The most rich man in Georgia said he moves funds to avoid sanctions

Last spring, when tens of thousands of Georgians protested against what they saw as a clear sign of Russian influence on the country's policy, Georgia's parliament rushed through amendments to the nation's tax code.

Transparency International (Ti) Georgia, the fight against corruption, writes at that time that the change allows for tax transfer of assets from offshore accounts in Georgia-may be introduced to serve interests To the most rich man and former Prime Minister, Bidzin Ivanshvili, the country.

He is the founder and honorary chairman of the country's ruling party, a Georgian dream.

“It is now clear that these changes have been made for him,” says senior economy analyst in Ti Georgia, Besso Namvadze.

With approximately wealth of $ 4.9 billion ($ 3.9 billion), G -n -Ivanvili won their money in the 1990s Russia, in computing, metals and banking. It is believed that the greater part of his wealth is stored in offshore companies.

Georgia was immersed in a political crisis and the Daily Street Protss last May, when the country's deputies adopted the controversial “transparency of the bill on foreign influence”, often called the “Foreign Agents Act”.

According to this legislation, media and non -governmental organizations, which receive more than 20% of their funding from abroad, must be registered as “organizations acting in the interest of foreign authority” should be subjected to strict audits or to face criminal Fines. It is seen as a move to prevent us and another Western influence on the country.

The protests then continued when the Government, led by a Georgian dream, won controversial parliamentary elections in October. The protests were again encouraged in early December, when he said he would set negotiations for the EU in detention.

Hundreds of peaceful protests were arrested and severely beaten by police.

In response to this repression, the US government announced sanctions on G -N -Ivansvili late last year.

There is also an opportunity for sanctions from the United Kingdom. Last month, James McClier, a MP from the Liberal Democrats, introduced a proposal for an early day in the UK parliament, urging the government to impose sanctions on G -n -Ivan.

The proposal expressed “Deep concern to stopping the EU accession process and the increasing use of excessive power against peaceful protesters.”

You Georgia estimates that if the United Kingdom imposes sanctions on G -n -Ivanvili, his entire business empire will be affected as he has companies registered in two British territories abroad – the British Virgin Islands and the Kayman Islands.

“His whole big business, which is in Georgia, in the hospitality sector, in the energy sector, all the mother of the mother of these Georgian companies, the latest beneficiaries are registered in these so -called offshore territories,” says Besso Nammerchadze.

He adds that you Georgia believes that g -n -Ivansvili and other family members are continues to be transferred The ownership of companies that have previously controlled through offshore subjects to newly created companies in Georgia.

In January this year, paintings and other works of art worth nearly $ 500 million were imported to Georgia, according to data published by the Ministry of Finance.

Many believe that the work of art is from the valuable collection of G -n -Ivanvili.

“For everyone who knows it, it is quite clear that this is something that he appreciates most of all assets and all the wealth he has,” says Tina Hidashell S Citizens' idea of ​​the government organization.

“He will return the paintings and does not want to pay tax on him.”

The Head of the Parliamentary Committee on Finance and the Budget of Georgia, Paata Quiginadze, recently defended without the tax transfer of assets from offshore accounts in Georgia.

“If anyone has taken advantage of this law, I am happy with it,” he said in a social media publication. “This is to be the law: to bring offshore companies and to attract more investment in the country.”

In response to the proposed sanctions on the United Kingdom, the ruling Georgia party issued a statement defending G -n -n -Ivan, stating that the threat of sanctions was “without any basis” against the founder of the party, which brought a “democratic breakthrough in the country”.

Separately, Mr. Ivanshvili's lawyer announced last month that his client is suing the Swiss bank Julius Baer, ​​among other reasons, mistakenly interpreted the “so-called” US sanctions, which the lawyer described as “political extortion”.

The US sanctions on G -n -n -Ivanvili call on his assets to be frozen and to put restrictions on citizens and companies of the United States to do business with him personally, but they do not affect his companies or family members.

For more than a decade, Ivanshvili has been involved in legitimate battles with another Swiss bank, Credit Suisse, due to fraud and mismanagement of his money.

Some believe that the billionaire's distrust of the West and the increased use of conspiracy theories at home, such as accusing opponents of being part of the Global War Party or a “deep state”, come from his long -standing financial complaints.

Since convinced that the credit suis is part of a grand plot against him, says Tina Hdashelli. “Bidzin Ivanshvili was holding Georgia's hostage for his personal financial problems.”

Experts say that although the current official position of G -n -Ivan is the honorary chairman of the ruling party, there is a clear understanding that he remains number one in Georgian policy. Therefore, sanctions against it are seen as sanctions against the entire government.

Nika Gilari has been Prime Minister of Georgia since 2009. Until 2012. He is now running a private company called reformist, which advises governments around the world on economic reform.

G -n Gilauri says that the continuing political instability and the international isolation of Georgia adversely affects the economy. “We see a very negative effect on FDI, foreign direct investment, if you take nine months from 2024. Compared to nine months 2023, we have a decrease of 40%. So forward, this will continue to deteriorate.”

But the Georgian government draws a different picture.

Last month, Georgia Prime Minister Irakli Kobahidze signed an internal investment agreement of $ 6 billion with the Oae Property Group Emaar.

Levan Davitashvili, the Minister of Economy, described it as “the biggest transaction for foreign investment” for decades, which was expected to contribute by 1.5% of the economy.

Prime Minister Irakli Kobahidze even suggested that 10% growth is already “absolutely realistic” for the Georgian economy.

But recently published Consulting Group studies of politics and management (PMCG), a Georgian research firm, said the prospect of the next six months was “Extremely negative.”

He emphasized the impact of continuing political turmoil and said that suspending negotiations for EU membership “was considered negatively by all economists surveyed.”

Gilauri from Reformatics says their own analysis shows that Georgia's economic growth this year will be zero.

“In the future, we will have a budget problem, a currency exchange problem. We will have a problem with inflation. We will have a problem with jobs, a problem to create jobs and have a problem with the economic decline.

“The presence of new elections is the only way forward for the country, as well as for the bidina Ivanshvili personally.”