Issue no: 824/17www.georgiatoday.ge

MarketsAs of 04 Mar 2016

STOCKS Price w/w m/m BONDS Price w/w m/mBank of Georgia (BGEO LN) GBP 19.4 1,0% +6,9% GEOROG 05/17 100.13 (YTM 6.75%) +0,7% +0,6%GHG (GHG LN) GBP 1.61 +5,1% 12,2% GEORG 04/21 105.90 (YTM 5.53%) +0,3% +1,2%TBC Bank (TBCB LI) US$ 9.50 +1,7% GRAIL 07/22 104.44 (YTM 6.87%) +0,8% +2,2%

GEBGG 07/17 103.38 (YTM 5.07%) +0,3% +0,2%COMMODITIES Price w/w m/mCrude Oil, Brent (US$/bbl) 38,72 +10,3% +12,4% CURRENCIES Price w/w m/mGold Spot (US$/OZ) 1 258,95 +2,9% +8,9% GEL / USD 2,4650 1,0%

GEL / EUR 2,7130 +0,5% 3,1%INDICES Price w/w m/m GEL / GBP 3,5141 +2,8% 3,3%FTSE 100 6 199,43 +1,7% +5,1% GEL / CHF 2,4882 +0,5% 0,7%FTSE 250 16 931,19 +2,2% +5,2% GEL / RUB 0,0343 +6,2% +6,2%DAX 9 824,17 +3,3% +4,6% GEL / TRY 0,8485 +2,9% 0,8%DOW JONES 17 006,77 +2,2% +3,6% GEL / AZN 1,5165 3,1% 3,2%NASDAQ 4 717,02 +2,8% +4,6% GEL / AMD 0,0050

MSCI EM EE 116,68 +7,2% +8,3% GEL / UAH 0,0939 +4,0% 2,5%MSCI EM 790,97 +6,9% +7,0% EUR / USD 0,9086 0,7% +1,8%SP 500 1 999,99 +2,7% +4,4% GBP / USD 0,7029 2,5% +2,6%MICEX 1 878,29 +3,4% +5,1% CHF / USD 0,9927 0,4% 0,1%MSCI FM 2 381,49 +2,9% +5,4% RUB / USD 71,8750 5,8% 6,5%GT Index (GEL) 886,18 0,0% +0,0% TRY / USD 2,9045 3,0% 0,3%GT Index (USD) 708,13 +0,2% +1,0% AZN / USD 1,6250 +3,8% +1,9%

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facebook.com/georgiatoday

• • MARCH 8 - 10, 2016 • PUBLISHED TWICE WEEKLY PRICE: GEL 2.50

In this week’s issue...

Hotel Crowne Plaza Opens in Borjomi

Cushman & Wakefi eld | Veritas Brown’s Take on the New Incentives for the Hospitality Industry in Georgia

Georgia to Receive More Azeri Gas Supplies, Mulls Gazprom Deal

The Making of Nations

Continued on page 2

Dentistry Today: All about the Doctor-Patient Relationship

Prepared for Georgia Today Business by

BY EKA KARSAULIDZE

Prime Minister Giorgi Kvirikashvili and Minister of Economy and Sustainable Development of Georgia Irakli Kum-sishvili met representatives of Small and Medium Enterprises to talk about

their role in economic development, government programs, and the establishment of better com-munication. The meeting with the representa-tives of about 50 different SME industries was held in Expo Georgia on March 4.

PM Kvirikashvili made a proposal to establish a permanent dialogue with representatives of Small and Medium Enterprises. This implies personal meetings, as well as the creation of an

initiative group which will link the relationship between business and government, report the hot issues and monitor the response of the State.

A similar system already operates with Large Businesses.

Government to Create Initiative Group for Better Communication with SMEs

FOCUS ON BUSINESS SECURITYConcerns are growing over the potential Russian take-over of Georgian internet services PAGE 5

Magticom Chief David Lee is one of many who are talking about potential social network abuse by the Russian government for the creation of anti-EU sentiment in Georgia

GEORGIA TODAY MARCH 8 - 10, 20162 BUSINESS

BY ANA AKHALAIA

InterContinental Hotels Group, one of the world’s largest hotel companies, has entered Borjomi, a resort town in south-central Georgia, with its Crowne Plaza brand. The fi ve-star hotel Crowne Plaza Borjomi was

offi cially opened by Prime Minister Giorgi Kvirika-shvili on March 6th.

USD 32 million was invested in the hotel con-struction and 250 people were employed, 150 of which were local residents. The Hotel manage-ment itself consists of 150 people.

The Prime Minister stated that the hotel further underlines Borjomi as one of the most important tourist destinations in Georgia. He pointed out that the number of visitors to Georgia has increased by 23% compared to the same period in 2015.

He further added that the government should

Hotel Crowne Plaza Opens in Borjomi

pay more attention to Borjomi infrastructure, which will make the resort an international tour-ism hub.

“Just a few days ago we announced that the program ‘Produce in Georgia’ has added a new component ‘Host in Georgia,’ which is to con-tribute to the development of hotel networks in the regions. We thank company Dizon Limited for the implementation of this particular hotel project. The company has also restored Borjomi sulfur pools, which have a long history and whose recovery was very important for this resort,” said the PM.

Borjomi is famous for its mineral water industry, which is one of the largest exports of Georgia, the Romanov summer palace in Likani, and the World Wide Fund for Nature site Borjomi-Kharagauli National Park. Because of the supposed curative powers of the area’s mineral springs, it is a fre-quent destination of choice for people with health problems.

BY ANA AKHALAIA

A new Agency, the ‘Trade Develop-ment Agency,’ has been created in the Ministry of Economy and Sus-tainable Development with the sup-port of the European Union and

European countries on an Order issued by the Minister of Economy, Dimitri Kumsishvili, based on a governmental decision.

To develop Georgia’s export potential, the new agency’s main activities will consist of studying the markets of European countries, making trade turnover analysis, and preparing respective rec-ommendations.

At the same time the Agency will provide con-sultations to business operators which are in a trade relationship with the EU, identify their needs and problems, and respond to them. It will also provide interested entrepreneurs with infor-mation on trade benefi ts. In addition, it will help them to make contacts with marketing companies and business operators of the European coun-tries.

It will further gather information on Georgian exporters in Europe, register them and carry out categorization of their activities, according to

extent and other characteristics. The Trade Development Agency plans to organ-

ize a number of bilateral inter-governmental economic meetings with the European Union and other European countries, to prepare phrase-books for delegation visits and to cooperate with the diplomatic corps.

Ministry of Economy Creates New Agency to Develop Export Potential

Continued from page 1

Government to Create Initiative Group for Better Communication with SMEs

“Naturally Large Businesses are important, I have nothing against them, but not only well-known people should appear at meetings with top offi -cials,” the PM said. “The SME sector is a dynamic force with the highest growth rates. Moreover, this is one of the most important sectors of the economy in terms of jobs.”

The head of the Georgian Government also dis-cussed the four-point reform plan, one of the main directions of which is business promotion. The reform plan involves government support, economy, infrastructure and education. According to PM Kvirikashvili, the government has many programs for fi nancing new businesses. The Start-up Financ-ing Fund will begin in the near future, the ‘Produce in Georgia’ state program is expanding, as well as its new sub-components, like ‘Host in Georgia’ (which supports the creation of a network of small

hotels), which is to be launched soon. “However, to develop these fi elds in the right way,

we need your feedback,” the PM told business rep-resentatives. “We want to listen to your ideas about what should be done to encourage SMEs in Georgia.”

The meeting raised various issues: administra-tive, payment, fi nancial themes, issues of popu-larization of different areas, abolition of income tax, creation of a ‘Front offi ce,’ where all govern-ment services will be available for businesses, and much more.

Both sides were satisfi ed as the entrepreneurs had the chance to discuss their problems with the authorities and get a response.

“The business sector is well aware of the govern-ment programs that are designed for them,” said Minister of Economy, Irakli Kumsishvili. “We have already heard and noted all the issues that they are interested in, and will begin work on their consid-eration soon,” he said.

GEORGIA TODAY would like to congratulate its beloved team mem-ber, Tim Ogden, on his recent marriage to Anna Jorbenadze.Wishing you both long life and much happiness together!

GEORGIA TODAY MARCH 8 - 10, 2016 3BUSINESS

GEORGIA TODAY had the privilege to meet with Tom Day, Regional Director of Cushman & Wakefi eld | Veritas Brown for Hospital-

ity and Investor Services, to discuss the developments and incentives in the Hos-pitality Sector across Georgia.

HOW WOULD YOU EVALUATE THE HOSPITALITY SECTOR IN 2015? The Georgian hospitality sector during 2015 saw an increase in the branded 4/5 star hotel room supply in Tbilisi by 349 rooms and in Batumi by 427 rooms. The 5* “Hotels & Preference” Hualing Tbilisi opened during the second quarter 2015 with 247 rooms. The 4* Mercure Tbilisi operated by Accor Hotels opened in June 2015 with 102 rooms. In Batumi, the 5* Leo Grand hotel opened its doors on the 7th June with 180 rooms and on May 20th, Batumi also saw the opening of the 5* Hilton Batumi with 247 rooms.

For a sample of seven 4/5* hotels (fi ve in Tbilisi and two in Batumi) compris-ing 1200 hotel rooms, the full year data shows a fall in occupancy for the year from 65.6% (2014) to 62.5% (2015). Aver-age daily rates (ADR) slipped from $140 (2014) to $134.75 (2015) and RevPAR was down year on year by 8.5%.

A combination of regional shocks to demand and the addition of almost 800 rooms of supply to the Georgian hotel

Cushman & Wakefi eld | Veritas Brown’s Take on the New Incentives for the Hospitality Industry in Georgia

market put short-term pressure on occupancy and average daily rates across the sector during 2015. The supply pipe-line is strong in both Tbilisi and Batumi and during 2016-2018 approximately 2000 hotel rooms of 4/5 star standard are due to be added to the Georgian hospitality market.

Whilst ADR and occupancy will come under pressure during 2016-2018, the forecast growth in leisure tourist and business travelers should ensure that across Georgia ADR and occupancy sta-bilize at $120 and 60% respectively. The relatively low hotel operating costs across Georgia will continue to ensure that hotel balance sheets remain healthy despite the strong pipeline supply growth.

WHAT RECENT PROJECTS HAVE CW | VB WORKED ON IN HOSPITALITY?We advise numerous hospitality devel-opment companies and existing hotel operators and owners across Georgia. Our expert consultancy team based in Tbilisi have advised many of the largest hospitality projects in Georgia, for exam-ple: Axis Towers in Tbilisi, the Hilton Batumi Hotel & Belle Vue Residences, the Metro City project in Batumi, the Babillon Tower project in Batumi, luxury spa and wellness concepts in Ureki and Kaprovani. We have also conducted fea-sibility study and master planning work for hotel resorts in the ski resorts of

Gudauri and Bakuriani.In total, we have performed Feasibility

Studies for 17 hospitality projects through-out Georgia as well as sourcing interna-tional hotel operators for some of these projects including Radisson, Swiss-bel-hotel and Wyndham Hotels.

COULD YOU PLEASE EXPLAIN THE NEW HOSPITALITY INCENTIVE SCHEME OFFERED BY THE GEORGIAN STATE PROGRAM “PRODUCE IN GEORGIA”? In the framework of this initiative entre-preneurs receive fi nancial and technical assistance from the Georgian state pro-gram to develop a hotel, expand and refurbish the existing one, sign a franchise or management contract with a renowned hotel brand. The project must be located outside of Tbilisi and Batumi and “Pro-duce in Georgia” will support with: Inter-est rate co-fi nancing, partial collateral guarantee, fi nancing franchise fees and consultancy costs. Enterprise Georgia under the Ministry of Economy and Sus-tainable Development of Georgia will provide fi nancial and technical assistance in the following manner:

INTEREST RATE CO-FINANCING for Hotel Development/Expansion:

• 10% Interest rate co-fi nancing (loans in GEL) for the fi rst 2 years

• 8% Interest rate co-fi nancing (loans

in USD/EURO) for the fi rst 2 years• Minimum loan volume – GEL 500,000

(or equivalent in USD/EURO)• Maximum loan volume – GEL 1,000,000

(or equivalent in USD/EURO)• Partial collateral guarantee for the fi rst

4 years, 50% of the total loan, with upper limit of GEL 500,000 (or equivalent in USD/EURO).

INTEREST RATE AND FRANCHISE/

MANAGEMENT CONTRACT CO-FINANCING for the Development of International Brand Hotels:

• Co-fi nancing of hotel Franchise/Man-agement agreements for the fi rst 2 years (up to GEL 300,000 annually)

• 10% Interest rate co-fi nancing (loans in GEL) for the fi rst 2 years

• 8% Interest rate co-fi nancing (loans in USD/EURO) for the fi rst 2 years

• Minimum loan volume – GEL 500,000 (or equivalent in USD/EURO)

• Maximum loan volume – GEL 5,000,000 (or equivalent in USD/EURO)

• Partial collateral guarantee for the fi rst 4 years, 50% of the total loan, with upper limit of GEL 2,500,000 (or equivalent in USD/EURO).

FRANCHISE/MANAGEMENT CON-

TRACT CO-FINANCING for the Devel-opment of International Brand Hotels:

• Co-fi nancing of Franchising/Manage-ment agreements for the fi rst 2 years (up to GEL 300,000 annually) and co-fi nanc-

ing of consulting services.Cushman & Wakefi eld hospitality con-

sultancy services for all of these incentive schemes can be co-fi nanced by Enterprise Georgia under the Ministry of Economy and Sustainable Development of Georgia.

HOW CAN CW | VB HELP POTENTIAL DEVELOPERS AND INVESTORS WITH THIS NEW SCHEME? We create added benefi t to a hospitality development project through expert fea-sibility study analysis and fi nancial mod-elling to ensure that our clients receive the project rates of return that are com-mensurate with the discount rates applied to fi nance in Georgia. Typically, regional and global investors want to see at least a 15-20% internal rate of return per year to invest in projects across Georgia. Where a development project needs part or full fi nancing, our Investor Services team then aims to bring about investment by matching the available projects to our extensive database of global investors.

Our hospitality team also offer hotel operator and brand search services, assist-ing the hotel developer by bringing inter-national operators and brand names to the market, hence adding value to the projects.

Our Tbilisi offi ce is available to handle your enquiry on +995 322 474849 or please do email for expert advice: tom.d@veri-tasbrown.com.

Tom Day, Regional Director of Cushman & Wakefi eld | Veritas Brown for Hospitality and Investor Services

GEORGIA TODAY MARCH 8 - 10, 20164 BUSINESS

THE ISET ECONOMISTA BLOG ABOUT ECONOMICS AND THE SOUTH CAUCAUS www.iset-pi.ge/blog

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 economicgrowth, 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.

Having immigrated to Israel at 13, I started feeling a proud Israeli citizen only when I wore the military uniform of an elite paratrooper unit

BY ERIC LIVNY

GOING UP … OR DOWN? I was 13 when my family took the fateful decision to make ‘Aliyah’ to Israel back in 1977. ‘Aliyah’ (the act of going up in Hebrew) is a nice term

describing Jewish ‘repatriation’ from the Diaspora (St. Petersburg, in my case) to the Holy Land. Ety-mologically, ‘Aliya’ originates in the ancient Isra-elite tradition of annual ‘pilgrimage tours’ to Jeru-salem (situated almost 1km above sea level). Yet, there was very little ‘going up’ in the social status of my family during the fi rst fi ve years in Israel.

My parents took more than two years to learn enough Hebrew to be able to land their fi rst jobs. To cut on household expenses, I was sent off to Alonei Itskhak, a Jewish Agency-fi nanced boarding school catering to immigrant kids: recent arrivals from USSR, like myself, and children to barely lit-erate parents who immigrated to Israel from remote rural communities in Morocco, Algeria, Tunis, and other North African nations in the 1950s.

Needless to say, the two groups – the ‘Russians’ and ‘Moroccans’ – lived in parallel universes. We attended the same classes but had little else in common. We communicated in different languages, and were different in everything that mattered: from manner of speech and behavior, to hobbies and intellectual interests.

The Making of NationsThings changed quite dramatically the following

year. I passed entrance exams and was admitted (with a scholarship) to the Hebrew Reali School in Haifa, an elitist private institution that agreed to (very partially) open its doors to outsiders like myself. A more than 2-hour daily commute from Kiriat Ata (a small working class town in Haifa’s vicinity) seemed like a good price to pay for mem-bership in this prestigious club, a hotbed of tech-nological talent, intellectual, military and political leadership.

As the only ‘Russian’ kid in the class, I worked very hard to hide my foreign identity and accent. Thus, I spent hours circling my (very) humble abode in order to practice the diffi cult Hebrew ‘r’ sound. Very soon I acquired near fl awless mastery of the language, but all my efforts to ‘connect’ and become socially accepted fell fl at.

Ironically, my classmates and I wore the same uniform consisting of jeans and blue shirts with the school’s motto “Walk Humbly” (Micha, 6:8) sewn to the pocket. Yet, these blue shirts could not conceal the differences in social status between outsiders and those born into upper middle class Israeli families from Haifa’s upscale neighborhoods on Mount Carmel.

By the age of 16, I gave up on desperate attempts to acquire ‘authentic’ Israeli friends and found ref-uge in the company of other ‘Russians’ closer to my proletarian neighborhood. This could have been the end of my Israeli dream, except that at the age of 18 I was drafted by the Israeli military.

THE GROUND BENEATH MY FEETThe year was 1982. Israel was at war in Lebanon and volunteering to serve in an elite paratrooper unit seemed like the right thing to do. Very soon I found myself in a boot camp with 25 other young guys: Dov Zilber from Moshav Kfar Kish and Ofer Cohen from Naharia; Yair Itzhaki from Kubbutz Kineret and Roni Almagor from Tel Aviv; Amir Halkin from upscale Savion and Pinki Zuaretz from crime-infested Netanya; Arik Libman (myself), son of recent Soviet emigrants, and Omri Sharon, son of the then Minister of Defense and future Prime Minister Ariel Sharon.

Once again, I was the only ‘Russian’ in the pack, but this time it seemed to be of little signifi cance. What mattered was your willpower and physical strength; the agility with which you would wake up to substitute for your friend on a night duty or stick your shoulder under a heavy stretcher. It was about who you were yourself and not “what is your father” (a line that stuck with me from A Portrait of the Artist as a Young Man).

This was the moment when I fi nally started feel-ing a proud Israeli citizen.

GEORGIA’S NATION BUILDING PROJECT CELEBRATING 130 YEARSMost Georgians are acutely aware of the fact their country is home to many ethnic and religious minorities – Armenians and Azerbaijanis, Ossetians and Yazidis, Jews and Greek. Yet, few would doubt that despite being divided and ruled by dominant regional powers for much of its history, the Geor-gian nation has been in existence since times imme-morial.

The truth is that, just like all modern nations of our time, the Georgian nation is very a recent cre-ation. Until well into the 19th century, Kartvelian tribes were just that: tribes. Of course, they spoke closely related dialects and had a common religion, but one would have a hard time discerning anything like a common national sentiment. And, indeed, how could there be any unifying sentiment in a territory divided by impassable mountain ranges and artifi cial borders imposed by rival empires and competing feudal rulers.

Georgia’s revival as a nation started with the country’s political unifi cation under the Russian rule in early 19th century. However, it was not until 1860s and 70s, when infl uenced by other national movements on the fringes of the Russian empire and elsewhere in Europe, Georgian intellectuals were able to take the country’s nation-building project to the next level. Two notable milestones in this process were the publication, in 1876, of Mother Language (დედა ენა) by Iakob Gogebash-vili, and the establishment, three year later, of the Society for the Spreading of Literacy among Geor-gians. Led by Ilya Chavchavadze, Iakob Gogebash-vili and other literati, this charity supported the teaching of the Kartuli vernacular in newly founded schools across the entire country, seeking to estab-lish it as a common national language for all Geor-gians. Kartuli books, newspapers and magazines published by Chavchavadze et al were just another means of achieving the same goal.

Celebrating its 130th anniversary in 2016, Geor-gia’s nation-building project is not much younger than most national movements in Europe. However, having achieved independence only in 1991, Geor-gia is still a very young nation, lacking in maturity and confi dence of its older siblings. As we wrote on these pages, to date, Georgians tend to cluster in family groups and clans, and many of the coun-try’s challenges – in business, politics and govern-ment – stem from people’s limited ability to let go of these primitive parochial bonds.

Sadly, instead of breaking existing divides, Geor-gia’s education system and institutions, such as the military, are major detractors from the country’s nation-building project. Instead of facilitating social mobility, Georgia’s public schools are sustaining and deepening existing social and cultural gaps (see “Like Teacher Like Son” on the ISET Econo-mist Blog). Instead of helping heal wounds in Geor-gia’s social fabric, the Georgian law on military duty and military service effectively divides the nation into haves and have nots. As a result, Geor-gia ‘national’ army is but an army of illiterate peas-ants, poorly motivated and unfi t for the security challenges of the 21st century.

* * *The good news is that backwardness comes with

an important advantage: ability to learn from the mistakes and successes of others. Israel may face its own share of challenges, but if there is one thing Georgia could learn from Israel it is how to use the military as the ultimate nation-building device.

NATIONAL ARMY, ISRAELI STYLEMilitary service is a universal duty for Israe-

lis (certainly for the Jews among them). Every young Jewish Israeli man and woman, regard-less of their social status, education, or skin color is required to serve in the Israeli Defense Forces (IDF). Moreover, military duty is not only mandated by law but is considered to be a privilege.

About a year prior to being drafted, young Israelis start going through a battery of tests designed to examine their psychological fi tness, cognitive and physical abilities. The purpose is to optimally match future soldiers and offi cers (based on their skills and motivation) to mili-tary occupations and units. Those selected into occupations that require prior training are assigned to intensive prep courses in program-ming, technology, languages, etc. Depending on IDF needs, hundreds are allowed to acquire higher education degrees in fi elds ranging from IT and engineering to medicine and law (yes, the army also employs lawyers!) in order to serve in a professional capacity.

GEORGIA TODAY MARCH 8 - 10, 2016 5BUSINESS

BY ZVIAD ADZINBAIA

Early January this year, Vimpel-Com, one of the largest Rus-sian mobile and telecommu-nications companies, through its daughter company Beeline,

announced its interest in the Georgian market. The deal concerned the fi ber-optic cable through which Georgia receives internet from Europe (the Bul-garia-Poti undersea cable).

The cable is currently owned by Cau-casus Online, a Georgian internet service provider that controls a large part of the Georgian internet communications mar-ket.

Following the news, which lead to wide public criticism for the potential cyber risks from Russia, Caucasus Online said in a statement that the sale of the Black Sea cable and land infrastructure is not a subject of negotiations but confi rmed that talks were underway with several major telecommunications companies on the purchase of the Caucasus Online retail segment.

While meeting with VimpelCom lead-

A Matter of National Security? VimpelCom in the Georgian Market

ership at the Davos Economic Forum late January, the Prime Minister of Geor-gia, Giorgi Kvirikashvili, stated that he does not see any misgivings in Beeline’s future acquisition of part of Caucasus Online, confi rming that the deal does not refer to the selling of the backbone infrastructure.

Director of Beeline Georgia, Giorgi Tkeshelashvili, also said that the Russian company is not interested in purchasing the fi ber-optic cable.

David Lee, head of Magticom, the larg-est telecommunications company in Georgia, spoke to GEORGIA TODAY on the matter. He claims that VimpelCom is a corrupt Russian company and says that if it is allowed to enter the Georgian mar-ket, there will be no way to stop Russian monitoring and control of the internet network within the country. He added that it will be the fi rst time in history that a country has sold its internet network to a country occupying its territory.

Although Magticom was believed to be one of the main players in the deal, Lee clarifi ed that since November 2015, his company has had no interest in the agree-ment, having pulled out of all negotiations due to the non-commercial price set.

“A company of this size, having already been convicted of corruption, can dis-rupt the normal operation of the market. For example, by offering an astronomical price for assets and then price dumping to remove competition,” Lee stated.

Following public concern over the potential deal, over 10 leading NGOs in Georgia, including the Strategic Com-munications Center, Georgia’s Reforms Association, Transparency International Georgia, and public movement Iveria, sent a petition to the President, Prime-Minister, Parliamentary Speaker and the Chairman of the Georgian National Com-munication Commission, warning them of the national security risks that the deal could incite.

The petition says that the government’s failure to guarantee cyber security and privacy of citizens might endanger the country’s national security interests as well as harm the confi dentiality of pri-vate and classifi ed data, which will ena-ble the hostile country (Russia) to utilize the information for its own purposes.

The petition adds that, considering Russian’s most formidable cyber-assault capabilities, an integral part of its ‘hybrid warfare’ strategy, the threat is particu-

larly heightened for Georgia when the sale of a communication company involves Russia-based operators.

“Bearing in mind Russia’s continuous attempts to penetrate the communication markets in a number of countries over the past years, purchasing mobile and internet providers in Georgia will strengthen Rus-sian capability of gathering and monitor-ing the information fl ow in Georgia and make use of such for Russian intelligence purposes,” the NGOs claim.

Civil society is urging the addressees of the petition to put on hold the nego-tiations between Caucasus Online and VimpelCom until the issue has been investigated with due consideration.

Nika Rurua, a founder of Iveria, told GEORGIA TODAY that through open-ing doors for the Russian government-affi liated company, Russia will be enabled to control Georgian internet space. “Relatively, all internet communication, including that through Facebook, Google and mobile networks will be able to be effectively monitored by Russia’s special services.”

A leader of Free Democrats and ex-Defense Minister of Georgia, Irakli Ala-sania, early February also warned of the sale of the strategic fi ber-optic cable which could result in a potential higher risk of cyber-attacks.

Russian VimpelCom was founded in 1992. It operates throughout the Com-monwealth of Independent States space and has shares on the European market, including in Italy and Greece.

In November 2015, the company’s CEO, Jo Lunder, was arrested on corruption charges in Oslo, Norway. The case alleges that in exchange for an operating license, VimpelCom funneled some USD 57.5 million to Takilant, a company linked to Gulnara Karimova, the daughter of Uzbek President, Islam Karimov.

Last month, the Securities and Exchange Commission announced a global settle-ment along with the US Department of Justice and Dutch regulators that requires VimpelCom Ltd. to pay over USD 795 million to resolve its violations of the Foreign Corrupt Practices Act (FCPA) to win business in Uzbekistan.

VimpelCom’s Beeline, and Caucasus Online, fi led a joint application to the Georgian National Communications Commission (GNCC) on November 15, 2015, according to which Beeline should become the provider of cable television, the internet and the telephone network by Caucasus Online.

The GNCC began administrative pro-ceedings on the issue on January 5. The Commission is expected to reveal its fi nal decision on March 10.

GEORGIA TODAY MARCH 8 - 10, 20166 BUSINESS

BY ANA AKHALAIA

The State Program for Sup-porting Beekeeping Agri-cultural Cooperatives has given more than 1200 arti-fi cial beehives to agricul-

tural cooperatives in Lentekhi, Tsageri and Oni municipalities of Georgia’s western region of Racha-Lechkhumi and Kvemo Svaneti.

The Minister of Agriculture, Otar Dane-lia, stated that the region has a great potential to develop beekeeping and the state program will signifi cantly contrib-ute to the growth of product quality and volume, as well as honey production traceability which is one of the neces-sary preconditions for Georgian honey realization in the European market.

Within the Program, about 100 agri-cultural cooperatives throughout the country will be given more than 7000 artifi cial beehives. 28 beekeeping agri-cultural cooperatives of Racha-Lechkhumi region have already been granted 1901 beehives.

According to the Chairman of Agricul-tural Cooperative Development Agency, Giorgi Misheladze, the second phase for cooperatives to register in the Program for Supporting Beekeeping Agricultural Cooperatives is ongoing from February

Beekeeping Program to Give 7000 Beehives to Cooperatives

29 to March 16. Cooperatives can regis-ter on the website of the Agricultural Cooperative Development Agency.

“The Program participant cooperatives will be given beehives made of their preferred material, wood or polystyrene, at 30% of the price. Cooperatives, upon request, can additionally take 1 piece of 12-frame honey extractor and / or 2200-litre storage tanks for honey,” said Giorgi Misheladze.

Participant cooperatives in the state Program which have refugees and / or persons with disabilities as 50% of their partners will be given the required inven-tory with co-fi nancing, at 20% of the price.

Participant cooperatives also have the

right to test one sample of its honey in the laboratory of the Ministry of Agri-culture without charge. Participant coop-eratives will be provided with technical assistance within the frames of support-ing the implementation of the essential technical regulations for honey.

The Ministry of Agriculture started the supporting program for beekeeping at the end of 2015. The program aims to improve technical and material bases of beekeeping industries of agricultural cooperatives, to increase quality and quantity of produced honey and other beekeeping products, as well as to imple-ment capital investment for agricultural cooperatives and increase the qualifi ca-tions of their shareholders.

BY ANA AKHALAIA

The Ministry of Agriculture held a working meeting under the Sericulture devel-opment Project to plan the distribution of imported

hybrid mulberry seedlings free of charge among small entrepreneurs.

The Deputy Minister of Agriculture, Iuri Nozadze, stated that the Ministry of Agriculture is ready to fi nd benefi ciaries interested in the development of seri-culture and will provide them with all the necessary information and advice for growing and maintaining the plants.

Within the Sericulture Development Project, the founder of Georgian alcohol producing company Askaneli Brothers, Jimsher Chkhaidze, donated 100,000 mulberry seedlings imported from Uzbekistan to the Georgian government.

According to the Head of the Agricul-tural Research Centre, Levan Ujmajuridze,

Ministry of Agriculture Seeks Benefi ciaries Interested in Sericulture

hybrid mulberry imported from Uzbeki-stan does not produce fruit and is used to feed mulberry silkworms. Cultivating these saplings is possible with intensive planting, as well as with single roots.

The Ministries of Agriculture, Economy and Sustainable Development and Envi-ronment and Natural Resources Protec-tion are involved in the Sericulture Development Project.

The meeting was attended by Jimsher Chkhaidze, representatives of the Min-istry of Environment and Natural Resources and advisors of the Minister of Agriculture.

According to the Prime Minister, Giorgi Kvirikashvili, a year ago, the Ministry of Economy created the Industrial Devel-opment Group which works on develop-ment strategies for various industries, including the concept of sericulture revival. Sericulture is based on the model of small farming, the revival of which will contribute to the development of small production and the increase of employment in the country.

10 Galaktion StreetTel: (995 32) 2 45 08 08

E-mail: info@peoplescafe.ge

BY TAMAR SVANIDZE

A new domestic fl ight will be launched beginning March 10 connecting Georgia’s western administrative capital Kutaisi with

Natakhtari, about 30 kilometers north of Tbilisi.

Flights will be carried out every Tues-day and Thursday between Natakhtari and Kutaisi.

Ticket prices for the fl ight have been set at 50 Gel ($20) for adults and 35 Gel

New Domestic Flight to Launch Connecting Kutaisi and Natakhtari

($14) for children. Tickets will be made available via Tbilisi-based tour operator Vanilla Sky

Privately owned company, Service Air, will operate the fl ights using Czech-built planes capable of carrying 15 passengers.

Georgia’s Economy Ministry announced that Service Air would also be respon-sible for carrying out fl ights between Kutaisi and Mestia, the administrative center of the mountainous Svaneti region, on Mondays and Fridays.

Service Air currently offers fl ights between Natakhtari and Mestia four days a week, on Mondays, Wednesdays, Fri-days and Sundays.

On a fl ight with Service Air. Source: www.georgia2016.eu

Minister of Agriculture, Otar Danelia. 28 beekeeping agricultural cooperatives of Racha-Lechkhumi region have already been granted 1901 beehives

Hybrid mulberry imported from Uzbekistan does not produce fruit and is used to feed mulberry silkworms

GEORGIA TODAY MARCH 8 - 10, 2016 7BUSINESS

BY ANA AKHALAIA

Factory production of the Geor-gian national dessert Tklapi has been launched in Georgia. The factory-made packaged Tklapi, produced by Fruit Fac-

tory, appeared on the market several weeks ago.

Tklapi is a traditional Georgian roll-up pastille made with dried puree of differ-ent varieties of fruit, the most popular of which is sour plum (Tkemali), plums and fi gs. Tklapi can be sour or sweet. It is spread thinly onto a sheet and sun-dried on a clothesline where it thickens.

According to the founder, Timote Gvazava, at this stage they are produc-ing four kinds of Tklapi: apple, sour plum, feijoa and apple + sour plum. The prod-uct is completely natural, without any additives. Sometimes the company receives prepared apple puree and then dries it.

“There is no factory-made Tklapi in Georgia. There is one producer but they also sell sun-dried products. Winter-produced products did not previously exist on the Georgian market, which was exactly our goal: to produce Tklapis not only in summer but in winter too,” said Gvazava in an interview with Georgian media outlet Commersant.

The company uses an enclosed drier

On International Women’s Day, a new report based on the annual Grant Thornton survey of 5,520 businesses in 36 econo-

mies reveals a slight uptick of women in senior management positions from 22% to 24%, but a third of businesses still do not have women in leadership positions. In Georgia, the number of senior leadership roles held by women moved from 38% to 29%, while 26% of businesses still have no women in lead-ership roles.

The G7 is among the worst performing regions, with just 22% of senior roles occu-pied by women and 39% of companies with no women in senior roles. Two of the poorest performing individual coun-tries are Japan, with just 7% senior roles held by women, and Germany, with 15%.

Meanwhile Eastern Europe and ASEAN report the highest proportions of women in leadership at 35% and 34% respectively, and just 16% and 21% of fi rms with no women in senior management respec-tively. Russia tops the list of individual countries with 45% of senior roles held by women, followed by the Philippines at 39%, where only 9% businesses have

Factory-made Tklapi Appears on Georgian Market

to dry their product and have introduced new machinery to that end. Fruit Factory aims to offer customers products made in san-itary conditions, since the Tklapi found on the market today is handmade in unknown conditions and is sold without packaging.

Further, it aims to increase productivity, receive an ISO (International Organization for Standardization) certifi cate and have simplifi ed relations with European countries. It also plans to start producing Tklapis from other fruits and make other fruit products, though this requires special machinery which the company doesn’t yet have.

Fruit Factory’s Tklapis will soon appear on the shelves of supermarket chain Fresco. The company has also received

requests from the Baltic States, Russia and Poland and is now working on the proposed conditions.

Fruit Factory was established in 2015 and started production a month ago. The company has invested GEL 150,000 and currently employs 12 people.

One in three businesses worldwide (33%) has no women in leadership positions Senior Business Roles Held by Women in Georgia Down to 29%

no women in senior management. Nelson Petrosyan, managing partner

of Grant Thornton, said: “Companies across developed nations have talked the talk on diversity in leadership for long enough. It’s time to put their prom-ises into practice and deliver results. We know that businesses with diverse work-forces can outperform their more homog-enous peers and are better positioned to adapt to a rapidly changing global business environment.”

The Grant Thornton International Business Report (IBR) provides insight into the views and expectations of more than 10,000 businesses per year across 36 economies. It is a survey of both listed and privately held businesses. The data for this release are drawn from inter-views with 5,520 chief executive offi cers, managing directors, chairmen or other senior executives from all industry sec-tors conducted between July and Decem-ber 2015.

This unique survey draws upon 22 years of trend data for most European participants and 11 years for many non-European economies. For more informa-tion, please visit: www.international-businessreport.com

GEORGIA TODAY MARCH 8 - 10, 20168 BUSINESS

BY EKA KARSAULIDZE

Gigi Makharadze is one of the best doctors of dental surgery in Georgia. Edu-cated abroad, he returned to his homeland and, along

with actively practicing his art, has been engaged in teaching and has opened his own clinic. The Cedex (Center of Den-tal Experts) Clinic, apart from offering qualifi ed personnel and the latest tech-nology, has something more important – the trust of its customers. GEORGIA TODAY met with Doctor Makharadze and discussed the main problems in this fi eld, the dental business and the culture of aesthetic beauty.

“It’s a mistake to believe that dentistry is poorly developed in our country. At the very least our young professionals prove it. I often attend conferences all around the world and I’m pleased to notice many young people from Georgia there. They are deeply enthusiastic and interested in their profession, something we obviously lacked 20 years ago,” said Dr. Makharadze. “I believe that Georgia has quite a bright future in this regard.”

Dentistry Today: All about the Doctor-Patient Relationship

Moreover, the Doctor says that devel-oping the dental business in the right direction could be benefi cial to the coun-try as a whole. The Cedex Center has a large number of foreign patients; for-eigners who are currently working in Georgia, foreign guests who heard about the good service and affordable prices from their fellow-residents, as well as immigrants to Georgia.

According to Dr. Makharadze, the prices of dental services have increased dramatically in most European coun-tries, leading to Dent-tourism becoming very popular worldwide. “I’m not one to speak about other clinics, but com-pared with the world’s dental centers, we at Cedex have very affordable prices, hence our fl ow of foreign patients,” he said. “I can already say that I will barely manage to have a holiday this summer, because of the number of patients I’m expecting- summer of one of our busi-est times.”

Dentistry is one of the most complex and dynamic areas. The knowledge that could be received from tutorials 10-20 years ago has been left far behind. Dr. Makharadze noted that as a dentist, it is highly important to keep abreast of the latest developments in the fi eld; to update

one’s knowledge and skills, as well as to purchase new technology regularly.

If, in the areas of professionalism and improvement skills, Georgia has advanced enough, there is another important aspect, on which Dr. Makharadze is currently actively working.

“The oral cavity is an intimate area which is located some 10-15 cm from the brain. Naturally, when someone invades it with his/her fi ngers or with tools, the brain begins to panic. Therefore, it is essential to establish good contact with a patient beforehand. I have a strong focus on consultation and there are times when I’ve actually refused to treat a patient. If you cannot establish contact, if the patient does not trust me, then, unfortunately, the treatment will not work,” the Doctor said.

Moreover, for very fearful patients there should be no worry to visit the dentist nowadays. Cedex Clinic uses sedation, which is safe and commonly used in medicine. It is not a narcosis, but the patient is half-asleep, feels no pain, and wakes up fully just when everything is fi nished.

Dentistry is also one of the most com-plex areas of medicine. If something is wrong in your mouth, it will never pass

without assistance. With this in mind, no one should delay a visit to the dentist and, ideally, everyone should get their teeth cleaned professionally twice a year.

“It often happens that some diseases occur with no symptoms and pain, so the patient may think that everything is fi ne, leaving the problem undetected until the dentist notices something amiss during an inspection. While cleaning, the doctor works on each tooth indi-vidually, so he/she would be able to spot a problem in good time,” he added.

Dr. Makharadze advises patients to always listen to their bodies. There are no universal rules, but it is always impor-tant to take care of oral hygiene and have

regular check-ups. If something goes wrong, or your teeth are in danger, they will let you know, and if they need help, for your own peace of mind, it is of course best to go to a dentist you can trust.

Today, teeth function as a person’s business card, not only their health, but also as a part of aesthetic beauty. They require consistent monitoring and care. Therefore, in contrast to other areas of medicine, it is important to have the number of your own personal, trusted, dentist in your contact list. This practice is widely accepted in the West, is the culture of behavior, one which Dr. Makharadze would like to encourage in Georgia.

Dr. Gigi Makharadze of the Cedex (Center of Dental Experts) Clinic. Apart from offering qualifi ed personnel and the latest technology, has something more important – the trust of its customers

GEORGIA TODAY MARCH 8 - 10, 2016 9BUSINESS

BY ANA AKHALAIA

Georgian distiller Aleko Kvernadze has patented a method for making whisky using Georgian earthenware vessels known as Qvevri.

“We’ve been developing this idea for two years. No one has come up with anything like this,” Kvernadze said. “We originally tried this more as an experiment to see what clay does as a catalyst when making high quality alcoholic products.”

Used for fermentation, storage and ageing, Qvevri are an 8,000 year-old wine making tool that, according to UNESCO, is entirely unique to Geor-gia.

Georgian Distiller Patents Method for Qvevri-made Whisky

Qvevri-made whisky is unique in that it is a very aromatic pure alcohol that comes from the natu-ral maximum fi ltration.

Kvernadze believes his method of making whisky will be of interest around the world as it is entirely unique compared to other types of hard alcohol.

He explained that the clay from which Qvevri are made purifi es alcohol in ways other technol-ogies cannot.

“Vodka is essentially a pure spirit that can be used to make whisky. Using our Qvevri, we’ve restored Georgia’s ancient mountain traditions. Grapes don’t grow in the high mountains, so our ancestors used to make vodka from grain. If they had aged Zhipitauri, a type of low alcoholic vodka, they would have made whisky. But they didn’t know what to do with that type of technology back then,” said Kvernadze.

Qvevri-made whisky is unique in that it is a very aromatic pure alcohol that comes from the natural maximum fi ltration

GEORGIA TODAY MARCH 8 - 10, 201610 BUSINESS

BY TAMAR SVANIDZE

Georgian Energy Minister Kakha Kaladze and the President of Azerbaijani State Oil Company SOCAR, Rovnag Abdullayev, have

signed an agreement regarding additional gas supplies to Georgia.

Following the signing, Minister Kaladze said current negotiations with Russia’s state-run energy giant Gazprom remain on-going, though no agreement had been signed as additional volumes of natural gas are not currently needed.

“We recently sent our last proposal to them (Gazprom), offering to continue receiving gas under the old contract. Namely, we want to receive 10 per cent as raw natural gas,” Minister Kaladze.

According to the agreement signed between Kaladze and Abdullayev, Geor-gia will receive an additional 500 million cubic meters of gas from Azerbaijan.

“We’ve managed to increase the supplies to 1.5 billion cubic meters, as well as to 1.5 billion cubic meters via a pipeline con-necting the two countries through Azer-baijan’s Gazakh district,” Abdullayev said.

“Compared to 2012, natural gas con-sumption in Georgia increased 40 per cent, which called for additional volumes of gas,” Minister Kaladze said.

He added that the new agreement with

Georgia to Receive More Azeri Gas Supplies, Mulls Gazprom Deal

SOCAR cancels the need to continue negotiations with Iran over natural gas imports.

Azerbaijan exports gas to Georgia via a pipeline linking the two countries. The annual gas pumping capacity of this

pipeline exceeds 2.5 billion cubic meters.Some 750 to 800 million cubic meters

of annual gas supplies are being sent to Georgia from Azerbaijan’s Shah Deniz fi eld, 1.4 bcm by SOCAR, and 200 mcm from Russia.

BY ANA AKHALAIA

Iranian Tractor Manufacturing Company (ITMCO) has expressed interested in exporting tractors to Georgia.

“We want to start exporting to Georgia but it is very important Georgia takes the fi rst step if they want to buy our tractors. We have an export depart-ment where we can arrange a meeting with Georgian representatives,” ITMCO’s expert in international relations, Arash Moazenzade, told Georgian journalists in a tractor factory in Tabriz, Iran.

So far, he says, there has been very lit-tle communication in this regard with Georgia, which imports tractors mainly from Russia and Belarus at present. However, he says Iranian tractors are able to compete in terms of quality, as well as price.

Iranian Company Seeking to Export Tractors to Georgia

ITMCO has produced tractors since 1968. The company annually produces 25,000 tractors, 70% of which remains in Iran, 30% is exported to Sudan, Nigeria, Venezuela, Afghanistan and Iraq.

ITMCO has produced the new ‘ITMS 5000’ type tractors since 2015 which is produced only in 5 countries. It has 150 horsepower with a price ranging from USD 50,000 to 60,000 in Iran, while it costs USD 100,000 on the global market. The company also makes ‘ITMCO 399’ which has 110 horsepower distributed to the front and rear wheels and consisting of 210 different parts. It costs USD 20,000 but the world market price is much higher.

The company employs 5000 people on an average salary of USD 700-800. The Tabriz Tractor Factory has 2500 employ-ees, 200 of which are women who work in administration and prepare tractor structures.

Georgian Energy Minister Kakha Kaladze and the President of Azerbaijani State Oil Company SOCAR, Rovnag Abdullayev, signed an agreement regarding additional gas supplies to Georgia

ITMCO’s expert in international relations, Arash Moazenzade

GEORGIA TODAY MARCH 8 - 10, 2016 11BUSINESS

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Dechert Georgia, through the contribution of part-ners Archil Giorgadze and Nicola Mariani, joined by senior associates Ruslan

Akhalaia and Irakli Sokolovski, as well as Ana Kostava and Ana Kochiashvili, is partnering with Georgia Today on a regular section of the paper which will provide updated information regarding signifi cant legal changes and develop-ments in Georgia. In particular, we will highlight signifi cant issues which may impact businesses operating in Georgia.

Dechert’s Tbilisi offi ce combines local service and full corporate, tax and fi nance support with the global knowledge that comes with being part of a worldwide legal practice.

Dechert Georgia is the Tbilisi branch of Dechert LLP, a global specialist law fi rm that focuses on core transactional and litigation practices, providing world-class services to major corporations, fi nancial institutions and private funds worldwide. With more than 900 Lawyers in our global practice groups working in 27 offi ces across Europe, the CIS, Asia, the Middle East and the United States, Dechert has the resources to deliver seamless, high quality legal services to clients worldwide. For more informa-tion, please visit www.dechert.com or contact Nicola Mariani at nicola.mari-ani@dechert.com.

INTRODUCTIONAs a step toward further improvement

of Georgia’s business environment, the Parliament of Georgia recently passed amendments (the “Amendments”) to the Law of Georgia on Entrepreneurs (the “Law”). The Amendments enhance exist-ing protections of the rights of minority shareholders, increase transparency of corporate management and control of enterprises and, subsequently, facilitate access to fi nancial resources on the part of enterprises.

This week’s edition of Dechert OnPoint examines the key aspects of the Amend-ments and provides an overview of the Law’s amended clauses with regard to dividend distribution, capital increases, changes to voting rights, the right to purchase shares in an enterprise and requirements regarding the supervisory boards of enterprises.

OVERVIEWDividends

According to the Amendments, interim and annual dividends in a limited liabil-ity company or joint stock company may be distributed according to the decision of the company’s general assembly. The Amendments require that the timeframe for distribution of profi ts after making the respective decision be defi ned in the company’s charter, however, such time-frame is limited to a maximum of 9 months. The purpose of this Amendment is to ensure that dividends are paid within the same calculation period as covered

Dechert OnPoint: Improving Regulations, Amendments to the Law on Entrepreneurs

in the profi t tax statement.

Capital IncreaseThe Amendments support and regulate

the established practice of increasing a partner’s share in a limited liability com-pany through contribution to its capital. This, like realization of other similarly signifi cant partners’ rights, requires a decision of the general assembly. In par-ticular, in case of a capital increase in a limited liability company, the partners shall be entitled to participate in the capital increase in proportion to their shares by paying the full amount of the respective contributions into the com-pany’s capital within the timeframe defi ned by the general assembly. Excep-tions can occur in cases when the part-ners agree on some other rule for exer-cising such right. Additionally, if any of the partners do not exercise such right fully or partially, following the capital increase a new distribution of shares may be effected.

Voting RightsThe Amendments provide that the

decision of a company’s general assem-bly on changing the voting rights of holders of a certain class of shares, either by cancelling and/or reducing and/or granting such rights, shall enter into force only with the consent of more than 75% of the holders of the class of shares whose voting rights are to be affected by the decision.

Share PurchaseFor the purpose of ensuring maximum

protection of the interests of sharehold-ers, the Amendments provide that if new shares are issued by a company, respec-tive shareholders shall have preferential rights to purchase them in proportion to their current shareholding. However, this right may be cancelled by decision of the shareholders’ general assembly.

According to the Amendments, if an enterprise accountable under the Law of Georgia on the Securities Market and with its securities listed on a Stock Exchange holds at least 50% of the shares of another enterprise, such other enter-prise shall not have the right to purchase shares in the above mentioned account-able enterprise. This restriction shall not apply to securities brokers defi ned by the Law of Georgia on the Securities Market.

Supervisory BoardPursuant to the Amendments, an indi-

vidual cannot simultaneously be a mem-ber of the supervisory board and direc-tor of the same company. The Amendments require those enterprises which are in confl ict with this requirement to make necessary changes in their management bodies no later than 2 years from the date of entry into force of the Amend-ments.

A new clause introduced by the Amend-ments provides that a joint stock com-pany, as an accountable enterprise as

defi ned by the Law of Georgia on the Securities Market and with its securities listed on a Stock Exchange, must have on its supervisory board at least one member who is an independent person not equipped with representative pow-ers (i.e., is not a director of the same company). For the purposes of this clause, a person is deemed independent if s/he does not hold shares of the company and does not receive any salary or other eco-nomic benefi t from the company except for compensation received for member-ship on the supervisory board. Those enterprises which do not have an inde-

pendent member of the supervisory board upon enactment of the Amend-ments shall be subject to the requirement in question within 2 years from enact-ment of the Amendments and upon the fi rst instance of its changing of the mem-bership of the supervisory board.

CONCLUSIONOn a fi nal note, one can observe that

the Amendments serve to improve Geor-gia’s entrepreneurial and investment environment on the one hand, while on the other protecting the interests of minority shareholders by granting them

more rights and legislative guarantees. These, along with other amendments recently made to Georgian legislation, make Georgia stand out in the region as a country taking signifi cant steps toward improving and advancing corporate gov-ernance, and thus improving its business environment.

* * *Note: this article does not constitute

legal advice. You are responsible for consulting with your own professional legal advisors concerning specifi c cir-cumstances for your business.