Issue no: 1150/180 • MAY 14 - 16, 2019 • PUBLISHED TWICE WEEKLY PRICE: GEL 2.50

In this week’s issue...

Weekly Entrepreneurial News @entrepreneur.ge NEWS PAGE 2 Georgian Economy Strong, Infl ation Low, Short-term FOCUS Consumer Credit Declines ON 10 YEARS ISET PAGE 4 On the Success of the OF THE EAP ‘Georgia - Homeland of The PM heads to Brussels to celebrate Georgia's Wine’ Exhibition in Tokyo progress as one of the Eastern BUSINESS PAGE 7 Partnership six PAGE 5 Image source: neweasterneurope.eu Georgian Women’s Path Justice Minister: There Is No More Ill-Treatment of Prisoners to Leadership

BY THEA MORRISON

eorgia’s Minister of Justice, Thea Tsulukiani, has said that the ill- treatment of people in the coun- try’s penitentiary institutions is now “something of the past.” The BUSINESS PAGE 10 GMinister made the statement after the European Committee for the Prevention of Torture and Handling Frozen Confl icts: Inhuman or Degrading Treatment (CPT), an anti-torture committee of the Council of Europe, the Economic Angle published a positive report on Georgia. The Minister stated at a special press-confer- BUSINESS PAGE 12 ence that the legislative changes that have been implemented under the current government are Mtatsminda Elections: A positively evaluated in the report, which is based on the CPT delegation’s visit to the country on Look beyond the Numbers September 10-21, 2018. Continued on page 15 Image source: Shutterlock POLITICS PAGE 14 Charlie Chaplin in Tbilisi CULTURE PAGE 15

Prepared for Georgia Today Business by Markets Asof10ͲMayͲ2019 STOCKS Price w/w m/m BONDS Price w/w m/m BankofGeorgia(BGEOLN) GBP17.00 Ͳ0,2% Ͳ2,1% GEOROG04/21 103.67(YTM4.75%) +0,0% +0,1% GeorgiaCapital(CGEOLN) GBP9.99 Ͳ0,5% Ͳ7,3% GEORG04/21 106.07(YTM3.56%) Ͳ0,0% +0,1% GHG(GHGLN) GBP2.22 +0,9% +8,8% GRAIL07/22 107.45(YTM5.16%) Ͳ0,1% Ͳ0,2% TBCBankGroup(TBCGLN) GBP17.00 +5,1% +7,5% GEBGG07/23 101.86(YTM5.50%) Ͳ0,1% Ͳ0,0%

COMMODITIES Price w/w m/m CURRENCIES Price w/w m/m CrudeOil,Brent(US$/bbl) 70,62 Ͳ0,3% Ͳ1,5% GEL/USD 2,7432 +1,4% +1,8% GoldSpot(US$/OZ) 1286,05 +0,5% Ͳ1,7% GEL/EUR 3,0801 +1,8% +1,4% GEL/GBP 3,5654 +0,1% +1,1% INDICES Price w/w m/m GEL/CHF 2,7112 +2,1% +0,9% FTSE100 7203,29 Ͳ2,4% Ͳ2,9% GEL/RUB 0,0420 +1,0% +0,2% FTSE250 19366,80 Ͳ1,7% Ͳ0,6% GEL/TRY 0,4582 +1,0% Ͳ3,4% DAX 12059,83 Ͳ2,8% +1,3% GEL/AZN 1,6163 +1,4% +1,8% DOWJONES 25942,37 Ͳ2,1% Ͳ0,8% GEL/AMD 0,0057 +1,8% +3,6% NASDAQ 7916,94 Ͳ3,0% Ͳ0,6% GEL/UAH 0,1048 +2,4% +4,6% MSCIEMEE 162,95 Ͳ3,6% Ͳ5,8% EUR/USD 0,8902 Ͳ0,3% +0,4% MSCIEM 1033,44 Ͳ4,6% Ͳ5,7% GBP/USD 0,7691 +1,3% +0,7% SP500 2881,40 Ͳ2,2% Ͳ0,2% CHF/USD 1,0118 Ͳ0,5% +0,9% MSCIFM 2665,12 Ͳ1,6% Ͳ3,1% RUB/USD 65,2248 +0,2% +1,5% GTIndex(GEL) 1582,68 ͲͲTRY/USD 5,9827 +0,3% +5,3% GTIndex(USD) 1208,13 ͲͲAZN/USD 1,6993 +0,3% Ͳ0,0% GEORGIA TODAY 2 NEWS MAY 14 - 16, 2019 Georgia to Get around

@entrepreneur.ge Gamarjoba! I’m the Editor-in-Chief of the Georgian edition of $40 mln from the IMF Entrepreneur magazine and I’m here to share the top weekly Entrepreneurial news with you:

Georgian honey is moving beyond the borders of the local market. Jani (ჯანი) is a brand offering fruit and dried fruit dipped in honey, a pioneer Georgian brand in overcoming export issues related to the East. The 100% natural product was launched in Kutaisi by Kristefore Darchishvili along with his uncle and friends, and rapidly obtained popularity on the Georgian market. After active communications with Chinese companies, the brand introduced its products at an exhibition in the Biltmore Hotel and caught the eye of exporters. The product is certifi ed and has received positive results in every regard.

A novelty on the Georgian beer market, the alcohol-free rose canina fruit beer from Shengeli Tokhosashvili is soon to be introduced. A traditional drink for Kists, production was catalyzed by a desire to give wider audiences the chance to try it. The factory in Pankisi is already ready, supported by a grant received within the scope of ‘Enterprise Georgia’. Non-fi ltered beer under the ‘Kisturi’ brand name will be sold in Pankisi, followed by Kakheti and Tbilisi. The enterprise is to start operating at the end of May.

GWS Company, one of the fi rst wineries in pleting the fourth review of the ongoing ani, National Bank Head Koba Gvenetadze BY THEA MORRISON Georgia to offer bottled wine, has program in Georgia," she said. "This agree- and the Prime Minister of Georgia, introduced the premium-quality TAMADA ment needs to be approved by the Board Mamuka Bakhtadze. wine in refreshed packaging. The new-look of Executive Directors of the IMF, which Matchavariani said at the joint press- wine will be available for consumers from eorgia will get around $40 discusses Georgia's issue in June of the conference that Georgia's economic June. The premium line collection: Grand million from the Interna- current year. Successful completion of this growth projection for the current year Reserve and Qvevri were introduced two tional Monetary Fund review will result in giving Georgia 30 is 4.6%, adding it is remarkably high for years ago. The majority of TAMADA (IMF). million SDRs (about $41.6 million)." the region and reaffi rms the effective- vineyards are 15 years old, while others are The statement was made She noted that in the framework of the ness of the reforms carried out by the 25. Since 2015, TAMADA has won 59 Gon May 13 by the IMF delegation head "Enhanced Financing Mechanism", the Georgian authorities. medals, 7 double golds among them. in Georgia, Mercedes Vera-Martin. total reimbursement for Georgia will “I believe this trend will continue on Follow the Entrepreneur Georgia Instagram page to get the latest updates from "As a result of productive discussions, reach $207.9 million. the basis of the ongoing program and Georgian Entrepreneurs. For doing business with Georgian Entrepreneurs, write us on the Georgian government and the IMF The IMF mission has already met the the economic dynamics of our country,” [email protected] mission reached an agreement on com- Minister of Finance, Ivane Matchavari- the Minister said.

GEORGIA TODAY 4 BUSINESS MAY 14 - 16, 2019

Georgian Economy Strong, Infl ation Low, Short-term Consumer Credit Declines The fi rst set of variables that have had a BY DAVIT KESHELAVA REAL AND NOMINAL signifi cant positive effect on our forecast AND YASYA BABYCH EXCHANGE RATES EXPERIENCED relate to national currency deposits in MODERATE DEPRECIATION commercial banks. In March, all types of The real effective exchange rate (REER) national currency deposits, from the most depreciated by 0.3% relative to April, and SET-PI has updated its forecast of liquid - currency in circulation (up by by 0.1% relative to the same month of the Georgia’s real GDP growth rate for 18.9% yearly) - to the least liquid - time previous year. The depreciation of the the second quarter of 2019. Here deposits with a maturity of more than 12 REER is typically associated with reduced are the highlights of this month’s months (up by 31.9% yearly) - experienced value of the domestic export in the very release: double-digit growth in annual terms. The short-run period and gaining competi- I largest yearly increase was again observed tiveness of export production in the for- HIGHLIGHTS for national currency time deposits with eign markets later. Notably, the lari real • Geostat has released its GDP growth a maturity of less than 3 months, which exchange rate appreciated with respect estimate for the fi rst quarter of 2019. The increased by 53.1%, relative to the same to the national currencies of two major Q1 growth stands at 4.7% , which is only month of the previous year (but decreased trading partners – Turkey and Russia. 0.4 percentage points above the recent by 4.4% monthly). Overall, national cur- The GEL/TRY and GEL/RUB real ISET-PI forecast. rency total deposits increased by more exchange rates appreciated compared to • ISET-PI’s forecast of real GDP growth than 19.3% yearly. National currency the same month of the previous year by for the second quarter of 2019 stands at deposit-related variables had a positive rency, which is created by commercial petroleum and petroleum gases (declined 10.9% (appreciated by 2.6% monthly) and 4.7% - up from 4.6% in April. contribution to our GDP growth projec- banks - banks accumulate the savings of by 37.0%). The great majority of the other 2.3% (depreciated by 1.5% monthly) • Based on March data, we expect annual tion. individuals, fi rms and government enti- main product categories experienced respectively. In contrast, the lari real growth in 2019 to be 4.6% in the worst- Furthermore, the total volume of foreign ties, and provide funds for investment notable yearly increase, but still not enough exchange rate experienced a slight depre- case or “no growth” scenario, and 5.6% currency deposits went up by 15.6% com- projects and consumption that contribute to outweigh reduced import of the petro- ciation against the US dollar and the euro in the best-case or “average long-term pared to the same month of the previous to higher GDP growth. Thus, rapid expan- leum and petroleum gases. As a result, (falling on average by 0.7% and 0.8% growth” scenario. Our “middle-of-the year. The dollarization rates of non-bank sion of monetary aggregates contributed the trade balance improved by 25.0%, respectively in monthly terms). Overall, road” scenario (based on average growth deposits and loans decreased in monthly positively to our GDP growth forecast. compared to the same month in 2018. It REER-related variables had a small neg- over the last four quarters) predicts 4.9% terms in March of 2019. Dollarization of Moreover, the annual infl ation in March is notable that net export is improving in ative contribution to the Q2 real GDP real GDP growth in 2019. deposits fell by 0.3 ppt, amounting to 2019 constituted 3.7%, which was only yearly terms since January 2019 (see Fig- growth projections. • According to the recent Monetary 62.0% (74.7% and 52.2% for individuals slightly higher than the 3% NBG target. ure 3). Policy Report (May 2019), the National and legal entities, respectively), while It is notable that increased excise tax on Furthermore, remittances and tourism, CREDIT RESTRICTIONS Bank of Georgia’s (NBG) forecast of real loan dollarization declined by 0.3 ppt to tobacco (one-time factor) was the main together with foreign direct investment REDUCED SHORT TERM GDP growth remained unchanged at 5% 56.5%, compared to February of 2019. contributor to the annual infl ation rate (FDI), are among the main sources of CONSUMER CREDITS in 2019. According to NBG, annual real According to our model, deposit dollari- (contributing 1.3 ppt. to the annual infl a- foreign funds coming into Georgia. In As we mentioned in our previous report, GDP growth this year will be driven by zation had a small, but positive impact tion rate). In addition, the annual core March, remittances increased by 4.5% new lending regulations could potentially improved trade balance, and increased on the real GDP growth. infl ation stood at a low 1.2%. This is good relative to the same month of the previ- have a negative impact on short-term consumption and investment spending news for the Georgian economy, as low ous year. Once again, the main contribu- growth predictions. The average annual supported by capital expenditures of the MONETARY AGGREGATES core infl ation typically translates into tors to this growth were the United States interest rates on the short-term consumer government and a moderate growth of CONTINUE PATH OF GROWTH lower overall infl ation in the future. (increased by 13% yearly, contributing 1.3 loans at fi rst declined from 20.0% in loans. The other set of variables that had a sig- ppt to the annual growth fi gure), EU December 2018 to the 12.7% in February According to Geostat’s recent release, nifi cant positive effect on our forecast is EXTERNAL STATISTICS (increased by 18.9% yearly – Italy, Greece 2019, but then increased notably to 17.5% the offi cial estimate of growth for the fi rst related to currency in circulation. The SHOW POSITIVE SIGNS and France were the main drivers of this in March 2019 (long-term consumer credit quarter of 2019, which is based on VAT Monetary Policy Committee of the March 2019 showed strong growth in the growth fi gure) and Ukraine (increased had a similar pattern). In March 2019, the taxpayers’ turnover data, now stands at National Bank of Georgia met in May, wider region. According to the estimates by 34.7% yearly), while the reduction of total volume of commercial banks’ con- 4.7%. The newly estimated Q1 fi gure is and decided to leave the monetary policy for March 2019, most of the countries in money infl ow from Turkey (-1.9 pp.) and sumer credit increased by only 2.7% yearly higher than initially anticipated by the rate unchanged at 6.5%. However, all the the region showed signifi cant improve- Russia (-2.2 pp.) had a negative impact and even declined by 1% monthly. How- ISET-PI forecast. Consequently, ISET-PI’s monetary aggregates, including the larg- ment compared to the same period in the on the growth estimation. The number ever, the volume of commercial banks' second quarter forecast has also been est - broad money (M3) - experienced previous year. The Armenian economy of all types of international visitors in short-term consumer credits declined by revised upward to 4.7%. The upward revi- signifi cant yearly growth (M3 aggregate reached a remarkable 7.6% annual growth. March of 2019 increased by 4.6% year 59.8% in yearly terms, and increased by sion of the forecast is due to the increased rose by 18.3% yearly). The largest increase Furthermore, Russian and Azerbaijani over year and exceeded 619,300 people. only 2.4% monthly (the main driver behind national currency deposits, continuing was observed for monetary aggregate M1 economies advanced by 2.1% and 3% Out of these, 65% were classifi ed as tour- this negative trend being consumer loans money supply growth in Georgia and (narrow money), which went up by 20.5% respectively (see Figure 2). Thus, improved ists, and the growth rate of these visits in the national currency). Whereas, the improved external statistics. However, relative to the same month in the previ- economic conditions in the wider neigh- reached 4.3% annually. As Georgia is volume of commercial banks' long-term restricted consumer credit and depreci- ous year. Moreover, currency in circula- borhood stimulated the Georgian economy among those countries in which remit- consumer credits increased by 16.1% ated real effective exchange rate put a tion itself increased by 13.4% in yearly through trade, remittances, and tourism tances and income from tourism form an yearly and declined by 1.3% monthly. downward pressure on the forecast value. terms. channels. However, economic and polit- important part of households’ income, Overall, the variables related to consumer It is noteworthy that in a modern econ- ical instability of the countries situated their growth had a positive impact on the credit have had a slightly negative impact THE VOLUME OF DEPOSITS omy, the greatest proportion of a money in the wider region (e.g. Turkey and Iran) projected real GDP. on the growth forecast. WENT UP IN YEARLY TERMS supply is in the form of deposited cur- are potential external threats to the Geor- gian economy that might not be taken into consideration in our model yet. Overall, Georgia’s external statistics continue to improve. In March of 2019, total exports grew by 12.3% year over year (slightly decelerated growth rate com- pared to the previous year), driven by the export/re-export of copper and copper ores (31.0% yearly), export of ferro alleys (22.5% yearly), re-export of motor cars (59.9% yearly) and export/re-export of packaged medicines (114.5% yearly). Among the external trade developments to watch is the decline in the import of merchandise goods. In the reporting period, imports of merchandise goods decreased by 12.3%, mainly driven by GEORGIA TODAY MAY 14 - 16, 2019 BUSINESS 5 Eastern Partnership Celebrates 10 Years fi eld for investments and business, as well as improve BY AMY JONES the capacity of Partner Countries to take advantage of the trade opportunities within the EU and with each other.” his year, the Eastern Partnership (EaP), As such, the EU has contributed over €348 mil- celebrates the tenth year since its lion towards the EU4Business initiative since 2009, launch on 7 May 2009 at a European supporting over 70,000 enterprises and creating Union Summit held in Prague, Czech 28,000 new jobs. In addition to monetary support, Republic. On 13 - 14 May, Georgian the EU has given policy advice on macroeconomic TPrime Minister Mamuka Bakhtadze, along with stability and macro-fi nancial assistance to partner representatives from fellow partnership countries countries. and the European Union, is in Brussels to attend Increasing trade between partner countries and events marking the anniversary. the EU is also a priority. Georgian exports to the EU The EaP is an initiative between the European are increasing: the EU now accounts for 27% of Commission, EU members states and the six par- Georgian Trade. Indeed, the EU has invested €233 ticipating countries: Armenia, Azerbaijan, Belarus, million into the construction of the Anaklia Deep Georgia, Moldova, and Ukraine. The partnership Sea Port that will enable goods to pass directly was formed to encourage economic integration between the EU and Georgia. The EU has also aided and convergence with the EU, strengthen energy more than 63,000 SMEs, microenterprises and farm- security, and to promote democracy and good gov- ers to receive loans in Georgia, trained more than ernance. 250,000 farmers, and helped 1,600 farming coop- On 13 May, the annual Eastern Partnership For- eratives with fi nancial and technical support. eign Affairs Ministerial Meeting took place with Whilst speaking at a press briefi ng on May 10, the EU’s six Eastern partners, 28 EU member states Georgian Prime Minister Mamuka Bakhtadze stated and Johannes Hahn, the Commissioner for Euro- that the relationship between Georgia and Europe pean Neighborhood Policy and Enlargement Nego- “is at an all-time high,” whilst underlining that it tiations. needs “special care, nurturing and deepening.” The meeting will discuss the 20 deliverables of Aside from the economic advantages of the EaP, the 2020 work plan. Adopted in 2017, the plan aims Georgia benefi ts from territorial protection offered to benefi t citizens throughout the region “through by the EU, an initiative founded only one year after working towards stronger economies, stronger the 2008 Russian-Georgian war. Although Russia governance, stronger connectivity, and stronger has criticized the Eastern Partnership as an expan- societies.” sion of the EU’s sphere of infl uence, EU leaders Economic development and market opportuni- have underlined the freedom of EaP members to ties deliverables will be discussed at the meeting. choose their own paths. A document, published in 2017 by the European Along with the meeting on 13 May, various other Commission regarding the 20 deliverables, listed events and activities will take place across the year the economic development priorities as: support- to celebrate the EaP initiative and its successes. ing EaP Partner Countries to “move towards diver- On Monday evening, Donald Tusk, President of sifi ed and vibrant economies, to create jobs in new the European Council, hosted a celebratory dinner sectors, attract investments and foster employabil- for the six EaP partner countries heads of state. In ity; to support macroeconomic stability; to drive addition, Jean-Claude Juncker, President of the economic transition process forward with a few to European Commission, is to host a conference on create an attractive environment, a level-playing Tuesday. The 2019 Zero Compromise Wine Festival

n May 10, with the support of the strong presence. Association of Natural Wine and The number of participants and wine makers is LEPL National Wine Agency, Geor- growing by the year and the festival has proved gia hosted the natural wine festival itself a window for new wine cellars to boost the “Zero COMPROMISE”. This year’s popularity of Georgian Wine abroad. festivalO was distinguished for its many guests, who The day before the festival there was a presenta- came especially from all over the world, among tion of Simon J. Woolf’s book ‘Amber Revolution: them importers, winemakers and sommeliers. How the world learned to love Orange Wine,’ a The 2019 festival stood out for two special guests book devoting a large discussion to Georgian Wine. in particular- the renowned French wine Magister Isabelle Legeron, the largest international Natural Wine Festival ‘Raw Wine’ founder, and Josko Gravner, legend of Italian Wine. Zero COMPROMISE was represented by new growers like Alexander’s Wine Cellar , Zhuka-Sano Wine Cellar, which were among over 70 cellar par- ticipating in the festival. Popular cellars such as the Oda family Winery, Gvardzelashvilis Marani, Iago’s Winery, Okro’s Wines and others also had a GEORGIA TODAY 6 BUSINESS MAY 14 - 16, 2019 Media Session Hosted by IDS Borjomi Georgia at Rooms Hotel

gia, briefed the guests about the results located. Thus, the preservation of this BY KETEVAN KVARATSKHELIYA of the Borjomi forest restoration pro- area is as vital for locals as it is for gram, ongoing since 2011, while Marine guests.” Sujashvili, Deputy Head of Forest Main- Cholokashvili then focused on the CSR nvironmental protection is a tenance Department at the National project, launched several years ago. “[It matter of paramount impor- Forestry Agency (NFA) discussed in is] a platform through which we work tance on the modern world’s detail important environmental issues in three directions: environmental pro- agenda. Various Georgian and explained the right technique of tree tection, education and sport, all of them companies are aware of their plantation. being mostly centered around the Bor- Ecorporate social responsibility (CSR) “Environmental protection of the ter- jomi region. The location has been cho- and join a number of campaigns in this ritory adjacent to Borjomi represents sen on purpose, as our country certainly respect. IDS Borjomi Georgia is no excep- one of the most valuable and important needs decentralization and there is a tion. Within the scope of the CSR project directions for IDS Borjomi Georgia in lack of important campaigns in the regions #BorjomiCSR, on May 10, it hosted the terms of Corporate Social Responsibil- of Georgia,” she said. She also accentu- representatives of media platforms at ity,” stated Cholokashvili. “Borjomi is ated the importance of education for Rooms Hotel Tbilisi at a media seminar a ‘postcard’ destination for our country raising public awareness and developing on aspects of environmental protection. with its incredible nature. It is also a different sports for bringing up healthy Nitsa Cholokashvili, Head of Public territory where the main deposits of and energetic generations. was launched in Borjomi catering for come them. Sujashvili focused on the Relations Division at IDS Borjomi Geor- mineral waters that we produce are Cholokashvili said a training center 400-500 students annually, where the signifi cance of investigating the area youngsters are able to acquire knowledge prior to the start of the plantation, going in academic subjects, as well as benefi t on to clarify the methods and the tree from informal education classes. varieties that have to be used in differ- The Head of the Public Relations Divi- ent areas during plantation. She also sion of the company stated that along gave particular examples and defi ned with the Ministry of Environmental Pro- the methods of proper irrigation. tection and Agriculture of Georgia, IDS Finally, she outlined the importance of Borjomi Georgia has been engaged in the contribution of large companies in the Borjomi forest restoration project terms of environmental protection. for three years and regularly participates “It is vital that IDS Borjomi Georgia in the tree planting programs. be involved in the social project of for- “What is crucial in this case is that the est restoration,” she said. “And the fact initiative not only involves the planting that the company follows all the rules of trees, but that we take part in the and regulations is of paramount impor- ongoing processes. For fi ve years we tance.” have taken care of each sapling and fol- The presentation of the speakers was lowed all the rules to ensure their healthy followed by a discussion with the media. growth.” At the end of the session, Sujashvili and Marine Sujashvili informed the media Cholokashvili called upon the attendees representatives about the challenges of the event to join the campaign and faced by the nature and forests of Bor- travel to Borjomi on May 18 to take part jomi today and explained ways to over- in a tree planting.

GWS Introduces a Refreshed Label for One of Its Core Brands OLD TBILISI true spirit of the old town and add a and produces wine that serve as popular modern twist to it. gifts for tourists to take back home. Company Brand Manager Salome Both tourists and locals should stay Dolidze explains the rationale behind tuned for the introduction of new wine. the label: “The updated label highlights The GWS CEO announced that he is our core values and is a tribute to the very enthusiastic about the company’s stunning architecture and hidden treas- plan to launch a new range of organic ures of the old town. Our labels convey wines from its own estate. the emblematic traditional houses of the Old Tbilisi district in memory of an old ABOUT GWS tradition when inhabitants used to sing, For more than 20 years, GWS has been BY MARIAM DIASAMIDZE dance, party and drink on the balconies one of the leading businesses in Georgia of Old Tbilisi. We desire our wines to and worldwide. GWS produces around express the joyful tradition of Georgian four Million bottles of premium wines, eorgian Wines & Spirits hospitality and conviviality.” made exclusively from its own vineyards, Company (GWS), one of Precisely because OLD TBILISI is a 100% of the harvest being hand-picked. the oldest and best-known symbol of Georgian values such as hos- In the last few years, GWS was awarded producers of handpicked pitality, friendship and loyalty, the wine with up to 160 awards and distinctions wines in Georgia and a is best enjoyed with family and friends and Rkatsiteli- Mtsvane. These diverse ness to the label. The updated label will by prominent national and international Gconstant provider of high quality prod- in a festive environment. Wine lovers can set of wines will now be placed in bottles stand out from the competitors and be competitions. The high profi le of the uct, is excited to launch a refreshed label fi nd the wine that they like among the covered with diverse and colorful labels. more relatable to both Georgian and wines from GWS are fueled by the qual- for OLD TBILISI, hitting the shelves seven diverse varieties of OLD TBILISI The introduction of a more colorful international wine lovers. This is impor- ity of its vineyards and the know-how June 2019. The new label refl ects the white and red wines: Alaverdi Red and and vibrant touch to iconic Tbilisi bal- tant since the brand actively exports its of the team. company’s approach to representing the White, Alazani Red and White, Saperavi, conies and terraces adds joy and happi- products beyond the borders of Georgia Cheers! გაგიმარჯოთ! SUBSCRIBE!

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[email protected] +995 32 229 59 19   Tel: (995 32) 2 45 08 08 10 Galaktion Street E-mail: [email protected] GEORGIA TODAY MAY 14 - 16, 2019 BUSINESS 7 On the Success of the ‘Georgia - Homeland of Wine’ Exhibition in Tokyo modern technologies. such, the unique artefacts presented as yphonic songs at the ceremony. The closing of the exhibition ‘Georgia part of the exhibition, along with Geor- According to Mekhuzla, within the - Homeland of Wine’ was celebrated gian wine with such a long history gen- framework of the ‘Georgia - Homeland with a ceremonial reception. erated special interest, which means that of Wine’ project, similar expositions will "In 2014 we started implementing the our project’s aim to promote Georgian be implemented in other markets stra- most important state project ‘Georgian wine and become increasingly demanded tegic for Georgia. Vine and Wine Culture Research’, said on the world's important markets, has The project was implemented in part- the Head of the National Wine Agency, been achieved.” nership with Sony Music Communica- Levan Mekhuzla. “As a result of four The event dedicated to the closing of tion and TOPPAN. years of work, the study confi rmed that the exhibition also hosted representa- ‘Georgia - Homeland of Wine’ is organ- Georgia is the homeland of wine and tives of the diplomatic corps. ized by the National Wine Agency and that we are the country where vine was The dinner was held in the traditional Association ‘Georgian Wine,’ imple- fi rst cultivated. International recognition Georgian way, lead by the fi rst Georgian mented by the Ministry of Environment of Georgia as the homeland of wine, Odzeki, Tochinoshini. The guests received Protection and Agriculture of Georgia, 8,000 years of continuous history of information on the history of the concept with the support of Intellectual Property viticulture and winemaking, has increased of “Tamada” and its signifi cance. Japa- Center ‘Sakpatenti,’ Ministry of Educa- interest in Georgia. Japanese people have nese singers performed some of the most tion, Science, Culture and Sport and a special respect for traditions and, as distinguished samples of Georgian pol- National Museum.

he exhibition ‘Georgia - Japanese visitors. Homeland of Wine’ in Ter- Georgian wine and its history, which rada Warehouse, Tokyo, has started 8,000 years ago, were especially ended. The exhibition interesting for the Japanese. The exhibi- within the project of the tion combined unique archaeological Tsame name held in the capital of Japan exhibits as well as aiming to present the during two months hosted thousands of uniqueness of Georgian wine culture via

Third International Cyber Security Festival at the University of Georgia

yberspace carries various and immense Participants of the event included the representa- loads of information, including that tives of public and private sectors Greennet, ICANN concerning the private lives of people. and the Cyber Security Bureau. Society’s increasing dependence on Within the framework of the event, for the fi rst information and communications time in Georgia, the ‘DNSSEC Security for Domain technologiesC creates opportunities to be exploited Name Systems,’ as well as the following issues, by uninvited guests. The threat of cybercrime to were discussed: business, public and non-governmental structures • Cyber security ecosystem in Georgia; is intensifying because organizations accumulate • Cyber threats and the role of the state; and store information in various storage that could • Protection of critical infrastructure; provide criminals with entry points into internal • Cybercrime and international law; networks. • Personality protection in internet space; On May 3, the School of Science and Technology • Internet and children. of the University of Georgia, in cooperation with The University of Georgia emphasizes the rele- Internet Development Initiative, hosted the third vance of cyber security and actively tries to raise International Festival dedicated to Cyber Security. awareness on cyber security issues. GEORGIA TODAY 8 BUSINESS MAY 14 - 16, 2019 DCFTA Implementation: Partnership, Push-backs & Potential Conference The session ‘DCFTA and SME Strategy BY MARIAM MERABISHVILI implementation in Georgia’ focused on SME conditions today, surveying how they operate, what they export and on he implementers of the EU- raising awareness of how SMEs can ben- funded project ‘Georgia on efi t from the DCFTA. The discussion the European Way: Effec- included what progress has been achieved tive Model for DCFTA and in Georgia-EU trade relations since sign- SME Strategy Implementa- ing the DCFTA, what kind of products Ttion’ hosted the project’s closing confer- the country exports to the EU, and the ence, ‘DCFTA Implementation: Partner- long-term progress that can be expected. ship, Push-backs and Potential’ at The main obstacles for SMEs, such as Holiday Inn, Tbilisi, on May 8. getting the certifi cates needed to export, After signing the Association Agree- qualifi ed employees, fi nancial problems, ment with the EU in 2014, a crucial part language barriers, lack of laboratory of which is the Deep and Comprehensive centers, less active approach, were noted Free Trade Area (DCFTA), Georgia has and it was advised that “Georgia should come closer to integration into the EU continue such projects,” and “needs to market. The DCFTA simultaneously do more for further benefi ts.” represents both an opportunity and chal- The last panel focused on ‘DCFTA lenge for Small and Medium-sized Enter- Implementation in Georgia, Moldova prises (SMEs), activating institutional and Ukraine,’ looking at the varied chal- and regulatory reforms and helping lenges and perspectives and the impact approximate Georgian standards to those on ordinary citizens. Panelists talked of the EU. Yet, it demands change in co-funded by the Lithuanian Develop- of Georgia; and others. They congratu- delivering the right information about about what impact the DCFTA has on production processes as well as regula- ment Cooperation and Democracy Pro- lated Georgia on such a great project the DCFTA and EU, and the advantages, the countries’ economies, what progress tions of activities. As such, during the motion Program and the Slovak Offi cial and highlighted the EU’s role as the big- benefi ts, energy effi ciency, EU directives, has been achieved in the framework of implementation, Georgia faces many Development Assistance ‘SlovakAid.’ gest trade partner of Georgia. They talked regulations, role of cooperatives and the Eastern Partnership document ‘20 advantages as well as various challenges. The project’s closing conference pre- about the standards Georgia has to advocating for reforms and improve- Deliverables for 2020,’ and emphasized The EU-funded project ‘Georgia on the sented results in three main panels: 1) approximate to those of the EU, and ments to the implementation process. what needs to be done further. European Way’ was launched in 2017 and civil society engagement in economic about the EU’s support in info-sharing, Results showed how CSO awareness had Overall, the topics discussed at the con- lasted until spring 2019. The main aim of development, 2) DCFTA and SME strat- fi nance, entrepreneurship support, train- increased (before the project only 12% ference showed the real partnerships, the project was to raise awareness about egy implementation in Georgia and 3) ing programs for companies and more. was very familiar with the DCFTA, and push-backs and potential of DCFTA the opportunities and advantages pro- DCFTA implementation in Georgia, The civil society engagement panel after 83%) but spotlighted the need for implementation. Georgia has come steps vided by the DCFTA between Georgia Moldova and Ukraine. looked into the current position of civil more trainings and consulting. At the closer to integration into the European and the EU. During the process, imple- The conference was opened by Gie- society organizations (CSO) and their conclusion of the project, the main results market; however, it has much more to do. menters tried to increase the crucial role drius Puodziunas, Ambassador of Lith- capabilities to work on economic issues, concluded that: 1) after the right com- Such projects are vitally important, the of Georgian civil organizations in a nation- uania to Georgia; Pavel Vizdal, Ambas- helping the Georgian government and munication and info-sharing, people had moderators and panelists agreed, and wide DCFTA/SME communication cam- sador of the Slovak Republic to Georgia; SMEs to effectively access the EU single changed their standings towards the further awareness needs to be raised paign to help local SMEs access the EU Carl Hartzell, Ambassador of the Euro- market. The panelists talked about expe- DCFTA, forming perspectives and break- about the real benefi ts of the DCFTA for single market through their strong capa- pean Union to Georgia; Khatia Tsilosani, riences and good practices for civil soci- ing the old stereotypes; and 2) civil soci- people throughout Georgia to help SMEs bilities. The project was funded by the Deputy Minister of the Ministry of Envi- ety organizations seen during the project, ety organizations should be a key link do their jobs more effectively and to those European Neighborhood Instrument and ronmental Protection and Agriculture including their workshops, the act of between government and SMEs. standards that the EU has and requires. Future Agro Challenge Held May 10-12 in Tbilisi segment, has initial market traction or BY SAMANTHA GUTHRIE a Minimum Viable Product (MVP), and has unique, strong and applicable tech- nology or innovation. he 2019 Future Agro Chal- In the weekend’s competition, Georgian lenge Georgia was held on agribusiness startups participated in a May 10-12 at Tbilisi’s Tech 48-hour hackathon after which the eight Park. fi nalist teams pitched their agribusiness Future Agro Challenge is concepts to a panel of judges. The winning Tan international competition that aims team, Qvevri XYZ, was deemed “Agri- to foster a community of startups, farm- preneur of the Year.” Qvevri XYZ was ers, manufacturers, distributors, and what selected by the judges to represent Geor- the organization calls “agro-visionaries.” gia at the Future Agro Challenge Global The competition brings together stake- Championship, a central event of the Global holders from countries worldwide to start Agripreneurs’ Summit, which will be held a global conversation, focused around this year September 7-11 in Thessaloniki, discovering fundable food, agricultural Greece. Participation in the Global Cham- technology, agro-tourism and agriculture pionship will grant the national winner innovators and “agripreneurs.” access to world class mentors, investors, This is the fi rst year Georgia has par- potential clients and new market oppor- ticipated in Future Agro Challenge, sup- tunities, along with winners from 59 other ported by the Tbilisi Startup Bureau, countries. The national winner was also Georgian Innovation and Technology granted a cash prize. Agency (GITA), and Beeline. Each year, The grand prize winner, Qvevri XYZ, there are different categories delimited is a young Georgian company that has by Future Agro Challenge. This year, decided to take on a national icon, the there are nearly 30 categories, ranging qvevri, a clay amphora-shaped vessel from the more traditional: agro tourism, traditionally used for fermenting wine. farmers’ incomes, indoor agriculture, While the qvevri wine-making method and food traceability and safety, to the was granted the status of Intangible Cul- Image source: Future Agro Challenge innovative: dairy alternatives, drones tural Heritage by UNESCO in 2013, Qvevri blended with modern technology to ture in recent years, received a GEL 2000 dation for Freedom South Caucasus, and robots, food e-commerce, and pre- XYZ argues that the 8000-year-old “improve its structure and quality, yet ($730) cash prize, and SoilQuick Tester, Caucasus University, ISET - International cision agriculture. “primitive methods of production,” make [keep] its unique characteristics.” a hardware and software product that School of Economics, Agro Solutions, Participants in the Future Agro Chal- modern qvevris “inaccessible, inconsist- Two other ventures were recognized helps quickly test the soil, which received Wolt, Agricopter, Gogra.ge, Georgian lenge are owners of an agribusiness ent and not of good quality.” They offer at Sunday’s fi nals: Insect Killer, a com- technical assistance from the Georgian Farmers' Association, Enterprise Geor- venture that has existed for less than fi ve another approach: 3D printed qvevris. pany that manufactures a device to catch Farmers’ Association. gia, Georgian National Tourism Admin- years, which claims an innovative, scal- The company pledges to retain elements and kill the brown marmorated stink Future Agro Challenge Georgia’s part- istration, and the Tbilisi Night Economy able clear business model, has a customer of the traditional qvevri-making process, bug that has ravaged Georgian agricul- ners are the Friedrich Naumann Foun- Development Project. GEORGIA TODAY MAY 14 - 16, 2019 BUSINESS 9 MJERA is a Georgian Word and it Means “I BELIEVE”

JERA is willing to support new music we listen and dance to, the books we read, MJERA supports all industries, because all indus- and MJERA drives you to fi nd your own, unique projects to become real, like nat- the houses we build and live in, the nature and tries are creators. It is never too early or too late, way to express yourself, via creativity, art and pas- ural forces (4 elements) that cre- everything else that surrounds us – in essence is so MJERA encourages all ages. Nothing in life is sion for distinctive thinking and positive change. ate new life. MJERA believes that creativity, passion and art. Using unique ways of set in stone and MJERA wants to unfold what’s Mlife is art. The food we eat, the connecting different industries in artistic way, hidden inside. You don’t have to follow a system MJERA in US! Agro Investment Business Forum Takes Place in Zugdidi emphasis on agriculture, is the only way Minister Levan Davitashvili also deliv- prises were created, and 45 existing enter- bilitation of tea plantations over an area BY THEA MORRISON to ensure Georgia's success. A strong ered a speech, emphasizing the agro- prises were expanded and recovered. of over 450 hectares has been carried Samegrelo and strong regions stand for a projects implemented by the State, which In addition to this, within the same out throughout. strong and prosperous Georgia," he added. contribute to the development of agri- project, more than 2100 new jobs have Davitashvili noted that such forums he western Georgian city The Prime Minister said the govern- business in the country and allow local been created in the Samegrelo region promote active communication between of Zugdidi hosted the Agro ment aims to not only replace import, farmers to increase production. through these enterprises. New gardens the State and the private sector and pro- Investment Business Forum but to transform Georgia into an exporter The Minister said within the state-ini- and orchards have been laid on more vides the possibility of development of on Saturday, which focused country. tiated Unifi ed Agro Project, 25 new enter- than 500 hectares of land and the reha- existing agro-production. on the development of the Tregions and producing ecologically clean products in the country. The forum was opened by the Prime Minister of Georgia, Mamuka Bakhtadze, Minister of Environment Protection and Agriculture, Levan Davitashvili and Samegrelo-Zemo Svaneti Region Gov- ernor, Alexander Motserelia. In his speech, the PM focused on the importance of promoting enterprises which produce ecologically clean and organic products. According to him, step-by-step, the government will abol- ish taxes for such enterprises. “The world must come to know us as a country manufacturing ecologically clean products, and that is what will help us defeat poverty and to advance Geor- gia's agriculture sector to a new level of development,” he said. Bakhtadze noted the Government’s new initiative, Plant the Future, raises the upper limit of co-fi nancing from the State from GEL 100,000 to 250,000 GEL, noting it will promote local production of agricultural products. The Prime Minister also spoke about the importance of tea production poten- tial, saying a decision has been made to further enhance support in this direction. “The Samegrelo region has great poten- tial to become a successful region in agricultural production, especially with its various kinds of grapes,” he said, going on to highlight that without overcoming poverty, Georgia cannot be successful, and developing agriculture plays an enormous role in this regard. “Regional development, with special Image source: PM’s Press Offi ce GEORGIA TODAY 10 BUSINESS MAY 14 - 16, 2019 Georgian Women’s Path to Leadership decided that they could meet with men- in Georgia. We also had a training held tors several times and write policy doc- by the photographer of the former pres- uments. There is no other idea behind ident. our project: it is just a network in which people support each other. We are a team WHAT CHALLENGES ARE of around fi ve people working on the YOU ENCOUNTERING? coordination of these exchanges. The selection of the girls was tough. We Our project includes 17 young ladies had more than a hundred applications with very different profi les who are and we took only 17 girls. It is also hard promising in their own fi elds. The other to manage the exchanges between the part of the group is made up of 17 already girls and the mentors because they are successful women who are mentors of very busy, though for that reason our each of the 17 girls. Some of them are project is very fl exible. entrepreneurs, journalists, theater direc- We need women to believe in them- tors, or are working for the government, selves and believe that they are great such as Anna Dolidze, Doctor of law and leaders. Most of the women do not believe Non-Judge member of the High Council that they are qualifi ed or strong enough of Justice, Tina Khidasheli who was the and as such lack confi dence. For exam- Minister of Defense of Georgia in 2015- ple, Eka Mazmiasvili never realized that 2016 and Eka Mazmiasvili, Doctor of Arts she was the only female director of Management and Director of the Mar- theater in Georgia. Women are very janishvili Theater. humble, they want to achieve a lot and We organize several personal meetings do not always realize how much they between the girls and their mentors. One have already achieved. It is all about the of the aspects is to go to the mentors’ attitude. offi ce to see their everyday work. They Photo Source: WEN share their own experience and explain WHAT IS YOUR MAIN worldwide, and Georgia is no different working in parliament are not in the top how they achieved what they did. BY GABRIELLE COLCHEN ACHIEVEMENT AND WHAT in this regard. On the one hand, we know positions where decisions are made. Each of the 17 young participants have ARE YOUR FUTURE AMBITIONS many examples of strong women from Another example is the difference to write a policy paper with concrete FOR THE PROJECT? Georgian history as well today, but we between the wages of men and women, propositions. For example, Diana sug- Our girls are already gathering with the he Women Empowerment can still say that Georgia is quite a mas- which is still extremely high. The issue gested the creation of quotas in politics mentors without our coordination, so Network (WEN) is a project culine society and it can be very hard is especially present in the regions, where to enable women to break ceilings. It is we’ve already managed to create a sus- that unites 17 young ladies for a woman to achieve positions with populations tend to be more traditional. quite a radical proposition but we believe tainable network. and 17 successful mentors decision-making power. Every member We need to understand that gender it is a necessary and temporary measure. The project is also becoming very promoting gender equality of society must have the same opportu- equality is not an idea coming from the Once women enter politics, other women popular and we are facing a lot of demand Tand women leadership in Georgia. It was nities to participate. It is especially hard West: it is inherent to Georgian history will have the opportunity to do the same. from girls who want to get involved in initiated and organized by the NGO for recently graduated students to fi nd and Georgian culture. Sometimes, you have to force the situa- it, which is very positive. No other sus- Center for Progress and is implemented good working positions if they have no tion before it changes naturally. We gave tainable projects of this kind exist in with the support of the Dutch Embassy contact with people already working in HOW WOULD YOU DESCRIBE the proposition to parliament and we Georgia. We would like to grow bigger in Georgia. GEORGIA TODAY had the their fi eld. THIS NETWORK? WHAT ARE THE are waiting for an answer. and supervise more girls. chance to interview Maia Kveladze, Things are already changing in Georgia GOALS OF SUCH A PROJECT? We also had meetings with important In future, we would like to export our Director of the network, and Diana and some young ladies can go abroad to The project was initiated less than a year institutions such as the NATO Offi ce in project to the regions and support girls Khomeriki, a young lady participating study and come back with new ideas. A ago and we have two main goals. The Georgia, the Gender Equality Council there. For now, participants are mainly in the project and working at the Geor- lot of things have been done at the leg- fi rst is to establish a network between of the Georgia Parliament and the National from Tbilisi. Also, we will have new gian Chamber of Commerce and Indus- islative level to ensure equality between female leaders and young ambitious girls, Democratic Institute in Georgia. mentors sharing new experiences next try. men and women, but in practice, the and the second is to facilitate policy We are training the girls to give them year. reality is quite different. It is a problem change related to gender issues. We real- the skills necessary to become leaders. WHAT IS THE SITUATION OF that comes from socially constructed ized that we already have a lot of suc- They have trainings in academic writing Their Facebook page: https://www.face- WOMEN IN GEORGIA? ideas. There is no restriction on women cessful Georgian women and that stu- and leadership. For example, we had a book.com/wen.org.ge/ Equality in the access to opportunities entering politics, theoretically, at the dents who are just fi nishing their studies two-day training on leadership in Baku- The interview has been edited for more clar- for women and men is still an issue level of legislation, but in practice, women could benefi t from their experience. We riani with the former Minister of Defense ity. Shovi Resort Development Plans Aim to Attract $60 mln in FDI ists and visitors coming to this region BY SAMANTHA GUTHRIE of the country.” He pledged increased investment to improve infrastructure and support local businesses. “21 infra- new plan to turn the small structure projects are being implemented, resort village of Shovi in of which 18 are close to completion. It the Racha region into a is essential to maintain momentum in massive tourism complex the construction and rehabilitation of is being led by real estate rural roads,” the Prime Minister con- Adevelopment fi rm Simetria. Simetria is fi rmed. One infrastructure project in the a member company of Capitol Manage- pipeline is the plan to expand the small ment, an investment management and airport in Ambrolauri to accommodate support company. higher tourist fl ows. Bakhtadze claimed Initial speculation over the plans sur- that only 10-15% of the full potential of faced in February, when Simetria signed the region is being realized. “The next a cooperation agreement with the stage will of course involve the reha- Kazakh Business Group, which owns bilitation and development of very the rights to 60% of the territory of the important tourism sites in Shovi and Shovi Resort. Within the terms of the other destinations,” Bakhtadze hinted in agreement, Simetria will take the lead August. in developing the Shovi Resort into a Image source: Shovi.ge Simetria was founded in 2015. Its web- unique, luxury tourist center in Racha. direct investment. ral environment and local conditions. ing in Georgia for new foreign investors. page describes its mission as “to maintain The project is currently in the explor- “The project will arrange for a new The company explains that they aim to The Fund fi nances a maximum of 49% the best architectural environments for atory stage, analyzing the 16 different and unique tourism center in Georgia, create “interesting and original concepts equity and offers managing partners the residence, work, relaxation and enter- mineral waters that the resort claims, which will host about 56,000 high-income distinct from other projects on the mar- option to buyout Partnership Fund shares tainment.” The company develops hotels, and fi nalizing the development plan tourists every year. The Racha region is ket.” at any point. The shares can also be sold residential homes, business centers, for utilizing the balneological and the second poorest region in Georgia, It was announced this past week that on the market. Tourism is a priority sec- parking lots, and retail centers. mountain tourism resources. Expert after Guria. Therefore, attracting tourist negotiations are now underway with the tor for the Fund. Shovi is an alpine health resort perched consultants from Austria and Germany infl ows to this area will essentially Georgian Partnership Fund, which Sime- In August of last year, Prime Minister on the slopes of the Greater Caucasus have been hired to support the process. improve the economic situation in the tria expects will result in a $15 million Mamuka Bakhtadze visited Ambrolauri, Mountains at 1600 meters above sea Simetria’s webpage explains that “all region,” Capitol Management repre- input from the Fund. The state-owned the administrative seat of Racha, and level. The area is best-known for hiking of [their] projects...rely upon reliable sentatives told BM.ge in February. Partnership Fund has an equity value of announced his plan to transform the trails through rich forests to glaciers and and up-to-date market research and Simetria has pledged to actively coop- 1.4 billion GEL ($50 mln). It provides region into a major tourist destination lakes, and its various mineral water analysis.” erate with local and national govern- equity fi nancing to fi nancially viable with year-round appeal. “Our aim is to springs. The current complex offers a Capitol Management has expressed its ments, private businesses in the region, projects, focused on foreign investors. turn Racha into a four-season destina- few small cottages and a rustic, local expectations that the project will attract and the local residents to ensure that The Partnership Fund acts as a “silent tion,” said Bakhtadze, “Our goal should feel. Simetria plans to begin construc- approximately $60 million in foreign the new Shovi Resort respects the natu- partner,” to decrease the risks of invest- be to at least triple the number of tour- tion next year.

GEORGIA TODAY 12 BUSINESS MAY 14 - 16, 2019

Handling Frozen Confl icts: the Economic Angle BY ERIC LIVNY AND TOM COUPE

t now seems more and more likely that Eastern Donbass (the area currently controlled by the self- proclaimed Donetsk and Luhansk People’s Republics) will become Ia frozen confl ict zone, a territory in which the Ukrainian government will have lit- tle power to enforce its laws and where slowly a parallel governance system, an unrecognized ‘quasi-state’, will emerge. In the absence of a viable military alter- native, one option likely to be considered by Ukraine and its Western allies is to exercise ‘strategic patience’. As discussed in a Foreign Policy article by Lincoln Mitchell and Alexander Cooley, this approach has been until recently employed by Georgia and the US in their dealings with Abkhazia and South Osse- tia. ‘Strategic patience’ consisted, accord- ing to Mitchell and Cooley, of: “helping Georgia develop into a prosperous and democratic country under the assump- tion that once this happened the people of Abkhazia would naturally want to rejoin Georgia. In practice, therefore, StratPat meant doing nothing – certainly not building relationships with anyone in Abkhazia.”

‘STRATEGIC PATIENCE’ OPTION ASSESSED ness friendly institutional framework. policy of ‘strategic patience’ has not LESSONS LEARNED ence, people in divided areas continue An important assumption behind ‘stra- Third, non-recognition carries addi- been very effective so far. Despite very FOR UKRAINE to share the same values. Such is another tegic patience’ thinking is that quasi- tional economic cost as foreign investors bad initial conditions and the high toll With a population estimate of 3mln, the fi nding from the survey work conducted states (QS) emerging in contested frozen will be reluctant to invest in a jurisdic- on investment and quality of institu- eastern part of Donbass (not controlled by O’Loughlin et al in Transnistria and confl ict zones will not do well either tion where legal contracts are not inter- tions exacted by the lack of international by the Ukrainian government) is much Moldova, Abkhazia and Georgia. politically or economically, fueling a nationally binding, international conven- recognition, QS do well enough to gen- larger than all other post-Soviet QS. In Despite the lack of recognition and sense of frustration with the corrupt tions have limited applicability, and erate a sense of loyalty and patriotism terms of its size and economic structure, years of hostility, economic integration regime and the breakaway status quo. investment may be wiped out through among the local population that chose it is closest to Transnistria (about 500,000 has eventually made it to the agenda of Prima facie, there are good reasons to an outburst of hostilities (such as the (or ‘was chosen’) to remain under their citizens). Both Donbass and Transnistria Transnistria and Moldova. A sizeable expect QS, such as Transnistria, Nagorno 2008 war between Russia and Georgia control. At least in the case of Transn- have been the mining and industrial share of Transnistria’s exports goes to Karabakh, Abkhazia, South Ossetia, and, over South Ossetia). istria, the parent state (Moldova) failed centers of their parent states and have the EU (through Moldova); discussions potentially, also Eastern Donbass, to Yet, despite these less than auspicious to decisively outperform its former ter- rather similar human capital and factor are underway concerning construction implode in the absence of international circumstances, neither Abkhazia nor any ritory. While, arguably, Georgia has endowments. Designated for manufac- of additional bridges over Dniester to recognition and economic isolation. In other QS on the fringes of the former accomplished a great leap forward since turing by the Soviet planner, both have improve communication and trade link- his 2006 article “The Sustainability and USSR have succumbed to more than 20 2003, this did not translate into a change been magnets for internal migration by ages. Future of Unrecognized Quasi-States”, years of isolation and non-recognition. in perceptions and political preferences (mostly Russian) engineers, technicians, After more than 20 years, Georgia is Pål Kolstø lists some of the obvious rea- Rather than crumbling and crawling on the Abkhazian or South Ossetian miners and steelworkers. This Soviet also gradually coming to realize that sons for their diffi culties. back, these “frozen economies” appear side of the divide. Moreover, an eco- legacy puts them at an advantage rela- negative rhetoric (branding secession- First, QS are typically off to a bad start, to be doing suffi ciently well to establish nomically stronger and modern Georgia tive to three tiny ethnic enclaves in the ists as “Russian puppets” and “terror- with much of the infrastructure lying in a reasonable degree of internal legiti- may be perceived as more of a threat South Caucasus which have been his- ists”) and continued military and polit- ruins after a ferocious civil war fought macy and sustain themselves over time. (particularly, after the 2008 attempt at torically specialized in tourism (Abkha- ical confrontation are counterproductive (mostly) on their territory prior to seces- In part, this has to do with the unenvi- forceful re-unifi cation with South Osse- zia) and agriculture (South Ossetia and in the sense of keeping the borders sion. While there is considerable empir- able condition of the parent states’ own tia). Karabakh). sealed and preventing mutually benefi - ical evidence suggesting that wars do economy and politics. Both Georgia and Public perceptions have been a subject Like Transnistria, Eastern Donbass is cial trade and human connections. Back not necessarily infl ict long-term damage Moldova were failed states for much of of a very interesting set of parallel sur- likely to be on the receiving end of Rus- in 2012, Bidzina Ivanishvili made eco- to a country’s economic development, the 1990s – corrupt, criminal, plagued veys conducted in 2010 by John O’Loughlin sian subsidies, trade contracts and infra- nomic linkages (e.g. reopening the rail- a crucial condition is that war really ends by brain drain and, as a result, not attrac- of the University of Colorado at Boulder, structure investment, and last but not way connection to Russia via Abkhazia, and is followed by stable peace (see, for tive enough for the ‘strategic patience’ together with several colleagues. Simul- least, military protection. Eastern Don- and restoring the famous Ergneti mar- example, “Civil War” by Christopher policy to work. The other major factor taneously held in Georgia and Abkhazia bass’ size and the fact that it directly ket straddling the border with South Blattman and Edward Miguel (2010)). for the economic and military sustain- as well as in Moldova and Transnistria, borders on Russia further weakens the Ossetia) a key subject of his election Second, like any new states, QS at least ability of unrecognized QS has been the these surveys suggest that people in QS case for isolation and ‘strategic patience’ campaign. While yet to be realized, Mr. initially lack in governance machinery existence of a powerful external patron. are not necessarily unhappy about their as a means of achieving re-unifi cation. Ivanishvili’s pragmatic vision of using and skills, and are unable to collect taxes What Russia is for Abkhazia, South Osse- existence. In “Divided Space, Divided What are then the options for Ukraine mutual economic interests in order to and perform the basic functions of gov- tia and Transnistria, Armenia is for the Attitudes? Comparing the Republics of and Eastern Donbass? overcome the trauma of recent blood- ernment, ensuring personal security, let Nagorno Karabakh Republic (NKR). The Moldova and Pridnestrovie", O’Loughlin While the pain is all too fresh for both shed, is worth of serious consideration alone property rights. These initial dif- same pattern is also to be found else- et al argue that while being richer (accord- sides in the recent confl ict, the only by Ukraine and all other parties to fro- fi culties (often shared by the parent states where: EU and NATO ‘patronize’ and ing to ‘offi cial’ per capita income data) viable strategy for reunifi cation is mutual zen confl icts in the region. – Ukraine, Georgia and Moldova) are protect Kosovo; US and Turkey do the people in Transnistria feel richer. More- political engagement and economic inte- This piece also appears on VoxUkraine. compounded by the lack of international same for Taiwan and the Turkish Repub- over, a higher share of people in Transn- gration. The rationale to re-integrate recognition. As argued by Kolstø, the lic of Northern Cyprus (TRNC), respec- istra think that their country is better economically (in all frozen confl ict areas) ABOUT AUTHORS: QS status “puts a damper on normal legal tively. The presence of these two factors off than Moldova compared to the share will only get stronger over time, and will Eric Livny is Founder and President at trade with the outside world, and encour- – an (initially) weak parent and a strong of Moldovans thinking that Moldova is undoubtedly play a role in bringing Tbilinomics Policy Advisors and Chair ages illegal business”. While enriching patron – are hardly incidental. Both are better off than Transnistria. The fi ndings divided people together, once the mem- of Economic Policy Committee at the the political elite of QS (through cuts at the root of the secession phenomenon of O’Loughlin et al for Abkhazia and ory of war and human loss recedes into International Chamber of Commerce and kickbacks), smuggling and other in the fi rst place. Georgia (“Inside Abkhazia: a survey of the background. What may support a (ICC Georgia). Tom Coupe is Associate types of illegal business do not help QS While none of the post-Soviet QS are attitudes in a de facto state") are quite move towards greater economic (and, Professor at University of Canterbury emerge from the post-civil war institu- star performers, the scanty evidence similar, lending little support for the eventually, political) integration is the and former President at Kyiv School of tional limbo and develop a normal, busi- that is available to us suggests that the ‘strategic patience’ doctrine. fact that despite years of separate exist- Economics. GEORGIA TODAY MAY 14 - 16, 2019 BUSINESS 13

Turnava: Ministry of Economy to Be Exemplary Development focused on the protection of local BY THEA MORRISON businesses, highlighting the need to protect the Georgian business and Georgian production not only inside the country but on the foreign mar- eorgia’s new Minister of the Economy kets. and Sustainable Development, Natia “The fi rst is an investment policy based on the Turnava, says that she has a clear 'one window principle,' which also promotes pri- vision of what needs to be done to vatization processes. For this purpose, we are plan- make the ministry successful. ning to reform the Property Management Agency. G“I see the tasks that we have to achieve and I will For further accelerated economic growth, we need do everything to ensure that our ministry is the to activate all reserves and adjust the investment driving force of the government and that it keeps policy to the needs of investors,” she said. up with the pace,” she told Forbes Week. Turnava said that the task of the ministry is to The Minister explained that different departments distribute the economic growth of the country to of the ministry will have different tasks. each citizen. “Every plan will have a responsible person and I Natia Turnava became the Minister of Economy personally will be responsible for fulfi lling all the on April 18, when ex-minister Giorgi Kobulia was plans the ministry has,” she added. dismissed. From July 12, 2018 to April 18, 2019 she The Minister of Economy and Sustainable was the First Deputy Minister of Economy. Owners of Multiple Cars Might Pay Taxes

“Not only old vehicles but fuel quality also pol- BY THEA MORRISON lutes the air. We should have a complex approach to this topic. Any issue related to additional taxes is very sensitive for the public. Hence, our approach he results of a thematic study pub- is to discuss and simultaneously create such regu- lished by the Environmental Protec- lations that will reduce air pollution and at the tion and Natural Resources Commit- same time will not signifi cantly affect the fi nances tee of Parliament read that people of our citizens,” he noted. who own three or more cars should The thematic document reads that taxes should Tbe subjected to special taxes. be imposed on people according to the volume of Member of the Committee, MP Giorgi Khatidze, the car engine. clarifi es that there is an ongoing discussion as to “The larger the engine of the vehicle, the more it whether such taxes should be introduced or not, pollutes the air. Accordingly, the owners of motor adding a decision has not been made. vehicles with low volume engines will have pref- In addition, Khatidze explains that if a positive erential terms. These changes must be an encour- decision is made, it should happen so that the tax agement for those who run ecologically clean will not be an extra burden for citizens. vehicles,” the document reads. GEORGIA TODAY 14 POLITICS MAY 14 - 16, 2019 Mtatsminda Elections: A Look beyond the Numbers

ambitions: some throw their hat in the ubiquitous billboards and banners pep- a good look, as they might break into the ring for every bout of elections, Presi- pered throughout. This is a luxury inde- second round: Khorguani and Ioseliani. dential, Parliamentary or local, getting pendent candidates and even well-estab- Both have been accused of being not- the state-mandated fi nancing whenever lished parties simply cannot afford. Now, so-independent, and there might be some applicable, use it up in salaries, gasoline the “indies” are making the case that truth in it. Sofi o Khorguani has been charges and offi ce supplies, and all but they don’t even need to go down the opposed to UNM rule both in her pervi- fade till the next scheduled outing. My road of “the one with the most money ous line of work and in principle, and personal favorite is the “Union Recovery wins.” showed staunch support for GD early justice voice of the people: The Lord our The six independent candidates make on. However, her tune changed and righteousness,” spelling and capitaliza- a very interesting group, but we will talk showed signs of disillusionment with tion of the original letterhead, a one-man of three, as Tamar Alfaidze and Ioseb the current lineup, which may hint at a show of Mikheil Gela Saluashvili who Koberidze show no activity, fi nancial or readiness to join a “3rd power” that many shows no movement of funds on the otherwise, in the whole campaign period. voters are hoping for, if and when it accounts, but duly registers and fi les Koba Davitashvili, once a brilliant lawyer emerges – or, maybe, even lead it. Levan mandatory reporting to the Monitoring considered a rising star in the Georgian Ioseliani, however, is not in a position Service of the State Audit Offi ce. (* Note: legal fi eld, now lends his voice to “say to lead any 3rd power, as he’s nominated monitoring.sao.ge is a wonderful resource, no to LGBT” and alt-info videos making by Elisashvili, who is testing waters before and SAO responds to all calls in a super- up his Facebook feed; more importantly, forming a party of his own. This is a trial helpful way – for those who might want his spending, or lack thereof, shows that run for both, as they need to show that to go through the numbers in more his heart isn’t really in the race. For the they can deliver swing votes: something detail). Our numbers are based on data remaining three candidates, the LGBT that European Georgia toyed with (add- from two reporting periods (the last one, pride day on May 17 and the counter- ing Elisashvili to their current bloc), but May 01-May 19, will be submitted after parade of “Family Purity” backed by the ultimately, decided against. Ioseliani the elections): March 20-April 09, and Georgian Orthodoxy, should be an easy started fast out of the gate, spending in April 10-30. The campaign fi nance reports test to pass: they are progressives and excess of 2,000 GEL on outdoor banners are due within fi ve business days from respect the rights of all, regardless of and billboards, printed booklets and the end of a period, and certain entities their orientation or identity. branded accessories – more than all the will be facing SAO in court for failing to Youngest of the remaining three, Grigol other independent candidates together. comply with the law, like Girchi (trans- Gegelia got off to a late start, and started Khorguani had a contrasting approach, Sofi o Khorguani lated as “pinecone”), a party known for spending mid-April, printing 2,000 cop- putting in less money, but more long its theatrical stance on everything from ies of a fl yer, but has been trying to attract hours of canvassing the district on foot UNM and is widely known as Euro-UNM, military service to religion and cannabis attention by announcing a street action and meeting hundreds of potential vot- BY KYRA DEVDARIANI so their trade-off deal makes perfect laws. With undeniable appeal among themed around the Rustaveli movie ers in a door-to-door effort before the sense: the mothership called off its par- younger voters, Girchi is often seen as theater. The non-issue got swiftly other candidates picked up on it and ticipation in the parliamentary elections testing the boundaries, and might be debunked, and the cause for a street followed suit. These individual talks, he fi ght for the Mtatsminda in Mtatsminda district and threw its pining for its day in court (pun intended) protest died with it, but Gegelia sched- non-scripted, non-fi lmed interactions, district parliamentary seat weight behind the “Euro-nationals” in as a matter of strategy. Most importantly, uled another one, on the Sunday before are a very welcome change that candi- vacated by Salome Zura- exchange for the latter providing all kinds it doesn’t prevent their candidate from the elections: a procession through the dates have embraced, a change that was bishvili as she moved on to of support in the Zugdidi mayoral race. running: Herman Szabo has been seen electoral district. While he is not expected long overdue. Presidency is coming to its An MP for a mayor seems like an uneven canvassing the district and putting his to make any impact in the May 19 elec- Regardless of whether an independent Tfi nal stretch. With less than a week to swap, but Zugdidi is a high-stake battle- live feeds up on Facebook. tions, he’s may well have a future ahead candidate makes it to the second round go, the election day is Sunday, May 19, ground, where UNM’s beleaguered ex- Still, there are only two serious con- of him. Lado Papava, a member of the or not, excitement is in the air: non-party the race is getting heated, and several leader’s wife, Sandra Roelofs, is vying tenders among the 14 items on the party Gegelia team, made an excellent point faces bringing to the table issues that traits are shaping up into what may very for a win and Euro-UNM’s regional sup- list: the usual suspects, Georgian Dream while taking questions on a TV show: voters care about deeply, low-budget well defi ne the next Parliament in 2020. port would come in handy. While the and the Euro-UNM-Free-Dem bloc, who media needs to quit painting the elec- campaigns seeming to have true con- With the main concerns of the voters UNM and its spinoff joining forces for operate the purses that can withstand tions as a two-horse race; there are oth- nection to the population they want to being unemployment and rising prices, any chance to defeat Georgian Dream over half a million GEL in advertising ers in the fray, and journalists need to represent, people fi nally starting to low wages and poverty, people seem to anywhere they could didn’t surprise expenses, with items like candidate photo pay attention. appreciate their power of being heard. have grown tired of the two major par- anyone, the later addition of the Free sessions, fl ags and songs, in addition to Two independent candidates deserve Mtatsminda spring, anyone? ties that have been in power for the last Democrats to the bloc raised many an 15 years. In Tbilisi, almost half of the eyebrow. On an ideological level, the voters either have a diffi cult time pick- Free Dems, under Alasania, were dis- ing between the two, or openly root for tinctly at odds with the party of Saakash- the new political force, the third power, vili, where the current European Geor- to emerge and pull the country out of gia leadership held prominent positions. its current state. Mtatsminda is an excel- Shavgulidze, who succeeded Alasania lent choice to test some ideas and for- as a chair of the party, was widely expected mats: it’s a decent-sized district with to continue this line, especially since his some 43,000 eligible registered voters, prominence and recognizability rested and the turnout is projected to be around on the Girgvliani case, a gruesome mur- 70%. The district itself is, in many ways, der of a young man that has become the representative of the whole Georgia: an symbol of the abuse of power, lawless- old settlement with multinational neigh- ness and rampant disregard of human borhoods where building the new needs rights under the Saakashvili regime. to be balanced with protecting the old. Shavgulidze represented the family of Crumbling infrastructure, an onslaught the victim, standing up to those in power of developers, gentrifi cation, tourists, with professionalism and courage, and new cultures, reconciling them with the gained the respect of many while doing existing identities, historically high tol- so; the idea that he would switch the erance, overwriting the narratives and, sides and stand with those he labeled against this complex background, the murderers and enablers, just to get candidates’ takes on these issues. elected, repulsed many. That he would What makes the race for a sole spot in try to get elected precisely in the district Parliament even more interesting is that where the murder took place added insult all the available polls show it to be quite to injury. It may have looked good on unlikely that any candidate will break the paper, and in the preliminary polls, 50%, which means a second round of the Free Democrat base adding their elections. The fi eld is overcrowded, with votes to European Georgia, but in the 20 entities on the ballot: 14 from the par- Mtatsminda district, it may misfi re badly. ties and six independent candidates. On Georgian Dream has a candidate issue the surface, it’s business as usual: 18 par- of its own, albeit a less severe one: ties and electoral blocs applied to the Kakhadze was running against GD-backed Central Election Commission (CESKO) Zurabishvili in this very same district at the “show of interest” stage. Tradi- and became a “dreamer” for the sake of tionalists and the People’s Party were the parliamentary elections. He’s said to unable to proceed to the registration be a decent guy and a good doctor, stage due to a lack of signatures to show although many doubt that yet another preliminary voter support, as prescribed grandfatherly fi gure in Parliament is by the law. Thirteen parties registered, what a doctor would prescribe. With the uneventfully, which leaves us with the ruling party’s administrative resources three entities: the UNM, European Geor- behind him, he does have a chance to gia and the Free Democrats. make it to the second round, though. European Georgia is a spinoff from Of course, not all parties have the same Levan Ioseliani and his backer Alexander Elisashvili GEORGIA TODAY MAY 14 - 16, 2019 CULTURE 15 Charlie Chaplin in Tbilisi ing them in human life situations. had a cat in my arms.” The master pre- BY IRAKLI MAKHARADZE The “humanization” of an animal or sented Geraldine as a gift the model of “replacement” of a man by animal is well the sculptural composition ‘Charlie known in the history of world art and Chaplin.’ bilisi (known as Tifl is until literature. This allegorical technique was “Is it possible to say that Chaplin is one 1936) is a city of bustling very popular in the improvised folk of your favorite images?” The artist was life. It is diverse, rich, orig- theater “Berikaoba” which presented asked. “I used to really love portraying inal, and in the Middle Ages masks of characters and masks of ani- him,” he answered. “But now that I have was called the “City of Joy.” mals. The character-animals in Tserete- met his daughter, I will paint them TIn the mid-20th century, an Italian li’s canvases are full of feelings and emo- together.” Opera House was opened in Tbilisi and tions, love and fi delity, game and slyness, The compositions with Charlie Chap- the whole city sang Opera arias. Later sorrow and joy. lin are not literal portraits of the actor: came the circus, a world in which all feel In the late 19th century, the cinemato- they take a high poetic form of the sad good: adults and children alike. graph, or the Great Silent as it was then clown’s image. The great actor wrote: The circus has always attracted artists called, was born. Later, there appeared “For more than 40 years, I have made for its raging color palette, comedy and fi lms featuring Charlie Chaplin, about a people laugh. But I cried more than they drama, images of the clown Pierrot, a sly, kind and sad tramp with a funny laughed.” character of the Comedia dell’arte: walk. Tsereteli, together with his grand- The meaning of art is not to convey Domier, Renoir, Degas, Watteau, Picasso, mother, watched these fi lms, experienc- the visible, but to make the invisible vis- Leger, Vasily Shukhaev. The sensitive ing and laughing at the adventures of ible. When we look at the world through boy Zurab Tsereteli was also fascinated the hero with a cane. Later, the image of the camera lens, we see the visible. But by the circus. Gymnasts, acrobats, jug- Charlie Chaplin’s “small tramp” inspired if we look out of focus, we see something glers, illusionists and clowns gave the Tsereteli to create a series of works com- else, and this opens up the artist’s vision. future artist a joyful world full of dynam- bining real cinema scenes and the artist’s Despite the melancholy of some of ics and drama. Ernest Hemingway said: imagination. Tsereteli’s works depicting “the little “The circus is the only performance that The artist placed Charlie in the atmos- tramp,” these artworks contain the prin- makes you feel like you are sleeping and phere of Old Tifl is, where the image ciple idea of the master: good always seeing a really happy dream.” immediately became native, as if he had defeats evil, and love is the main value The circus artists were considered been born and raised in the city. We can of life. social outsiders, poor and independent. see Charlie’s character with a street shoe Among the two masters, Chaplin and The master dedicated to them a number cleaner, or together with his chum Kinto. Tsereteli, there are many common things: of works whose mood echoed the words Charlie and the Kinto, one of the most both of them are self-made men; they of Marc Chagal: “Circus! A magic world, colorful characters of Tifl is, have much are unique identities whose talent was the age-old parade of entertainment in common: cheerfulness, a tendency to early revealed, and to reach the top, they before our eyes, where tears, smiles, trickery, restlessness. Charlie himself in needed a lot of effort and energy. gestures obtain the quality of great art. Zurab Tsereteli’s canvases sometimes The mental closeness of Charles Spen- And what circus do people get in return? looks like a Georgian, his plastic and cer Chaplin (Charlie) and Zurab Tsereteli, The night brings them solitude and sad- facial expressions reminiscing the Imereti as artists, creative personalities who ness lasting until the next day and the character of the classic of Georgian lit- largely determined the image of the era, next evening; in the fi re of the electric erature, David Kldiashvili. has resulted in a series of unique art- light heralding the renewal of the old The daughter of the great Charlie Chap- works created over forty years…and this life. For me, the circus is a most tragic lin, Geraldine, visited Tsereteli’s studio creative dialogue continues. performance.” in 2011. In an interview, she said: “Zurab A special place in Tsereteli’s work showed me a portrait where I was depicted The exhibition will open on May 15 in the belongs to birds and animals to which together with my father. I was there, a Zurab Tsereteli Museum of Modern Art, 27 the artist gives human traits, often plac- little similar to a Georgian woman, and Rustaveli Avenue, Tbilisi. SOCIETY Justice Minister: There Is No More Ill-Treatment of Prisoners Continued from page 1 treatment of inmates has been eliminated not receive any allegations of ill-treatment training in dealing with high-risk situa- The delegation also visited three psy- in Georgia, the Committee called on the by staff from the Temporary Accommo- tions and challenging inmates, including chiatric hospitals, where they found some During the visit, the delegation assessed government to protect the rights of inmates dation Center (TAC) of the Migration in verbal communication, de-escalation violations, mainly in accommodation, progress made in the implementation of even better and to focus more on their Department of the Ministry of Internal techniques and manual control,” the report treatment and lack of psychiatrists. The the recommendations made by the CPT re-socialization and rehabilitation. Affairs. Further, it appeared that confl icts reads. CPT called upon the Georgian authori- following the previous visit in 2014. In The report on Georgia reads that the between detained foreign nationals were As regards inter-prisoner violence, the ties to make every effort to fully imple- this context, the delegation paid particu- CPT delegation spoke with many persons rare and never of any serious nature. The delegation said it was not a major issue ment their 2014 de-institutionalization lar attention to the treatment of persons who were or had recently been in police overall atmosphere at the TAC was in closed-type prisons, except for a few Action Plan and, in this context, substan- in police custody and the situation of custody, and received hardly any allega- “relaxed.” allegations and other indications. The tially develop psychiatric care in the com- prisoners in penitentiary establishments, tions of ill-treatment by police offi cers. Regarding the environment in the pris- report says this was hardly surprising munity. in particular those in high-risk and semi- “As previously, no allegations were heard ons, the delegation heard hardly any alle- given the very low staff/prisoner ratio The CPT was set up under the Council open prisons, as well as juvenile inmates. of staff working in temporary detention gations of ill-treatment of inmates by staff. and the limited presence of staff in inmate of Europe’s “European Convention for In addition, the delegation carried out isolators (TDIs). Furthermore, none of Overall, as assessed, there was a “relaxed accommodation areas. the Prevention of Torture and Inhuman visits to several psychiatric hospitals and, the very few allegations heard could be atmosphere and good staff-prisoner rela- Moreover, the report says that at Prison or Degrading Treatment or Punishment,” for the fi rst time in Georgia, to an immi- considered credible, backed by medical tions” in the prisons visited. No. 15, there was a pernicious infl uence which came into force in 1989. gration detention facility. evidence and/or referring to the recent “Only a few isolated allegations were of informal prisoner hierarchy. The CPT The CPT is not an investigative body, "The conclusion proves that in Georgian past. Overall, the CPT received a very heard of excessive force used while pris- stressed that this was totally unaccepta- but provides a non-judicial preventive prisons, in temporary detention isolators positive impression of the sustained efforts oners were transferred to so-called ‘de- ble; the (re)emergence of this phenom- mechanism to protect persons deprived and in all penitentiary establishments, of the Ministry of Internal Affairs aimed escalation rooms,’ especially at Prison enon at Prison No. 15 was a troubling sign of their liberty against torture and other state violence against people has once at combating police ill-treatment,” the No. 6. The CPT stated that custodial staff and major efforts were required to ensure forms of ill-treatment. It thus comple- and for all been eradicated,” Tsulukiani report reads. in all Georgian prisons, and especially at that it did not spread throughout the ments the judicial work of the European stated, adding that as the problem of ill- The delegation also said that they did Prison No. 6, would benefi t from more prison system. Court of Human Rights.

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