Tbilisi: RUGE Capital – A New Player In Cement Production

RUGE CAPITAL – A NEW PLAYER IN CEMENT PRODUCTION

The FINANCIAL
14/10/2008 00:46
Georgia

The FINANCIAL — A new player RUGE Capital has appeared in the
cement production market in Georgia. From USD 200 to 300 million
will be invested by the partnership of Georgian-American Company
RUGE Capital and Firebird Fund in building a new cement factory,
equipped with special modern filtration systems. ADVERTISEMENT

"We’ve been investing in Georgia since 2004. We’re one of the largest
shareholders of the Bank of Georgia and we’ve been familiar with
Georgia for a long time. Our main competitor on the market will
be Heidelberg Cement who has the largest share on the market. We
assume that the Georgian market can handle more than two companies
and we will take our chances. The market will show us whether we’ll
be leaders or just followers of the market," Ian Hague, Lead Manager
of Firebird Fund, told The FINANCIAL.

"There will be modern filtration systems and so air pollution will
be decreased to a minimum. American investments guarantee that the
quality standards will be in the highest mode, in accordance with
ISO Certificates," Lasha Shanidze, the founder of RUGE Capital,
told The FINANCIAL.

The license period for using the limestone quarry is 20 years. The
factory will employ from about 300 to 500 people. The object brought
at the auction was the Babakiari cement limestone mine in the Marneuli
region. The total volume of the cement limestone to be obtained is
169,261,500 tonnes. The starting selling price was USD 3,000,000. The
RUGE Capital LLC was declared as the winner. The company won the
auction by offering USD 6,800,000. The factory will start operating
in two to three years.

The auction was held in the Ministry of Economic Development of
Georgia with the purpose of issuing the license for obtaining ore
resources. Pioneer Cement Industries Georgia LLC, a group founded
by Rakeen Development, and RUGE Capital were competing. The auction
was won by American-Georgian company RUGE Capital and its partner
Firebird Fund.

Firebird manages four private funds dedicated to investment in publicly
traded equities of companies operating in the former Soviet Union
and early-stage Eastern European countries, as well as two global
portfolio equity funds. Firebird also co-manages two private equity
funds focusing on the Baltic States.

"The competition on the Georgian cement market is high. There are many
small cement producers and also Armenian cement importer companies
in Georgia. The market share of HeidelbergCement Georgia today is
from 50-60%," Akaki Chkhaidze, Head of Marketing and Communication
Department of HeidelbergCement Georgia, told The FINANCIAL.

Today German HeidelbergCement is the number one cement producer on
the market. In May 2006, Heidelberg Cement purchased a stake of 51%
in the Georgian cement grinding plant Kartuli Cementi. This was
Heidelberg Cement’s first investment in the Caucasus region. The
plant is located in Rustavi, 50 km from the Georgian capital Tbilisi
. In the meantime the plant has been extended and transformed into
an integrated cement plant. The new plant with a cement capacity of
400,000 tonnes was commissioned in early 2008.

Heidelberg Cement has the production capacity of 2,000,000 tonnes
annually. From 2006 the company has invested more than USD 248,544,236
in Georgia.

EUR 12,000,000 investments were made in the recent period with the aim
of renewing the filtration systems in Rustavi and Kaspi factories. Due
to the war the suppliers had problems with providing materials and
Heidelberg had to postpone the process. The new filtration system
will start working at the end of 2008 in Kaspi and at the beginning
of 2009 in Rustavi.

At the end of 2006 Heidelberg Cement acquired a stake of 75%
in Saqcementi, the largest cement producer in the Caucasus
region. Saqcementi operates two cement plants (Kaspi and Rustavi)
near the capital Tbilisi with a total capacity of 1.6 million tonnes
of cement.

RUGE Capital and Firebird Fund are going to build a strong brand
"Kavkaz Cement". "This cement will be produced with dry method. Old
technologies are based on using the wet method of cement production and
largely pollute the air. Factory related pollution is the number one
source of pollution in the United States. Factory pollution accounts
for more than half the volume of all water pollution, as well as
for the most deadly of pollutants. More than 365,000 manufacturing
factories consume vast quantities of fresh water to carry away wastes
of several different types", company said.

Nowadays typical industrial factories have been fitted with various
types of pollution control devices that are designed to minimize the
amount of contaminants that are released into the air or water.

Construction related factory discharge includes gypsum, metals,
cement, abrasives and poisonous solvents. According to Lasha Shanidze
the new factory will be equipped with the newest filtration systems
which will guarantee safe operations and perseverance of nature.

"We’ve been working on this project for months now and the war didn’t
stop us. We with our American partners are committed to this project
and thus committed to Georgia. The government did a fantastic job of
promoting competition on the tender. The investment attractiveness
is a combination of two things, the opportunity itself and the risk
that you experience in the course of investing. Georgia continues to
represent a substantial opportunity for investments even after the
war assuming all the risks."

Heidelberg Georgia uses both wet and dry methods for cement
production. It has two wet methods using factories in Kaspi and
Rustavi. The one factory using the dry method is in Rustavi.

Lasha Shanidze worked as a Chief Executive Officer of the Millennium
Challenge Georgia Fund which was created in 2004. It was created by
the Government of the United States of America in partnership with
the Georgian Government to reduce poverty through economic growth in
Georgia. In that program Mr. Shanidze managed to negotiate on behalf
of Georgia around USD 300 million in grant and established team and
organization to run it smoothly.

In September 2007 Shanidze, after 3 years serving as CEO of MCG
resigned to apply his experience and start working in private business
of attracting large investors in other fields of Georgian economy.

"We’ve analyzed the market and found that there’s serious demand for
quality building materials for building Georgian infrastructure,
this including cement. High quality calls for the high price for
the company and we’ll try to guarantee the highest quality on the
market. These kinds of factories equipped with modern technologies will
help Georgia into further European integration," said Mr. Shanidze.
From: Baghdasarian

Georgia’s Joining NATO Not To Affect Armenia’s Defense Capacity: Ana

GEORGIA’S JOINING NATO NOT TO AFFECT ARMENIA’S DEFENSE CAPACITY: ANALYST

ArmInfo
2008-10-15 11:20:00

ArmInfo. Georgia’s joining NATO will not drastically affect the
defense capacity of our country, analyst of the Strategic Analysis
Center "Spectrum" Sergey Sarkisyan told ArmInfo.

‘First, I would not hurry with the conclusion that Georgia is already
in NATO. Second, neither CSTO nor Armenia are going to make a war
with NATO. As for the issues of transit of the Armenian military
cargo through Georgia’s territory, they are quite solvable with NATO
member-states as well, while change of the political alignment in
the region in this case is a separate issue’, the analyst said.

At the same time, Sarkisyan said that Armenia needs to tighten
good neighbourly relations with Georgia. ‘Fulfillment of mutually
beneficial projects, and only the economic ones, should not depend
on the circumstance that someone considers our country as pro-Russian
and Georgia – pro-American’, the analyst resumed.

Armenia is member of CSTO, created on the basis of the Collective
Security Treaty, from its signing day – May 15, 1992, the Treaty is
automatically prolonged every five years. Armenia’s cooperation with
NATO is carried out within the frames of Armenia- NATO Individual
Partnership Programme (IPAP) and the ‘Partnership for Peace’
programme. IPAP programme is divided into two stages: the first stage
has been implemented since January, 2006.

Armenian Peacekeepers Leave Iraq Because Of Disbandment Of Polish Di

ARMENIAN PEACEKEEPERS LEAVE IRAQ BECAUSE OF DISBANDMENT OF POLISH DIVISION

ArmInfo
2008-10-14 20:20:00

ArmInfo. Armenian peacekeepers have left Iraq because of disbandment of
the Polish division, chairman of the permanent parliamentary commission
on defence, security and internal affairs Artur Agabekyan told ArmInfo.

‘Actually, we are ready to return back to Iraq if needed and if the
relevant new format will be set up to make possible for us to do it’,
– he concluded.

To recall, the last turn of the Armenian peacekeepers returned from
Iraq on 7 October.

Muslim States Slam Iraq Christians Violence

MUSLIM STATES SLAM IRAQ CHRISTIANS VIOLENCE

Middle East Online
2008-10-14
UK

OIC chief says violence against Christians in northern city of Mosul
‘unprecedented in the history of Iraq.’

JEDDAH, Saudi Arabia – The Organisation of the Islamic Conference (OIC)
on Tuesday condemned deadly attacks against Christians in northern
Iraq which have been blamed for the flight of over 1,000 families.

OIC chief Ekmeleddin Ihsanoglu said the violence in the northern city
of Mosul was "unprecedented in the history of Iraq."

He called upon the Iraqi authorities to "prosecute the culprits who
are behind these acts to end the suffering of Christian brothers and
provide them with protection."

He said that the 57-member Islamic grouping always calls for
"respecting minorities in the Muslim world."

One Christian was killed and his nephew wounded when gunmen opened
fire in the east Mosul late on Sunday, the latest in a dozen murders
of Christians in the city over the past fortnight.

Heavy police reinforcements have helped stem the flight of Christians
from homes in the city.

Since the US-led invasion of 2003 more than 200 Christians had
been killed and a string of churches attacked, with the violence
intensifying in recent weeks, particularly in the north.

Iraq’s Christian community includes various denominations, including
Syrian Orthodox and Catholic, Armenian Orthodox and Roman Catholic
congregations.

A recent report by Iraq’s Ministry of Human Rights that sets out the
number of deaths in different ethnic communities caused by direct
or indirect attacks in Iraq between 2003 and the end of 2007 showed
that only 172 fatalities were from Iraq’s Christians: 107 Chaldeans,
33 Orthodox, 24 Catholics, four Assyrians, three Anglicans and one
Armenian.

The report added that about 9,000 Christians were living as IDPs.

Since the US-led invasion in 2003, some estimates put the figure of
fatalities of Iraqis (mostly Sunnis and Shiites) up to one million
innocent civilians. Over two million Iraqis are living as IDPs.

Observers say Christians are no more threatened than average Iraqis.

Participation Of Internet-Providers In Using ArmenTel Infrastructure

PARTICIPATION OF INTERNET-PROVIDERS IN USING ARMENTEL INFRASTRUCTURE NOT TO CHANGE THE COMPETITION LEVEL AT THE MARKET

ArmInfo
2008-10-14 18:48:00

ArmInfo. Participation of the Internet-providers in using ArmenTel
infrastructure will not change the competition level at the market,
head of ArmenTel judicial service David Sandukhchyan told ArmInfo
correspondent.

He also added it is necessary to stimulate development of the net
infrastructure, otherwise alternative nets will not develop and
ArmenTel will become the dominating operator for a long period of
time. ‘There are providers which protest against the fact that in
Armenia there is no practice of the joint using of infrastructure but
modern optical nets are being constructed’, – he said. As for the rent
prices, Sandukhchyan said the prices were endorsed by the regulator
and if providers think they are not fair, they can apply to the court.

From: Emil Lazarian | Ararat NewsPress

Commission For Protection Of Economic Competition Of Armenia Intends

COMMISSION FOR PROTECTION OF ECONOMIC COMPETITION OF ARMENIA INTENDS TO FINE ‘ZVARTNOTS’ YEREVAN AIRPORT TO $1 MLN DRAMS

ArmInfo
2008-10-15 11:14:00

ArmInfo. The Commission for Protection of Economic Competition
intends to fine "Zvartnots" Yerevan airport to the sum of 300 mln
drams (to $1 mln) for unfair competition, Head of the Commission’s
press service Armine Udumyan told ArmInfo.

According to her, as a result of the Commission-held monitoring,
it was revealed that "Zvartnots" delivers fuel to different air
companies at different price and, thus, demonstrates a biased attitude
to its clients.

So, the price difference varies from 483,708 drams to 494,320 drams
per 1 ton of aviation fuel. Moreover, the airport delivers fuel at
an unreasoned high price, thus, exceeding the margin for purchase
and sale of fuel which makes up $141 per ton. These violations are
enough for the Commission to make a decision to fine "Zvartnots" at
the rate of 2% of the last-year proceeds or to the sum not exceeding
300 mln drams, A. Udumyan said. The session of the Commission on this
case has been scheduled for Friday.

To recall, the concessionary of "Zvartnots" Yerevan airport and
"Shirak" Gyumri airport is the "Armenian International Airports"
CJSC belonging to the Argentine businessman Eduardo Eurnekyan.

Retail Prices For Oil Products In Armenia Have Tendency For Further

RETAIL PRICES FOR OIL PRODUCTS IN ARMENIA HAVE TENDENCY FOR FURTHER REDUCTION

ArmInfo
2008-10-15 10:44:00

ArmInfo. Retail prices for oil products in petrol-filling stations
of Armenia reduced from early October and have a tendency for further
reduction, deputy Director of the country’s biggest oil trade company
"Flesh" Mushegh Elchyan told ArmInfo.

He said that the fuel prices in Armenia reduced o October 4, that
is stipulated for the prices in the world markets. He assured that
the prices in Armenia will further drop till late October. Started
October 4, the prices for petrol of "Super AI 98" mark in petrol-
filling stations of Armenia reduced from 450 drams per liter to 430
drams, for petrol of "Premium AI 95" – from 420 to 400 drams, for
"Regular AI 91" – from 390 to 370 drams, for diesel fuel – from 400
to 370 drams per liter.

L’Azerbaidjan S’Apprete A Elire Le President Sortant

L’AZERBAIDJAN S’APPRETE A ELIRE LE PRESIDENT SORTANT

Le Monde
14.10.08
France

BAKOU (AZERBAÃ~ODJAN) ENVOYÃ~IE SPÃ~ICIALE

Avec ses gratte-ciel, ses jardins tracés au cordeau, ses
embouteillages, Bakou, la capitale de l’Azerbaïdjan s’affiche comme
la ville la plus prospère du Caucase du sud, un petit Doubaï de la
Caspienne. Grâce au boom du secteur pétrolier, principale source
de revenus du pays, la ville a renoué avec ses fastes du début du
siècle, lorsque les frères Nobel et d’autres se lancèrent dans
l’exploitation de l’or noir. Devenu, grâce a l’argent du pétrole,
un véritable petit émirat, l’Azerbaïdjan s’apprête a élire son
président mercredi 15 octobre.

Sept candidats sont en lice, un seul est donné favori, le
président sortant Ilham Aliev, qui a succédé a son père en
2003. Dépourvue d’enjeux, de débats, de véritable concurrence,
l’élection apparaît comme une simple formalité. "Il s’agit plus
d’un référendum que d’une élection", confirme le politologue Rassim
Mussabaïov. Dépourvus de moyens financiers et de champ d’expression,
les grands partis d’opposition, ont appelé au boycott du scrutin,
qualifié de "pastiche démocratique".

La prospérité du pays, doté d’un des indices de croissance les
plus élevés au monde (25 % en 2007, 18 % en 2008), est largement
mise au compte du clan Aliev, objet d’un véritable culte dans
cette république turcophone, voisine de la Russie, de l’Iran et de
la Turquie.

Comme en Turquie, la république soeur, où les portraits d’Ataturk
trônent chez les commercants du bazar, ceux du président Ilham
Aliev sont affichés dans les boutiques de Bakou. "C’est a lui et
a Gueïdar, son père, que nous devons notre indépendance et notre
richesse", explique Ressoul, un antiquaire de la vieille ville. La
guerre russo-géorgienne de l’été 2008 n’a fait que renforcer
l’aura présidentielle. A l’inverse du remuant président géorgien
Mikheïl Saakachvili, Ilham Aliev mène, aux yeux de sa population,
une politique étrangère prudente, vouée a rapprocher le pays de
l’Occident tout en ménageant le grand voisin russe.

Tout comme la Géorgie, l’Azerbaïdjan voit 20 % de son territoire
échapper a son contrôle. Après une guerre (1988-1994)
avec l’Arménie, Bakou a perdu le contrôle de la région du
Haut-Karabakh, administré par les Arméniens, ainsi que de sept
régions azerbaïdjanaises voisines de l’enclave, convertie en
"zone de sécurité", après avoir été vidées de leurs habitants
(un million de personnes).

Un cessez-le-feu a bien été signé en 1994, mais les
escarmouches sont régulières entre soldats azerbaïdjanais et
Arméniens. Voisines, l’Arménie et l’Azerbaïdjan s’ignorent,
incapables de se mettre d’accord sur le statut de l’enclave. Les
Azerbaïdjanais défendent le principe de l’intégrité territoriale,
les Arméniens du Karabakh, le droit a l’autodétermination.

Ce conflit latent constitue une source majeure d’instabilité dans
cette région stratégique du Caucase du Sud, zone de passage des
hydrocarbures de la Caspienne en route vers les marchés européens. A
Bakou, on ne croit plus en la médiation du groupe de Minsk (Etats
unis, Russie, France) de l’Organisation pour la sécurité et la
coopération (OSCE). "Ils viennent ici, font des déclarations, puis
repartent et rien ne change", déplore Elnur Aslanov, chef du centre
d’analyses a l’administration présidentielle.

Avec un budget militaire en pleine expansion (1 milliard de dollars
en 2007), la tentation est grande de régler le conflit par les
armes. Mais la guerre russo-géorgienne d’aoÃ"t "a refroidi les
ardeurs des radicaux de l’entourage présidentiel qui se préparaient
au scénario d’une guerre au Haut-Karabakh", explique le politologue
Rassim Mussabaïov.

Selon lui, la Russie a plus que jamais intérêt a voir le conflit
se régler, ne serait-ce que parce que "depuis la guerre, Moscou est
coupé de son partenaire stratégique arménien". La base militaire
russe de Gioumri, située a la frontière avec la Turquie, fermée
depuis 1993 par solidarité avec l’Azerbaïdjan, est isolée.

Depuis le mois d’aoÃ"t, aucun équipement, aucun matériel ne peut
transiter par le territoire géorgien. L’espace aérien géorgien lui
étant fermé, Moscou ne peut envoyer ses avions en Arménie. Et en
vertu du blocus azerbaïdjanais de l’Arménie, aucune marchandise ne
peut traverser l’Azerbaïdjan vers ce pays.

Intéressée a dénouer le conflit du Haut-Karabakh, la Russie
encourage la médiation proposée récemment par la Turquie. En
échange de la restitution des régions occupées, la petite Asie
consentirait a rouvrir sa frontière avec l’Arménie et a créer
une commission mixte d’historiens chargés d’étudier la question du
génocide des Arméniens par les Ottomans en 1915.

Les liens entre les deux ennemis historiques se sont réchauffés ces
derniers temps, le président turc Abdullah Gul ayant été convié
a un match de football a Erevan, du jamais vu. Mais la "diplomatie
du football" a ses limites. A Bakou, le plan turc est percu avec
scepticisme. Pour la plupart des analystes, la clé du problème du
Haut-Karabakh se trouve a Moscou.

–Boundary_(ID_kJcLLCX0lmYyj8cyqjctfg)–

‘World Wildlife Fund’ To Enable Armenia’s Business-Sector To Take Pa

‘WORLD WILDLIFE FUND’ TO ENABLE ARMENIA’S BUSINESS-SECTOR TO TAKE PART IN ECOLOGICAL PROGRAMMES

ArmInfo
2008-10-15 10:43:00

ArmInfo. ‘World Wildlife Fund’ will enable Armenia’s business-
sector to take part in the ecological programmes, representative of
the World Wildlife Fund (WWF) in Armenia Artur Khoyetsyan told ArmInfo.

He said WWF-Armenia schedules to appear a mediator in development
of ecological programmes within the frames of cooperation. ‘The
business-sector will give an application for any programme: a programme
for improvement of the infrastructure, personnel training, echotourism
development, etc. For our part, we announce a competition where R&D
establishments, public organizations and other interested parties may
take part. The winners of the competition will receive a grant by the
client>, A. Khoyetsyan explained. He added that the project executors
will have to submit a financial report on a regular basis.’We have not
yet received business applications, however we hope they will appear
soon>, he added. As A. Khoyetsyan said, this is the first complex
business-related programme in Armenia. He recalled that WWF organizzed
a programme in 2007 jointly with HSBC bank. ‘Within the frames of the
programme, every guest of the Armenia-Marriott hotel could donate
one dollar to WWF. As a result, 300 dollars were gathered in all
which were used for acquisition of tires for an off-roader. However,
the fact that we created a precedent and intend to develop it was of
most important for us’, he emphasized.

‘Expo-Russia’ Exhibition To Be Held In Armenia

‘EXPO-RUSSIA’ EXHIBITION TO BE HELD IN ARMENIA

ArmInfo
2008-10-15 09:16:00

ArmInfo. An industrial exhibition "Expo-Russia Armenia" will be held
from October 31 to November 2, 2008 for the first time in Armenia. The
organizers of the upcoming exhibition are "Zarubezh-Expo" OJSC and
"Multi Group" Concern. "Expo-Russia" has become a logical continuation
of the Armenian-Russian business- forum held on April 30 – May 3, 2008
in the Armenian town of Tsakhkadzor. Both projects aim at development
of the economic, cultural, political, scientific-technical cooperation
between Russia and Armenia, establishment and tightening of relations
between the countries, development of a joint business, as well as
trade-economic and investment relations.

As Chairman of the Board of Directors of "Zarubezh-Expo" OJSC
David Vartanov said, the exhibition will be organized on several
topics, including mechanical engineering, construction, transport
and logistics, geology and mining industry, energy, metallurgy,
telecommunications and communication, medicine and healthcare,
oil and gas, agriculture and foods, innovations and investments,
information technologies, chemical industry, education, tourism
and retail trade. Besides the topical exhibition, the guests and
participants of "Expo-Russia" will be able to take part in the
conference "Russia- Armenia: prospects of economic cooperation",
as well as in Round Tables and business meetings. "We hope that
this project will be very topical, actual and successful. Moreover,
we are sure it will become annual", D. Vartanov emphasized.

"Expo-Russia" will be held under direct support of Russia’s Foreign
Ministry, Ministry of Economic Development, Chamber of Commerce and
Industry, Embassy of Russia in Armenia, Embassy of Armenia in Russia,
Representation of Roszarubezhcenter in Armenia, Trade representation
of Russia in Armenia, etc. Over 50 Russian companies will take part in
"Expo-Russia" exhibition.