Georgia’s richest man said that we are moving towards money to avoid US sanctions

In the previous spring, when thousands of Georgians were opposing what was opposed as a clear indication of Russian influence on the country’s politics, the Georgia’s Parliament participated through amendment to the tax code of the nation.

Transparency International (TI) Georgia, anti-corruption watchdog, at that time wrote that changes-which allows tax-free transfer of property from offshore accounts to Georgia-may-may To serve interests The richest person in the country and former Prime Minister, Bidazina Ivanishwili.

He is the founder of the country’s ruling party, Georgian Dream and honorary president.

“Now it is clear, those changes were made for him,” says TI Georgia’s Senior Economics Analyst, Besen Namchavadzae.

With an estimated assets of $ 4.9BN (£ 3.9bn), Sri Ivanishwili made his money in computing, metal and banking in the 1990s. Most of his assets are believed to have been stuck in offshore companies.

Georgia was submerged in the political crisis and Daily Street Protests in May last May when the country’s MPs passed the “transparency on the foreign influence bill”, often called the “foreign agent law”.

Under this law, media and non-governmental organizations who receive more than 20% of their funding from abroad will have to register themselves as “organizations acting in the interest of a foreign power”. Will have to submit for, or have to face punitive fine. It was widely seen as a step to prevent us and other western impacts on the country.

The protests continued when the Georgian-dreamed government won the disputed parliamentary elections in October. Protests were again staged in early December when it said it would stop the European Union’s conclusion talks.

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

In response to this rift, the US government announced sanctions against Mr. Ivanishwili later last year.

There is also a possibility of restrictions from Britain. Last month, James McClerly, a Liberal Democrat MP, introduced an early day speed in the British Parliament, calling the government to ban Sri Ivanishwili.

The proposal “expressed deep concern over the suspension of Georgia’s European Union’s Eccession Process and the increasing use of excessive force against peaceful protesters.”

Tiwari Georgia estimates that if Britain banned Shri Ivnishwili, his entire business empire will be affected, as they have two British foreign areas registered companies – British Virgin Islands and Cayman Islands.

“All his major businesses, which are in Georgia, in the Hospitality sector, in the energy sector, are all the original companies of these Georgian companies, the final beneficiaries are registered in these so -called offshore areas,” says Baso Namchavadzez.

He says that Tiwari Georgia believes that Mr. Ivnishwili and other family members are Transfer continues Ownerships of companies that they previously controlled through offshore institutions for newly established firms in Georgia.

According to data published by the Finance Ministry, in January of this year, about $ 500m painting and other artwork were imported into Georgia.

Many believe that the artwork was from the valuable collection of Shri Ivanishwili.

Tina Khidshelli, a former minister of Georgia and head of non-Non, says, “Everyone who knows him is very clear that it is something that he gives the most importance from all assets, and all money, which he has It is, “Tina Khidshelli, the former minister of Georgia and head of non-government, says government organization civil views.

“He is going to bring back the pictures and does not want to pay tax on it.”

On the finance and budget, the head of the Georgia Parliamentary Committee, Pata Quizinadez recently defended the tax-free transfer of property from offshore accounts to Georgia.

“If someone benefited from this law, I am happy about it,” he said in a post on social media. “This is what the law meant: to bring companies from offshore areas and attract more investment in the country”.

In response to the proposed UK sanctions, the ruling party of Georgia issued a statement defending Sri Ivanishwilli, stating that the threat of sanctions was said that the threat of sanctions was “without” any foundation against the founder of the party who brought the “democratic success for the country” K “was

Separately, Mr. Ivanishwili’s lawyer announced last month that his customer Swiss bank is misinterpreted “so-called” US sanctions on Swiss bank Julius Bayer, which the lawyer described as “political blackmail”.

American sanctions on Mr. Ivanishwili are frozen for their assets, and ban American citizens and companies, who personally trade with them, but they do not affect their companies or family members.

For more than a decade, Mr. Ivanishwili has been involved in a legal battle with another Swiss bank, credit suicide, credit suis on his money fraud and mismanagement.

Some believe that the billionaire’s use of mistrust and home principles in the west of the west, such as being a part of “Global War Party”, or being part of “Deep State”, in their long financial complaints Organized.

Ever since he was convinced that Credit Suisk was part of a grand conspiracy against him, Tina Khadshelli says. “Bidzina Ivanishwili took Georgia hostage for his personal financial issues.”

Experts say that even though the current official post of Shri Ivanishwili is the honorary president of the ruling party, there is a clear understanding that he remains the number one person in Georgian politics. Hence sanctions against them are seen as sanctions against the entire government.

Nika Gilauri was the Prime Minister of Georgia from 2009 to 2012. He now leads a private company, which is called reformatics, which advises governments around the world on economic reforms.

Mr. Giluri says that Georgia’s continuous political instability and international separation is negatively affecting the economy. “We are seeing a very negative impact on FDI, foreign direct investment, if you take nine months of 2024 compared to nine months of 2023, we have a decline of 40%. So to go ahead to deteriorate it. Continues. “

But the Georgian government paints a separate picture.

Last month, Georgia Prime Minister Iraqali Kobkhidze signed the $ 6BN Inward Investment Agreement with the UAE Property Group EMAR.

The economy minister Levan Davitshwili described it as the “biggest foreign investment deal” in decades, expecting a 1.5% increase in the economy.

Prime Minister Iraqali Kobkhidz has also suggested that a 10% growth for the Georgian economy was now “absolutely realistic”.

But recently, research published by the Georgian Research Firm, Policy and Management Consulting Group (PMCG) said that there was a possibility for the next six months. “Very negative”.

This highlighted the impact of the constant political upheaval, and said that the suspension of the membership negotiations of the European Union was “seen negatively by all surveyed economists”.

Mr. Gillori of Reformatics says that his own analysis shows that the economic growth of Georgia will be zero this year.

“Moving forward, we will have a budgetary problem, a currency exchange problem. We will have a inflation problem. We will have a problem of jobs, an employment generation problem, and we will have a problem of economic decline.

“New choice is the only way forward for the country as well as Bidazina Ivanishwili.”