Azerbaijan Requests $2 Billion in Agricultural Aid From
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facebook.com/ georgiatoday Issue no: 874/42 • AUG. 30 - SEPT. 1,, 2016 • PUBLISHED TWICE WEEKLY PRICE: GEL 2.50 In this week’s issue... Georgia, Belarus Strengthen Bilateral Relations PAGE 2 Armenia, Iran Working Towards Creating Free Economic Zone PAGE 3 Electricity Market Watch GALT & TAGGART PAGE 5 FOCUS Dechert OnPoint: ON HARVEST SUBSIDIES Amendments to the Law on Minister of Agriculture, Otar Danelia, Public Registry promises a trouble-free harvest for viticulturists and winemakers PAGE 4 Azerbaijan Requests $2 billion in PAGE 8 Constitutional Court Chair Agricultural Aid from WTO Calls on Governmental BY NICHOLAS WALLER Offi cials Not to Interfere in Judicial Activities he Azeri government has requested USD 2 bil- POLITICS PAGE 10 lion in aid from the World Trade Organization to support its troubled agricultural sector, Deputy Foreign Minister Mahmud Mammad- Georgian Chess guliyev announced at the weekend. T"We have asked the WTO for USD 1 billion in direct aid Player Wins to support the agricultural industry and another USD 1 bil- lion to organize an agricultural recovery project in the occu- European Youth pied territories (Nagorno-Karabakh) of Azerbaijan once they’ve been liberated." Mammadguliyev said in an interview Championship with Russia’s state-run news agency RIA Novosti. Continued on page 2 CULTURE PAGE 11 Prepared for Georgia Today Business by Markets Asof26ͲAugͲ2016 STOCKS Price w/w m/m BONDS Price w/w m/m BankofGeorgia(BGEOLN) GBP28.57 +6,3% +5,9% GEOROG04/21 105.25(YTM5.46%) Ͳ +1,0% GHG(GHGLN) GBP2.55 Ͳ15,0% Ͳ18,4% GEORG04/21 112.02(YTM4.00%) +0,1% +0,6% TBCBank(TBCBLI) US$12.00 Ͳ1,6% Ͳ9,1% GRAIL07/22 112.06(YTM5.33%) +0,2% +0,6% BGEOLN07/23 102.75(YTM5.52%) +0,4% +2,2% COMMODITIES Price w/w m/m CrudeOil,Brent(US$/bbl) 49,92 Ͳ1,9% +11,3% CURRENCIES Price w/w m/m GoldSpot(US$/OZ) 1321,18 Ͳ1,5% +0,1% GEL/USD 2,2857 +0,7% Ͳ2,5% GEL/EUR 2,5602 Ͳ0,4% Ͳ0,5% INDICES Price w/w m/m GEL/GBP 2,9990 +1,1% Ͳ2,6% FTSE100 6838,05 Ͳ0,3% +1,7% GEL/CHF 2,3364 Ͳ0,9% Ͳ1,2% FTSE250 17930,79 +0,3% +5,0% GEL/RUB 0,0353 Ͳ0,6% Ͳ0,6% DAX 10587,77 +0,4% +3,3% GEL/TRY 0,7741 Ͳ0,1% +0,5% DOWJONES 18395,40 Ͳ0,8% Ͳ0,4% GEL/AZN 1,3517 Ͳ2,7% Ͳ8,5% NASDAQ 5218,92 Ͳ0,4% +2,1% GEL/AMD 0,0048 Ͳ Ͳ2,0% MSCIEMEE 129,00 +0,1% +3,8% GEL/UAH 0,0897 Ͳ0,2% Ͳ5,2% MSCIEM 901,39 Ͳ1,0% +3,5% EUR/USD 0,8931 +1,1% Ͳ1,9% SP500 2169,04 Ͳ0,7% Ͳ0,0% GBP/USD 0,7612 Ͳ0,5% Ͳ0,1% MICEX 1993,35 +1,7% +2,8% CHF/USD 0,9782 +1,8% Ͳ1,4% MSCIFM 2579,18 Ͳ0,7% +0,9% RUB/USD 64,5882 +1,1% Ͳ2,0% GTIndex(GEL) 797,63 Ͳ Ͳ5,3% TRY/USD 2,9535 +0,8% Ͳ3,0% GTIndex(USD) 689,24 +0,3% Ͳ2,8% AZN/USD 1,6725 Ͳ0,6% +4,9% GEORGIA TODAY 2 BUSINESS AUGUST 30 - SEPTEMBER 1, 2016 Azerbaijan Georgia, Belarus Strengthen Requests $2 billion in Bilateral Relations Agricultural Aid from BY THEA MORRISON WTO he Republic of Belarus Continued from page 1 opened its fi rst Embassy in Georgia on Thursday The WTO has yet to respond to Azer- and appointed Mikhail baijan’s request and Azeri offi cials have Miatlikov as the first not indicated whether they expect to Tambassador of Belarus to Georgia. receive an answer. The ambassador presented copies of Azerbaijan has already received EUR his credentials to Georgia’s Foreign 7.2 million in direct aid from the Euro- Minister, Mikheil Janelidze. pean Union to help develop and overhaul The Minister congratulated Miatlikov the agricultural industry in the country’s on his appointment and wished him suc- villages. cess in his work. Janelidze expressed his Baku plans to improve sanitation and satisfaction at the decision of Belarus to upgrade the quality of agricultural prod- open an embassy in Georgia, reiterating ucts coming from its regions. the hope that Mikhail Miatlikov will Azerbaijan’s total 2016 budget for agri- spare no effort to further intensify rela- culture and regional development tions between the two countries. amounts to USD 15.5 million. Special attention was paid to the The aid request comes amidst mount- upcoming session of the Intergovern- ing speculation that the national currency mental Commission on Economic Coop- – the Manat – is at risk of being depreci- eration to be held in early September, ated after major shortages of foreign as well as to the organization of a national currency in the country have led to the exhibition of Belarus in Tbilisi. development of a black market. The offi cials exchanged their views Monetary instability has plagued Azer- on mutual cooperation within interna- baijan since early 2015 when declining tional organizations. They also spoke oil revenues and a sharp decline in remit- about the ongoing processes in Georgia, tances from Russia forced the country’s the situation in the occupied territories, central bank to cut the Manat’s exchange and various issues of regional impor- rate against the US dollar. tance. The Manat has since suffered from a Moreover, Georgia and Belarus plan and held a meeting with the Prime Min- Gomelauri and Vakulchik signed a close cooperation between the parties rapid depreciation and drained the coun- to deepen cooperation in the area of ister of Georgia, Giorgi Kvirikashvili, Cooperation Agreement between the in an effort to combat terrorism, cor- try’s once vast foreign currency reserves. security. The Chair of the State Security and the Georgian Head of the State State Security Service of Georgia and ruption and other international as well Since the start of the year, the Manat’s Committee of the Republic of Belarus, Security Service, Vakhtang Gomelauri, the State Security Committee of Bela- as transnational organized crimes com- depreciation has caused a total capital Valery Vakulchik, also came to Tbilisi on August 25. rus. The agreement aims at developing mitted against state security. loss of USD 670 million. GEORGIA TODAY AUGUST 30 - SEPTEMBER 1, 2016 BUSINESS 3 Startup Georgia Announces High-Tech Enterprise Winners Armenia, Iran Working Towards he state-funded Startup netic radiation, robotics, and telecom- Georgia project on Friday munications. announced the winners of "This program, part of the government's Creating Free Economic Zone its high technology busi- four-point reform plan, is the most impor- ness competition. tant as it encourages entrepreneurial TExperts from the US’ Silicon Valley spirit and enables our youth to launch joined in January 2015. tures with EEU member states and start chose 20 winners from the 150 applica- their own businesses and change the BY NICHOLAS WALLER The goods produced in the two coun- exporting goods to the common market. tions. Each successful applicant will mindset of a whole generation. It is not tries will also those enjoy preferential Iran has in recent months moved receive 100,000 GEL (about USD 43,767) possible to foster an innovative idea or trade regimes Armenia has established quickly to capitalize on its re-established from the Georgian Government to imple- start a business only through the bank- he Armenian and Iranian with the EU, United States, Canada, access to international markets after ment their innovative ideas. ing sector. Startup Georgia gives people governments are currently Switzerland, and Japan, RFE/RL being placed under strict economic “Your victory makes all of Georgia a new option," Kvirikashvili said, addinf in the process of creating reported. sanction for more than a decade. proud as our country relies on you,” that the government will fully support a free economic zone in Armenian Prime Minister Hovik Abra- International businessmen from the Prime Minister Giorgi Kvirikashvili told Georgian entrepreneurs as they develop Armenia’s southern Meghri hamyan announced plans for the zone West and the EEU have fl ocked to Iran fi nalists. various technologies in the coming years. Tregion, Yerevan’s Minister of Economy on August 22, adding that production since Tehran agreed to a deal on its The USD 5 million (11 million GEL) Startup Georgia is a part of the State’s Artsvik Minasyan said on August 25. and the export of goods would be car- nuclear development program. state project funds innovative and high- Partnership Fund. It is implemented with According to Minasyan, the proposed ried out from the zone. Foreign businesses operating in the tech start-ups in a variety of fi elds includ- the support of the Ministry of Economy zone will stimulate relations between Tehran is particularly interested in region consider Iran to be a potential ing aerospace production, biotech and Sustainable Development of Georgia Iran and the Russian-led Eurasian Eco- developing closer ties with Armenia as investment cash cow due to its vast research, bioinformatics, computer engi- and Georgia’s Innovation and Technol- nomic Union (EEU), which Armenia it will allow Iran to establish joint ven- economic potential. neering, IT, nuclear physics, electromag- ogy Agency. GEORGIA TODAY 4 BUSINESS AUGUST 30 - SEPTEMBER 1, 2016 Government Subsidizes Vintage 2016 Harvest BY THEA MORRISON Vintage 2016 started Over 1.3 in Dedoplistskaro, Kakheti. Source: ithin the framework Wines of Georgia thousand tons of of the Vintage 2015 program, the govern- grapes have been ment decided to issue 0.45 GEL per kilo- picked and Wgram for Rkatsiteli grapes, 0.20 GEL per kilo for Saperavi and 0.45 GEL for one delivered since kilo of Kakhetian Green as subsidies.