Caucasus Press Review (August 11-17)

According to the Zerkalo paper, Russia’s response to the U.S., EU, Canadian and Australian sanctions has given Azerbaijani farmers a unique chance to expand trade on the Russian market. Russian Minister for Agriculture Nikolai Fedorov named Azerbaijan as one of the main food suppliers of Russia.

Statistics say that exports of vegetables in January-June 2014 increase by 26.4% and fruit by 53.63% compared with the same period in 2013. Over 30% of all fruits and vegetables exported are shipped to Russia. The volumes may rise, because the Ukrainian market will be problematic for Azerbaijani business and will be filled with products from the EU.

Azerbaijan has recently increased the export potential of fruits and vegetables. Over 19,000 businessmen were given loans worth a total of 1.2 billion manats from the National Business Promotion Fund in the last 10 years. 64% of loans were granted for projects to produce and process agricultural products.

The republic launched 28 intensive farms and vineyards, 30 modern greenhouse complexes and 15 enterprises processing 120,000 tons of fruit and vegetables. Formation of 40 logistical centers for storage and distribution of 203,000 tons of agricultural products played an important role in supplying the population with food, increasing exports and keeping prices stable.

Azerbaijan opened 39 enterprises producing a total of 55,000 tons of poultry, 248 million eggs. Thus, the poultry industry produces up to 100,000 tons of products. 16 complexes of pure-bred animal farms for 20,000 animals, 7 dairy enterprises with an output of 175,000 tons, 7 meat enterprises with an output of 81,000 tons annually were launched.

Azerbaijan has an opportunity to increase exports of agricultural products to Russia. Businessmen of the two states will need to negotiate fast and safe transportation of short-life products.

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The Yuzhnaya Ossetia paper says that the government discussed new approaches to developing the investment policy in the region. According to Prime Minister Domenti Kulumbegov, the realized investment program focuses on restoration of infrastructure. In the next years, development of the real sector of the economy will be the priority. The 2015-2017 investment program focuses on the real sector of economy, development of agriculture and industry for the first time. Priorities were set long ago: animal husbandry, gardening, development of greenhouses and processing facilities. Development of industry will be based on local resources. The prime minister said that an Investment Agency will be formed to encourage investors and assist projects of the real sector in South Ossetia.

Vladimir Avdeyenko, the director of a department of the Presidential Directorate for Socio-Economic Cooperation with the CIS, Abkhazia and South Ossetia, proposed focusing on projects using local resources, developing agriculture and processing of agricultural products, logging and production of construction materials, watering.

Earlier, Avdeyenko’s working group of the department and businessmen met South Ossetian entrepreneurs. They reached agreements on exploitation of local resources, development of agriculture and processing of agricultural products, production of meat and dairy products, watering, logging and construction material projects.

The head of the department clarified that combination of different financing resources is considered in every project. First of all, they include personal finances of the initiator of a project, then loans that banks will grant according to recommendations of the Investment Agency and then investment of the Agency itself.

* * *

Russian Minister for North Caucasus Affairs Lev Kutnetsov chaired an expert meeting in Yessentuki to discuss development of the bill on protection of the Kavkazskiye Mineralniye Vody ecological and resort region, Kabardino-Balkarskaya Pravda reports.

Lev Kutnetsov emphasized that the interests of territories and their inhabitants will be precedents of the federal bill. He noted that Kavkazskiye Mineralniye Vody includes territories of Stavropol Territory, Karachay-Cherkessia and Kabardino-Balkaria. That is why composition of the bill will be done in the format of the working group that will consist of representatives of the three regions and experts.

Data from the analysis on the potential of development of the region made a few years ago under the auspices of the Corporations for Development of the North Caucasus was read out at the session. Researchers believe that over 40% of added value in the Kavkazskiye Mineralniye Vody is formed by trade, less by treatment and agricultural centers.

The minister stated that 22,000 people had been given high-tech medical aid in the said period, 20,000 of them were treated outside the district. “We understand how much money the region loses because of the lack of high-technology medical services,” he emphasized. Acting Governor of Stavropol Territory Vladimir Vladimirov said that executives were discussing construction of high-tech medical centers with Italians.

Problems with documents for federal property, unsettled land issues, violations of environmental laws and difficulties in municipal management are some of the factors hindering development of resorts. The flaws will be taken into account during development of the federal bill. Development of the resort region will be a topic for high-scale expert talks at the economic forum Sochi will host in September.

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Georgian Prime Minister Irakly Garibashvili has recently commented on confiscation of business and property by the old government: “I would like to explain to citizens, whose rights were rudely, brutally and cruelly violated by the old authorities, that we care about restoration of their rights all day long,” The Georgian Times quotes him. The PM said that prosecutors had almost finished work on their cases and will inform the public about decisions made for people who had lost property and business. “Every crime will be named and the truth finally found,” promised the prime minister.

Large businessmen, as Business Georgia reports, doubt that the current government will return their property, because it was problematic for the country.

“The prime minister’s statement is despairing, but large companies handed to current owners illegally have serious lobbyists in the government covering them," says Mamiya Sanadiradze, an ex-founder of the Caucasus Online internet provider. In his words, prosecutors were informed about facts of pressure on him, yet not a single witness was questioned.

Businessman Jemal Leonidze, struggling to regain property in the Magnat oil company (a company currently part of the Gulf network of petroleum stations), is skeptical too. He said that the court rejected his claims for property twice. The judge facilitating the bankruptcy and sale of the company was chairing the third process over the company. So, according to Leonidze, the chances that he will win the case are small.

Kakha Kozhoridze, the head of the Association of Young Lawyers of Georgia, wonders why the government is not returning the property businessmen were forced to part with. “This so-called justice does not only mean investigation of alleged crimes involving functionaries of the old authorities. For many of us, justice means return of confiscated property. How can a government be just if it remains the distributor of illegally-acquired property?” wonders Kozhoridze.

* * *

Ingushetia will soon start producing children’s food. A factory producing such food is under construction in Ali-Yurt within the framework of the federal purpose program for socio-economic development of Ingushetia, the Ingushetia paper reports. About 300 million rubles have been granted for the construction.

According to statistics, the region needs 135 tons of dry children’s food, 35 tons of milk products and cereals. The production will serve to fulfil the demands of the market and nearby regions.

About 146 specialists will be recruited to work at the factory. Part of them will be sent for training at the factory to study using complicated technological equipment.

Caucasus domestic and foreign political events in local pressAccording to the Zerkalo paper, Russia’s response to the U.S., EU, Canadian and Australian sanctions has given Azerbaijani farmers a unique chance to expand trade on the Russian market. Russian Minister for Agriculture Nikolai Fedorov named Azerbaijan as one of the main food suppliers of Russia.Statistics say that exports of vegetables in January-June 2014 increase by 26.4% and fruit by 53.63% compared with the same period in 2013. Over 30% of all fruits and vegetables exported are shipped to Russia. The volumes may rise, because the Ukrainian market will be problematic for Azerbaijani business and will be filled with products from the EU.Azerbaijan has recently increased the export potential of fruits and vegetables. Over 19,000 businessmen were given loans worth a total of 1.2 billion manats from the National Business Promotion Fund in the last 10 years. 64% of loans were granted for projects to produce and process agricultural products.The republic launched 28 intensive farms and vineyards, 30 modern greenhouse complexes and 15 enterprises processing 120,000 tons of fruit and vegetables. Formation of 40 logistical centers for storage and distribution of 203,000 tons of agricultural products played an important role in supplying the population with food, increasing exports and keeping prices stable.Azerbaijan opened 39 enterprises producing a total of 55,000 tons of poultry, 248 million eggs. Thus, the poultry industry produces up to 100,000 tons of products. 16 complexes of pure-bred animal farms for 20,000 animals, 7 dairy enterprises with an output of 175,000 tons, 7 meat enterprises with an output of 81,000 tons annually were launched.Azerbaijan has an opportunity to increase exports of agricultural products to Russia. Businessmen of the two states will need to negotiate fast and safe transportation of short-life products.* * *The Yuzhnaya Ossetia paper says that the government discussed new approaches to developing the investment policy in the region. According to Prime Minister Domenti Kulumbegov, the realized investment program focuses on restoration of infrastructure. In the next years, development of the real sector of the economy will be the priority. The 2015-2017 investment program focuses on the real sector of economy, development of agriculture and industry for the first time. Priorities were set long ago: animal husbandry, gardening, development of greenhouses and processing facilities. Development of industry will be based on local resources. The prime minister said that an Investment Agency will be formed to encourage investors and assist projects of the real sector in South Ossetia.Vladimir Avdeyenko, the director of a department of the Presidential Directorate for Socio-Economic Cooperation with the CIS, Abkhazia and South Ossetia, proposed focusing on projects using local resources, developing agriculture and processing of agricultural products, logging and production of construction materials, watering.Earlier, Avdeyenko’s working group of the department and businessmen met South Ossetian entrepreneurs. They reached agreements on exploitation of local resources, development of agriculture and processing of agricultural products, production of meat and dairy products, watering, logging and construction material projects.The head of the department clarified that combination of different financing resources is considered in every project. First of all, they include personal finances of the initiator of a project, then loans that banks will grant according to recommendations of the Investment Agency and then investment of the Agency itself.* * *Russian Minister for North Caucasus Affairs Lev Kutnetsov chaired an expert meeting in Yessentuki to discuss development of the bill on protection of the Kavkazskiye Mineralniye Vody ecological and resort region, Kabardino-Balkarskaya Pravda reports.Lev Kutnetsov emphasized that the interests of territories and their inhabitants will be precedents of the federal bill. He noted that Kavkazskiye Mineralniye Vody includes territories of Stavropol Territory, Karachay-Cherkessia and Kabardino-Balkaria. That is why composition of the bill will be done in the format of the working group that will consist of representatives of the three regions and experts.Data from the analysis on the potential of development of the region made a few years ago under the auspices of the Corporations for Development of the North Caucasus was read out at the session. Researchers believe that over 40% of added value in the Kavkazskiye Mineralniye Vody is formed by trade, less by treatment and agricultural centers.The minister stated that 22,000 people had been given high-tech medical aid in the said period, 20,000 of them were treated outside the district. “We understand how much money the region loses because of the lack of high-technology medical services,” he emphasized. Acting Governor of Stavropol Territory Vladimir Vladimirov said that executives were discussing construction of high-tech medical centers with Italians.Problems with documents for federal property, unsettled land issues, violations of environmental laws and difficulties in municipal management are some of the factors hindering development of resorts. The flaws will be taken into account during development of the federal bill. Development of the resort region will be a topic for high-scale expert talks at the economic forum Sochi will host in September.* * *Georgian Prime Minister Irakly Garibashvili has recently commented on confiscation of business and property by the old government: “I would like to explain to citizens, whose rights were rudely, brutally and cruelly violated by the old authorities, that we care about restoration of their rights all day long,” the Georgian Times quotes him. The PM said that prosecutors had almost finished work on their cases and will inform the public about decisions made for people who had lost property and business. “Every crime will be named and the truth finally found,” promised the prime minister.Large businessmen, as Business Georgia reports, doubt that the current government will return their property, because it was problematic for the country.“The prime minister’s statement is despairing, but large companies handed to current owners illegally have serious lobbyists in the government covering them," says Mamiya Sanadiradze, an ex-founder of the Caucasus Online internet provider. In his words, prosecutors were informed about facts of pressure on him, yet not a single witness was questioned.Businessman Jemal Leonidze, struggling to regain property in the Magnat oil company (a company currently part of the Gulf network of petroleum stations), is skeptical too. He said that the court rejected his claims for property twice. The judge facilitating the bankruptcy and sale of the company was chairing the third process over the company. So, according to Leonidze, the chances that he will win the case are small.Kakha Kozhoridze, the head of the Association of Young Lawyers of Georgia, wonders why the government is not returning the property businessmen were forced to part with. “This so-called justice does not only mean investigation of alleged crimes involving functionaries of the old authorities. For many of us, justice means return of confiscated property. How can a government be just if it remains the distributor of illegally-acquired property?” wonders Kozhoridze.* * *Ingushetia will soon start producing children’s food. A factory producing such food is under construction in Ali-Yurt within the framework of the federal purpose program for socio-economic development of Ingushetia, the Ingushetia paper reports. About 300 million rubles have been granted for the construction.According to statistics, the region needs 135 tons of dry children’s food, 35 tons of milk products and cereals. The production will serve to fulfil the demands of the market and nearby regions.About 146 specialists will be recruited to work at the factory. Part of them will be sent for training at the factory to study using complicated technological equipme