Thu, 20 Feb 2025

Thu, 20 Feb 2025 Georgia's richest man said to be moving funds to avoid US sanctions

The pro-Russian businessman is reported to be moving overseas assets back to the Caucasus country.
Georgia's ruling party and its founder, billionaire Bidzina Ivanishvili, are facing international pressure over alleged corruption and human rights abuses. Transparency International Georgia claims that tax code amendments favoring Ivanishvili may have been introduced to serve his interests. The changes allow for tax-free transfer of assets from offshore accounts to Georgia. Ivanishvili's wealth is estimated at $4.9 billion, with most believed to be held in offshore companies. Protests against the government and its handling of EU accession talks led to hundreds of peaceful protesters being arrested and beaten by police. In response, the US imposed sanctions on Ivanishvili, freezing his assets and restricting US citizens from doing business with him. The UK is considering imposing similar sanctions, which could affect Ivanishvili's entire business empire, including companies in Georgia's hospitality and energy sectors. Experts say that even though Ivanishvili holds an honorary position as head of the ruling party, he remains the de facto leader of Georgian politics. Georgia's economy is suffering due to ongoing political instability and international isolation. Foreign direct investment has dropped by 40% compared to last year, and economists predict a zero growth rate for this year. The government disputes these claims, pointing to a recent $6 billion inward investment agreement with UAE property group Emaar as evidence of its economic success. However, research suggests that the suspension of EU membership talks has had a negative impact on the economy. Many experts believe that new elections are necessary to resolve Georgia's ongoing political crisis and revive its economy.
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