Page 36 - bne IntelliNews Georgia country report November 2017
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prime   ministers   of   Kazakhstan,   Georgia   and   Uzbekistan,   praised   the   new connection   as   the   fastest   way   to   connect   through   to   London   from   Beijing   by land.   Part   of   China's   One   Belt,   One   Way   infrastructure   programme,   the   BTK provides   a   solution   to   transport   freight   across   Asia   and   Europe   with   no   need   to pass   through   Russia   or   Iran.
According   to   a   statement   issued   by   the   EU   delegation   in   Baku,   the   ralway represents   a   major   step   in   interconnecting   Central   Asia,   Europe,   Turkey, Azerbaijan   and   Georgia.
Positioning   themselves   as   transport   nodes   between   their   bigger   neighbours also   enhances   the   geostrategic   importance   of   the   two   small   countries   in   the South   Caucasus.   Squished   between   Turkey,   Iran   and   Russia,   both   Georgia and   Azerbaijan   have   had   ambivalent   relations   with   Russia   in   recent   years; Azerbaijan's   relations   with   Iran   have   also   been   frequently   strained.   By   creating a   "golden   triangle"   of   economic   cooperation   with   the   only   large   neighbour   that has   not   been   threatening,   Turkey,   Baku   and   Tbilisi   are   hoping   to   strengthen their   relative   importance   in   the   region.
9.1.3    Agriculture   sector   news
Favouritism   has   decimated   the   number   of   Georgian   companies   that   rear and   sell   sheep,   an   investigation   by   Studio   Monitor,   an   associate   of   the Organised   Crime   and   Corruption   Reporting   Project   (OCCRP),   revealed   on August   16.
Georgia's   sheep   industry   took   off   a   decade   ago,   when   a   Georgian   farmer brought   Turkish   and   Lebanese   investors   to   Georgia.   They   became   interested in   grass-fed   sheep   that   are   customarily   sacrificed   in   Muslim   communities   for the   Eid   al-Adha   holiday.
By   2008,   the   price   paid   for   one   head   of   sheep   went   from   almost   nothing   to $60,   one   of   the   farmers   interviewed   for   the   investigation   reported;   the   price continued   to   increase,   moving   up   by   50%   in   2009.   Meanwhile,   the   number   of companies   active   in   this   niche   increased   from   two   in   2008   to   21   in   2009,   while exports   shot   up   from   25,271   sheep   worth   $1.1mn   in   2008   to   266,540   sheep worth   $17.1mn   in   2009.
But   state   controls   introduced   in   2011   decimated   the   industry   to   the   point   where only   five   exporters   remained   in   2013,   the   investigation   argued.   Out   of   the   four companies   that   are   still   active   in   sheep   rearing   at   the   moment,   two   of   them reportedly   have   connections   with   a   former   minister   of   agriculture,   Otar   Donelia, who   is   currently   the   head   of   parliament's   agriculture   committee
.
Thus,   Victoria   LLC   and   Alkernazi   LLC,   the   two   companies,   were   registered   at the   same   address   in   Tbilisi   nine   days   apart   in   2013.   Victoria   was   founded   by Gia   Adamia,   whose   nephew   is   a   close   friend   and   former   classmate   of Donelia's,   the   investigation   claimed.
The   farmers   who   have   quit   the   industry   allege   that   this   link   has   resulted   in government   favouritism   for   the   companies   and   roadblocks   for   everyone   else, driving   them   out   of   business.
Meanwhile,   one   of   the   first   foreign   investors   in   the   business,   a   Turkish
36       GEORGIA  Country  Report   November  2017                                                                                                                                                                                www.intellinews.com


































































































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