Issue no: 1212/211

BUSINESS PAGE 7

BUSINESS PAGE 8

NEWS PAGE 4

NEWS PAGE 2

POLITICS PAGE 11

POLITICS PAGE 11

• • DECEMBER 17 - 19, 2019 • PUBLISHED TWICE WEEKLY

In this week’s issue...

PRICE: GEL 2.50

Continued on page 5

MarketsAs of 13 Dec 2019

STOCKS Price w/w m/m BONDS Price w/w m/mBank of Georgia (BGEO LN) GBP 15.73 +3,1% +4,9% GEOROG 04/21 104.33 (YTM 3.46%) +0,1% +0,1%Georgia Capital (CGEO LN) GBP 9.08 +0,2% 9,0% GEORG 04/21 105.50 (YTM 2.60%) +0,0% 0,2%GHG (GHG LN) GBP 1.68 +3,4% 6,4% GRAIL 07/22 109.86 (YTM 3.69%) +0,1% +0,2%TBC Bank Group (TBCG LN) GBP 13.40 +6,3% 3,7% GEBGG 07/23 105.53 (YTM 4.33%) +0,0% +1,2%

COMMODITIES Price w/w m/m CURRENCIES Price w/w m/mCrude Oil, Brent (US$/bbl) 65,22 +1,3% +4,6% GEL / USD 2,8532 3,3% 3,4%Gold Spot (US$/OZ) 1 476,33 +1,1% +0,9% GEL / EUR 3,1752 2,6% 2,4%

GEL / GBP 3,8058 1,8% +0,2%INDICES Price w/w m/m GEL / CHF 2,9061 2,3% 2,6%FTSE 100 7 353,44 +1,6% +0,0% GEL / RUB 0,0454 1,9% 1,1%FTSE 250 21 507,79 +2,7% +6,0% GEL / TRY 0,4917 3,6% 4,5%DAX 13 282,72 +0,9% +0,4% GEL / AZN 1,6793 3,1% 2,8%DOW JONES 28 135,38 +0,4% +1,3% GEL / AMD 0,0060 3,2% 3,2%NASDAQ 8 734,88 +0,9% +3,0% GEL / UAH 0,1215 2,3%MSCI EM EE 188,13 +3,4% +2,4% EUR / USD 0,8991 0,5% 1,0%MSCI EM 1 086,91 +3,6% +4,1% GBP / USD 0,7503 1,4% 3,6%SP 500 3 168,80 +0,7% +2,4% CHF / USD 0,9842 0,7% 0,6%MSCI FM 2 694,46 +1,3% +1,7% RUB / USD 62,8830 1,4% 2,3%GT Index (GEL) 1 582,68 TRY / USD 5,8061 +0,5% +1,2%GT Index (USD) 1 208,13 AZN / USD 1,7021 +0,4% 0,2%

Prepared for Georgia Today Business by

NEWS PAGE 2

Weekly Entrepreneurial News @entrepreneur.ge

PACE Monitors Disappointed by Lifetime Appointment of 14 Judges in Georgia

Bidzina Ivanishvili on Georgia's European Choice

20,000 People to Benefi t from a New Community Center in Kachagani

EU & US Should Support GUAM. The Georgian Perspective

Georgia, Ukraine Discuss Deepening Economic Cooperation

EU4Digital: eSkills Network Workshop in Tbilisi

FOCUS ON M|GROUPDiscover the many projects of this renowned company PAGE 5

BY TEA MARIAMIDZE

The President of the National Bank of Georgia (NBG), Koba Gvenetadze, who arrived in Parliament on December 13 to attend the approval of the document on monetary and credit policy, explained why the monetary policy was being tight-ened.

On December 11, the NBG tightened its monetary policy by 0.5%, from 8.5 to 9% which is the highest refi nancing rate since 2008.

Gvenetadze said that in response to rising infl ation of up to 7%, the NBG decided the rate on refi nancing loans had to be raised. He explained that refi nancing loans is a key operating tool of the monetary policy, by which the National Bank delivers the amount of money the system needs at any given point in time. He noted the supply of liquidity means its total sup-

ply, not just refi nancing loans. In addition to refi nancing loans, Gvenetadze said that liquidity in the system can be reduced or increased by other channels, such as government operations, foreign exchange operations, open market operations, and more. The NBG balances liquidity fl uctua-tions caused from other sources through the refi nancing rate.

“The National Bank delivers liquidity and money on demand at a given interest rate. To sum up, the NBG, like other central banks, is supplying money on a cost-based rather than quantitative basis, i.e. by changing interest rates. The operational framework used by the National Bank in conducting monetary policy is in full compliance with the best practices of leading central banks of small open economies,” he said.

The head of the NBG also noted that since March this year, annual infl ation has been above 3%, and in November it stood at 7.0%.

Image source: Imedinews.ge

Why the Georgian Monetary Policy Was Tightened

GEORGIA TODAY DECEMBER 17 - 19, 20192

K PAX GROUP, founded two years ago by Teona Altunashvili and Irakli Tskitishvili,

imports promo accessories from all around the world. The team stays up to date with the

world news and trends, visits various countries and does their work accordingly to

the international demands and standards. The company stands out for its innovations

– K PAX GROUP was the fi rst to offer the Georgian market PopSockets. Hundreds of Georgian and international fi rms are

clients of the company, using its service and promo accessories. The K PAX GROUP vows to strengthen consumer trust and to continue the development

and progress by staying innovative and energetic.

Mariam Ninikashvili has been creating diverse enamel jewelry for nine years. Mariam works the full cycle with

enamel – from processing the metal to fi tting the enamel. She learned from her goldsmith father, getting

involved in the process of metalwork when she was just 10, so she knows every small detail. Mariam had her fi rst individual exhibition at Vache Gallery in 2016. Her next

personal exhibition was held in Prague in 2017. Since last year, Mariam has shared her techniques with others, teaching them the secrets

of enamel. You can fi nd and get Mariam’s beautiful work in numerous locations: Caucasus Decoroom, Form, Art Line Gallery, and EthnoDesign.

In 2016, The United Nations Educational, Scientifi c and Cultural Organization (UNESCO) added the Georgian alphabet to its list of Intangible Cultural Heritage of Humanity. The painter-designers Nino Slepchenko and Levan Vateishvili now present the Georgian alphabet with a new look, using a geometric system. Porcelain dishes, jewelry, lights, different items of interior design, decorative mirrors, and many other beautiful objects, all made by Saini, are unique

in their design, shape, and context. The creators of Saini have come up with ornaments for each Georgian letter, up to 2000 unique works. In 2018, the brand won the main prize at the Creative Business Cup Georgia. The winner in its motherland, Saini presented itself on the international platform, becoming one of the winning 53 international start-up companies.

NEWS

Follow the Entrepreneur Georgia Instagram page to get the latest updates from Georgian Entrepreneurs. For doing business with Georgian Entrepreneurs, write us on

business@entrepreneur.ge

Gamarjoba! I’m the Editor-in-Chief of the Georgian edition of Entrepreneur magazine and I’m here to share the top weekly Entrepreneurial news with you:

@entrepreneur.geBY ANA DUMBADZE

The New York Times has published an article on the rally in support of Georgian doctor Vazha Gaprindash-vili held on December 15, a

month after he was sent to two-month pretrial detention “for deliberately cross-ing the border” of the occupied Tskhin-vali region.

The demonstrators gathered near the Republic Square in central Tbilisi and went to the village of Odzisi close to the occupation line.

As the participants of the rally explained, one of the main purposes of the demon-stration was the Ossetian people to hear their voices and demands.

“Hundreds of Georgians rallied on the boundary with breakaway South Ossetia on Sunday to demand the release of a prominent doctor who was detained after crossing into the region, controlled by Russia since a 2008 war," reads the

The New York Times on the Rally Held in Support of Abducted Georgian Doctor

article written by Margarita Antidze, titled 'Hundreds of Georgians Demand Release of Doctor Detained in Separatist South Ossetia.'

"Vazha Gaprindashvili, president of Georgia's Association of Orthopaedists and Traumatologists, was taken to South Ossetia's regional center Tskhinvali on Nov. 9 and given two months of pretrial custody by separatist authorities, who said the doctor had crossed illegally into the territory.

"Hundreds of people including Gaprin-

dashvili's relatives, colleagues, politicians and civic activists gathered on Sunday at the administrative boundary line in the village of Odzisi demanding Gaprin-dashvili's release.

"Some held posters saying 'Freedom for Doctor Vazha!' and 'Love for the Motherland is not a crime.'"

The Georgian Foreign Ministry said last month the doctor's detention "high-lights the alarming situation of human rights violations in the occupied terri-tories.”

A solemn event on the occa-sion of taking over the Presidency of the Commit-tee of Ministers of the Council of Europe by Geor-

gia was held on Liberty Square in Tbilisi this weekend, organized by the youth wing of the Georgian Dream.

Bidzina Ivanishvili, the Chairman of the Georgian Dream party, Prime Minister Giorgi Gakharia, party leaders, ministers and lawmakers attended the event.

As majority MPs of the Ruling Party claimed, “this day emphasized our Euro-pean choice.”

The leader of Georgian Dream deliv-

ered speech at the event, emphasizing its importance for the future of the coun-try and the relations between Georgia and Europe.

''The young people, my brothers-in-arms, and all of Georgia! Seven years have passed since the most unprece-dentedly populous gathering in the history of Georgia, when half a million citizens gathered here, on this very square! On this square, which bears the name of freedom. Seven years ago on this square, we – practically the entire country – came together pre-cisely to restore freedom and dignity! And today, we are once again united

at the same place by our unconditional commitment to the European choice!" Ivanishvili said.

"What does Europe mean to us?" he asked. "Europe primarily is the democ-racy that was conceived in ancient Greece, 'righteous justice,' and a Christian soul; Europe is tolerance and diversity.

"We, the nation that organically shares these values and possesses a continuous culture that spans numerous centuries, boldly and proudly declare that we are Europeans, and we will not return to the great family of Europe empty-handed," he said.

Bidzina Ivanishvili on Georgia's European Choice

Continued on page 10

GEORGIA TODAY DECEMBER 17 - 19, 20194 NEWS

AGHMASHENELI AVENUE 178; 0112 TBILISI — GEORGIA; T +995 (32) 222 10 35; F +995 (32) 222 10 73; EMAIL: HA1L2@ACCOR.COM

BY ANA DUMBADZE

The co-rapporteurs of the Parliamentary Assembly of the Council of Europe (PACE) for the monitoring of Georgia have expressed

their “regret and disappointment” over the recent appointment of 14 Supreme Court judges.

“During our visit in September, we expressed our serious concerns about the opaque and defi cient selection pro-cess of candidates for the Supreme Court by the High Council of Justice. At that time we expressed our expectation that the parliament would rectify the short-comings in the selection process, includ-ing by appointing only the minimum number of judges needed to ensure the proper functioning of the Supreme Court, in line with the recommendations of the

Venice Commission,” said the co-rap-porteurs.

“We now see that the parliament has appointed 14 out of 19 candidates, with-out proper reasoning and reportedly including persons who have not dem-onstrated during the selection process that they have the legal knowledge and independence required for such an important position. This can only be deplored.”

The co-rapporteurs emphasized that it was now important to take swift meas-ures to ensure the required public trust in the justice system and the independ-ence of the judiciary. “To avoid repeti-tion of the current situation, it is impor-tant that the Venice Commission recommendations for the selection pro-cess, including the use of uniform crite-ria, well-reasoned decisions and the abolition of secret voting, are adopted promptly, not only for the selection of Supreme Court judges but for judicial appointments in general,” they added.

In light of this development, the co-rapporteurs said they intended to make a monitoring visit to the country early next year.

The Assembly brings together 324 members from the national parliaments of the 47 member states. President: Lil-iane Maury Pasquier (Switzerland, SOC) - Secretary General of the Assembly: Wojciech Sawicki. Political groups: EPP/CD (Group of the European People's Party); SOC (Socialists, Democrats and Greens Group); EC/DA (European Con-servatives Group & Democratic Alliance); ALDE (Alliance of Liberals and Demo-crats for Europe); UEL (Group of the Unifi ed European Left).

PACE Monitors Disappointed by Lifetime Appointment of 14 Judges in Georgia

BY BEKA ALEXISHVILI

Carl Hartzell, the EU ambas-sador to Georgia, displayed concerns about Sunday's talks between the opposi-tion and the authorities,

which, he said, were "diffi cult." But the Ambassador expressed optimism and expectation that a fourth round of nego-tiations would take place.

“Yesterday's talks were quite diffi cult. Most importantly, all parties are eager to continue seeking agreement to iden-tify the areas that can be discussed. We, as mediators, are trying to fi nd ways to continue it and then to advise the par-ties to hold another round of talks," Hartzell told journalists.

The EU Ambassador also spoke about the approval of the Supreme Court judges. He said there were some questions and concerns about the process of appoint-ment.

“We welcome that the selection pro-cedures have been set up, and open and transparent hearings held in parliament. This is a positive fact, as it is a precedent for the future. We have some questions and concerns about the process of nam-ing the candidates. We, of course, men-tion the success that has been achieved, however, there are some things to be

done in the future. The recommenda-tions of OSCE / ODIHR and other observ-ers, including civil society, should be taken into consideration,” he said.

The third meeting between the ruling Georgian Dream party and opposition regarding the electoral changes ended without signifi cant results.

The opponents met in the Georgian capital of Tbilisi on December 15 to dis-cuss the possibility of moving to a multi-mandate system from 2020.

Justice Minister Tea Tsulukiani, who is also the Vice Prime Minister, said after the meeting that the system proposed by the opposition cannot be acceptable for Georgia.

Opposition European Georgia MP Giga Bokeria said the ruling party asked for additional time to think over the so-called 'German model,' adding that the ruling party now allegedly needs time to con-sult with their chairman Bidzina Ivan-ishvili.

The meetings, mediated by diplomatic corps, followed the rejection of the GD-proposed election bill on November 14, which aimed to move to a fully propor-tional electoral system starting from 2020 instead of 2024.

The opposition is now demanding a mixed electoral system for the 2020 elec-tions based on the German model, which distributes seats in parliament based on votes received in proportional elections.

EU Ambassador to Georgia Carl Hartzell Comments on Recent Political Developments

GEORGIA TODAY DECEMBER 17 - 19, 2019 5

Metekhi is also one of the special ven-ues of our company, distinguished by its historic concept.

Its interior is based on the play with the same name, ‘In the Shadow of Metekhi’. Accordingly, here, the entire atmosphere and interior refl ect the theater.

It offers a cozy ambience along with wonders of local cuisine, which makes the venue the perfect place to take your foreign guests and allow them to discover the authentic Georgian soul.

From the windows of the restaurant and vast veranda, one can enjoy the breathtaking view of Old Tbilisi and River Mtkvari. Due to its location, the restaurant is quite popular among for-eigners, who want to explore the old part of the city and enjoy its wonderful sights.

Here, visitors are welcome to enjoy Georgian national songs and dances on a daily basis.

There are 5 individual thematic rooms of different concept in the restaurant, which represent the different parts of ancient Georgia: ‘Papakhiani’ (man with traditional hat) with the concept of 18th-19th century Georgia; ‘Monadire’ (hunter), where a stone fi replace, historic wine vessels and other details create an ancient Georgian mood; ‘Old Tbilisi’ - interior of 19th-20th century Tbilisi; while the ‘Kasabi’ (butcher) and ‘Asian’ rooms are for guests with any taste and interest.

In the Shadow of Metekhi is the only restaurant in Georgia with the HACCP Concept Certifi cate and ISO Certifi cate 22000:2005.

This year, the restaurant received the online magazine Lux Life’s Global Hos-pitality prestigious award in the category ‘Most Authentic Georgian Restaurant.’

The restaurant is located in the historic district of Tbilisi, Avlabari, at 29 Ketevan Tsamebuli Avenue. It can serve up to 200 guests. The working hours are 12:00 – 01:00.

Natia: Restaurant Ubani is the newly established facility of m|group. It was opened in September 2019 to meet cus-tomer needs and demand. Open 24/7, guests can come late at night, after hav-ing fun at night clubs, to relax and taste delicious Georgian cuisine. Here, we offer our guests national dish Khinkali, various kinds of soups, shared plates, etc.

The design of the restaurant was devel-oped in accordance with its name, ‘Ubani’ (‘Neighborhood’). The entire atmosphere and interior will defi nitely make you feel like you’re in one of the old districts of the city and will bring you closer to the authentic spirit of a Tbilisian neighbor-hood.

The design of the restaurant was cre-ated by the prominent Georgian designer Tina Dzirkvadze, while the entrance was painted and decorated by street artist Luka Manjgaladze. Thanks to their work, even minor details here will bring you back to a beloved and warm environ-ment.

The location itself is very convenient for both tourists and local visitors, as it is in the central part of the city, on the road to/from the airport, so that one can bring their foreign guests here directly from the airport at any time.

The exact address of the venue is 29a Queen Ketevan Avenue. The restaurant has 80 seats. As already mentioned, it works 24/7, which is one of the main superiorities of Ubani.

CATERING

Catering is yet another important direc-tion of the company’s activities. It is one of m|group’s core services, while 10 years of operation counts over 1,000

events and projects.In 2017, as part of the rebranding, the

m|catering menu and assortment was completely renewed with sophisticated fl avors and improved visual features.

Moreover, the company produced a special line for children - m|kids, which is created with kids’ favorite products.

Our slogan is ‘No Event is too Small or too Large,’ which means that our service can fi t any customer demand and events of any scale, not only in Tbilisi but in the regions as well. For instance, we hosted Ennio Morricone’s concert at the Black Sea Arena and other important events in urban areas.

Another important division of m|catering is industrial catering, with a capacity of up to 1,000 persons served per day; one of the recent examples of which was catering for the “Fast and Furious 9” shooting crew. Our company has a lot of experience in this fi eld. The offi ce is located in Tbilisi, at 40 Chant-ladze Street.

Ana: Apart from restaurants, m|group also manages the Hotel ‘Kvareli Lake Resort’ in the heart of Kakheti, one of the most beautiful regions of Georgia. To the east of the small town of Kvareli, beneath the southern slope of the Great Caucasus Mountains, Kvareli Lake Resort spreads over 300 hectares of beautiful natural landscape.

In addition to the original 20-room Building A, in September 2019, the resort opened Building B. It has 41 comfortable rooms offering amazing views of Kakheti. It is also noteworthy that the new hotel is adapted to persons with disabilities.

Building B was designed by the Archi-tectural company Dmark, while the inte-rior of the lobby belongs to the well-known Georgian artist Nino Chubi nishvili, aka Chubika, so the beauty of both inte-rior and exterior of the resort perfectly matches.

The virgin forest surrounding the resort, the lake in front, the vast Alazani valley behind and large hotel rooms, each equipped with small terrace and beauti-ful panoramic views, make Kvareli Lake Resort a unique place to stay.

In addition to high quality service, amazing views and a restaurant with a Georgian menu, the hotel offers a well-equipped conference room for 120 peo-ple, with the opportunity of simultaneous interpretation, which makes it a perfect place for business events.

Kvareli Lake Resort contributes to promoting a healthy lifestyle. The resort offers holidaymakers various activities for relaxation and entertainment, includ-ing boat trips, fi shing, and cycling. So it makes the perfect destination to have an unforgettable time in a calm environ-ment with your loved ones.

Of course, our activities are aimed at promoting the tourism sector and con-tributing to the economic development of Georgia; however, we are equally focused on foreign and local customers, not only on tourists. Each customer’s opinion and needs, regardless of their nationality, is of utmost importance for our team. Creating a pleasant and warm environment and gifting them memora-ble, happy moments in life is our main goal.

As for the future plans of the m|group, the company representatives prefer it to be a surprise for customers; however, they claim that there are many pleasant novelties and projects planned for 2020, and the entire team of the company will spare no effort to implement them suc-cessfully.

+995 032 2 30 30 30info@mgroup.gewww.mgroup.ge

The tourism and hospitality industry plays a signifi cant role in the economic devel-opment of the country, a process which is essential

for Georgia, where tourism represents an increasingly important component of the country's economy.

There are several companies operating in this fi eld in Georgia, contributing to its economic growth and creating a decent image among international trave-lers, boasting many years’ experience, and JSC Hotels and Restaurants Man-agement Group – m|group is distinguished among them for its diverse and trust-worthy service.

Founded in 2005, JSC m|group is con-sidered as one of the front-runners in the hospitality industry in Georgia. Over 14 years of experience and hard work, the company has gained the trust of its consumers.

Currently, it manages 6 projects with various concepts and price policies in Tbilisi and Kakheti (Kvareli).

As a leader in the Georgian HoReCa sector, m|group was the fi rst among CIS countries to obtain the ISO9001:2008 cer-tifi cate in quality management system under the HACCP concept in 2008, and then the ISO 22000:2005 certifi cate in 2017.

GEORGIA TODAY spoke to the rep-resentatives of m|group, Ana Bokeria, Deputy General Director in PR, Market-ing, Sales and Business Development, and Natia Metreveli, the Head of the Sales and Marketing Department, to fi nd out more about the company’s service and its contribution to encouraging the tourism sector in the country.

Ana: JSC Hotels and Restaurants Man-agement Group – m|group already boasts 15 years’ experience in the hospitality industry. The company is distinguished with its commitment and loyalty to qual-ity standards. Our team is always focused on maintaining and improving the stand-ards we’ve achieved throughout years.

m|group IS DISTINGUISHED WITH ITS DIVERSE SERVICE. AT THIS STAGE, IT COUNTS SIX LOCATIONS AND FACILITIES. COULD YOU TELL US ABOUT THEM? Currently, the company manages 5 facil-ities in Tbilisi and one in Kvareli, a town in the Kakheti region of Georgia.

BREAD HOUSE

Among the facilities located in Tbilisi,

the Georgian traditional restaurant Bread House is noteworthy, characterized by a distinctive and authentic interior and consisting of three halls called ‘Satone’, ‘Salonuri’ and ‘Satavado.’

The restaurant amazes its guests with delightful national cuisine- one can taste the unique local dishes and delicious bread bakes. Most importantly, Bread House cares for preserving the local traditions and introducing them to trave-lers from all over the world.

Once you enter Bread House, you will fi nd yourself in the ‘Satone,’ a hall with a Georgian bakery. Long Kakhetian Shoti (traditional Georgian bread with an unforgettable fl avor and taste) is baked in front of the guests directly, in a tradi-tional deep clay oven called ‘Tone’.

Most importantly, if you have never baked Georgian bread at least once in your life, any interested guest is welcome to take part in the process, which is espe-cially attractive and exciting for foreign visitors of the restaurant.

Live Georgian music can be heard in the halls every evening. In summer, you can chill outside on the terrace, enjoy Georgian wine and the beautiful view of Old Tbilisi.

Guests have the rare opportunity to taste the ‘Treasure of the Georgian Feast’ dishes. This is m|group’s project, launched in 2010, which involved search-ing for indigenous Georgian dishes, recipes and rules of preparation, in order to save them from oblivion and to pre-serve these traditions for future genera-tions. As the result of those expeditions, up to 150 rules of preparation of tradi-tional Georgian dishes, the recipes of which were preserved among the elderly of the regions, were restored. Guests can taste up to 30 of those dishes only in m|group’s chain of restaurants.

Georgia has the oldest and most unique winemaking traditions. At Bread House, guests have an opportunity to taste a small selection of local wines in the wine cellar that is located within the venue.

Bread House is located in the beautiful district of Old Tbilisi, at 7 Gorgasali Street. There are 145 seats in the restaurant. It works every day, from 12:00 to 01:00.

MASPINDZELO!

Next to Bread House, yet another dis-tinctive facility of m|group, restaurant Maspindzelo!, is located, where food enthusiasts can sample the tastiest

Khinkali in Tbilisi. This is a “Sakhinkle” restaurant with

timely and abundant service. The exotic energy of Imereti can be felt in the eclec-tic interior of the restaurant. The tastiest family dishes and a long-preserved tra-dition of Georgian hospitability will inspire you to visit Maspindzelo! again and again.

Maspindzelo!, just like Bread House, is located in Old Tbilisi, at 7 Vakhtang Gorgasali Street. There are 100 seats in the restaurant. Its door are open for guests 24/7, so they can visit the facility any time to enjoy the hospitable envi-ronment and extremely delicious dishes.

OTIUM

Natia: One of the most distinguished facilities of m|group is Otium, a res-taurant located near Turtle Lake, at the edge of a forest. The venue becomes even more attractive in summer and spring, when it is surrounded with abun-dant greenery. This is a place where you can breathe fresh air, enjoy the evening with live music or attend a concert of various Georgian and foreign musicians. The concerts and performances of resi-dent DJs and bands are held every week-end and most weekends, so Otium is perfect destination for youth to have an unforgettable time with friends.

The modern interior of the restaurant, equipped with all essential technical gear and a big, beautiful garden yard near the forest make Otium an ideal venue for carrying out a wide range of activities, from weddings, birthday cel-ebrations, and business meetings to art exhibitions and individual or corporate events, since it can easily adapt to any taste or desire.

It offers a wide variety of special Geor-gian and European dishes, prepared by highly qualifi ed chefs.

Otium has a terrace offering beautiful views over Tbilisi, where guests can enjoy famous Georgian barbeque, Mts-vadi, and special Shoti bread in summer. They can also watch the process of pre-paring these dishes in the open kitchen showroom.

There are up to 300 seats in the res-taurant. In addition, it has quite a big garden, so that the entire space of these two venues can be united and used for relatively large-scale events. For instance, we recently celebrated the 5th birthday of SPAR, the supermarket chain, at Otium, and hosted about 500 people. So, the space is big enough and it per-fectly fi ts any customer demand.

Every year, we have a special guest at Otium – the Embassy of Switzerland. They have been celebrating their National Day at Otium for three years now. The events of various embassies, corporate parties, and weddings are often held at the restaurant. It is the perfect place for a romantic and beautiful wedding. We also welcome any type of exhibition and conference at our venue.

Otium is located on Turtle Lake Alley and receives guests daily from 12:00 until the last guest leaves.

IN THE SHADOW OF METEKHI

The restaurant In the Shadow of

BUSINESS

M|group – Prominent Representative of Georgian Hospitality Industry Managing Six Different Projects

GEORGIA TODAY DECEMBER 17 - 19, 20196 BUSINESS

15 M. Kostava str.(+995) 322 30 03 05

Gvenetadze noted that infl ation was affected by single factors at the beginning of the year: excise taxes on tobacco products increased signifi cantly, as well as rising food prices, which are less depend-ent on the National Bank's monetary policy.

“Central banks do not usually respond to such factors, as they are almost impossible to neutralize with monetary instruments. Infl ation has acceler-ated since September, largely due to the deprecia-tion of the GEL nominal effective exchange rate and the long-term maintenance of the impaired benchmark,” he added.

He then highlighted that Russia's July decision to halt fl ights with Georgia and the spread of other formal and informal trade sanctions raised expec-tations of an exchange rate devaluation. According to him, even before the actual decline in foreign exchange infl ows, foreign exchange supply declined in the market, and demand increased, leading to a more rapid depreciation of the exchange rate than expected.

“We estimate that the country received $300 mil-lion less in tourism revenue due to airline transac-tions. This was followed by the political tensions, which contributed to the further devaluation of the national currency.”

The Head of the National Bank explained that as the depreciation rate shifted to infl ationary expec-tations and infl ation increased, the NBG began tightening the monetary policy and increasing the refi nancing rate gradually, by 2.5 percentage points to 9.0%.

“Such an increase will reduce overall spending in the country, which will eventually slow the pace of rising consumer prices. At the same time, the increase in interest rates makes national currency savings more attractive and encourages investors to use GEL securities, thereby helping to increase demand and strengthening the GEL. In addition, the National Bank also used other tools at its dis-posal, namely interventions and reducing foreign exchange reserve requirements. However, the most effective leverage is the monetary policy rate,” he stated.

Continued from page 1

Why the Georgian Monetary Policy Was Tightened

BY ELENE DZEBISASHVILI

Borjomi and Bakuriani have been nomi-nated as candidate host cities for the 2025 European Youth Olympic Winter Festival. The President of the European Olympic Committee (EOC), Janez Koci-

jancic, together with the secretary general Raffaele Pagnozzi, sent a letter to the President of the National Olympic Committee of Georgias (GNOC), Leri Khabelov, offi cially confi rming the candidate status for Georgian resorts.

The festival’s evaluation commission will pay an offi cial visit to Borjomi and Bakuriani in February 2020. GNOC must provide EOC with all essential information on festival hosting by July 31, 2020. The winning candidate is set to be revealed at a general assembly of the EOC in November 2020.

The nomination is a further boost to Bakuriani,

Borjomi & Bakuriani May Host 2025 European Olympic Winter Festival

the winter resort in the high Caucasus that already dominates the scene for sports enthusiasts. Recent news from Bakuriani include the planning of a joint French-Georgian restoration of a track for biathlon, the Olympic sport combining skiing and rifl e shoot-ing, making this option available for the fi rst time in 30 years in the country. This is a move to further improve winter sports facilities with a bold view towards future Olympics hosting.

Borjomi, one of Georgia’s most unique resort localities, has been the subject of a 2018-announced state project that envisages to transform it into a network of historical attractions. Under the initia-tive, the monuments and sites are being subject to the restoration and development project titled Borjomi - a Museum City. Beside the historical sites and buildings from the Tsarist era, including 19th century residential houses for Russian Imperial nobility, the town also features a vintage narrow-gauge railway passing over its picturesque natural landscapes, connecting it to Bakuriani.

BY BEKA ALEXISHVILI

The Republic of Georgia and the US state of Georgia National Guard are celebrating the 25th anniversary of military cooperation.

The partnership between the two states cultivates interoperability amongst the US and Georgia and further endorses peace and secu-rity, the US Embassy to Georgia reports.

US Major General Thomas Carden was in Tbilisi to attend the 25th anniversary of the state partner-ship program “to commemorate the enduring rela-tionship between the country of Georgia and the US state of Georgia,” the US Embassy stated.

Georgian Defense Minister Irakli Garibashvili celebrated the US-Georgia “strong and exemplary partnership” during the 25th-anniversary event last

week and stated that the partnership is “of the highest importance” for Georgia.

“We are further developing our relations with the US, taking steps to further strengthen democratic institutions in the country and are striving toward NATO integration,” Garibashvili said.

Acting US Ambassador to Georgia Elisabeth Rood, as well as offi cials from the US and Georgia, attended the event held at the Georgian Defense Ministry Army Hall.

Georgia and the US State of Georgia Mark 25 Years of Military Partnership

GEORGIA TODAY DECEMBER 17 - 19, 2019 7BUSINESS

BY NINI DAKHUNDARIDZE

This Tuesday and Wednes-day, December 17-18, the capital of Georgia will host an eSkills network work-shop. The main goal of the

seminar, which is being organized by EU4Digital, is to enable the Eastern Partner countries of the EU to exchange insights and latest developments in the fi eld of digital skills and discuss the cur-rent baseline in the partner countries regarding the measurement of digital skills indicators. The mentioned Eastern Partner countries (EaP) in this EU Pro-gram are: Georgia, Armenia, Azerbaijan, Belarus, Republic of Moldova, and Ukraine.

The organizers report that the “main outcome of the network workshop will be the validation of the results of the EU4Digital Questionnaire for gathering relevant information and data on the existing situation (baseline) for measur-ing and forecasting of digital skills in the EaP countries.”

Additionally, within the frames of the workshop, the development methodol-ogy of a competence framework for SMEs and microbusinesses and Digital Skills and Jobs Coalition status in individual EaP countries will be presented and dis-cussed with the country representatives.

Under the EU4Digital initiative, the eSkills network focuses on formulating and implementing national digital skills

strategies in the EaP partner countries, notably by establishing national coali-tions for digital jobs, taking into account the EU’s ‘digital skills and jobs coalition’.

The overall objective of the EU4Digi-tal program is to eliminate existing obstacles and barriers for pan-European online services for citizens, public admin-istrations and businesses, including

through the harmonization of the digital environments among the EaP partner countries and with the EU.

To analyze the above in more detail, this program aims to extend the benefi ts of the European Union's Digital Single Market to the Eastern Partner states, supporting them in reducing roaming tariffs, developing high-speed broadband

to boost economies and expand e-ser-vices. The organization hopes that the program will amount to harmonizing digital frameworks across society in areas ranging from logistics to health, building cyber security, developing skills, and creating more jobs in the digital industry.

The program was implemented in 2019

and is planned to achieve its objectives by the year 2022 with a budget of EUR 11 million. EU4Digital focuses its support across six key policy areas:

Telecom rules: the program aims to achieve a common roaming space among EaP countries by 2020, to strengthen the independence of National Regulatory Authorities, while developing coordi-nated strategies for frequency distribu-tion.

Trust & Security: EU4Digital supports the development of trust services in the digital economy and cyber-security to strengthen cross-border eServices in the Eastern Partnership region.

eTrade: the program supports trade facilitation and harmonization among Eastern Partner countries and with the EU by promoting common frameworks for eCommerce, eCustoms and eLogis-tics, and working towards Digital Trans-port Corridors.

ICT Innovation: EU4Digital supports reforms and actions to favor the devel-opment of ICT research, start-ups and innovation ecosystems across the East-ern Partnership region, drawing from EU experience and best practices.

eHealth: the program supports the development of harmonized national frameworks for eHealth, both among EaP partner countries and with the EU.

eSkills: EU4Digital supports the imple-mentation of digital skills strategies in the Eastern Partnership countries, acting to establish national coalitions for digi-tal jobs and a competence framework for small businesses.

EU4Digital: eSkills Network Workshop in Tbilisi

GEORGIA TODAY DECEMBER 17 - 19, 20198 BUSINESS

BY NINI DAKHUNDARIDZE

The United Nation Develop-ment Program (UNDP) continues to support the expansion of access to dif-ferent services for people

in the rural areas. This time, Kachagani in the Marneuli Municipality of the Kvemo Kartli region, is in focus. On December 13, a new community center opened in the village of Kachagani, expanding access to over 200 public and private services for 20,000 residents.

The community center houses the offi ce of a local self-government repre-sentative, aiming to ease citizen engage-ment in decision-making, and provides access to a modern library. Additionally, the center includes well-equipped con-ference facilities.

The Minister of Justice, the Ambassa-dor of Austria, the Minister of Justice Thea Tsulukiani and the UNDP Deputy Head, among others, attended the open-ing ceremony of the new center in Kachagani on Friday.

“We are proud to open the 74th com-munity center in Georgia fully tailored to the needs of people in towns and vil-lages,” said Minister Tsulukiani. “Com-munity centers give people easy access to public services, such as obtaining birth certifi cates, ID cards and property reg-istration. Additionally, local residents can get services from the banks, access internet and library, meet representa-tives of local self-government and engage in projects for the benefi t of their com-munities.”

“Access to services and engagement in decision-making are a foundation of local development,” said Ambassador of Aus-tria Arad Benkö. “We support community

centers in the remote rural regions to expand opportunities available for citi-zens and ensure that quality services are available in every village of Georgia.”

“Better access to services means more opportunities, a better social environ-ment and the greater engagement of people in the decisions that defi ne their

future,” noted UNDP Deputy Head Anna Chernyshova. “It is especially important in the rural areas where people need more information about the tools they can use to participate in local govern-ance and become the owners of devel-opment,” she underlined.

The new community center was estab-lished by the Public Service Develop-ment Agency (PSDA) of the Ministry of Justice of Georgia with the support from the UNDP, the EU and the governments of Switzerland and Austria.

Kachagani is the fi rst of two villages where community centers were con-structed with the support of the UNDP and Swiss and Austrian states. The sec-ond community center is to open in 2020, in Chrebalo, a remote village in moun-tainous Racha. Tailored for the needs of people living in the national minority regions and the remote mountain com-munities, the centers will provide cru-cially important services to thousands of local residents.

Aiming to aid reforms in local self-governance and encourage regional development, assistance to community centers is a part of the wider effort of the UNDP’s mission, implemented with funds from the Swiss Agency for Devel-opment and Cooperation (SDC) and the Austrian Development Cooperation (ADC).

The UNDP is the leading development organization in Georgia. Since 1993, the program has been part of the country’s success in many fi elds, including its democratic reforms, inclusive growth, confl ict transformation, green solutions and the achievement of the Sustainable Development Goals.

Image source: UNDP Georgia

20,000 People to Benefi t from a New Community Center in Kachagani

GEORGIA TODAY DECEMBER 17 - 19, 2019 9

The world’s largest commu-nity of low- intervention, organic, biodynamic and natural wines, their grow-ers and makers and those

who love drinking them united in Berlin at the Raw Wine Fair on December 1-2.

Berlin 2020 - RAW WINEGeorgian Qvevri wine and the wine-

making tradition are gaining recognition worldwide, with the help of the LEPL National Wine Agency and with the sup-port of the world’s Master of Wine and founder of the Raw Wine Fair, Isabelle Legeron, MW.

159 artisans were participants of Raw Wine in Berlin, among them 13 Georgian wine cellars, some of them having also been present at the Raw Wine fairs in London, New York, Montreal and Los Angeles. The Georgian wineries that were presented at the Berlin Fair were: from Kakheti – Alexander’s Wine Cellar; Akhmeta Wine House; Artana Wines; Chateau Khashmi; Chona’s Marani; Papari Valley; Tanini; Our Wine; Vellino; from Imereti – Baia’s Wine; Dimis Ferdobi: Kartli – Do Re Mi; and from Meskheti – Natenadze’s Wine Cellar. By partici-pating in such the exhibitions, Georgians

are able to introduce their country and winemaking history and tradition to the international market in order to attract foreigners’ interest in the country and its customs.

The fair has proved itself a window for new bio wine cellars to boost the popu-larity of Georgian wine abroad. Dozens of visitors were in attendance at the exhibition, including leading wine spe-cialists, wine importers, distributors of wine and media representatives from around the world.

Raw Wine is the celebration of some of the wine talent in the world. The

participants produce natural, organic and biodynamic wines. Raw Wine is leading the charge for transparency, as they believe that in an ideal wine world, any processing and additives will be clearly communicated to the drinker “so that you know exactly what is in your glass”.

Raw wine is a fi rst step in this direc-tion. It is about truth, authenticity and frank wine talking, but most of all it’s about showcasing really good wine.

The concept is wine’s “poetry”, its art-istry or romanticism or its exceptional-ity as a product.

BUSINESS

GEORGIA TODAY DECEMBER 17 - 19, 201910 POLITICS

Bidzina Ivanishvili on Georgia's European Choice

Continued from page 2

"Georgia is the civilization of The Knight in the Panther's Skin, where the acceptance of that which is foreign and the coexistence of different cultures is a part of our identity, rather than something that has been established through declarations. Chris-tianity was brought to us by Nino of Cappadocia, who was joined by the Armenian Shushanik, the Arab Abo, and the Persian Eustathius.

"Georgia is the homeland of wine and, most likely, of wheat as well, since it was precisely us that Greece, the fi rst European civilization, named as 'Georgia,' or the country of agriculture; it is pre-cisely a Kartvelian tribe, the Chalybes, that are linked with the fi rst production of iron; it is pre-cisely in our country and nowhere else that Jason arrived in order to obtain the Golden Fleece, or the sacred knowledge of the Georgians. Among us, 'the cub was equal to the lion' from the outset and this is what made us Europeans in the fi rst place," Ivan-ishvili told the crowd.

"As early as in the 12th century, we were fi rst in Europe to make a woman king, we conceived the fi rst signs of parliamentarianism, and it was pre-cisely in Georgia that Shota Rustaveli rocked the cradle of European humanism for the fi rst time. Powerful regional centers of European education such as the academies of Gelati and Ikalto emerged here, on our land, from the roots of the Kolkheti Academy.

"Later, historical whirlwinds separated us from our common family; however, just as a well-raised person retains his or her dignity in any environ-ment, so our nation has been able to retain its European culture and values. And even when there was no hope to be found, Sulkhan-Saba was still stubbornly yearning westward, while creating Europe in Georgia with his Sitkvis Kona. He was yearning not because he could not understand geopolitical realities but because he could not do otherwise, since his Georgian nature was European.

"Precisely this Georgian nature gave birth to Vazha-Pshavela, a thinker and humanist of Euro-pean scale, in a small village in eastern Mtianeti, and precisely this Georgian nature gave Aghaza the right to mourn Zviadauri. It is precisely this nature, these values that make each and every Georgian European, and Georgia a natural part of Europe! Therefore, let no one think that we are returning to Europe empty-handed. We have always made our own, important contributions to the European civilization.

"Our homeland – it is a European culture," the party Chairman claimed. "However, the state, which differs from the homeland like the kvevri differs from wine, has not always been of a European type. Now, the time has come to pour the Georgian, European wine – European culture – into a simi-larly European type of state. Georgia should not simply return to Europe formally but rather it must attain its rightful, brilliant place in the constella-tion of Europe. I have faith in this and I believe in it strongly! I believe, because I can see that the Georgian people, the Georgian state and the church of Georgia – the entire nation is united and stead-fast in this choice! I believe, because I know and I can see what the European civilization is founded on!

"Democracy, the rule of law, equality, and toler-ance – these are the values that serve as the foun-dation for Europe and the values that are so deeply rooted in the Georgian spirit. Precisely this nature, these values make Georgia a natural part of Europe! To be the son of multiethnic, multi-confessional Georgia, that is, to be a Georgian, means to sing

the Mravalzhamieri, to create polyphony, to dance the Khorumi, and to write The Knight in the Pan-ther's Skin; To be a Georgian means to lead the Georgian feast and to carry Vazha-Pshavela in your head; Therefore, do not be afraid of anything, pain will not beat us and no enemy will ever defeat us! Because Georgia is immortal! Immortal is its cul-ture, its restless soul, which has always yearned and still yearns toward its European family.

"And today, at a time when we, who stand at the roots of great history, have obtained freedom; at a time when some recall my words concerning the creation of an amazing democracy with irony – in fact, in many ways we are already living in a Euro-pean democracy, which we were able to achieve on the basis of our values, rather than through violence or by imposing something foreign on the people," he said. "It is with precisely such an approach that we achieved association with Europe and the signing of the Free Trade Agreement; it is with precisely such an approach that the Georgian citizen was granted the right of visa-free travel within the European Union; It was precisely our commitment to the European choice that brought us the unprecedented, bipartisan support of our strategic partner, the leader of the free world, the United States of America!

"I'm sure that the day will come when we will celebrate Georgia's accession to the European Union at the same location, at this symbolic place on Freedom Square, and we will all say that historic justice has been restored and that we have achieved our goal! Let us not forget, however, that fi rst of all, Europe is moderation – the ideal balance, the ideal intersection of freedom and responsibility. Unfortunately, we have to return to European space from a low benchmark because we failed to fully realize our responsibility while being dazed by the scent of freedom at the dawn of independence, and we practically destroyed our country. Our political team, the Georgian Dream, received a legacy that was doubly diffi cult. In addition to rampant pov-erty, our inheritance from the previous authorities included occupation, authoritarianism, and state institutions that were seized by one small group and used to repress free thought and free people.

"And the cynicism of today lies in the fact that those who signed off on the occupation are pre-cisely those who assumed the mantle of patriotism and blame us for the occupation; Those who tram-pled fundamental human rights, tortured and mas-sacred their brethren in the streets, seized busi-nesses and the media, practically abolished free speech, abolished the street – you may remember that coming out into the street was forbidden – it is precisely they that accuse us of lacking democ-racy, while addressing us from televisions haphaz-ardly opened using money obtained from looting;

"The person who has virtually become the para-gon of bribery over the last 30 years is talking to us about corruption from the rostrum of Parliament and wants to be presented as the standard-bearer of a fair judiciary. The temptation to respond to them in the manner that they deserve is great. However, I and our political team, the Georgian Dream, remain committed to the ideals of 2012 and even now, we will treat them not in the manner that they deserve but rather in the manner that our people and our great culture deserves.We will over-come all diffi culties; we will reunify our country and revive our economy! And, most importantly, we will continue to walk on this path in a way that will retainthe human being as the most important value, and very soon we will put even our aggres-sive opponents in service of the country – once they themselves have become convinced of the futility of a policy that is based on lies and violence. Because this is what they sign in the Georgian Mravalzhamieri: "Love has rebuilt what animosity has destroyed!"

"And fi nally, as Ilia Chavchavadze used to say: 'Our country needs European experience, sci-ence, and education. This must be its weapon.' Precisely this is our way! This is Ilia's way, this is the European way! We follow this star because we know for certain that in the modern world, the way to salvation lies through education. For this reason, we allowed ourselves to make the largest and most ambitious investment in the future of the country – in its education! Not many countries, even those with economies superior to ours, would have dared to spend 25 percent of the budget on education. And meanwhile, we dared to do so, and we did it! The unprecedented education reform that was launched this year is simultaneously the crown of our country's seven-year peaceful and democratic development, as well as an ambitious statement regarding our inevitable future success! May God aid us on this honorable path!

Long live our beloved homeland, long live Geor-gia! Thank you very much," Ivanishvili concluded.

GEORGIA TODAY DECEMBER 17 - 19, 2019 11POLITICS

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BY TEA MARIAMIDZE

Georgian Prime Minister Giorgi Gakharia has stated that Georgia and Ukraine can achieve more in trade, transport, development

sectors and investments toward various directions.

"We stand ready to work hard every single day to make the economic coop-eration between Ukraine and Georgia more fruitful for our citizens,” the PM said when meeting his Ukrainian coun-terpart, Oleksiy Honcharuk, in Kiyv this weekend.

Gakharia also said that the mutual cooperation, based on economy, strate-gic partnership and security, predomi-nantly aims to ensure the well-being of the citizens of Georgia and Ukraine and to help both countries remain within the European space.

He also expressed gratitude to his Ukrainian colleague for the support demonstrated towards the territorial integrity and sovereignty of Georgia, in turn noting that the Government of Georgia always supports the territorial integrity and sovereignty of Ukraine, both in bilateral and multilateral formats.

During the meeting, Gakharia also underlined the most signifi cant result coming from his offi cial visit to Ukraine: the signing of an agreement on 'The Establishment of a High-Level Strategic Council' after a meeting with Volodymyr Zelensky, President of Ukraine, on December 13.

"It will become the most effective plat-form for our governments, ministries and institutions in various sectors of

economy, security, international relations and culture to cooperate and achieve results even more effectively and effi -ciently,” he noted.

Moreover, the PM focused on the sig-nifi cance of the Euro-Atlantic integration of Georgia and Ukraine, noting that cooperation toward this end should become more effective.

"The Government of Georgia is ready to work to make sure that the strategic partnership and friendship between our two countries brings more tangible results for our citizens,” he added.

On his part, PM Honcharuk noted that Georgia is a strategic partner for Ukraine and the visit of its Prime Minister will serve as a basis for deepening and devel-oping the bilateral relations further. According to him, Ukraine will do its best to increase the trade and fl ow of visitors between the two countries and to deepen and develop economic rela-tions.

"We propose to kick off active work on the development of the freight trans-portation system using the direct inter-national ferry connection between Ukraine and Georgia, as well as the lib-eralization of railway ferry services between the ports of Ukraine and Geor-gia. The project we are working on, which will be equally interesting to Georgia, is the transport corridor Baltic Sea - Black Sea - Caspian Sea. We count on Georgia's active participation in this project," he said.

Before meeting the PM Prime Minister, Gakharia met President Zelensky, with whom he signed an Agreement on the Establishment of the High Level Strate-gic Council of Georgia and Ukraine. It is aimed at covering four key directions: political, trade-economic, defense-secu-

rity and cultural-humanitarian interac-tion. Work-groups created for each of them will be led by respective ministers, thus ensuring a comprehensive bilateral dialogue at a high level.

The leaders of both countries noted that in signing such agreements at the highest level, the countries manifest their readiness towards advancing relations.

When summing up his visit to Ukraine, Gakharia said that Ukraine is Georgia’s strategic partner and also evidence that both countries can better fi ght challenges together.

The PM underlined that both sides see the importance of effective cooperation and strategic partnership between

Ukraine and Georgia.“We can develop faster together towards

European integration and more effec-tively protect our territorial integrity. This support is based on our coopera-tion, economy, transport corridors and trade of course,” he added.

Georgian – Ukrainian relations are based on traditional partnership and close cooperation. As Georgia’s Foreign Ministry reports, the existing legal frame-work consists of 105 bilateral and mul-tilateral agreements, which practically regulates all spheres of relations between the two countries.

Ukraine is one of Georgia’s biggest and most important trade partners, seeing a

free trade regime which is legally regu-lated in both the bilateral and multilateral formats.

An important part of cooperation is experience-sharing successfully imple-mented reforms. Collaboration is also actively developed in the fi elds of agri-culture, public health, sports and youth. Direct scientifi c–educational ties have already been established between major universities of the two countries.

Cooperation in the fi eld of tourism is one the main priorities of the mutual ties. Georgia is one of the most impor-tant destinations for Ukrainian tourists and that number is increasing by the year.

Image source: gov.ge

Georgia, Ukraine Discuss Deepening Economic Cooperation

OP-ED BY EMIL AVDALIANI

On December 12, the Heads of Governments of GUAM (an organization for democracy and economic development) member

states Georgia, Ukraine, Azerbaijan and Moldova, met in Kiyv.

During the talks, Georgia was repre-sented by PM, Giorgi Gakharia. The Prime Ministers of Ukraine, Georgia and Moldova, Oleksiy Honcharuk, Giorgi Gakharia, Ion Chicu, as well as the Vice PM of Azerbaijan, Ali Akhmedov, dis-cussed issues pertaining to the increase of regional cooperation. According to the joint statement, the countries agreed to expand cooperation with their part-ner countries and international organ-izations to carry out regional projects and multilateral programs of coopera-tion. More specifically, the states expressed the need for the use of block-chain technologies in verifying certifi -cates of goods’ origin transported across the GUAM Member States, and the mutual recognition of Authorized Eco-nomic Operators was signed between the customs administrations. Ukraine’s PM Honcharuk said that “two docu-

ments have been signed; these are pro-tocols of intentions in regards to the functioning of customs agencies in our countries. Enacting these two docu-ments by our customs agencies will signifi cantly simplify trade between us”.

This gathering might be a turning point for GUAM (initially called GUUAM). Established in 1997 following the col-lapse of the Soviet Union, small states near the Black Sea strove to develop cooperation to lessen dependence on Russia. It also served as one of the fi rst regional models which linked the Black and Caspian seas, and it had a primarily economic role. At one point, even Uzbek-istan was a member, which potentially allowed the GUUAM (abbreviation of the participant states: Georgia, Ukraine, Uzbekistan, Azerbaijan, and Moldova) to extend to the heart of the Central Asian region.

This was a time when Russia was rel-atively weak, the West seemed powerful and various visions were propounded, among them the reinvigoration of ancient silk roads.

If working effectively, the grouping might be turned into a powerful geopo-litical player. For example, Ukraine con-trols most of the Northern Black Sea and Azerbaijan plays a powerful role as a starting point of crucial trade and a

resource corridor. In between them is the Georgian bridge. Further afi eld, through Azerbaijan, it would be possible to reach out to the Central Asia region, even though Uzbekistan pulled out.

The GUAM grouping, though short of establishing a veritable alliance, never-theless shares one common aim: limiting Moscow’s geopolitical infl uence by being able to dispose of/export their own resources to world markets circumvent-ing Russian territory. In the late 1990s and early 2000s, the project failed to

turn into a serious economic body. Rus-sian infl uence gradually regained its lost positions and quite naturally the coun-tries were unwilling to cause Moscow’s anger. Moreover, GUUAM, later GUAM, members were also dependent on Rus-sian economic, military and, generally, political benevolence.

Back then, Russia played well to pre-vent major western-led projects that could circumvent its territory and pull gas and oil from the South Caucasus and Central Asia. Uzbekistan withdrew from

the project in 2005 and Azerbaijan, Geor-gia, Ukraine and Moldova, with all their economic and military weaknesses, were unable to keep up the prospects of GUAM. Distrust towards was Russia not enough to coordinate foreign policy moves.

The Russians, quite rightly, fear that such initially loose economic projects, and among them GUAM itself, could eventually evolve into fi rmer entities.

As the recent summit Kyiv showed, the GUAM initiative might still be weak, but it is far from dead. Perhaps foreign sup-port could be a defi ning moment. For example, for the EU and the US, which both confront Russia’s moves across the Eurasian landmass, GUAM might be a good basis for creating an interregional economic space.

This year marks the 22nd year of the grouping’s existence and it could be argued that many a geopolitical devel-opment in the Black Sea region points to a coalescing of interests among Geor-gia, Moldova, Ukraine and Azerbaijan. Primary among those interests is eco-nomic cooperation. A great number of infrastructural projects have been carried out which would enable these countries to establish fi rmer economic contacts. Another incentive is that all the member states, except for Azerbaijan, share dif-fi cult relations with Russia.

EU & US Should Support GUAM. The Georgian Perspective