GEORGIA INVITES RUSSIAN BUSINESSMEN TO PARTAKE IN PRIVATISATION

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TBILISI, May 28 (RIA Novosti) - Georgia proposes to Russian businessmen to participate in privatisation, Georgian Prime Minister Zurab Zhvania said opening up the Georgian-Russian business conference in Tbilisi.

"This year the Georgian government is going to conduct an aggressive privatisation policy. Georgia would be glad to see Russian businessmen taking part in the process of privatisation", he said.

"Every artificial obstacle standing in the way of trade-economic relations between Russia and Georgia should be removed. Politicians should do everything possible to raise the level of Russian investments in the economy of Georgia", Zhvania said.

He assured Russian businessmen that the government of Georgia will create all the necessary conditions to protect the interests of investors. A corresponding legislative base favouring the development of trade-economic relations with Russia will be laid down, Zhvania noted. Our system of taxation will very soon be improved, he promised.

The main areas for investments in Georgia will be energy and agriculture, the food-making and processing industries, tourism, development of the road infrastructure.

"Georgia is looking for investors to carry out the power transmission project to link the Georgian and Turkish power grids. It will make it possible to import additional Russian electricity to Turkey via Georgia", the Georgian premier said.

Georgia is on the lookout for investors to build a major hydraulic electricity station, Khudoni. The project was suspended by the collapse of the Soviet Union.

"We are going to rehabilitate the trunk gas pipeline", he said.

"Together with the Russian company Gazprom we are seeking ways to rehabilitate the gas main and the distribution network", Zhvania said.

He offered to Russian businessmen to invest in the rehabilitation of the road infrastructure. It is, particularly, the building of the modern motor road Poti-Krasny Most to link the Poti sea port and Georgia's border with Azerbaijan and Armenia.

Zhvania also noted that Georgia is going to build the Batumi-Kobuleti highway. Negotiations with would-be investors are under way.

The tourist infrastructure is in the focus of attention of Georgia. It is a vast field of activity for investors, particularly in Georgia's resort zones Borjomi and Adzharia, Zhvania said. Wine tourism will develop in the Kakhetia region.

Georgia's agriculture and processing industry offer a vast prospect for investments, "although this sphere features actually zero taxation and is less organised".

"One of the positive factors for investors interested in Georgian agriculture is that our farming products are ecologically clean, low-cost and traditionally in demand on the Russian market", Zhvania stressed.

"Our processing industry offers the same perspective", he said.

The government of Georgia is going to resume work of its large industrial facilities built way back in the Soviet times.

"Russian businessmen will see with their own eyes the situation at any of our enterprises, which will provoke their interest", the Georgian prime minister said.

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