GEORGIA BI-WEEKLY UPDATE APRIL 4

UNCLAS SECTION 01 OF 02 TBILISI 000568 SIPDIS SIPDIS E.O. 12958: N/A TAGS: PREL PGOV PHUM ECON KDEM GG SUBJECT: GEORGIA BI-WEEKLY UPDATE APRIL 4 ¶1. This cable contains current items of political, economic, and social interest concerning Georgia during the weeks of March 22-April 4. Transport Links with Russia Re-Opening -------------- ¶2. Russia's closure of air and sea links with Georgia -- in effect since October 2006 -- ended with the first Tbilisi-Moscow flight March 25 and the launching of a Batumi-Sochi ferry March 27. Georgian Deputy Foreign Minister Grigol Vashadze said April 1 that Russian officials had indicated they would also soon re-open road traffic between Georgia and Russia via the Kazbegi-Upper Lars border checkpoint. Russia's closure of the crossing point in June 2006 was widely seen as part of Russia's economic sanctions against Georgia, although Russian officials had cited repairs as the official reason. Kazbegi-Upper Lars is the only land crossing point on Georgia's mountainous border with Russia that the Georgians consider legal; the others are in the separatist regions of South Ossetia and Abkhazia, outside the Georgian government's control. The Kazbegi route is economically important to Georgia, and is also a key link between Armenia and Russia. Noghaideli to Lead New Business Group -------------- ¶3. The highest-paid Georgian soccer player in history, AC Milan defender Kakha Kaladze, announced the formation of a new company, Kala-Capital, in Tbilisi March 31. With President Saakashvili in attendance, Kaladze introduced former Prime Minister Zurab Noghaideli as the chairman of the company's supervisory board. Another famous face recruited by Kaladze is former Finance Minister Alexander Alexishvili, who will head Progress Bank, a subsidiary of Kala-Capital. Three areas already identified for Kala Capital's business activities are banking, energy, and real estate development. The company foresees creation of 25,000 new jobs in the coming years. Ministry of Refugees Completes Re-Registration of IDPs -------------- -------------- ¶4. At a March 31 UNHCR-sponsored donor's conference, the Georgian Ministry of Refugees announced that it has completed a re-registration of IDPs displaced by the conflicts in Abkhazia and South Ossetia. According to the Ministry, 230,000 IDPs remain displaced, with 13,500 from South Ossetia and 216,500 from Abkhazia. The Ministry also announced that the long-delayed Action Plan for IDPs will be sent to the Council of Ministers and Parliament for approval in April. The revised Action Plan will focus on the return of IDPs to Abkhazia and South Ossetia while supporting IDPs' "participation in society," with an emphasis on integrating IDPs into the social and health networks provided to the majority of Georgian citizens. The Ministry estimates that the cost to implement all of the programs outlined in the Action Plan will be approximately 23 million lari (USD 15.5 million),of which an estimated 20 million lari (USD 13.5 million) would come from international donors. Chechen Refugee Problem in Pankisi Close to Solution -------------- -------------- ¶5. At the same March 31 donor's conference, Peter Nikolas, UNHCR Representative for Georgia, said that UNHCR was "very close" to achieving durable solutions for the 1,100 refugees remaining in the Pankisi Gorge. Nikolas estimated that with continued donor support, UNHCR could successfully integrate the remaining refugees into the local community within 2-3 years. He called on donors to make a final "push" that would enable UNHCR to expand its micro-finance and income generating projects and complete the naturalization process for refugees still living in the Gorge. Parliament Fails to Find Time for Public Defender's Report -------------- -------------- ¶6. In a March 28 press conference, Public Defender Sozar Subari unveiled his annual report on human rights and expressed dissatisfaction that Parliament had not scheduled a hearing to deliver the report. Subari said he filed the report with Parliament in October, but a scheduled hearing had been postponed three times and was now postponed until after the Parliamentary elections May ¶21. Subari said he had been told there was no time because key officials were working on Georgia's Euro-Atlantic integration in the run-up to the NATO Summit in Bucharest. Subari's report focuses on a number of politically sensitive issues, including violation of property rights; excessive violence by police on November 7 and closing of Imedi TV; alleged illegal actions by Ministry of Internal Affairs official Irakli Kodua; a high prison mortality rate; prosecutorial interference in the court system; and alleged fraudulent actions during presidential elections. Judges to be Trained on Ex Parte Law -------------- ¶7. On March 30 the American Bar Association conducted a "Train the Trainers" program for a group of Georgian experts who will conduct future ethics training for judges. The training included instruction on the 2007 law banning ex parte communication (discussion between a judge and parties to a case outside the courtroom) that has been cited by international experts as a TBILISI 00000568 002 OF 002 significant step forward on judicial reform. In 2008, ABA will train judges throughout Tbilisi and Adjara and will expand its training throughout the country in 2009. Utilizing the ethics module and the trained trainers, the High School of Justice will be able to conduct judicial ethics training for both judicial students and sitting judges throughout Georgia independent of ABA assistance by June 30, 2009. TEFFT