Azerbaijan Requests $2 Billion in Agricultural Aid From

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 billion 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 ambassadorT 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. region,T 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. The highest price is on Mujuretuli/Alek- sandrouli grapes with wine factories the opening of the having to pay 2 GEL per kilo within the state subsidies program. 2016 harvest on The statement was made by Georgia’s Minister of Agriculture Otar Danelia at Wednesday the opening of the Vintage 2016 harvest coordination in Telavi, Kakheti Region. directly to the viticulturists, not to win- The event was also attended by Deputy emakers, just as they were last year. Minister of Agriculture, Levan Davitash- After delivering the grapes to the factories, the village farmers will receive their money within 15 working days by presenting their ID cards. The Head of the National Wine Agency said the coordination of Vintage 2016 will be situated in Telavi, Hotel 'Alazani Valley,' and its staff will work 24/24 to The government is ensure active communication between state departments, industrialists and in total readiness vili, Head of the National Wine Agency, According to the Minister, around 100 tinue for those wine and alcoholic bev- viticulturists. Giorgi Samanishvili, and representatives factories will receive grapes from village erage companies which promote a pro- Vintage 2016 started in Dedoplistskaro, to conduct an of local government and wine producing farmers and each farmer’s harvest will duction increase. The maximum amount Kakheti region, on Wednesday. So far, companies. be purchased. of agro-credit is 10 million GEL and the 1.3 thousand tons of grapes have been organized and Danelia spoke about the importance “The government is in total readiness maximum period of loan is 15 months. picked and delivered to two factories of the subsidies from the State, adding to conduct an organized and trouble-free The coordination of Vintage 2016 is located in the region. trouble free the decision was made considering the harvest,” Danelia said. led by the Head of National Wine Agency, This year, Kakheti region is expected interest of viticulturists as well as the Moreover, the Minister stated that the Giorgi Samanishvili, who said at the to have 200 thousand tons in grape har- harvest interests of winemakers. preferential agro-credit project will con- opening that subsidies will be given vest. GEORGIA TODAY AUGUST 30 - SEPTEMBER 1, 2016 BUSINESS 5

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

The Ministry of Energy has just released key to securing the integration of wind FOR GEORGIA TODAY BY Georgia’s Energy Strategy for 2016-2025. and solar into the grid. The importance TAMARA KURDADZE Both the ministry and the regulator of strategic HPPs, such as Nenskra, (GNERC) were actively involved in the Khudoni, and Namakhvani, for the two-year process of developing the upgrade of system capacity is high- ector research is one of the strategy document, with NGOs and lighted. The natural gas reservoir near key directions of Galt & Tag- industry experts contributing in the Tbilisi is an integral part of the strategy, gart Research. We currently document review process. Liberaliza- as it will strengthen Georgia’s energy provide coverage of Energy, tion of energy markets, move to day- security by creating a buffer in case of Healthcare, Tourism, Agricul- ahead trading, approximation to EU’s natural gas shortage. The reservoir is ture,S Wine, and Real Estate sectors in Third Energy Package, and moderniza- to be built by GOGC, while interested Georgia. As part of our energy sector tion and development of transmission investors can obtain minority stakes. coverage, we produce a monthly Elec- and distribution infrastructure are some Lastly, strengthening international rela- tricity Market Watch, adapted here for of the key themes. The strategy stresses tions is highlighted as an important step Georgia Today’s readers. Previous the importance of expanding installed on Georgia’s path to becoming a regional reports on the sector can be found on capacity in order to reduce the coun- electricity transit and renewable energy Galt & Taggart’s website - gtresearch. try’s dependence on imported energy trade hub. ge. resources. Aside from hydro resources, the potential of alternative energy source AGREEMENT WITH THE MINISTRY OF ENERGY development, such as wind, solar, bio- ENERGY COMMUNITY TO BE RELEASES GEORGIA’S ENERGY mass and geothermal is also discussed. RATIFIED IN EARLY 2017 STRATEGY 2016-2025 Notably, upgrading system capacity is Continued on page 7 GEORGIA TODAY 6 BUSINESS AUGUST 30 - SEPTEMBER 1, 2016 Ukraine Hopes to Establish International Transport Corridor

ernment and business entities that are interested BY DIMITRI DOLABERIDZE in the implementation of transit in the region. "We can work out a mutual single tariff policy and consolidated solutions for the optimization of kraine should regain the status of a conditions of intermodal transport: rail, road, ferry, transit state and form a comprehen- as well as inland waterways," he said. sive strategy for the development of Ukraine, together with Belarus, aims to enhance all types of cargo transportation, said the economic capacity of the transport corridor Minister of Infrastructure, Volody- between the EU and the Black Sea basin countries. Umyr Omelyan, commenting on Ukraine's initiative "The perspective is to expand the volume of traf- to establish an international transport corridor fi c of container trains ‘Viking’ and ‘Zubr.’ In order through the Baltic Sea - Black Sea - Caspian Sea. to increase the volume of transit cargo through "Ukraine possesses everything needed to restore Belarus and Ukraine it is necessary to set com- transit capacities: geographic location, access to petitive tariffs. Ukraine, in turn, will continue to the sea, reliable international partners,” Omelyan develop the ferry route ‘Europe - Caucasus – Asia,’ said. “The establishment of an international trans- which will increase trade fl ows in the direction of port corridor in the direction of the Baltic Sea - the Baltic and Black seas," said Gennady Zubko, Black Sea - Caspian Sea will develop all types of Deputy Prime Minister, Minister of Regional Devel- freight traffi c as well as increase existing transport opment, Construction and Housing, adding that infrastructure." promising areas of cooperation with Belarus are He also stressed that the agreement will create a also the transport formats ‘Kiev-Minsk-Warsaw,’ platform for constructive dialogue between gov- ‘Kiev-Minsk-Vilnius’ and ‘Kiev-Minsk-Riga. GEORGIA TODAY AUGUST 30 - SEPTEMBER 1, 2016 BUSINESS 7 Electricity Market Watch

Continued from page 5 mode in October 2016. The construc- FOR GEORGIAN tion process is almost complete. The ELECTRICITY EXPORTS The membership agreement with the WPP is made up of six wind turbines, Electricity exports decreased 22.3% y/y European Energy Community is each with 3.45 MW installed capacity. in July 2016, with Russia driving the expected to be ratifi ed by the Georgian Project costs amounted to US$ 34.3mn. decline. Exports to Russia decreased parliament in early 2017. Prior to the EBRD fi nanced US$ 24mn through a 93.7% y/y from 63.3 gWh in July 2015, parliamentary hearing, Georgia has to senior loan and the rest was fi nanced while exports to Turkey increased 21.9% be admitted as a full member during by the state-owned Georgian Energy y/y to 99.0 gWh, partly compensating the Energy Community ministerial in Development Fund (GEDF). GEDF is for the drop in exports to Russia. This October. Upon full membership and working on four other wind projects, dynamic can be explained by the fact parliamentary ratifi cation, Georgia will partnering with the Turkish Calik Wind that average export prices to Turkey be obligated to start implementing a set on two of them. However, upgraded were up and average market price for of new legislative documents. Compli- transmission infrastructure and electricity on the Russian market (USc ance areas will include, but not be lim- increased system capacity are neces- 2-3/kWh) was below both Georgian and ited to, liberalization of energy markets, sary precursors to alternative energy Turkish prices. Furthermore, domestic supply quality and security, energy development on a signifi cant scale. consumption in Georgia increased, while effi ciency, and environmental consid- The current network capacity for wind generation was largely fl at, incentiviz- erations. and solar power plants is 50 MW, but ing the generators to either sell their expected to reach 400 MW by 2025, electricity domestically or export to GUARANTEED POWER according to the new energy strategy Turkey, before exporting to Russia. Sub- PURCHASE PERIOD REDUCED document. sequently, 76.8% of exports were directed FOR TKIBULI 150 CFPP to Turkey, 3.1% to Russia, 17.6% to Arme- The PPA for Tkibuli 150, a coal-fi red NATION’S LARGEST DAM nia (+5.8% y/y), and the rest, a negligi- power plant (CFPP), has been amended. EXPECTED TO CLOSE FOR THREE ble amount, to Azerbaijan. The guaranteed PPA period was reduced TO FOUR MONTHS IN 2018 from 20 to 15 years and the number of Enguri HPP will halt operations for two when consumption was down 28.5% y/y AVERAGE PRICE FOR guaranteed purchase months from twelve to three weeks in 2017 and for three to tricity at a discounted price – a likely due to unfavorable conditions on global GEORGIAN ELECTRICITY to nine (August through April). The four months in 2018 due to planned option for the Abkhazian region during ferro-alloy markets. DNO consumption EXPORTS UP 33.4% Y/Y amendment was signed by both parties renovation. The renovation works are the renovation. increased 5.6% y/y, with the greater The average export price of Georgian on July 4th and made public by the min- usually completed every ten years. Tbilisi area posting an impressive 17.5% electricity to Turkey increased 10.8% istry in early August. The installed Enguri supplies a substantial amount DOMESTIC CONSUMPTION y/y growth rate from an already high y/y (USc 5.0/kWh) in July 2016, despite capacity allowance was also amended of Georgia’s electricity, varying from RALLIES AS GEORGIAN base in July 2015 (+ 5.7% y/y). Usage of a 7.0% y/y decrease in the market clear- from 150 MW to 150-300 MW, but the 150 gWh (up to 20%) in the winter MANGANESE GETS BACK Energo-Pro subscribers was fl at (+0.7% ing price on the Turkish market (USc PPA is capped at a 150 MW capacity. months to 550 gWh (over 50%) in the TO BUSINESS AS USUAL y/y), while Kakheti Energy Distribution 4.8/kWh). Notably, Turkish prices The guaranteed purchase prices were summer months, and 100% of the Abk- Domestic consumption increased 6.8% usage was down 3.2% y/y. Consumption decreased further from a signifi cantly left unchanged at USc 7.9 per kWh in hazian region’s electricity consumption. y/y in July 2016, with DNOs and eligible of the Abkhazian region was up 9.2% low base. The weighted average whole- year 1 and increasing to USc 9.2 per Measures will have to be taken to bridge consumers the major growth drivers. y/y, after strong growth in June (+14.8% sale price in Georgia was down 4.7% kWh in years 12 and after. the gap during these months. Notably, Consumption of eligible consumers was y/y) and three consecutive months of y/y to USc 3.8. 2.5% of total electricity in the beginning of 2016, when the Abk- up 12.1% y/y, with Georgian Manganese fl at or negative growth fi gures before supplied to the grid was traded through WIND POWER TO HIT THE hazian region experienced an electric- (+25.9% y/y) driving the growth, while that. the market operator, with the rest traded GRID END OF 2016 ity shortage due to lower water levels GWP’s consumption decreased 3.9% through bilateral contracts. The aver- A generation license was granted to in the Enguri reservoir, GoG struck an y/y. GM’s high growth can largely be TURKEY STILL THE MOST age export price of Georgian electricity Qartli WPP, expected to launch in test agreement with Russia to import elec- attributed to the low base in July 2015, ATTRACTIVE MARKET was USc 5.0/kWh, up 33.4% y/y. GEORGIA TODAY 8 BUSINESS AUGUST 30 - SEPTEMBER 1, 2016 Dechert OnPoint: Amendments to the Law on Public Registry

echert Georgia, through record public information on the eco- The registration of economic activities the contribution of part- nomic activities of commercial entities is voluntary, except for in cases provided ners Archil Giorgadze and in a separate Registry of Economic by Georgian legislation. In cases where Nicola Mariani, joined by Activities. the registration of economic activities senior associate Irakli The Minister of Justice of Georgia will is compulsory, the commercial entities SokolovskiD and associates Ana Kostava establish by a special order the specifi c will only be allowed to perform such and Ana Kochiashvili, is partnering with regulations related to the documents activities after their successful registra- Georgia Today on a regular section of required for registration, the term of tion with the Registry of Economic the paper which will provide updated registration and the registration fees. Activities. In certain cases the commer- Law on Labor Migration. The core reg- tions in legal and non-legal fi elds. The information regarding signifi cant legal The amendments to the Law on Public cial entities may be fi ned as much as ulations in addition to the registration above innovations on registration dem- changes and developments in Georgia. Registry are scheduled to enter into force GEL1,000 if they perform the economic requirement require the conclusion of onstrate the government’s will and deter- In particular, we will highlight signifi cant on 2 September 2016. activities without due registration. a contract between the company provid- mination to duly perform these obliga- issues which may impact businesses The registered commercial entities will ing assistance and the foreign employer, tions and follow the chosen path of operating in Georgia. REGISTRY OF ECONOMIC be entitled to receive offi cial extracts the collection of data on that employer, development and growth. ACTIVITIES from the Registry of Economic Activi- the conclusion of a contract between the The Registry of Economic Activities ties in both Georgian and English lan- migrant and the foreign employer and * * * INTRODUCTION contains information about the specifi c guages. The registration shall remain in providing information to the migrant Noteworthy changes were recently intro- economic activities of commercial enti- force for one year and is subject to exten- about his or her rights. Note: this article does not constitute legal duced to the Law of Georgia on Public ties. The classifi cation of economic sion at the request of the commercial Before the respective amendments advice. You are responsible for consulting Registry (the “Law on Public Registry”). activities is established by the National entity or sole proprietor. enter into force on 2 September 2016, with your own professional legal advisors The National Agency of Public Registry Statistics Offi ce of Georgia (the “Statis- registration under the Law on Labor concerning specifi c circumstances for your (the “Public Registry”) combines vari- tics Offi ce”). The Statistics Offi ce adopted COMPULSORY REGISTRATION Migration is combined with the incor- business. ous registries, including the registry of an offi cial classifi cation of economic UNDER THE LAW ON poration of a legal entity and with its real property, the registry of movable activities based on the statistics classi- MIGRATION respective registration with the Registry Dechert’s Tbilisi offi ce combines local service and intangible properties and the regis- fi cation of the European Union. The Labor migration is a notable fi eld where of Entrepreneurial and Non-Entrepre- and full corporate, tax and fi nance support try of entrepreneurial and non-entre- offi cial press release of the Statistics registration in the Registry of Commer- neurial (Non-Commercial) Legal Enti- with the global knowledge that comes with preneurial (non-commercial) legal enti- Offi ce notes the reasons behind the need cial Activities is mandatory. The Law of ties. being part of a worldwide legal practice. ties. The recent amendments to the Law to establish a new classifi cation system, Georgia on Labor Migration (the “Law Dechert Georgia is the Tbilisi branch of Dechert on Public Registry now authorize the namely the compatibility and harmoni- on Labor Migration”) provides that legal CONCLUSIONS LLP, an international specialist Law fi rm that Public Registry to record data on the zation of the offi cial statistics produced entities, sole proprietors and foreign The amendments to the Law on Public focuses on core transactional and litigation economic activities of registered com- by various states. During the production entrepreneurial or non-entrepreneurial Registry is a strong indication that Geor- practices, providing world-class services to mercial entities and sole proprietors. of a new classifi cation system, the Sta- entities that are involved in providing gia’s legislators and public offi cials are major corporations, fi nancial institutions and Previously, the registered data of com- tistics Offi ce has used the revised detailed assistance to migrants to aid their fi nd- determined to ensure that Georgian private funds worldwide. With more than mercial entities included information structure of economic activities in the ing employment abroad are required to legislation is harmonized and compat- 900 Lawyers in our global practice groups about their shareholders, management EU member states and combined them register their activities with the Registry ible with the recent international eco- working in 27 offi ces across Europe, the CIS, bodies, obligations or restrictions, tax with specifi c features of national Geor- of Commercial Activities. nomic and legal developments, especially Asia, the Middle East and the United States, pledges, mortgages and other relevant gian classifi cations. By this development Providing assistance with finding those relevant to Georgia’s Association Dechert has the resources to deliver seamless, registration data such as their address, the Statistics Offi ce has ensured that the employment abroad is a regulated area, Agreement with the European Union. high quality legal services to clients world- date of registration and registration State of Georgia complied with the which is why mandatory registration is In particular since the Association Agree- wide. For more information, please visit www. number. Based on the recent amend- requirements of the Association Agree- required to verify that these entities ment was concluded, the State of Geor- dechert.com or contact Nicola Mariani at ments, the Public Registry will now also ment with the European Union. comply with the regulations under the gia has assumed numerous new obliga- [email protected]. GEORGIA TODAY AUGUST 30 - SEPTEMBER 1, 2016 BUSINESS 9 Former Manager of Crimea Energy Bridge Project Arrested by Russia’s FSB

Moscow is in the process of linking Ukraine’s BY NICHOLAS WALLER Crimea Peninsula with mainland Russia via a transportation and energy bridge. Russia invaded and illegally annexed Crimea from alery Goncharov, the Deputy Chair- Ukraine in February-March 2014. The Kremlin has man of Russia’s Federal Grid Company consistently thumbed its nose at Kyiv and the inter- of Uniﬁ ed Energy System (FGC UES), national community over its illegal actions in has been arrested on fraud and embez- Crimea, despite heavy international economic zlement charges connected to the actions levied against Russia for its invasion. Vconstruction of an energy bridge from Russia’s Ukraine has attempted to counter Russia’s occu- southern Krasnodar Territory to Ukraine’s occu- pation of the strategic Black Sea peninsula by pied Crimea Peninsula. blockading its only route that physically links it to Russia’s feared FSB security services detained the mainland. Goncharov at a Moscow airport just prior to board- The Kremlin’s decision to build an energy bridge ing a ﬂ ight to Europe. came in the wake of an attack by Ukrainian sabo- At the time of his arrest, Goncharov was no longer teurs who, in late 2015, blew up several pylons that an active employee of FGC UES, the company said carry electricity supplies to the peninsula. in a press release. According to Russia’s Energy Minister, the over- Contact: www.edelbrand.ge “Goncharov has not worked for Federal Grid Com- all cost of the energy bridge project amounts to pany since early summer. At this time Roman Filimonov USD 722 million. Phone: 599 461908 is currently in charge of the project,” the press service The FSB did not release any further details about told Russia’s Interfax news agency on August 27. the charges brought against Goncharov.

Eurofast Nominated at the Payroll World Awards 2016 urofast was nominated for Best Payroll professionals and experienced journalists. The Support Team Award at The Payroll winners will be announced at the awards ceremony World Awards 2016! on November 3rd, in London. The Payroll World Awards 2016 rec- This nomination is true recognition for the val- ognize and reward hard work and best ued client work we deliver every day at Eurofast, practiceE in the payroll industry. Actually, this year which is singled out as a top entrepreneur in the sees the highest number of companies and indi- SEE region. viduals competing in the history of the Awards. We at Eurofast remain focused at our goal: think The Payroll World Awards have been organized big, take risks and work hard to achieve perfection. for past 6 years by Payroll World and have become Good luck Eurofast! a leading event amongst payroll professionals. For more information on Eurofast and its service Payroll World is very popular amongst payroll portfolio, please visit www.eurofast.eu and http:// professionals and is a great source of up to date www.payrollworldawards.co.uk/ payroll news and legislation written by industry ADVERTISING GEORGIA TODAY 10 POLITICS AUGUST 30 - SEPTEMBER 1, 2016 Constitutional Court Chair Calls on Governmental Ofﬁ cials Not to Interfere in Judicial Activities

Papuashvili made the statement in response to BY THEA MORRISON accusations from the members of the ruling team Georgian Dream (GD), who said that Constitutional Court Chair has a deal with the opposition party onstitutional Court Chair Giorgi Pap- United National Movement (UNM) and is trying uashvili released a special statement to cause a stir before the October parliamentary on August 27 calling on governmental elections. The ruling team also accuses Papuashvili ofﬁ cials to refrain from interference of exerting pressure on other members of the nine- Cin judicial activities. seat court.

Giorgi Papuashvili, Head of Constitutional Court. Source: Tabula.ge In his statement, Papuashvili says that in the Con- out a planned PR campaign against judges he can- stitutional Court's 20-year history this is the most not infl uence. unprecedented case of pressure on judges from “There is suspicion that the Chair of the Consti- the government and ruling team representatives. tutional Court is trying to create a political climate “Political leaders allow themselves to roughly in the pre-election period,” Mdinaradze said. interfere in the Constitutional Court's activities Prime Minister of Georgia Giorgi Kvirikashvili and are engaged in an orchestrated campaign in claimed Papuashvili’s statement was unrealistic. order to discredit the Court,” the statement reads. “I personally met Papuashvili and he had an According to Papuashvili, governmental offi cials opportunity to prove his statements to the Pros- deliberately intimidate and discredit those judges ecutor’s Offi ce. I have no right to make any politi- who speak openly about pressure on the Court. cal comments but it all seems like an unrealistic “Once again, we call on the authorities to refrain story,” Kvirikashvili said. from interference in judicial activities,” he said. Former ruling team, the UNM, believes that the GD members reject the allegations, saying Pap- Court is under governmental pressure, saying the uashvili and the fi rst chamber of judges are acting government is trying to infl uence the Court in order in favor of the UNM. to make them rule in favor of government before Mamuka Mdinaradze, member of the GD politi- the parliamentary elections. cal Council, suspects that Papuashvili is carrying “It is pity that the government is trying to infl u- ence the Court. This process has to be stopped,” UNM member Gigi Tsereteli stated. The scandal around the Constitutional Court began on July 21 when Papuashvili stated that certain judges are under pressure in order to make them rule in favor of government. He did not spec- ify the names and the details of the cases however, There is suspicion that he mentioned they are high-profi le ones currently in progress. the Chair of the The Prosecutor’s Offi ce launched an investigation concerning Papuashvili’s statements and ques- Constitutional Court is tioned all nine judges. In early August, the Prosecutor’s Offi ce released trying to create a the mid-term results of the case saying all ques- tioned Constitutional Court Judges deny they are political climate in the pressured. The fi nal results of the investigation pre-election period have yet to be published.

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 Tel: (995 32) 2 45 08 08 10 Galaktion Street E-mail: [email protected]

TIFLIS 7.5x6cm ING.indd 1 13/06/16 15:16 GEORGIA TODAY AUGUST 30 - SEPTEMBER 1, 2016 CULTURE 11 Georgian Chess Player Wins European Youth Championship

eorgian chess player Nino Khomeriki won the gold medal at the European Youth Chess Champion- ship’s Under-18 tourna- Gment in the Czech capital Prague. Khomeriki, 18, scored 7.5 of a possible nine points winning her a second Euro- pean championship. The ten-day competition featured youth chess players from Georgia, Armenia, Spain, Hungary, Turkey, Ger- many and Russia.

Front Line Village in Georgia to Host International Animation Film Festival

eorgia’ small village Nikozi, national Animation Festival beginning at the Nikozi Monastery Palace, which located only 500 meters September 1. was destroyed in the fi ve-day 2008 August from the Russian occupied Dozens of local and international art- War against Russia. South Ossetia region, will ists from France, Italy, Canada, Poland The festival is organized with the help host its sixth annual Inter- and Lithuania will showcase their work of Hahn Films, Tbilisi’s Goethe Institute G and Kvali XXI fi lm studio. The Okropiridze Art School will host Photo: Zhenko/ Flickr a three-day workshop from September 2 on animation design, while a fi lm production course will be conducted by German artist Gabor Steisnger. The festival will kick off with a pres- entation of the cartoon trilogy “Anima- tion: A World History” by Italian fi lm- maker Giannalberto Bendazzi. “Over time we came up with the idea to organize an International Animation Film Festival in our village. In 2011, we held the fi rst festival…We wholeheart- edly welcome everyone to our festival,” said Nikozi and Tskhinvali Metropolitan Isaiah. Guests from Tbilisi will be transferred to Nikozi by van free of charge from the Bike Statue near Radisson Blu Iveria Hotel, Tbilisi.

PUBLISHER & GM Journalists: Photographer: ADDRESS Reproducing material, photos George Sharashidze Tony Hanmer, Tamar Svanidze, Giorgi Pridonishvili 1 Melikishvili Str. and advertisements without Zviad Adzinbaia, Beqa Tbilisi, 0179, Georgia prior editorial permission is COMMERCIAL Kirtava, Meri Taliashvili, Eka Layout: strictly forbidden. DEPARTMENT Karsaulidze, Zaza Jgarkava, Misha Mchedlishvili Tel.: +995 32 229 59 19 The author is responsible for Commercial Director: Maka Bibilashvili, Karen E: [email protected] all material. Rights of authors Iva Merabishvili Tovmasyan, Dimitri Webmaster: F: GeorgiaToday are preserved. The newspaper Marketing Manager: Dolaberidze, Maka Sergey Gevenov is registered in Mtatsminda Mako Burduli Lomadze, Tim Ogden, ADVERTISING & district court. Ana Akhalaia, Robert Isaf, Circulation Managers: SUBSCRIPTION EDITORIAL DEPARTMENT: Joseph Larsen, Will Cathcart, David Kerdikashvili, +995 595 279997 GEORGIA TODAY Editor-In-Chief: Vazha Tavberidze, Nugzar B. David Djandjgava E-mail: marketing@ Reg. # 06/4-309 Katie Ruth Davies Ruhadze georgiatoday.ge Georgia Welcomes European Standard two-ﬂ oor Stadler Kiss Train

JS Georgian Railway The Stadler Kiss prepared a special model train takes into surprise for its consideration the passengers with two- needs of people with fl oor European limited abilities who standard Stadler Kiss will have lifts in the model electro trains train and easy-access beginning to run in toilets. Bathrooms the direction of the onboard also offer Black Sea resort changing tables for cities. parents with babies. The four new trains Train crews serving from the Swiss onboard have been company Stadler through special re- Bussnang AG are training courses equipped with ultra- abroad. modern security The fi rst new train systems. The 400- entered Georgia at seat trains fully fi t the the beginning of July current sizes of the and successfully ran Georgian railway, its fi rst trip to Batumi. with the width of the It will run to and from railway 1520 mm. the Black Sea cities Each train is 101.7 non-stop and will stop m long, 3400 mm only at seaside resorts wide, and 5240 mm Batumi, Kobuleti and high. Georgian Ureki. Railway worked The same model of together with train operates in Deutsche Bahn Switzerland, Belgium, experts and German Germany, Austria and specialists on the other countries technical parameters. throughout Europe.