The BBC published an article titled “Georgia’s richest man said to be moving funds to avoid sanctions,” written by South Caucasus correspondent Rayhan Demytrie.
The article suggests that Bidzina Ivanishvili is transferring his assets back to Georgia to avoid potential sanctions from the UK and US, citing concerns about the impact on his business empire.
This move comes amid a backdrop of ongoing protests in Georgia against the government’s handling of EU accession talks and allegations of Russian influence. Transparency International Georgia has previously raised questions about the tax code amendments that allowed for tax-free transfer of assets.
“Now it is clear, those changes were made for him,” says senior economics analyst at TI Georgia, Beso Namchavadze.
The article reads:
“With an estimated wealth of $4.9bn (£3.9bn), Mr. Ivanishvili made his money in 1990s Russia, in computing, metals and banking. Most of his wealth is believed to be tucked away in offshore companies.
“Georgia was plunged into political crisis and daily street protests last May when the country’s MPs passed the contentious “transparency on foreign influence bill”, often dubbed the “foreign agents law”.
“Under this legislation, media and non-governmental organizations that receive more than 20% of their funding from abroad have to register as “organizations acting in the interest of a foreign power”, submit themselves to stringent audits, or face punitive fines. It was widely seen as a move to prevent US and other Western influence on the country.
Hundreds of peaceful protesters were arrested and severely beaten by the police, Demytrie writes, leading to sanctions against Mr Ivanishvili at the end of last year.
“There is also the possibility of sanctions from the UK. Last month James MacClearly, a Liberal Democrat MP, introduced an Early Day Motion in the UK parliament calling on the government to impose sanctions on Mr Ivanishvili…for use of excessive force against peaceful protesters”.
Demytrie suggests, referencing TI Georgia, that if the UK imposed sanctions on Mr Ivanishvili, his entire business empire would be affected, because he has holding companies registered in two British Overseas Territories – British Virgin Islands and Cayman Islands.
“All his big business, which he has in Georgia, in the hospitality sector, in the energy sector, all the parent companies of these Georgian companies, the last beneficiaries are registered in these so-called offshore territories,” Namchavadze tells Demytrie for the BBC, adding that TI Georgia believes that Mr Ivanishvili and other family members are continuing to transfer ownership of companies they previously controlled through offshore entities to newly established firms in Georgia.
“In response to the proposed UK sanctions, Georgia’s ruling party issued a statement defending Mr Ivanishvili, saying that a threat of sanctions was “without any foundation” against the party founder who brought “democratic breakthrough to the country.”
Read the full article here
