toward improving the framework for judicial appointments, cess was not safeguarded from partisan independence of the judiciary, they fail and above all the need for any decisions politics, was at odds with international to ensure an impartial process based on on the system to be taken in an atmos- good practice. The monitors noted that clearly defi ned and objective criteria phere of collegiality and dialogue.” members of parliament from all sides of without the infl uence of partisan poli- Following the completion of the nom- the political spectrum used the hearings tics,- the OSCE Offi ce for Democratic ination process before the High Council as a political platform, and the interviews Institutions and Human Rights (ODIHR) of Justice (HCJ) and the fi nalization of did not calm widespread concerns about said in its second monitoring report the fi rst report on the appointment pro- the suitability of many of the candidates”, published last Thursday. cess, ODIHR’s monitoring team went on reads the report. According to the report, the fi nal ple- to observe the hearings of the 20 HCJ ODIHR began monitoring this process nary vote on the judicial appointments nominees, the committee vote, and the following a request from the Georgian took place amidst a political crisis, a fi nal plenary vote. Despite some positive Ombudsperson. All monitors adhered boycott by the opposition, and wide- aspects, their overall assessment found strictly to the principle of impartiality, spread calls for an adjournment. The that neither the HCJ nor the parliament ensuring at the same time that they in decision to proceed in the current polit- took suffi cient measures to ensure objec- no way interfered in the process itself. ical environment further calls into ques- tivity, fairness, or consistency during the The work of the monitoring team started tion the sincerity of the authorities’ stated selection process. in June 2019 and included observation aim to have an open, transparent process “On the positive side, the hearings of the interviews of 49 candidates before that garners wide political support and before the HCJ and parliament were the HCJ and 20 nominees in Legal Issues builds public confi dence in the judiciary. generally open and transparent and ena- Committee. They also closely monitored “We were asked to undertake an inde- bled public scrutiny of the candidates the fi nal voting sessions in the parlia- pendent assessment of the judicial and the overall process. The parliament ment in December 2019.

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