US Vice President Brings Message of Support

A NEW LIFE FOR GEORGIA’S NEW FUTURES FOR GEORGIA’S ALI AND NINO: A LITERARY COOKING OIL ABANDONED BUILDINGS “WHODUNIT”

Investor.A Magazine Of The American Chamber Of Commerce In Georgia geISSUE 58 AUG.-SEP. 2017

AUGUST-SEPTEMBER/2017 Investor.ge | 3 Investor.ge CONTENT 6 US Vice President Delivers Message of Support to Tbilisi US Vice President Mike Pence reaffirmed Washington’s policy to support Georgia and strengthen its alliance with the South Caucasus nation during a two-day trip.

7 Investment News

10 Georgians Say Rugby is the Country’s Most Successful Sport The Caucasus Research Resource Center has found that Georgians believe its rugby team is the country’s most successful sports team, but fans don’t know much about the game.

23 12 Georgia Plans Public Listing for Wind Power Station Georgian Prime Minister Giorgi Kvirikashvili has announced plans to list Georgia’s government-owned wind power station on the stock market.

16 Government Upbeat on Chinese Trade A new free trade deal between China and Georgia is just the latest in a growing number of bilateral economic deals between the two countries.

23 Liquid Gold: A New Life for Georgia’s Cooking Oil 25 An Irish drilling expert has overcome obstacles in local mentality and the market to create a niche for recycling used cooking oil.

25 Mementos and Keepsakes: Buying a Bit of Georgia As tourists travel to Georgia in increasing numbers, a gap between what buyers demand— and what souvenir shops have to offer—has appeared.

27 Tbilisi Neighborhoods: Saburtalo Investor.ge has teamed up with analyst and historian Emil Avdaliani to explore the history of Tbilisi’s great neighborhoods.

29 Forget Berlin, Here is Tbilisi Tbilisi’s club scene is booming. With clubs in old and 29 unused Communist era buildings and a large community of creative and open-minded people, many like to say that Tbilisi is ”the new Berlin.”

31 New Futures for Georgia’s Abandoned Buildings Architects and entrepreneurs are turning old, empty buildings into new ventures, business hubs and hotels.

34 Ali and Nino: A Literary “Whodunit”

38 NEWS ...... 38

4 | Investor.ge AUGUST-SEPTEMBER/2017

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AUGUST-SEPTEMBER/2017AUGUST-SEPTEMBER/2017 Investor.geInvestor.ge | 5 The US vice president noted that “thousands of Georgians have served shoulder-to-shoulder with Americans - in Kosovo, in Iraq, and in Afghanistan.” Pence also repeated US support for Georgia eventually joining NATO and praised the country’s commitment to reforms.

PM THANKS PENCE “We are thankful to America. Geor- gia’s aspiration to maintain peace within the country and in the region remains unchanged. The USA is Georgia’s loyal friend, reliable geopolitical ally, and strategic partner. It is an ally, who we are linked to with common values and global security priorities. Our aim is to regain our place in the US Vice President Delivers family of European states. Over the past few years, we took measures to achieve Euro-Atlantic integration, be it the agree- Message of Support to Tbilisi ment with the EU on Deep and Com- prehensive Free Trade Area and closer US VICE PRESIDENT MIKE PENCE REAFFIRMED WASHINGTON’S cooperation with NATO,” Kvirikashvili POLICY TO SUPPORT GEORGIA AND STRENGTHEN ITS ALLIANCE said, as reported by BBC Monitoring. WITH THE SOUTH CAUCASUS NATION DURING A TWO-DAY TRIP The PM also spoke about the impor- THAT WAS CAPPED WITH A VISIT TO ONGOING US-LED MILITARY tance of US investment in the Georgian DRILLS. economy. S Vice President Mike Pence undermines this enduring principle,” he “We have one of the best business vowed Washington’s continued was quoted as saying on Civil.ge website. environments today with a very low Usupport for Georgia during his corruption and bureaucracy indices and two-day visit to the country’s capital. STRATEGIC PARTNERS low taxes, which is the best opportunity “We are with you, we stand with “We are proud of our friendship and IRU$PHULFDQEXVLQHVVWRJDLQSUR¿WKHUH you,” the US vice president said dur- strategic partnership with the nation and Our aim is to create the best platform in ing a press conference with Georgian the people of Georgia,” Pence said. the region for American business inter- Prime Minister Giorgi Kvirikashvili on He added that “America First does ests and it is noteworthy that American 1 August. not mean America alone.” companies’ interests are involved in the Pence made a point to underscore US large regional infrastructure projects that support for Georgia’s territorial integrity. SHARED BATTLES are being implemented in our country,” “The United States supports Georgia’s Pence also spoke about the two Kvirikashvili said. sovereignty and territorial integrity countries’ bilateral military cooperation. The PM was referring to the involve- within its internationally recognized bor- “Nowhere is the bond between our ment of the Conti Group in the Anaklia ders and under President Donald Trump, two nations stronger than in our shared Deep Sea Port Consortium and a coop- the United States of America will reject effort to promote security and stability eration document between the Anaklia any claim, at any time, by any nation that across the wider world,” he said. Port Consortium and SSA Marine.

6 | Investor.ge AUGUST-SEPTEMBER/2017 GEORGIAN ECONOMY GROWS ³'XULQJWKH¿UVWVL[PRQWKVRI INVESTMENT 4.5 PERCENT *HRUJLDKRVWHGLQWHUQDWLRQDO The Georgian economy grew 4.5 per- travellers (13.4 percent increase), in- cent in the January-May period, Reuters FOXGLQJWRXULVWV SHUFHQW NEWS news agency reported on 4 July, citing increase),” the report noted. RI¿FLDOVWDWLVWLFV INVESTOR.GE PROVIDES Last year, the economy grew just 2.9 GEORGIA RECEIVES $400M IN A BRIEF UPDATE percent in the same period. INVESTMENTS IN FIRST QUARTER ON INVESTMENTS The economy grew 5.3 percent in Georgia received a boost in foreign AND CHANGES IN May, compared to just 2.1 percent in GLUHFWLQYHVWPHQWLQWKH¿UVWTXDUWHURI GOVERNMENT POLICY April. The report credited an increase in DFFRUGLQJWRWKH1DWLRQDO6WDWLVWLFV THAT COULD IMPACT THE remittances and exports for the higher 2I¿FHDJHQGDJHUHSRUWHG BUSINESS ENVIRONMENT. growth numbers. Foreign direct investment was up THE INFORMATION IN SHUFHQWWRPLOOLRQLQWKH¿UVW THIS ISSUE WAS TAKEN NUMBER OF INTERNATIONAL TXDUWHU 4 RI TOURISTS UP The top three countries investing FROM AGENDA.GE, The number of international arriv- LQ*HRUJLDZHUH$]HUEDLMDQZLWK A GOVERNMENT- als increased by 28.5 percent in June million in FDI (24.1 percent of all FDI); SUPPORTED WEBSITE, compared to the same period last year, 7XUNH\ZLWKPLOOLRQLQ)', AND OTHER SOURCES. DJHQGDJHUHSRUWHGFLWLQJRI¿FLDOGDWD percent of all FDI); and the United

AUGUST-SEPTEMBER/2017 Investor.ge | 7 .LQJGRPZLWKPLOOLRQLQ)', SHUFHQWRIDOO)', GEORGIA’S SHUAKHEVI HYDROPOWER PLANT SET TO The top three sectors for investment were transport and OPEN FRPPXQLFDWLRQZLWKPLOOLRQLQ)', SHUFHQWRIDOO Georgian Prime Minister Giorgi Kvirikashvili announced )', UHDOHVWDWHZLWKPLOOLRQLQ)', SHUFHQWRIDOO the country’s Shuakhevi Hydropower Plant will open this sum- )', DQGWKH¿QDQFLDOVHFWRUZLWKPLOOLRQLQ)', mer, agenda.ge has reported. percent of all FDI). +HVDLGSHUFHQWRIFRQVWUXFWLRQKDVDOUHDG\EHHQ “Our country is the only one in the region with investment completed. growth, while all the other countries have an evident decrease. ³,QVHYHUDOLQWHUQDWLRQDO¿QDQFLDOLQVWLWXWLRQVWHDPHG This is why up to a 4 percent increase is a high indicator for XSWRKHOS*HRUJLDEXLOGWKH6KXDNKHYL+33E\LQYHVWLQJ us, but we will keep on ensuring that FDI will become even million in the construction and operation of the power plant,” higher from now on,” Georgian Minister of Economy Giorgi agenda.ge said. Gakharia said. At a ceremony in Adjara, Kvirikashvili thanked Adjaristsqali Georgia— a joint venture of India’s Tata Power and Norway’s ASIAN INVESTMENT BANK LENDS GEORGIA $114 Clean Energy Invest, the International Finance Corporation MILLION (IFC), the Asian Development Bank (ADB) and the European Georgia and the Asian Infrastructure Investment Bank Bank for Reconstruction and Development (EBRD)—for their $,,% DQG*HRUJLDKDYHVLJQHGDPLOOLRQ¿QDQFLQJ contributions to the plant’s construction. agreement for the construction of the Batumi Bypass Road in “Our supreme goal is to substitute locally produced energy the Adjara region, agenda.ge reported. for imported energy in the shortest period of time. To achieve this, we need unity between people and the government, support ADVERTISEMENT from international institutions and the engagement of local and foreign investors,” Kvirikashvili said. 7KHSODQWZLOOHPSOR\ORFDOSHRSOHDQGLVH[SHFWHG WRSURGXFHJLJDZDWWKRXUVRISRZHUDQQXDOO\,WZLOODOVR UHGXFHJUHHQKRXVHJDVHPLVVLRQVE\PRUHWKDQWRQQHV per year, the report said.

GEORGIA EXPORTS FOOD TO QATAR A Georgian company has started exporting blueberries, greens and tomatoes to Qatar, agenda.ge reported, citing information provided by the Georgian Economy Ministry. ³,Q-XQHWKLV\HDUWKHQHHGWR¿QGQHZH[SRUWHUFRXQWULHVDQG companies and especially food-product producing companies has emerged in Qatar. Large Qatari companies addressed the Georgian Embassy LQ4DWDUWRKHOSWKHP¿QGSRWHQWLDOSDUWQHUVLQ*HRUJLD´DQ- nounced Georgia’s Ministry of Economy. “For this reason, representatives from the export-promotion GHSDUWPHQWRIµ3URGXFHLQ*HRUJLD¶FRQWDFWHGPRUHWKDQ private companies and provided all information about these companies to the Qatari side,” read the statement from the Ministry. Uvie’s Berries, a Georgian company, responded to the query, which responded in a contract with a Qatari supermarket chain, Lulu, to supply it with Georgian blueberries and greens, the report said.

8 | Investor.ge AUGUST-SEPTEMBER/2017 AUGUST-SEPTEMBER/2017 Investor.ge | 9 ,

Georgians Say Rugby Country’s Most Successful Sport

THE CAUCASUS he Georgian National Rugby VXJJHVWWKDWWKHSXEOLFUHFRJ- Team’s achievements have been nizes these achievements. According to RESEARCH RESOURCE Tmany in recent years. From the survey, 62% of the Georgian public CENTER HAS FOUND JDLQLQJDXWRPDWLFTXDOL¿FDWLRQIRUWKH think that rugby is the sport in which THAT GEORGIANS 5XJE\:RUOG&XSLQIRUWKH Georgia enjoys the most success. This BELIEVE ITS RUGBY TEAM ¿UVWWLPHWRUDQNLQJWKLQWKHZRUOG DWWLWXGHLVKLJKHVWLQ7ELOLVLDW IS THE COUNTRY’S MOST rugby rankings, the team has obtained compared to other urban and rural areas, SUCCESSFUL SPORTS widespread national support and estab- ZKLFKUHJLVWHUHGDQGUHVSHF- TEAM, BUT FANS DON’T lished a presence on the international WLYHO\1RWDEO\RIIHPDOHUHVSRQ- KNOW MUCH ABOUT THE rugby scene. GHQWVFRPSDUHGWRRIPHQFRQVLGHU GAME. The results of a telephone survey rugby to be is the sport in which Georgia CRRC-Georgia conducted on May 29- enjoys the most success. The public also

10 | Investor.ge AUGUST-SEPTEMBER/2017 EDFNV¿QDQFLDOVXSSRUWIRUUXJE\ sponded that they didn’t know. Notably, ULHGRXWEHWZHHQ0D\ZLWK VXSSRUWHGVRFFHUIROORZHGE\ZKR 28% of men gave the right answer more FRPSOHWHGLQWHUYLHZV7KHSDQHOZDV VXSSRUWHGIXQGLQJIRUUXJE\,Q often than women, who only responded created using random digit dialing. The Georgia won the right to host the World FRUUHFWO\RIWKHWLPHWRWKHTXHVWLRQ results are representative of Georgia and 5XJE\8QGHU&KDPSLRQVKLSIRUWKH CRRC-Georgia’s survey results show have an average margin of error of 2.9%. ¿UVWWLPHRQHRIWKHKLJKHVWOHYHOMX- that Georgians recognize the country’s Want to know what Georgians think niors’ tournaments in the rugby world. rugby achievements and support allo- about another issue or track attitudes The tournament kicked off on May 31 FDWLQJ¿QDQFLDOUHVRXUFHVWRWKHVSRUW over time? Get in touch with us at in Kutaisi and came to an end on June However, many aren’t so knowledgeable [email protected] if your orga- 18, at the Mikheil Meskhi Stadium in of the game’s rules. These results are nization has questions about Georgian Tbilisi. Tournament awareness was high. based on a panel telephone survey car- public opinion. According to the CRRC-Georgia survey results, 55% was aware that Georgia was DERXWWRKRVWWKH:RUOG5XJE\8QGHU Championship. Despite strong support for rugby, many Georgians don’t know much about the game. The survey shows that only 18% of the population knows what the amount of points for a try without a FRQYHUVLRQNLFNLV ¿YHSRLQWV DQGRQO\ 6% of Georgians know how many players are in the scrum for each team (eight players). While 21% gave an incorrect DQVZHURQWKHODWWHUTXHVWLRQUH-

AUGUST-SEPTEMBER/2017 Investor.ge | 11 Georgia Plans Public Listing for Wind Power Station GEORGIAN PRIME MINISTER GIORGI KVIRIKASHVILI HAS ANNOUNCED PLANS TO LIST GEORGIA’S GOVERNMENT-OWNED WIND POWER STATION ON THE STOCK SALLY WHITE tion are to be sold at the Georgian Stock MARKET. THE PLAN Exchange. HAS BEEN PRAISED he georgian government’s deci- A success with this sale will en- AS A WAY TO JUMP- sion to privatise Kartli wind courage the government to expand the START GEORGIA’S Tpower station is feeding into privatisation programme by launching hopes for the country’s green energy CAPITAL AND ENERGY similar sales for hydro, thermal and sector and its capital market. Once a more wind power stations, according to MARKETS. valuation is complete, shares in the sta- market experts.

ADVERTISEMENT Kartli farm has a good investment story hire auditors to evaluate the offer.” to tell, a third of its electricity going as The export market is complex, but exports to Turkey, the rest being used to basically Georgia needs to generate cover peak power demand in the cold more electricity if it is to supply its own winter months. requirements and have tradeable sur- Announcing the move, Prime Min- pluses. However, green energy does not ister Giorgi Kvirkashvili said on the FRPHFKHDS±*HRUJLD¶V¿UVWZLQGSURMHFW government’s Agenda.ge website, “We FRVWPLOOLRQWREXLOG%ORRPEHUJ have decided to make a public offer on pointed out. the Georgian Stock Exchange and we More wind plants are being planned, KDYHRIIHUHGIRUWKH¿UVWWLPH RSSRU- ZLWKWZRPRUHWREHFRQVWUXFWHGLQ tunities) to buy a stake in this project. Kvirikashvili has made his strategy to This is a form of privatisation. I believe grow a green energy industry clear. As this decision will incentivise the stock KHVDLGRQ$JHQGDJH³:HKDYHWDNHQ exchange and our citizens will acquire many serious steps in this direction. the feeling of involvement in on-going Green energy should become one of the projects. Moreover, domestic investors important priorities. “ will also be able to buy the project shares. “The project will be prepared for ROLE FOR STOCK MARKET public offer on the domestic stock mar- Georgia has also been working with ket and this is a very good precedent,” the EU to put in place the necessary he added. regulations and institutions to manage Kartli Wind Power Station was com- LWVHQHUJ\PDUNHWVSUR¿WDEO\$VWKH KICK-OFF FOR GREEN ENERGY pleted last year and is currently owned by ,0)FRPPHQWHG³6WDWHRIWKHDUWLQIUD- The plan has the potential to put new the Georgian Energy Development Fund. structure requires appropriate regulatory life into Georgia’s stock market and at- Speaking to international news agency and commercial mechanisms that ensure tract domestic and foreign investors to Bloomberg, Deputy Energy Minister LWVWHFKQLFDODQGHFRQRPLFHI¿FLHQF\´ Georgian privatisations. Also being tar- 0DULDP9DOLVKYLOLVDLG³7KHVKDUHVDOH The stock market part of the plan is geted is provision of funds to help grow ZLOOEHWKH¿UVWSXEOLFRIIHULQJORFDOO\ important as Georgia’s capital markets the country’s burgeoning green energy a better option than classic privatisation need to catch up with those elsewhere industry. As a kick-off, the 21-megawatt DQGGH¿QLWHO\SRVVLEOHWKLV\HDU:HZLOO in the region. Otherwise it will be hard

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AUGUST-SEPTEMBER/2017AUGUGUSTUSUSSTT-SESESEPTEPTPTETEMMBMBER/2017 Investor.geInvests orr.gge | 13 to achieve the government’s aim of form of investment offered at the mo- BoG’s CEO Kakhaber (Kaha) Kikna- developing a local pension sector and ment. But, it adds “... watch this space! YHOLG]H³:HZLOOEHDFWLYHO\LQYROYHGLQ expanding the insurance market, let alone TBC capital is aggressively expanding its the implementation of the wider pension grow the economy. platform; we are adding more innovative UHIRUPSODQQHGIURP´ The major banks, TBC and Bank of products for our customers.” While the Georgian market can offer Georgia have leapt with alacrity to follow TBC also sees scope for Georgia to attractions to foreign investors – good up on the government’s enthusiasm for develop as a funding and investment hub ERQG\LHOGVGLYHUVL¿FDWLRQDJURZLQJ the local stock market. TBC has done IRUWKHZKROHUHJLRQ³,QIUDVWUXFWXUHLV economy – BoG, like TBC, is being bond placements, the most recent of in place, investment banking experi- careful not to over-hype expectations, ZKLFKLVDPLOOLRQERQGIRU*HRUJLD¶V ence has been accumulating and foreign he added. Georgia’s scale was small Nikora food group. It has been trading interest in this market is growing. Also for many foreign investors, and when this security after placing the bonds with considerable investments were made it came to equities there remained a lot foreign and local investors, and now will into local stock exchanges in order to to be put in place in terms of regulation ensure that it continues to trade actively facilitate trading operations.” and governance. in the market. The Bank of Georgia (BoG), too, has However, BoG is also doing its bit :KLOHDV7%&VD\VLWLVGLI¿FXOW a pipeline of corporates seeking to raise with helping turn the locals into inves- to judge how fast the market will grow funds locally (having dominated inter- WRUVKHVDLG³ZHDUHZRUNLQJLQ given that it is “in its nascent stage” it national bond issuance) and has already conjunction with the National Bank of expects a build-up of new funding on it started to help build a local investor-base Georgia and have developed a program by Georgian companies over the coming IRUWKHPDUNHW5HÀHFWLQJWKHJRYHUQ- RQKRZWRLPSURYH¿QDQFHHGXFDWLRQ months. Both foreign buyers and (with ment’s drive to create a local pensions among Georgian citizens. The program the emergence of a Georgian pension industry, BoG’s broking company, Galt is comprehensive and includes regular industry) local investors are, it says, at- & Taggart, has signed a first private WUDLQLQJV¿QDQFLDOOLWHUDF\ZRUNVKRSV tracted by Georgian bonds. The bank sees pension fund management contract and both in cities and rural areas, courses in bonds rather than shares being the main started managing pension assets. Says universities, etc.”

14 | Investor.ge AUGUST-SEPTEMBER/2017 AUGUST-SEPTEMBER/2017 Investor.ge | 15 Georgian Government Upbeat on Chinese Trade

16 | Investor.ge AUGUST-SEPTEMBER/2017 THE NEW FREE TRADE DEAL BETWEEN CHINA AND GEORGIA WILL ALLOW 94 PERCENT OF GEORGIAN PRODUCTS TO ENTER THE CHINESE MARKET WITHOUT PAYING CUSTOMS FEES. THE AGREEMENT IS JUST THE LATEST IN A GROWING NUMBER OF BILATERAL ECONOMIC DEALS BETWEEN THE TWO COUNTRIES.

AUGUST-SEPTEMBER/2017 Investor.ge | 17 LIKA JORJOLIANI Xi Jinping. I think that we are on the right and wine. track with Georgia. I am very glad that In terms of volume, China is the eorgian goods—including this year we signed this agreement, and second-largest importer (after Russia) wine, iron and steel ore and I hope that it will enter into force before of Georgian wine, the Ambassador said. Gmany, many other products— November,” he said. are heading to China’s 1.3 billion-person The Ambassador noted that China “UNIQUE OPPORTUNITY” FOR market, thanks to the free trade deal has already signed free trade agreements AGRICULTURE signed between the two countries in May. with 22 countries, including 11—like “The free trade agreement with China Under the agreement, 94 percent of Georgia—signed under the One Belt, represents a unique opportunity for the Georgian products and services will be One Road policy. export of some products to the Chinese exported to the Chinese market without “These agreements have a great market. custom fees, at a zero tariff rate. Ambas- VLJQL¿FDQFHDQG*HRUJLDFDQXVHLWV ³&XUUHQWO\ZHGRQRWKDYHVXI¿FLHQW sador of the People’s Republic of China geographic location to develop its links volumes of products to satisfy the Chi- in Georgia Ji Yanchi told Investor.ge that and trade/economic cooperation with nese market, but in the future, free trade WKHDJUHHPHQWLVYHU\VLJQL¿FDQW the CIS, the EU and Turkey. China is will stimulate Georgian producers to in- “The agreement provides good per- the fourth among major trade partners crease the volumes of their production,” spectives for the further development of RI*HRUJLDWUDGHWXUQRYHUIRUWKH¿UVW First Deputy Agriculture Minister Nodar PXWXDOO\EHQH¿FLDOFRRSHUDWLRQDQGSDUW- TXDUWHURIWKLV\HDUUHDFKHGPLO- Kereselidze told Investor.ge. QHUVKLSLWLVDOVRYHU\VLJQL¿FDQWIRUWKH lion,” Ambassador Ji Yanchi said. Currently, the biggest change is likely construction of the Silk Road Economic He noted that Georgia’s main exports to be in the wine sector, he said. Belt initiated by the President of China, to China include alcoholic beverages “After the removal of customs tax,

18 | Investor.ge AUGUST-SEPTEMBER/2017 aW] ] W c RQO\ EXW UDWKHU PDNHV UHIHUHQFH WR DQ\ ODQG LQ JHQHUDO (IIHFWLYHIURP-XO\QHZUHJXODWLRQVDGRSWHGLQOLJKWRIWKH LUUHVSHFWLYHRILWVSXUSRVH7KHELOORIRUJDQLFODZLVKRSHIXOO\ *RYHUQPHQW V Û/DULVDWLRQ SROLF\Ü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éUVWYLRODWLRQWKHSHUSHWUDWRUZLOOEHJLYHQ UHTXLUHPHQWV DUH VDWLVéHG FRPSDQ\ SRVVHVVHG WKH ODQG IRU DZDUQLQJZKHUHDVUHSHDWHGYLRODWLRQLVSHQDOL]HGE\*(/ FRQWLQXHGSDVW\HDUVSDLGDSSOLFDEOHWD[HVDQGSURYLGHVIRUWKH DQGHDFKVXEVHTXHQWYLRODWLRQE\*(/ LQYHVWPHQWSODQDQGSURRIRILQYHVWPHQWWRWKH*RYHUQPHQW 3OHDVHQRWHWKDWXQWLOWKHHQDFWPHQWRIWKHDPHQGPHQWVWRWKH ] WW W] &RQVWLWXWLRQ RI *HRUJLD WKH *RYHUQPHQW KDV VXVSHQGHG 2Q 0D\ DPHQGPHQWV ZHUH LQWURGXFHG WR WKH /DZ RI WUDQVIHUVRIDJULFXOWXUDOODQGVWRIRUHLJQLQGLYLGXDOVRUHQWLWLHVRU *HRUJLD RQ ,QVROYHQF\ 3XUVXDQW WR WKH QHZ DPHQGPHQWV ORFDOHQWLWLHVZLWKIRUHLJQSDUWLFLSDWLRQ6WD\WXQHGWRKHDUPRUH FUHGLWRUVDUHHQWLWOHGWRHLWKHUUHTXHVWYRLGDQFHRIWUDQVDFWLRQV XSGDWHVRQWKHRQJRLQJODQGUHIRUP PDGH SULRU WR FRPPHQFHPHQW RI LQVROYHQF\ SURFHHGLQJV DQG FDXVLQJ GDPDJH WR WKH FUHGLWRUV RU FODLP FRPSHQVDWLRQ RI HW] GDPDJHVZKHUHDVSUHYLRXVHGLWLRQRIWKHODZGLGQRWSURYLGHIRU %/& LV SURXG WR DQQRXQFH DQRWKHU YLFWRU\ LQ WKH ODUJHVW WD[ WKHODWWHURSWLRQ7KHVRFDOOHGFODZEDFNSHULRGZDVLQFUHDVHGWR GLVSXWHLQWKHKLVWRU\RI*HRUJLD:HDFWHGDVOHJDOFRXQVHOVIRU FRYHU\HDUSUHFHGLQJFRPPHQFHPHQWRILQVROYHQF\LQVWHDGRI WKH*HRUJLD VWRSSURGXFHUDQGH[SRUWHURIIHUURDOOR\V*HRUJLDQ PRQWKV+RZHYHULIWKHWUDQVIHUHHLVDUHODWHGSDUW\WRWKHGHEWRU 0DQJDQHVH//&LQUHVSHFWRIXQSUHFHGHQWHGWD[LPSRVLWLRQRI WKHFODZEDFNSHULRGVKDOOQRZFDSWXUHSDVW\HDUVLQVWHDGRI FLUFD *(/ PLOOLRQ )ROORZLQJ XQVXFFHVVIXO RXWFRPH DW WKH \HDU éUVWLQVWDQFHFRXUWWKHFRPSDQ\DSSHDOHGWKHFDVHWR.XWDLVL &RXUW RI $SSHDOV 7KH DSSHOODWH FRXUW UXOHG WKDW WD[HV ZHUH W] h W ] W]WW] WP LPSRVHGZLWKRXWWKRURXJKVWXG\RIPHULWVRIWKHFDVHE\WKHWD[ DXWKRULW\ LJQRULQJ LPSRUWDQW FLUFXPVWDQFHV DQG HYLGHQFHV :LGHO\GHEDWHGELOORIDPHQGPHQWVWRWKH&RQVWLWXWLRQRI*HRUJLD SUHVHQWLQWKHFDVHZKLFKHQWDLOHGPDWHULDOEUHDFKRIVWDWXWRU\ ZDVUHFHQWO\DSSURYHGRQWKHVHFRQGKHDULQJE\WKH3DUOLDPHQWRI SURYLVLRQVRI*HRUJLDQODZ$VDUHVXOWWKHFRXUWKHOGWKDWWKH *HRUJLD7KHODWHVWYHUVLRQRIWKHELOOGHFODUHVWKDWWKHODQGFDQEH FDVHZDVQRWVXIéFLHQWO\SUHSDUHGRYHUUXOHGGHFLVLRQRIWKHéUVW RZQHGRQO\E\6WDWHVHOIJRYHUQLQJDXWKRULW\FLWL]HQRI*HRUJLD LQVWDQFH FRXUW DQG UHWXUQHG WKH FDVH WR WKH WD[ DXWKRULW\ IRU RU XQLRQ RI FLWL]HQV RI *HRUJLD 7KH VDPH ELOO VWDWHV WKDW UHFDOFXODWLRQRIWKHWD[FKDUJHV H[FHSWLRQVIURPWKLVJHQHUDOUXOHPD\EHSUHVFULEHGRQO\XQGHU WKHRUJDQLFODZRI*HRUJLD:HQRWHWKDWXQOLNHSUHYLRXVYHUVLRQRI %HVLGHV%/&KDVVXFFHVVIXOO\FRPSOHWHGOLWLJDWLRQLQWKHFRXUWRI WKHELOOWKHODWHVWHGLWLRQLVQRORQJHUOLPLWHGWRDJULFXOWXUDOODQG éUVW LQVWDQFH LQ WKH éUVW HYHU FRPSHWLWLRQ GLVSXWH DJDLQVW &RPSHWLWLRQ $JHQF\ %/& DFWHG DV OHJDO FRXQVHOV IRU 6XQ 3HWUROHXP *HRUJLD //& *XOI LQ UHODWLRQ WR DSSHDO DJDLQVW LPSRVLWLRQRIPXOWLPLOOLRQ*(/éQHVRQWKHFRPSDQ\IRUDOOHJHG YLRODWLRQ RI FRPSHWLWLRQ OHJLVODWLRQ 7KH 7ELOLVL &LW\ &RXUW HVWDEOLVKHG WKDW WKH &RPSHWLWLRQ $JHQF\ GLG QRW VXIéFLHQWO\ LQYHVWLJDWH UHOHYDQW PDUNHW RPLWWHG WR DQDO\]H NH\ HFRQRPLF D'DYLG$JKPDVKHQHEHOL$YH7ELOLVL*HRUJLD IDFWRUV DQG WKDW WKHUH ZDV QR HYLGHQFH RI YLRODWLRQ RI WKH 7HO FRPSHWLWLRQOHJLVODWLRQE\6XQ3HWUROHXP*HRUJLD//&,QOLJKWRI WKHIRUHJRLQJWKHFRXUWVHWDVLGHWKHLPSRVLWLRQDQGUHWXUQHGWKH FDVHWRWKH&RPSHWLWLRQ$JHQF\

AUGUST-SEPTEMBER/2017 Investor.ge | 19 ZKLFKZDVDVKLJKDVSHUFHQWRIWKH in Marneuli,” Kereselidze said. ship Fund CEO Davit Saganelidze. cost of the product, Georgian wine will $URXQG*HRUJLDQIDUPHUVKDYH 7KHIXQGRI¿FLDOO\FDOOHGWKH*HRU- become more competitive on the Chi- been trained in modern vegetable cultiva- gian-Chinese Fund for the Regeneration nese market,” Kereselidze said, noting tion, with classes both in Georgia and in of Georgia, will create a new investment that Georgia’s agreement with China on China, the Deputy Minister said. “The platform for creating business projects removing the tariff burden on Georgian &KLQHVHJRYHUQPHQWDOORFDWHGPLO- DQGVWDEOH¿QDQFLDOLQVWUXPHQWVDVZHOO wine was “unprecedented.” OLRQ50% PLOOLRQGROODUVLQ as for infrastructure, power engineering, “Other countries were released from To summarize the results of two years of agriculture, industry, tourism, and other WKLVWD[VWHSE\VWHSRYHUD\HDURU work, Georgian and Chinese specialists sectors, he said. 5-year period,” he said. concluded that this experimental base The Georgian-Chinese Fund will Kereselidze was also upbeat about should continue retraining specialists LQYHVWDURXQGPLOOLRQZLWKWKH mineral water and non-alcoholic bev- in order to stimulate the development Partnership Fund holding 49 percent of erage exports to China. The Deputy WKHFDSLWDO DURXQGPLOOLRQ DQGWKH Minister played down fears that Georgia t7KHVHDJUHHPHQWVKDYHDJUHDW Chinese partner, CFC, holding 51 percent will be inundated with Chinese products. VLJQLILFDQFHDQG*HRUJLDFDQXVH DURXQGPLOOLRQ Noting the current volume of Chinese LWVJHRJUDSKLFORFDWLRQWRGHYHORS He said the fund will focus on start- imports—and the fact that China is a net LWVOLQNVu up projects and will only operate in importer of agricultural goods—he said Georgia. The fund will start operating the government does not expect any of greenhouses of such a type in other this year, according to Saganelidze, radical changes. regions of Georgia.” who said a Chinese delegation will visit $VHFRQGWUDQFKHRIPLOOLRQGRO- Georgia in the summer to discuss the CHINA TRAINS GEORGIAN lars is expected to be used to give farmers Georgian-Chinese Fund’s organization FARMERS who are interested in Chinese technology and management. Kereselidze underscored a two-year small grants. There are also plans to fund Chinese training program for Georgian new greenhouses in Georgia’s western FINDING CHINESE PARTNERS farmers as an example of Beijing’s com- Imereti region, he said, adding, however, The Georgian Chamber of Commerce mitment to helping Georgia modernize. WKDWWKHVSHFL¿FVRQKRZWKHIXQGVZLOO and Industry (GCCI) is already working “In Marneuli, we opened a dem- be spent are still under discussion. with Georgian companies in various onstration greenhouse complex that is sectors to help them navigate the ins designed to assist Georgian farmers in CHINESE INVESTMENT FUND and outs of the new trade agreement, the cultivation of vegetables in green- A Chinese company and Georgia’s according to the Head of the Chamber’s houses. With the help of experts from government-run Partnership Fund agreed International Relations Department, China’s south-western Hunan province, to create a Chinese investment fund Giorgi Vekua. VL[ODUJHDQGVPDOOVRODUJUHHQKRXVHV to help other sectors of the Georgian “Georgian companies address us for ZHUHFRQVWUXFWHGRQD¿YHKHFWDUHDUHD economy as well, according to Partner- explanation about what the agreement

20 | Investor.ge AUGUST-SEPTEMBER/2017 GEORGIA’S CURRENT TRADE AGREEMENTS

INFORMATION TAKEN FROM THE MINISTRY OF ECONOMY AND SUSTAINABLE DEVELOPMENTS WEBSITE

0RVW)DYRUHG1DWLRQV 0)1 The majority of Georgia’s trade partners are members of World Trade Organization (WTO); among the WTO member states (164 countries) trade relations are regulated on the basis of MFN principles. *HQHUDOL]HG6\VWHPRI3UHIHUHQFHV *63 The Generalized System of Preferences establishes low-rate tariffs for the base import tariff on goods imported from the ben- HÀFLDU\FRXQWULHVZKLFKIDFLOLWDWHVDFFHVVRIJRRGVIURPGHYHORSLQJFRXQWULHVWRWKHPDUNHWVRIGHYHORSHGFRXQWULHV Georgia has a GSP agreement with the USA, Japan, Canada, Switzerland, and Norway. )UHH7UDGH5HJLPH *HRUJLDKDVDIUHHWUDGHUHJLPHZLWKDOO&,6FRXQWULHV&KLQD VLJQHGLQ0D\ 7XUNH\DQG(XURSHDQ8QLRQ

MULTILATERAL INTERNATIONAL AGREEMENTS ON FREE TRADE Free trade regimes among the CIS countries, with the exception of the Russian Federation, are regulated by the Multilateral Agreement on the Creation of a Free Trade Zone among the CIS countries (1994), as well as by bilateral agreements with the countries Georgia has signed the bilateral agreements. Georgia has not signed bilateral agreements with Kyrgyzstan, Belarus or 7DMLNLVWDQ *HRUJLDLVDOVRDPHPEHURIWKH0XOWLODWHUDO$JUHHPHQWRQWKH&UHDWLRQRI)UHH7UDGH=RQH ZLWKLQWKHIUDPHZRUNRI WKH*8$02UJDQL]DWLRQIRU'HPRFUDF\DQG(FRQRPLF'HYHORSPHQW

BILATERAL INTERNATIONAL AGREEMENTS ON FREE TRADE *HRUJLDKDVVLJQHGIUHHWUDGHDJUHHPHQWVZLWKWKH5XVVLDQ)HGHUDWLRQ$]HUEDLMDQ$UPHQLD8NUDLQH0ROGRYD.D]DNKVWDQ 8]EHNLVWDQ7XUNPHQLVWDQDQG7XUNH\7KHIUHHWUDGHUHJLPHVZLWKWKH5XVVLDQ)HGHUDWLRQDQG7XUNH\XQOLNHWKRVHZLWKWKHRWKHU listed countries, exempt certain goods from the free trade regime.

AUGUST-SEPTEMBER/2017 Investor.ge | 21 EXPANDING BORDERS: GEORGIA agreement with the European Union, SEEKS BIG TRADE DEALS ABROAD ZDVDPLOHVWRQHIRUWKHJRYHUQPHQWKH said, noting that it has created the “op- CHINA, INDIA, THE EU…THE GEORGIAN GOVERNMENT IS portunity to bring European standards to WORKING HARD TO SECURE TRADE DEALS IN THE BIGGEST *HRUJLDDQGWRPDNH*HRUJLD·VOHJLVOD- MARKETS IN THE WORLD. INVESTOR.GE SPOKE WITH DEPUTY tion approximate to EU legislation, which will increase ... the quality and the safety ECONOMY MINISTER GENNADI ARVELADZE ABOUT THE of those products.” GOVERNMENT’S TRADE POLICY AND, FOLLOWING CHINA The DCFTA will also increase the AND THE EU, WHICH TRADE DEALS ARE ON THE AGENDA. FRPSHWLWLYHQHVVRQWKHORFDOPDUNHWDV ZHOODVLQQHZPDUNHWV$UYHODG]HVDLG The limits for Georgian trade are as a platform for regional trade,” he said. ´7KLV LV RXU JRDO :H KDYH VWDUWHG JURZLQJHYHUZLGHUDV7ELOLVLEURNHUVPRUH Noting Georgia’s existing agreements the implementation of these EU agree- and more deals with countries around with its immediate neighbors, countries in ments; the reforms are ongoing. the globe. the region, China and the European Union, :HKDYHDOUHDG\LQWURGXFHGPDQ\ $QDO\VLV DQG GHPDQG DUH GULYLQJ $UYHODG]HVDLGWKHFRXQWU\RIIHUVLQYHVWRUV successful reforms and the process of WKHJRYHUQPHQW·VSROLF\RQWUDGHDJUHH- a platform for regional trade. approximation is anticipated to last for ments, Deputy Economy Minister Genadi 7KH JRYHUQPHQW LV DOVR H[SORULQJ D more than ten years. It is a long process, $UYHODG]HWROG Investor.ge . trade agreement with India, he noted, especially for the animal origin prod- “The foreign trade policy department and there is interest in exploring the pos- ucts,” he said. UHVHDUFKHVWKHPDUNHWVZKHUHWKHUHLVD sibility of launching free-trade agreement +HDGGHGKRZHYHUWKDW*HRUJLD demand for the products in which we negotiations with the United States, he has already had real success exporting KDYHDQLQWHUHVWµKHVDLG said. JRRGV WR WKH (8 PDUNHW GULHG IUXLWV He said that part of that research NLZLSURGXFWVFLWUXVIUXLWQXWV²DQGWKH is also meeting with businesses in the MADE IN GEORGIA procedures to export some processed SULYDWH VHFWRU WR LGHQWLI\ WKHLU PDUNHW $UYHODG]HVDLGWKHJRYHUQPHQWZRUNV FDQQHG YHJHWDEOHV DQG VRPH SUR- interests. “Together, with those aspects, KDUGWRPDNHVXUH*HRUJLD·V´ÀUVWSULRULW\ cessed fruit has already started. we are trying to then analyze which goods” are included in the no-exception $UYHODG]H QRWHG WKDW UHIRUPV DUH countries can be of interest for our coun- OLVWRISURGXFWVDQGWKHFRXQWU\·V´VHQVLWLYL- DOUHDG\ XQGHUZD\ IRU WKH ÀUVW DQLPDO WU\WRKDYHDQ)7$ZLWKµKHVDLG ties” are also protected. origin products as well. ´:HKDYHVXFKDEDVNHWRISURGXFWV ´7KH ÀUVW SURGXFW RI DQLPDO RULJLQ PATH TO INVESTMENT ZKHUHZHKDYHRXUVHQVLWLYLWLHVDQGPRVWO\ ZDV KRQH\ VR RQ KRQH\ ZH KDYH $UYHODG]H QRWHG WKDW WKH JRYHUQ- WKRVHDUHWKHDJULFXOWXUDOSURGXFWVHYHU\- already been granted recognition by PHQWDOVRORRNVDW)7$VDVDYHKLFOHWR WKLQJ²PLQHUDO ZDWHUV ZLQH YHJHWDEOHV the EU: since December 3, 2016 honey DWWUDFWLQYHVWRUV IUXLWVFDQQHGYHJHWDEOHVDQGIUXLWVQRQ has been added to EU legislation in ´$Q)7$LVDSRVVLELOLW\WRDWWUDFWLQYHV- DOFRKROLFEHYHUDJHVOHPRQDGHDQGVXFK the country’s list where it is allowed to WRUVDQGLQYHVWPHQWWRRXUFRXQWU\LQRU- Honey, tea–those are the list of products H[SRUWKRQH\SURGXFWVWR(8PDUNHW« der to increase capacity and introduce where we see the priority interest ... there 7KH%ODFN6HDÀVKDQGWKH%ODFN6HDÀVK JUHHQÀHOGDQGEURZQÀHOGLQYHVWPHQWVLQ are many of them,” he said. products will be the second product,” our country in order to then use Georgia Signing the DCFTA, the free trade he said. means and to ask for help searching for found partners there. Besides that, DQDJUHHPHQWZLWKWKHKHDGRI¿FHRI DSDUWQHULQ&KLQD,WLVYHU\GLI¿FXOWIRU Chinese businessmen were interested the China Council for the Promotion of *HRUJLDQFRPSDQLHVWR¿QGDSDUWQHU in a [Georgian] company that manufac- International Trade (CCPIT). on the Chinese market independently, tures furniture,” he said. The Georgian “It is a Chinese trading organization, as there are communication problems,” Chamber of Commerce and Industry is which includes representatives of com- he said. Vekua noted that the Chamber planning to open an informational cen- mercial segments of the state, and rep- helped organize a trip for Georgian ter where anyone may receive answers resentatives of different organizations. businesspeople to different Chinese concerning the agreement on free trade “It is very good mechanism to es- provinces. with China. He added that Georgia’s tablish trading-economic relations with “Many Georgian manufacturers Commercial-Industrial Chamber signed different Chinese provinces,” he said.

22 | Investor.ge AUGUST-SEPTEMBER/2017 INGE SNIP Well 3 Drilling. Liquid Gold: Six years ago, a friend from Ireland very day, a small minivan cruises told him how he was collecting old cook- through Tbilisi from restaurant ing oil to have it repurposed as biofuels A New Life Eto restaurant, hotel to hotel. by companies such as Shell and BP. In Filled with large metal containers, the WKH(8SHUFHQWRIDOOIXHOVQHHGWR driver has to be careful not to make any come from a renewable source, otherwise for Georgia’s sudden movements, or he risks spill- additional taxes need to be paid. LQJWKHYDOXDEOHORDGKHWUDQVSRUWVROG “Old cooking oil is valuable now,” Cooking Oil cooking oil. Kent tells Investor.ge, “and it could be The minivan is part of Jeffrey Kent’s collected like the jarti [Georgian for QHZYHQWXUHFROOHFWLQJROGFRRNLQJRLO scrap metal] guys collect scrap metal, but AN IRISH DRILLING cleaning it, and sending it to Europe to it wasn’t happening in Georgia.” EXPERT HAS OVERCOME have it repurposed as biofuels. OBSTACLES IN LOCAL Kent, an Irish drilling expert, moved MORE THAN PROFITS MENTALITY AND THE WRWKH&DXFDVXVRYHU\HDUVDJRDIWHU +RZHYHUWKHSRVVLEOHSUR¿WVWKDW having worked in Australia, Indonesia could be reaped from starting a grease MARKET TO CREATE A and Romania, to drill at the Marneuli collection business were not the reason NICHE FOR RECYCLING gold mine in southern Georgia. He cur- Kent and his Georgian business partner USED COOKING OIL. rently owns a drilling company called decided to start it. In Georgia, Kent tells

AUGUST-SEPTEMBER/2017 Investor.ge | 23 Investor.ge, the old cooking oil—which Georgia, however, has no regulations to the general manager. is mainly from cooking fried chicken and in place on the contents of animal feed. bacon—is sold to farmers who come by “The Ministry of Health is more occu- EXPORTED TO THE EU the restaurants and hotels. These farm- pied with making sure kids wash their Kent’s’s company, oillio, is fully ers then use the old cooking oil, mixing hands,” a disappointed Kent says about certified and his oils are thoroughly it with ground corn, to feed it to their the attempts he and his business partners tested. After their employee collects oil, livestock. have made to try change the regulations. LWLV¿OWHUHGOHDYLQJDJUHDV\UHVLGXHRI “It’s like animal cannibalism,” Kent And convincing restaurants and ho- fries, chicken, bacon and other foods. says, seemingly disgusted. And it not tels to sell their old cooking oil to him The residue is sold as well to the EU, only feels unethical to feed chickens with instead of to farmers, even after explain- where companies use it to make soaps. chickens, and pigs with pigs, but it is also ing the dangers of selling to the latter, Unfortunately, producing biofuels quite dangerous, he adds. was not easy either. from the old cooking oil in Georgia When animals eat the remains of their itself is almost impossible, Kent tells own species, prion diseases, a group of THREE YEARS OF NEGOTIATIONS Investor.ge. uncommon and deadly brain diseases, ,WWRRN.HQWWKUHH\HDUVWRJHWWKH¿UVW “Not only is there too little old cook- can be spread quickly. These prion container ready, as the only ones want- ing oil, but the government taxes biofuels diseases, such as bovine spongiform ing to join were those with international the same as regular fuels, making it too encephalopathy (BSE)—also called management, well aware of the issue, expensive,” Kent says, adding that it Mad Cow disease—can be transmitted such as the Radisson and the Sheraton. could only work if biofuels would fall to humans as well. In addition to the lack of education under some sort of exception. The European Union banned the use about the dangers of using used cooking “The legislation has to change,” he of animal by-products in animal feed oil in animal feed, farmers pay more for added. after the outbreak of BSE in 1994. The WKHSURGXFW.HQWFDQRIIHUEXVLQHVVHV But this hasn’t stopped Kent, who U.S. implemented a similar feed ban in WHWULSHUOLWHUZKLOHWKHIDUPHUVSD\ just as easily ships and sells it to Europe. $QRXWEUHDNRIDGLIIHUHQWGLVHDVH WHWULSHUOLWHU And recently he also opened an Arme- the so-called Foot and Mouth Disease Kent detailed the trouble he had QLDQRI¿FHZLWKDIRUPHU$XVWUDOLDQFR )0' OHGWRWLJKWHUUHJXODWLRQVLQ interesting local restaurants, noting, worker from the drilling industry and a even though this virus is rarely passed however that McDonald’s recently joined local Armenian, expanding the oil collec- to humans. his initiative, after Kent was able to speak tion business beyond Georgia’s borders.

24 | Investor.ge AUGUST-SEPTEMBER/2017 NINO BAKRADZE “Cultural monuments are not the only Mementos and part of cultural resources. In this regard, ine, felt scarves, enamel the level of services directed to cultural Keepsakes: jewelry—Georgia’s tradi- resources … is quite low in Georgia. Wtional products and crafts 6SHFL¿FDOO\WKHUHDUHQRVSHFLDOWRXUV are widely available in the capital of for visiting museums, and different en- Buying a Bit of Tbilisi and other major cities. tertaining facilities do not exist at cultural But while the souvenir market has heritage sites. The souvenir business is Georgia grown exponentially over the past sev- at a low level of development, etc.,” eral years, expanding to include chic she was quoted as telling the Georgian bags and designer goods, as well as newspaper Commersant. AS TOURISTS TRAVEL neatly packaged spices and other delica- This is not to say variety has not TO GEORGIA IN cies, there are still gaps between sellers’ improved—the days of only being able INCREASING NUMBERS, inventories and buyers’ expectations, WR¿QGDERWWOHRIZLQHRUDFHUDPLF A GAP BETWEEN WHAT according to tourism industry experts. drinking horn are long gone. Shops, stalls BUYERS DEMAND – and artisans now offer a wider spectrum AND WHAT SOUVENIR MORE THAN DRINKING HORNS of goods, in Tbilisi and elsewhere. But SHOPS HAVE TO OFFER *HRUJLDLVUDQNHGWKRXWRI there is room for improvement, tourism – HAS APPEARED. THE countries in the Travel and Tourism specialists noted. COUNTRY’S SOUVENIR Competitiveness Index developed by the World Economic Forum, scoring above NOT ENOUGH BUSINESS MARKET IS DEVELOPING neighbors Armenia and Azerbaijan but The souvenir stalls at the Tbilisi His- BUT STILL FALLS SHORT OF below Russia and Turkey. tory Museum (also known as Karvasla) VISITOR DEMANDS AND In some areas, like prioritizing travel are lovely, full of handmade crafts and SELLER EXPECTATIONS, and tourism, Georgia scored in the top traditional Georgian wares. ACCORDING TO 45, above all its neighbors. But in cul- But sellers complain tourist spend- ENTREPRENEURS AND tural resources and business tourism, it ing falls short—especially in the winter TOURISM COMPANIES. ranked at the bottom of the scale, under months. Armenia, Azerbaijan, Russia and Turkey. Nino Antelidze, a pediatrician by 7KHVWXG\GLGQRWORRNVSHFL¿FDOO\DW profession, has been producing enamel souvenirs as a factor in a country’s rating. VRXYHQLUVIRUPRUHWKDQ\HDUV6KH But the low score in the area of cultural started her family business six years UHVRXUFHVLVDUHÀHFWLRQRIDODUJHUSURE- ago with her husband and opened a lem in the tourism sector, according to workshop, Nima Enamel House, in the Manana Mertveli, a tourism specialist. Karvasla Tbilisi History Museum.

AUGUST-SEPTEMBER/2017 Investor.ge | 25 In the small shop windows, colorful affordable for tourists,” Komshiashvili PQODULLQ´LWVWDWHG artworks are exhibited. Various types of tells to Investor.ge. The Georgian National Tourism As- jewelry and souvenirs are also for sale, Part of the problem is variety, ac- sociation does not conduct surveys about ZLWKLWHPVSULFHGDWODULDQGKLJKHU cording to Irakli Kabulashvili, the head the souvenir business in the country, or The artworks made by Antelidze and of Omnestour. He noted that his clients VXEVLGL]HDQ\SURJUDPVLQWKLV¿HOGDF- her husband, Irakli Tatishvili, are popular often ask him where they can purchase cording to GNTA spokesperson Giorgi with foreign tourists in the summer, but more “interesting things.” Gabrichidze. that is not enough to support their busi- Kabulashvili also noted that not all But souvenir sales are a factor in ness, she said. tourists are interested in purchasing travel spending, and a way tourism can Giorgi Komshiashvili, who sells local souvenirs. While some groups, help combat poverty, according to the painted wooden souvenirs sculptured often from Western Europe and other World Tourism Organization. near the central Shardeni Street—an area developed countries, spend money on The World Tourism Organization has LGHQWL¿HGWKHVDOHRIWRXU- ism-related products as one of its seven “mechanisms of poverty reduction,” especially if vulnerable communities are included. Sopho Barbakadze, projects assistant at the NGO Elkana, said that the organization started a special program called “Empowering Poor Com- munities and Micro-entrepreneurs in the Georgia 7RXULVP6HFWRU´LQ The project works to generate employment and increase household income for poor and vulnerable communities in the Kakheti and Imereti regions, where there are ongoing World Bank-financed regional popular with tourists—agrees. local crafts and traditional goods, others development projects to support tourism “My friend and I came to this place do not, he said. development and urban regeneration. two years ago. Before that, we had exhib- 6RIDUWKH\KDYHIXQGHGDERXW ited our works near “Kartlis Deda.” For ECONOMIC IMPACT OF entrepreneurs who produce different kind PRUHWKDQ¿YH\HDUV,KDYHEHHQZRUNLQJ SOUVENIRS of souvenirs, she said. in this area. In recent years, the income The general trend for spending, both Elkana and World Bank funds each from this business has sharply declined domestic and of foreign tourists, is up, HQWUHSUHQHXUZLWKVRWKH\ compared to what it used to be,” he said. according to the World Travel & Tourism could buy raw materials or machines to “The number of tourists is quite high, &RXQFLO¶VUHSRUWRQ*HRUJLD produce their goods. but they are not willing to buy souvenirs “Leisure travel spending is expected The grant includes training of entre- despite the low prices. The starting price WRJURZE\SHUFHQWLQWR preneurs in marketing, accounting and of souvenirs is 15 GEL so they may be PQODULDQGULVHE\SHUFHQWWR tourism as well.

26 | Investor.ge AUGUST-SEPTEMBER/2017 period Saburtalo was used as agricul- Tbilisi Neighborhoods: Saburtalo tural territory—and as a training area for martial arts practice. For instance, during INVESTOR.GE HAS TEAMED UP WITH ANALYST AND HISTORIAN Queen Tamar’s reign, Georgian troops EMIL AVDALIANI TO EXPLORE THE HISTORY OF TBILISI’S usually went to Saburtalo “to play ball” GREAT NEIGHBORHOODS. WE BEGIN IN THE OFT-MALIGNED and exercise. SABURTALO. WHILE IT MAY SEEM LIKE A MESS OF TRAFFIC The district started to adopt its AND HIGH-RISE APARTMENT BUILDINGS, IT STARTED OUT AS A modern role as one of Tbilisi’s central TRAINING GROUND FOR QUEEN TAMAR’S TROOPS. residential areas under Soviet rule in EMIL AVDALIANI in another direction of the city, along the WKHVZKHQDSDUWPHQWEORFNVZHUH right embankment of the Mtkvari River, constructed around Pekin and Kazbegi t is clear, with a glance at a map of in what is known today as Saburtalo. Avenues. Soon, the village of Delisi was Tbilisi, that the majority of the city’s linked to Saburtalo (Delisi was initially Idistricts are spread along the River THE “BALL” DISTRICT known as Gdelisi, according to 18th- Mtkvari. Saburtalo’s unique name— “burt” century documents. Later, the letter “G” But even as Tbilisi was growing from PHDQV³EDOO´LQ*HRUJLDQDQGWKHSUH¿[ was lost and it became known as Delisi). what we now consider the Old City and VXI¿[SDLU6DDQG±RPHDQ³IRU´VR Vazha-Pshavela Avenue (the longest Freedom Square toward the modern-day it literally translates as “for balls”—is street in Tbilisi), it was built during the 9DNHLQODWHWKDQGHDUO\WKFHQWX- OLQNHGWRLWVÀDWWHUUDLQ%HFDXVHRIWKH V,QLWLDOO\FDOOHG.RPLQWHUQ D ries, a similar process was taking place flatness of the land, in the medieval world Communist organization) Street,

AUGUST-SEPTEMBER/2017 Investor.ge | 27 it was renamed for one of Georgia’s But with just one major road famous writers, Vazha-Pshavela 6RRQWKHYLOODJHRI'HOLVLZDV connecting central Saburtalo to the (Luka Razikashvili), in 1961. The OLQNHGWR6DEXUWDOR 'HOLVLZDV rest of Tbilisi (through modern- 6DEXUWDORGLVWULFWJUHZVLJQL¿FDQWO\ day Kostava Avenue), there were LQWKHVHFRQGKDOIRIWKHWKFHQWX- LQLWLDOO\NQRZQDV*GHOLVLDFFRUGLQJ WUDI¿FSUREOHPV ry, when residential neighborhoods, WRWKFHQWXU\GRFXPHQWV/DWHU In 1958, Saburtalo was linked known as “ubani” were built. Large to Vake via Delisi road, which was buildings for universities, libraries WKHOHWWHUt*uZDVORVWLWEHFDPH originally known as Guramishvili and cultural and sporting events— NQRZQDV'HOLVL Street (and renamed Tamarashvili like the Sports Palace and several 6WUHHWLQ ZKLFKWRJHWKHU buildings of the Georgian Technical 9D]KD3VKDYHOD$YHQXH WKHORQJHVW with the metro, helped connect the University—popped up around the VWUHHWLQ7ELOLVL LWZDVEXLOWGXULQJ district with the rest of Tbilisi as district. the city grew. WKHV Today, Saburtalo, with a popu- UNIVERSITIES AND ATHLETES ODWLRQRILVRQHRIWKH Saburtalo was also unique due LQJVIRRWEDOOEDVNHWEDOO¿HOGVDQGODUJH most heavily populated districts to the fact the district was free of facto- recreational zones. This made the area in Tbilisi. What started as farmland and ries and manufacturing facilities. Instead, attractive for scholars, artists, sports- a military training ground for medieval Saburtalo became a hub of university men and others, much like Saburtalo’s Georgian monarchs has turned now into and sports life with university build- neighboring district, Vake. a virtual hub of the capital.

28 | Investor.ge AUGUST-SEPTEMBER/2017 MAARTEN DE BOER ZRXOGKDYHWRUHQWLWLQ.\LYIRU Forget Berlin, HXURV,WJRWGLI¿FXOWVRZHGHFLGHGWR When I saw this building for the ¿QGDSODFHDQGVHWWOH´ Here is Tbilisi ¿UVWWLPH,MXVWIHOOLQORYHZLWK Their story is an illustration of the “it,” Tamuna Axander, founder of GHYHORSPHQWWKDW7ELOLVLLVVHHLQJ\RXQJ TBILISI’S CLUB SCENE the techno club Khidi, says. We slowly creative people with a love for music who IS BOOMING. WITH walk up a dark staircase in a building that build up something new in places that CLUBS IN OLD AND is located inside the Vakhusti Bagrationi were abandoned. Tamuna believes this is UNUSED COMMUNIST- Bridge. “It is amazing to have a club in a only the beginning. “You cannot distin- bridge, with such a huge industrial space. ERA BUILDINGS AND A guish clubs from museums anymore. It You cannot imagine how big it is. There LARGE COMMUNITY OF is a cultural movement. Before, clubbing DUHHYHQ¿YHWXQQHOVWKDWDUHHDFK was seen as something dangerous for CREATIVE AND OPEN- meters long.” young people. Now it’s for everybody, MINDED PEOPLE, MANY After years of involvement in the there is no age to it anymore. It’s a part LIKE TO SAY THAT TBILISI IS organization of festivals, Tamuna and of life.” ”THE NEW BERLIN.” JUST her husband decided that it was time to LIKE IN BERLIN IN THE ’90S, invest in a permanent place for a club. THE RISE OF TBILISI’S CLUB SCENE CLUBBING IN TBILISI IS NOT “We really had to invest a lot of money Even though the Russo-Georgian war JUST ABOUT MUSIC. “IT’S A to organize a quality event. When we only lasted three days, its implications MOVEMENT.” needed a projector for 3D-mapping, we for economic and cultural life were tre-

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14, Kostava Street, 0108 Tbilisi, Georgia [email protected] | +995 32 2020999AUGUST-SEPTEMBER/2017 Investor.ge | 29 mendous. Though commercial festivals Georgia. It is a great moment to live in violence against women,” Getia tells continued to be organized, underground this country,” Gabunia says. Investor.ge. initiatives—like the record store and DJ-school “Loud”—ceased to exist. But SOCIAL MOVEMENT BIG BUSINESS underneath, something was boiling. The But clubs became more than places The founders of these underground WXUQLQJSRLQWFDPHDURXQG that just offer high-quality music. “What techno clubs have been able to establish ¿UVWZLWKWKHRSHQLQJRI³*DOOHU\´D is interesting is that nightclubs in Tbilisi a successful business. Forbes Georgia restaurant and nightclub that offered a have become places of social change,” called Bassiani “a startup that has man- space to both music lovers as well as Gabunia says. “We have become social aged to create a world-class clubbing members of the LGBT community, and activists that are involved in many move- product.” And the number of tourists later with the opening of the electronic ments—whether it is about supporting YLVLWLQJWKHVHFOXEVLVVLJQL¿FDQWO\LQ- music club Mtkvardze. LGBT rights, improving the environment FUHDVLQJ³$ERXWRIDOOWKHYLVLWRUV “There was no club with a good or about aiding vulnerable people that of Mtvkardze are tourists,” according to sound system yet. We wanted to pay are in need of our support,” he explains. Gabunia. “We are realizing that we have more attention to the music quality and According to Tato Getia, Georgia’s become a business. Even the government acoustics,” Mtkvardze founder Keta isolation due to several wars—and the has now decided to organize festivals and Gabunia says. “My husband had been many economic, political and social bring international DJs. They are trying in the business for 12 years, organizing crises it has experienced—are impor- to make this sphere more popular, be- festivals sponsored by tobacco brands. tant explanations for why Tbilisi is now cause they see that tourists are traveling We just wanted to experiment. When seeing such development in its cultural here to visit clubs like ours,” Gabunia I saw this iconic building on the river life. Together with two partners, Getia explains. Indeed, music has put Georgia 0WNYDULDIRUPHU¿VKUHVWDXUDQWWKDW founded the underground techno club on the map of tourism. This is also il- closed ten years ago, I knew that it was %DVVLDQLDWWKHHQGRI7KHFOXELV lustrated by the yearly organized GEM the perfect venue for our experiment.” literally underground, deeply hidden in Fest (taking place in Anaklia from July What started with an experiment with a a former swimming pool under the Dy- to August), the longest festival in the seven-thousand-dollar investment, led namo Tbilisi stadium. Since it appeared, world. A record number of music tour- to an iconic club that has now already it has been frequently compared to ists are expected this year. “Everybody H[LVWHGRYHU¿YH\HDUV Berghain, Berlin’s most notorious club. is talking about Georgia,” Khidi founder Currently Tbilisi’s club life is see- The founders have a clear vision. Tamuna concludes. “There is something ing momentum. “The combination of “Bassiani is known not only for enter- happening here. And Tbilisi is a welcom- FKHDSHUGLUHFWÀLJKWVE\FRPSDQLHVOLNH tainment, but also as [a place for] social ing place, the food is good and hospitality WizzAir—and young people who started movement and for its political context, is in our DNA. Each artist that is playing to travel and opened their eyes—and of ZKLFK¿JKWVDJDLQVWLQHTXDOLW\DQGRS- here is saying what a great place this is. increased internet usage has had a strong pression in society—such as against 7KDW¶VKRZPDQ\SHRSOH¿QGRXWDERXW LQÀXHQFHRQWKH\RXQJJHQHUDWLRQRI inhuman drug policy, homophobia and Georgia. Because of its techno scene.”

30 | Investor.ge AUGUST-SEPTEMBER/2017 New Futures for Georgia’s Abandoned Buildings ARCHITECTS AND ENTREPRENEURS ARE TURNING OLD, EMPTY BUILDINGS INTO NEW VENTURES, BUSINESS HUBS AND HOTELS.

INGE SNIP DGPLWVGXULQJRXULQWHUYLHZDWWKH¿UP¶V Hospitality Group, which started out by other project, the Chinese City at the transforming former hotels to new hotels, RURYHU\HDUV.XWDLVL¶VIRU- edge of Tbilisi Sea. “But the renovation ¿UVWZLWK+ROLGD\,QQ±DIRUPHUKRWHOLQ mer pride – the automobile plant work has been really impressive.” which Internally Displaced People lived FHPSOR\LQJRYHUSHRSOH Hualing Group bought the plant to DIWHUWKHFRQÀLFWLQWKHVDQGWKHQ in Soviet Union times – had been left create a free economic zone in Kutaisi, an old sanatorium - spa - in Kazbegi. abandoned. The structures of the fac- DQGDIWHURSHQLQJLWVGRRUVLQLW Soon the group was completely remodel- tory buildings and warehouses were still currently is the fastest-growing free ing a former publishing house in Tbilisi standing, although most of the buildings economic zone of the four in the country. into a hotel. had missing roofs and windows. But the former automobile plant in “We try to buy old buildings with a But when the Chinese investment Kutaisi is not the only example Georgia history, and not start from scratch,” says ¿UP+XDOLQJ*URXSERXJKWWKHKHFW- has seen of an old Soviet factory being Levan Berulava, the general manager at are plant from the government in a priva- repurposed into something new. Rooms Tbilisi. “We believe history and tization auction, they were determined to the story matter. And we hope others will keep the place’s history alive. “HISTORY AND THE STORY follow us in preserving history by keep- “I’d personally rather have some- MATTER” ing the buildings’ stories alive.” thing like Dubai,” General Manager The most visible and popular trans- And with their latest project, trans- of the Hualing Group Josef Nibladze formations have that been of the Adjara forming an old sewing factory in a run-

AUGUST-SEPTEMBER/2017 Investor.ge | 31 down old residential area into a cultural buildings, Kintsurashvili explains. “The the value is, the historical legacy,” Zaa- and creative hub with workshops, bars, architects are lazy, it’s much easier to lishvili tells Investor.ge. cafes, and a hostel, their work is being break something down and build some- The young architect and her team noticed. thing new, than to renovate an old build- have been selected to preserve, renovate, ing,” she says. DQG¿QGDVROXWLRQWRUHXVHWKHROG6RYLHW GROWING TREND She adds that construction companies mosaic monument on the military high- Georgian architect and urban design- often cite old, Soviet standards for hous- way to Kazbegi. And the team is putting er Anna Kintsurashvili says the work of ing, arguing that the existing buildings all its efforts to keep the mosaic in the the Adjara Hospitality Group is setting a are older than they were planned to be, forefront, making it more accessible to trend, albeit small, in adaptive reuse that and are now dangerous. “That’s often not people with disabilities, and develop a she hopes others will follow. “We can the case; just some simple things need to small cafe - which will blend in - for argue about how well the Holiday Inn be replaced,” Kintsurashvili says. visitors to rest next to the mosaic. was done,” Kintsuarashvili tells Investor. Architect and CEO at IDAAF Archi- Preserving Soviet-era structures - like ge over the phone, “but their work with tects, Nanuka Zaalishvili, agrees with factories and monuments - is both impor- Fabrika and Rooms is impressive.” Kintsurashvili, but notes that citizens’ tant and prudent, notes Mate Zosiashvili, Adaptive reuse is a common global growing understanding of the importance senior executive investor relations at the process whereby old sites and buildings of the country’s Soviet legacy means it Hualing Kutaisi free industrial zone. are being transformed and/or reused, is not as easy to tear down buildings as “Soviet structures and construction often targeting industrial sites as cities it used to be. are very strong and solid,” he tells In- grow and manufacturing moves to the Together with her team, Zaalishvili, vestor.ge at the former automobile plant outskirts of the city. who founded the architectural legacy- that they are transforming into a useable But Georgia, with its vast amount oriented online magazine IDAAF, has site for factories, trade companies, and of “forgotten” industrial sites that were specialized in adaptive reuse by rein- manufacturers. ORRWHGGXULQJWKHVRFDOOHGGDUNV forcing old structures and adding new “We need to use all of the aspects has seen an increase in the new construc- structures to extend spaces. “When we of our history to build a new and better tion instead of renovating the existing VWXG\DQROGEXLOGLQJZH¿UVWDVNZKDW future,” he adds.

32 | Investor.ge AUGUST-SEPTEMBER/2017 ADVERTISEMENT

AUGUST-SEPTEMBER/2017 Investor.ge | 33 Ali and Nino: A Literary “Whodunit”

ANYONE WHO GOES TO THE CAUCASUS SHOULD READ THE NOVEL ALI AND NINO. IT IS A REMARKABLE STORY, NOW A MOVIE, WHICH TAKES PLACE BETWEEN BAKU, AZERBAIJAN, AND TBILISI, GEORGIA, BEFORE AND DURING THE OCTOBER REVOLUTION IN THE RUSSIAN EMPIRE. THIS IS A STORY OF THE BEAUTIFUL AND ROMANTIC LOVE BETWEEN NINO, A CHRISTIAN GIRL FROM TBILISI, AND ALI, A MUSLIM AZERBAIJANI OF NOBLE ORIGIN. A HISTORY OF LOVE FIGHTING TO BE FREE FROM PREJUDICE AND NATIONAL OR RELIGIOUS BARRIERS—IT’S A STORY FOR OUR TIMES.

ou can read this fascinating LQ.LHYLQWRDZHDOWK\-HZLVKIDP- register or publish books in Germany or novel in one sitting. More LO\DQGFRQYHUWHGWR,VODPDW $XVWULD$OLDQG1LQRZDV¿UVWSXEOLVKHG Yintriguing, however, is the He spent his childhood in Baku as LQ*HUPDQLQLQ9LHQQD$IWHULWV literary detective mystery involving the the son of a rich oil baron, then, in 1918, ¿UVWWUDQVODWLRQLQWR(QJOLVKLQWKHHDUO\ real author of the book. With every new after the Russian Revolution, he and his VWKHERRNEHFDPHLQWHUQDWLRQDOO\ investigation and revelation, a fascinat- father managed to escape the violence popular worldwide and has been trans- ing story reveals new twists as interesting in Azerbaijan through Turkmenistan and ODWHGLQWRIRUHLJQODQJXDJHV,Q as the novel itself. Iran. They continued on to Germany and an American writer, Tom Reiss, wrote Austria and, eventually, Nussimbaum The Orientalist, about the unusual life THE STORY OF KURBAN SAID moved to Italy, where he lived until his story of Nussimbaum. For many years the author of Ali and GHDWKDWDJHIURPDUDUHEORRGGLVHDVH Nino was believed to be Kurban Said, a The entity known as “Kurban Said” MYSTERY SURROUNDING THE pseudonym said to belong to Essad Bey, helped to register a friend of Nussim- AUTHOR alias Lev Nussimbaum, the author of baum’s, the Austrian Baroness Elfriede There is a lot of mystery surrounding numerous books, novels and biographies Ehrenfels, because during the Third the identity of the author of Ali and Nino. popular during his lifetime. He was born Reich it was impossible for Jews to Understandably perhaps, for Azerbai-

34 | Investor.ge AUGUST-SEPTEMBER/2017 jan—especially after it had emerged from immigrated to France where his brother cleaning them, he would send me into the the Soviet sphere in in 1991—it seemed OLYHG+HUHWXUQHGLQWR¿QGKLV ¿HOGVZKHUH,ZRXOGZRUNXQWLOR¶FORFN much more appropriate if the author was country brutally Sovietized by the Bol- in the evening. In addition to meals, he of Azeri origin. sheviks. He began teaching languages JDYHPH¿YHIUDQFVZKLFK,VSHQWRQ ,QDQ$PHULFDQPDJD]LQH and translated some Russian works into cigarettes and haircuts,” Chamanzaminli called Azerbaijan International (AI) Azeri. He wrote several novels under wrote. conducted a study to determine the his pen-name of Chamanzaminli and, Blair and her team believe that this real author of this novel. Betty Blair, LQKHZDVUHSUHVVHGGXULQJWKH was the path by which the Chamanza- the publisher of AI, claims she was Stalinists purges and accused of being a minli diaries fell into the hands of Lev inspired by pure curiosity, because prior counter-revolutionary. Just before his ar- Nussimbaum. The publisher probably to releasing the issue of the magazine rest, he burned many of his manuscripts. believed it was Nussimbaum because he dedicated to Ali and Nino, “We wanted He died in the Soviet Gulag in 1942. already had a decent literary career under to recheck some Azerbaijani scientists’ the name Essad Bey. According to the au- research, according to which the author SHARED DESTINY thors of the study, Nussimbaum received of the novel Ali and Nino was not Lev Even though they were of different and read from his German agent, Werner Nussimbaum, but an Azerbaijani, Yuzif ages and origins, Chamanzaminli and Schendel, manuscripts of unknown and Vazir Chamanzaminli.” Nussimbaum had similar destinies. They unpublished authors, many of whom, like The AI study was conducted in ten had wandered around the world after Chamanzaminli, were emigrants. In one languages and included the countries the tragic events following the collapse of Nussimbaum’s letters, he even warns of Azerbaijan, Turkey, Italy, Austria, RIWKH5XVVLDQ(PSLUHWU\LQJWR¿QG Schendel against printing so many books *HUPDQ\*HRUJLDDQG,UDQ$ERXW themselves again. at the same time, because “this can lead people were interviewed, including %HWW\%ODLUH[SODLQHG³)RXUHPSLUHV WRVXVSLFLRQRIEHLQJWRRSUROL¿F´ Tbilisi-based scholars Zaza Aleksidze of the six empires in the world collapsed Blair notes, however that it cannot be and Tamar Injia, as well as descendants GXULQJWKH\HDUV±:H¶YHJRW denied that Lev Nussimbaum worked on of the Austrian Baroness Elfriede Eh- the Ottoman Empire, the Russian Em- Ali and Nino³,WLVQRWWRVD\WKDW1XV- renfels. At the Institute of Manuscripts pire, the Austro-Hungarian Empire and VLPEDXPGRHVQRWKDYHKLV¿QJHUVLQWKH in Baku, Chamanzaminli’s diaries and the German Empire collapsing. So you ERRN+LV¿QJHUVDUHFOHDUO\LQWKDWERRN stories were found to contain evidence of KDYHDQLQFUHGLEOHLQÀX[RIUHIXJHHVLQWR He is a ‘cut and paste’ author. You take it his contacts with German publishers and capital cities, especially in Europe. How here, cut and paste it there, into the next the family documents of Lev Nussim- are they going to survive? How do they book. This is what Lev Nussimbaum did. baum. As a result of the research, which WDNHLWLQWHOOHFWXDOO\"$\HDUROGPDQ And we can see the similarity—Yes, his lasted several years, AI unexpectedly from one of these countries has his own ¿QJHUSULQWVDUHFOHDUO\LQWKLVERRNKH came to the conclusion that, most likely, language and is able to use it. What do was part of it.” the author of Ali and Nino was not Lev you do if you come to Germany or to Nussimbaum, but the Azerbaijani writer London? He has no language skills or FOLLOWING THE FOOTSTEPS OF Chamanzaminli. “At least, according to networks, and he is hungry.” ALI AND NINO the magazine, the records of Chaman- Chamanzaminli’s story Notebook To establish the truth, more work zaminli, as well as many facts from his of a Refugee narrates the grave sort of is required in the literary archives of biography, testify to this,” Blair said. emigrants to France who were forced to Germany and Austria. The copyright on Chamanzaminli was an Azeri writer, sell the fruits of their labor for nothing. the novel still belongs to the heirs of the statesman, historian and folklorist from ³«,KDGEHHQ¿UHGIURPP\MREDW Austrian Baroness and this complicates a noble Azeri family. His real name was the factory, and since then I wasn’t able the situation, despite the fact that Elfriede Yuzif Mirbaba oghlu Vazirov and he was WR¿QGDQHZMRE+XQJHUZDVH[KDXVW- Ehrenfels herself never claimed any ERUQLQLQWKHWRZQRI6KXVKD LQJPH,ZRUNHGLQDYLOODJHIRU¿YH PRQHWDU\EHQH¿WGXULQJKHUOLIHWLPH,Q )URPWR&KDPDQ]DPLQOL months. My employer used to wake me her private correspondence she stated ZDVWKH¿UVWDPEDVVDGRURILQGHSHQGHQW at 5 o’clock every morning. I looked that she did not write this novel. Azerbaijan to Turkey, after which he DIWHUHLJKWKRUVHVDQG¿IWHHQFRZV$IWHU An eccentric man and a self-created

AUGUST-SEPTEMBER/2017 Investor.ge | 35 myth, Lev Nussimbaum was undoubt- “I want to create a complete over- about two Azerbaijani immigrants, Yusif edly a very talented and successful view of when and in which language Kahraman und Mustafa Türkekul, who writer. No wonder he still has a lot of fans this book was published. In Baku, I was read these reviews and then immediately around the world. One of them is the Ger- ORRNLQJIRUDUDGLRPDQXVFULSW,W bought the book and were amazed at how man book publisher and collector of Ali is a translation of the novel from Turkish truthfully and precisely places, names and Nino novels, Hans-Juergen Maurer LQWR$]HUEDLMDQLZULWWHQVSHFL¿FDOO\IRU of famous families, and many historical from Frankfurt am Main. Maurer is prob- Radio Liberty in Munich to be broadcast details were described in it. They began ably one of the greatest experts on the to Azerbaijan. I found this manuscript in to try and solve the riddle of who Kurban novel. He has 138 copies of Ali and Nino the national archives,” he said. Said was. in his collection, as well as other books Taking into account the publication After putting all the facts together written by Essad Bey, including several history of the novel, one conclusion ap- that they knew about Azerbaijan during with the author’s handwritten signature. SHDUVREYLRXVWKHVWRU\RIWKHDXWKRUVKLS that period, and about Yuzif Vazirov, they Although he has been obsessed by this of Ali and Nino is, among other things, concluded that the real author was Yuzif novel for ten years, Maurer visited Baku highly politicized. Hans-Juergen tells an Vazir Chamanzaminli. Via the immigrant IRUWKH¿UVWWLPHRQO\ODVW0D\WRIROORZ interesting story about what happened information grapevine, this information the footsteps of Ali and Nino. I met him after this novel was published in English was soon leaked into Soviet Azerbaijan. at the bookstore “Ali and Nino” at the LQE\5DQGRP+RXVH In the USSR, the book was banned, Square of Fountains. $IWHUWKH¿UVW(QJOLVKSULQWLQJRIWKH as it carried an ardent-though-underlying “My goal is a complete bibliography novel, press reviews were published im- anti-Soviet message. In the storyline, of the novel Ali and Nino,” he said. mediately. Hans-Juergen tells me a story a common theme is the idea that the

36 | Investor.ge AUGUST-SEPTEMBER/2017 guarantee of happiness for the main Hans-Jurgen explains. Ali and Nino manuscript has never been characters is the establishment of an After this the family was left in peace, IRXQGVRLWLVGLI¿FXOWWRMXGJHKRZ independent Democratic Republic of according to Maurer, but after the fall of much Essad Bey brought to the novel, Azerbaijan. Chamanzaminli’s family, the Berlin Wall and the breakup of the how much he borrowed, or whether he residing in Baku, immediately encoun- Soviet Union, “the Iron Curtain fell and can be accused of plagiarism. tered serious problems with the KGB and everything turned upside down. Chaman- The story around the authorship of appealed to Baku scholars to prove their zaminli’s family began to assert that the Ali and Nino contains many mysteries father had not written the novel. author of Ali and Nino was indeed their and still causes fierce controversy in The scholars began research, led by father,” Hans-Juergen Maurer explains. literary circles around the world. Azeri linguist Abas Samanov and helped Ali and Nino, as well as the history In Baku, the owner of the bookstore by his friend and German translator, of the book’s author, will still challenge chain Ali and Nino, Nigar Kocharli, Achmed Schmiede. “They surmised that historical researchers for years to come. VWDWHG³,IDSHUVRQGLGQRWZDQWKLV Essad Bey and Chamanzaminli could not Disputes and questions continue to arise authorship to be known, he did every- possibly have met in Europe and that they about the true author of the novel, and thing so no one would reveal who he also could not even have met because the include studies in Georgia by Tbilisi UHDOO\ZDV([DFWO\\HDUVDJRWKLV Azerbaijani writer was much older than scholars Zaza Aleksidze and Tamar Injia. man wrote his manuscript, left it and then Nussimbaum. In addition, they studied They point out that in Ali and Nino, Es- disappeared. He did not want us to know the stylistic means used in the novel, and sad Bey borrowed entire passages from who he was, and I think we should treat came to the conclusion that Chamanza- a book by the Georgian writer Grigol his decision with respect. Let this remain minli was not the author of the novel,” Robakidze. Unfortunately, the original forever a secret.”

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Independence Day 54 Picnic

39 AMCHAM REACHES OUT TO US 47 MEMBER PROFILE: PWC CONGRESS 48 MEMBER PROFILE: WISSOL 40 FOREIGN MINISTER MEETS AMCHAM MEMBERS 49 MEMBER PROFILE: DINEHALL

41 AMCHAM MEMBERS MEET U.S. 50 MEMBER DIRECTORY AMBASSADOR 54 SOCIAL: INDEPENDENCE DAY 42 AMCHAM MEMBERS MEET PICNIC MINISTER ZURAB ALAVIDZE 58 SOCIAL: COCKTAIL RECEPTION AT 43 AMCHAM DISCUSSES JUDICIARY TIFLIS VERANDA REFORM 59 SOCIAL: AMCHAM COCKTAIL 44 NEW MEMBERS RECEPTION, USAID/CSR CLUB PRESENTATION 46 MEMBER PROFILE: UNION OF BUSINESS LADIES

38 | Investor.ge AUGUST-SEPTEMBER/2017 NEWS

AMCHAM GEORGIA REACHES OUT TO US CONGRESS The US government has carried out LPSOHPHQWHGDVLWZRXOGVLJQL¿FDQWO\ Senate Appropriations, Armed Services some great new initiatives in the last cut major US programs in Georgia. In and Foreign Relations committees as six months, but this has occurred at the order to communicate our concerns on well as the House, Appropriations, Ways same time as the White House has of- this issue, AmCham wrote to 86 US and Means and Budget Committees, as fered some troubling signals. The White Senators and Congressmen and women well as the Georgia Caucus. We plan +RXVHSURSRVHGEXGJHWIRU about recent US policy and planned to follow this letter with an AmCham is could be particularly problematic, if policy in Georgia. This went largely to Delegation to DC in the fall.

The Honorable Bob Corker 6''LUNVHQ6HQDWH2I¿FH%XLOGLQJ :DVKLQJWRQ'&

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5H$P&KDP*HRUJLD¶V&RPPHQWVRQ86*RYHUQPHQWDO6XSSRUWWRWKH&RXQWU\

Dear Senator Corker,

I am writing to you on the behalf of the American Chamber of Commerce of Georgia to express our gratitude for the continued commitment by the US Government towards Georgia, and to express some concerns about the White House’s proposed budget cuts. We are writing to you as a long term supporter of Georgia and in your capacity as the Chairman of the Foreign Relations Committee. You may also remember that we PHWZLWK%HQ3XUVHUDQG-RKQ5DGHUIURP\RXURI¿FHODVW\HDU :HKDYHEHHQYHU\HQFRXUDJHGE\WKHELSDUWLVDQSDVVDJHRI+RXVH5HVROXWLRQDQGSURSRVHG6HQDWH5HVROXWLRQWKDWH[SUHVVVXS- port for the territorial integrity of Georgia as well as the increased funding provisions of HR 244 and the ban on US funding to countries that recognize the independence of Georgia’s occupied territories. We are also in full agreement with the most recent vote to increase sanctions against Russia. The meeting that took place last month between Georgian Prime Minister Kvirikashvili, President Trump and Vice President Pence was another indication of the continued strong relationship between the US and Georgia. Unfortunately, while these actions have been extremely well received, the budget recently proposed by the White House would seem to PLWLJDWHWKRVHHIIRUWV,QSDUWLFXODUZHDUHZRUULHGDERXWWKHVLJQL¿FDQWSURSRVHGFXWVWR86$,'SURJUDPVDQG)RUHLJQ0LOLWDU\)LQDQFLQJ In Georgia, the cuts would materially affect continuing Westernization efforts in the country and be perceived by some as a reduction of US VXSSRUW86¿QDQFHGGHYHORSPHQWSURJUDPVKDYHEHHQFULWLFDOLQKHOSLQJWRSURGXFH*HRUJLD¶VVXFFHVVVWRU\DVWKHPRVWVWDEOHGHPRFUDWLF DQGSUR:HVWHUQFRXQWU\LQWKHUHJLRQ)XUWKHU86PLOLWDU\DVVLVWDQFHKDVKHOSHG*HRUJLDWREHFRPHDVLJQL¿FDQWDQGHIIHFWLYHFRQWULEXWRUWR NATO missions in Kosovo, Iraq and Afghanistan. America’s support has also provided geopolitical security in the face of Russian pressure and we are concerned that such a large decrease will be taken by some to suggest a reduction in that support. This perception could also encourage increased Russian aggression in the region. Therefore, we hope that you will recognize that Georgia is a worthy exception to many of the planned cuts. $VD¿QDOQRWHZHDUHSODQQLQJDQRWKHU$P&KDPGHOHJDWLRQYLVLWWR:DVKLQJWRQ'&ODWHUWKLV\HDUDQGORRNIRUZDUGWRPHHWLQJZLWK\RX and your staff to discuss these and other important issues, including a proposed bi-lateral Free Trade Agreement between the US and Georgia. Again, thank you for your continued support of and to Georgia.

Respectfully,

Michael Cowgill President of AmCham Georgia

AUGUST-SEPTEMBER/2017/2017 Investor.ge | 39 NEWS

FOREIGN MINISTER MEETS AMCHAM MEMBERS

AmCham Georgia hosted a members’ work of the ministry, the US-Georgia in Georgia and wished its members only luncheon with Minister of Foreign relations and trade-economic updates success. Affairs of Georgia Mikheil Janelidze on between these two countries. The presentation was followed by a June 26, at Radisson Blue Iveria Hotel. Janelidze underlined the importance lively Q&A between members and the The minister presented about current of the American Chamber of Commerce Minister.

40 | Investor.ge AUGUST-SEPTEMBER/2017 NEWS

AMCHAM MEMBERS MEET U.S. AMBASSADOR AmCham hosted a monthly round- table meeting at Holiday Inn on June 14. Ian C. Kelly, U.S. Ambassador to Georgia, presented his political and economic update to attending AmCham member company representatives. The presentation was followed by a Q&A session between AmCham members and the ambassador.

TWO NEW CORPORATE A MEMBERS WERE WELCOMED: Gazelle Finance Georgia LLC, represented by Ms. Stephanie Komsa Conformity Assessment International (CAI) LLC, represented by Mr. Sandro M. Shelia

AUGUST-SEPTEMBER/2017/2017 Investor.ge | 41 NEWS

AMCHAM MEMBERS MEET MINISTER ZURAB ALAVIDZE

AMCHAM GEORGIA HOSTED A MEMBERS’ ONLY LUNCHEON WITH THE MINISTER OF REGIONAL DEVELOPMENT AND INFRASTRUCTURE OF GEORGIA ZURAB ALAVIDZE ON JULY 19, AT HOLIDAY INN HOTEL. THE MINISTER PRESENTED NEW INFRASTRUCTURAL PROJECTS OF 2017 AND THE CURRENT WORK OF THE MRDI. THE PRESENTATION WAS FOLLOWED BY A LIVELY Q+A BETWEEN MEMBERS AND THE MINISTER.

42 | Investor.ge AUGUST-SEPTEMBER/2017 NEWS

AMCHAM MEMBERS DISCUSS JUDICIARY REFORM

AMCHAM MEMBERS DISCUSSED JUDICIARY REFORM WITH RUSUDAN TABATADZE(DEMOCRACY AND GOVERNANCE OFFICE USAID/CAUCASUS) AND PETER DANIS (EU DELEGATION) ON JULY 28 AT FABRIKA. AFTER THE DISCUSSION, AMCHAM HELD A COCKTAIL RECEPTION TO THANK THE SPONSORS OF THE INDEPENDENCE DAY PICNIC FOR THEIR GENEROUS SUPPORT.

AUGUST-SEPTEMBER/2017/2017 Investor.ge | 43 NEWS

CleanTech Ltd. Dentons Georgia LLC Spotcoin LLC Corp A Corp A Corp A &OHDQ7HFK SURYLGHV SURIHVVLRQDO 'HQWRQVLVWKHZRUOG·VODUJHVWODZÀUP Spotcoin is a Crypto-currency trading hygiene systems to hospitality and food GHOLYHULQJ TXDOLW\ DQG YDOXH WR FOLHQWV platform that is managed from Geor- FRPSDQLHV$VWKHGLVWULEXWRURI'LYHUVH\ around the globe. Dentons is the leader gia. The company started operations DQG .LPEHUO\&ODUN WKH FRPSDQ\ FRY- on the Acritas Global Elite Brand Index, LQ 'HFHPEHU RI DQG MXVW UHFHLYHG ers 95% of potential needs of customers D%7,&OLHQW6HUYLFH$ZDUGZLQQHUDQG DQ LQYHVWPHQW WR LQFUHDVH RSHUDWLRQV LQ LQ NLWFKHQ KRWHO URRPV SHUVRQQHO FDUH recognized by prominent business and Georgia and globally. laundry linen care, food processing, OHJDOSXEOLFDWLRQVIRULWVLQQRYDWLRQVLQFOL- VSRWFRLQQHW JHQHUDO DQG VSHFLDO ÁRRU FOHDQLQJ DQG HQW VHUYLFH LQFOXGLQJ IRXQGLQJ 1H[WODZ PDLQWHQDQFH &RPSDQ\·V GHOLYHU\ FRY- Labs and the Nextlaw Global Referral ers all Georgia, with warehouses in Tbilisi, 1HWZRUN'HQWRQV·SRO\FHQWULFDSSURDFK Batumi and Kutaisi. and world-class talent challenge the sta- ZZZFOHDQWHFKJH WXVTXRWRDGYDQFHFOLHQWLQWHUHVWVLQWKH FRPPXQLWLHVLQZKLFKZHOLYHDQGZRUN 'HQWRQV·7ELOLVLRIÀFHRSHQHGLQ ZLWKDWHDPRIKLJKO\UDQNHGODZ\HUV:LWK DOHJDF\GDWLQJEDFNLQWKHWHDP is among the most experienced and re- VSHFWHGLQWKH*HRUJLDQPDUNHW+DYLQJ ZRUNHG RQ PDQ\ RI WKH PRVW LPSRUWDQW M&A and real estate deals, financing transactions and infrastructure projects, litigation and arbitration matters the company offers you unique insights into the FRXQWU\·VOHJDODQGEXVLQHVVHQYLURQPHQW 'HQWRQV LV D IXOO VHUYLFH ODZ ILUP LQ *HRUJLDZLWKNH\FDSDELOLWLHVLQ/LWLJDWLRQ DQG'LVSXWH5HVROXWLRQ&RUSRUDWH%DQN- ing and Finance, Intellectual Property, (QHUJ\*RYHUQPHQWDQG,QIUDVWUXFWXUH ZZZGHQWRQVFRP NEW MEMBERS

44 | Investor.ge AUGUST-SEPTEMBER/2017 NEWS NEW MEMBERS

Murphy Bridge Union of Business Ladies Corp B Non-Profit 0XUSK\ %ULGJH LV UHSUHVHQWDWLYH FRPSDQ\ RI 0XUSK\ 6KLS- 0LVVLRQRI8%/LVWRGHYHORSDQRXWVWDQGLQJQHWZRUNIRUVXF- SLQJDQG&RPPHUFLDO6HUYLFHV/WGRU06&6IRUVKRUWZKLFKLVD FHVVIXOHQWUHSUHQHXUVWRDUUDQJHHYHQWVIRUWKHZHOIDUHRI:RPHQ 8.EDVHGRUJDQL]DWLRQWKDWKDVEHHQRSHUDWLQJRQPDUNHWIRU in Business. These include conferences; forums; masterclasses; more than 42 years. In the nearest future Murphy Bridge plans WUDLQLQJGHYHORSLQJWKHUROHRIZRPHQZLWKIDPLOLHVLQHQWUH- to implement 12 projects in Georgia. The company’s goal is the preneurship; educating young entrepreneurs who come from FRQVWUXFWLRQ RI PRGHUDWH ORJLVWLF FHQWHUV ZLWK FRPSUHKHQVLYH GLIIHUHQWEDFNJURXQGVWRPDNHWKHPSURIHVVLRQDOO\FDSDEOHRI VHUYLFHVDQGWKHLURSHUDWLRQ0XUSK\%ULGJHZLOOLQFOXGHIXOOVFDOH ULVLQJXSLQWKHFRPSHWLWLYHEXVLQHVVZRUOGWRHQFRXUDJHDQG FXVWRPVFOHDUDQFHZDUHKRXVLQJDQGWHUPLQDOVHUYLFHVDVZHOO GHYHORS ZRPHQ RULHQWHG HQWUHSUHQHXULDO SURMHFWV WR DUUDQJH DV 7UXFN 3DUN ODERUDWRULHV DFFRPPRGDWLRQV HWF 7KH ORJLVWLF HYHQWVLQFOXGLQJDXFWLRQVWRSOD\DSDUWLQFKDULW\ FHQWHUZLOOUHOLHYHWUDIÀFMDPVRIWUXFNVDQGFKDRWLFPRYHPHQWV XEOJH RQWKHURDGLQPRVWDWWUDFWLYHUHJLRQRIRXUFRXQWU\IRUWRXULVP 7KHFRPSDQ\OHDGHUVKLSEHOLHYHVWKDWE\DFFHOHUDWLQJWKHÁRZ of transit, their project will contribute to the growth of imports and exports in the region. PXUSK\VKLSSLQJFRP

AUGUST-SEPTEMBER/2017/2017 Investor.ge | 45 NEWS

XXI Century Challenges in Business September 15-16, 2017

Forum: September 15, 2017 Friday 09:00 - 18:30 Biltmore Hotel, Tbilisi, Georgia Gala Dinner at “Gujari” Restaurant 20:00 Complimentary Tours: September 16, 2017

Hosting 200+ national and international delegates including Government authorities, world renowned Business Owners, CEOs, Executives, Investors and Entrepreneurs from all around the Globe

September 16, complimentary tours: the ancient capital - Mtskheta tour and Tbilisi Sightseeing kakheti - craDle of wine - wine tour tbilisi sightseeing and shopping tour

For additional information visit www.ubl.ge

Ketevan Bochorishvili (Tbilisi, Georgia) Natia Sirabidze (Tbilisi, Georgia) Christy Largent (California, USA) Charlie Dove Edwin (UK) Viviane Afene Gille (Reims, France) Maggie Semple (UK) Mako Abashidze (UK) Sanem Oktar (Istanbul, Turkey) Sophie Ibbotson (UK)

46 | Investor.ge AUGUST-SEPTEMBER/2017 NEWS

proudly announces admission RIWKHÀUVW*HRUJLDQSDUWQHU

tional PwC teams within the Assurance, progression and the PwC unique de- Advisory and Tax and Legal practice YHORSPHQWRSSRUWXQLW\ZKLFKWKH¿UP areas to bring value to a broad range of offers to all its employees. local and international clients in various :KDWH[FLWHVPHWREHWKH¿UVW*HRU- industries. gian Partner of PwC is the opportunity “Lasha has been with PwC since July to develop the next generation of PwC DQGKDVVHUYHGWKH¿UPVLQFHWKH Georgia future leaders and continue to HVWDEOLVKPHQWRIRXURI¿FHLQ7ELOLVL innovate and contribute into my country Georgia. It is a historic moment for PwC development,” he noted. *HRUJLDDQGIRU/DVKDDVWKH¿UVWQDWLRQDO Lasha, who has a degree in math- Partner. My team and I are extremely ematics as well as a graduate degree in pleased to have Lasha Janelidze as a new public administration, started his career 3DUWQHULQRXU¿UPDQGORRNIRUZDUGWR LQDXGLWLQJZKHQKHVWDUWHGDWWKH his continued professional contribution ORFDODXGLW¿UP8%&,QWHUQDWLRQDOZRUN- towards the further development and ing in cooperation with PwC. growth of our Georgian practice” - Altaf “My career at PwC started with PwC Tapia, Country Managing Partner, PwC RI¿FHRSHQLQJLQ7ELOLVLLQWKHSRVLWLRQ Georgia. of assistant manager in the Assurance INVESTOR.GE SPOKE Lasha noted the promotion means department and all these 12 years en- TO LASHA ABOUT HIS ³KXJHUHVSRQVLELOLW\WUXVWDQGFRQ¿GHQFH ables me to say that PwC is unique and PROMOTION AND HIS to take PwC practice in Georgia to the special,” he said. FUTURE PLANS AT PWC. next level.” “Continuous thirst to learn and de- “My role will be to lead my team, velop has brought me here… learning 7KHSURIHVVLRQDOVHUYLFHV¿UP3Z& clients and broad range of stakeholders, and development is key driver for me and Georgia (PricewaterhouseCoopers) an- with the PwC global purpose to build this will continue to be more important QRXQFHVWKDWHIIHFWLYH-XO\/DVKD trust in society and resolve important as we move to new global reality with Janelidze has been promoted to a Partner problems. I will now be empowered constant changes, challenges and new within the Assurance Services. along with my fellow partners in the opportunities,” he said. Starting from the establishment of PwC global network to bring the best Lasha also underscored his deep 3Z&*HRUJLDLQ-XO\/DVKDKDV knowledge, innovation, cutting edge appreciation for all his colleagues and been instrumental in helping to grow the technology and our network capabilities mentors. local practice and has made a consider- to Georgia and help local business and “I would like to thank all, who helped able contribution to establishing the PwC public sector address current and future me to get where I am now, with their EUDQGRIWKH7ELOLVLRI¿FHLQWKH*HRUJLDQ challenges,” he said. advice, coaching, cooperation and lead- market. /DVKDDGGHGWKDWEHLQJWKH¿UVW*HRU- ership. Special, thanks to the Managing Lasha has 15 years of extensive expe- gian partners at PwC gives him a unique Partner of PwC Georgia, Altaf Tapia, for rience working with key industry players chance to help the next generation of his support and personal encouragement in the Georgian market and is the Fellow leaders at the company. DQGIRUKLVFRQ¿GHQFHLQSRWHQWLDORIWKH &HUWL¿HG&KDUWHUHG$FFRXQWDQW )&&$ “Partnership is the most motivated, local practice and the country overall to He has worked with local and interna- challenging and interesting career path move to the next level,” Lasha said.

AUGUST-SEPTEMBER/2017/2017 Investor.ge | 47 NEWS

PRESS RELEASE “Carrefour” and Wissol *URXS*HRUJLD)RUPD Successful Partnership

Tbilisi, Georgia /June 20/2017: Majid Al economy in Georgia. In line with Majid Al 35,000 people, and obtaining the highest Futtaim Retail – the retail arm of Majid Al )XWDLP·VYLVLRQWRFUHDWHJUHDWPRPHQWV FUHGLWUDWLQJ %%% DPRQJSULYDWHO\KHOG Futtaim, the leading shopping mall, com- IRUHYHU\RQHHYHU\GD\&DUUHIRXURIIHUV corporates in the region. Majid Al Futtaim munities, retail and leisure pioneer across an exceptional shopping experience, pro- owns and operates 21 shopping malls, 12 the Middle East, Africa and Asia, today an- YLGLQJWKHZLGHVWUDQJHRITXDOLW\SURGXFWV hotels and three mixed-use communities, QRXQFHGLWVSDUWQHUVKLSZLWK03'HYHORS- DW FRPSHWLWLYH SULFHV DQG GLVWLQJXLVKHG ZLWK IXUWKHU GHYHORSPHQWV XQGHUZD\ LQ ment, the real estate arm of Wissol Group FXVWRPHUVHUYLFH the region. The shopping malls portfolio in Georgia. At the end of July 2017, MP ´,WLVKLJKO\YDOXDEOHIRUXVWRKDYHVXFK includes Mall of the Emirates, Mall of Egypt, 'HYHORSPHQWZLOOODXQFKLWVQH[WVKRSSLQJ a close partnership with Carrefour that is City Centre malls, My City Centre neigh- center in the heart of Batumi City, where economically interesting for both parties. bourhood centres, and four community the anchor tenant will be “Carrefour” su- 7KLVSDUWQHUVKLSZLOOEULQJVROLGLQYHVWPHQWV PDOOVZKLFKDUHLQMRLQWYHQWXUHZLWKWKH SHUPDUNHW7KHVTXDUHPHWHUVWRUH modern infrastructure and more jobs. The *RYHUQPHQWRI6KDUMDK7KH&RPSDQ\LV will offer customers the widest choice of Batumi shopping center alone will cre- WKH H[FOXVLYH IUDQFKLVHH IRU &DUUHIRXU LQ fresh produce and household goods with DWH RYHU DGGLWLRQDO MREVµ VDLG 6RVR PDUNHWVDFURVV0LGGOH(DVW$IULFDDQG RYHU LWHPV DW FRPSHWLWLYH SULFHV 3NKDNDG]H3UHVLGHQWRI:LVVRO*URXS Asia, and operates a portfolio of more and will create more than 150 new jobs. In “We are delighted with this successful than 175 outlets in 15 countries. addition to Carrefour Batumi, the second partnership established between Carre- Majid Al Futtaim operates 284 VOX VKRSSLQJFHQWHUIRU03'HYHORSPHQWZLOO four and Wissol Group in Georgia. It is our Cinema screens and 30 Magic Planet also carry fast food restaurants Wendy’s LQWHQWLRQ WR GHYHORS VHYHUDO LQWHUHVWLQJ family entertainment centres across the DQG'XQNLQ·'RQXWVDEUDQFKRI%DQNRI projects together with Wissol Group. This region, in addition to iconic leisure and Georgia, a pharmacy shop, toy shop, shoe SDUWQHUVKLSZLOOSDYHWKHZD\IRUIXUWKHU HQWHUWDLQPHQWIDFLOLWLHVVXFKDV6NL'XEDL and clothing shops and other retail shops expansion of Carrefour stores in Georgia, DQG6NL(J\SWDPRQJRWKHUV7KH&RP- RIGLIIHUHQWSURÀOHV DV ZHOO DV IXUWKHU LQYHVWPHQWV DQG PRUH SDQ\LVSDUHQWWRWKHFRQVXPHUÀQDQFH &DUUHIRXUODXQFKHGLWVÀUVWVXSHUPDU- job opportunities,” said Philippe Peguilhan, company ‘Najm’, a fashion retail business NHWLQ0D\LQWKH03'HYHORSPHQW Country Manager of Carrefour in Georgia. representing international brands such owned shopping center located in Gldani, as Abercrombie & Fitch, AllSaints, lulule- 7ELOLVL&DUUHIRXU*HRUJLDZLOOWDNHRYHUWZR ABOUT MAJID AL FUTTAIM mon athletica, and Crate & Barrel; and PRUH VXSHUPDUNHWV IURP :LVVRO *URXS·V Founded in 1992, Majid Al Futtaim is the a healthcare business that operates City “Smart” during the summer. Smart will leading shopping mall, communities, retail Centre Clinics. In addition, Majid Al Futtaim FRQWLQXH WR GHYHORS LWVHOI LQ LWV RULJLQDO and leisure pioneer across the Middle East, RSHUDWHV (QRYD D IDFLOLW\ DQG HQHUJ\ IRUPDWDVVPDOOVL]HGVXSHUPDUNHWVPRVWO\ $IULFD DQG $VLD $ UHPDUNDEOH EXVLQHVV management company, through a joint located at petrol and natural gas stations success story, Majid Al Futtaim started from YHQWXUH RSHUDWLRQ ZLWK 9HROLD D JOREDO in different cities and at rest areas on high- RQH PDQ·V YLVLRQ WR WUDQVIRUP WKH IDFH OHDGHULQRSWLPLVHGHQYLURQPHQWUHVRXUFH ZD\V 6PDUW VPDOOIRUPDW VXSHUPDUNHWV of shopping, entertainment and leisure management. The Company also owns KDYH VKRZQ JUHDW SURÀWDELOLW\ KHQFH LW WR¶FUHDWHJUHDWPRPHQWVIRUHYHU\RQH the rights to The LEGO Store and American has become one of Wissol Group’s priori- HYHU\GD\·,WKDVVLQFHJURZQLQWRRQHRI Girl in the Middle East and operates in the WLHVWRIXUWKHUGHYHORSWKLVEXVLQHVV the United Arab Emirates’ most respected IRRG DQG EHYHUDJH LQGXVWU\ WKURXJK D &DUUHIRXUZDVÀUVWODXQFKHGLQ*HRUJLD and successful businesses, spanning 15 in- partnership with Gourmet Gulf. LQZLWKLWVÀUVWK\SHUPDUNHWLQ7ELOLVL WHUQDWLRQDOPDUNHWVHPSOR\LQJPRUHWKDQ www.majidalfuttaim.com Mall. Today, Carrefour has two hypermar- NHWVDQGVL[VXSHUPDUNHWVLQ7ELOLVLZLWKRYHU 1500 employees. As a result of its successful Please follow us on: partnership with Wissol Group, Carrefour https://www.youtube.com/user/majidalfuttaim ZLOOVRRQRSHQLWVÀUVWVXSHUPDUNHWLQ%DWXPL https://twitter.com/majidalfuttaim DQGWZRDGGLWLRQDOVXSHUPDUNHWVLQ7ELOLVL KWWSVZZZOLQNHGLQFRPFRPSDQ\PDMLGDOIXWWDLP This step will initiate new opportunities and KWWSVZZZIDFHERRNFRP0DMLG$O)XWWDLP will help create new jobs to support the https://www.instagram.com/majidalfuttaim

48 | Investor.ge AUGUST-SEPTEMBER/2017 NEWS

Dinehall Celebrates )LUVW Anniversary

When restaurant DINEHALL opened on 9 June 2016, the main purpose was to open a place where guests are highly appreciated and can experience high TXDOLW\ VHUYLFH KRVSLWDEOH HQYLURQPHQW and fresh food. The right to life and health is part of fundamental human rights and IUHHGRPV:HOLYHLQDZRUOGZKHUHRXU food is industrialized. DINEHALL Tbilisi is the ÀUVWEUDQFKRIWKHZRUOG·VÀUVWIUHVKFDVXDO café restaurant, and its motto is “Good Food is a Human Right”. there was a high demand from customers families, tourists and expats. DINEHALL’s concept and menu is ab- to also include Georgian Cuisine. Now, :HWU\WRPDNHWKHPIHHOOLNHKRPH solutely different from other restaurants at DINEHALL international dishes, as well FUHDWHHQYLURQPHQWZKHUHWKH\FDQUHOD[ WKDWDUHSUHVHQWHGRQWKHORFDOPDUNHW WUDGLWLRQDO*HRUJLDQGLVKHVDUHVHUYHG ZLWKIDPLO\KDYHSULYDWHPHHWLQJVEXVL- DINEHALL offers fewer options on its menu, From the day it opened until today, the QHVVOXQFKHVFRUSRUDWHHYHQWVWUDLQLQJV EXWSURYLGHVPRUHEHQHÀWVIRUJXHVWV+HUH HQWLUH',1(+$//WHDPVWULYHVWROHDUQWKH RUMXVWKDQJRXWLQ',1(+$//·VÀYHGLIIHUHQW you can eat only fresh and healthy food, LQGLYLGXDOGHPDQGVRIHDFKJXHVW2XU YHQXHVORFDWHGRQVTPHWHUV5HVWDX- ZKLFKQRZDGD\VLVYHU\GLIÀFXOW',1(+$// WHDPDOZD\VNQRZVZKRWKH\DUHZKDW rant, Café, Bar, Expo halls and Wine Cellar. SULFHVPHDWVDFFRUGLQJWRLWVVHUYLFHDQG WKH\ORYHDQGZKDWWKH\H[SHFWIURPXV DINEHALL’s concept consists from IRRGTXDOLW\0RUHRYHULWFDQEHVDLGWKDW For DINEHALL main aim is to be up to date three main areas: Food, Wine and Art. Ac- DINEHALL’s quality is higher than offered HYHU\GD\DQGQHYHUORVHFORVHFRPPXQL- cording to the concept “Food Wine Art,” prices. One year ago, when DINEHALL cation with our guests. DINEHALL supports art. At the DINEHALL opened, it only offered an international The restaurant’s target audience is DUW JDOOHU\ JXHVWV FDQ ORRN DW WKH ZRUN PHQXKRZHYHUDIWHUVRPHSHULRGRIWLPH $%& JURXS UHSUHVHQWDWLYHV ZLWK WKHLU RIWKH\RXQJDQGIDPRXVVFXOSWRU/HYDQ %XMLDVKYLOLDQGEX\KLVSLHFHV,QDGGLWLRQ Dinehall offers a special music program to the guests on Wednesday, Friday and 6DWXUGD\HYHQLQJ',1(+$//DOVREHOLHYHV that good music should be listened to in a good place. The 11 best wine companies in Tbilisi are represented in DINEHALL’s wine cellar. Now DINEHALL is a one year old. Dur- LQJWKLV\HDUWKHUHVWDXUDQWDFKLHYHGLWV main goals. From the day it opened until WRGD\LWKDVVHUYHGJXHVWV(YHU\ day, DINEHALL hosts 300 guests. DINEHALL’s young team of 63 people, ZRUNHYHU\GD\WRGRWKHLUEHVWDQGFUH- ate fresh-casual, friendly and comfortable atmosphere for you. DINEHALL constantly VWULYHVWRJURZDQGQRZZHDUHSUHSDU- ing to open a second and third branch abroad. Mr. Taner Icten Board member and Group head

AUGUST-SEPTEMBER/2017/2017 Investor.ge | 49 AmCham Company Members as of August 2017

PATRON MEMBERS British American Tobacco Dentons Georgia LLC GMT Group 71 Vazha Pshavela Ave. 10 Melikishvili St. 4 Freedom Square Tel: 2157500/01/02; Fax: 2157503 Tel: 2509300; Fax: 2509301 Tel: 2988988; Fax: 2988910 www.bat.com www.dentons.com www.gmt.ge BP Exploration Georgia 24, S. Tsintsadze St. Tel: 2593400 Gosselin Mobility Georgia www.bpgeorgia.ge Diplomat Georgia Budget Rent a Car - Otokoc 3 M/D, Didi Digomi 65, Kakheti Highway Georgia LLC Tel: 2596601/02/03; Fax: 2596600 Tel: 2984950 37 Rustaveli St. www.gosselinmobility.eu www.diplomat.ge KPMG Georgia LLC Tel: 2234112 www.budget.com.ge 3rd Floor, Besiki Business Center, 4 Besiki St., 0108 Grant Thornton LLC Tel: 2935713; Fax: 2982276 EY Georgia 61 D. Aghmashenebeli Ave. www.kpmg.ge 44 Kote Abkhazi St. Tel: 2604406 Caucasus University Tel: 2439375; Fax: 2439376 www.grantthornton.ge .RVWDYD6W%OGWKÀ www.ge.ey.com Tel: 2377777; Fax: 2313226 PricewaterhouseCoopers www.cu.edu.ge 12 M. Aleksidze St., 0160 Greco Group Tel: 2508050; Fax: 2508060 1 Nutsubidze St. F H Bertling Georgia Ltd. www.pwc.com Tel: 2393138; Fax: 2311107 Room 3, 4th Floor, www.greco.ge Chemonics International 154 Agmashenebeli Ave. 5, 2nd Blind Alley, Chavchavadze St. Tel: 2252287 www.bertling.com UGT Tel: 2234311; Fax: 2234309 www.chemonics.com GT Group D&KDYFKDYDG]H$YHWKÀRRU 48 B. Cholokashvili St. Tel: 2220211; Fax: 2220206 Tel: 2740740 www.ugt.ge FINCA Bank Georgia www.gtgroup.ge 9D]KD3VKDYHOD$YHUGÀ CleanTech Ltd. Tel: 2244949 5 Avlip Zurabashvili St., 0144 ZZZ¿QFDJH GULF Georgia Tel: 2922202 by Sun Petrolium Georgia LLC www.cleantech.ge Pixel Business Center, CORPORATE A MEMBERS 34 Chavchavadze Ave. Food TV Geo LLC Tel/Fax: 2496444 45b. M. Kostava St. www.gulf.ge AECOM Georgia LLC Colliers International Tel: 2931570 34, Chavchavadze Ave. Georgia LLC www.foodtvgeo.com Tel: 555603200 37/39 Kostava St., Hilton Batumi www.aecom.com Grato Business Center 7th Floor 13 Takaishvili St., Batumi Tel: 2224477 Tel: 292092 www.colliers.com Frontera Resources Georgia www.hilton.com Alliance LLC 12 Paliashvili St. 135 King Parnavaz St., Batumi Tel: 2252412 Tel: 591555757 www.fronteraresources.com www.alliancegroup.ge Iberia Refreshments, JSC Conformity Assessment Tetri Khevi Hesi District, Orkhevi International (CAI) LLC Tel: 2241091; Fax: 2241090 8 Politkovskaya St., 1086 Gazelle Finance Georgia LLC www.pepsi.ge Alliance Group Holding, JSC Tel: 595690008 2I¿FH1LNR1LNRODG]H6W 47/57 M. Kostava St., 0179 www.ca.international Tel: 2424181; Fax: 2998112 Tel: 2904304 ZZZJD]HOOH¿QDQFHFRP www.agh.ge IMSS Ltd. 10a Bakhtrioni St. Tel: 2920928 &XVKPDQ :DNH¿HOG*HRUJLD American Medical Centers, www.imss.ge WKÀRRU%ORFN General Electric Georgia 71 Vaja-Pshavela Ave. 5th Floor, Pixel Bulding, 11 D. Arakishvili St., Tbilisi Tel: 2474849 34 Chavchavadze Ave. Tel: 2500020 ZZZFXVKPDQZDNH¿HOGJH Tel: 2259516 / 2259505 Kartlos Group 114, Gorgiladze St., Batumi www.ge.com 20 Ushangi Chkheidze St., 0102 Tel: (+995 32) 250 00 77 Tel: 599540893 www.amcenters.com www.kartlosgroup.com Dechert Georgia LLC Georgian American Alloys, Inc. Avon Cosmetics Georgia LLC WKÀRRU3L[HOEXLOGLQJ 200 S Biscayne Blvd Suite 5500, 34 Chavchavadze avenue Kavkaz Cement JSC 117 Tsereteli Ave. Miami FL 33131 USA Tel: 2334719 29 Andronikashvili St., 0189 Tel: 2226805; Fax: 2226806 Tel: (1)3053757560 www.dechert.com Tel: 2619090 www.avon.com www.gaalloys.com www.kavkazcement.ge

Betsy’s Hotel / Prosperos Books 32/34 Makashvili St. / Deloitte Georgian American University Maersk Georgia LLC 34 Rustaveli Ave. 36a, L. Asatiani St., 0105 8 Aleksidze St. 6 Khetagurov St. Tel: 2987624, Fax: 2923592 Tel: 2244566; Fax: 2244569 Tel: 2206520; Fax: 2206519 Tel: 2200800; Fax: 2200815 www.betsyshotel.com www.deloitte.ge www.gau.ge www.maerskline.com

50 | Investor.ge AUGUST-SEPTEMBER/2017 Marriott Hotels, Resorts & Suites Risk Management and Insurance Air Astana Airlines JSC BLB (Business Legal Bureau) 13 Rustaveli Ave. &RPSDQ\³*OREDO%HQH¿WV 5th Floor, Pixel Business Center, 1 Shevchenko St, Apt.1 Tel: 2779200; Fax: 2779210 Georgia” 34 Chavchavadze Ave. Tel: 2995797 www.marriott.com 7 Polikarpe Kakabadze St. Tel: 2514999 www.blb.ge Tel: 2500001 www.airastana.com ZZZEHQH¿WVJH

Meridian Express %/&/DZ2I¿FH 15-17 Ketevan Tsamebuli Ave.0103 SEAF Management LLC Aliance Georgia Ltd 4 Gudiashvili Sq. Tel: 2745188 7, Niko Nikoladze St. II Floor. 33 Samurzakano St. Tel: 2922491; Fax: 2934526 www.ups.com Tel: 2998115; Fax: 2923533 Tel: 2243773 www.blc.ge www.seaf.ge www.groupaliance.com

Microsoft Georgia LLC Sheraton Metechi Palace Hotel BMC Gorgia 34 Chavchavadze Ave. Aversi Pharma 140 Tsereteli Ave. Tel: 2970123 20 Telavi St. 148/2 Aghmashenebeli Ave. Tel: 2772020; Fax: 2772120 Tel: 2960960 www.microsoft.com Tel: 2987860 www.gorgia.ge www.sheraton.com/tbilisi www.aversi.ge

M & M - Militzer & Munch SICPA Security Solutions Georgien, FedEx GSP Georgia Baker Tilly Georgia Ltd. CaspiGroup Ltd. 39 Ketevan Tsamebuli Ave. 79 Chargali St., 0178 Meidan Palace, 44 Kote Abkhazi St. 29 Bochorma St. Tel: 2748240, 2748941 Tel: 2434580 Tel: 2505353; Fax: 2505353 Tel: 2550818 www.fedex.com/ge www.sicpa.com www.bakertillyinternational.com www.caspigroup.com

Spotcoin LLC 2I¿FH7HFKQRORJLHV6WHHODVH 13 Shalva Radiani St., 0179 Bank of Georgia Caucasus Online LLC Dealership Tel: 599258539 3 Pushkin St. 71 Vazha-Pshavela Ave. 4 Freedom Sq., 0105 www.spotcoin.net Tel: 2444134; Fax: 2983269 Tel: 2000022 Tel: 2999980, 2688229 www.bog.com.ge www.co.ge ZZZRI¿FHWHFKQRORJLHVJH T&K Restaurants (McDonald’s Georgia) Basel LLC Channel Energy (Poti) Limited 1 Dzmebi Kakabadze St. Oracle 49 Krtsanisi St. Georgia LLC, By Petrocas Energy Tel: 2921246; Fax: 2251422 $\D]D÷D0HYNLL0H\GDQ6RN Tel: 2550110 Group www.mcdonalds.ge Spring Giz Plaza Kat:11 www.krtsanisi.com 52, David Agmashenebeli St., Poti Maslak, Istsnbul, Turkey Tel: (995493) 2-7-08-60 Tel: 577500151 www.petrocasenergy.com www.oracle.com TBC Group 7 Marjanishvili St. Basis Bank JSC Tel: 2272727; Fax: 2228503 1 Ketevan Tsamebuli Ave. www.tbc.com.ge Tel: 2922922; Fax: 2986548 Château Mukhrani, J.S.C. Orient Logic Ltd. www.basisbank.ge Sangebro St. 8 Beliashvili St. Tel: 2201878; Fax: 2201878; Tel: 2541818 TMC Global Professional www.mukhrani.com www.orient-logic.ge Services 6001 Indian School Road NE, Suite Batumi International Container 190, Albuquerque, NM 87110, USA Terminal 11, Baku Street, 6010, Batumi Tel: (1 505) 8723146 City & Co. PepsiCo Wimm-Bill-Dann Tel: 422 276452 www.tmcservices.com 4 Besiki St. Village Ponichala, Tbilisi 0165 www.bict.ge Tel: 2920921 Tel: 2475290 www.wbd.ru West Invest Ltd. 13a Lortkipanidze St. BDO LLC Tel: 2997275 Crowne Plaza Borjomi www.west-invest.ge 2 Tarkhnishvili Str. Philip Morris Vere Business Centre, 0179 Baratashvili Str. 9, 1200 Borjomi 1 Tabidze St. Tel: 2545845; Fax: 2399204 Tel: 995 367 220260 Tel: 2439001; Fax: 2439005 www.bdo.ge www.cpborjomi.com www.philipmorrisinternational.com Willis Towers Watson Ltd. 17 M. Lebanidze St. Tel: 2905509 www.willis.com BGI Advisory Services Georgia Crystal, MFO JSC ProCredit Bank 5XVWDYHOL$YH,,ÀRRU 72 Tamar Mepe St. Kutaisi, 4600 154 Agmashenebeli Ave. Tel: 2997292; Fax: 2996615 Tel: 431253343 Tel: 2202222; Fax: 2202222-2226 www.bgi.ge www.crystal.ge www.procreditbank.ge CORPORATE B MEMBERS

Biltmore Hotel Tbilisi Dio Ltd. Radisson BLU Iveria Hotel Adjara Group Hospitality 29 Rustaveli Ave. 12th Km David Agmashenebeli Alley 1 Rose Revolution Sq. 1, 26 May Sq., 0179 Tel: 2727272 N3, Parsadani St. Tel: 2402200; Fax: 2402201 Tel: 2300099 http://www.millenniumhotels.com/en/ Tel: 2361112 www.radissonblu.com www.adjaragroup.com tbilisi/the-biltmore-hotel-tbilisi/ www.dio.ge

AUGUST-SEPTEMBER/2017/2017 Investor.ge | 51 AmCham Company Members as of August 2017

Domson’s Engineering Georgian Beer Company GTS Electronics Leavingstone 8a Sanapiro St. 3311 Saguramo, Mtskheta District 35 Moscow Avenue, 0137 12a Al. Kazbegi Ave. Tel: 2050303 Tel: 2437770 Tel: 2710800 Tel: 2105103 www.domsons.com www.geobeer.ge www.gts-el.com www.leavingstone.com

Legal Partners Associated LLC Gvinadze & Partners LLC Duty Free Georgia Georgian Express 2I¿FH%HVLNL%XVLQHVV&HQWHU 44 Kote Abkhazi St, 0105 4 Besiki St. 0108 UGÀRRU%HVLNL6W 105, Tsereteli Avenue, 0119 Tel: 2438970, Fax: 2438971 Tel: 2200203; Fax: 2250458 Besiki Business Center Tel: 2696060 www.gvinadzeandpartners.ge www.lpa.ge Tel: 2430150 www.dhl.com www.dfg.ge

Liberty Bank JSC HeidelbergCement Georgia 74 Chavchavadze Ave. Georgian Hospitality Group Tel: 2555500; Fax: 2912269 Efes Brewery in Georgia - 18 Lermontov St. 22 Peritsvaleba St., 0103 www.libertybank.ge Lomisi JSC Tel: 2474747 Tel: 2987789 Village Natakhtari, Mtskhta Region www.heidelbergcement.ge www.ghg.ge Tel: 2357225 Luca Polare www.natakhtari.ge 54 Oniashvili St. Herbalife Nutrition Tel: 2990399 Georgian Industrial Group LLC Bld. 4a Tamarashvili St., 0116 www.lucapolare.com Tel: 2202929 Enviroserve Caucasus GIG Plaza, 14 Gazapkhuli St., 0177 Tel: 2210187 www.herbalife.com [email protected] Maqro Food “Dinehall” www.gig.ge www.enviroserve.ae 28 Rustaveli Ave. Tel: 2001616 Hualing International Special www.dinehall.ge Economic Zone EVEX Medical Corporation Georgian Integrated Systems 25 Apt. 34/36 Kobuleti St. 40 Vazha-Pshavela Ave. (GiS) Tel: 591005900 Mercure Tbilisi Old Town Tel: 2550505 2I¿FH$EDVKLG]H6W www.hualing.cn 9 Gorgasali St., Old Tbilisi, 0105 www.evex.ge Tel: 2243724 Tel: 2006060 www.gis.ge www.mercure.com

Hydrolea LLC Mgaloblishvili Kipiani Dzidziguri ExpoGeorgia JSC 11 A. Apakidze St. (MKD) 118 Tsereteli Ave., 0119 Georgian Resources Company Tel: 790420015 2I¿FH9D]KD3VKDYHOD$YH Tel: 2341100 3-5 Kazbegi St. www.hydrolea.com Tel: 2553880 www.expogeorgia.ge Tel: 2936676 www.mkd.ge www.georgianresources.com

ICS Ltd. TNT Agent in Georgia Mina JSC 25 Agmashenebeli Ave. Gebrüder Weiss LLC 4 Besiki St. Tel: 2910220 Airport Adjacent Territory, Geo Steel LLC Tel: 2449981/82/83; Fax: 2449980 www.tnt.ge Kakheti Hwy 36 Davit Gareji St., Rustavi, 3700 www.mina.com.ge Tel: 2710011 Tel: 2243794 www.gw-world.com www.geosteel.com.ge Mira Hotels Ltd. ILF Beratende Ingenieure ZT Brose Street Turn,Old Tbilisi GmbH Branch in Georgia Tel: 2242244/55/88 Geocell 15 Tamar Mepe Ave. www.riverside.ge Globalink Logistics LLC 3 Gotua St. Tel: 2199453 60 Sh. Nutsubidze St., 0186 Tel: 2770100, ext. 7435; www.ilf.com Tel: 2000238, 2208147 Fax: 2770119 Murphy Bridge www.globalinkllc.com www.geocell.ge 8th Floor, Building 6, Saakadze Sq, 0160 International Black Sea Tel: 2007107 University www.murphyshipping.com Gloria LLC David Agmashenebeli Alley 13 km, GeoEngineering LLC 2, 0131 15a Tamarashvili St. 3 Gorgasali St., 0105 Tel: 2000245 Tel: 2595005 MyGPS Tel: 2311788; Fax: 2311787 www.ibsu.edu.ge www.geoengineering.ge ZZZWLÀLVSDODFHJH 6 Bokhua St., 0159 Tel: 2180180 www.mygps.ge

JTI Caucasus GM Capital LLC Geomill LLC VII Floor, Pixel Business Center, National Center for Dispute 2 Tarkhnishvili St., 0179 4, Chirnakhuli St. 34 Chavchavadze Ave. Resolution Tel: 2912626 Tel: 2400000 Tel: 2604111 4/7 Rustaveli St., Rustavi www.gmcapital.ge www.geomill.ge www.jti.com Tel: 2193406 www.ncdr.ge

Georgian Airways GTR Ltd. Kordzahia, Jgenti Law Firm NCC Ltd. 12 Rustaveli Ave. 17 Shavteli St., 0105 10 Petriashvili St. 9, Erekle II turn Tel: 2999730; Fax: 2999660 Tel: 2439494 Tel: 2921878 Tel: 2725088 www.georgian-airways.com www.ambassadori.com www.kjlaw.ge www.ensisi.ge

52 | Investor.ge FEBRUARY-MARCH/2016 Nexia TA Rakeen Development LLC Tbilisi View CARE International in the 4th Floor, 19 David Gamrekeli St., Pixel Business Center, 4a, Freedom Sq. Caucasus 0160 34 Chavchavadze Ave. Tel: 2999980 37 Tsagareli St., 0162 Tel: 2242559 Tel: 2933393; Fax: 2933993 www.tbilisiview.ge Tel: 2291941 www.nexia.ge www.rakeen.ge www.care-caucasus.org.ge

Terabank JSC Regus, Georgian Branch, Tbilisi 3 Ketevan Tsamebuli Ave. (CiDA) Civil Development Noblet Media Business Centre Tel: 2507700 Agency 7, Khorava St. Level 4, 1 Tabidze St., 2 Leonidze www.terabank.ge 9/1 Pirosmani St., Rustavi, 3700 Tel:w 2396300 St.,0105 Tel: 341258822 www.nobletmedia.com Tel: 2900039 www.cida.ge www.regus.com Terrace Hotel & Restaurant 7 Polikarpe Kakabadze St. Europe Foundation Tel: 2999001 3 Kavsadze St. Nodia, Urumashvili & Parnters Rentals LLC www.theterracetbilisi.com 2I¿FH,9%ORFN Tel: 2253942; Fax 2252763 (ext. 112) 46 Rustaveli Ave.; 36 Griboedov St. www.epfound.org 71 Vazha-Pshavela Ave. Tel: 2454567 / 2996412 Tel: 2207407 www.rentals.ge www.nplaw.ge Theco Ltd. 16 Chikovani St. Free University of Tbilisi Tel: 592107515 140 David Agmashenebeli Alley Resolution Insurance Brokers, www.tbilisia.ru Tel: 2200901 Georgia LLC www.freeuni.edu.ge Nutrimax Ltd. 61, Gorgasali St. 68a Rustavi Highway, 0165 Tel: 2936305 Tel: 2305335 University of Georgia www.rib.ge Georgia Red Cross Society www.nutrimax.ge 77a Kostava St. Tel: 2552222 15 J. Kakhidze St. www.ug.edu.ge Tel: 2961092 Rixos Hotel Borjomi www.redcross.ge Overall Management Group 16 Meskheti St., Borjomi (OMG) Inc. Tel: 2292292 Veziri Ltd. http://borjomi.rixos.com Georgian Wine Association 29 Marjanishvili St. 7 Luarsab Andronikashvili St., 0131 12 Mtatsminda St. Tel: 2436052; Fax: 2436052 Tel: 2251614 Tel: 2505457 www.veziri.net Rooms Hotel 14 Merab Kostava St. Good Governance Initiative Paine Stevens LLC Tel: 2020099, 2730099 Vinotel (“Aigvinissakhli”) LLC Pixel Center, 8th Floor, 34, 1 Ivane Javakhishvili Sqr. www.roomshotels.com 4 Elene Akhvlediani Ascent Chavchavadze Ave. Tel: 2903211, Fax: 2903291 Tel: 2555888 Tel: 2243111 www.painestevens.com www.vinotel.ge www.ggi.ge RSM Georgia LLC 67, Aghmashenebeli Ave. Tel: 2558899 Wings and Freeman Capital LCC International University / PASHA Bank Georgia JSC www.rsm.ge Green Building, 6, Marjanishvili St. LCC Georgia 15, Shota Rustaveli Ave. Tel: 2940051; Fax: 2940053 Kretingos 36, Klaipeda, Lithuania Tel: 2265000 www.wfcapital.ge LT-92307 Tel: 370 46 310460 www.pashabank.ge Sakcable JSC www.lcc.lt Suite 414, 19 Gamrekeli St. Tel: 2221418 Wissol Georgia www.sakcable.ge 74b Chavchavadze Ave. QSI International School of Policy and Management Tel: 2915315; Fax: 2915615 Consulting Group (PMCG) Georgia www.wissol.ge Village Zurgovani, Tbilisi $JKPDVKHQHEHOL$YHWKÀRRU Silknet Ltd. Tel: 2921171 Tel: 2537670; Fax: 2322607 95 Tsinamdzgvrishvili St. www.pmcg.ge www.qsi.org Tel: 2910345; NON-PROFIT ORGANIZATIONS www.silknet.com San Diego State University - Georgia Primera Golf & Residence Agricultural University of 5 Kostava St. 0108 36, Khetagurovi St., 0102 SRG Investments LLC Georgia Tel: 2311611 Tel: 2200036 D&KDYFKDYDG]H$YHUGÀRRU 140 David Aghmashenebeli Alley Tel: 2253581 Tel: 2594901 www.georgia.sdsu.edu www.silkroad.ge www.agruni.edu.ge

Union of Busines Ladies Publicis Ltd. 8 D. Gamrekeli St., 0194 17 V. Jorbenadze St. T3Concept Ltd. Alliance for Progressive Tel: 2308661 Tel: 2745672; Fax: 2745671 13 Radiani St., 0179 Healthcare www.ubl.ge www.publicis.ge Tel: 2434455 27/29 Chavchavadze Ave., 0179 www.turner.com, www.t3concept.ge Tel: 2242413

Transparency International Qebuli Climate TBC Leasing JSC American Friends of Georgia Georgia 101, Tsereteli Ave. 8 Bulachauri St., 0161 77 Nutsubidze St. 61 Agmashenebeli Ave. 0102 Tel: 2356201 Tel: 2272727 Tel: 2397174; Fax: 2388495 Tel: 2932129 www.qebuli.ge www.tbcleasing.ge www.afgeorgia.org www.transparency.ge

FEBRUARY-MARCH/2016 Investor.ge | 53 NEWS

54 | Investor.ge AUGUST-SEPTEMBER/2017 NEWS

AUGUST-SEPTEMBER/2017/2017 Investor.ge | 55 NEWS

56 | Investor.ge AUGUST-SEPTEMBER/2017 NEWS

AUGUST-SEPTEMBER/2017/2017 Investor.ge | 57 NEWS

COCKTAIL RECEPTION AT TIFLIS VERANDA

AMCHAM GEORGIA HOSTED A COCKTAIL RECEPTION AT TIFLIS VERANDA ON JUNE 30. AMCHAM PRESIDENT MICHAEL COWGILL GREETED THE GUESTS AND USED THE OPPORTUNITY TO CELEBRATE SUMMER’S ARRIVAL. MEMBERS ENJOYED FABULOUS VIEWS OVER OLD TOWN AND RECONNECTED WITH FRIENDS, COLLEAGUES AND FELLOW REPRESENTATIVES OF MEMBER COMPANIES.

58 | Investor.ge AUGUST-SEPTEMBER/2017 NEWS

AMCHAM COCKTAIL RECEPTION, USAID / CSR CLUB PRESENTATION

$P&KDP*HRUJLDKRVWHGDFRFNWDLOUHFHSWLRQDQGD presentation by USAID Mission Director Douglas Ball with the Georgian CSR club/CiDA for AmCham members at Betsy’s +RWHORQ0D\$P&KDP([HFXWLYH'LUHFWRU*HRUJH:HO- WRQJUHHWHGWKHJXHVWV0U%DOOWDONHGDERXW&65·VLPSRU- WDQFHLQWKHFXUUHQWEXVLQHVVHQYLURQPHQWDQGRSSRUWXQLWLHV ZLWKLQ86$,'·VZRUNIRU&65HQJDJHPHQW5HSUHVHQWDWLYHVRI 7%&/HDVLQJDQG&HQWHUVIRU&LYLF(QJDJHPHQWSUHVHQWHG WKHLU&65YLVLRQV7KHSUHVHQWDWLRQZDVIROORZHGE\DOLYHO\ discussion among the members and the presenters. After the presentation, AmCham members and partners HQMR\HGFRFNWDLOVDQGXVHGWKHRSSRUWXQLW\WRUHFRQQHFW ZLWKIULHQGVFROOHDJXHVDQGIHOORZUHSUHVHQWDWLYHVRIPHP- ber companies.

AUGUST-SEPTEMBER/2017/2017 Investor.ge | 59 NEWS

Board Of Directors 2017

R. MICHAEL COWGILL PRESIDENT

SARAH WILLIAMSON IRAKLI BAIDASHVILI ANDREW COXSHALL FIRST VICE-PRESIDENT VICE-PRESIDENT & TREASURER DIRECTOR

ESBEN EMBORG LASHA GOGIBERIDZE BADRI JAPARIDZE DIRECTOR DIRECTOR DIRECTOR

AmCham Executive Director Writers George Welton Emil Avdaliani, Nino Bakradze, Maarten de Boer, Lika Jorjoliani, Tatjana Montik, Inge Snip, Sally White Copy Editor Alexander Melin Special thanks to CRRC Georgia for their contribution to the magazine, Marketing & Promotion AmCham Georgia’s staff, and all our contributors. This magazine would not be Saba Gvetadze possible without your help.

Promotional Design Levan Baratashvili

Magazine Design and Layout Giorgi Megrelishvili 60 | Investor.ge AUGUST-SEPTEMBER/2017 NEWS

STEVE JOHNSON OTAR KIPSHIDZE KETTI KVARTSKHAVA DIRECTOR DIRECTOR DIRECTOR

CHRIS SCHLUETER BETSY HASKELL, DIRECTOR FOUNDING ADVISOR

GEORGE WELTON DWIGHT NYSTROM EXEC. DIRECTOR EX-OFFICIO MEMBER

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© The American Chamber of Commerce in Georgia, 2017 DULVLQJIURPWKHXVHRIDQ\SURGXFWRUVHUYLFHDGYHUWLVHGZLWKLQ $OOULJKWVUHVHUYHG1RSDUWRIWKLVPDJD]LQHPD\EHUHSULQWHGRU the pages of this issue. reproduced or utilized in any form or by electronic, mechanical ,QYHVWRUJHLVSULQWHGE\CEZANNE RU RWKHU PHDQV QRZ NQRZQ RU KHUHDIWHU LQYHQWHG LQFOXGLQJ photocopying and recording, or in any information storage or AmCham Georgia: 36a Lado Asatiani Street, 3rd UHWULHYDOV\VWHPZLWKRXWSHUPLVVLRQ ÁRRU7HO 7KHRSLQLRQVH[SUHVVHGLQWKLVPDJD]LQHGRQRWUHÁHFWWKHRSLQLRQ [email protected] of the American Chamber of Commerce in Georgia nor its Board HGLWRU#DPFKDPJHɕZZZDPFKDPJH Members or staff, unless otherwise stated. AmCham Georgia QHLWKHU HQGRUVHV QRU FDQ EH KHOG OLDEOH IRU DQ\ HYHQWXDOLW\ ZZZLQYHVWRUJH AUGUST-SEPTEMBER/2017/2017 Investor.ge | 61

Dentons, the world’s largest global elite law firm.

Otar Kipshidze Avto Svanidze Managing Partner Partner [email protected] [email protected]

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