VIDEO №: DVD3 VID0001

Conversation between Ze'ev Frenkiel and Avto Kharaidze in Russian

TRANSCRIPT

[Knocking on the door]

AK (in Georgian): Come in. Let him come in.

Secretary: Do come in.

ZF (in Georgian): Long live!

AK (in Georgian): Long live!

ZF (in Georgian): How do you do?

AK (in Georgian): How are you doing?

ZF (in Georgian): Thank you. (In Russian): I’m not going to waste too much of your
time. Just briefly…

AK: I’ve got something to tell you as well.

ZF: Yes. Look…

AK: I’m going to let her go.

[AK on the phone: (in Georgian): Marina, your free to go, on your way]

AK: Let me start first, ok. I’ve got, very modestly saying, not very good information.

ZF: Ah, go on, go on

AK: Today I’ve learned from the Prime Minister, that that Ron Fuchs said to his
solicitors, and those solicitors passed it on to our solicitors of the Ministry of Justice,
that there is an individual within the Ministry of Finance, who (inaudible) with this
matter. Did you know about it?

ZF: No, he hasn’t told me anything like that. That’s impossible. As people say (in
Georgian): it’s not allowed.

AK: No but, it was the Prime Minister who told me that such conversation had taken
place.

ZF: When was it? Was it yesterday, the day before yesterday, or a long time ago?

AK: The Prime Minister called me…. When we spoke… half an hour ago.

ZF: Half an hour ago?

AK: Yes.

ZF: Can you just repeat: has Ron told his solicitors, and they have said…

AK: I do know, that Ron’s solicitors told about it to the solicitors of the Ministry of
Justice…

ZF: Yes.

AK: … Everything I just mentioned, that there is an individual within the Ministry of
Finance… They do know about it in general.

ZF: Ok, they do.

AK: But we don’t know about it, do we? I’m saying, that we don’t have good
communication (inaudible) coordination.

ZF: That’s why I’m here. Now.

AK: Mhmm.

ZF: That’s why I’ve come.

AK: I’ll tell you… Zeev, I’m going to be straightforward with you. I consider you to
be a friend…

ZF: Well, why am I here, then?

AK: You…

ZF: I playing with your cards, and not with their cards, don’t I?

AK: Yes, I can talk to you openly, cannot I?

ZF: Well…

AK: Let me tell you this: the Ministry of Justice, the lawyers, the Prosecutors Office,
the solicitors – none of them can resolve this issue, because the Prime Minister put me
in charge of it.

ZF: Yes, that’s why I’m here.

AK: If (inaudible) talks to the Ministry of Justice, then let him talk to them…. Then
it’s pointless to talk to (inaudible).

ZF: It’s not Fuchs who talks. Let me tell you this now, it was the purpose of my visit
today, because yesterday morning I knew. You see, currently I talk to him on a daily
basis. It’s because this matter has become so… I must control it. There is an official
case, after the appeal was launched, and there are new lawyers…

AK: Mhmm.

ZF: … which talk to the court…

AK: The lawyers mind their business.

ZF: No, it’s important. It’s not so simple. It’s not so simple. These new lawyers, of
the government…

AK: Mhmm

ZF: …they talk with the lawyers of Ron, and talk with the Government here, with the
Ministry of Justice.

AK: Mhmm, yes.

ZF: Apart from that… and that’s it. They cannot talk to the judges, because it doesn’t
happen, a client cannot talk to a judge. So, what I understood from Ron yesterday:
what they talked about...

AK: Mhmm.

ZF: And my understanding was that they didn’t talk about any sums of money: it
hasn’t been discussed how much money will be paid to Ron Fuchs.

AK: Let them talk…

ZF: No, hang on a minute. It’s not like that: “let them talk”.

AK: (inaudible) directly…

ZF: No, no, no. Hang on…

AK: When we find a common ground, then it will not matter what the lawyers are
talking about.

ZF: Avto, it’s not like that, it’s not like that. You must accept them because the
Government officially accepted them and instructed them to deal with that. The
Government pays them money, they must work, and I’d like to tell you what they
work on. You should not disregard it by saying that they aren’t significant. It’s not
like that. Let me tell you how I understand how it should be steered, how it should be
welt with.

AK: Yes.

ZF: Today they are concentrated on this direction: where the Government will take
the money from in order to make a payment. Not how much, but where from. And
they work on the direction, which I told you – BP. They said that they are to be
blamed. This is not this government’s fault at all. All it happened during the
Shevardnadze era. Then the new people came and (inaudible) situation. You see what
I mean. Today they’re getting some reaction (in English): feedback (in Russian): from
Ron’s lawyers. They pass on this information to the Ministry of Justice. They a
person there, I even know the name of this person. This is a lawyer from the
Government’s side – Suman and he’s got a very difficult surname, I guess he’s an
Indian.
AK: Mhmm.

ZF: He works for this firm. This Suman collects the information and passes on to the
Ministry of Justice, then waits for the reaction. It takes some time and then he
forwards this reaction to Ron’s lawyers. The money is not being discussed there.

AK: Well, I know that.

ZF: The only thing that is being discussed is where to get the money from. As a
matter of principle, it is good. Let them reclaim it from BP. At the end of the day, this
BP has to pay believe me.

[Knocking on the door]

AK: (In Georgian): Come in.

Secretary: See you later.

AK: (In Georgian): Take care.

ZF: At the end of the day, BP has to pay it. If they find a way to this BP…

AK: Mhmm.

ZF: …the right way. Then the money has to be recovered from BP, maximum.

AK: (Inaudible)

ZF: Hang on a second. It has no connection with our business and it cannot spoil it. It
does not spoil it. The other way around – it’s even better. For instance, if you…

AK: How can we get?

ZF: This can be (inaudible) alright, and then you can get from the 90.

AK: Mhmm.

ZF: 92

AK: Mhmm.

ZF: Not a hundred, but ninety something. Then I could say that (inaudible).

AK: (Inaudible) is that going to be more, yes?

ZF: Yes, because if there is more money, then I can say it’s for you (inaudible). If it
goes by your way, money, money, then you’ll come and ask for 86.

AK: I’d like to say something else. Are you sure that Ron hasn’t spoken to his
solicitors about it?

ZF: No, it couldn’t be. Listen, Ron…

AK: By the way it (inaudible)

ZF: Well it’s Rezo here; he doesn’t know the details anymore. He knows what he
knew till some moment.

AK: Rezo - forget him.

ZF: Ok, I will forget. That’s it - Ron and I.

AK: You, Ron and I.

ZF: they have probably spoken to Ianni (inaudible) and that’s it. An, it could be that
he has spoken to his lawyers, but these lawyers cannot disclose it to the Georgian
lawyers. No way.

AK: Does he (inaudible) with his lawyers?

ZF: (In English) God forbid! Nobody has been spoken to about it. Ron, Iannni and
your two, and that’s it. Nobody talks about it. No way. You can relay on me 100%.

AK: Let’s have some cognac.

ZF: Let’s have some. My girlfriend is coming to see me at 9 o’clock and I’ll be
(inaudible).

AK: Yes (giggling).

ZF: Would you like to join us there?

AK: No…

ZF: Will you feel awkward there?

AK: Yes, I will.

ZF: What is that? Is that something new?

AK: It’s made in Georgia.

ZF: Is it?

AK: Yes.

ZF: It has to be opened with pliers.

AK: I think that is it, yes?

ZF: Yes that’s it, it even too much, what else? Are you going to bring “satsivi” or
what?

AK: (Giggling).

ZF: (inaudible) your hands.

AK: It’s broken.

ZF: Because it’s dry… I didn’t understand. Only now I understand. Did you think that
he has spoken with them about it?

AK: Yes.

ZF: No. I thought you meant in general…

AK: Of course, in general…

ZF: No, there’s no way, no way… It’s only Ianni, even his lawyers don’t know about
it.

AK: Mhmm.

ZF: I do know that. He even hasn’t spoken to the lawyers about it. (Inaudible)
dropped, I misunderstood…

AK: I’ve got a question.

ZF: Yes.

AK: Hi is going to be on his own in Istanbul, without the lawyers, is not he?

ZF: Yes, without the lawyers. He’ll be on his own. He even asked me what to wear. I
said: “You can wear jeans, and a shirt…”

AK: Yes, yes I will as well…

ZF: Yes, yes, yes.

AK: That’s clear.

ZF: Only now I understood (inaudible) no (in English): God forbid. (In Russian):
How shall I express myself: God forbid (giggling).

AK: God forbid (giggling).

ZF: No, God forbid. No way. Listen, he’s a serious man, isn’t he?

AK: Tomorrow. The prime Minister will be back tomorrow…

ZF: Ok. What I’d like to tell you now: look, the Minister of Justice…

AK: Mhmm.

ZF: …this is today is (inaudible) it’s not a newly appointed, Western educated young
chap and etc. This is an old civil servant…

AK: Mhmm.

ZF: … a former prosecutor. You see what I mean (inaudible).

AK: Yes I know, but it’s irrelevant.

ZF: What the… Hang on. Hang on… I’ve been here for 18 years; I know the system
inside out. Starting from Shevardnadze… I’ve known Misha since he was the
Minister of Justice in the Shevardnadze administration, when he was in opposition.
We were friend then.

AK: Mhmm.

ZF: I still have his old mobile number stored in my handset. But he changed it a log
time ago. It’s because the time has passed. He’s a president, and it’s different now,
yes? I’m friends with Data.

AK: With his brother?

ZF: Yes, with his brother.

[AK pouring drink]

AK: That’s enough, thank you. Look, what I’m offering: I’m being logical… I don’t
know, maybe that’s how it is. I’m just thinking out loud now.

[Bottle cork pop sound]

ZF: Everything is exploding here (giggling) it’s either too much gas, or it’s stuck
(giggling) is it what they call (inaudible). Look, Nika was put in charge of this
matter…

AK: Mhmm.

ZF: Nika is a curator of this matter. It means that all the information must be directed
to him.

AK: Mhmm.

ZF: There are two sources: the main one is your Kakha, who reports to him about the
progress along the way; and the Ministry of Justice, which is an existing official way.

AK: But Nika is the curator of the finance. Once we cut a deal, that’s it…

ZF: I understand.

AK: …it will be resolved.

ZF: I understand, but officially the Ministry of Justice is working on it, the lawyers
have been paid money, they’ve been instructed…

AK: I know they are working on it. What’s the problem with it?

ZF: No, the other way around, it’s good. Let them work in their own way; let them
reclaim it from BP. ZF: It is very good…

AK: Of course…
ZF: It is better, because I’d be able to go upwards. That’s what I wanted to tell you.
They don’t talk about money at all. How much 50, 100, 90 – it is not being discussed.

AK: Of course they aren’t instructed to talk about that.

ZF: They’ve been probably instructed to… I don’t know what they’ve been instructed
to do.

AK: The legal issues.

ZF: Yes but they approached the court for the appeal. It means they had prepared the
case…

AK: Yes, but when Ron and I cut a deal, then this appeal and everything will be over.

ZF: This will be over, because Ron will tell his lawyers: “I have reached agreement
with the other party”…

AK: That’s it.

ZF: That’s it. The case will be closed at the international level.

AK: (Inaudible)

ZF: That’s it. And where Ron gets his money from: if it’s from BP, even better than.
Let them pay (inaudible). You know, I’ll tell you a storey, because you don’t know
that and you would never know. It’s because it takes 2-3 months to (inaudible).

AK: Mhmm.

ZF: And I know everything. Look, when we started working on this pipeline, I was a
project manager. Me did some work: initially we did 70% of the work; in Supsa we
did about 5-7% of work. And then we were stripped of these rights. Now, look, who
played what role in this deal, as a result of which we were stripped of our rights on all
energy projects in Georgia. It wasn’t only the pipeline, there were other… AIOC

AK: Mhmm

ZF: This is an association of Baku. It approached us with a letter. In the letter they
asked us what rights we had; they asked us to serve our documents to them in order to
avoid mistakes and lawsuits against them. We served it to them, they had a look and
as a matter of principle, they accepted that we, indeed, enjoyed these rights. When the
things moved forward, we were negotiating with the Government of Georgia the
transit price of the Baku-Supsa pipeline: how much money we had to pay per
transported tonne to the Government after the completion of this pipeline. It should
have transported up to 4 million tonnes a year. The price we gave was between 6-7
dollars per tonne. Despite that, the Government rejected our offer, and do you know
what deal they accepted? 17 cents per barrel, which is 1.10 per tonne: 6 times less
than we offered. Who were these people who played this role: these were Chanturia,
Basilia. Do you know this name?

AK: Yes of course.

ZF: Ok, Basilia. These people, Basilia and another adviser of Shevardnadze, I cannot
remember his name. The two signed a letter, which was sent to BP. The letter says
that the Government of Georgia completely removes liability from them, for any
damages caused by stripping these rights from us. It means that they cleared BP: BP
has nothing to do with it; it is the Government of Georgia. It was Basilia and
somebody else, I cannot remember, his name ended with “shvili”. What they did was
they sold this country, and for what I don’t know; probably not for a smile.

AK: (giggling)

ZF: You see what I mean.

AK: It was in the past.

ZF: It was in the past, but it must be remembered, because… Do you know how much
money BP generates per day from this pipeline? 100 million dollars a day - from what
is transported through Georgia, you see, there are only two pipelines today…

AK: Now you’re saying how we’d be able to allocate this money.

ZF: Yes.

AK: This is not a problem.

ZF: This is a problem. And it must be dealt with.

AK: It’s a different sphere.

ZF: Yes, yes, yes.

AK: We can talk about that… Now, we need to think how to carry out our business
very smoothly and precisely.

ZF: Yes.

AK: I think about it all the time.

ZF: Yes.

AK: Tomorrow the Prime Minister returns to Georgia. To morrow or the day after
tomorrow, I’d like him to get a final answer: the scheme.

ZF: The scheme.

AK: Did you tell about your scheme to (inaudible)?

ZF: Yes, that it similar to yours.

AK: Yes.

ZF: Ok.

AK: Is it possible, if you have time, to go through this again.

ZF: Please, please.

AK: Let’s check out the pros and cons.

ZF: I’ll tell you how I’m prepared to see this.

AK: Yes.

ZF: We’ll draw it on a piece of paper.

AK: Let’s say a toast first.

ZF: No (inaudible) it’s better to draw it. To our meeting and success.

[Having a drink]

AK: Not too bed, I guess?

ZF: Well, not too bed. There is room for improvement. (Giggling). Look, in order to
make it super clean… I shall call it “A”…

AK: Mhmm.

ZF: …he must get the money from the Government.

AK: Yes.

ZF: There is (inaudible).

AK: Mhmm.

ZF: Zeev has a company. It doesn’t belong to me, but it’s mine.

AK: Who was a founder of this company?

ZF: The people from Greece.

AK: Are you a director of this company?

ZF: I’m not a director, but I’m telling you I’m a beneficial owner. I fully control it
and it’s 100% mine. Officially there are two women who run the books. These are
Cypriot Greeks. The name of the company is Ninetko and it’s completely under my
control. I worked with (inaudible). I worked between 1992 – 1997.

AK: Mhmm.

ZF: I’ll enter into a contract with his company. This contract will be, for instance, for
5 million, or 6 million.

AK: No, I don’t know (inaudible) it will have to be decided. Ron knows that it’s 5
million.

ZF: Yes.
AK: But if we make cash payment, it might increase.

ZF: I (inaudible) 5, 7.

AK: (inaudible) realistically speaking, 500 thousand – is definite.

ZF: No problem. Shall we put “X” here.

AK: Yes. More than 5 million.

ZF: I have a contract with him. And the contract contains the terms and it’s logical,
because I’ve been working for all these years. For instance the amount of the transfer
is 80, and he must give this “X” (whispering).

AK: Is it guaranteed that that the money from your company will reach me?

ZF: Is it possible for you to trust me in this instance? Completely?

AK: (Inaudible)

ZF: Please. (Whispering): (inaudible).

AK: So, Ron will hire a company, similar to that one…

ZF: Yes.

AK: …which will be registered offshore. The director of this company… This
company will have a branch in Tbilisi…

ZF: Ok.

AK: (Inaudible) 20 thousand is too little. The director of this company will be you.

ZF: Yes.

AK: Ron hires this company in order to conduct talks with Georgia, with the
Government of Georgia.

ZF: So these are official negotiations. Ron hires this company to conduct negotiations
and I’m a director of this company.

AK: You are a director of this firm.

ZF: Ok.

AK: Once they cut a deal, the State and this company, Ron will make payment to
here.

ZF: Yes, that’s fine. This is very similar…

AK: I said to you, that it was very similar to your scheme, didn’t I?

ZF: Yes, it’s very similar. But, look…

AK: Ron will pay this company commission rate.

ZF: Well yes, he officially had an agreement with a company, which was a hired
company, and I’m a director and this company will receive a transfer.

AK: Yes.

ZF: That’s it. No problem. It’s the same (inaudible).

AK: (Inaudible).

ZF: No I understand, I understand everything (giggling). What I don’t understand is

why you want to make a branch in Georgia, officially…

AK: It’s simply more assured, that’s why.

ZF: It doesn’t help. It doesn’t help.

AK: (Inaudible)

ZF: The other way around….

AK: That’s why I’m discussing this (inaudible).

ZF: We have to foresee not only one or two steps ahead, but also ten steps ahead. You
can use my experience here (inaudible).

AK: It also could be done this way. For instance, let’s say it’s 10 million, which he
gives to the Government from here...

ZF: Yes.

AK: We can put in the contract: that 9 million out of the 10 goes here and 1 million
goes there.

ZF: Yes.

AK: We’ll put it in the contract.

ZF: Everything is possible. Everything is possible. Look, there is another way, were
you give advance instruction to a bank to… Let’s say it’s me, my company. So,
instead of me redirecting the credited sum to you, we’ll go together to my bank and
arrange and agreement with the bank. According to this agreement, the bank will
automatically transfer to you any sum that hits my account. The funds will not remain
in my account. It’ll be automatic. This is a Bank of Cyprus, it’s a (in English): popular
bank, (in Russian): HSBC owns shares. This is a big bank.

AK: That is also a good option.

ZF: Yes, you will not have to incorporate a new company, nothing. You’ll just use my
company, just it’s name, and the transfer will be instantly redirected to the account,
which you instruct. And then I will not have any control over it. The bank makes a
direct transfer there.
AK: Does Ron know about your scheme?

ZF: No, no. He doesn’t know. He just told me to come up with a scheme (inaudible).

AK: And he’ll obviously give a green light, yes?

ZF: He’s already given a green light. It doesn’t matter for him how it is going to
happen. You can come and…

AK: Of course, he doesn’t lose anything, but I will…

ZF: He doesn’t give a shit.

AK: (Inaudible).

ZF: That’s why I have (inaudible). You just have to listen to my advice, because I’m
being your adviser now, not only a friend (giggling). This is clean; this company has
existed for 11 years, since 1999. Everything is well established in it…

AK: Is it in Cyprus?

ZF: Yes in Cyprus. Millions have turned there. If it receives 5,6, or 7 million
payment, it would be unusual. You see what I mean. If you open a new company, and
you receive a payment of several millions, the director will have to account for it:
where the money originates from…

AK: Basically, I’ll discuss it…

ZF: I don’t want to have responsibility either. We’ll travel there together, or with
someone else as well, I don’t know: you’ll have to decide yourselves.

AK: About this 500 thousand, which I said I would give you (inaudible) …

ZF: Obviously, nobody will and I need no guarantee, your word is enough.
(Giggling) I’m not asking you to give it to me automatically. Once it arrives, you’ll
transfer it yourself. I’m not worried about it. I don’t have such position (giggling).

AK: I understand everything (inaudible). With regards to (inaudible), which you

mentioned in the restaurant on that occasion. This 300 million…

ZF: Ah.

AK: It is also going well.

ZF: I’ve already spoken to my partner, which…

AK: What is required from me? tell me.

ZF: Some specific state projects are required from you…

AK: No problem.

ZF: It has to be above 100 million.

AK: Above 100 million. For instance, I’ve managed to get a project valued above 100
million; let’s say it’s 150 million.

ZF: Ok.

AK: What’s going to be the mechanism?

ZF: This mechanism works this way: let’s say you have a project for 150 million, I’ll
make a 200 million project out of it. I’ll ask for 200. It’s coming from the Americans.
We’ll prepare a half-page executive summary.

AK: Yes.

ZF: We’ll describe the project. I’ll send it there to Tennessee in America. My partner
will take it to (inaudible) and submit it. They’ll say whether it’s interesting or not. For
instance they find it interesting. They’ve already given me a positive response on
Georgia. I’ve already done some work. Georgia is already (in English): ok.

AK: How much are they prepared to…

ZF: Up to half a billion dollars. Yes, 500 million – they are prepared to allocate to
Georgia. I’ve already arranged 500 million for the Ukraine as well.

AK: Mhmm. Let’s talk about Georgia (inaudible)

ZF: Yes, about Georgia, fuck them (giggling). If it goes well, I’ll make good money
as well. But it’s not only me how gets a share, I make money for (whispering)
(inaudible). They are so rude, so vulgar (whispering) (inaudible). He wants to make
money, and I tell him…

AK: No, no, I…

ZF: No, no, no, no. I’m telling him…

AK: Ah.

ZF: You see we had a friendly meeting and I’m telling him (whispering) (inaudible)

AK: (giggling).

ZF: But I’m number two there. How do they call it? (Inaudible).

AK: What?

ZF: I don’t know how they call it now, is it (in English): special…

AK: Doesn’t matter.

ZF: How do they call it here?

AK: It’s the Ministry of Internal Affairs here.

ZF: The Ministry of Internal Affairs.

AK: It doesn’t exist here separately.

ZF: No, it’s not under the Ministry of Internal Affairs. To cut a long storey short, this
chap, who is with me, I listened how he spoke over the phone not only about my
business, but also about others (inaudible): “You must go there, and take it from them
(inaudible)”.

AK: Is he a Minister?

ZF: No he isn’t, but he is a high-ranking official, yes. I asked him: “Sasha are you not
afraid?”

AK: In the Ukraine they do not (inaudible) no matter what you do.

ZF: Yes and now he (whispering) (inaudible). I’m currently buying from him 2000
tonnes of metal poles, 18 cm diameter, 8 meter long. I need it for Norway. They build
bridges there and the poles are driven into the seabed. They buy it in France, in
various countries. I said, let’s buy it in the Ukraine. They said: “ We have approached
the Ukraine on several occasions but haven’t even received an offer”. Why? You are
not going to get an offer; it will not work for Norway, unless they get a kickback.
They rather not sell it at all, if they don’t get it. When I approached him now, he
asked me directly: “How much is the kickback”? I said: ”I don’t know. First, give us a
price and we’ll add it ourselves. We need to know the purchase price first. My friend
is there”. Well, let’s see what happens. I approached him this morning. He has to
reply by the end of next week. It’s Azovstal (whispering) (inaudible).

AK: Let’s get back to our business, let’s get back to Georgia (giggling).

ZF: Let’s get back to Georgia. Is there is a project valued 150 million….

AK: Yes, 150 million.

ZF: 150. I’ll make 200 out of that. Obviously we’ll make corrections. It’s simple: it’s
just 25 %.

AK: And, when the money will be allocated?

ZF: Maximum in 4 - 6 months. There is an awful lot of red tape: paperwork.

AK: Well, this…

ZF: It is called (in English): compliance checks. (In Russian): there are approximately
13 documents, which are simple: full name of the director of this plant, or this project,
his phone number. It’s just simple information; then some sort of description; then
something from a bank; then evaluation. To cut a long story short, it’ll take you a
week to fill in the documentation. The commission: if they are interested, then they’ll
ask for a specific business plan, timing, cash flow and etc. We’ll get the economists to
do the job. It’ll take us up to 3 months to prepare the documents. Let’s say it’s a hydro
station.

AK: Mhmm. But the work will need to be done realistically, will it not?
ZF: They’ll give me the money…

AK: Of course they will, but this work…

ZF: Ah, obviously this work will need to be done. If I don’t get it done once...

AK: That is already my competence. I should do at least something, shouldn’t I?

ZF: Most definitely. They’ll drop me off if I don’t get it done even once: I wouldn’t
be able to work with them anymore. No, the job has to be done, and we’ll make
money out of that.

AK: Can you say how much would it be from one project?

ZF: Look, in this kind of project between one hundred and two…

AK: Give me the percentage.

ZF: I’ll give you the percentage. The gross income from such large projects is
between 20 – 25 %. Let’s say it’s 20%. If you have 200 million project…

AK: Mhmm.

ZF: …then the gross income would be 40 million: take 30% expenses away, let’s say
15 drops off and 25 million remains – that’s income. (Whispering): it can be easily
split a bill; 10 million out of 200 could be split.

AK: We’ll get this one done first, and then we can deal with that.

ZF: And they like Georgia. The worst impression they have about Armenia, because
Armenia has been given money on several occasions and they don’t pay back. They
have a very low trust level. They’ve been told to approach Turkmenistan for it…
They don’t want to… the president doesn’t want to… we’ve spoken about it, haven’t
we? The President of Armenia says: “If I don’t have a 100% approval guarantee, I
will not approach him”. Well, he is right, he doesn’t want to be refused. But here we
can get it done: what is required is a sovereign guarantee of Georgia.

AK: (Inaudible)

ZF: Will it be? But they’ll need to talk to the International Monetary Fund, which
regulates Georgia’s finance. But in my view they’ll give a green light for a good
project.

AK: (Inaudible) it needs to be done first.

ZF: It needs to be agreed. If it is BP, then it’s not going to be (inaudible) in this case, I
think he’ll agree to give 10% discount. Let’s say 90. It’s my view, not his. I’m saying
this, not he. This is my view. If it’s BP, then he’ll say: “Ok, give me 90, or 89, or
something like that”. And then it’ll (inaudible).

AK: It would be good (inaudible) 5 million or more.

ZF: We’ll make it more. If it is just like you said… Although I don’t know how much
you can say… That’s why we meet.

AK: I have understood everything.

ZF: Look, if you want me to see Kakha, then I’m happy to see him with you and
explain and etc. If you want me to see Nika, we’ll go and see Nika.

AK: Yes, but I think Kakha will not want to talk to you about it.

ZF: No, look. This is all your decision.

AK: Kahkha knows and the Prime Minister knows, but to discuss it…

ZF: There’s no need to talk to me about it. You talk to me and that’s enough. But tell
me…

AK: That’s what (inaudible).

ZF: Tell me this (whispering): will Tatishvili find out about it, that it has to go ahead?

AK: About it?

ZF: Yes.

AK: Of course no.

ZF: Then please explain to me: how did Rezo tell me, in the very beginning, when he
first met me…

AK: Mhmm.

ZF: (Whispering): he told me that it was offered to him by… It was not Adeishvili.
He hadn’t met him. He had met with the head of the special task (inaudible) unit.

AK: Was it in the Ministry of Justice?

ZF: Yes, in the ministry of Justice (inaudible) and Prosecutor’s Office.

AK: The Prosecutors Office is also there.

ZF: In the Ministry of Justice. I know, but it was somebody from the Prosecutor’s
Office. I think that…

AK: Let me tell you, they also work on this matter.

ZF: Yes.

AK: But they could not do anything.

ZF: Yes, but why did they tell him about it?
AK: They worked on this matter in the past, didn’t they? I did mention, didn’t I?
When first its was first meeting (inaudible).

ZF: But are you sure that there is no (whispering) (inaudible). (Whispering): he’s not
going to believe that everything is clear. You see, as a human…

AK: The main thing, the main thin is that this is the Prime Minister’s matter.

ZF: That’s it, then I don’t care. I’m just telling you that (whispering) (inaudible). It’s
because Rezo told me that. He didn’t tell me about me, he told me about himself, that
he was offered. And he said (inaudible).

AK: He didn’t say (inaudible).

ZF: He didn’t say… I’m almost 80 I don’t want anything.

AK: (Inaudible) he wouldn’t have been able and that’s it. It’s already in the past.
(Inaudible).

ZF: No, he told me: “I don’t want anything”…

AK: If this scheme works, then I’ll give you (inaudible) [cell phone signal adding
noise to the recording: inaudible].

ZF: (inaudible): … his position, check who is this person: deputy head of the special
task unit of the prosecutor’s office.

AK: you don’t know the surname do you?

ZF: I would have told you, if I had known. He cannot remember either, or he is not
willing to tell me. Deputy head of the special task unit or something like that, of the
Prosecutor’s Office.

AK: (Inaudible).

ZF: No, just check the information, it always has a value.

AK: I’m giving you 500 thousand, am I not? (Giggling) (Inaudible) more.

ZF: I didn’t say a word.

AK: (Laughing)

ZF: I said, thank you.

AK: It’s real (inaudible).

ZF: If you had said 495, it would have been alright as well.

AK: (Laughing).

ZF: The main thing is to get it done, to move it forward…

AK: Let’ drink to our friendship.

ZF: (In Georgian): Cheers, to friendship. (In Russian): To many projects. (In English):
Cheers.

AK: (In English): Cheers.

ZF: look. On the roof of this building, I’d like to install an Internet transmitter.

AK: On this building? On our building?

ZF: Yes on this one. On the roof.

AK: Mhmm.

ZF: If you could speak to somebody who is in charge of this building, who is
responsible for everything.

AK: I’ll instruct somebody. I’ll get it done.

ZF: I’ll ask my director, his name is David Tutberidze…

AK: Mhmm.

ZF: As I previously told you I have a communications company and I’m an Internet
provider. I don’t cover Ortachala, because I could not find a tall building. And this
place is a superb place for it. In exchange I’d be able to do something for the
Ministry, for you, to provide a free Internet service. This is done officially. Don’t
think that this is a harmful areal, no it’s a transmitter. It just transmits a signal from
point on another one. I’ve got one in Rustavi. I’m about to install one in Temka; also
another one on the statue of Zurab Tsereteli. To cut a long storey short I’ll cover the
whole city area.

AK: It’s not harmful, is it?

ZF: No. Whole world operates it. It’s a wireless Internet. Whole world… If you give
the name of a person that I need to contact here, I’ll get Dato to speak to them. I don’t
know exactly, can’t remember the surname. I’ll let you know. Ok, tell me next week.
And then I’ll have my Internet at home. Currently my Internet supplier is Caucasus. I
live just 200 meters…

AK: Is Caucasus a normal provider?

ZF: It’s a normal provider, but let me explain how they all work: Caucasus and all
others. What is Internet? Imagine a pipe…

AK: Mhmm.

ZF: And this is running water pipe. If there is much water, then you have pressure and
resistance.

AK: Yes.
ZF: If there is not enough water and it’s just 70 % then (inaudible). Internet is the
same.

AK: Yes.

ZF: If I load the Internet with 200 users…

AK: Mhmm.

ZF: If 121 users are in the Internet at the same time, then the Internet will slow down.
If you want to download something, then you have to wait and wait at the computer.
You don’t even know what’s the reason. That’s how Caucasus works, because it’ll
cost money to increase the pipe. I’ll work by Europe’s standard – 67%. Once I reach
67% I’ll add a pipe.

AK: That’s clear. And the speed…

ZF: That’s why all American organizations work with me, the Embassies. They know
that I don’t cheat. I provide a decent service. I could have earned more, but the quality
will suffer.

AK: That’s clear.

ZF: Ok, are going to go home early today?

AK: I think so.

ZF: Is it Friday?

AK: Yes Friday.

ZF: Candles must be lit shortly by the Jews (giggling). When the first three stars
appear, then Saturday starts.

AK: Alright then.

ZF: Ok, thank you. I’ll grab a chocolate for the journey.

AK: (Inaudible)

ZF: Ok, let me know if there is any news.

AK: Alright. (Inaudible)

ZF: (In English): for you too. Bye.