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Issue no: 856/33 • JUNE 28 - 30, 2016 • PUBLISHED TWICE WEEKLY PRICE: GEL 2.50

Source: BFI Film Academy 3, Autumn 2014, background photo by Tony Hanmer/GT In this week’s issue... FOCUS Airport to Get New ON LOCATION Terminal in 2017 GeorgiaGGeorgia llooksooks to PAGE 2 HollywoodHoH llywood for investmeninvestmentt PAGEPAGE 3 to Introduce Strict Smoking Laws from July 1, 2017 PAGE 2 We Want to Take Our Countries Back, and We Will! ISET PAGE 4 Georgian Foreign Minister Pays First Offi cial Visit to Liechtenstein Brexit and Georgia PAGE 8 Georgia’s Location Both a OP-ED BY LINCOLN MITCHELL Blessing and a Curse, Former US Ambassador he Georgia Analysis is a twice monthly analysis of political and Says other major developments in Geor- gia. Lincoln Mitchell is a political development, research and strategic Tconsultant who has worked extensively in the post-Soviet space. He has agreed to share some of his analyses exclusively with GEORGIA TODAY. Thursday’s vote in the UK, in which a slight

majority voted for their country to leave the EU, Cartoon: Dr Meddy. Source: www.Cartoonmovement.Com will have substantial and immediate impacts on domestic politics in the UK as well as on the foreign policy, trade and economic future of that country. Continued on page 5 PAGE 13

Prepared for Georgia Today Business by Markets Asof27ͲJunͲ2016 STOCKS Price w/w m/m BONDS Price w/w m/m BankofGeorgia(BGEOLN) GBP24.5 Ͳ1,7% Ͳ2,0% GEOROG05/17 101.81(YTM4.75%) Ͳ0,2% Ͳ0,1% GHG(GHGLN) GBP2.7525 Ͳ3,3% +11,7% GEORG04/21 109.96(YTM4.54%) Ͳ0,5% Ͳ0,6% TBCBank(TBCBLI) US$12.6 Ͳ3,1% +5,0% GRAIL07/22 111.00(YTM5.58%) +0,5% +1,2% GEBGG07/17 103.75(YTM3.95%) Ͳ0,2% Ͳ0,2% COMMODITIES Price w/w m/m CrudeOil,Brent(US$/bbl) 48,41 Ͳ1,5% Ͳ0,4% CURRENCIES Price w/w m/m GoldSpot(US$/OZ) 1315,75 +1,3% +7,2% GEL/USD 2,3100 +6,0% +7,7% GEL/EUR 2,5455 +4,6% +6,2% INDICES Price w/w m/m GEL/GBP 3,1621 +1,1% +0,6% FTSE100 6138,69 +2,0% Ͳ1,3% GEL/CHF 2,3725 +4,5% +9,9% FTSE250 16088,05 Ͳ2,0% Ͳ6,1% GEL/RUB 0,0356 +5,6% +9,9% DAX 9557,16 Ͳ0,8% Ͳ5,0% GEL/TRY 0,7889 +5,9% +8,4% DOWJONES 17400,75 Ͳ1,6% Ͳ1,7% GEL/AZN 1,4994 +4,8% +4,1% NASDAQ 4707,98 Ͳ1,9% Ͳ3,1% GEL/AMD 0,0049 +6,5% +8,9% MSCIEMEE 121,19 Ͳ0,6% Ͳ0,6% GEL/UAH 0,0934 +6,6% +9,4% MSCIEM 805,87 Ͳ0,0% +2,3% EUR/USD 0,9005 +1,5% +0,3% SP500 2037,41 Ͳ1,6% Ͳ1,9% GBP/USD 0,7314 +5,0% +7,0% MICEX 1884,41 +0,4% +0,0% CHF/USD 0,9720 +1,3% Ͳ2,2% MSCIFM 2498,85 Ͳ3,0% Ͳ0,2% RUB/USD 65,1206 +0,6% Ͳ1,7% GTIndex(GEL) 842,35 +2,7% +5,7% TRY/USD 2,9279 +0,0% Ͳ0,6% GTIndex(USD) 762,96 +0,3% +4,1% AZN/USD 1,5425 +1,3% +3,4% GEORGIA TODAY 2 BUSINESS JUNE 28 - 30, 2016 Tbilisi Airport to Get New Terminal in 2017

square meters and have the capacity to receive 3.25 BY NICHOLAS WALLER million passengers per year. Roughly 500 people will be employed to build the terminal. new USD 25 million terminal will be The airport is currently implementing a costly constructed at Tbilisi’s Shota Rustaveli and time-consuming project that aims to lengthen International Airport as part of a major the runway, which will allow the airport to accom- expansion project slated for comple- modate larger aircraft. tion in 2017, according to the airport’s The project has provoked the ire of many Tbilisi Amanaging company TAV Georgia. residents and visitors to Georgia’s capital as the "In 2015, we signed a new contract with TAV expansion is carried out during daylight hours, Georgia, according to which the company made a which forces the airport to be completely closed commitment to begin constructing a new terminal to air traffi c from early morning to late evening. capable of accommodating 2 million passengers Planners of the project have faced heavy criticism per year. More than USD 25 million will be invested for having scheduled the expansion during the in the new terminal’s construction,” said Dimitry height of the country’s tourism season as it sig- Kumsishvili, Georgia’s Minister of Economy and nifi cantly hinders the airport’s ability to accom- Sustainable Development, at the groundbreaking modate the fl ow of visitors. ceremony for the future terminal. The runway’s expansion works are to conclude The new terminal will cover more than 12,000 on July 1. Georgia to Introduce Strict Smoking Laws from July 1, 2017

Sites designated for the sale of tobacco products BY TATIA MEGENEISHVILI must also clearly display special health warnings regarding the risk of smoking and a special hot line number that people can call to quit their addiction new draft law that amends Georgia’s to smoking. Health warnings must also cover 65 Tobacco Control will fully or partially percent of the average cigarette packet. restrict smoking in all public places The tobacco companies and their local distribu- from July 1, 2017. tors will be required to provide carbon emission According to the adopted amend- details at their expense. Aments, a minimum of 50 percent of hotel rooms must be smoke-free, while cafes, bars, restaurants, casinos and beauty salons will be allowed to provide an absolute maximum of 20 percent of their total space to those who smoke. Thee area must also be isolated,d, enclosed and include eitherer a window or an alternativeve form of ventilation. From January 1, 2018, aallll offi ces, factories, warehouses,es, terminals and other similarilar buildings must also designatenate less than 20 percent of their totalotal area for smoking. Stadiums and other sports venven-- ues will also be subject to a minmin-- imum 50 percent ban on smoking.oking. The new law also prohibits ototherher forms of use or demonstrationtion of tobacco- in mass media, printrint or electronic media, and in ttheaterheater performances (unless the action takes place in open air andd has no live broadcasting). The new law will also strictlytlyprohibitsmok prohibit smok-- ing on public transport, as well as tobacco adver- Smoking will be restricted fully or partly in public tisements and promotional campaigns that condone places in Georgia from July 1, 2017. the use of tobacco or nicotine-related products. Photo: David Sillitoe / Guardian GEORGIA TODAY JUNE 28 - 30, 2016 BUSINESS 3 Enticing Hollywood to Film in Georgia Burns, who trained over a decade in BY MERI TALIASHVILI & Hollywood on feature fi lms, television TAMAR SVANIDZE and commercials and who opened his own post-production studio Spectra Post in Tbilisi in December (see Georgia Today n the framework of the Georgian interview with him, April 7, 2016) accom- government program ‘Produce in panied the Hollywood delegation to advise Georgia,’ top Hollywood produc- American producers on what they can ers, who have worked on such expect in Georgia and how to make the famous fi lms as The Hangover, most of their shooting schedule here. ITransformers, Captain America, The “Foreign productions will use Georgian Town, Sicario, and Mission: Impossible, crews and equipment in their projects visited Georgia to discover its potential and this is an incredible opportunity for fi lm locations. Georgian fi lmmakers to receive training, During a week the group visited Geor- expand their networks, and stay current gia’s most popular and ancient sites with the latest work practices. While including Tbilisi, Rustavi, Kakheti, fi lmmaking has existed in Georgia for Mtskheta, the remote mountainous Kaz- 100 years, Georgia is only now emerging begi and Mestia, cave-city Uplistsikhe, as a 21st-century fi lm industry, and that’s Tsqaltubo, Zugdidi, and Black Sea resort exactly what is necessary to support town, Anaklia. robust development in this sector. Film- Additionally, American fi lmmakers met making in Georgia can’t exist on state their Georgian counterparts and various subsidies alone––there must be private production company representatives to investment,” Burns said. share their experiences, as well as to Interest in the Film in Georgia program learn about Georgian cinema and the is high and the Enterprise Development existing infrastructure, which offers an Agency, which is carrying out the pro- excellent opportunity for Georgia to gram, has seen three applications already become the Eastern European center for submitted. As a result, 5,700.000 million fi lm sets. GEL is set to be spent in Georgia. “The world is only now starting to The Hollywood delegation was hosted appreciate what Georgia has to offer, by the Enterprise Development Agency and bringing a delegation of top location and the Georgian National Film Center. scouts from Hollywood was a very smart On their return to the US, the experts move,” American fi lmmaker Thomas will offer location recommendations to US and presented the new government- The program offers benefi ts to local anism, major international fi lm compa- Burns told GEORGIA TODAY. “The other US fi lm directors and producers. funded ‘Film in Georgia’ program, to and foreign companies who want to use nies will be enticed to move their on- team behind the ‘Film in Georgia’ cam- Georgia started cooperating with the encourage foreign fi lm-makers in an Georgia as a production site for their location operations to Georgia if they paign has done a phenomenal job attract- US fi lm industry earlier this year after attempt to attract small and big budget fi lms. The Georgian Government hopes are guaranteed a 25 percent reimburse- ing the attention of foreign studios.” two Georgian agencies travelled to the fi lm producers to the country. that by introducing a cash rebate mech- ment on their overall costs. GEORGIA TODAY 4 BUSINESS JUNE 28 - 30, 2016 THE ISET ECONOMIST A BLOG ABOUT ECONOMICS AND THE SOUTH CAUCAUS www.iset-pi.ge/blog

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

covert operations and wars abroad? BY ERIC LIVNY The truth is that Brexit, and Trump, and Bernie Sanders are symptoms of something more systematic than a bunch or the likes of , of nostalgic traditionalists in British currently UK’s most popular “rural areas and market towns” forming politician and a leading fi gure a "Stop the world, I want to get off" of the Brexit revolt, “The Euro- movement, as Robin Oakley wrote in his pean Union has become too CNN column last week. What we are Fremote, too opaque and not accountable facing today – in Europe and the US – is enough to the people it is meant to serve.” a twin crisis of the “nation-state” and of But how about the UK itself? How close democracy in a globalizing world. are 10 Downing Street or Westminster to the working class folks of England’s CITIZENS OF THE WORLD UNITE! industrial north? How representative is Much of the Brexit rhetoric was about Britain’s Eton-educated ‘political class’ regaining control over national borders of the people they are meant to serve? and reigning in migration from the Mid- And if Boris Johnson is lauding the Brit- dle East and Africa. But the terms “nation” ish people for deciding to take control and “national,” given their genetic con- of their own future, why not let the Scot- notation, are becoming less and less tish people do the same? convincing in the 21st century. Belgium, Consider also this statement from Mr. Spain and Switzerland may be extreme Johnson: “There is simply no need in the examples, but most European “nations” 21st century to be part of a federal sys- of today have their genetic roots in hun- tem of government based in Brussels dreds of tribes that once roamed across that is imitated nowhere else on Earth”. Eurasia. Moreover, white Europe is no Nowhere else? How about the federal longer all that white, having seriously system of government based in Wash- compromised its racial purity through ington DC? Haven’t we heard enough in past colonial adventures and depend- recent months about “Washington poli- ence on migrant workers. ticians” not listening and being out of Even less convincing is the notion of touch, failing to protect people’s jobs or “national borders” given our collective health, building bridges to nowhere, lying realization of their totally arbitrary nature. about WMD as a pretext for funding CIA The elimination of (artifi cial) political and Boris Johnson have more in common than just hairstyle. Source: Wikimedia/Commons barriers to the movement of people and coming from regional groups, ethnic and in direct democracy, a revolt against goods was probably one of the most religious minorities. Such local groups patronizing ‘experts’, traditional politi- welcome features of Pax Europaea. But, increasingly fi nd themselves outnum- cal parties, and, generally, Britain’s social (colonial) borders are being increasingly bered and “not listened to” within exist- and economic elites. questioned everywhere else, in the Mid- ing nation-states, providing a strong The ‘anti-establishment’ and ‘anti- dle East, Asia and Africa, destabilizing impetus for independence movements, system’ sentiment is not confi ned to existing political regimes and unleashing separatism, civil wars and frozen con- British politics. As argued by Elizabeth waves of migration across borders. fl icts, and (mostly) unrecognized states. Drew in The Trumping of American Having emerged in the 19th century, The sovereign nation-state paradigm Politics, “revulsion at government and nation-states served a purpose – help- is not yet dead, yet all signs point to the traditional politicians” is a central theme ing break the old royal and imperial fact that it is living its last days. On the of contemporary US politics, hitting the order and providing an alternative nar- one hand, nation-states face ever increas- ongoing presidential contest “like a tor- rative around which to organize soci- ing pressures to succumb to externally nado”. eties and deliver law and order. Yet, imposed rules of the games (fi nancial, This revulsion is very much evident in being programmed to claim exclusive economic, environmental, etc.). On the developed democracies, where political ancestral rights to territory and pursue other, they are strained (and, literally, parties and professional politicians appear ruthless linguistic and cultural homog- torn apart) by internal demands for to represent nobody but themselves, enization, nation-states inevitably greater linguistic, cultural and economic creating demand for outsiders, such as clashed with their own societies and autonomy, federalization and outright Donald Trump and Bernie Sanders, who each other, producing two world wars, secession. are ready to take on Washington (and innumerous attempts at ethnic cleans- Perhaps one of the greatest political London, and Brussels). ing, genocide, and hitherto unprece- challenges of the 21st century will be to The institutional machinery of repre- dented bloodshed. engineer a smooth transition from the sentative democracy, once perceived to Starting with the League of Nations, old system of fully sovereign nation- represent and refl ect, now comes to be the 20th century has seen several efforts states (already proven to be ineffective) seen as standing in the way of, and dis- to establish regional and global frame- to a new political order allowing to torting, the popular view (or views). works to resolve confl icts and promote maximize local freedoms subject to global Even in established electoral systems cooperation among nation-states. Spear- constraints – related to e.g. wealth and that have been designed to prevent the headed by regional powers, multilateral income inequality gaps (the engine of emergence of new parties (such as the organizations, philanthropists and cor- mass migration), energy security and US and UK), individual politicians fi nd porations, these efforts rest on the prem- environmental degradation. it profi table to directly appeal to the ise that the nation-state has become TOO And while the institutional intricacies party base, actively ignoring the estab- SMALL to handle any of the global chal- of the emerging new political order are lished “elites”. lenges facing humanity in the 21st cen- yet to be worked out, it is clear that it In new democracies, such as those in tury - from war and confl ict to climate will draw its legitimacy from the ability Eastern Europe, political parties have change, to disease control, to innovation, to solve problems, not (imagined) com- become a joke, and parliaments are the to effective taxation (as vividly illustrated mon ancestry or God’s mandate. least trusted public institutions. Ad hoc by the Panama papers), to business parties come and go, change names and development and global migration. IVOTE AND IDECIDE ideology, morph into ever shifting polit- At the same time, and rather paradox- DEMOCRACY? ical alliances, not living long enough to ically, nation-states have become TOO As much as Brexit can be understood as develop a bureaucratic apparatus, mem- BIG to be able to accommodate demands an expression of voter anger against the bership, etc. etc. for cultural and economic autonomy EU bureaucracy, it was also an exercise Continued on page 7 GEORGIA TODAY JUNE 28 - 30, 2016 BUSINESS 5

of the EU would mean for Georgia. Addi- tionally, Georgia will, almost immediately, need to have signifi cant discussions regarding trade and immigration with a longstanding ally, the UK, whose voters Brexit and Georgia have just sent messages that cannot be pleasing for leaders in Georgia. Georgia is not alone in this as Ukraine, Moldova from Moscow is different. Russia’s Pres- may be the energy and passion among approach to immigrants are being chal- and other countries now face these chal- ident Vladimir Putin will almost certainly a segment of the American population lenged is one that creates many problems lenges as well. see Brexit as good for Russia and perhaps that has contributed to the rise of Don- for Georgia. This is particularly true There was no good time for Brexit, but a harbinger of further problems with, or ald Trump as a political force. Trump’s given that Georgia is well along on what this vote coming only a few weeks before departures from, the EU. This is likely appeal is drawn in substantial part from has proven to be an agonizingly frustrat- the Warsaw NATO summit is particularly to lead Moscow to continue its policy his celebrity personality, proud ignorance ing and slow path to visa liberalization problematic for Georgia. Warsaw was of involving itself in European politics, on any of the major issues facing the US with Europe. The arguments that Geor- already shaping up to be another sum- primarily by supporting far right politi- or the world and ability to contradict gia has made to western powers regard- mit from which Georgia would return cal parties who, not coincidentally, are himself with righteous pride, but he has ing why further integration of Georgia not empty-handed, but also not with a in most cases hostile to the EU but also campaigned on racist and nativist into western institutions is good for MAP. The Georgian government should friendly to Russia. A Russia that is suf- themes that have resonated well. It is Europe and the US will not even be lis- already have been trying to determine fi ciently emboldened by this victory that unfair to tar all of the Brexit voters with tened to if voters in those countries are both what they would get from NATO it will involve itself more in European the Trump brush, but the two are related. loudly demanding a different path. This as well as how to present it to the Geor- Continued from page 1 politics and push more aggressively The latter believe the US can wall itself has not yet come to pass, but represents gian people as a reason to remain stead- against western powers is precisely what off from Mexico and symbolically the perhaps the worst outcome for Georgia. fast in their commitment to NATO. Now, Similarly, the EU could fi nd itself in Georgia does not need, but that is pre- rest of the world, while the former just While much can be made of voter sen- that summit will occur in the shadow of greater turmoil if other countries seek cisely what the voters of the UK have voted, in a political sense, for the UK to timents, Putin’s machinations, and chang- Brexit, meaning that NATO may too to follow Britain’s lead and try to exit given Tbilisi. turn the water surrounding their coun- ing attitudes in Europe and the US, it is begin to look inward more as the politi- the EU. Less dramatically, another result of the try into a moat to keep the rest of the also true that while the EU without the cal sentiments behind Brexit, and kindred Brexit also has many implications and Brexit vote will, at the very least, mean world out. UK is not going to automatically col- movements in other countries, begin to raises numerous challenges for Georgia, that the UK, one of Georgia’s staunchest While Trump may be an American lapse, it will be signifi cantly weaker. The spill over into the reality of defense and making it necessary for Georgia’s lead- supporters and advocates, will need to original, there are voters throughout UK has been one of the biggest, most security. This is unlikely to be a climate ership to think about their foreign policy focus much of its attention on the fallout Europe who share the hostility to immi- prosperous and most militarily powerful in which further expansion of NATO in a very different light today. The most from Thursday’s vote. Things like nego- gration and suspicion of the outside states within the EU. In the probable will get a particularly sympathetic hear- obvious way that Brexit will effect Geor- tiating trade and other agreements with world that contributed to the Brexit vic- case that Brexit is neither a fatal blow ing. gia is that it raises the possibility that the EU and other countries and deter- tory. It is also worth noting that Georgia to, nor the beginning of the end for, the After Brexit, the Georgian government Georgia may be moving closer than ever mining, with regards to both big picture is not immune to these types of political EU, the EU is still smaller, weaker and now faces the parallel tasks of maintain- to the EU at a time when the EU may be questions and specifi c issues related to movements either. Georgian political poorer without the UK. Therefore, the ing a solid relationship with a UK that breaking apart. In this scenario, Georgia countries such as Georgia, what their parties that have expressed a preference political entity that for over a decade is no longer in Europe, reinforcing a could fi nally achieve a longstanding and role in the world will be moving forward for what they see as traditional Georgian has represented the sum of Georgia’s domestic consensus for membership in extremely important foreign policy goal are among the issues that will consume values, a strong identity with the Geor- political and symbolic aspirations is not an EU that may be perceived as fraying, only to fi nd out that the prize itself is the British political class in the next few gian Orthodox Church and a wariness as powerful as it was even a week ago. and trying to make the most of a NATO hollow. Even if this is not the case, and months, and probably years. of further integration into the West are Brexit’s impact on the EU will not, summit where Georgia has now been that an EU without the UK is able to The sentiment that appeared to provide products of the same economic uncer- unless the dissolution of the EU occurs pushed further from the top of the agenda. move forward smoothly, there remains the foundation for the electoral support tainty and political frustration that fueled more quickly and decisively than most This must be done in the context of a a possibility that the Georgian people for the Brexit is one that is also not good the successful Brexit effort. It may be expect, force Georgia to immediately Russian regime that may see itself as will see the EU as a less dependable or for Georgia. While there were many that there are no countries in Europe rethink its goals of further integration having achieved a major political victory valuable foreign policy goal and there- positions that drove the Brexit victory, where these voters can form a majority into western institutions, but it is a clear in Europe and is perhaps preparing to fore the thus far reasonably resilient nationalism, opposition to immigration, in the near future, but they will, at the indicator both that there is now a strong seek more victories. This would be a pro-European consensus in Georgia and a desire to be less involved with the very least, begin to make more demands political barrier to joining those institu- daunting task for any government, one could be undermined. rest of the world were among the most on policy makers and vote for those tions and that membership in the EU is that is made even more complex by an There are, of course, other challenges signifi cant. These opinions are on the politicians and parties who share these less valuable than it once was. This puts election that is now less than four months Brexit will raise for Georgia. The vote rise, and the voices that have always views. Georgia, once again, in the position of away. in the UK may be met with dismay in supported these views are getting louder, All of that is bad for Georgia. A Europe, both having to continue to pursue these Brussels, Tbilisi, elsewhere in Europe throughout Europe and the US. and for that matter US, where interna- goals while also further exploring, in the To read more analyses from Lincoln Mitchell, as well as in Washington, but the view The most extreme expression of this tionalist policies and a welcoming longer run, what further deterioration visit his site: lincolnmitchell.com GEORGIA TODAY 6 BUSINESS JUNE 28 - 30, 2016 Gazprom Confi dent in Future Export of 165 billion M3 Gas Abroad

New $120 Million Cement Factory Under Construction in Western Georgia

tion company this April. BY TAMAR SVANIDZE Kvirikashvili emphasized that the mod- ern enterprise will boost Georgia’s economy. Stream-2,’ through which Russian gas Russian gas is currently supplied to new USD 120 million high “This is a great example of partnership BY DIMITRI DOLABERIDZE will pass via the Baltic Sea directly to Europe through the OPAL pipeline, which standard cement factory is between Georgia and China,” Kvirikash- Germany, the UK, Netherlands, France, is the challenger of gas pipeline ‘Nord to be built in Georgia’s vili said during the launching ceremony Denmark and other countries, bypass- Stream-1.’ The OPAL natural gas pipeline, western town of Senaki in of the construction. azprom has announced it ing Ukraine.” with a capacity is 36 bln cubic meters, Samegrelo region, the press “Several hundred local residents will intends to export at least Nord Stream-2 will be an international is a land extension of the offshore Nord Aoffi ce of the Georgian Prime Minister be employed here and income produced 165 billion cubic meters of collaboration between six major energy Stream pipeline. has announced. by this venture will be very important gas abroad in 2016, accord- companies – PJSC Gazprom, the German However, the European Commission has PM launched con- in terms of contributing to the state ing to deputy chairman of companies Uniper and BASF SE/Win- put a limitation on Gazprom to use just struction of the Georgian-Chinese joint budget,” he emphasized. Gthe company, Alexander Medvedev. tershall Holding GmbH, the AngloDutch 50% of its capacity: Gazprom (50%), Uni- investment project on June 25. According to the Prime Minister, more In 2015, Gazprom increased its gas Royal Dutch Shell Plc, the Austrian OMV per (10%), Royal Dutch Shell (10%), OMV The facility, which covers 20 hectares than 500 local residents will be employed exports to non-CIS countries to 159.4 AG and the French Engie S.A. (10%), ENGIE (10%), Wintershall (10%). of land in Senaki, western Georgia will at the factory. He highlighted that the billion cubic meters, which is 8% more “Europe’s gas production is declining "We are seeing the fi rst successes of produce 900,000 tonnes of clinker and project will be based on principles of high than the previous year. Supply growth and its import needs rising, so Nord the long-suffering threads of the OPAL 1.5 million tonnes of high quality cement effi ciency, safety, environmental protec- contributed to the reduction of its own Stream-2 is in its best interests,” Shell gas pipeline, the decision on which was annually. tion, and recycling and reuse of waste. production volumes in Europe, accord- CEO, Ben van Beurden, said June 7. “We taken four years ago. Now the German An agreement on undertaking invest- The factory will be equipped with spe- ing to Chairman of the Board of believe Nord Stream-2 is a good project, regulator has sent a corresponding request ments and launching “The Black Sea cial noise reduction mechanisms which Gazprom, Alexey Miller. “The increase as it provides infrastructure for import- to the European Commission. We expect Cement, Ltd” was signed by the Asian- will minimize the level of noise and of gas supply is a clear confi rmation ing much-needed gas to the EU and Rus- a positive decision in the very near African Business Management company protect the local residents from produc- of the need to build gas pipeline ‘Nord sia is a major gas supplier to the EU.” future," said Gazprom’s Medvedev. Hualing Group and a Georgian construc- tion-related disturbance. GEORGIA TODAY JUNE 28 - 30, 2016 BUSINESS 7 We Want to Take Our Countries Back, and We Will!

Continued from page 4 political process, enabling people to Indeed, there is a danger that repre- “take their countries back”, not only from sentative democracies, with their ability Azeri Former Bank Exec Charged Clearly, the migration debate has sharp- Brussels and Washington, but from the to fi lter, 'check and balance', will give ened the differences in the political political establishment as such. way to illiberal direct democracies, sup- preferences between the ‘simple folks’ Naturally, the political class comes pressing minorities, building walls, etc. with Embezzling €125mln (who don’t see the benefi ts of globaliza- under the fi ercest attack in the EU and This danger is real and a lot of thought tion), and national political establish- US context where ‘democratic’ decision- should go into developing a proper insti- businessmen, including Nizami Piriyev, BY NICHOLAS WALLER ments and pundits (who claim to care making appears to be particularly far tutional response, as discussed, for the founder and former owner of state- about the ‘long term’ and the ‘big picture’ removed from individuals and commu- instance, in Kenneth Rogoff’s Britain’s owned energy giant SOCAR’s subsidiary but fail to get their views across). Yet, nities, however, this is just the beginning. Democratic Failure. Azmeco. the migration debate alone will not be I believe that similar demands for auton- * * * zerbaijan’s interior ministry Following Hajiyev’s ouster, the Azeri able to explain the drawn out process of omy and more direct democracy will be While working on this article, I wrote has charged the former chair- government’s internal audit of IBA found erosion in people’s trust of conventional raised within existing nation-states. And, to my former teacher, Ronald Beiner, man of the state-owned that up to EUR 5.9 billion in bank assets democratic politics, political parties and very importantly, this trend is irrevers- whose Democratic Theory class I took International Bank of Azer- were made up of non-performing loans. professional politicians. ible. back in 1991. This is what he wrote in baijan (IBA), Jahangir Haji- The fi ndings led to a subsequent purge Democracy draws its inspiration from On the other hand, advances in tech- response: Ayev, with embezzlement after an investi- of IBA’s executives and upper echelon ancient Roman and Greek texts, which nology greatly reduce the role of party “It's been a very bad week for those gation concluded that he illegally transferred management at its Georgian, Russian and present it as a system of government “for organization in the political competition who complacently assume that things up to EUR 125 million into bogus bank Emirati branches, and the State was forced the people and by the people”. While process. It no longer takes a massive will necessarily get better if elites are accounts set up for himself and his family to inject EUR 1.8 billion into the bank, democracy may be unattainable in its grassroots machinery and party bureau- humbled and direct-democracy energies members over a 14 year period. bne IntelliNews reported on June 24. pure idealistic form, recent advances in cracy to start a new political movement get liberated. There's no guarantee that According to the investigation’s fi nd- The report also claimed that Baku plans communication technology make it much and win votes. All it takes is a message, populist politics won't infl ict atrocious ings, IBA – ’s largest bank – had to privatize IBA once its balance sheets easier for the ‘simple folks’ to shop for one impressive speaker, Facebook and things on the world, as they have in the suffered through years of mismanagement are clear. information and actively engage in pol- Twitter accounts, a good crowdfunding past. Right now, things are looking pretty during Hajiyev’s 2001-2015 tenure. The The State’s investigation into Hajiyev’s icy debates way beyond occasional vot- platform, and a skilled campaign man- scary: Trumpism, Brexitism, the resur- bank’s assets quickly turned to junk after activities while at the helm of IBA found ing. In other words, technology enables ager. Well, almost. gence of the radical Right in Continen- the national currency – the Manat – was that he abused his offi cial powers by more direct forms of democracy and of Not all of this is good news. With the tal Europe. We have to have our eyes devalued in February 2015 on the back of opening bank accounts for himself, his democratic participation in state affairs. fi xed cost of establishing a new party open to all those real dangers and think falling energy prices. family members (including his wife Zamira On the one hand, modern technology going down over time, the political mar- hard & seriously about effective institu- The Azeri government forced Hajiyev Hajiyeva) and other associates with the allows people to communicate with each ket will see a lot more entry and cut- tional responses. I'm not sure what those out shortly after the devaluation and purpose of transferring vast sums of other, fi nd support for their ideas or throat competition, resulting in the might be, but I suspect that at the moment began an inquiry into the bank’s insolvent money to the fake accounts. interests, and get organized. In this way, ‘simplifi cation’ of political messages the political classes in Western democ- loans. The APA news agency reported Zamira Hajiyeva is also facing embez- it greatly reduces the role of intermedi- (xenophobic walls and borders, jobs, racies are also scratching their heads that many of the loans were handed out zlement charges, though she has report- aries (professional politicians) in the free healthcare and education for all). trying to fi gure it all out.” to some of Azerbaijan’s most prominent edly fl ed the country. GEORGIA TODAY 8 BUSINESS JUNE 28 - 30, 2016 Georgian Foreign Minister Pays First Offi cial Visit to Liechtenstein of co-operation in economy, tourism, PREPARED BY KATIE RUTH DAVIES The fi rst offi cial visit to the Principality regional development and education. of Liechtenstein from Georgia The Georgian Foreign Minister pro- vided his colleague with information he Minister of Foreign regarding the priority areas of the Four- Affairs of Georgia, Mikheil Point Reform Plan initiated by the Prime Janelidze paid an offi cial Minister, and Georgia’s short-term objec- visit to the Principality of tives in this direction. Frick expressed Liechtenstein where he held her interest in sharing Liechtenstein’s Tmeetings with the Minister of Foreign experience with Georgia in many areas, Affairs, Justice and Culture of the Prin- including education, vocational training, cipality of Liechtenstein, Aurelia Frick, and regional development. Liechten- and the Hereditary Prince of Liechten- stein’s Minister of Foreign Affairs, Justice stein with governing powers, Alois. This and Culture highly appreciated the already is the fi rst offi cial visit to the Principal- implemented and ongoing reforms in ity of Liechtenstein from Georgia. Georgia, especially the introduction of During the meetings held in Vaduz, the electronic services – an innovative tool sides discussed various areas of bilateral offered to the citizens of Georgia. relations highlighting the great potential The sides underlined the importance of economic co-operation, stating the belief that the Free Trade Agreement between Georgia and the European Free Trade Association due to be signed dur- ing the Georgian Prime Minister’s forth- coming visit to the Swiss Confederation Janelidze invited Minister Frick for an will serve as an essential pre-requisite offi cial visit to Georgia. The Georgian for the further deepening of this co- As part of his visit to Vaduz, Mikheil operation. The Georgian Foreign Min- Janelidze met the Governing Prince of Foreign Minister ister reaffi rmed his readiness to host Liechtenstein, Alois. Both expressed Liechtenstein’s business delegation in their readiness to contribute to the devel- reaffi rmed his Tbilisi. opment of relations between Georgia The Georgian delegation expressed its and Liechtenstein. readiness to host gratitude for Liechtenstein’s support for Diplomatic relations between Georgia the sovereignty and territorial integrity and Liechtenstein were established in Liechtenstein’s of Georgia. Both sides reaffi rmed the 1992. In 2015, the Government of Georgia increasing level of positive co-operation and the Government of the Principality business within international multilateral formats. of Liechtenstein signed a Convention The sides spoke about the need to hold for the avoidance of double taxation and delegation in regular consultations between Georgia the prevention of fi scal evasion with and Liechtenstein and the importance respect to taxes on income and on cap- , Minister of Foreign Affairs of Georgia, meets Aurelia Frick, Minister of Foreign Affairs, Justice and Culture of the Principality of Liechtenstein Tbilisi of exchanging high-level visits. Mikheil ital. GEORGIA TODAY JUNE 28 - 30, 2016 BUSINESS 9

RETAIL FPI | Georgian Consumers Outsmarting Supermarket Managers?

easons change, and so do Geor- price” says. The reality – in Georgia and gian food prices. In the second elsewhere – is, of course, different. Very week of June, Georgia’s major different. Let’s take a quick look at some food retail networks (Carre- of the most common grocery items sold four, Goodwill, Fresco and in major Tbilisi supermarkets: SSPAR) lowered their prices by an aver- As is easy to see, there is very little age of 3.9% y/y and 1.8% m/m. Compared difference in the prices of some items, to the end of May, prices moved the most say, Koda and Dila eggs, which sell at for the following food items: eggplant 30-32 tetri. Yet, how come one super- (-21%), pasta (-10.3%) and coffee (-5.7%); market is offering exactly the same wheat fl our (+11%), buckwheat (+10.5%) 1kg package of Makfa fl our for 1.55 and garlic (+6.8%). GEL while another is pricing it at 2.05GEL (a difference of more than THE LAW OF ONE PRICE 32%)? Makfa fl our may be an extreme … WHAT LAW? case, but there are signifi cant differ- Why should exactly the same product ences, well above 10%, in the prices sell at dramatically different prices in of most grocery items. different shops? It shouldn’t. At least One possible explanation is that super- that’s what the economics “law of one market managers don’t know what they

are doing and base their pricing deci- One common trick is to use so-called sions on greed rather than calculation. “loss leaders” – the term for goods adver- Greed, however, may be a poor guide tised or sold at or below cost price. As for profi t-making. Once bitten, consum- explained on thekrazycouponlady.com, ers may get twice shy about shopping at “the objective behind having a few of greedy outlets. With competition among these for a sale period is to “lead” cus- Georgian supermarket chains increasing tomers into the store with the premise all the time, greed and stupidity will be that, once inside the store, the customers quickly punished. will also purchase full-priced items, mak- Another possibility is that some super- ing up for the profi t loss.” market chains are better than others in It is indeed quite common for shoppers securing low prices from their local and to succumb to the impulse and fi ll up international suppliers. For instance, this their shopping carts once they get into is the reputation of the largest US retailer, a store. But smart shoppers – hopefully, Wal-Mart. If this is the case in Georgia, there are some of them in Georgia – can we should observe some supermarkets do much better!!! Why not hunt for “loss being consistently cheaper than others leaders” and stockpile items that are sold in most food categories. at rock bottom sale prices? Outsmart Finally, supermarket managers may be supermarket managers, buy cheap and very smart guys who know how to lure avoid paying the full price every time consumers into their establishments. you run out of a product! GEORGIA TODAY 10 BUSINESS JUNE 28 - 30, 2016 Georgia Signs Free Trade Agreement with EFTA Member States

Prime Minister of Georgia, Giorgi Kvirikashvili signed a Memorandum with the European Free Trade Association (EFTA) for future collaboration in Bern, Switzerland

zerland, Lichtenshtein, Norway and Iceland. BY DIMITRI DOLABERIDZE Through this Agreement, Georgia will be able to send Georgian-made products to EFTA’s market with an expected 14 mln GEL profi t. The Agree- n 27 June, 2016, in Bern (Switzerland), ment covers the following fi elds: goods trade, ser- during a meeting of the ministers of vice trade, sanitary and phytosanitary measures; the European Free Trade Association, technical barriers in trade; regulations, trade facil- Georgia signed a Memorandum with itation and customs cooperation; investments; the European Free Trade Association intellectual property rights; government procure- O(EFTA) for future collaboration. ment; competition; trade protection measures, and Present were the Prime Minister of Georgia, sustainable development. Giorgi Kvirikashvili, together with Vice-Premier The talks between the parties began in September Dimitry Kumsishvili and other Georgian repre- 2015 with negotiations successfully completed on sentatives. 26 February, 2016. The agreement has entered into The EFTA consists of four member states- Swit- force upon signing by all parties. Georgian Econ Minister Blames Brexit for Lari’s Sudden Decline

BY NICHOLAS WALLER

eorgia’s Economy and Sustainable Development Minister, Dimitry Kum- sishvili, on Monday said the sudden precipitous drop of the value of the Georgian Lari against the US dollar Gcan be traced to the UK’s decision to withdraw formally from the European Union. Union. This caused the Euro and Pound to weaken In a referendum held on June 23, 52 percent of signifi cantly and the Dollar to rise. Of course, this voters in the United Kingdom opted to end their immediately affects our currency," Kumsishvili said formal membership in the EU and sent shockwaves in a televised interview with Georgian news agency around the world as the future of the EU and UK, Rustavi-2. itself, came into question. The Lari had been experiencing a rebound in With UK voters opting to be the fi rst to seek a recent months after hitting an all-time low of 2.4998 formal divorce with the EU, Britain’s exit – or Brexit on February 13. As recently as June 9, the Lari had – from the European Union has sparked widespread strengthened by 15 percent to 2.1196 against the panic on the world’s fi nancial markets. Several of Dollar, its highest rate in nearly 18 months. the world’s national currencies have gone into a Georgia’s National Bank maintains a policy of tailspin as the value of the Euro slid against the sharply appreciating the Lari by occasionally pur- Dollar, and the British Pound hit a 30-year low chasing foreign currency at auctions. From March- against the greenback. June, the bank bought more than USD 298 million The Georgian National Bank set Monday’s Lari at 11 auctions. exchange rate against the Dollar at 2.2941 GEL/ Due to the current market instability and the USD 1, a sharp 2 percent drop from Friday’s clos- volatile fl uctuation in the Lari rate, Kumsishvili ing rate. advised the public to keep a close eye on the "This is most likely a one-off that is directly con- exchange and buy and sell foreign currency only nected to the UK’s decision to quit the European when necessary.

Tel: (995 32) 2 45 08 08 10 Galaktion Street E-mail: [email protected] GEORGIA TODAY JUNE 28 - 30, 2016 BUSINESS 11 Georgian School of Public Administration Raising Civil Servant Competencies Civil servants are trained at the School train students in the basics of the State BY MAKHO JIGHAURISHVILI within the framework of the Public language, enabling them to write, read, Administration Program through spe- prepare short messages, and create let- cially designed educational programs. ters and documents in Georgian. he Zurab Zhvania Georgian The School regularly carries out studies The School’s strategic development School of Public Adminis- to better understand the needs of civil document was elaborated in 2014 by the tration hosted a media tour servants with the intention of imple- Ministry of Education and Science of in Kutaisi at which the rep- menting new programs for their further Georgia. Structural changes were under- resentatives of central and development. taken, and educational programs were Tregional media were able to familiarize Civil servants are trained within the updated to better fi t the requirements themselves with the school’s activities, frame of two programs: ‘Public Admin- and to meet the challenge of constantly Castello Mare core competences and ongoing processes. istration’ and ‘State Language Training having to re-train civil servants. Director of the school, Ketevan Jakeli, Program.’ The School focuses particu- The Zurab Zhvania School of Public and other representatives of the school larly on the representatives of ethnic Administration cooperates with other shared the school’s recent accomplish- minorities and supports their civic inte- state and educational institutions that ments with the audience. gration through educational programs. carry out various kinds of training and Hotel Opens in The LEPL Zurab Zhvania School of In parallel with the above programs in practical programs for professional Public Administration, operating under Kutaisi, a State Language Program is development, raising qualifi cations, pro- the Ministry of Education and Science implemented in the eight regional cent- viding practical skills necessary for career of Georgia, was founded on June 10, 2005, ers of the School (in Dmanisi, Akhal- development and theoretical knowledge, Adjara Region on the basis of Presidential Decree N kalaki, Ninotsminda, Tsalka, Bolnisi, overcoming defi cit of qualifi ed employ- 476. The School aims to raise the pro- Marneuli, Gardabani, Lambalo-Sagarejo ees and ensuring integration into the fessional level and qualifi cation of civil municipality) for ethnic minorities. The state system in ethnically mixed and high pools, several types of sauna, cosmetic servants employed in the public sector. aim of the State Language Program is to mountainous regions of Georgia. BY TATIA MEGENEISHVILI rooms, and a beauty salon with about 100 fi tness and therapeutic procedures. Prime Minister of Georgia, Giorgi n June 25 yet another fi ve Kvirikashvili, attended the opening cer- star hotel joined the ranks emony. In his speech Kvirikashvili under- of luxury accommodation lined that the USD 25 million project possibilities in Georgia. will support the development of tourism Castello Mare, located just in the region and create much-needed 17O kilometers away from city, was working places. opened on the Black Sea coast, in Tsikh- "This is a beautiful and absolutely isdziri village. unique resort and recreational complex. The complex, which consists of a hotel The building perfectly fi ts into this beau- and wellness resort, is a USD 25 million tiful and historic area, just like a chame- investment project. leon. This is a complex which gives even The hotel, which has a conference hall, more value to an already beautiful land- tennis court, billiards, bowling and div- scape,” said Kvirikashvili. ing school also offers something extra He went on to underline that the inves- special to its guests- a trip directly down tor Soso Orjonikidze, a Georgian born to the beach on modern elevators. businessman, gained his capital aboard. There are 90 rooms of eight different “However, he decided to invest the categories available, all of which boast money he earned in his home country. a sea view. Also available on the complex Besides this USD 25 million hotel, he is a spa center, recreational zone with has ambitious plans for developing the sports hall, a Jacuzzi, indoor and outdoor adjoining area as well,” the PM stated. GEORGIA TODAY 12 BUSINESS JUNE 28 - 30, 2016 US-Georgia SPC Encourages Georgia’s Democratic Progress

SPC meeting at MFA Georgia, June 21, 2015

nesses urging its rapid expansion to all criminal BY ZVIAD ADZINBAIA cases. The issue of implementation of additional reforms that “will further strengthen Georgia’s democracy and contribute to Georgia's achieve- he US-Georgia Strategic Partnership ment of its European and Euro-Atlantic integration Commission's (SPC) Democracy and goals” was emphasized. Governance Working Group reviewed The US working group welcomed Georgia's efforts progress following their November to improve the capacity and reduce the politiciza- 2015 meeting in Washington DC. tion of Georgia's public servants through legisla- TFollowing the meeting on June 21 in Tbilisi, the tion that will take effect in January 2017. The Work- parties released a joint statement affi rming the ing Group also praised the great strides Georgia importance of strong, depoliticized government has made in addressing the issue of traffi cking in institutions and transparent and accountable gov- persons. ernance. “The United States commended the pro- The Georgian delegation was led by co-chairs gress made by Georgia in furthering its reform First Deputy Foreign Minister, , agenda.” The sides agreed that an open, pluralistic, and First Deputy Minister of Justice, Alexander and peaceful political environment is essential to Baramidze. It also included a broad interagency Georgia's goal to make the October parliamentary delegation. The US delegation was led by Deputy elections a showcase of Georgia’s democratic pro- Assistant Secretary of State for European and gress. Eurasian Affairs, Bridget Brink; USAID Assistant In addition, the ways of ensuring a level and com- Administrator for Europe and Eurasia, Thomas O. petitive playing fi eld for political parties and can- Melia; Deputy Assistant Secretary of State for didates through principled leadership and improve- Democracy, Human Rights and Labor, Rob Ber- ments to election administration, as well as a free schinski; Coordinator of US Assistance to Europe and open media environment, were included in and Eurasia, Alina Romanowski; and Department the discussion agenda. The US welcomed “the of Justice Offi ce of Overseas Prosecutorial Devel- leadership of Prime Minister Kvirikashvili in dis- opment Assistance and Training (OPDAT) Regional couraging political violence and intimidation.” The Director for Eurasia, Catherine Newcombe. sides highlighted the crucial importance of the The Strategic Partnership Commission is the Prime Minister’s statement calling for the adoption primary mechanism for organizing and prioritiz- of a code of conduct among political parties to ing the broad and deepening cooperation between ensure a free, fair and stable electoral environment. the United States and Georgia. The Commission Among the other political and civic matters, the includes four bilateral working groups on priority sides acknowledged the importance of a strong and areas identifi ed in the Charter on Strategic Part- independent judiciary. The US commended Geor- nership: democracy and governance; defense and gia’s ongoing justice sector reforms, particularly of security; economics, trade, and energy; and people- the Chief Prosecutor's Offi ce. “The United States to-people and cultural exchanges. encouraged Georgia to continue its work in these On November 2, 2015, a plenary session within key areas, and to go deeper and broader both in law the framework of the US-Georgia Strategic Part- and in practice to strengthen checks and balances, nership Charter was held in Washington DC. including at the Ministry of Internal Affairs.” Furthermore, the American side praised Georgia’s View the full text of the statement: http://www.state. implementation of voluntary interviewing of wit- gov/r/pa/prs/ps/2016/06/258986.htm

Contact: www.edelbrand.ge Phone: 599 461908 GEORGIA TODAY JUNE 28 - 30, 2016 BUSINESS 13 Georgia’s Location Both a Blessing and a Curse, Former US Ambassador Says “Georgia is doing everything that any foreign policy specialist would recommend”

ing their principal part of the foreign THE WEST, GEORGIA MAY BY IA MEURMISHVILI FOR VOICE policy to the West, the new government COMPROMISE OR WEAKEN OF AMERICA GEORGIAN SERVICE is trying to improve the relationship with EUROPEAN SECURITY. IN Russia where possible. It’s a delicate bal- YOUR OPINION, DOES THIS Former U.S. Ambassador to Georgia, Kenneth Yalowitz ance that Georgia is trying to keep – to ARGUMENT HAVE ANY MERIT? ormer U.S. Ambassador to be sure that nobody else recognizes I don’t think so. Georgia has been prom- to what we do in Afghanistan and Iraq. Another thing is the military modern- Georgia, Kenneth Yalowitz, and and at the ised membership [to NATO]. It's not a Georgia deserves acknowledgment for ization. I know that Georgia is purchas- sat down with us to talk Geor- same time trying to deal with the Rus- question of if, it's a question of when. what it's doing. ing an air defense system from France. gia’s foreign policy and the sians without giving up on their princi- When Georgia becomes a member of Developing and improving defense capa- challenges ahead. While the pal position on Abkhazia and South NATO, it will be decided by all member YOU ARGUE THAT THE WESTERN bilities is excellent, and also very impor- formerF diplomat urges the West to send Ossetia. states that Georgia is a plus and can GOVERNMENTS SHOULD tant. However, I still hear that from the strong signals to Georgia, implying that contribute to the overall security of the SHOW SUPPORT FOR GEORGIA stand point of modernization and organ- it is not forgotten, he admits that the CONSIDERING THE DIFFICULTIES region. AND SIGNAL TO TBILISI ization of the Georgian military, there is Georgian government also needs to take YOU JUST DESCRIBED, DO I wouldn’t hold up hopes that this is THAT IT IS NOT FORGOTTEN. still a lot that needs to be done in terms some measures itself. YOU THINK GEORGIA IS going to happen immediately. If a MAP WHAT DO YOU THINK THE of being interoperable with NATO. Hope- A GOOD NEIGHBOR? is not given to Georgia, which seems GEORGIAN GOVERNMENT fully, having the NATO training center YOU CLAIM THAT GEORGIA Yes, I do. First of all, Georgia talks with likely at this point, there should be a SHOULD DO TO SOLICIT SUCH will help in this regard. HAS A DIFFICULT PREDICAMENT both Armenia and Azerbaijan. Georgia very strong expression of support for SUPPORT FROM THE WEST? The third issue is the economy. Geor- DUE TO ITS LOCATION AT A also has a very good relationship with Georgia. I think this is very important. When I was an ambassador to Georgia, gia – statistically – is not a rich country. STRATEGIC CROSSROADS. Turkey. Turkey has been a very big sup- There’s a lot of Russian-inspired prop- there was a tendency by some to blame Prime Minister Kvirikashvili has a num- WHAT MAKES THIS porter of Georgia since its independence. aganda that the West does not like Geor- Russians for everything that went wrong. ber of ideas to stimulate economic growth. LOCATION DIFFICULT? Further, Georgia has a good relationship gia, and the West will never make a home I’d agree with some of that, but I would That is absolutely crucial along with all If you look back at the history, all three with Iran. As long as that stays within for Georgia. This is false. I think I can also say that in the end, the Georgians these other things. Georgia must have South Caucasus countries were parts of the boundaries we have all set in terms understand why people in Georgia may are the ones who need to make correc- a strong functioning economy. The best something else, except for a brief period of dealing with Iran, I think that it’s very be wondering something along the lines tions, build solid state institutions, get way Georgia is going to attract Abkhazia before the , until 1991. The much a relationship to be welcomed. of ‘what do you really think of us?’ This rid of corruption. and South Ossetia back is not through reality today is that these are three small Georgia also has good relations with is why I believe that at the summit there There is a lot the Georgian government military means but through the strength countries. Russia is a declining power, Ukraine, also very important, because should offer a very strong signal of sup- and the people can do. First and most of its economy. Going through with the but it is still a major country; Turkey is both countries are dealing with diffi cult port. I also argue that the Secretary of important is the October parliamentary EU Association Agreement is vital. a very important country; and, obviously, issues because of Russia. The Russian State and other leading fi gures should elections. The fact that Georgia had two There’s going to be short term pain; Iran is an important country. Georgia relationship is very diffi cult. I think that’s visit Georgia soon! very good elections is terrifi c, but what adjustments that may hurt some indus- is perched right in the center of that. where the United States and the EU These kinds of things will underscore everyone wants to see is that it can now tries. But every country that has joined This location is a blessing because of it come in. Georgia has very solid people that this is a valued relationship and have elections without there being a the European Union has benefi ted. There being a strategic crossroads between conducting its foreign policy and they valued friendship and that we appreci- question about how open, free and fair may be a hard transition but Georgia east-west and north-south, but it’s also realize that to balance a great power to ate the military support Georgia gives the elections were. will ultimately benefi t from it greatly. a bit of a curse, because it has always the north you need good relations with been an object of invasions. the European Union and with the United The situation today is the most con- States. When you look at Georgian for- cerning, particularly regarding Russia- eign policy right now, Georgia is doing since the war in 2008 and the occupation everything that any foreign policy spe- of Abkhazia and South Ossetia. What cialist would recommend. Georgia has done since 2008 is very important and very logical. While keep- BY BECOMING A PART OF

ROUTING FLIGHT NUMBER WEEK DAYS DEPARTURE ARRIVAL TK 379 02:35 04:05 TBILISI - ISTANBUL ATATURK AIRPORT TK 387EVERYDAY 06:35 08:05 TK 383 22:55 00:30+1 TK 386 01:40 04:55 ISTANBUL ATATURK AIRPORT - TBILISI TK 382EVERYDAY 18:10 21:30 TK 378 21:15 00:30+1 TK 381 1/2/4/5/6/7 04:25 05:50 TBILISI - ISTANBUL SABIHA GOKCEN AIRPORT TK 381 3 05:05 06:30 ISTANBUL SABIHA GOKCEN AIRPORT - TBILISI TK 380 EVERYDAY 19:40 22:55 TK 391 1/2/4/6/7 10:35 11:40 BATUMI - ISTANBUL TK 393 1/3/4/5/7 20:15 21:20 TK 390 1/2/4/6/7 06:25 09:20 ISTANBUL - BATUMI TK 392 1/3/4/5/7 16:20 19:20

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