Tag Archives: Georgia

Inter RAO sues Georgia

JUNE 10 2017 (The Bulletin) — Russian energy company Inter RAO has begun proceedings at the Stockholm International Arbitration court against Georgia because of losses incurred at its two hydropower plants Khamri-1 and Khamri-2, Georgia’s deputy energy minister Mariam Valishvili told Retuers. It blamed the losses on the devaluation of the Georgian lari and on the government for blocking its move to increase electricity prices.

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Copyright ©Central Asia & South Caucasus Bulletin — all rights reserved

(News report from Issue No. 332, published on June 12 2017)

 

Ukraine visit to Georgia boost military ties

JUNE 8 2017 (The Bulletin) — Ukraine’s defence minister Stepan Poltorak visited Tbilisi for talks with his Georgian counterpart Levan Izoria. Georgia and Ukraine have been developing bilateral military ties. Ukraine is fighting a Russia-backed insurgency in the east; Georgia considers Russia to be its main threat.

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(News report from Issue No. 332, published on June 12 2017)

 

25th Georgian dies in Syria fighting for IS

JUNE 6 2017 (The Bulletin) — Media in Georgia reported that another man from the Pankisi Gorge had died fighting for the extremist IS group in Syria. He was said to be the 25th Georgian national to die fighting for IS. The Pankisi Gorge is a slither of land that borders the Caucasus Mountains. It is predominantly Muslim and was used by Chechen rebel fighters battling Russian troops at the turn of the century as a safe refuge area.

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Copyright ©Central Asia & South Caucasus Bulletin — all rights reserved

(News report from Issue No. 332, published on June 12 2017)

 

Comment: Authority figures and democracy

EDINBURGH, JUNE 12 2017 (The Bulletin)  — This past week, politics in Britain have been overshadowed by the election meltdown and loss of authority of the British PM, Theresa May. She went from having a 20 point lead in opinion polls only two months ago to a single digit lead over Jeremy Corbyn, the Labour leader, on election day. She won, but was returned a much diminished figure.

This is a stark contrast to the strongmen that rule Central Asia, where the democratic touch is so light. That doesn’t mean, though, that there isn’t plenty of political intrigue to enjoy and saviour in the region.

And this week has given us the story of how Shavkat Mirziyoyev has undone one of his key rivals for power, former economy minister Rustam Azimov. Once a potential Second President of Uzbekistan, he now finds himself heading up an entity called the Export-Import Bank. A story of power-plays and, possibly, betrayal.

There has been an apparent growth in grassroots movements in Uzbekistan. Our new correspondent reports from Tashkent on what has been described as the biggest protest in the country for 12 years. It’s great reporting on a very important story.

In Georgia and Azerbaijan the case of the abducted journalist continues to cause the authorities discomfort, as does the reminder that Georgia’s Pankisi Gorge is still an IS recruitment area.

On the business front, we report on China’s first foray into Kazakhstan’s banking sector and on olive oil production in Georgia.

Georgian olive oil producer wants to break into market

TBILISI, JUNE 12 2017 (The Bulletin)  — Georgia’s first home-grown and home-processed olive oil is now being sold across the country, the culmination of a Turkish-inspired ambition.

In an interview with The Bulletin, George Svanidze, Georgia Olive CEO, said that he had always wanted to return from Turkey, where he lived, to develop a business in Georgia.

“We, the diaspora, wanted to bring something good, new investments to Georgia,” he said. “Our Turkish partners have three generation experience in olive oil production, so we decided to bring back this culture to our country.”

And it is this entrepreneurship, this ability to assimilate knowledge abroad and bring it home that makes the Georgian economy resilient and open, analysts have said. It has recovered quicker than its neighbours from a sharp economic downturn over the past three years.

Mr Svanidze said that he and his partners planted their first olive trees in Georgia in 2010. Since then, with the help of a government sponsored scheme called Produce in Georgia, the olive grove has grown to around 350 hectares – roughly the size of 350 rugby pitches. They have now set up a processing plant near the village of Sakobo in Kakheti.

And Mr Svanidze said that the soil quality in Georgia was superior to Italy, Turkey and Greece, the three main traditional makers of olive oil.

“We have such high-quality olives that we produce 1 litre of olive oil from 3.5kg of olives,” he said, comparing this to the usual 5kg needed.

Part of the challenge is tapping into the domestic market. Not many people cook, or eat, with olive oil, preferring to use cheaper oils from nuts.

Zura, the director of a wine shop, said as well as being more expensive, olive oil was too pungent for local palates. “I know Europeans really love it, but it’s no good for our kitchen. The taste is too strong,” he said.

But Mr Svanidze has heard this all before. “First we will take the Georgian market, after that the Trans-Caucasus market and afterwards we will export to Europe and Asia,” he said.

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Copyright ©Central Asia & South Caucasus Bulletin — all rights reserved

(News report from Issue No. 332, published on June 12 2017)

 

Georgia plans to build a trade hub

JUNE 8 2017 (The Bulletin) — Georgia’s government said that it plans to build two new logistics hubs, one at Kutaisi and one outside Tbilisi, in an effort to brand itself as a transit hub between Asia and Europe. Economy minister Giorgi Gakharai said the Tbilisi hub would cost $82m to build and the Kutaisi hub would cost $72m. This year Georgia signed a free trade agreement with China which it said it would use to promote itself as a trading bridge between China and the rest of the world.

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Copyright ©Central Asia & South Caucasus Bulletin — all rights reserved

(News report from Issue No. 332, published on June 12 2017)

 

Abkhazia says arrests five Tajiks with IS link

TBILISI, JUNE 9 2017 (The Bulletin) — The authorities in Georgia’s breakaway region of Abkhazia said that they had arrested five Tajik men for having links to the extremist IS group.

Men from Central Asia have come under increased scrutiny for links to the extremist IS group after a series of attacks this year blamed on the rise of extremist recruitment in the region.

In its four line message on the arrests, the Abkhazian authorities did not say where the men were arrested or why they were suspected of having links to IS. “After carrying out the necessary actions, the detainees were handed over to the Russian side to carry out operational-investigative actions,” it said.

What appears unusual in this case is the presence of five Tajiks in Abkhazia, not known for attracting migrant workers from Central Asia.

Russia is one of the few countries to recognise Abkhazia as an independent state.

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Copyright ©Central Asia & South Caucasus Bulletin — all rights reserved

(News report from Issue No. 332, published on June 12 2017)

 

Gulen-linked arrested asks for asylum in Georgia

JUNE 7 2017 (The Bulletin) — Supporters of Mustafa Emre Cabuk, a manager of a school linked to the Gulen network, protested against his detention by the Georgian authorities last month. A court is considering his appeal for asylum after Turkey asked for Mr Cabuk to be extradited on charges that he was a so-called Gulenist, a group it blames for an attempted coup last year. Turkey has been pressuring countries in Central Asia and the South Caucasus to close down Gulen education networks and extradite the teachers.

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Copyright ©Central Asia & South Caucasus Bulletin — all rights reserved

(News report from Issue No. 332, published on June 12 2017)

Georgians march for rapper arrested with drugs

JUNE 11 2017 (The Bulletin) — Hundreds of people in Batumi and Tbilisi protested against the detention of 21-year-old rapper Giorgi Keburia, also known by his stage name as Kay-G, for carrying ecstasy tablets. His supporters said that the drugs had been planted on the rapper in retaliation for mocking police in a recent music video. The demonstrations highlight the increasingly vocal drug legalisation lobby in Georgia.

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Copyright ©Central Asia & South Caucasus Bulletin — all rights reserved

(News report from Issue No. 332, published on June 12 2017)

 

Stock Market: Central Asia Metals

JUNE 12 2017 (The Bulletin) — Shares in Central Asia Metals (CAM), the Kazakhstan focused miner, stayed steady this week on the London Stock Exchange despite some early calls by stock analysts to buy into it.

At the end of the week it was trading at 220p, roughly the level it has been anchored to since the start of May.

Still, some analysts said that now was a good time to buy into CAM. Peel Hunt has a target price of 290p against CAM, up from 270p. Canaccord Genuity also gives the stock a buy rating.

Across the Caspian Sea, Bank of Georgia, has also been given a lift by analysts. Investec raised its target price for Bank of Georgia to 4,000p from 3,950p. Several other brokerages moved their guidance to a ‘buy’ rating too.

Last month it issued the first ever corporate debt in Georgian lari, attracting widespread publicity. The IFC, part of the World Bank, said that it would step into support the lari issues, agreeing to buy up to a third of the $250m bond sale. Reports said that 20 other institutional investors had applied to buy a total of $207m of the bond, meaning the the IFC ended up with a smaller stake than it had offered.

Kaha Kiknavelidze, Bank of Georgia CEO, said: “IFC’s bid gave us great support in building investor confidence and creating early momentum in book build.”

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Copyright ©Central Asia & South Caucasus Bulletin — all rights reserved

(News report from Issue No. 332, published on June 12 2017)