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Issue no: 970/90 • AUGUST 8 - 10, 2017 • PUBLISHED TWICE WEEKLY PRICE: GEL 2.50

In this week’s issue... Georgia Addresses Poland Regarding Ex-President Saakashvili NEWS PAGE 2 Electricity Market Watch GALT & TAGGART PAGE 4 Life in Europe’s Highest Village BUSINESS PAGE 5 Paper for Trees: The Tissue Paper FOCUS Initiative ON SAAKASHVILI BUSINESS PAGE 6 A look at former President Saakashvili before and GEM Fest Drug Accusations: after his Ukrainian Visa was stripped from him PAGE 2, 9, 11 One Dead, 20 Hospitalized SOCIETY PAGE 7 Source: © REUTERS/ UKRAINIAN PRESIDENTIAL PRESS SERVICE/HANDOUT VIA REUTERS Popular Oligarchy: Why Prometheus Cave, Martvili Canyon, Kazbegi National the Public Still Supports Park among Top Tourist Destinations in Georgia Georgian Dream river, which can be explored by boat. POLITICS PAGE 8 BY NINO GUGUNISHVILI Martvili Canyon, the second most popular site to visit in Georgia, is situated in the Samegrelo-Zemo Explaining Stalin’s Svaneti region of Georgia. Here, visitors can enjoy rometheus Cave and Martvili Canyon a 700- meter looping paved route which guides you Popularity Through Putin have been named among the top over beautiful waterfalls to what is known to have touristic destinations in Georgia this been the “favorite bathing spot’ of the Dadiani (old POLITICS PAGE 10 year. royal) family. For an additional 10 GEL fee over the According to current statistics for 5 GEL entrance, guests can take a self-row boat ride 2017P from the Agency of Protected Areas of along the river Abasha within the canyon. Martvili Mark Georgia, Prometheus Cave has so far been vis- Canyon was also recently named among the eight ited by 81,110 tourists, Martvili Canyon by 74,580 best scuba diving sites in Europe. Mullen on visitors and Kazbegi National Park by 72,102 Kazbegi National Park, in the northern slopes visitors. The list continues with Sataplia, (55,815 of the Caucasus Mountains, with a total area of the Future visitors), Okatse Canyon (38,088 visitors) and region, offers visitors exceptional views of sta- 9.030 hectares, of which only 35% is covered by Tbilisi National Park (30,228 visitors). lactites, petrifi ed waterfalls, stalagmites and forest and the rest of alpine pastures, was third of Misha The Prometheus Cave Natural Monument stone curtains. Prometheus Cave has 17 halls on the list of areas most visited by tourists in located near the city of Tskhaltubo in the Imereti which can be explored in guided groups, and a Georgia. POLITICS PAGE 11

Prepared for Georgia Today Business by Markets Asof04ͲAugͲ2017 STOCKS Price w/w m/m BONDS Price w/w m/m BGEOGroup(BGEOLN) GBP36.15 +5,1% Ͳ0,2% GEOROG04/21 105.76(YTM5.03%) +0,1% +0,7% GHG(GHGLN) GBP3.57 +0,7% Ͳ3,4% GEORG04/21 111.94(YTM3.39%) +0,1% +0,3% TBCBankGroup(TBCGLN) GBP17.09 +5,8% +4,1% GRAIL07/22 109.87(YTM5.44%) +0,0% Ͳ0,2% BGEOLN07/23 102.32(YTM5.54%) Ͳ0,0% +0,6% COMMODITIES Price w/w m/m CrudeOil,Brent(US$/bbl) 52,42 Ͳ0,2% +5,7% CURRENCIES Price w/w m/m GoldSpot(US$/OZ) 1258,88 Ͳ0,8% +2,9% GEL/USD 2,3910 Ͳ0,3% Ͳ0,3% GEL/EUR 2,8140 +0,1% +3,4% INDICES Price w/w m/m GEL/GBP 3,1171 Ͳ0,9% +0,6% FTSE100 7511,71 +1,9% +2,1% GEL/CHF 2,4574 Ͳ0,7% Ͳ1,0% FTSE250 19969,73 +1,2% +3,5% GEL/RUB 0,0399 Ͳ0,7% Ͳ1,2% DAX 12297,72 +1,1% Ͳ1,1% GEL/TRY 0,6775 Ͳ0,2% +0,5% DOWJONES 22092,81 +1,2% +2,9% GEL/AZN 1,4182 Ͳ0,2% Ͳ0,3% NASDAQ 6351,56 Ͳ0,4% +4,0% GEL/AMD 0,0050 ͲͲ MSCIEMEE 147,41 +1,3% +3,7% GEL/UAH 0,0924 Ͳ +0,4% MSCIEM 1067,26 +0,4% +6,0% EUR/USD 0,8494 Ͳ0,2% Ͳ3,6% SP500 2476,83 +0,2% +2,0% GBP/USD 0,7669 +0,7% Ͳ0,9% MICEX 1953,49 +1,9% +1,9% CHF/USD 0,9727 +0,4% +0,7% MSCIFM 2748,16 Ͳ1,3% +1,5% RUB/USD 59,9685 +0,7% +0,9% GTIndex(GEL) 1133,66 ͲͲTRY/USD 3,5280 +0,0% Ͳ0,9% GTIndex(USD) 922,38 Ͳ0,4% +0,6% AZN/USD 1,7014 +0,2% +0,9% GEORGIA TODAY 2 NEWS AUGUST 8 - 10, 2017 Georgia Addresses Body of Georgian Soldier Killed Poland Regarding in Afghanistan Brought Home Ex-President Saakashvili

Saakashvili stressed that he is going to BY THEA MORRISON to protect his rights. “I will return to Ukraine before the trial in order to protect my rights and eputy Head of the Public appeal against the absolutely illegitimate and Mass Media Relations order," he said. Department of the Pros- Malgorzata Gosiewska, a Polish MP, ecutor’s Offi ce of Georgia, commented on Saakashvili’s case in a Giorgi Grdzelishvili, stated Facebook post, underlining that despite Dthat they have addressed Poland with the spread of tinformation in Georgian regard to former President Mikheil media that the Georgian side had asked “I share the pain of the family and Bebiashvili is the 32nd Georgian soldier BY TEA MORRISON Saakashvili. Poland to extradite Saakashvili, the Pol- friends of the deceased soldier,” the killed while performing duties in a peace- “Based on the information spread by ish side has not received any offi cial let- President stated. keeping mission in Afghanistan. the media on Saakashvili’s visit to the ter with such a request. The Minister of Defense of Georgia, He died on August 3 in an attack dur- Polish Republic, the Prosecutor's Offi ce “Saakashvili is in Poland as a friend of he body of a Georgian Levan Izoria, underlined that Bebiashvili ing joint motorized patrolling in the of Georgia addressed the competent Poland and the Polish people, and the peacekeeper, Junior Ser- was an exemplary soldier who had “sac- Islamic Republic of Afghanistan. Three authorities of the Polish Republic and authorities and citizens of the Polish geant Mdinari Bebiashvili, rifi ced himself for his country's interests”. other military servicemen of the Geor- started all relevant procedures envisaged Republic treat him with the honor he 25, who was killed during “His name will be immortal,” the min- gian Armed Forces, participating in the by law," he said. deserves, because he is a politician who the attack on Bagram air- ister added. Resolute Support Mission, were also After being deprived of his Ukrainian played an important role in establishing Tfi eld in Afghanistan, was brought back The US Ambassador to Georgia, Ian injured in the attack and were taken to citizenship in late July, the former Geor- friendly relations between Poland and to Georgia by a special fl ight of the United Kelly, also attended mourning ceremony. Bagram medical hospital. gian President arrived in Poland several Georgia,” the MP stated. States Air Force on Sunday. “I cannot fi nd proper words to express The Ministry of Defense reports that days ago to attend the 73rd anniversary Gosiewska added that Saakashvili's A mourning ceremony was held at my pain and sympathy for the deceased Corporal Gega Kharshiladze is in a good of the Warsaw Rebellion. presidency has been highly esteemed in Tbilisi International Airport, seeing rep- Georgian soldier. I would like to offer my condition and was discharged from hos- Now that Saakashvili does not have Poland for implementing public - polit- resentatives of the government, diplo- condolences to the family,” the Ambas- pital on Saturday, while the health of citizenship of any country, it was a won- ical - economic reforms as well as for matic corps and citizens gathered to pay sador stated. After the ceremony, the body Captain Mikheil Gvirjishvili and Lieu- der how he was able to fl y from the bringing Georgia closer to NATO and tribute to the Georgian soldier. was transferred to the National Bureau tenant Giga Khakhutashvili, also injured United States to Poland. European Union and also for the con- Georgian Prime Minister Giorgi Kviri- of Expertise from the Airport and taken in the attack, is satisfactory. Saakashvili says that although he was tinuation of the road that will be con- kashvili said at the ceremony that the to Bebiashvili’s village, Martotunbani, in To honor the memory of Bebiashvili, deprived Ukrainian citizenship, he had cluded by integration with Euro-Atlan- loss was a tragedy for all Georgia. Zestaponi municipality, western Georgia. the Georgian fl ag was lowered at the “no problem traveling to Poland from tic structures in the future. “I would like to offer condolences to Junior Sergeant Mdinari Bebiashvili had Hamid Karzai International Base, Bagram the US”. Saakashvili was stripped of his Ukrain- the family and the relatives of the deceased been serving in the Georgian Armed Forces Base, the Resolute Support Mission Com- “I left the US with a Ukrainian passport ian citizenship around a week ago. If he and then to the whole country,” the PM since 2010. Having participated in the mand Headquarters in Kabul and the and I arrived in Poland in the same man- returns to Ukraine, he will be deported stated. International Security Assistance Force Mazar-i-Sharif Base, Marmal at the joint ner, passing the proper control,” he said, to Georgia and held responsible for Giorgi Margvelashvili, President of (ISAF) mission in Afghanistan twice, in decision of the Chief of Military Armed adding that he plans to leave Poland for charges offi cially raised against him in Georgia, said that Bebiashvili died a hero, 2012 and 2014, he was awarded for par- Forces of Georgia in Afghanistan and other European countries. 2014. defending global security. ticipation in peacekeeping operations. NATO's Afghan Command. Georgian Wine Export Increases by Georgia to Host First International Competition of Qvevri Wines National Wine Agency. The competi- BY NINO GUGUNISHVILI tion is to be held within the frames of 60% in 7 Months the 4th International Qvevri Wine Symposium. than in 2016. January-July brandy exports On the whole, export income for alco- BY THEA MORRISON he fi rst international com- The fi rst international competition this year amounted to $18.7 million, which holic drinks this January-July amounted petition of Qvevri wines of Qvevri wine will introduce the best is 89 percent higher than the earnings to $143,15 million, a growth of 55 percent is to be held in September, local and foreign Qvevri wine brands for 2016. compared to the same period in 2016. the Georgian Wine Asso- and is expected to promote its produc- eorgia’s National Wine ciation (GWA) announced. tion and consumption. The competi- Agency (NWA) reports TheT GWA will be organizing the event tion is open to all Qvevri wine produc- that in January-July 2017, with the support of the Georgian ers worldwide. around 38.3 million bottles of wine were exported from GGeorgia to 44 countries worldwide. Based on these numbers, exports were 60 per- cent higher in the last seven months than the same period in 2016. January-July wine exports this year amounted to $84.3 million, which is 52 percent more than 2016. “According to the export data of seven months, wine export has grown by 60 percent compared to the same period of the previous year and. Wine income has grown by 52 percent. Export of Gorgian wine has grown in the countries of Euro- pean Union, south-west Asia, USA and other countries- a result of the collabo- rative work and marketing activities of the NWA and wine sector,” the head of the Agency, Giorgi Samanishvili, said. The top importers of Georgian wine are , China, Ukraine, Poland, and Kazakhstan. In addition, during the seven-month period, 8,212,243 bottles of brandy were exported to 17 countries, 91 percent more

GEORGIA TODAY 4 BUSINESS AUGUST 8 - 10, 2017

The Galt & Taggart Research team comprises Georgian and Azerbaijani fi nance and economic experts who have broad experience of covering the macro and corporate sectors of the two countries. Our current product offering includes Georgian and Azerbaijan macroeconomic research, Georgian sector research, and fi xed income corporate research. For free access to Galt & Taggart Research, please visit gtresearch.ge or contact us at [email protected]. Electricity Market Watch

increase in the share of deregulated FOR GEORGIA TODAY BY NEW END-USER TARIFFS power plants from 15.5% to 20.5% of MARIAM CHAKHVASHVILI FOR NATURAL GAS total installed capacity and about 3.1TWh GNERC has recalculated natural gas end- (26.0% of electricity supply in 2016) user tariffs for the three leading gas dis- will be supplied to the Georgian market tribution companies, which together ector research is one of the at unregulated prices annually over accounted for 89.8% of the market in 2016. key directions of Galt & Tag- 2018-2019. Notably, 77.6% of deregulated Old tariffs varied by region and supply gart Research. We currently power plants (in terms of installed pressure, while the new methodology provide coverage of Energy, capacity) have PPAs with ESCO. There- sets a uniform, transparent tariff struc- Healthcare, Tourism, Agricul- fore, a signifi cant portion of the newly ture. The end-user tariff is comprised of Sture, Wine, and Real Estate sectors in deregulated generation will still be three components: transmission, cost of Georgia. As part of our energy sector traded through ESCO at the rate and gas, and distribution. The transmission coverage, we produce a monthly Elec- for the period set out in the respective tariff, which has remained unchanged for tricity Market Watch, adapted here for PPAs. 17 years, is now set at 1.884 tetri/m3 for Georgia Today’s readers. Previous reports all consumers, an average increase of 0.5 ENERGO-PRO BUYS KAKHETI during Feb-Apr from Armenia. Exports on the sector can be found on Galt & DIRECT CONSUMERS SET TO tetri/m3. Cost of gas, which now incor- ENERGY DISTRIBUTION to Russia almost doubled (+98.2% y/y) Taggart’s website - gtresearch.ge. ACCOUNT FOR AT LEAST A porates a government subsidy of 5 tetri/ Kakheti Energy Distribution was sold and accounted for over half of electricity QUARTER OF TOTAL ELECTRICITY m3, in effect since March 2013, is set at for GEL 21.7mn at a public auction. The exports (53.3%), with ESCO being the CHANGES IN ELECTRICITY CONSUMPTION IN GEORGIA 26.8 tetri/m3 (a decrease of 12.5%, as stated buyer was Energo-Pro Georgia, the larg- sole exporter. The reason behind the AND GAS MARKET RULES According to the changes to the Law on by the offi cials). The distribution tariff, est electricity distribution company in increase in exports to Russia was an unex- AND REGULATIONS Georgia, whose market share will increase pected surplus of generation in the second By signing the Energy Community char- from 60.2% to 64.6% as a result of this half of the month and infl exibility of other ter in October 2016, Georgia took on the transaction. Energo-Pro Georgia will markets to import additional electricity obligation to synchronize Georgian leg- become the sole electricity distributor on short notice. Overall, ESCO accounted islation with EU standards in the energy in Georgia outside of Tbilisi. Kakheti for 63.4% of total electricity exports in sector. On June 30, 2017, changes were Energy Distribution has operated in June 2017. made to the Law on Electricity and Nat- bankruptcy since 2011, managed by a ural Gas, setting deadlines for the grad- representative of the National Bureau HPP GENERATION SATISFIED ual opening of the market and fi lling the of Enforcement. For three years prior, ELECTRICITY DEMAND gaps in the current secondary legislation. the company was owned by a Lithuanian Electricity demand was satisfi ed largely Changes in the natural gas sector are concern, Achemos Grupe. Current out- by hydro generation, with 99.1% in the more technical – the Grid Code for Nat- standing debt of GEL 21mn will be paid supply mix. The new wind power plant ural Gas, which needs to be developed off from the GEL 21.7mn purchase price. accounted for 0.8% of total electricity and approved by September 2018, will supply. 20.9% of domestic generation regulate the technical aspects of natural ELECTRICITY CONSUMPTION was exported. Total hydro generation gas supply for each market participant. AND GENERATION – JUNE 2017 was up 3.4% y/y. Deregulated HPPs posted Changes in the electricity sector are Electricity and Natural Gas, starting May designed to cover the distribution licen- Domestic consumption increased 3.1% a 22.7% y/y increase in generation, due more signifi cant, as they will result in 1, 2018, consumers connected to high see’s investment costs, is the only remain- an increase in the number of players voltage (35kv and above) transmission ing driver of tariff differences among outside the regulated market and stimu- lines will automatically be registered as distribution companies. End-user tariffs late competitive trades between market direct consumers. This change will result (including VAT) per m3 as of July 20, 2017 participants. in an increase in the number of direct are set at 46.153 tetri for KazTransGas consumers from two to over 60, with Tbilisi (+1.2%); 56.940 tetri for Socar DEGREE OF DEREGULATION aggregate annual consumption of at least Georgia Gas (+26.7%, on average); and IN ELECTRICITY MARKET SET 3.1TWh (28.2% of 2016 consumption). 57.011 tetri for SakOrgGas (+30.5%, on TO INCREASE IN 2018 Other companies will retain the option average). Notably, these changes apply Currently all TPPs, as well as HPPs to be registered as direct consumers. only to regulated users, which account constructed before August 1, 2008, with The increase in the number of players for 47% of total supply. Consumers who installed capacity of over 13MW, are on the unregulated market should foster were connected to the national gas infra- regulated by GNERC, which limits their price competitiveness for all market structure in the regions after Sep-2007 ability to sell electricity for more than participants. Furthermore, such legisla- and in Tbilisi after Aug-2008 are deregu- the predetermined tariff. According to tive changes can lead to electricity trad- lated and pay the prices set independently the changes to the Law on Electricity ers appearing on the market, which can by distributors (50 to 63 tetri/m3 on aver- and Natural Gas, the minimum thresh- be benefi cial for direct consumers, as age). The Ministry of Energy has voiced old will increase from 13MW to 40MW they offer various services, including the possibility of the entire gas distribu- as of January 1, 2018. Based on our esti- fi xed price contracts and one-shot pay- tion market becoming regulated, with a mates, this change will result in an ments, among others. uniform tariff structure for all users.

y/y in June 2017 and 6.9% y/y in 1H17. to the addition of Dariali and Khelvachauri Consumption of distribution companies HPPs, while generation was up only 1.8% increased 2.9% y/y in June. The Abkhaz- y/y by Enguri/Vardnili and down 1.8% ian region’s electricity usage was up 1.3% y/y by other regulated HPPs. The guar- y/y and accounted for 9.3% of domestic anteed capacity fee was halved, down consumption. Consumption by eligible 50.5% y/y to USc 0.39/kWh, as Block 3 consumers was up 5.6% y/y, with Geor- and Gardabani CCGT were under main- gian Manganese usage up 10.3% y/y. tenance for the entire month and did not receive guaranteed capacity payments, DIVERSIFIED EXPORT MARKETS while the other TPPs provided guaran- Electricity exports increased 8.6% y/y in teed capacity for the entire month. June 2017 to 230.1 GWh and 7.4% y/y in 1H17. 28.3% of exported electricity went ELECTRICITY PRICES IN to Turkey, down 38.8% y/y. The top export- GEORGIA AND TURKEY ers to Turkey were Georgian Urban Energy Wholesale market prices in Georgia (58.0% of total) and Adjar Energy 2007 increased 5.0% y/y to USc 5.1/kWh. Only (26.2% of total). ESCO also exported 5.1 4.8% of total electricity supplied to the GWh (8.0% of total) to Turkey, in exchange grid in June 2017 was traded through the for electricity imports from Azerbaijan market operator, with the rest traded in 2012. Exports to Armenia decreased through bilateral contracts. The average 2.3% y/y and accounted for 18.4% of total monthly market clearing price in Turkey Tel: (995 32) 2 45 08 08 exports, split between GIEC (60.3%) and decreased 17.0% y/y to USc 4.3/kWh, 10 Galaktion Street E-mail: [email protected] ESCO (39.7%), which exported electricity 14.9% below the Georgian wholesale in exchange for the electricity imported market price in June 2017. GEORGIA TODAY AUGUST 8 - 10, 2017 BUSINESS 5 Life in Europe’s Highest Village

to ‘digitize’ the remote mountainous vil- MagtiCom-SES project was a very impor- BY NANA MGEBRISHVILI lage of Ushguli in just a couple of days. tant moment in the history of Ushguli. Georgia was committed to its digital All the necessary equipment for digital switchover. Through a decision of the satellite broadcasting and installations t an altitude of 2,200 meters International Telecommunications Union were provided by MagtiSat and the above sea level, the remote and the EU, the process was to be com- population of Ushguli will enjoy a 25-chan- village of Ushguli in Geor- pleted during 2015,not only in Georgia, nel package free of charge forever”. gia’s Svaneti mountains is but across Europe as a whole. Switching Young people are most aware of the known as the highest per- to digital television broadcasting was need for modern telecommunications Amanently inhabited settlement in Europe. yet another step towards Georgia’s devel- systems in the village. 28-year-old Bakar The village stands at the foot of Mt opment and its overall digitization, but Nijaradze works in the fi elds with his Shkhara (5,200m), one of the highest a signifi cant milestone had already been family every day. Agriculture, as well as summits in the Caucasus. Unlike many reached in early 2012 with the launch of tourism, is their main source of income. degree in this fi eld,” she says. “Tourists other mountain villages, Ushguli is still MagtiSat, Georgia’s fi rst-ever domestic “It’s summer now and the village is full particularly like our early medieval stone home to up to 70 families, and even digital satellite television company. The of people, joy and happiness. But in win- towers, our local cuisine and our hand- boasts a public school and an outpatient establishment of MagtiSat was the result ter it’s completely different, as there icrafts. The number of tourists increases clinic. Its superb location and the unique of a long-term agreement between the aren’t so many people around. People every year. Tourism has become the main lifestyle of its inhabitants have made it Georgian telecommunications company stay at home throughout most of the day, source of income for local people as it’s a popular and interesting destination. MagtiCom, and SES, one of the world’s watching TV and waiting for summer. hard to fi nd any other employment in Ushguli has naturally been the focus largest satellite operators. TV and satellite broadcasting is very Ushguli. And there isn’t much we can of much attention from local, regional “Ushguli has recently seen signifi cant important for the village. Thanks to tel- do for entertainment- we mostly watch and national authorities. The rehabilita- development,” says Beso Charkseliani, evision, we don’t lose contact with the TV when we have spare time. I love tourism potential,” Charkseliani explains. tion of the road from Mestia (Svaneti’s the local governor’s representative in world,” he says. music and often watch musical programs This is how people live in Ushguli. The administrative center) to Ushguli has Ushguli. “The rehabilitation of the road The local population learns a lot from and sing with my siblings. TV is also our village welcomes tourists in summer, already begun, and is expected to solve is particularly valuable. The road from the information they receive via TV. main source for information,” she adds. and watches TV in winter. But the most most of the problems the local popula- Mestia to Ushguli is only 45 kilometers, They discover new hospitality standards Laerti Charkseliani, 40, lives in Ushguli important thing is that they don’t lose tion faces. And the private sector, too, but because of the road’s extremely bad and improve existing ones, watch how with his wife and two children. Their hope… hope that everything will change has been very active in this unique region. condition, it takes over 2 hours to drive. developed resorts welcome tourists and café is one of the best in Ushguli, and is for the better, that all their plans will be MagtiCom most notably implemented This is a huge problem for us. Rehabili- try to do the same, and fi nd out more often full of tourists. Charkseliani attrib- successful, and that the highest perma- a unique project in the village called tation works have already begun, and about the needs and requirements of utes the rise in the number of tourists nently inhabited village in Europe will “MagtiSat Digital Broadcasting in Every we hope they will be fi nished soon. A foreign visitors. As a result, young peo- to the rehabilitation of the road to Mes- be developed as much as it deserves. House of Ushguli,” whereby it provided good road will really help the local pop- ple in Ushguli are increasingly interested tia and developed telecommunication a digital satellite television signal to each ulation: communication between Ushguli in tourism. They are deeply involved in in Ushguli. In 2015, the Georgian mobile and telecom- household via SES’s satellite. The project and the rest of the world will be simpli- the ongoing development of the sector “Ushguli honestly deserves attention. munications company MagtiCom, with the was implemented during Georgia’s ter- fi ed and it will also help efforts to improve in the village, do their best to ensure the The village is a UNESCO World Herit- support of global satellite operator SES, restrial digital switchover in 2015, and access to medical services”. high standards of guest houses, and try age Site and is clearly experiencing launched a project called “MagtiSat Digital was initiated by SES, a leading satellite “Education and healthcare have really hard to offer tourists a perfect service. development, but much more is needed. Broadcasting in Every House of Ushguli”. operator which provides satellite com- improved in the village,” Charkseliani Having analyzed Ushguli’s potential People always say ‘the summer is good, MagtiSat provided a digital satellite television munications services to broadcasters, adds. “We have a public school, but we and existing opportunities, 22-year-old but what to do in winter?’ The local signal to each household via SES’s ASTRA content and internet service providers, don’t have teachers of mathematics, Rusudan Ratiani decided to obtain a population mostly stays at home and 5B satellite at 31.5 degrees East. All the mobile and fi xed network operators, physics or sports. An outpatient clinic degree in Tourism. After graduating from watches TV in winter. There is nothing necessary equipment for digital satellite broad- governments and institutions around was opened recently, but the services it the State Teaching University in Gori, else to do. I’m glad that we have free TV casting and installations were provided by the world. Georgia’s terrestrial switcho- can provide are insuffi cient and much she returned to her village and now runs broadcasting. It’s nice that someone cares MagtiSat free of charge. As a result, the vil- ver was not an easy process, especially needs to be improved. Providing a full a guest house with her parents, fi ve sis- about us and that every family can now lage of Ushguli is now 100% digital, and in the country’s numerous mountain fi rst-aid service is not possible up here. ters and two brothers. watch television. Telecommunications each family can enjoy the superior quality of regions, but thanks to this unique, one- Introducing modern technologies is “Tourism is developing very fast in are really moving forward, and this is a satellite signal thanks to a 25-channel “G” off project, SES and MagtiSat managed essential for the local population. The Svaneti, and so I decided to study for a essential for the development of our package free of charge forever. GEORGIA TODAY 6 BUSINESS AUGUST 8 - 10, 2017 Paper for Trees: The Tissue Paper Initiative

INTERVIEW BY DAVID MONGAZON

ASHA Bank has been deeply involved in the rehabilitation of Borjomi Forest, joining the Aghadgine project in May. This project aims to replant the 750,000 trees which were burned during the 2008P war and a wildfi re in summer 2015. The pro- ject is ambitious, and PASHA Bank seems to real- ize this, as it has been introducing partners to the campaign progressively in order to bring together all goodwill institutions who want to help. One of them is Tissue Paper, a company that collects and recycles paper and creates new products with it. Tissue Paper recently announced it will collect paper waste from volunteer companies and donate 0,15 GEL to the Borjomi Forest reforestation project for each kilogram of paper collected. GEORGIA TODAY spoke to Levan Devadze, General Manager of Tissue Paper, to fi nd out more. by SMS and we also call libraries and schools to as the companies see the real results of our activ- inform them on which date our trucks will come ity, I think the scope will become quite impressive. RECYCLING IS A NEW CONCEPT to pick up the paper. It works especially well in And the staff of these companies will probably be FOR GEORGIA. HOW DID TISSUE isolated regions. But it’s not only pick-up trucks, proud to contribute to it. In fact, we have a very PAPER COME ABOUT? In the long run, I think it’s also a sort of bookshop. For example, we give nice model to attract them: instead of paying money Tissue Paper was established in 2014 and aims for them a portfolio books and in exchange we take to the companies, we pay the holding and they an environmentally sustainable approach, using we can plant 18- their waste paper. Our third campaign started in fi nance the reforestation. We think this approach paper, from the offi ces of companies which other- July and is the campaign of reforestation together will have an impact. We plan to reforest the Bor- wise consider it waste, as a source to create new 20,000 trees annually with PASHA Bank and BIA Holding. jomi region and also go further because not only products. Our products have gained in popularity all over the country, especially in big cities such as have fi res affected the area but also a lot of parasitic because we have an original approach, ensuring Tbilisi, Batumi and Kutaisi. Also, as Tissue Paper HOW DO YOU SEE THE MARKET OF infestations. In the long run, I think we can plant good quality and an affordable price, plus they are is part of a publishing company, Palitra Holding, WASTE MANAGEMENT IN GEORGIA, 18-20,000 trees annually, it’s a realistic prospect. made in Georgia and from Georgian materials. we introduced the idea of making the paper and AND PARTICULARLY PAPER WASTE? Because of this, the size of the company and its raw materials into new books. It’s a very interest- Georgia has huge opportunities for environmen- WHAT IS THE ROLE OF PASHA BANK, THE activity is increasing, as well our workforce: at the ing and promising campaign which also targets tally-oriented business development. Our business LEADING COMPANY OF THIS PROGRAM? beginning, there were 60 people working for us, government organizations in the regions. Outside is quite low in this sector right now and I hope that It’s the gathering company in this project. Of course, today we have 135. the capital, there are schools, libraries and govern- Georgian companies will support our government they don’t take commissions. Even in 2008, when We collect our raw material from three sources, ment organizations which have used paper just and international organizations to make the neces- the deforestation of Borjomi forest was starting, which are linked with the principles of our com- waiting to be recycled. Twice a month we have sary changes. Nowadays, we have more opportuni- PASHA Bank independently started a campaign pany. We have a collection network which is spread advertising campaigns via local TV channels and ties than ever before to introduce new technologies by themselves. But then I think they understood and new production processes. It will save us a lot doing it alone didn’t make enough impact, and in of money, a lot of time, and potentially have spec- mutualizing their successful experience with BIA tacular results quantitatively, in terms of produc- Holding and Tissue Paper, they realized it would tion, but also in society. work better. Pasha bank is an idea promoter. And it also uses its client base to increase the scale of WASTE MANAGEMENT IN GEORGIA IS the project. MAINLY ORGANIZED BY COMPANIES THEMSELVES, BUT DO YOU THINK THE IDEA OF THIS CAMPAIGN IS THE PUBLIC WOULD BE MORE ACTIVE ALSO TO EMPOWER THE CHAIN OF IF PUBLIC INSTITUTIONS GOT MORE TREE EXPLOITATION AND PAPER INVOLVED IN WASTE COLLECTION? PRODUCTION AND CONSUMPTION. One direction for the development of waste man- IS THERE ALSO A PLAN TO RAISE agement in our country is self-management and AWARENESS OF THE FACT THAT PAPER the self-organization of the companies themselves AND TREES ARE A LIMITED RESOURCE? to align their activities with an environmental Our campaign includes not only the reforestation approach. Another direction which could have a program: it’s also a means to promote these issues bigger impact comes from the government. For in schools, for younger generations. The main idea example, they introduced cleanliness laws for both is to show them how they can be active citizens, private and government companies, which encour- to teach them how to use materials effectively and ages the separation of waste. Such initiatives also to recycle, like in Germany, France and other coun- impact individuals. Only by doing this can we solve tries. And, for example, as I know, GEORGIA waste issues and the many problems linked with TODAY has a special edition for schools, Georgia it, such as pollution. It’s also good for environmen- Today Education. This could be used to raise aware- tally-oriented companies, because without such ness of the teachers. Then we could intervene in legislative framework, we lack the raw material schools and explain to children and teachers how resources we need for our recycling process. important it is to sort raw materials. Activities outside schools can also be important, like in the SO, IT’S ALSO GOOD FOR forests. And step by step there would be more YOUR COMPANY… responsible citizens in Georgia. It’s not only through Of course, and not only for us, but for other recy- fi nes and punishment that we can make the streets cling companies, too. And I want to draw your cleaner; the people also have to take care of their attention to another issue: a lot of countries have cities. It’s also an issue of self-awareness. protection legislation frameworks which restrict the uncontrolled exportation of raw material. The majority of paper from Georgia is exported, mainly to Turkey. And the problem is that companies there recycle it and then transform it into products they sell in Georgia. We’re losing a lot of surplus value due to this. Our company is also working on pro- tecting raw material from such uncontrolled extrac- tion. The majority of paper

FIRST BRAND HOTEL IN KUTAISI UNDER BEST WESTERN INTERNATIONAL THE GOAL IS TO REHABILITATE from Georgia is Within the framework of the Georgian Hotels’ Regional Three mobile conference halls are available with a total THE WHOLE BORJOMI FOREST Network Development Project “12 hotels in 12 regions” by capacity of about 100 persons. WITHIN 5 YEARS, WHICH MEANS exported, mainly to GHYHORSPHQWFRPSDQ\³6LPHWULD´WKH¿UVWEUDQGKRWHOKDV REPLANTING 750,000 TREES. HOW been opened in Kutaisi under the Best Western International (XURSHDQFXLVLQHFDQEHHQMR\HGLQWKHJURXQGÀRRUFDIp MANY TREES DO YOU PLAN TO brand. and a grill-bar menu in the roof top restaurant Turkey... companies with panoramic views over the city. PLANT WITH THIS CAMPAIGN? The hotel accommodates 45 guest rooms, including 40 We’re not alone in this campaign- there are 15 other there recycle it and standard rooms and 5 suites. The hotel was designed taking The International Hotels Management Company “T3 into consideration special conditions and safety for guests Hospitality Management,” providing the hotel management, companies participating. But for our part, we already with disabilities. has 20 years’ experience in hotel management in different gathered 10 tons of paper in 10 days. That means then transform it into countries globally. we already gathered enough money to replant 130

Address: 11 Grishashvili Str., 4600, Kutaisi, Georgia trees. But we believe this will increase and we don’t products they sell in TEL 219 71 00 expect to stay at a level of 300-400 trees per month, [email protected] we know it will increase in the long run. As soon Georgia GEORGIA TODAY AUGUST 8 - 10, 2017 SOCIETY 7 GEM Fest Drug Accusations: One Dead, 20 Hospitalized police and no drugs are sold there. BY THEA MORRISON "From the very fi rst day of the festival, entrance has been strictly controlled and the maximum safety measures applied 22-year old girl died on due to the number of visitors expected,” Saturday allegedly due to he stated. an overdose of drugs at the Around 20,000 people are said to be famous month-long Geor- visiting the festival on a daily basis. gian Electronic Music Fes- “Representatives of the Ministry of Atival (GEM Fest) in the Black Sea coastal Internal Affairs are mobilized at the town of Anaklia. entrances as well as on the coastline. The girl was taken to Zugdidi Hospital Nobody is allowed to sell narcotic sub- but died eight hours later. It is alleged stances on the territory,” he emphasized. that she took the psychoactive drug “Bio,” Georgia’s Ministry of Internal Affairs also known as Gamma-Hydroxybutyrate (MIA) has so far detained fi ve people (GHB), which has been seen increasingly for drug crimes at GEM Fest. throughout Georgia of late. “MIA law enforcers seized 38 pills of GHB is a central nervous system depres- 'Ecstasy' and 6547 grams of 'MDMA' sant that is commonly referred to as a during personal searches,” the ministry “club” or “date rape” drug. GHB is used reports. by teens and young adults at bars, par- Community organization White Noise ties, clubs and “raves” (all night dance has asked the government to call an parties), and is often placed in alcoholic extraordinary parliamentary session to beverages. discuss the drug reform proposed by the Over the last 5 days, around 20 people National Platform for Drug Policy. have been taken to hospital from the fes- Their statement reads that, reportedly, tival with similar symptoms to the deceased several cases of intoxication by an uni- liberal drug policy to “solve the existing fully equipped with monitoring mech- ers to publicize the results of the inves- girl. One of them is a citizen of Ukraine. dentifi ed psychoactive substance were drug problems within the country”. anisms for drug use will help to prevent tigation and inform society what sub- All but one of them were discharged from reported at the festival but at this stage “The only correct answer to this situ- unwanted risks. This can only be stance killed the young girl and poisoned hospital on Monday. it is not known whether there is a link ation is a fast, fundamental reform of achieved by providing the right medi- the others. Giorgi Sigua, GEM Fest founder, says between this case and the 15 hospitalized Georgia’s drug policy,” White Noise cal health care and social welfare for “We call on those people who consume that the festival territory is strictly con- festival attendees. representatives said on the topic of drug citizens”. drugs to take care and not to take unknown trolled by in-house security and local The organization is pushing for a more use. “Providing appropriate structures The movement also calls on law enforc- substances,” the organization said. BUSINESS Turkmen Crude Oil Discharged in Iran bypassing American Sanctions

In this particular case, the decision of FROM INFORMATION Dragon Oil to start deliveries of crude AGENCY ‘PIRWELI’ oil to Iran looks both hasty and risky considering that the oil producer per- forms all fi nancial transactions in US n August 3, a VF Tanker-20 dollars, works on a long-term basis with under the Russian fl ag US contractors (for instance: the larg- arrived at the Iranian Cas- est American oilfi eld service company pian port of Neka and “Schlumberger”) and has US citizens discharged around 6,000 occupying top-management positions. tonsO of Turkmen-origin crude oil pro- It is also surprising that ENOC, the duced by the company "Dragon Oil". national oil company of the United Arab The discharge of that cargo took place Emirates, is actively developing new on 3-4 of August into the terminal, which business with Iran, bypassing US sanc- is owned and operated by the National tions, despite the fact that the UAE is Iranian Oil Company (NIOC). the USA's main ally in the region. This is the fi rst time in a long time It is not excluded that this delivery to that Dragon Oil, 100% owned by the Iran was not initially planned. Indeed, Emirate National Oil Company (ENOC), the VF Tanker-20 arrived fi rst in Baku decided to deliver crude oil cargo to Port, Azerbaijan, and queued on roads Iran independently, via its trading sister from July 25 to August 1. However, the company “ENOC Singapore”. vessel was rejected for discharge due To date, Dragon Oil sold all its crude to undocumented (possibly smuggled) oil export volumes on tenders on an cargo aboard the ship being found. FOB Aladja- Turkmenistan basis. Due Thereafter, ENOC redirected the tanker to the sanctions against Iran, from 2011, to the Iranian port of Neka, where it export volumes were transported was possible to discharge cargo without towards Europe solely through the ter- actual presentation of documents for ritories of Azerbaijan (either via pipe- goods. line Baku-Tbilisi-Ceyhan or via railways Now, market participants are waiting Baku-Batumi) and Russia (via pipeline for further developments of the situa- Makhachkala-Novorossiysk). tion, as well as answers to their ques- The decision of Dragon Oil and ENOC tions: was this oil shipment a random to resume oil supplies to Iran caused cargo discharged in Neka because of surprise among market participants. document issues, or is it the start of a Despite the fact that some of the sanc- planned program for the supply of Turk- tions against Iran were lifted in 2016 men crude oil to Iran? after the “Iranian Nuclear Deal” in Several signs speak in favor of the November 2015, many restrictions remain second scenario: ENOC is currently in place. Most of the companies prefer very active on the freight market and to wait for detailed recommendations several ships belonging to the Russian from the Offi ce of Foreign Assets Con- shipping company "VF Tanker" have trol of the US Treasury (OFAC) before been redirected to the Caspian Sea starting any business related to Iran. towards the port of Aladja. GEORGIA TODAY 8 POLITICS AUGUST 8 - 10, 2017 Popular Oligarchy: Why the Public Still Supports Georgian Dream

most popular force in the country and, according BY BIDZINA LEBANIDZE, SENIOR ANALYST, to the last public surveys commissioned by the GEORGIAN INSTITUTE OF POLITICS National Democratic Institute (NDI), its candidate looks poised to become the mayor of Tbilisi fol- lowing elections scheduled for later this year. ecent public surveys have confi rmed In light of the above, I propose six reasons why, a paradoxical trend in Georgian polit- despite many setbacks, the Georgian public still ical life: despite pressing problems, prefers GD to the opposition and is ready to tol- political blunders, and a troubling erate its continued stay in power. socio-economic situation, the ruling GD managed to correct the neoliberal economic RGeorgian Dream (GD) party remains the most policies of its predecessor and establish a more- popular political force in Georgia. It has been or-less functional social safety net. It is true that almost fi ve years now since GD fi rst came to power, the extensive social programs come at a high price: and its list of achievements remains quite short. they put immense pressure on the country’s macro- Economic growth has slowed and Russia contin- economic stability and could undermine Georgia’s ues to demarcate what it considers the independ- long-run economic prospects. For most voters, ent territories of South Ossetia and Abkhazia. however, the long-term economic implications of Georgia has not made any major breakthroughs imprudent social reforms are less important than in terms of democratic and political reform, either. the short-term benefi ts from the universal health- Instead, controversial constitutional amendments care system and other social programs. Moreover, are poised to further erode checks and balances. the safety net adds to the feeling of social inclu- Georgia’s democratic score has not advanced sig- sion in Georgia’s socio- economic life, something nifi cantly in major democratic rankings. that was missing during the rule of the United Under such circumstances, the logic of power National Movement (UNM) with its emphasis on politics in a democratic environment would pre- neoliberal market-economy reforms. GD’s socially- dict a decline in the ruling party’s popularity in oriented policies may be undermining the coun- favor of the opposition. However, GD remains the try’s economic prospects in the long-term, but

they certainly contribute to a positive image of tion, including ratifi cation of the Association Agree- the government in the immediate term. ment and achievement of the visa-free regime. GD has proven itself to be a pragmatic political However, GD has failed to stop Russia’s “borderi- player. The party did not embark on reforms that zation” policy and there have been no breakthroughs could put it at odds with the veto players within in resolution of the territorial confl icts. Georgian society. Rather, GD and its patron Bidzina The internal weakness of the opposition is per- Ivanishvili decided to coopt certain infl uential haps the most important reason for GD’s contin- social groups such as the Soviet-era Georgian ued popularity. The splitting of UNM into two intelligentsia, people that Mikhail Saakashvili separate parties did not aid pluralism in Georgia’s considered to be “fl ushed down” into oblivion. party system. The splinter group—the Movement The aversion to painful reform is not necessarily for Liberty-European Georgia— seems to be suc- good news for the country, but it cultivates GD’s cessfully replicating the path of the Republican image as a status-quo political force that doesn’t Party of Georgia, marginalizing itself and becom- threaten the vested interests of infl uential groups ing politically insignifi cant. The remnants of UNM, by implementing painful reforms or withdrawing on the other hand, suffer from brain drain and the their benefi ts. long political shadow cast by Saakashvili. The GD appears less threatening to citizens than did other liberal opposition parties are in even worse its predecessor, UNM. The political system built condition. Each lack political stability, a clear by Bidzina Ivanishvili rests on weakened state vision and, most importantly, public appeal. To institutions (exception State Security Service) be sure, the majority of these parties are led by and various informal cooptation mechanisms. young, liberal, and pro-Western politicians. Unfor- Unlike the rule of Mikhail Saakashvili, the GD tunately, however, none have the political charisma government rarely uses coercion to repress polit- and fi nancial resources to win the hearts and votes ical opposition or public discontent. A combina- of Georgians. As ironic as it may sound, it seems tion of perceived weakness and the absence of that Saakashvili was Georgia’s only liberal pro- coercive mechanisms have made GD appear less Western leader capable of performing a nearly- threatening and thus more acceptable to the major- impossible balancing act of promoting liberal ity of the population. ideas and staying popular with the population for There has been no major backsliding of the key a sustained period of time. reforms GD inherited from its predecessor. Petty In conclusion, it is a personal achievement of corruption has not returned to Georgia. Neither multibillionaire Bidzina Ivanishvili that GD remains have old Soviet-era institutions such as “thieves fi rmly in power after fi ve years of rule. Ivanishvili in law.” Georgia’s impartial institutions proved built a political system which does not rely on themselves robust enough to survive when UNM’s coercion but rather cooptation through material tight control over the state apparatus was removed. and political incentives. Therefore, the state That fact has been acknowledged by the public. appears less threatening and does not challenge For instance, the Transparency International’s the vested interests of infl uential veto actors. Corruption Perception Index has improved since Ivanishvili has succeeded through the use of a the change of power in 2012. Hence, although GD pragmatic and Machiavellian policy mix to estab- lacks the drive for reform which characterized lish a system of oligarchic governance that remains UNM, it has successfully escaped a reputation as fairly popular. a retrograde or reform-resistant political force. GD is not considered a spoiler of the successful state-building reforms implemented under Mikhail Saakashvili. GD has successfully withstood accusations by the opposition of being a pro-Russian political force. GD did abandon the confrontational manner The Georgian Institute of Politics was founded in 2011 of interaction with Russia, and trade relations to strengthen institutions and promote good governance between the two countries have signifi cantly and development through policy research and advo- improved since it assumed power. However, GD cacy in Georgia. It publishes its blog with Georgia has not abandoned Georgia’s pro-Western foreign Today twice per month. Check out our website in Eng- policy course. In fact, it has accomplished impor- lish and Georgian at gip.ge for more blogs, data, and tant milestones on the path of European integra- analyses. GEORGIA TODAY AUGUST 8 - 10, 2017 POLITICS 9 Putin Nemesis Mikheil Saakashvili Is Now a Man Without a Country

Source: Financial Times oligarchs leading up to the 2019 Ukrainian presi- ism—unless of course they are Azeri dissidents. dential elections. This modern multicultural Georgia is Mikheil A big question now is how much did the Rus- Saakashvili’s legacy. sians know and when? Yet Vladmir Putin is only Saakashvili’s second The Kremlin did not appear to want to kill him, greatest enemy; the fi rst is himself. Putin realized much less hang him literally by the balls. The Rus- this in 2008 when, after relentless military prov- sian strategy for him has been to destroy the for- ocations, Saakashvili took the bait and gave Putin mer Georgian president’s legacy, his credibility, grounds to invade the country and nearly take the and fi nally his dignity. So far, with help from him, capital. This was the low point in Saakashvili’s it’s working. career, until now. Stateless Misha has few friends left at home after THE EXILE FACTOR his Georgian political party, UNM, split in Janu- Statelessness is exile of the truest kind. And Mikheil ary. Many of UNM’s most infl uential members Saakashvili deserves a fair trial, but he will not fi nd got fed up with him, broke away and formed a that in Georgia. The recent case of the Azeri dissi- new party. dent and journalist Afghan Mukhtarli shows clearly The lights of Batumi glow ever brighter, and Tbi- the disrespect for legal procedures and human rights. lisi’s TV Broadcasting Tower, once a symbol of Mukhtarli was abducted near his home in Tbilisi in Soviet media domination and oppression still fl ick- broad daylight on May 29. He turned up in custody ers luminously. Georgians remain in a mostly free in Baku, Azerbaijan the next day. and reformed country, which a fl awed man often If the Trump administration extradites Saakash- brutally modernized, as it were, in a single gulp. vili back to Tbilisi, Russian authorities would go Perhaps the greatest irony is that it was here in to great lengths to get their hands on him. Such a Batumi that in 2012 Donald Trump, the faux inves- move would send the wrong message to every dic- tor lending his name to a project, and Mikheil tator and thug within a thousand miles: if it can Saakashvili shook hands after cutting a $250 mil- happen to Saakashvili, it can happen to anybody. lion deal to add a Trump Tower to the brilliant As I type, I’m looking out at the Batumi skyline, lights of the skyline. and reminded of the part of Saakashvili that was The deal would no doubt have made a lot of dent Mike Pence has just been in Tbilisi. a great man. This place was once a corrupt fi ef- people wealthy, but Trump pulled out for good OP-ED BY WILL CATHCART According to our sources, over the course of the dom ruled by gangsters and polluted by a Soviet just before his inauguration. last week or so, the Georgians have been petition- oil refi nery. People did not go outside at night, For Misha in the day the biggest payoff was the ing Pence to help them bring Saakashvili back unless they were part of its ruler Aslan Abashidze’s photo, the money shot, if you will, of him and the ourteen years ago, a group of protesters here to be prosecuted. clan, who waved Ak-47s and raced Ferraris on the Donald shaking hands with Batumi at their back. burst through the doors of the Georgian In 2015, burned out in Georgia, Saakashvili gave boulevards of what is now a bustling seaside resort. Saakashvili put the photo everywhere. A massive Parliament while Georgian President up his citizenship there and took Ukrainian citi- Today Batumi, a “jewel” of the Black Sea coast, billboard bearing the image of Trump and Misha’s Eduard Shevardnadze was giving a zenship the day before President is a symbol of many things for its many neighbors. handshake was the fi rst thing you saw upon exit- speech. Shevardnadze was a legendary appointed him governor of the strategically crucial In midsummer, Batumi and Tbilisi, Georgia’s ing the airport, the exact place where Saakashvili FSoviet foreign minister, but under his tenure Geor- and notoriously rotten port city of . The capital, are full of Persian, Arabic, Turkish and, will be arrested if he is sent home. gia had become a failing state rife with corruption. ever-quixotic Saakashvili, the great reformer-to-be, yes, Russian tourists seeking refuge in a place The protesters carried no weapons. Instead they fi rst turned against Ukraine’s oligarchs, then against where they can live freely, voice their ideas, and First published on thedailybeast.com, reprinted here held out roses as a sign theirs was a peaceful Poroshenko himself. Perhaps Saakashvili decided pursue happiness without fear of authoritarian- with permission of the author. revolution. They were led by a charismatic young that this time he wasn’t going to comprise. What- idealist and reformer named Mikheil Saakashvili. ever the case, Saakashvili failed and went into As Shevardnadze’s guards escorted him out the opposition. Odessa remains as corrupt as ever. back, Saakashvili ascended the podium and, in After Poroshenko’s fi rst offi cial visit to Georgia what later came to seem an omen, downed the last month, on July 17, he stripped Saakashvili of former leader’s glass of tea in a single gulp. his - last remaining citizenship. Saakashvili was Saakashvili was elected president shortly after in the United States at the time. and began to reform and modernize Georgia at what to many was an unsettling pace. His reforms, WHY THE US? though based on free market ideas, supposedly à Last Monday, as Pence’s team arrived in Tbilisi, la Ronald Reagan, often seemed more like Mach- Georgia's minister of justice, Tea Tsulukiani, went iavellian machinations. on Georgia's largest television network to reiterate Still, Saakashvili became a darling of the West. publicly Georgia’s demand for Saakashvili's extra- For a decade “Misha” Saakashvili was promoted dition from Ukraine to Georgia, even though he’s at home and abroad as a paradigm for the kind of in the States. democracy that America was attempting to export In fact, it appears Poroshenko doesn’t want to the nations of the former . Saakashvili back in Ukraine at all, whether to But after almost a decade, and a disastrous war prosecute or extradite him, and the timing of the with Russia, it’s fair to say the bloom was off the announcement invalidating his passport was cal- Rose Revolution, and in late 2012 Saakashvili lost culated carefully. According to the Kyiv Post, “On power to a Georgian billionaire named Bidzina July 24, Poroshenko reshuffl ed the Commission Ivanishvili. on Citizenship in what critics saw as preparation Today, Saakashvili is hated by the current Geor- for the suspension of Saakashvili’s citizenship.” gian government almost as much as he is hated by Two days later Saakashvili was stripped of his Russia’s president, Vladimir Putin, who told French citizenship. President Nicolas Sarkozy during the 2008 fi ght- Had Poroshenko acted earlier, the politically ing, “I am going to hang Saakashvili by the balls.” savvy Saakashvili might have made a drama out Legend brings us various versions of Saakash- of his “escape” from Ukraine, arriving in D.C. and vili’s response on hearing of that remark. One is appearing on cable news as a kind of hero exiled that the impetuous Misha retorted with the school- by a corrupt regime. With Saakashvili already in yard taunt that at least he had balls. Another claims the U.S., Misha had less opportunity for Rose- the Georgia president said Putin would need a Revolution-style grandstanding: no fl owers, no very long rope. In still another version he sup- planes to exit, no reporters to greet him. He just posedly (and improbably) used a favorite pun he woke up in the U.S. to some bad news. often repeated in private. Putin he said, was Lil- “America is not Georgia or Ukraine, and Misha liputin, alluding to the buff Russian’s diminutive cannot just be bundled into a plane on a presi- stature. (Saakashvili is about 6’4”; Putin not quite dential whim,” says veteran analyst William Dun- 5’7”.) bar. But like so many exaggerated historical legends, But that may be a false sense of security. Two it seems that Saakashvili’s response was pretty high-ranking members of the United States Armed simple: nervous laughter. And with reason. Putin Forces, who requested to remain anonymous, told made that threat while his troops waited 25 miles media outlet The Daily Beast that over two weeks from the Georgian capital. ago, Georgian offi cials began lobbying Mike Pence to extradite Mikheil Saakashvili. UNDOCUMENTED ALIEN What the defense offi cials found most unusual I spent nearly two years working for Misha Saakash- was that the Georgians approached the US vice vili and saw the visionary best and venal worst of president about the extradition of Saakashvili back the man. If hypocrisy is the cardinal sin of politics, to Georgia two days before his Ukrainian citizen- he surely must be damned. He allowed too many ship was revoked on July 24. This is the same day around him to enrich themselves. He abused his that Poroshenko reshuffl ed his Commission on own power. He is now a wanted man in his native Citizenship to expedite Saakashvili’s extradition country. while Saakashvili was in the U.S. Today this fi gure, who once seemed to me larger As an opposition fi gure in Ukraine, Saakashvili than life, is stateless and adrift in Donald Trump’s was a thorn in Poroshenko’s side. He was calling Washington D.C., and as it happens, Vice Presi- more and more attention to the country’s corrupt GEORGIA TODAY 10 POLITICS AUGUST 8 - 10, 2017 Explaining Stalin’s Popularity Through Putin

Source: The Lady Travels to preserve the memory of Stalin's victims. OP-ED BY EMIL AVDALIANI Indeed, the attitudes of Russian state institutions are changing and a good example of this would be the silence from the government on July 30 – the oving one’s own history brings a remark- 80th anniversary of the launch of purges known as able feeling. Victorious battles, military the Great Terror. The Russian government in fact campaigns and progress in the scientifi c staged some celebrations, but only for the annual realm are most quoted. However, there holiday. No offi cial commemorations are political fi gures or events which were made to mark Soviet government secret police causeL an ambivalent reaction. In Georgia, many head Nikolai Yezhov’s Order No. 00447, which ini- remember the 17th century politician-general Giorgi tiated the terror. Saakadze in the same way France remembers Napo- This silence is very symptomatic of Russian soci- leon. For Georgia’s northern neighbor, Russia, such ety's ambivalent understanding/perception of Sta- a fi gure is communist leader Joseph Stalin. What lin’s rule and particularly of the Great Terror. As a differentiates the Russian case from almost all oth- refl ection, a recent opinion poll by the All-Russia ers is that in Russia the popularity of Stalin very Center for the Study of Public Opinion (VTsIOM) much depends on the overall political climate inside showed that a staggering 43 percent of Russians the country and the agenda of Russian politicians. think that Stalin’s repressive measures were neces- The current attitudes towards Stalin highlight those sary “to maintain order in the country”. deep problems Russia is experiencing today: pres- sure from the West, economic troubles, Putin’s PUTIN’S PREPARATIONS long rule, and the need for internal consolidation. Putin is experiencing a pretty tough period in his All these processes are of great importance as they career. Foreign resistance to his foreign policy has directly infl uence Russia’s foreign policy towards worked successfully thus far, seeing Russia more its neighbors. or less isolated. Internally, there are some serious Surprisingly, the Russian government is still unsure issues regarding Putin’s rule and it is getting more how to approach the Stalin epoch. It was under and more diffi cult for the Russians to understand him that the Soviet Union won World War II, but why his presidency should go on so long. Next year, it was also during his rule that millions died or Putin’s rule will become the longest (17 years) since were displaced. Russian school books at times pro- Stalin’s. There is already an entire generation of vide a less than full picture of Stalin’s rule and the young Russians which have seen only Putin as their wording is changed almost annually to adjust to country’s leader. And this is very problematic for the existing political atmosphere. the Russian government as there is an ever-higher Recently, Stalin’s popularity has grown signifi - proportion of opposition-minded people in Rus- cantly, with survey results showing it at a 16-year sian society: for example, it was the younger gen- high. For instance, according to the Levada Center eration which was most active in the country-wide pollster from February this year, almost 46 percent protests earlier this year. of respondents viewed the Soviet leader positively, Although Putin is likely to run for presidency in while only 21 percent hated or feared him. 22 per- next year’s elections, he has yet to fi nd a platform cent described themselves as merely “indifferent”. on which to run. And this platform is not economic 32 percent of Russian respondents said they looked or social as in European countries, but psycho- upon Stalin “with respect” while 10 percent said logical. He could explain his participation by the that they had “sympathetic views” and 4 percent need to oppose a unifi ed Western front in Russia, looked upon the leader with “admiration”. but many Russians think that the warming to west- In April, according to the same Levada Center ern ideas is due to Putin’s unsuccessful foreign pollster, Stalin was named by Russians as the world's policy anyway. Other platforms such as a struggle most outstanding public fi gure. Approximately against terrorism and separatism would not work 1,600 Russians were asked to name ten of the world's this time as they did before. greatest personalities and Stalin came fi rst, gaining And hence the growth of Stalin’s cult. Stalin ruled 38%. He was followed by the Russian poet Alexan- longer than Putin has and state centralization der Pushkin and President Vladimir Putin (both reached its highest point under him. Putin simply up 34%). does not want to criticize Stalin’s rule as it will be Stalin’s popularity is now reaching the top echelon more diffi cult for him to explain his plans to stay of the Russian government. In a June interview, Putin in power for yet another six years. Thus, in Russia, criticized the “excessive demonization of Stalin” as even Stalin’s memory is at the mercy of wider a reaction to the fact that many Russians have tried political agendas. GEORGIA TODAY AUGUST 8 - 10, 2017 POLITICS 11 Mark Mullen on the Future of Misha INTERVIEW BY VAZHA TAVBERIDZE DO YOU THINK HE’LL EVER COME BACK TO GEORGIA AND, IF HE DOES, IN WHAT CAPACITY – AS A CONVICT ikheil Saakashvili’s OR AS A POLITICAL FORCE? future is still unclear A lot of that depends on Georgian – for all his pledges that Dream (GD). The reality of it is that he will return to Ukraine GD’s leadership hates Saakashvili and and fi ght for his citizen- will convict him in any way they can. Mship, that it’s not over and the show has On the other hand, Saakashvili has just begun, or whether he’ll just stick committed crimes that he could be with that rather reassuring one-year imprisoned for. I don’t think he’d come working US visa, the divisive ex-President back to Georgia to go to jail. If the GD of Georgia’s prospects are very much up government allows Georgia to remain in the air. After news broke of his being as democratic as it is right now, if they denied Ukrainian citizenship, those allow themselves to be elected out of prospects rapidly became one of the top offi ce at some point in the future, then subjects to ponder for Post-Soviet space things could happen. Frankly, it’s experts everywhere. Mark Mullen, long- unlikely that Saakashvili will have any time observer of Georgia and a man once political future [here]. If GD becomes considered “Misha’s Dzmakaci,” perhaps unpopular at some point in the future, knows more than most. GEORGIA in 5 or 10 years, it is theoretically pos- TODAY and Panorama TV Show caught sible that people might think that up with the former Transparency Inter- Saakashvili is the only one that could national guru to ask him what he thought take their power. But I’d be very sur- of Saakashvili’s future prospects and prised if that happens at all. Saakashvili political career. Not much, it turned out. is not a patient guy. I don’t think that he’s really thinking about that time HOW WOULD YOU, frame. If he were, he’d be behaving in AS HIS FRIEND, ASSESS a very different way right now. SAAKASHVILI’S POLITICAL CAREER POST-GEORGIA? SO, IS IT GAME OVER When it comes to Saakashvili, I think his FOR SAAKASHVILI’S most important legacy was not political. POLITICAL CAREER? It was putting together the group that got Saakashvili has never really reckoned rid of petty corruption in Georgia. But as with the truth of what happened to his years passed, he increasingly refused to presidency in Georgia. He’s never apol- listen to people who had opposing ideas. ogized and he’s never really recognized He isolated himself, so losing the elec- the many bad things that happened while tions in 2012. From 2013, his role in Geor- he was in power. Until he does, I doubt gian politics wasn’t a positive one and I efforts were sabotaged. At the same time, HIS COUNTRY TO GRANT HIM The question at this point is what his that people in Georgia or abroad are very don’t think he has much of a role in Geor- he was personally aggressive to every- CITIZENSHIP OR SHELTER THERE relevance in European politics is. The interested in what he has to say. Some gia personally anymore. The main thing body that he needed to work with. And That might very well happen. Lithuania Ukrainian government doesn’t want him, of his commentary about Ukraine is he’s done [recently] is to prevent the keep in mind it’s not his homeland. Even- is the kind of place that would be OK the Georgian government doesn’t want interesting but he was totally ineffective UNM from being as infl uential as they tually, they got tired of him. Poroshenko about giving him a base of operations in him. The question is, who is he talking there and I don’t think people believe could have been as an opposition party. said he would not extradite him because Europe. Certainly, there are many in to? He’s not much of an analyst: he’s a him regarding Georgia. A politician needs He and the people in the country had he would immediately be thrown in jail Europe who respect him and care about person who acts. But the places where to have an arena and Saakashvili just very different ideas about how it should and I don’t think Saakashvili would get him and would like him to see him there. he can make a difference don’t want him. doesn’t have one. be run. He tends to be aggressive, whereas a fair trial in Georgia. But they did make most of the leadership of the UNM in him stateless, so now he’s in a sort of Georgia is a little bit more conciliatory. limbo, in exile in the US. So, his involvement from outside has been generally of the negative kind for the WHAT DO YOU THINK THE Georgian opposition. WEST WILL DO? WILL THEY SHELTER SAAKASHVILI? WILL A MAN ONCE PROCLAIMED THERE BE REPERCUSSIONS A HERO AND HARBINGER FOR UKRAINE? OF DEMOCRACY NOW I doubt there’ll be repercussions for FINDS HIMSELF WITHOUT Ukraine. I think that at this point the CITIZENSHIP. HOW? West understands Saakashvili quite well; Truth be told, I never heard anybody his strengths and weaknesses. What hap- saying that Saakashvili was the harbinger pens to Saakashvili next is a complicated of democracy. Democracy was not his question. My guess is that the US will greatest strength. What he did was get allow him to stay there. I don’t know rid of corruption and then he tried to whether he’ll be offered citizenship any- take that message to another country. where else. I don’t think he’ll be given Ukraine and Georgia are very close American citizenship. He might claim countries, having a long history of mutual asylum, though… respect and cooperation. But it’s a dif- ferent country and the reality of it is that HE SAID HE WON’T SEEK the Ukraine leadership was not ready ASYLUM AND HE’LL FIGHT for his aggressive style of operation. TO RETURN TO UKRAINE. A Although he had some very good ideas LITHUANIAN MEP EXPRESSED in Odessa, most of his anti-corruption READINESS ON BEHALF OF

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