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Issue no: 908/59 • DECEMBER 27 - 29, 2016 • PUBLISHED TWICE WEEKLY PRICE: GEL 2.50

In this week’s issue... Georgian Leaders Congratulate Local Jews on Hanukkah NEWS PAGE 5 Kleptocrats Attack ’s Reform-Minded Central Banker PAGE 6 Georgian Foreign Ministry Hosts Meeting on US- FOCUS Strategic Partnership ON SKI RESORTS An unprecedented example of Public-Private-Partnership is witnessed in the opening of the new Mitarbi Ski Resort PAGE 2 PAGE 7 Christmas Concert Culminates Georgia, US Sign Agreements to Boost Economic another Year of Successful Growth at Confl ict Divide Development PAGE 8

BY THEA MORRISON Welcome to Georgia Wine Campaign he Agency for Inter- Kicks Off for the national Development (USAID) is to allocate USD 22 million for Holiday Season Georgia’s economic development. Georgia’s Finance Minister, Dim- PAGE 9 Titry Kumsishvili, and Director of USAID’s Cau- casus Mission, Douglas Ball, signed three agree- ments to that effect on Thursday. Bryza: Will Use the Changes were made to previously signed agree- ments increasing the amount of a pre-existing Defi nition of Terrorism to grant to the current USD 22 million fi gure. governance, and a “stable, integrated and healthy” tors, as well as more effectively managing nat- The Finance Ministry reports that the agree- society. ural resources and creating market-oriented Advance its Own Political ments cover a number of high-priority areas, The activities planned within the agreements jobs. Increasing the societal integration of per- Interests including inclusive and sustainable economic will be aimed at introducing business standards sons with disabilities and of IDPs has also been growth, democratic controls and accountable and increasing competitiveness in various sec- fi ngered as a focus. POLITICS PAGE 11

Prepared for Georgia Today Business by Markets Asof23ͲDecͲ2016 STOCKS Price w/w m/m BONDS Price w/w m/m BankofGeorgia(BGEOLN) GBP29.59 Ͳ5,6% Ͳ4,2% GEOROG04/21 104.44(YTM5.58%) +0,4% +0,4% GHG(GHGLN) GBP3.55 Ͳ5,0% Ͳ1,5% GEORG04/21 109.65(YTM4.38%) +0,5% +1,3% TBCBankGroup(TBCGLN) GBP14.69 Ͳ4,9% +11,9% GRAIL07/22 106.88(YTM6.26%) Ͳ0,1% Ͳ0,9% BGEOLN07/23 100.19(YTM5.96%) Ͳ0,1% +0,3% COMMODITIES Price w/w m/m CrudeOil,Brent(US$/bbl) 55,16 Ͳ0,1% +12,7% CURRENCIES Price w/w m/m GoldSpot(US$/OZ) 1133,30 Ͳ0,1% Ͳ4,6% GEL/USD 2,7450 +1,1% +10,9% GEL/EUR 2,8580 +1,2% +9,4% INDICES Price w/w m/m GEL/GBP 3,3599 Ͳ0,5% +9,0% FTSE100 7068,17 +0,8% +3,7% GEL/CHF 2,6739 +1,5% +9,8% FTSE250 17909,59 +0,7% +1,6% GEL/RUB 0,0447 +1,8% +16,4% DAX 11449,93 +0,4% +7,4% GEL/TRY 0,7795 +0,1% +6,9% DOWJONES 19933,81 +0,5% +4,5% GEL/AZN 1,5198 Ͳ0,5% +7,7% NASDAQ 5462,69 +0,5% +1,5% GEL/AMD 0,0057 +1,8% +9,6% MSCIEMEE 142,37 Ͳ1,1% +8,4% GEL/UAH 0,1042 +1,3% +7,9% MSCIEM 841,60 Ͳ1,7% Ͳ1,7% EUR/USD 0,9564 Ͳ0,0% +0,9% SP500 2263,79 +0,3% +2,7% GBP/USD 0,8139 +1,6% +1,3% MICEX 2173,18 Ͳ2,6% +4,2% CHF/USD 1,0265 +0,0% +1,0% MSCIFM 2360,51 Ͳ1,1% Ͳ0,2% RUB/USD 61,3855 Ͳ1,1% Ͳ4,5% GTIndex(GEL) 1176,94 Ͳ +29,5% TRY/USD 3,5173 +0,3% +3,6% GTIndex(USD) 838,85 Ͳ3,7% +16,8% AZN/USD 1,8262 +2,3% +2,9% GEORGIA TODAY 10 BUSINESS DECEMBER 27 - 29, 2016 Singing Praises to Bulbuli Market

ers of bio-products like cheese and honey. non-governmental organization ‘Caritas The producers keep the money earned Czech Republic in Georgia’. Marina from sales at the event. We plan to organ- Guzarauli, representative of the company, ize more events like this next spring and says this kind of festival is of vital impor- autumn,” Bukhaidze said. tance to Tushetian enterprisers. Among visitors was game designer “Our production is made in Tusheti extraordinaire and visual reality expert and is biologically cleaner than most the Mark Rein-Hagen, who has been living imported competition. This is our advan- in Georgia for the last nine years. Sur- tage. rounded with children, Rein-Hagen Right now our cooperative consists of loudly confessed his love for Georgia six persons and our family members are and also reminisced on how much Geor- also involved. We have greenhouses gia has developed during the years he where potatoes and vegetables are cul- has spent living here. “When I fi rst came, tivated and we were the fi rst to cultivate even buying a hamburger was a poten- cucumbers in Tusheti and sell them to tial problem,” he announced, lauding the local hotels,” Guzarauli said. the festival’s wide choice of fusion She added that raising awareness is dishes. “Events like these are best for key to the cooperative’s activities. People attracting tourists and it’s good these must understand the importance of con- people, small and medium scale enter- suming healthy products. prisers, are given a chance to show off “We want to increase the number of their products”. customers and this festival is the best One stall stood out from the rest- a opportunity, though it would be nice to “delegation” from one of Georgia’s most see such festivals occurring on a system- beautiful places, the mountainous Tush- atic basis and for us to have more options eti. The ‘Tusheti 2015’ cooperative pre- in terms of delivering our products. It sented endemic Tushetian honey, Guda also helps prevent Tushetian people from cheese, other dairy products, tea, pota- leaving the region – if there is profi t to toes, traditional spirits and other hand- be made, they’ll stay and continue pro- made items. The cooperative was created ducing their goods,” Guzarauli pointed in 2015 with the assistance of the Czech out.

specialized for fi rst-time guests and BY VAZHA TAVBERIDZE & viewers. One emergent festival plans to TATIA AKHVLEDIANI change things for the better, though: the Bulbuli (Nightingale) Market, organized by Georgia’s Wine Tourism Association, ife is a breeze if you’re a Euro- was a resounding success when held for pean farmer. Well, maybe not the fi rst time in November, and then exactly a breeze, but you can during its comeback on Christmas Eve. at least sustain yourself and This time held at the Muza cultural your business and get enough center, it saw 75 companies from differ- opportunitiesL to show off your product, ent regions of Georgia taking part, includ- which is key to success and further ing winemakers, farmers, cooks and expansion. artists. The festival was held in the form What we’re getting at are festivals – the of a Christmas Fair, where traditional all-important venue where you put out Georgian and European cuisine was that delicious cheese made according to presented, as well as wines, teas, sweets, grandma’s recipe, or that wine you’ve dairy products and handmade products. been trying to develop a bouquet for The public could taste and purchase the over the last two years, to see how peo- presented items, as well as take part in ple like it, and to see how others from various activities such as a raffl e, dances your fi eld have been doing. In Europe and children’s activities. those opportunities come aplenty – in One of the organizers, Elene Bukhaidze, Georgia not so much. It is a shame, really, says the aim of the event was to connect considering that Bazaar traditions in different people from various companies, Tbilisi and Georgia in general count as well as to open new perspectives for centuries. Sure, we have occasional them. cheese and wine festivals from time to “We try to help them get popular and time, but those are not as frequent as increase their sales. There are cafes and one would like and in most cases are too restaurants presented, as well as produc- RENT YOUR DREAM APARTMENT IN TSKNETI

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I think there will be a window of vulnerability when discouraging companies from investing in Azer- BY NANA SAJAIA, I don’t think Russia really cares about terrorism, the President tries to take advantage of what he baijan’s gas resources, because there will be so VOICE OF AMERICA GEORGIAN SERVICE but, of course, Russia will use the defi nition of ter- views as Donald Trump’s naiveté in calling another much Russian gas in the Turkish stream heading rorism to advance its own political interests. Russia reset policy. If we can get through that with- to the EU space. out escalation or tension between and I think that’s part of the Russia strategy to pull e spoke to former Deputy Assis- TRUMP HAS NOT ARTICULATED A Washington to a dangerous level, then I think Don- Azerbaijan and Georgia more and more under Rus- tant Secretary of State for Euro- COMPREHENSIVE SYRIA POLICY, ald Trump will wake up and maybe pursue a policy sian control, with the EU divided and not paying pean and Eurasian Affairs, BUT HE HAS SUGGESTED HE WILL that should have been in place a long time ago: to attention and then eager to rebuild relations Ambassador Matthew Bryza. WORK ALONGSIDE RUSSIA TO impose real costs for the sorts of behavior carried with Russia, there is a danger that Azerbaijan and FIGHT EXTREMISTS, INCLUDING out by Russia in murdering innocent civilians in Georgia could begin to lose ties with Turkey and W THE ISLAMIC STATE. WHAT ARE Aleppo. the EU. I hope it doesn’t happen. In Georgia, events WHAT NEXT FOR TURKEY-RUSSIA YOUR THOUGHTS ON THAT? are defi ning their own political momentum since RELATIONS AFTER THE ASSASSINATION In theory that would be great if Russia and the US RUSSIA AND TURKEY ARE BOTH the last elections. Moscow is taking advantage of OF THE RUSSIAN DIPLOMAT could work together to destroy the Islamic State. REGIONAL POWERS. WHAT the election results and will continue to do so; it ANDREY KARLOV IN ANKARA? But I don’t think that’s really ever going to happen. IMPLICATIONS CAN THEIR NEW PHASE has allies within the Georgian system. I just hope I actually think that Turkey-Russia relations are The way the US looks at fi ghting terrorism and the OF RELATIONS HAVE FOR GEORGIA that the Georgian people will remain the Georgian going to grow stronger because of the horrible way Russia does are totally different. AND THE SOUTH CAUCASUS? people and will maintain their focus on their own tragedy. This particular attack has shaken me per- And the tactics we are using are different. When I don’t expect a direct infl uence on Georgia. My aspirations for the closest possible ties with the sonally more than any, because it suggests that not the US and our allies fi ght terror, an effort is made fear is that Russia has been working on the energy trans-Atlantic community. And I am confi dent that only our ambassadors but our former ambassadors to limit the killing of innocents. When Russia con- side, to re-isolate Georgia and Azerbaijan. I think will continue even though there will be attempts are targets, and that deep inside the Turkish system ducts anti-terrorist actions like in Aleppo or in the Turkish stream pipeline project is aimed at from Moscow to destroy that national consensus. there are still rogue elements that do horrible things. , they kill everybody. I don’t think Russia A lot of people share that view here in Turkey can emerge in that way. But what we will see in and would like to see Turkey-Russia relations get Syria, even once the ISIS is defeated, will be suc- stronger. The way both President Erdogan and cessor groups and Bashar Al-Assad still in power. President Putin have responded suggests that they And Syria led by Assad cannot be stabilized. agree. And they are trying to transform this ter- Even if US and Russia partner up, in a relatively rible sorrow into a positive momentum that might short time we’ll see Donald Trump deeply disap- generate a new peace process that would involve pointed and we’ll see him giving up on his Russia Russia, Turkey, and Iran, brokered by Kazakhstan. reset policy the same way Barak Obama did.

RUSSIA, IRAN AND TURKEY MET IN CRITICS SAY OBAMA’S RELUCTANCE MOSCOW TO WORK OUT A POLITICAL TO BACK THE SYRIAN OPPOSITION ACCORD TO END SYRIA’S NEARLY WITH MORE INVOLVEMENT SIX-YEAR WAR, LEAVING THE UNITED LEAVES WASHINGTON WITH LITTLE STATES ON THE SIDELINES. SECRETARY LEVERAGE ON A GEOPOLITICAL OF STATE JOHN KERRY WAS NOT CRISIS AS PRESIDENT-ELECT DONALD INVITED. NOR WAS THE UNITED J. TRUMP PREPARES TO TAKE NATIONS CONSULTED. SHOULD OFFICE. WHERE DOES THAT PUT WE EXPECT MORE INVOLVEMENT THE US IN REGIONAL POLITICS? FROM RUSSIA IN THE REGION? I think it puts the US on the sidelines for now. In Absolutely, if Russia’s aggressive involvement does my opinion, President Obama’s huge diplomatic not involve continued war crimes, as the UN has failure was not enforcing his own red-line with accused Russia of; if it does not involve specifi cally regards to use of chemical weapons by Bashar Al- targeting children in schools and hospitals that are Assad, and I think Barak Obama and John Kerry hidden underground with bunker blasting bombs, were terribly manipulated by Sergey Lavrov, who but instead pursues an actual political process to somehow convinced Kerry that eliminating chem- resolve the confl ict, that’s good. ical weapons was to reduce human suffering in But the tragedy is that the United States, the UN, Syria and we know that it’s absolutely not what and our allies have been absent. We’ve been hear- happened. ing Secretary John Kerry for months saying there So, the US has played itself out of the game. is no military solution to this confl ict. Well, there is one and it just happened, at least in Aleppo. And HOW DO YOU SEE THIS GEO- Russia and Bashar Al-Assad won. We should have POLITICAL CRISIS AFFECTING US- been more focused on imposing costs on Moscow RUSSIA RELATIONS UNDER THE NEW for these, again in the US’ term “war crimes,” but WHITE HOUSE ADMINISTRATION?

PUBLISHER & GM Journalists: Photographer: ADDRESS Reproducing material, photos George Sharashidze Tony Hanmer, Irakli Dolidze 1 Melikishvili Str. and advertisements without Zaza Jgarkava, Tbilisi, 0179, Georgia prior editorial permission is COMMERCIAL Maka Bibilashvili, Layout: strictly forbidden. DEPARTMENT Karen Tovmasyan, Misha Mchedlishvili Tel.: +995 32 229 59 19 The author is responsible for Commercial Director: Dimitri Dolaberidze, E: [email protected] all material. Rights of authors Iva Merabishvili Maka Lomadze, Webmaster: F: GeorgiaToday are preserved. The newspaper Marketing Manager: Tim Ogden, Joseph Larsen, Sergey Gevenov is registered in Mtatsminda Mako Burduli Vazha Tavberidze, ADVERTISING & district court. Nugzar B. Ruhadze, Circulation Managers: SUBSCRIPTION EDITORIAL DEPARTMENT: Nino Gugunishvili, David Kerdikashvili, +995 595 279997 GEORGIA TODAY Editor-In-Chief: Thea Morrison, David Djandjgava E-mail: marketing@ Reg. # 06/4-309 Katie Ruth Davies Natia Liparteliani georgiatoday.ge

GEORGIA TODAY 2 NEWS DECEMBER 27 - 29, 2016 Mitarbi Ski Resort & Borjomi- Bakuriani Railroad Open

Prime Minister of Georgia, and other infrastructure development. BY NINO GUGUNISHVILI government offi cials. Two new ski lifts were built by Black The resort is regarded as an unprec- Sea Group Company, manufactured by edented model of public-private partner- Doppelmayr - one of the leaders in the itarbi Ski Resort was ship; a joint 150 million investment in industry. officially opened on which roads were constructed and ski Construction of a new biathlon track, Sunday, with a cere- lifts were built by the State, while private an ice hockey arena and a ski-jump sys- mony attended by company GRDC invested in hotels, enter- tem is planned for 2017, creating a com- , tainment centers, shops and parking area plex ready to host international tourna- M ments. The government has allocated Mitarbi Resort opening day 48 million GEL to fi nance the Kokhta- Mitarbi ski lift development project, and a private investor is to invest an additional 70 million GEL. “Mitarbi’s renewed infrastructure is Kvirikashvili at Mitarbi Resort Opening to generate additional employment opportunities for locals,” said Kvirikash- He went on to note the potential of In addition to Mitarbi, the rennovated vili. “It will sustain local residents in a the newly opened ski resort to be fully Borjomi- Bakuriani railway line has been radius of 100 kilometers. We are facing functioning all year round for use by re-launched and is ready to take tourists some hard times today, but we should national teams and tourists alike. “The from Borjomi to Bakuriani and back. Its make sure we take every step to make resort is surrounded by gorgeous land- wagons each seat 32 and round-trips are life better in the country. We take close scapes and I believe that these invest- available twice a day. Known as “Kuku- to heart all the problems facing our ments will create a unifi ed Borjomi- shka” (Cuckoo), the first train was citizens. We must move on, however, Bakuriani and Kokhta-Mitarbi complex launched in 1902. to make life better in the country for as one of the most beautiful tourist Another resort, Gudauri, also opened future generations,” the Prime Minister destinations in the world,” Kvirikashvili for the new season, also with a new ski- stated. said. lift. French Petit Futé to Feature Georgian Wine & Wine Tourism smartphone apps. It updates information BY NINO GUGUNISHVILI about Georgia every two years. Information on Georgian wine and the wine tourism potential of the country opular French travel guide will be featured for the fi rst time in the Petit Futé is to feature Geor- edition of 2017. gia in one of its upcoming issues. Petit Futé is a travel guide available in , Giorgi Chogovadze and a Canada,P , and other Petit Futé Journalist countries both in digital format and on GEORGIA TODAY DECEMBER 27 - 29, 2016 NEWS 3 The New Year in Arakishvili Residence – Discounts & Gifts Galore uy a fl at in the Arakishvili LIVE IN THE BEST PLACE Residence and get it fully The Arakishvili Residence is situated in furnished with full premium the center of Vake: one of the most pop- appliances AND a special ular residential locations in Tbilisi. Aside discount. from its location, the project is architec- BThe residential complex is welcoming turally intriguing. the New Year holidays by offering its The project is fi nanced by the Bank of clients the best household appliances Georgia. Aside from current offer, Arak- and gifts. ishvili Residence customers are able to Those who wish to purchase an apart- benefi t from fl exible payment conditions. ment in the complex will receive a full It is also possible to get an interest-free suite of premium class German house- loan until the end of the project. Cus- hold appliances. tomers are also able to get a mortgage The two New Year's gift packages have at just 6% interest. been specially created for clients who wants to puchase up to 100 sq meters PROJECT SUPPORT: space or for those who want over 100 square meters. The latter package includes • The project is fi nanced by the Bank a Bosch refrigerator, gas set (oven, vent • The exclusive broker for the complex and gas stove), dishwasher, Multi-Robot, is Colliers International Georgia kitchen, washing machine, Breakfast set • The complex is being built by com- (toaster, electric kettle, and coffee pany ‘Anagi’. machine), a vacuum cleaner, Samsung • The construction of the project will LED TV and Hyundai air conditioner. end in 2017. GEORGIA TODAY 4 NEWS DECEMBER 27 - 29, 2016 Russian Plane Carrying 92 Crashes into

Russian rescue squad working near the crush site in . Source: Daily Mail

Total Budget of TSU Set as 79 mln GEL

cutbacks ahead. Management of the budget means BY NATIA LIPARTELIANI crisis management, including making a number of absolutely necessary but naturally unpopular steps,” he said. Ministry reported that there were no signs of sur- BY THEA MORRISON he total budget of Tbilisi State Uni- Shervashidze added that the unpaid amount of vivors. versity has been set as 79 million GEL study fees by students currently amounts to 3 mil- The plane disappeared from the radar two min- (USD 28.11 million), Giorgi lion GEL (USD 1.07 million). utes after taking off from Sochi, where the plane Shervashidze, Head of the University, "This is a very large sum of money. With this Russian military plane carrying pas- had landed to fi ll up on fuel. announced at a press conference Sat- money, one of the campus buildings can be com- sengers to Russia's Hmeimim airbase, "The area of the crash site has been established. Turday. pletely rehabilitated at the University. The struc- outside the coastal Syrian city of Lata- No survivors have been spotted,” Major-General During the press conference Shervashidze talked ture of the budget is quite heavy; with about 80 kia, crashed into the Black Sea on Igor Konashenkov, a ministry spokesman, told about plans for 2017 and the budget. percent going to salaries or wages and public Sunday. reporters. “We’ve cut down representative expenses by 30 spending, which leaves only 20 percent of the AThe latest data from Russia's Defense Ministry Russian President offered condo- percent and travel expenses by 26 percent. We had budget for infrastructural works,” Shervashidze suggests 92 people were on board the plane - 8 crew lences to the families of the deceased and declared to make some painful moves and there are more said. members and 84 passengers. Among them was December 26 a national day of mourning. Executive Director of the Spravedlivaya Pomoshch Russia’s news agency Tass reports that Russia’s (Fair Aid) charity fund Elizaveta Glinka, known as Investigative Committee is looking into all possible Dr. Liza, as well as servicemen and reporters, includ- theories of the Tu-154 plane crash, including a ter- ing those from Channel One, Zvezda and NTV. rorist attack. The plane was also carrying more than 60 mem- "The Investigative Committee is looking at vari- bers of the famous , the offi - ous theories. Naturally, it considers the entire spec- cial army choir of the Russian Armed Forces, who trum and any possible reasons that might have led were fl ying in to wish Happy New Year to the air to the crash. It is too early to speak about a terror- group of Russia’s Aerospace Forces at the Hmey- ist attack," Maxim Sokolov, Russian Minister of mim air base. The choir’s head, Valery Khalilov, Transport, said. was also on the list of passengers. The Russian Defense Ministry said the aircraft The Defense Ministry said the debris of the Tu-154 had been in service since 1983 and had fl own some plane was found 1.5 km from the coast near Sochi 7,000 hours since. The plane last underwent repairs at a depth of 50-70 meters with ten bodies. The in December 2014 and was serviced this September. Armenia’s Defense Minister Pays Offi cial Visit to Georgia

Prior to his meeting with the foreign minister, Sarg- BY THEA MORRISON syan met with his Georgian counterpart, Levan Izoria. The two ministers signed an agreement on bilat- eral military cooperation for 2017. Izoria signed a eorgia’s foreign minister, Mikheil similar agreement with Azerbaijan during his visit Janelidze, held an offi cial meeting to Baku the previous week. with Armenian Defense Minister The agreement concerns strategic planning, Vigen Sargsyan on Thursday. Sargsyan military education, medicine, and military police had come to Tbilisi in order to boost concerns over the coming year, and involves shar- Gbilateral ties between the two countries and hold ing experience between Georgian and Armenian meetings with Georgian offi cials. defense ministries. The ministers discussed the existing relationship Izoria underlined that one of the priorities of between Georgia and Armenia and expressed their Georgia’s government was the deepening of rela- readiness to improve logistical cooperation between tions with neighboring states. the two states. Sargsyan thanked his counterpart for his hospi- Recent developments in the Caucasus Region tality and noted that Georgia and Armenia have were also discussed. always had good relations. GEORGIA TODAY DECEMBER 27 - 29, 2016 NEWS 5 Georgian Leaders Congratulate Local Jews on Hanukkah BY THEA MORRISON New Year Town Opens

he Jewish-Georgian relations boast a centuries-long history, in Dedaena Park special love and respect- said and handmade crafts at colorful stalls in BY THEA MORRISON Georgia’s Prime Minister, the New Year town. Giorgi Kvirikashvili, when Moreover, a special art space has been congratulatingT Jews living in Georgia on arranged in the park, where in addition their eight-day festival of lights, Hanukkah. bilisi City Hall is inviting to the cultural events, sports and chil- Kvirikashvili attended a concert cele- the residents of the capital dren's activities will take place. Special brating Hanukkah at the Tbilisi Opera and foreign visitors to a sports facilities have also been installed and Ballet Theater on Saturday where newly opened New Year in the garden. Georgia’s PM Kvirikashvili delivered a speech at a concert celebrating Hanukkah at he wished the Jewish people a happy the Tbilisi Opera and Ballet Theater. Source: PM’s Press Offi ce Town in Tbilisi Dedaena The opening concert was followed by holiday, progress and prosperity. Park,T which has been transformed for a variety of music and dance perfor- “Georgia has stronger ties with the Together with the Prime Minister, the Maccabean revolt against the Seleucid Christmas and New Year into a bright, mances. Radio Kubrick will broadcast Jewish nation than with any other nation festive event was attended by Israeli Empire. Hanukkah is observed for eight cheerful and entertaining place for the live from the Park with Georgian DJs in the world… This is why my wish for Deputy Foreign Minister Tzipi Hotovely nights and days, starting on the 25th day whole family. performing at night. 2017 is to have a year of great friendship and members of the Knesset as part of of Kislev according to the Hebrew Cal- Tbilisi Mayor, Davit Narmania opened Visitors can stroll through tunnels of and brotherly bonds between our nations, their three-day visit to Georgia. endar, which may occur at any time from the town on and attended fl owers and see decorative and mechan- a year of enormous transformation in Georgia’s President, Giorgi Margve- late November to late December in the a concert - A Christmas Carol, organ- ical dolls all over the park. In the center our great partnership and large-scale lashvili also issued a statement and con- Gregorian Calendar. It is also known as ized by renowned singer Vakhtang of the town there is a huge Christmas cooperation between our states,” the PM gratulated local Jews on their festival. the Festival of Lights and the Feast of Kakhidze. tree, with beautiful decorations. stated while delivering his speech. He said Georgia-Israel friendship was Dedication. The mayor noted that not only Dedaena The Mayor’s Offi ce reports that many Kvirikashvili said Israel was known the best example of friendship between Park, but the whole capital was decorated events will be held daily in the Agh- throughout the world as a country with nations. for New Year, including renovated Agh- mashenebeli Avenue. A decorative train strong startups, and Georgia had all the “Dear friends, I cordially congratulate mashenebeli Avenue, where various has been installed in ‘New Tifl is’, oper- necessary preconditions to use Israel's you with Hanukkah - success, blessings, festivities are already underway. ated by Santa Claus, who entertains the experience in order to emerge as an purifi cation, and eternal renewal this “On December 31 we all will meet New children. A New Year exhibition-sale equally strong nation. great holiday,” the statement of the Year with a Gala Concert in Rose Square,” has been arranged in each cabin of the "We are certainly counting on help from President reads. said Narmania. train, where the guests can buy souve- our Jewish friends, our brotherly nation. Hanukkah is a Jewish holiday com- Over nine days, residents and guests nirs and sweets. Georgia has always stood and will always memorating the rededication of the Holy of the capital will be able to taste sweets The New Year festivities will continue stand by the Jewish people," he said. Temple in Jerusalem at the time of the at Christmas cabins and buy decorations throughout the capital until January 2. GEORGIA TODAY 6 BUSINESS DECEMBER 27 - 29, 2016 Kleptocrats Attack Ukraine’s Reform-Minded Central Banker

OP-ED BY EUGEN ILADI

ince the ouster of former Pres- ident Viktor Yanukovych in 2014, Ukraine has been pulled in two directions. Wealthy elites have rejected reform Swhile technocrats have fought corrup- tion. A major player on the reform side is the central bank, the National Bank of Ukraine, and its leader, Valeriya Gontar- eva. In recent months, both the bank and Gontareva have come under increasingly fi erce and unfair attack from the elites. The pressure is likely to get even more intense now that the nation’s largest commercial lender, PrivatBank, has been nationalized, replacing two infl uential business executives with 100 percent control by the State. Ukraine’s well-connected oligarchs have looted the country’s banking sector and defrauded ordinary Ukrainians. Dur- ing Yanukovych’s administration (2010 to 2014), banks owned by local oligarchic groups operated with virtually no restric- tions. They took in billions from indi- vidual depositors and funneled the money as loans to the banks’ owners, their cro- nies and shell companies. Most of these loans were not repaid, resulting in an estimated USD 12 billion loss to the state and depositors, according to Ukraine's

Leader of the National Bank of Ukraine, Valeriya Gontareva Deposit Guarantee Fund. struction and Development. freedom, with longtime political oppo- to fall back to the status-quo of accepting Yanukovych’s corrupt Tsar-like rule of Infl ation in Ukraine has fallen from a nents Yulia Tymoshenko and Ihor Kolo- post-communist corruption. The elite the country and shameful escape left staggering 61% to 8%. But not everyone is moyskyi working behind the scenes to will defend many of the fi nancial issues Ukraine fi ghting Russian aggression and happy. Nearly half the nation’s richest busi- maintain the regime of corruption. that hit their bank accounts as populism. Thanks to a dealt an unprecedented blow to the value ness executives have lost their so-called The independence of the National Bank But the interests of the people lie with of the hryvnia, Ukraine’s currency. It pocket banks and their access to easy cash, is of the utmost importance; aid from the reformers who are striving to rid the responsible has never recovered. i.e. ordinary Ukrainians’ deposits. the IMF, for example, is contingent on economy of debilitating cronyism. Yet Ukraine’s reformers continue to For many of Ukraine’s old guard, this it. Any move to limit the National Bank’s monetary policy, press forward. The central bank has been was the fi nal straw. On October 10, sev- independence would likely end western the most infl uential driver of change. eral members of Parliament submitted fi nancial aid and risk Ukraine’s relations Gontareva and Since taking the reins two years ago, a draft law that would effectively strip with its creditors. Gontareva has closed nearly 90 insolvent the central bank of its independence and It’s clear that Ukraine’s fi nancial sector the central bank banks, half of the total in Ukraine, in remove Gontareva. demands immediate attention and reform. order to clean up the system of “zombie In Parliament, Gontareva’s opponents But it is also apparent that Ukraine’s have stabilized banks” engaged in related-party lending are easily identifi able: Chairman of the class of oligarchs will fi ght the necessary Any move to limit and money laundering, and to recover Radical Party Oleh Lyashko and Deputy change at every turn. Unfortunately, the the hryvnia and at least some of the depositors’ assets. Chairman of the Radical Party Viktor obstinacy of the elite can often escalate the National Thanks to a responsible monetary Galasiuk sponsored the draft law. In a from rhetoric to genuine threats of phys- increased the policy, Gontareva and the central bank mocking gesture, when Ukrainian offi - ical harm. Ukraine can be the European Bank’s have stabilized the hryvnia and increased cials were asked to make public their equivalent of the Wild West. And when country’s foreign the country’s foreign reserves from an incomes and assets, Lyashko listed one those threats are directed at a specifi c independence all-time low of USD 5 billion in February pitchfork, along with a bounty of real individual like Gontareva, one can be reserves from an 2015 to USD 16 billion today. Ukraine’s estate assets and close to USD 1 million sure it is because her reforms are mak- would likely end 12 biggest banks have rallied in support in cash. While both Lyashko and Gala- ing it harder for the corrupt oligarchs to all-time low of $5 of Gontareva’s actions. Internationally, siuk claim the draft law was born out of continue looting the country. western fi nancial the National Bank of Ukraine has been populism, it is in fact a thinly veiled For Ukraine to emerge as a prosperous billion in February hailed as a standout success story in attempt to weaken the central bank and nation, Western-style reform is needed. aid and risk reforming the country’s fi nancial sector. strengthen the hand of the kleptocracy. The best vehicle for reform at this stage 2015 to $16 It has received support from the Inter- Veteran observers of Ukraine understand is the National Bank under Gontareva’s Ukraine’s relations national Monetary Fund, the European that Lyashko and Galasiuk are the front leadership. billion today Union and the European Bank for Recon- men for this assault on the central bank’s Ukrainians must resist the temptation with its creditors

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TIFLIS KIS TARIFESI 7.5x6cm ING.indd 1 02/11/16 15:23 GEORGIA TODAY DECEMBER 27 - 29, 2016 BUSINESS 7 Georgian Foreign Ministry Hosts Meeting on US-Georgia Strategic Partnership

avid Zalkaliani described Minister, such successful cooperation is as “highly successful” the set to continue. recent meeting of the Peo- The sides also spoke about the challenges ple-to-People and Cultural faced by the two countries and ways to Exchange Working Group resolve them. Special attention was paid Dof the US-Georgia Strategic Partnership to the issue of strategic communications Commission. and to the possible ways of improving The Georgian Foreign Ministry hosted coordination in the strategic communica- the meeting of the Commission, which considers issues relating to co-operation in the areas of public relations, educa- tion, sport, cultural exchange, internally displaced persons and healthcare. Following the meeting, First Deputy Foreign Minister, David Zalkaliani, and USAID Assistant Administrator for We will continue Europe and Eurasia, Thomas Melia, spoke about the results of the meeting, with to invest in this Zalkaliani highlighting the implementa- tion of agreements which were signed partnership with within the framework of US Secretary of State John Kerry’s visit to Georgia in the Georgian July. “On 6 July, Georgian Prime Minister government to Giorgi Kvirikashvili and US Secretary of State John Kerry signed the Georgia- further US Memorandum on Deeper Defense and Security Cooperation, and a memo- demonstrate to the tions process, including with US support. for Georgians and this will continue to their better future lies in stronger co- randum designed to boost Georgia-US Melia then highlighted the successful be a large part of our co-operation. We operation with the United States.” cooperation in the fi eld of education. Georgian people US-Georgia co-operation within the also talked about the way our programs The Strategic Partnership Commission We also launched Growth, a new USAID framework of the Working Group, clear can broaden the links between the Geor- is the primary mechanism for organizing project, which seeks to promote eco- that their better proof of this success, he said, can be seen gian citizens living in the territory of and prioritizing the broad and deepen- nomic growth in Georgia's regions, in the increase in US foreign assistance South Ossetia and Abkhazia and about ing cooperation between the United especially those along the occupation future lies in for Georgia. the various ways we can bridge the com- States and Georgia. The Commission line. Cooperation is also very productive “The main focus of discussions was munication gap. The US assistance budget includes four bilateral working groups in the area of Health. Special mention, stronger the way the partnership between the US for Georgia increased last year and is on priority areas identifi ed in the Char- in this context, should be made of the and Georgia is benefi ting the Georgian increasing again this year. And we will ter on Strategic Partnership: democracy highly successful Hepatitis C Elimina- co-operation with people in the areas of health and educa- continue to invest in this partnership and governance; defense and security; tion Program,” Zalkaliani said. tion,” Thomas Melia said. “We discussed with the Georgian government to further economics, trade, and energy; and peo- According to the First Deputy Foreign the United States many aspects of education and training demonstrate to the Georgian people that ple-to-people and cultural exchanges. GEORGIA TODAY 8 BUSINESS DECEMBER 27 - 29, 2016 Prodware Group- Microsoft’s Leading EU Partner Enters Georgian Market Christmas Concert Culminates another Year of Successful Growth at Confl ict Divide

ounded in 1989, Prodware is a vendor the group’s customers all over the world from its and integrator of industry-specifi c and offi ce in Tbilisi. Companies served by Prodware role-tailored IT solutions for businesses. Georgia are of various size and come from differ- Specializing in ERP and CRM systems, ent industries, including Euronext, Sakata, Desmet Prodware currently serves more than Ballestra, and Michelin. 20,000F active customers internationally. Prodware Group is pleased to announce that all Prodware is Microsoft’s leading partner in Europe the services provided by the group are now avail- and a key player for the installation and manage- able for companies operating in Georgia, too. Its ment of global IT solutions and applications. Oper- team of 27 professionals will provide 24/7 services ating in 14 countries and available in over 75 through tailored to your company needs. its international partner network, Prodware is able to support a business’s aspirations for national and program (UNDP) in 2012-2016 with funds from the BY NINO GUGUNISHVILI international growth. United Nations High Commissioner for Refugees Prodware’s software development strategy is (UNHCR) and contributions from the European centered around the leading ERP platform, Micro- Union and United States Agency for International soft Dynamics, enhancing it with innovative solu- he kindergarten in Abano village is Development (USAID).The program ran in col- tions in order to fulfi l business requirements and comfortable; the building, a village laboration with the local authorities and the gov- meet the needs of specifi c industries. house, is equipped with central heat- ernment of Georgia, with a total budget of USD 1 Prodware Georgia was established in 2014 and Web: www.prodware.ge FB: /prodware.ge ing and a water supply system. It has million. has since been successfully providing services for a playroom, a bedroom and a nice yard “It’s with assistance from UNCR that the open- Twith a playground. It looks like a place where chil- ing of the kindergarten in Abano village was pos- dren seem genuinely happy, where they can feel sible,” said Ketevan Tsikhelashvili, State Minister warm and safe. of Georgia for Reconciliation and Civic Equality. The children who attend the kindergarten come “I would like to confi rm that for the next year, sup- from socially vulnerable families, some of whom port for the population living on the confl ict divide don’t even have enough fi rewood to warm their will remain a governmental priority.” houses. We were told the kindergarten is the only “We came with a package of many, many differ- place where they can receive the food and care ent interventions; we’ve rehabilitated and refur- they need. We met at least two children who don’t bished two kindergartens, trained over seventy have warm winter clothes to wear, no jumpers, farmers, we’ve established a milk collection facility coats or jackets, yet who walk from nearby villages and fruit processing center, and helped set up water in cold weather every day to come to the kinder- supply systems to assist communities living on the garten. confl ict divide to look towards a much brighter “Many of the local residents in Shida Kartli, future. Today, with the New Year celebration, it’s including children, are still struggling to overcome also a celebration of results which show that, the trauma of the 2008 confl ict. Our assistance to together with the UN, the Georgian government the region helped thousands of people to see and and Shida Kartli municipalities, we can help com- work towards long-term prospects,” said Simone munities to recover for a better future,” Shombi Wolken, UNHCR Regional representative in the Sharp, Acting Head of UNDP in Georgia, told South Caucasus. GEORGIA TODAY after the concert. Last week the UNHCR and UNDP organized a special New Year concert for the children in Abano kindergarten with the help of teachers and parents. The event saw special gifts given to each child. It was attended by Georgian government offi cials and UN representatives. Abano, one of the villages on the confl ict divide in the Shida Kartli region of Georgia, has been We’ve rehabilitated 2 receiving assistance from the United Nations since 2012. The kindergarten in the village was estab- kindergartens, trained lished in the summer of 2016 with support from UNHCR and UNDP, and serves children from two over 70 farmers, neighboring villages of Satsikhuri and Koda. It cur- rently provides day-care for approximately 24 chil- established a milk dren and is the fi rst such establishment in the area in the last 40 years. collection facility and The village of Dvani, likewise on the confl ict divide, also has a fully rehabilitated kindergarten fruit processing center, within the UNHCR/UNDP Shida Kartli assistance program that entails infrastructure and water sup- and helped set up ply rehabilitation in fi ve villages of Karapila, Sari- bari, Zadiaantkari, Sakorintlo and Dvani, technical water supply systems assistance and vocational training for farmers in milk-processing and bee-keeping, consultations, to assist communities establishment of a milk collection center in the village of Akhalubani to serve three neighboring living on the confl ict villages, and a fruit processing plant rehabilitated in Dvani. The Shida Kartli assistance initiative has been divide to look towards implemented by the United Nations Development a much brighter future GEORGIA TODAY DECEMBER 27 - 29, 2016 BUSINESS 9 Welcome to Georgia Wine Campaign Kicks Off for the Holiday Season

BY NINO GUGUNISHVILI

nterprise Georgia is welcoming tour- ists arriving to the country through any of the three international airports of Tbilisi, Batumi or Kutaisi, with a newly initiated Welcome to Georgia Ecampaign, through which all guests will receive a branded bottle of Georgian Saperavi at passport control. The etiquette of the bottle of Georgian wine from the Kakheti region will also contain infor- mation on the success of the wine-making busi- ness in Georgia. 60,000 bottles of Saperavi will be given away within the framework of the mar- keting campaign which is being run for the fi fth time this December. Saperavi Wine Bottles Magnolia 2016 Awards Best Touristic Establishments

Jeiran bejanidze BY NATIA LIPARTELIANI Irakli Baramidze Miranda Gorgiladze Irma Kalandadze agnolia 2016, a ceremony held in Zviad eliziani , saw a number of regional Ekaterine Gogiberidze tourist facilities awarded for best Arsen Romanadze service last week. Hotel chain Hil- • Institutions and private individuals: ton was named as the Best Inter- Ilia Sirabidze, Chairman of the National Food Mnational Hotel Chain in terms of service in the region, Agency Adjara while restaurant Ukrainochka was named the Best Nugzar Tsetskhladze, Head of Batumi City Hall Food Establishment. Chairman of the Government Municipal Health Service Sanitation Department of Adjara, Zurab Pataradze, awarded the winners. Khusein Sirabidze, Department of Emergency The award ceremony was attended by around Management 200 representatives of the tourism industry, gov- Leila Shaviashvili, journalist, Public Broadcaster ernmental and non-governmental sector. Overall, Adjara TV ten nominations were named: Tamar Lomadze,Admin of Facebook page Batumi • Best Hotel Chain: Hilton Batumi Zurab Sikharulidze, Director of the Directorate • Best Location Site: Coliseum Marina of Roads of Adjara • Best Food Establishment: Restaurant Uktain- Izolda Machutadze, Visiting Professor of Shota achka Rustaveli State University, Ecology Department. • Best Village-based Family Hotel: ‘Zebo’ Zabur The Department of Tourism held Magnolia 2016 Bokvadze for the second time with the aim of improving and • Best Touristic Attraction: Botanic Garden stimulating the tourism industry in the region. • Best Museum: Batumi Study of Art Museum The winners were selected based on a customer • Best Touristic Route/Sight: 1. Green Lake 2. survey done by Department of Tourism. Consumer Makhutseti research was carried out online and face-to-face • Best Tourism Agency: Adjara Tour over three months and a total of 1200 tourists/con- • Best Tour Guide: Lela Gabelia sumers were interviewed. The study also included • Best New Touristic Product: Goderdzi Resort the Trip Advisor, Booking.com and Facebook.com During the award ceremony, the Acting Chairman evaluations from tourists. of the Department of Tourism, Mamuka Berdzen- The Adjara Department of Tourism used not only ishvili, awarded certifi cates of appreciation to peo- survey results but also recommendations of rep- ple who have contributed to the region’s tourism resentatives of accommodation, catering facilities, development and promotion. transportation companies, and tour guides. The Certifi cates of Appreciation were awarded to: Department also considered the results of the • Training and Consulting Center coaches: "Recommended by the Department of Tourism’ Besik Shavishvili project in order to select the winners.