September 18 - 24, 2015

WEEKLY PUBLISHED EVERY FRIDAY www.georgiatoday.ge Price: GEL 2.50 Georgia Today 22 p. ISSUE No.784 The Sour Grapes of BUSINESS HEADLINES GeorGeorgiangian DrDreameam Georgia Today

Meets the GM of IN THIS WEEK’S ISSUE East Point Mall P.9 Confidence Matters! Georgian consumer confidence suffered a major blow at the end of 2014, in the wake of the sharp Lari depreciation. P.4 China: New Economic To free or not to free? The government weighs the ex-Mayor's constitutional rights against popular public opinion. Potential for P.12 Georgia? Russian Georgian delegation visits China to promote Silk Road ‘Infoprom’ collaboration. P.11 New Threat Interview: for Georgia Fatboy Slim Smiles High at and the EU Global Excerpts and analysis of the recently published article by Gathering Linas Linkevicius, the Foreign Minister of Lithuania. Georgia P.2 P.15

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P.4 2 SEPTEMBER 18 - 24 POLITICS ARMENIA: Ruling Party Russian ‘Infoprom’ New Threat Discloses Sargsyan’s Plans, Opposition says “NO” for Georgia and the EU By Zviad Adzinbaia By Karen Tovmasyan Linas Linkevicius, the Foreign Min- For the second consecutive day, Ar- ister of Lithuania, has published an ar- menian Parliament is talking over the ticle on euobserver.com concerning details of the new constitutional project Russia’s informational propaganda in suggested by the President, according to Europe and the possible threats. which Armenia will change its semi- The publication starts with a revela- presidential status and become a Parlia- tion highlighting a certain national day mentary Republic, with the Speaker of ones concerning the President and the during which “in one EU country which Parliament standing as the Head of State. Prime Minister remain in place. he [the minister] won’t name, Russian The project is being strongly criticized The Opposition’s arguments against uniforms marched alongside others in by the main opposition forces in the coun- Sargsyan were submitted by his ruling the celebration.” try. Republican party representatives in Par- “It was the same uniform which is On 12th September around three liament, Margarit Yesayan and Ruben currently taking part in aggression dozen non-government organizations, Hovsepian, who announced that against Ukraine. Did it look good? Was civic initiatives and parties, such as Ar- Sargsyan can’t go home after the last it picked up by European media as be- menian National Congress (the main op- presidential term expires in 2008. ing a bit strange? No. You never heard position party in the country lead by the Yesayan went further, disclosing of it,” Linkevicius says. He cites there first president of Armenia, Levon Ter- Sargsyan’s plans to stay in power even is a tendency to consider propaganda an Petrosian and Heritage party lead by after his last presidential term. exotic bug which only affects the lives Linas Linkevicius, Foreign Minister of Lithuania.Source:eu2013.lt (euobserver.com) Sargsyan’s main rival during the 2013 “Look at his biography. Why should of “people far away - in Ukraine, Geor- presidential elections Raffi a politician and statesman with such a rich gia, Russia.” urgent measures to be taken by the Eu- Hybrid Warfare in the region, in gen- Hovhannisian), signed a declaration to background stay at home after the end of “But the carefully-packaged lies are ropean Union. “We need to start think- eral. The author implies that the Rus- form a coalition, the so-called ‘NO Front,’ his tenure?” said Republican party rep- finding their ways to audiences all over ing not just what we can do for them- sian side, through state-backed informa- to oppose the constitutional change which resentative Margarit Yesayan during the Europe. It is the result of a systematic referring to non-EU eastern European tion sources, disseminates propaganda they call a ‘constitutional coup’. parliamentary debate yesterday, adding and heavily-funded campaign, and say- states- but also what can we do to pro- in Georgia and Europe, working against ‘NO Front’ representatives say the aim that “Sargsyan’s presence in the govern- ing that the West is immune because we tect ourselves?” the states and their sovereignty. of forming a coalition is to fight ment is essential for the country.” have a plethora of media outlets isn’t Linkevicius believes there is more to How can Georgia cope with this Sargsyan’s plan to establish an everlast- While the representative of opposition true” – the article reads. it than allocating money from foreign problem? What actions are needed? ing dictatorship in the country by orga- Heritage party in the parliament Zaruhi Linkevicius believes large, Russian- relations budgets. “It’s equally impor- It has long been obvious for the Geor- nizing rallies all over Armenia to disrupt Postanjyan announced: “Sargsyan should speaking portions of the EU audience, tant to ensure the transparency of fund- gian Government that Russian informa- the referendum against the state and con- be sent to prison in a manner defined by whether in the Baltic States or London, ing and ownership of media outlets tion propaganda robustly endeavors to stitution. law, instead of having an opportunity to get the Kremlin’s view first and foremost. which operate in the EU.” According to undermine Georgian sovereignty and Sargsyan, whose second presidential prolonging his rule.” “It’s the result of language limitations or the article, the ‘Kremlin mouthpieces’ mislead society through creating a nega- term is to end in April 2018, is currently Postanjyan’s ally in ‘NO Front,’ old media habits. In this sphere, media know how to register in [our] cities. tive icon of the EU and NATO in the constitutionally unable to run for a third Levon Zurabian, head of the parliament’s plurality means plural TV channels all “They put on a “Made in the EU” label, country. presidential term. The opponents of biggest opposition party announced that manipulated by one (Russian) authority.” then they begin to quietly incite hatred, It has been believed that setting cer- Sargsyan are sure the planned change of by saying “No” in the referendum, the Gazprom, the Russian energy giant, hoping no one will question what they’re tain restraints for those Russian state- constitution is aimed at avoiding this limi- citizen’s will say “NO” to the regime. is also discussed in the publication in doing because of the holy cow of free affiliated media means operating in tation and enabling him to rule the coun- The debates in Parliament are set to which Linkevicius says: “We had the speech.” Georgia would not mean any censorship, try through the position of Speaker of continue over the next few days, but the courage to confront Gazprom’s mo- Georgia Today’s Zviad Adzinbaia: as the Lithuanian Foreign Minister re- Parliament, who, according to the sug- decision about the national referendum nopoly in Europe. Now it’s time to con- Recently, Salome Samadashvili, marks above; but the opposite, Georgian gested project, will be de jure leader of will be accepted at a later date. The leader front Russia’s ‘infoprom’, which has former Georgian Ambassador to the experts, think tanks or non-governmen- the state with no constitutional limita- of the ruling Republican faction of the weaponized information in the same European Union, through the Brussels- tal organizations support the notion that tions. No article in the current draft regu- parliament, Vahram Baghdasaryan, said way the Kremlin weaponized energy based Martens Centre, published a study it is essential for the government to limit lates how the Speaker of Parliament can that he expects the referendum to take supplies.” entitled Muzzling the Bear, referring to Russian media in the country to protect be removed from his/her post while the place in December 2015. The Foreign Minister calls on some Russia’s information propaganda and its sovereignty and political stability. Georgian Government Reports Achievements and Future Plans By Steven Jones Refugees has increased by six within the Importantly, the development of framework of the United Nations. At the close political-economic relationships On September 12, the Georgian Gov- same time, ‘‘the government of Geor- with Azerbaijan, Turkey and Armenia as ernment presented a report to Parliament gia continues working in order to restore well as Black and Caspian Sea regional reviewing the government’s achieve- confidence between the populations and central Asian countries, are consid- ments and plans for the near future. separated by the war.’ ered among the key priorities for Geor- “The government has been actively European and Euro-Atlantic integra- gia which underlines the import of stra- working in terms of all priorities, such as tion, considered one of the top priori- tegic partnership with the United States. strengthening Georgia’s security and sov- ties for Georgia throughout recent years, At the same time, while normaliza- ereignty; de-occupation and restoration of was particularly emphasized in the re- tion of relations with the Russian Fed- territorial integrity; Euro-Atlantic integra- port, with a highlighted 24 countries eration for de-occupation are considered tion; deepening strategic cooperation with having already ratified the Georgia-EU a priority, recognition of the withdrawal the United States,” – the report says. Association Agreement. of the occupied territories, facts of in- According to the document, the non- Along with other issues, the imple- stallation of barbed wires and permanent recognition policy of Georgia has been mentation of the NATO-Georgia sub- relocation of the so-called border demar- successful: ‘no countries have [so far] rec- stantial package [received at the NATO cation signposts are not forgotten. ognized the independence of Abkhazia and Wales Summit in September 2014], also It is notable that the Georgian Gov- Tskhinvali region in 2015’. Moreover, the got a mention: “as a result, the NATO- ernment, after facing a stern reaction government emphasizes its continued dis- Georgia joint training and assessment from the citizens of Georgia over the cussion of the situation of occupied regions center has been opened.” economic shock created in the country, as well as the violation of the ceasefire Likewise, the service of Georgian has launched intensive negotiations with agreement by Russia within the frame- troops in international peace operations China to attract more investments. work of the Geneva international nego- carried out under the NATO guidance is The planned Silk Road Forum of tiations and other partner-states. also included in the document which Tbilisi in October this year is expected The report underscores that, thanks concludes that Georgia will continue to stimulate new initiatives and deepen to Georgian diplomatic efforts, the num- fighting against international terrorism cooperation with China in terms of trans- ber of supporters of the Resolution on and organized crime. port, energy, trade and human relations.

HAVE YOUR HAIR CUT AT OUR SALON AND GET HAIR DIAGNOSTIC AS A GIFT! The Ministers’ Cabinet. Source: FB page of the Government of Georgia.

4 SEPTEMBER 18 - 24 ECONOMY

The ISET Policy Institute (ISET-PI, www.iset-pi.ge) is an independent think-tank associated with the International School of Economics at TSU (ISET). Our blog carries economic analysis of current events and policies in Georgia and the South Caucasus region ranging from agriculture, to economic growth, energy, labor markets and the nexus of economics, culture and religion. Thought-provoking and fun to read, our blog posts are written by international faculty teaching at ISET and recent graduates representing the new generation of Georgian, Azerbaijani and Armenian economists. ConfConfConfidenceidenceidence MaMaMatterttertters!s!s! By Eric Livny, Maya Grigolia and SHALL WE BUCKLE UP AND Leduc and Still (2010) argue to the op- Levan Pavlenishvili ENJOY THE ROLLER posite. COASTER RIDE? Academic researchers may remain LOCAL GOVERNMENT First, we should clarify that “confi- forever divided on the relative strength ELECTIONS dence” measures, such consumer and of the causal mechanisms underlying Georgian consumer confidence suf- business indices, are not a matter of business cycles. Yet, there is no arguing fered a major blow at the end of 2014, purely academic interest. People’s per- that public perceptions and expectations in the wake of the sharp Lari deprecia- ceptions are shaped by their past and have at least some power in shaping eco- tion. Around February 2015, the Index current experiences. Yet, – and this is nomic developments. A case in point is found some support at the very low level an absolutely crucial point – perceptions the short-lived recession afflicting the of -35-30 points, and has been slightly also matter greatly for individual and US economy after Iraq’s invasion of improving since then. In July 2015, this business decisions that affect the future. Kuwait in the third quarter of 1990 (a mildly positive trend was reversed, and One’s degree of optimism (or pessi- textbook example in Olivier Blanchard’s in August, the Index dropped another 4.1 mism) affects both “microeconomic” Macroeconomics). Worried that the points to reach a new historical mini- behavior (to take a mortgage and buy United States might get involved in a mum of -38.4 points. Interestingly, this an apartment, or wait another few years; prolonged and costly war, consumers cut entire drop was driven by older respon- to invest today or tomorrow, and how down on expenditures well before the dents, those aged over 35. We will come much) and aggregage “macroeconomic” Gulf War had actually started, bringing back to this point later in the article. performance. the economy into an unexpected two- At the same time, Georgian business Economists have long recognized quarter recession. companies also appear be rattled by the that economic decisions (and out- Now, if expectations and public opin- Lari depreciation. Coming with a lag, af- comes) are not independent of percep- ion matter, more attention should be paid ter seven months during which consumer tions. Too much cautiousness on the to those who shape them: policymakers, demand and sales have been declining, part of, say, bankers can either deepen politicians and media. Georgian Business Confidence Index a downturn, or put a break on economic (BCI) took a major hit in the second quar- growth. For this reason, consumer and POLITICS, MEDIA, AND THE ter of 2015. The BCI dropped a whopping business confidence are part and par- REAL ECONOMY 24.5 points to an all-time low of 3.6 on a cel of various business cycle theories Our expectations are shaped by our scale of [-100; 100] points. Conducted in in economics. Business confidence is personal experiences (e.g. our sales per- April 2015, the survey, which included 168 considered a supply side factor, affect- formance and the treatment we get at the firms, suggested that business confidence ing investment, production and pricing hands of the local tax inspector) as well is very much about control of media. 14 points. There may be many reasons declined on all measures, across all sec- decisions. Likewise, consumer confi- as by what we hear about other devel- Unlike oligarchies and totalitarian re- for this divergence in perceptions. At tors, and for all firm sizes. Moreover, a dence is a demand factor, affecting opments in the economy, developments gimes, a democratic polity presupposes least one of them, however, is likely be deep sense of pessimism was reflected in people’s spending. (In Georgia, domes- of which we have no first-hand knowl- not only competitive elections but also related to the much higher TV-depen- business perceptions concerning current tic consumers make up about 86% of edge. Few Georgians have an intimate competitive and diverse media, allow- dence of older Georgians. It is quite performance as well as expectations con- total demand faced by Georgian pro- understanding of the mandate and pro- ing people sufficient choice of (biased) likely that the older generation is more cerning the future. ducers, hence their importance for the cedures used by the National Bank of information sources. Just how competi- affected by the televised hysteria sur- The third quarter business confidence economy.) By affecting both supply and Georgia, or see any direct benefits re- tive are Georgian media is a matter for rounding the ups and downs of the Lari data drew a much rosier picture. About demand conditions, business and con- lated to, say, Georgia’s Association scrutiny by Georgian media experts, not and the supposed “failure” of the Na- one half of all 211 surveyed firms re- sumer confidence ultimately impact all Agreement with the European Union. economists. What we do observe in our tional Bank of Georgia to maintain ex- ported going through some difficulties macroeconomic variables: the level of Likewise, few Georgian consumers are data, however, is that Georgian consum- change rate stability. in Q2 (reflected in low sales, turnover income, prices, and employment, fully informed about (or see any imme- ers’ perceptions vary quite sharply de- As Georgia enters an important elec- or production numbers), confirming among others. diate benefits in) the continuous im- pending on the type of media to which tions year, we are likely to see more and what we have already known from our Given that changes in perceptions, as provement of Georgia’s sea, air, rail and they are exposed. more political bickering and mutual ac- previous survey. Yet, businesses are once measured by confidence surveys, are road transport instfastructure. Here is Whereas all Georgian consumers cusations that do little to improve again quite a bit more optimistic when both a cause and effect of real economic where the media (mostly TV, but, in- (and businesses) were equally affected anybody’s confidence in Georgian state- it comes to the future. Business expec- developments, the academic literature creasingly, social networks and online by the sharp Lari devaluation in late hood, its economy and politics. What tations went up by 30 index points, al- abounds with conflicting empirical evi- news portals) come into play. The me- 2014, over the past 6 months, we ob- could help the Georgian economy at a most fully compensating for the loss of dence on whether it is confidence that dia are in the business of filtering, re- serve a slow but steady improvement in time like that is sober economic analy- confidence in Q2 2015. drives the business cycles or the other packaging and amplifying political mes- the confidence of younger consumers. sis, open and professional discussion of What can we learn from the recent way around. Some authors, such as sages. They (and their owners and edi- In August 2015, the CCI for the younger available options, and dialog among the ups and downs in the consumer and Salmond (2009) argue that confidence tors) can choose how much air time population (below 35) climbed to -30.3 various parties. Unfortunately, little of business confidence indices? And, more measures are over-rated as a causal fac- should be devoted to positive as points (up 1.2 points). The opposite this will happen in the coming 11 importantly, what shall we (as well as tor, and tend to over-estimate the impact oppposed to negative news, and how to movement was recorded for those above months, limiting the chances for a quick Georgia’s policymakers and politicians) of politics and media (major drivers of present information to the public. 35, bringing the gap in consumer confi- recovery in expectations and, conse- do about them? public perceptions). Others, such as The political process in any system dence between these two age groups to quently, economics growth.

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

6 SEPTEMBER 18 - 24 ECONOMY

The Galt & Taggart Research team comprises Georgian and Azerbaijani finance 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 fixed income corporate research. For free access to Galt & Taggart Research, please visit gtresearch.ge or contact us at [email protected]. FDI: Important Source of Growth Financing By Alim Hasanov value added in tourism, likely contrib- years has validated the soundness of uting significantly to the necessary ca- positioning the country as a regional Georgia continues to attract FDI de- pacity expansion for hosting the increas- hub. It is crucial that further efforts are spite the uncertainties in emerging mar- ing number of tourists. Investments in invested in this direction to keep FDI kets. FDI surged in 2014 to US$ 1.8bn, transport and communication are also far flowing. a record high since 2007, boosted by above average, resulting in a significant While FDI was among the major investments in transport and communi- increase in the country’s transit capac- sources of growth financing in Georgia, cation (US$ 433.7mn, up 209.5%), con- ity. Transit accounted for 65% of cross- buildup of the nation’s non-tangible as- struction (US$ 316.6mn, up 535.1%), border road and rail shipments and 95% sets, such as ease of doing business and and manufacturing (US$ 205.4mn, up of pipeline shipments in 2014. More- institutional development, has been in- 105.9%). The upward trend has persisted over, Georgia has already become a re- dispensable in attracting FDI. Pursuing into 2015, with total FDI increasing gional energy transit corridor with ap- further development in that direction is 4.8% y/y in 1H15. proximately 1.6% of the world’s oil pro- key to attracting new investors, further FDI is considered an important duction and diversified gas supply pass- improving productivity, and increasing source of growth financing in countries ing through the country. The attractive- the domestic capacity of export-gener- with inadequate domestic savings. It was ness of these sectors for FDI over the ating sectors. one of the main factors supporting the 6.3% average annual growth rate in Georgia from 2003 to 2014. More im- portantly, this growth was driven mainly capital goods, which are, in turn, im- output is laying ground for enhanced by productivity gains. According to the ported. FDI that drives capital goods export potential (both in goods and ser- World Bank calculations, which cover imports can be considered more benefi- vices) in the future. the period from 1999 to 2012, produc- cial. Foreign investors can buy existing Service exports hold great promise tivity gains accounted for 66% of enterprises or build new ones. The lat- for Georgia, which has been position- growth. FDI was likely a key element ter requires additional capital goods and ing itself as a regional hub for tourism, in efficiency improvement as it brings naturally expands the output capacity of transport, communication, and financial not only financial resources, but also the country, laying solid ground for fu- intermediation, among other services. In essential know how. ture growth. terms of tourism, Georgia has already At the same time, FDI has been driv- As long as FDI is expanding the eco- reached new heights with the number of ing imports, contributing significantly to nomic output capacity of the country, the foreign arrivals increasing from 560,000 the current account deficit. As FDI in- associated external deficit is not a threat in 2005 to 5.5 million in 2014. Past data creased in 2014, the current account since (1) a drop in FDI immediately re- can shed light on FDI’s potential role in deficit widened to 9.7% of GDP from sults in a corresponding reduction in the this achievement. While FDI to GDP 5.7% in 2013. A significant share of FDI deficit, ruling out concerns for external was on average 12.7% from 2007 to is directed towards the acquisition of financing needs; and (2) expansion of 2009, FDI in tourism was 66.9% of the POLITICS New Foreign Minister: We Cannot Russian Delegation to Attend OSCE Parliamentary Forget Abashidze-Karasin Format Georgia’s new Foreign Minister, ary importance,” the new Minister stated. Karasin format should be abolished.” Assembly in Tbilisi Giorgi Kvirikashvili, has said the resto- According to Kvirikashvili, humani- The dialogue format set up after the ration of Georgian territorial integrity tarian and economic issues have been 2012 elections had the Georgian Prime will be his main goal as the leader of discussed within the Abashidze-Karasin Minister’s special representative, Zurab the structure. format. He said “from my point of view, Abashidze, meet with Russia’s Deputy Kvirikashvili believes in standing it is impossible to expand the format as Foreign Minister, Gregory Karasin. The against the ongoing occupation of there are political issues beyond it. The format received heavy criticism from the Georgia’s territory. He also believes that Geneva format is for political discus- Georgian public for apparently conced- achieving a dialogue between Georgia sions, which need to be maintained as ing Georgian interests, as Russia cur- and Russia is necessary. He has stated, effectively as possible.” rently occupies 20% of Georgian sover- however, that this dialogue cannot be The Minister believes communica- eign territory. At time of print, Russian expanded past mere dialogue,. tion with Georgia’s most powerful op- forces continue their creeping occupa- “For a country with violated territo- ponent is more important than leaving tion in the Shida Kartli region, where a rial integrity and invasion problems, the it alone, stating: “Therefore, I cannot number of Georgian citizens have been foreign policy will never be of second- accept the criticism that the Abashidze- kidnapped by occupation forces.

Sergey Narishkin, the Russian Par- quently, in Tbilisi. liamentary Speaker, has said Russia According to the speaker, the Parlia- plans to send a delegation to participate mentary Assembly can considerably in an OSCE Parliamentary Assembly contribute to resolving the socio-politi- session in Tbilisi in summer 2016. cal crisis in Ukraine. While meeting with the head of the The 25th Parliamentary Assembly OSCE, Narishkin confirmed that the session from the Organization for Se- Russian delegation plans to be actively curity and Cooperation in Europe involved in the Parliamentary Assem- (OSCE) will be held in Tbilisi in sum- bly’s session in Vienna and, subse- mer 2016.

Handcrafted Georgian natural wines and tapas style food 6, Erekle II str (old town) 0322 93 21 21 SEPTEMBER 18 - 24 Business Partnership Fund Every Wednesday Interview with Georgian Tapas 20% off on special Launches Professor Menu at g.Vino Georgian artisan wine! Construction Works for Nenskra HPP Yongjun Huang 0322 93 21 21 fb: g.vinotbilisi 6, Erekle II str (old town) P.10 P.11 Georgia Today Meets the GM of East Point Mall By Meri Taliashvili open at East Point shortly and by the end of the year Carrefour hypermarket and The 85, 000 m square international unique children’s entertainment center standard shopping mall, East Point, Focus-Mocus will join the list. Geor- opened on the outskirts of Tbilisi this gia Today met Oleg Pavlov, the top man- week, making it the largest shopping and ager of East Point, to interview him entertainment center in the city. You’ll about the center and his expectations. find your favorite food venues Mc- Q: Mr. Oleg, what should the Geor- Donalds and Dunkin Donuts alongside gians expect from the center? a cinema hall, the first IMAX cinema in A: The Georgian people should ex- Georgia, 12 professional bowling lanes pect it to be a destination that works for with attached café and restaurant, the all the family. You wake up in the morn- biggest Massimo Dutti, Zara, Mango, ing, you come here: you have breakfast Stradivarius and Bershka stores, and the here, a cup of coffee somewhere in cof- first Do It Yourself (DIY) hypermarket, fee shops, you can shop in clothing Domino, offering everything you need shops, children can entertain themselves for home repairs. Brands De Facto, Glo- in the children’s center, young people ria Jean’s, and Inglot are expected to can do all kinds of activities downstairs, the whole family can go and watch a movie, then you can have dinner at a restaurant. You can spend the whole day here. There’s something for everyone. That was our idea. And over time we hundred million USD and we have ac- (Tbilisi Mall? Is East Point truly so omy does, the better we will do. Coun- will make sure that there is more and quired additional land around it to al- unique? tries neighboring Georgia don’t have a more for people to experience in this low us to continue building as needed. A: Firstly, the only modern shopping good economy, yet such centers seems center. What opened today is just half We’ll continue to reinvest in this place. mall (Tbilisi Mall) is in Digomi and so to function very well. Nobody can pre- what it is going be in four or five months. Three thousand people are employed we are accommodating different dis- dict the future but this is a modern city Q: Is the Georgian economic pic- here at present and in the near future tricts. Secondly, what we have here is and more retail opportunities are appear- ture favorable for you? we’ll be creating even more employ- something nobody has today. Even af- ing weekly. A: When we came here five years ment as we generate more demand. Ev- ter years it will still be incomparable. A The biggest difficulty from the be- ago, there was nothing. I think that with ery retailer that invests in this will ex- combination of shopping and fashion is ginning was to make people believe in this center the whole of Tbilisi will come pand together with us. just here. Our IMAX is unique. Carre- what we were saying we’d do. There alive. It will be a tourist destination, I think we will be a good example of four is going to be the largest supermar- were so many failed projects here- in- people will fly from different places just what can be done. We are very im- ket and it is also will reflect on our im- cluding several big developments, some to see this area. That will be beneficial pressed with the Georgian government age. The cinema is the largest in the of whom had promised but then failed in every respect. This is the biggest mall for supporting us so professionally. city… everything is unique. Our growth to deliver on their promises. We faced a not only in the country but also in the Q: How will you manage to com- depends on the growth of Georgian lot of skepticism but we have done what Oleg Pavlov, East Point GM. region. This project in is worth over one pete with the other shopping mall economy in general. The better the econ- we promised.

ProCredit Bank Offers Higher Interest Rates on Dunkin’ Donuts Continues to Expand Lari Term Deposits By Beqa Kirtava overnight success that the customers ate ues to bring more and more restaurants trict of Vazisubani. This marks as the In order to support and promote sav- the products out of stock within 7 days to different parts of the country. brands 13th restaurant in Georgia and ings in the national currency, we have in- The very first Dunkin’ Donuts (DD) of the launch. Eight months later, the On September 15, 2015 a brand new Wissol Group is set to bring 7 more by creased the interest rate on term deposits. restaurant was opened in Tbilisi on Jan- company seems to show no signs of DD location was opened in the trade the end of the year, employing over 200 From September 9, for any term de- uary 13, 2015 and turned out be such an slowing down as Wissol Group contin- center of “Smart” in the 2nd micro dis- people. posit opened in GEL, our customers will The opening ceremony was attend- receive 1.5% more interest. This applies ed by the Vice-Mayor of Tbilisi, Irakli to both private individuals and legal enti- Lekvinadze, the President of Wissol ties. Group, Soso Phkhakadze and the Inter- We have increased the interest rate on national Business Development Manag- term deposits up to a maximum of 9.25%. er of Dunkin’ Donuts, John Rollo. At the opening of a Savings Plan for the “It’s a huge honor for Wissol Group maximum term, 8.75% will accrue on it. that after three years of negotiations we ProCredit Bank is also offering improved have managed to reach an agreement conditions for its young savers with the with one of the biggest and truly leg- maximum interest rate on Child Deposits endary brands of the US – Dunkin’ Do- now 9.25%. nuts. These restaurants have become ProCredit Bank has been promoting the everybody’s favorite gathering places in development of a savings culture in Geor- an extremely short period of time and gia for many years. We are actively work- we are very happy that the residents of ing to communicate the importance and Vazisubani will now have the chance to benefits of savings to the public. The bank taste both the deserts and the sandwich- hopes that the increased interest rates on es of the brand,” said Soso Phkhakadze. term deposits will be an incentive for cus- The “Smart” trade center, opened tomers to save and earn more interest on back in 2011, covers an area of more their savings. than 2000 m2 and includes numerous More detailed information about new types of shops, alongside a pharmacy interest rates on deposits is available on and a bank, to ensure a maximally com- our website: www.procreditbank.ge. fortable environment for customers. Wissol Group hopes that the opening of Dunkin’ Donuts will attract event more Irakli Lekvinadze, Soso Phkhakadze and John Rollo opening the new location of Dunkin’ Donuts people to the place. 10 SEPTEMBER 18 - 24 BUSINESS Partnership Fund Launches Construction Works for Nenskra HPP HotelHotelHotelHotel SympatiaSympatiaSympatiaSympatia

4, V. Daraselia Str. Tbilisi, Georgia

Tel: (995 32) 2 99 55 88, 2 37 05 90 Tel./Fax: (995 32) 2 37 62 63 Hotel’s network www.sympatia.ge “Sympatia” E-mail: [email protected] Car Rent The Partnership Fund, to- The ground-breaking founda- of the most important issues about The 280 MW Nenskra HPP gether with Korean K-Water, has tion ceremony in Svaneti was implementation of this USD 1 bln project will be implemented by launched construction works for attended by Irakli Gharibashvili, cost project is that after 35 years the Partnership Fund and K-Wa- Tel: 599 16 16 70 a Nenskra Hydro Power Plant Prime Minister of Georgia, as of operation, the HPP will be ter on the river Enguri in upper (HPP) in Svaneti, Georgia’s well as Kakhi Kaladze, Vice-Pre- handed over to Georgia free of Svaneti. The HPP’s potential mountainous region. Before con- mier and Energy Minister of charge and without any terms,” capacity will be 1.2 b kwt/h. The from 35 euro per day struction starts, Salini Impregi- Georgia, Government Officials, Kovzanadze said. plant is expected to begin pro- lo, an Italian company is to be- Ambassadors of Korean Repub- Gyewoon Choi, President of ducing electricity in 2019 while gin preparation works. lic and Italy, and top manage- K-Water, who came to Georgia the project will be completed by The preparatory works envi- ment from K-Water and Salini specifically for the foundation 2021. Tours to all direc- sion rehabilitation of the road Impregilo. ceremony, said that his compa- The European Bank for Re- tions of Georgia leading to the construction site According to Irakli Kovza- ny will do its best to make the construction and Development as well as delivery of the con- nadze, Executive Director of the project a success. “I expect that (EBRD), Asian Development (with driver and struction vehicles. Construction Partnership Fund, Nenskra HPP Korea and Georgia can develop Bank (ADB) and Korea Exim- Guide) for 4 per- works will be launched by com- will be the largest HPP construct- the mutual relation of economic bank are also involved in this son from 40 euro. pany Salini Impregilo in 2016, ed since Georgia gained indepen- cooperation through completing USD 1 billion project and will Nissan pathfinder – however the construction permit dence. He highlighted that that the the construction and operation of provide financing for it. The 2004, 4X4, AT will be issued by the end of Oc- success comes after a long and this project successfully,” he Fund’s advisor is International tober, 2015. hard period of negotiations. “One said. Financial Corporation (IFC). Kakheti to Grow Pistachio Nuts Iormuganlo village in Kkahe- Pistachio production could ti region started to cultivate pis- bring considerable economic tachio saplings, reported BPI, an profits to Georgia – it is the per- informational-analytical portal, fect plant for erosion control in Mercedes-Benz Viano – 2004 Toyota RAV 4 – 2000, adding that revitalization of the drought areas meaning it can 4X4, AT pistachio is very important as its help prevent erosion in prob- price on the international market lematic regions of the country. exceeds the price of walnuts, Moreover, its fruit has great hazelnuts and other nuts. More- properties for health, pharma- over, its market is more stable ceutical, and homeopathy pur- and the price rarely falls. poses. Chinese Company Considers Construction of New Highway in Georgia One of the largest Chinese Bank, which finances the major- Ministry of Infrastructure and relations with China and noted construction companies, Zhuhai ity of China’s infrastructural con- Ministry of Economy and Sus- that the country strives to be Da Heng Qin Company Limit- structions. During his visit to chi- tainable Development. China’s main partner in the re- ed, may start a new highway na, PM Irakli Garibashvili dis- According to Garibashvili, gion. project in Georgia, with an esti- cussed bringing a group of spe- the project is of strategic impor- The delegation also discussed mated $1 billion investment. cialists to Georgia in order to dis- tance and ensured the company the Anaklia Port project, as the The top ten construction com- cuss further collaboration with the of his full support once the de- China Development Bank has panies will work on the project Administration of the Govern- tails are specified. He also spoke expressed interest in participating with the China Development ment, and representatives of the about strengthening Georgia’s in the construction of the port.

Georgian Prime Minister Garibashvili on his recent visit to China. ECONOMY SEPTEMBER 18 - 24 11 China: New Economic Interview with Professor Yongjun Huang Potential for Georgia? By Katie Ruth Davies gia with this cultural exchange pub- lishing initiative. People in China don’t ship with China, one of the largest econ- Georgia Today met Professor Yong- know about Gori Stalin hometown- omies in the world. Intensifying rela- jun Huang, CEO of Chinese President vaguely associate Georgia with it. We tions between the two countries has been Xi Jin-Ping’s Thought and Study Center, expect many will come. Particularly broadly discussed in the past. who came to Georgia last week to pro- from south china. The climate here will Both sides referred to the importance mote a mutual publishing project between be more comfortable for them that of the “Tbilisi Silk Road Forum,” es- Georgia and China. We met him in the some European countries, particular- tablished following the Georgian Prime cozy reception of Rooms hotel, Tbilisi. ly those from southern China. Minister’s new initiative. According to The interview was conducted with the Q: What trade potential do you sources, high-ranking Chinese officials help of his assistant and translator. see other than publishing? will be visiting Tbilisi in October. Q: What kind of collaboration A: Natural resources. The China Notably, trade flow between the two have you come here to achieve? National Development Bank is inter- countries increased by 28% in 2014, A: We established Georgian Culture ested in mining and exploring Geor- making China one of the closest eco- Press Ltd, dedicated to the publishing gia’s many natural resources. nomic partners for Georgia. of culturally interesting material be- Q: Has your visit here been suc- Giorgi Kvirikashvili Georgia’s For- tween Georgia and China. We want to cessful? eign Minister stated the Georgian dele- translate Georgian and Chinese litera- A: When I return, I’ll be meeting gation’s visit to China was very ture- fiction, non-fiction, prestigious with the senior officials of the Culture successful. “The Chinese side expressed works, official papers, speeches... Department to discuss mutual transla- readiness to carry out large investments Q: Did you decide on this project tions of Georgian and Chinese. With in Georgia. The PM put an emphasis on as your own inititative? an exchange in literature two people the significance of the region within the A: Actually, the Chinese Prime Min- can understand each other more close- framework of the new project, which ister asked me to come as part of the ly and quickly. This is good. implies regeneration of the Silk Road,” works to renew Silk Road trade. The Silk Profile: PROF. YONGJUN HUA- Kvirikashvili said, adding that China Road covers land and sea and Georgia NG, CEO of Chinese President Xi Jin- will support Chinese companies wish- is a very important part of that transit Ping’s Thought and Study Center, has ing to take part in the project. line. The President of China announced been presented with the Grassroot Dip- The Georgian Government Admin- his wish to renew the fellowship of Silk lomat “Certificate of Excellence” for istration also announced that a Mem- Road collaboration with 50 more coun- his work with the President of China orandum of Cooperation was signed tries along the traditional Silk Road. and academic excellence in internation- in Dalian, China, where PM Garibash- Q: How well do the Chinese peo- al culture and diplomacy. vili met with representatives of the ple know Georgia and its culture? Professor Huang is an ambassador Dalian Locomotive & Rolling Stock A: The majority know it as ‘Stalin’s for the vision and future focus of Pres- Co., Ltd. CRRC Group, the largest country’. Yet they know nothing of the ident Xi Jin-Ping’s thoughts for gov- Chinese company in the field of loco- Stalin Museum in Gori. We expect to erning China, and to bring change for motive industry, expressing hope that encourage many Chinese to visit Geor- a better world. the cooperation will further develop in the future. The Memorandum is aimed at estab- lishing a joint enterprise in Georgia, which will produce locomotive engines, Prime Minister Garibashvili holds meetings in China. Facebook/PM diesel generators, subway trains, elec- By Steven Jones is expected to be able to considerably tric trains, etc. and will be oriented to increase trade between China and Geor- post-Soviet countries, including Iran, Earlier this week a Georgian delega- gia. Moreover, the project can assist Turkey and Europe in a broader scope. tion led by Prime Minister of Georgia, Georgia, which enjoys a key geograph- It seems that China in terms of ex- Irakli Garibashvili, visited China to meet ic location between the west and east, port potential for Georgia as well as a with high-ranking officials and discuss by allowing it to make use of its trade considerable investment opportunity can potential close ties between the two corridor potential. positively add to Georgia’s recessing countries. The governmental administration has economy, which has fallen prey to the The core goal of the visit was to boost said Georgia will be the first country in complex international economic context the idea of the historical Silk Road which the region to try deepening its relation- and local instabilities. What Higher US Interest Rates Mean for the Lari By Joseph Larsen among economists. Some argue that the high inflation is still a distant threat. Renminbi, and even Laris. currencies, with an example being the US economy is growing quickly enough Year-on-year inflation stood at only 1.8 Former US Treasury Secretary Lar- Lari. Georgia’s currency has already had On September 16-17 the Federal that inflation now poses a larger threat percent at the end of July. Furthermore, ry Summers warned of the risk of rais- a rough year, falling from GEL1.75/ Open Markets Committee (FOMC) – the than unemployment. The unemploy- uncertainty in the global economy ing rates in an op-ed last month. “At this USD1 to GEL2.43/USD1 since Novem- key decision-making body within the ment rate in August 2015 stood at 5.1 means that an interest rate hike could moment of fragility, raising rates risks ber 2014. US Federal Reserve Bank – convened percent, its lowest since 2008. create a host of problems. will tip some part of the financial sys- If the outcome of this week’s FOMC in Washington DC for its sixth meeting Timothy Kane, an economist at the The Euro, Ruble and Chinese Ren- tem into crisis, with unpredictable and meeting is higher interest rates and a of the year. The FOMC has met every right-of-center Hoover Institution, is in minbi have each fallen against the Dol- dangerous results,” he wrote. stronger Dollar, could we see the Lari five to eight weeks for years, but this favor of higher rates. “We’re so over- lar during the past year. Raising interest drop even further? instance holds special significance. stimulating when the U.S. economy is rates could push these currencies down WHAT THIS MEANS A small drop in the Lari’s value The key item on the agenda is the strengthening,” he said. “I’m afraid if even more, because higher rates make FOR THE LARI against the Dollar would be difficult to question of raising interest rates, some- they don’t hike rates now, they’ll find it more profitable for international in- As the world’s most commonly used avoid. However, the change in value thing the FOMC hasn’t done since 2006. themselves in a bind of overheating ter- vestors to put their money in the US and traded currency, a small change in may not be particularly large. As ISET The Federal Reserve has the dual man- ritory for the labor market.” economy. More investors buying Dol- the value of the US Dollar can cause demonstrated in a blog post last week, date of maintaining price stability and full Many others, however, argue that lars means fewer buying Euros, Rubles, major changes in the values of smaller the performance of the Lari is more de- employment (in practice that usually pendent on the Euro and Ruble than the means inflation of around 2 percent and Dollar. Because the EU and Russia are an unemployment rate under 4 percent). Georgia’s two largest trading partners Following the 2008 financial meltdown and main sources of remittances, a and subsequent recession, the Fed decid- weaker Euro and Ruble mean less for- ed that high unemployment was a much eign currency is flowing into Georgia, greater threat than rampant inflation, and pushing the Lari’s value downward. turned to an “easy money” policy. This leads us to believe that the Lari’s The Fed flooded financial markets performance doesn’t have much to do with cash in two ways. The first, keep- with Federal Reserve policy – unless a ing interest rates near zero, was meant rate hike puts the global economy into a to encourage lending by making it less tailspin, as some economists are warn- profitable for banks to hold reserves. The ing. However, many Georgian house- second, “quantitative easing” (fancy talk holds will be negatively effected, even for printing money to buy bonds from if the Dollar gains only a few percent- private investors), was intended to en- age points on the Lari. courage borrowing by increasing the That’s because of “Dollarization” in amount of cash banks had to lend. the Georgian economy. Roughly 60 per- The Fed ended the quantitative eas- cent of bank loans in Georgia are de- ing program in October 2014, and now nominated in USD. For that reason, all it’s debating doing away with the other of us who get paid in Lari but hold debts half of the easy money policy. The “lift- in USD watched this weeks’s FOMC ing-off” of interest rates is controversial meeting closely. 12 SEPTEMBER 18 - 24 POLITICS

OP-ED TThehe SourSour GrGraapespes ofof GeorGeorgiangian DrDreameam

By Zaza Jgharkava front. Now everything depends on the leased but then will quickly be sent back “taste” of the government. to prison. Mamuka Gamkrelidze, former In Batumi, tomatoes and eggs were The views of the government support- Ambassador of Georgia to China writes thrown at the house of the Head of the ers are shared on social networks, with on his Facebook page that the govern- Constitutional Court as people protested comments indicating early “joy” and the ment will not be able to release Ugulava. against the decision of the Constitutional expectation that the government will not “Releasing him and leaving him outside Court with regards to the release of ex- release Gigi Ugulava. “Do not worry; prison means digging their own grave. Tbilisi mayor, Gigi Ugulava. So far, this they will not release him. Ugulava will The only way out is releasing him and is how the government reacts to the ver- spend several more years in prison! It is then putting him back on the grounds of dict of the country’s highest judicial already decided and no one can change final sentencing. But the final sentence body. However, sooner or later it will the decision,” – writes journalist Bondo needs a proven crime, which currently have to take a more serious decision. Mdzinarashvili, pro-governmental party cannot be proved,” Gamkrelidze writes. So, what should the government do Patriotic Alliance figure. Putting people to prison on ungrounded with the decision of the Constitutional Former opponent of the United Na- charges is not a new practice for the gov- Court to release the former Mayor of tional Movement and current political ernment. This is why this assumption of Tbilisi from initial imprisonment? As expert, Valeri Gelbakhiani, says that the Gamkrelidze is not pointless. people in Georgia would say, the Geor- government has no other choice but to Before the government decides gian Dream is currently in a situation release Gigi Ugulava from prison. “Oth- whether to release Ugulava or not, the when execution and non-execution of the erwise, it will result in violence and a phrase of the former interior minister court decision can both lead to headaches. Gigi Ugulava, former Tbilisi Mayor, not forgotten. The government must decide whether violation of the Constitution. Violation Vano Merabishvili said two years before Add to this the so-called ‘rebranding’ to allow his release from prison or not. of the Constitution gives grounds for im- at a court hearing becomes very topical: within the Georgian Dream, not to say Ugulava stands on a lower rung than po- discretization of Ugulava. His achieve- peachment and in that the United Na- “A wan period is starting in Georgia…” anything about the wine-makers in litical prisoners, former defense minis- ment during the mayor’s term only tional Movement (UNM) will have the Of course, the key word is ‘wan’ here. Gurjaani shaking the economical vines ter Bachi Akhalaia and former interior added to it. During his term, Tbilisi support of the international community,” However, today we can directly say that with their Grape Revolution. In brief, the minister Vano Merabishvili. The ‘Drea- turned from a provincial city into the Gelbakhiani says. He adds that the UNM the ‘wan’ period is ‘jamahery’, ‘jama- government is surrounded by a number mers’ are certain that both Akhalaia and most modern megapolis in the region. has achieved discretization of the gov- hery’ of the Georgian Dream. Although of problems, but as the development of Merabishvili were ‘eating the flesh of The confused government is facing this ernment, i.e. made it clear that the gov- ‘jamahery’ means the rule of the masses, events shows, the issue of former mayor innocent prisoners’ for nine years dilemma today: release the highly-rated ernment is violating said Constitution. in fact we all remember what it meant Ugulava is still the most important. whereas Gigi Ugulava is ‘only involved’ opponent and have problems on the po- It is clear from comments how big a di- and whose rule it meant in the recent past. On the un-concealed hatred scale of in ‘corruption’. Based on this reality, the litical front or put him back in prison lemma the government is facing. UNM We should also remember how its initia- Georgian Dream, the former mayor government could not achieve public and have problems on the diplomatic supporters fear that Ugulava will be re- tor ended his political career. ECONOMY Dechert OnPoint: Recent Developments in Relation to Georgia-EU Free Trade Dechert Georgia, through the con- 27 June 2014 – has the potential to in- to be granted the fulfillment of several tribution of partners Archil Giorgadze crease bilateral trade turnover in a sig- criteria might be requested. The Certifi- and Nicola Mariani, joined by senior as- nificant fashion. In the first six months cate of Origin is issued by the customs sociates Ruslan Akhalaia and Irakli following the signing of the DCFTA, department of the Georgian Revenue Sokolovski, as well as Ana Kostava and Georgian exports to the EU increased by Service. Ana Kochiashvili, is partnering with 12% and the export of certain Georgian Georgia Today on a regular section of products doubled or even tripled. This NON-TARIFF BARRIERS the paper to provide updated informa- week’s edition of Dechert OnPoint pro- The elimination of non-tariff barriers tion regarding significant legal changes vides an overview of the DCFTA and its is also an important component of the and developments in Georgia. In par- implications for Georgian businesses. DCFTA. Examples of non-tariff barriers ticular, we will highlight significant is- The DCFTA introduced a preferential include the following: technical regula- sues which may impact businesses op- trade regime granting bilateral parties tions; standards; conformity assessment erating in Georgia. special advantages above those enjoyed procedures; and sanitary and Dechert’s Tbilisi office combines lo- by other trade partners. The Free Trade phytosanitary measures, etc. cal service and full corporate, tax and Area (the “FTA”) is expected to decrease Under the DCFTA, the parties under- finance support with the global knowl- trade barriers for Georgian products and take to avoid unnecessary divergence of edge that comes with being part of a augment their competitiveness in the EU technical barriers to trade. Sanitary and worldwide legal practice. market. In contrast to other free trade phytosanitary measures aim to facilitate Dechert Georgia is the Tbilisi branch agreements, the DCFTA envisages liber- bilateral trade in animals and plants as of Dechert LLP, an international law firm alization not only of the market for goods well as products of animal and plant ori- that focuses on core transactional and but also of the market for services. The gin, while ensuring that standards for litigation practices, providing world- DCFTA includes a wide range of spheres health protection are maintained. Imple- class services to major corporations, fi- (competition policy, intellectual property, From www.triua.com mentation of sanitary and phytosanitary nancial institutions and private funds financial services and others) and allows amples of goods subject to the Entry Price Protocol 1 of the AA (the “EU Ori- measures will allow Georgia to improve worldwide. With more than 900 Lawyers Georgia to take advantage of three of the include tomatoes, cucumbers, sweet or- gin Rules”) sets out the relevant provi- its animal welfare situation as well as in our global practice groups working in four freedoms of the EU single market: anges, tangerines, table grapes and sions concerning the granting of the cer- protect the country from unhealthy organ- 27 offices across Europe, the CIS, Asia, free movement of goods, services and apples, among others) with the exception tificate of origin. isms and increase the quality of Georgian the Middle East and the United States, capital (the free movement of persons of the ad valorem component. The ex- According to the EU Origin Rules the products on the European market. Dechert has the resources to deliver being excluded but there is a plan for a porter will only be responsible to pay the following products are considered to Products imported from Georgia to the seamless, high quality legal services to liberalized visa regime currently being entry price if the invoice price of the ex- originate in Georgia under the DCFTA: EU shall undergo a conformity assess- clients worldwide. For more information, developed). ported goods exceeds the price deter- · Products wholly obtained in Geor- ment. The conformity assessment is con- please visit www.dechert.com or contact mined by the EU; gia – products obtained in Georgia mean ducted by specially-accredited agencies in Nicola Mariani at TARIFF BARRIERS · The anti-circumvention mechanism vegetables and fruits harvested in Geor- Georgia. The Unified National Body of [email protected]. The DCFTA removes all customs du- is another restriction set out by the gia, live animals born and raised in Geor- Accreditation – Accreditation Center car- ties on the import and export of goods. DCFTA for 237 Georgian products (ex- gia and natural minerals mined in Geor- ries out accreditation in accordance with GENERAL OVERVIEW Goods originating in Georgia will enter amples include frozen lamb, frozen bone- gia. Any product produced from the the Code on Safety and Free Movement Over the course of the past ten years the EU market with a zero customs duty less turkey cuts, egg yolks, meslin flour above mentioned will be considered to of Products. The product shall fulfill all of liberal trade regimes have helped foster provided that specified non-tariff require- and maple sugar, among others). The have originated in Georgia. the requirements stipulated under the rel- growth in the Georgian economy. Follow- ments are met. DCFTA provides a fixed quantity of cer- · Products obtained in Georgia but evant legislation before it enters the mar- ing this trend the Agreement on Deep and The DCFTA envisages limitations on tain products to be exported. The anti- incorporating materials which have not ket, in particular with regard to the health Comprehensive Free Trade Area (the certain types of products: circumvention mechanism is not a quota been wholly obtained in Georgia, pro- and safety of consumers. “DCFTA”) – as part of the Association · Twenty-eight species of agricultural but a limitation which can be extended vided that such materials have undergone In order to fully lift non-tariff barri- Agreement signed between the European products will remain subject to import based on the Government of Georgia’s sufficient work or processing. The fol- ers Georgia must bring its domestic leg- Union and Georgia (the “AA”) signed on duties (the so called “Entry Price”; ex- prior request; and lowing criteria are taken into account islation in line with that of the EU. As a · The duty-free tariff rate quota is fully when determining the product origin: result of convergence in regulatory stan- lifted under the DCFTA with the excep- · Change of Harmonized System Code dards the Georgian authorities will ulti- FOR SALE tion of the import of garlic from the EU - processing carried out on the territory mately be responsible for authorizing to Georgia. of Georgia which changes the first-four export to the EU. The DCFTA and 9,8 ha non-agricultural, privately owned parcel for digits of the Harmonized System Code Georgia’s continued adoption of EU PRODUCT ORIGIN compared to the initial product; regulatory standards provide more rea- industrial use (cadaster code # 01.19.26.004.088) The DCFTA offers Georgian products · Criterion of ad valorem share - de- son to be optimistic about the country’s free trade access to the markets of EU termines the share of imported goods in import and export industries. located next to Tbilisi Airport Member States. In order for products to the final product; and qualify for the favorable free trade regime · Criterion of necessary conditions, * * * with the EU they shall be granted a cer- manufacture and technological opera- Note: this article does not constitute Address: Airport settlement, Samgori district, Tbilisi tificate issued by the competent Georgian tions – technological operations have to legal advice. You are responsible for Tel: +995 599 529 529 authorities (the “Certificate of Origin”) be carried out during the process of re- consulting with your own professional to receive the status of a Georgia-origi- production. legal advisors concerning specific cir- [email protected] nated product. In order for the Certificate of Origin cumstances for your business. SOCIETY SEPTEMBER 18 - 24 13 Georgian Constitutional Court Trains Journalists By Meri Taliashvili

The Georgian Constitutional Court (CCG) car- ried out three-days of training seminars for jour- nalists from Tbilisi and other regions which aimed to educate them about the CCG and its method of working. On the very first day of the seminar, the journalists were hosted by the Chairman of the CCG, George Papuashvili, in the CCG Building while the seminars were held at the Hilton hotel in Batumi. Georgian Democracy Initiative representative Gior- gi Mshvenieradze and Open Society Georgia Foun- dation representative Giorgi Chitidze introduced: The Constitutional Court and the General Courts Practical Aspects; The Constitutional Court and the European Court of Human Rights; Implementation of the decisions of the Constitutional Court and the accompanying processes; The Constitutional Court as the protector of rights, and The Constitutional Tribunal: rules of composition, powers, and the rules of consideration. According to Papuashvili, the communicator between CCG and society is the media and so it is vital to equip that media with all the necessary in- formation about this body in order to make it easi- er for journalists to better inform citizens. “The Constitutional Court is a particular type to it and what types of rights are protected by the Here, we come across Georgian language in differ- The training was conducted in the framework of institution. Correspondingly, it has limited com- Constitutional Court. Of course if there is public ent terms and standards. Therefore, for journalists of the project Support to the Constitutional Court munication with the public. Generally, the body’s interest and when there is public interest, in such it is important to understand it first themselves what of Georgia that is carried out by HUMAN DY- decision is overloaded with complex legal jargo cases the media is active,” Papuashvili told Geor- it is about and then report it in a common language. NAMICS with the financial assistance of the Eu- and most journalist don’t have a specific educa- gia Today. We learned how an appeal is made, how the court ropean Council. The project aims to establish and tion in legal issues; therefore, we decided to con- Nino Khozrevanidze, the Interpressnews corre- decision is made and implemented and other relat- strengthen the rule of law and protect human rights duct seminars about our activities. It is important spondent of the Adjara region noted the importance ed processes. During these three days, we, journal- in Georgia, specifically to strengthen the Constitu- that media be a communicator between the insti- of the training and how it helped the journalists to ist working in this field, got acquainted with these tional Court of Georgia. In the framework of the tution and society and to report in a comprehen- understand how this genuinely complex institution procedures. The trainings helped us move one step project it is planned to refine legislative basis, sion language what kind of decisions are made, performs. ahead,” Khozrevanidze said while speaking with strengthen the institutional capacity of the CCG and what the functions of the body are, who can turn “This training was important and necessary. Georgia Today. raise the awareness of the CCG. Revenue Service Launches Electronic Invitation to Participate in the Sales Resource for Disabled Procedures Announced by the Embassy of By Eka Karsaulidze the Republic of France in Georgia on the Sale The Revenue Service of Georgia has created a special version of its official website for the visu- of 3933 sq/m Land Plot Located ally impaired. The site is very easy to use and peo- ple with disabilities are able to use it independent- in the Center of Tbilisi ly in order to find out the latest news. Related elec- tronic resources will soon be available for smart- The Embassy of the Republic of France in Georgia has an- phones. The innovative program is an invention of Geor- nounced a Sales Procedures on the sale of land plot located ad- gian specialists. Lado Urdulashvili, employee of jacent to the Rustaveli Avenue at 4 Khazina St., Tbilisi, Geor- the Revenue Service and one of creators of this pro- gram, is himself visually impaired, so first of all he gia. The land plot has the following characteristics: cadastral created the program for himself, but later the Rev- enue Service asked him to share, and from this week code – 01.15.04.007.010; total area of the land plot - 3933 sq/ it is available at voice.rs.ge m. The land plot qualifies as type 2 recreational zone with the According to Urdulashvili, the site is simple, with each movement taking place to the accompa- following coefficients: K1= [0,2], K2=[undefined] and niment of an electronic voice that reads out all your steps and the necessary information. “You can con- K3=[Undefined]. trol the site by mouse or keyboard – you just need Please, take into account that the Sales Procedures n will be to press Tab, Enter and Backspace. Even people Lado Urdulashvili, creator of voice.rs.ge who have never used a computer, with only a few conducted in accordance with the Rules for Submission of Of- buttons can find all the information needed,” he Urdulashvili. In addition, many people suffer from explained. the problem of visual impairment, and eye irrita- fers available on the web-page of the Embassy: ambafrance- On the main page, the program immediately al- tion and fatigue, so replacing reading with audio ge.org, or by e-mail request at contact.tbilissi- lows you the chance to find out how to work on the material can greatly facilitate their experience. site. Voice.rs.ge duplicates the official website of Minister of Finance of Georgia, Nodar Khaduri, [email protected]. The interested Parties shall submit Revenue Service, so you just need to choose the praised the achievement of Urdulashvili and col- desired information, and the program is ready to leagues. “The Ministry of Finance has always paid their Expression of Interest in a form and to the addressee(s) read it out. attention to people with disabilities; the entire Min- envisaged in the Rules for Submission of Offers. The creators claim that the program is designed istry has convenient infrastructure for their move- not only for people with a complete lack of vision, ment. People with disabilities work for us as well, In case of additional questions, please, contact [the consul or but also for those who are partially able to see. For mostly in call-centers, where residents receive qual- hes representative] at the following e-mail [contact.tbilissi- this purpose, the font size can be increased and de- ified information from them,” said Khaduri. “The creased, and you can choose a black or white back- creation of the electronic resource voice.rs.ge is [email protected]] or call at [(00 995 32) 272 14 90] ground. Urdulashvili emphasizes that for non-dis- definitely a great achievement and I hope that our abled people, this program can also be comfort- colleagues from other ministries will take note of from Monday to Friday from 9:30 AM till 12:30 PM. able to use. this,” he added. The Expression of Interest shall be submitted to the Contact “There is a certain category of people who learn Khaduri also noted that he is going to meet Prime th through hearing. They may see and read well, but Minister Irakli Garibashvili in the near future and Person indicated above no later than 15 of October 2015. absorb information much better by hearing,” said nominate Lado Urdulashvili for a state prize.

CULTURE SEPTEMBER 18 - 24 15 Belarus to Host Interview: Fatboy Slim Smiles High at Global Gathering Georgia Georgian By Katie Ruth Davies

I’m still recovering from last Friday. Harvest Festival I considered the headline: Mother of Three Survives Global Gathering Geor- gia, but couldn’t fairly take the limelight from the true star of the show- 51 year- old British DJ Fatboy Slim who bounced around and shook his hips in a way my half-his-age (or so!) body could only remember! But then, this is what he does for a living. And does he do it well? I’ll let the crowd he wowed on Friday an- swer for that: (Overheard conversation): “Wasn’t it awesome?” “Beyond awesome!” Fatboy Slim on stage at Global Gathering Georgia. Bravo Records is responsible for or- rolling non-stop behind him crowned by Q: You said in an interview that ganizing the September 11th wowzer his well-known Smile High Club logo you ‘feel like you’ve lived through a that took place at the Rustavi Race- which we saw not only on screen but on golden age of club culture and elec- course, inviting such greats as headliner the huge bouncy balls he launched into tronic dance music.’ Tell us more. Fatboy Slim (Norman Cook) to play the crowd halfway through the show. A: I’ve been lucky enough to be part alongside Kryder and Godskitchen resi- Undoubtedly, it was a more subdued of a scene that has been growing and dent Paul Thomas, amongst many oth- Global Gathering festival than one might developing from underground clubs to ers- including some up-and-coming experience in other locations, particu- the huge festivals, commercial success The capital of Belarus, and one of its Dazhynki is a traditional Eastern Georgian DJs- from 6pm to around 8am. larly Europe. But this can, I’m sure, be and worldwide acclaim. I’ve seen life biggest cities, Minsk, is to host a Geor- European celebration of the completion Young Georgians came in dribs-and- attributed to Georgia’s inexperience in from the most rudimentary belt drive gian harvest festival at the end of Sep- of the harvest season and has been cel- drabs, transported to Rustavi from the the field. Certainly, I could see (and turntables and primitive drum machines tember. ebrated since 1942. Thanksgiving and capital on free buses provided by the or- hear) that the Georgians are ready for to the finest digital technology and free Mayor of Minsk, Andrei Shorets, told Harvest Festival can be regarded as the ganizers; smiling, giggling, excited and more! access to our music through the internet. journalists of the arrangement after western equivalent to the Belarusian unsure what to expect. Such music and Georgia Today managed to speak to It’s been an incredible journey! meeting with Mayor of Tbilisi, Davit celebration. such festivals are a new thing here- many the world-famous British DJ prior to his Q: How does inspiration come to Narmania. During his visit to Belarus, the Tbilisi festival-goers were only just recovering arrival in Georgia. you? What do you do when you get Shorets said representatives of the and Minsk mayors signed a Twinning from the August GEM Fest, many were Q: FatBoy Slim is one of the big- that inspiration? Georgian community in Belarus asked agreement on September 11th. unable to even go to GEM because of gest names in the history of electronic A: From the thousands of hours I’ve Minsk City Hall to hold a similar event The agreement is expected to foster the distance (it was held at the beach re- music! What do you think is the se- spent watching people digesting music to the Belarusian harvest festival, called economic and cultural ties between the sort of Anaklia- in the top-most north- cret of your success? on the dancefloor. I get the best view in Dazhynki, in Minsk on 26th September. two cities. It is hoped to also strengthen western corner of the country) and the A: I think it is equal parts tenacity, the house of what turns people on whilst “We decided to support this idea. I bilateral cooperation in science, technol- cost of the tickets. Global Gathering, luck and a genuine love of what I do. I they party. think that Minsk residents should get bet- ogy, investment, innovations, health- present in Georgia for the first time, how- guess my enthusiasm is infectious! Q: What do you value most in life? ter acquainted with Georgia, its customs care, education, sports and allow the cit- ever, offered free tickets to all. Q: You’ve had huge success with A: My family, health, musical career and traditions. I am sure that the event ies to exchange data on urban develop- The racecourse, with its two con- both making your own studio albums and a couple of really serious Japanese will be a huge celebration,” Shorets said. ment and local self-government. stantly-busy stages, thrummed with an and playing anthemic tracks as a su- chef’s knives... energy that all there seemed to feel in perstar DJ. Which do you enjoy the Q: What’s your biggest career mo- abundance. Fatboy Slim, coming on just most? ment and what are your plans for the after midnight and introduced by a round A: Right now I am driven by DJ-ing future? of fireworks, shook the stage with his rather than production. There has never A: Biggest career moments have enthusiasm. I had used my press band been a better time to be a DJ and I don’t been the 5 Big Beach Boutiques in my and sharp elbows to make sure I was have a passion for the studio right now. home town of Brighton. Triumphant centre floor to enjoy the show, having This of course could change at any mo- celebrations of my relationship with the last seen him back in 2000 in a club in ment but as thing stands it’s a life on the city and dance culture. Future plans in- Barcelona. He teased his fans with road for me.... clude another event in Brighton celebrat- tantalising shots of his well-loved 90s Q: What’s the last music project ing more of the same... tracks- which immediately got people you worked on? Q: What would you advise young singing/shouting along, though he pre- A: A one-off tune called ‘Eat Sleep Georgian DJs? dominantly stuck to his latest electronic Rave Repeat’ (and compiling a couple A: Remember it’s all about entertain- material, with a creative screen-show of compilation albums) ing the audience. It’s not about you! Georgian- Ukrainian Exhibition Presented in Kiev

Supported by the Ministry of Culture and Monument Protection of Georgia, from 8 September to November 1st, An Exclusive Eden in three Georgian artists: Anna Chaduneli, Uta Beqaia and Tamar Chabashvili will participate in the second International Kvareli this Weekend festival Biennial 2015 in Kiev, Ukraine. tember 19th, guests will be able to ab- The theme this year is ‘School of sorb the true harvest culture of Kakheti Kiev’ and contains 26 exhibitions and with the opportunity to try their hands several social spaces where the artists’ (and feet!) at wine-making, works will be exhibited. The places churchkhela-dipping, tone bread baking where the works will be displayed are and mtsvadi (BBQ) tasting! the House of Painters, the ‘Scientific Frank McComb- known to have Institute of Modern Art, the National Art played with such greats as Marcus Academy of Kiev and others. Miller, Stevie Wonder and George Duke More than 100 Ukrainian and foreign -will be playing live in the evening fol- artists are involved and several schools lowing a giant screen showing of the are presented within the program: Georgia-Tonga rugby game. · The School of Realism The hotel + event packages for two · The School of the Lonesome persons include entrance to the exclu- · The School of Landscape sive cultural experience in the courtyard · The School of Image and Evidence of Kvareli Eden hotel, a lunch of natu- · The School of the Displaced FOR RENT ral local products, the chance to watch · The School of Abducted Europe the rugby game on a big screen and a The project was created and orga- Apartment in Vake (behind the Vake Swimming Pool) in an jazz and wine evening with Frank nized by curators Hedwig Saxenhuber ecologically clean environment with beautiful views. McComb. Hotel stays (with a choice and George Schoellhammer whose se- The 120 sq. m. duplex apartment on the 10th floor, newly reno- By Katie Ruth Davies from the Kvareli Eden to hotels located ries and institutions are represented in vated, with a new kitchen, fireplace, balconies. in nearby Kvareli village- transport pro- Europe. Bravo Records and Hotel Kvareli vided) include breakfast or full board. The Georgian-Ukrainian exhibi- Eden are offering a special exclusive The packages range in price from 150- tion will be presented within the Bien- package event this weekend with the 500 GEL. nial and continues until 1 November. Price: 1100 USD special guest appearance of famous jazz To get those last minute tickets, con- Tel: 577521020 Tekla (English) musician Frank McComb. tact Iako Tchalaganidze at: +995 599 Find the festival schedule 597000109 Dato (Georgian) Beginning at 12pm on Saturday Sep- 323201 or [email protected] at: www.theschoolofkyiv.org

CULTURE SEPTEMBER 18 - 24 17 Art Palace Hosts Parjiani Gospel Georgian Film ‘Moira’ Chosen By Meri Taliashvili Georgia and the Baia Gallery on the ini- tiative of Parjiani family. The paintings If you haven’t seen it yet, you have will be exhibited at the Art Palace from for Oscar Submission two days left! The Art Palace (Geor- September 5th to September 20th. gian State Museum of Theatre, Cinema, Sopo Parjiani, daughter of the artist: Music and Choreography on “This is a very special day because this Kargereteli Str. 6), is hosting the per- year my father would have turned 65. sonal exhibition of renowned Georgian Therefore, in connection to this date, we artist Irakli Parjiani- the Gospel of decided to display his handwritten Gos- Mark and John. The manuscript book pel of John and Mark exhibition and then Gospel of Mark and John was created have it printed.” during the 1980s and presents an im- The painter intended to rewrite the portant example of contemporary Geor- four chapters of the gospel but was not gian art and a XX century unique monu- able due to his untimely death. ment of cultural heritage. Work on the The painter, poet, and laureate of the book took place during Soviet times and National Award and Pirosmani Prize was thus was linked to a number of risks born in 1950 Mestia, Svaneti, and died and threats. The presentation of the at age forty-one in 1991. completed work was almost impossible The Minister of Culture and Monu- at that time. ment Protection of Georgia, Mikheil The exhibition is held for the first Giorgadze, gave special thanks to the time with the assistance of the Ministry Parjiani family and the Art Palace for of Culture and Monument Protection of this unique exhibition.

By Nina Ioseliani Ministry of Culture and Monument Pro- Warsaw Film Festival. tection of Georgia, Kakha Kandelaki, Di- Tutberidze, who began his movie ca- Georgian film “Moira” has been nomi- rector of the National Film Center, Nana reer in 1989 as an actor, has a nated as an Oscar candidate in the Best Janelidze, film directors Nana Jorjadze, filmography covering 12 works, includ- Foreign Language Movie category. Zaza Urushadze, Giorgi Ovashvili, actress ing documentaries, TV films and features The film, directed by Levan Nato Murvanidze, scriptwriter Vazha that include ‘I’ll Die Without You’ (2010) Tutberidze tells the story of Moira Gigashvili, film expert Lela Ochiauri and and The Village (2015). He also partici- which is not the name of the goddess of producer Noshre Chkhaidze. pated in anthology film ‘Tbilisi I Love fate but rather a fishing rod owned by Due for its world premiere late this you’ in 2013. two brothers living by the sea. month at the 63rd edition of the San On September 23rd the world pre- The film was chosen by a special com- Sebastian Film Festival, the 95 minute miere will be held at the San Sebastian mission on September 12th. Among the feature – Tutberidze’s sixth feature – Film Festival, and after the festivals the commission were: Deputy Minister of the will also be screened in October at the film will be shown to the public. WHAT'S ON IN TBILISI THEATRE Start time: 20:50, 22:20 ARCHAEOLOGICAL TREASURE WELL-KNOWN GEORGIAN Progressive rock GABRIADZE THEATRE Ticket price: 11.50 – 12.50 Lari WRITER AKAKI TSERETELI’S 175 The Mins (Georgia) Address: 13 Shavtelis St. June 27 – October 31 YEAR ANNIVERSARY AND 100 New Progressive Rock, Alternative Telephone: 2 98 65 93 TRAINWRECK “GEORGIANS IN WORLD WAR YEAR ANNIVERSARY SINCE HIS Rock, Post Rock Directed by Judd Apatow II” IS AN EXHIBITION DEATH. InnerHiss (Georgia) September 18 Cast: Amy Schumer, Bill Hader, DEDICATED TO THE 70TH Progressive Rock, Experimental ANNIVERSARY OF THE VICTORY MARSHAL DE FANTIE’S DIAMOND Brie Larson GALLERY Start time: 19:00 OVER FASCISM. Rezo Gabriadze Genre: Comedy, Romance Ticket price: 20 Lari Directed by Rezo Gabriadze Language: Russian THE NATIONAL GALLERY ART PALACE English Subtitles Start time: 14:50, 22:40 Address: 11 Rustaveli Ave. CLUB 33A Address: 6 Kargareteli st. Start time: 20:00 Ticket price: 8.50 – 12.50 Lari www.museum.ge Address: Vake Park Telephone: 295 35 63 Ticket price: 10, 15, 20 Lari VACATION PIROSMANI’S 150TH September 18 September 5-20 LIVE FOR SPACEBOY – CHARITY September 19 Directed by John Francis Daley, ART PALACE AND BAIA CONCERT TO SAVE LEVAN AUTUMN OF MY SPRING Jonathan M. Goldstein September 10 – October 9 GALLERY PRESENT THE CHIKHRADZE Rezo Gabriadze Cast: Ed Helms, Christina Applegate, VAKHO BUGADZE’S PERSONAL EXHIBITION OF Pariticipants: Tserili (The Letter), Directed by Rezo Gabriadze Skyler Gisondo EXHIBITION “SUBURB” Irakli Parjiani’s 65th Jubilee Year Loudspeakers, Lady Heroine, English Subtitles Genre: Adventure, Comedy The Gospels of St. Mark and St. John Backwarmer, Nika Kocharovi, Reefer Start time: 20:00 Language: Russian GALLERI NECTAR First show Band, Gravity, Seva, The Black Ticket price: 10, 15, 20 Lari Start time: 14:50 Address: 16 Aghmashenebli St. Ticket price: 8.50 – 9.50 Lari Telephone: 295 00 21 Marrows. MOMA TBILISI ZURAB Start time: 19:00 September 20 www.gallerynectar.ge RUSTAVELI CINEMA TSERETELI Ticket price: 10 Lari RAMONA Address: 5 Rustaveli Ave. Address: 27 Rustaveli Ave. Rezo Gabriadze September 10 – October 10 Telephone: 255 50 00 Tel.: 298 60 30 INTERNATIONAL Directed by Rezo Gabriadze UNTITLED (IN THE MOOD) www.kinoafisha.ge MUSIC FESTIVAL “AUTUMN English Subtitles Nic Bezemer September 10-27 TBILSI” – 2015 Start time: 20:00 MAZE RUNNER: SCORCH TRIALS TILDA GEORGE Address: Djansug Kakhidze Tbilisi Ticket price: 10, 15, 20 Lari ART CAFE PUNCTUM (info Above) Center for Music and Culture, MARE 2.0 Address: 4 Machabeli Str. Language: Russian 125 Agmashenebeli Ave. CINEMA Tilda George, a Georgian photographer Telephone: 568 23 24 30 Start time: 11:30, 14:15, 17:00, from Germany, is bringing her first Tel.: 296 12 43, 296 22 07 AMIRANI CINEMA 19:50, 22:40 solo exhibition to Tbilisi. September 18-24 Address: 36 Kostava St. Ticket price: 7.50 – 12.50 Lari September 20 Telephone: 299 99 55 AVTANDIL GAKHOKIDZE ART IOSEB GRISHASHVILI TBILISI TBILISI SYMPHONY www.kinoafisha.ge Exhibiiton-Sale PIXELS 3D HISTORY MUSEUM - KARVASLA ORCHESTRA Directed by Chris Columbus Address: 8 Sioni St. Soloist: ALEXANDER TORADZE MAZE RUNNER: SCORCH TRIALS MUSIC Cast: Adam Sandler, Kevin James, Telephone: 2 98 22 81 (piano, USA) Directed by Wes Ball Michelle Monaghan Conductor: VAKHTANG Cast: Dylan O’Brien, Kaya TBILISI PROG FEST 2015 Genre: Action, Comedy, Sci-Fi September 18-29 KAKHIDZE Scodelario, Thomas Brodie-Sangster Language: Russian EXHIBITION “UNINTENDED Address: Club ElektroWerk, STRAVINSKY: Symphony No.1 rd Genre: Action, Sci-Fi, Thriller Start time: 12:15 SMILE” BY GIORGI Cholokashvili 3 Alley #4 PROKOFIEV: Concerto for piano and Language: English Ticket price: 7.50 – 8.50 Lari SHALIKASHVILI WHICH AIMS orchestra No.2 Start time: 19:55 TO DELIVER A VISUAL September 19 Start time: 19:30 Language: Russian VACATION UNDERSTANDING OF HUMAN LOCOMOTIVE PROMOTION Ticket price: 10-30 Lari Start time: 12:30, 15:30, 17:10, (Info Above) LANGUAGE. EACH PICTURE, PRESENTS 19:40, 22:30 Language: Russian SHAPE AND OBJECT Tbilisi Prog Fest 2015 September 23 Ticket price: 7.50 – 12.50 Lari Start time: 17:50, 22:10 REPRESENTS ONE COHESIVE Line up: CONCERT DEDICATED TO THE Ticket price: 9.50 – 12.50 Lari INSTALLATION. Leprous (Norway) 90 YEAR ANNIVERSARY OF THE TRANSPORTER REFUELED Progressive metal, progressive rock, MUSEUM SULKHAN TSINTSADZE Directed by Camille Delamarre LITERATURE MUSEUM avant-garde metal String quartet “IBERI” Cast: Ed Skrein, Loan Chabanol, Ray SIMON JANASHIA MUSEUM Address: 8 Chanturia Str. Artsruni Progressive Music Act S.TSINTSADZE – String quartet No.8 Stevenson OF GEORGIA (Armenia)) S.TSINTSADZE – String quartet No.12 Genre: Action, Crime, Thriller Address: 3 Rustaveli Ave. September 19 – October 10 Progressive Rock Start time: 19:30 Language: Russian Telephone: 2 99 80 22 EXHIBITION DEDICATED TO The Light Year (Georgia) Ticket price: 4-20 Lari

SOCIETY SEPTEMBER 18 - 24 19 RReWeWoovvenen andand BeBeyyondond By Tony Hanmer sive effort that is required to weave a rug. Both of these factors are significant This week... it gives me great plea- obstacles to motivating the younger gen- sure to interview Ryan Smith, the eration to continue the craft. founder of reWoven, an amazing project I would love to work myself out of a to revitalize Azeri carpet-weaving tra- job, but it does not look possible in the ditions based in Marneuli, Georgia. immediate future. I learned about rug First, an announcement: weaving when I lived in Azerbaijan 10 “reWoven is proud to announce an years ago. While I do not weave our rugs, upcoming exhibition in Tbilisi on Tues- I am involved in every other step of the day, September 22 at 19:00 at the Eu- process. I procure the yarn, select and draw rope House (1 Freedom Square, on the the designs from historic sources, interact corner of Leselidze St.). Many people with the weavers, and oversee the finish- have expressed interest in our project, ing process of the rugs, never mind all of and this will be a great opportunity for the marketing and sales. Because of my you to view our rugs in person. (Please extensive experience in rug culture, I have see www.rewoven.net for more of the a unique skill set to offer this project that story). We will have several newly com- is not immediately transferable. pleted rugs that have not yet been posted Again, only time will tell the future on our website. Additionally, we are in- form this project will take. But we are all viting all of our weavers to attend. Please enjoying the journey. Each completed rug come along and help us honor these is another success. It is one more beauti- amazing artists.” ful representation of the women and their Q: Do you have a favorite overall community, and the benefit that it brought design, element or set of colors in what to them. We will continue to enjoy each your people have produced so far? woven creation, whether it is our last, or A: I honestly love every single rug that there are hundreds to follow. our ladies have woven. The beauty of Q: How has the project impacted each rug is not limited to its final appear- A skilled reWoven rug-maker at work. the weavers’ lives or those of their fami- ance, but includes the story of the woman rugs that catch my eye because of their with only a few surviving original ex- I select from designs that were woven lies, communities, etc? What examples who wove it and its creation process. unique beauty, and that I hope will catch amples. It has a bold flower, sunburst locally, but generations ago. There is very do you have of this? I have the pleasure of choosing which the eye of others. One of my favorites medallion in the center of the rug that little recognition of these designs within A: First and foremost, the weavers designs we will revive from this region’s so far is what we call the “Early radiates life and beauty. Its rich red field the current generation. I show the designs are making more money for their weav- collection of antique rugs. I choose the Chelaberd”. It dates to the 18th century looks absolutely regal. to the weavers, and sometimes I let them ing than they ever have before. Hence choose which design they want to weave. they are able to provide more for their And I always encourage the weavers to family through this craft. Additionally, use the design as a guideline, to add their there are more women weaving than own creative ideas. And they always do! when we started the project. Several of They switch colors and add their own little our weavers had not woven for ten or unique elements. At the same time, rug fifteen years before they wove a rug for weaving has never been an art form of pure reWoven. So the weaving culture has personal expression. It has always been taken small steps toward revitalization. deeply rooted in tradition and repetition. These steps also have an impact on That is why there are numerous examples the broader community. When they first of the same antique designs. Women wove see our rugs, they assume they are an- what they saw on their own floors from tiques. They immediately recognize that generations past. It is rare, if not impos- the designs and colors are not the syn- sible, to find an antique rug that does not thetic examples of decades past, but rep- have another example that looks extremely resent the natural dyes and intricate de- similar to it. signs of centuries past. They take pride Q: What would be your dream suc- in seeing this art revived and promoted cess story for this endeavor, either in to the world. the life of one weaver or overall? Will Additionally, we have just commit- there come a time when you “work ted funds from the proceeds of the yourself out of a job”, i.e. leave it to project to remodel a school in one of the them? What might that look like? villages where our rugs are woven. Kids A: Not to sound cliché, but this project will return to school on September 15th has very much been a journey. It is im- to a school with fresh paint and new win- possible to predict what its final destina- dows and doors. It’s our absolute plea- tion will be. Ideally, it would be a sustain- sure to give back to the community be- able project with local weavers, manag- yond the preservation of rug weaving. ers, and sales. But this ideal may only re- Q: What might come next for YOU main a dream. In the early stages, there after this, if you can see that far—fur- were many times that I thought for sure it ther growth in the same area, or some- would fail. Honestly, I never could have thing entirely different? hoped that we’d reach the level of success A: I honestly have no idea. I’m happy we are at today. You have to remember to continue with this project for years to that this art is one final breath away from come and see what form it will take. I being extinct in this region. This includes will enjoy every step along the way and not only the expertise to weave rugs, but all of the amazing people with whom I also to acquire the necessary materials to get to work alongside. My family would produce them. The economic and cultural be happy to live in Georgia for years to forces that have contributed to this craft’s come, and specifically in Marneuli. This demise are formidable. Weaving a rug is region has a strong agriculture and live- naturally a very time consuming process, stock sector. If I wasn’t involved in rug much less all the other material, transpor- weaving, I’d likely see what role I could tation, marketing, design, and washing play in that sector. expenses involved. The sale price of the Q: Are there other areas of culture, rug needs to be significant enough to ex- the arts, etc. which could be supported ceed all of these expenses. and encouraged in similar ways? In addition to the economic chal- A: I think every form of art and cul- lenges, there is surprising cultural resis- ture is immensely valuable and worthy tance within the community. While the of support. I am a big advocate of find- broader Azerbaijani and global commu- ing financially sustainable ways to ac- nity value the beauty of this woven art, complish this. It is important for a tan- young women in the village are not in- gible art form to establish a market for terested in continuing the tradition. They it artisans. This is a big step towards in- see rug weaving as something only for suring the preservation and development the older generation, not for a modern, of the art. young woman. Plus, there is the exten- www. reWoven.net for more details.

Tony Hanmer runs the “Svaneti Renaissance” Facebook group, now with over 1200 members, at www.facebook.com/groups/SvanetiRenaissance/ He and his wife also run their own guest house in Etseri: www.facebook.com/hanmer.house.svaneti

SPORTS SEPTEMBER 18 - 24 21 Haig’s Lelos Can Be History-Makers at Rugby World Cup

By Alastair Watt cured by the aforementioned two victo- ries mission, are slim according to the As Georgia finish off their prepara- seldom wrong bookmakers who are of- tions for a fourth appearance at a Rugby fering a price of 50/1 on Georgia to make World Cup, the Lelos’ New Zealander the last 8. head coach Milton Haig is satisfied that For those who abstain from gam- the country’s national rugby team has bling, simply put this means that if you never been better drilled for rugby’s bet 1 Lari on Georgia to reach the quar- showpiece event. ter-finals, you would win 50 Lari if they “This is the best preparation that did so. Georgia has ever had,” said Haig ahead Nevertheless, Georgia are being writ- of Georgia’s opening match against ten about with respect, particularly in the Tonga in Gloucester on September 19. Guardian’s preview which forecasts the Haig was not in charge for Georgia’s Lelos upsetting Tonga, and possibly last World Cup appearance in 2011 even Argentina. where Scotsman Richie Dixon guided It is the opener against Tonga that the Lelos to victory against Romania and appears pivotal to Georgia’s tournament credible performances in defeats to En- though. The Georgians dropped three gland, Scotland and Argentina. places to 16th in the recently announced Georgia turned a few heads that time world rankings, five places below Tonga in New Zealand and, having beaten the who won 23-9 in Tbilisi last November. likes of Samoa and Japan in test matches At the time, head coach Haig admit- since then, they arrive in England ted the match had not gone as planned slightly less of an unknown quantity. but insisted that the game and result Indeed, it was the World Cup prior would have no bearing on the now im- to the last, in France 2007, where Geor- minent World Cup clash, a sentiment gia really caught the attention of the echoed by his Tongan counterpart. In- rugby world, running Ireland to within deed, the Tongans may have more World a whisker of a dramatic defeat as the Cup experience but they too have never Irish escaped with a 14-10 win in Bor- sampled the knockout stage. deaux. Georgia may have lost all three of That year Georgia did however their warm-up matches against Falcons, They emerged with a 29-18 win hav- their crown as world champions, some- relatively successful exercise. record their first ever victory at a World Canada and Japan, but Haig is adamant ing been trailing at half-time in 2011. thing that has never been done since the The final group game takes place in Cup, overcoming Namibia 30-0 in Lens. that preparations have been ideal. Argentina are favorites to land second Rugby World Cup’s inception in 1987. Exeter in southwest England, where Georgia have won one game at each Following the Tonga clash, Georgia, place in this group with a formidable It will be “a dream come true” ac- Namibia will be the opponents on Oc- of their last two World Cups and the again in Gloucester, face a familiar recent pedigree in the tournament, reach- cording to Haig, to lead out Georgia tober 7. Victory here is all but assumed mission now is to record two victories World Cup foe in the shape of Argen- ing the semis in 2007 and the quarters against his native All Blacks in Cardiff although the significance of the match at the group stage, a not insurmountable tina on September 25. Los Pumas know four years ago. on October 2. While upsets are possible will depend on earlier results in the Pool, feat that would also see them qualify only too well the threat Georgia pose, The giants of Pool C are New in the opening two matches, against New especially against Tonga and Argentina. automatically for Japan 2019. as this will be their third World Cup Zealand who are expected to make light Zealand if Georgia can score a try or two The tournament lasts over six weeks, Their chances of reaching the quar- meeting, with the latest encounter par- work of every team in the group, and and keep their illustrious opponents to with the final on October 31 at ter-final, something that could be se- ticularly nervy for the Argentines. are overwhelming favorites to retain within 25 points, it would go down as a Twickenham in London. Georgia Makes its Mark at EuroBasket 2015 By Alastair Watt Maciulis who netted 34 points to steer strongly to an unpromising situation the much-fancied Lithuanians to a and ran out comfortable victors, It may have ended in glorious fail- nerve-jangling triumph. sweeping aside the Macedonians with ure, but there is little doubt that Georgia Despite Georgia’s defeat, the team a 90-75 success. left an irremovable mark on this month’s led by Serbian coach Igor Kokoskov was Pachulia, as ever, was instrumental European Basketball Championships praised on the official EuroBasket 2015 with 23 points and 14 rebounds while (EuroBasket). website for its “fine progress”. Giorgi Tsintsadze contributed six assists On September 13, Georgia pushed Indeed, Georgia’s existence at the to the suddenly revived Georgians. Lithuania, finalists in the 2013 edition tournament was Lazarus-like with elimi- That essential victory was followed and one of the tournament favorites, all nation appearing an inevitability after by one of the most sensational results in the way in a thrilling last 16 encounter losing their first three matches in the the group stage as Georgia comfortably in Lille, France. group stage held in the Croatian capital defeated group hosts Croatia 71-58 in With the Georgians leading by a of Zagreb. front of their own fans with cult hero point at half-time, an advantage that A shock loss in the opener to Neth- Viktor Sanikidze the top performer for ought to have been greater given their erlands on September 5 appeared to de- the heroic Georgians with 12 points and first-half dominance, their Baltic oppo- rail any hopes of knockout stage quali- five rebounds. nents squirmed their way to a 85-81 vic- fication, a gloomy forecast that was only That sensational result, even though tory, denying the Georgians an historic made bleaker by subsequent defeats to Croatia had already qualified, goes place in the quarter-finals. Slovenia and Greece. down as one of Georgia’s finest in its Indeed, Georgia led going into the That left the Georgians with a do- three appearances at European finals. final quarter with NBA star and captain or-die clash against Macedonia on Tornike Shengelia also enjoyed an Zaza Pachulia spearheading the attack September 9, in front of a sparsely impressive tournament, registering with 23 points. populated Arena Zagreb. As has of- Georgia’s highest average score. His impressive efforts were over- ten bene the case in Georgia’s history, This year’s final takes place on Sun- shadowed though by Lithuania’s Jonas not only in sport, they reacted day 20 September.

Fill in the grid so that every row, every column, and every 3x3 box contains the digits 1 through 9.

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