The number of Russian companies in Georgia has reached a historic high, a study by the Institute for the Development of Freedom of Information (IDFI) found.
Based on the information of the National Statistics Service, IDFI writes that as of June 1, 2024, about 37,400 companies in Georgia are owned by Russian citizens (including 494 Georgian-Russian dual citizens), of which more than 30,000 companies were registered after 2022.
20,885 of the registered companies have an active status. The total number of companies with active status in Georgia is 257,245, 8.1% of which are connected to Russia.
“The increase in the number of companies founded by Russian citizens began after the Russia-Ukraine war began, and following the arrival of Russian migrants in Georgia, the IDFI writes. “Large Russian companies entered the Georgian economy in many cases through offshore or intermediary companies, which makes it difficult to determine who exactly is behind this or that company.
“In addition, there are cases when companies owned by persons with dual Georgian-Russian citizenship, or only Russian citizenship, are not registered in the official data of the Statistics Service, which also causes inaccuracy regarding the number of Russian companies operating in Georgia and details regarding their field of activity.
“It is impossible to trace both the legal and actual addresses of thousands of Russian LLCs and industrial enterprises, because, during registration, they use legal addresses on which the building or structure is not located, or the area states is of only a few square meters.
“Large Russian companies are found in almost all sectors of the Georgian economy, including energy, telecommunications, industry, gaming, etc.
“Based on the information provided by the National Statistics Service, as of June 1, 2024, about 37,400 companies are owned by Russian citizens in Georgia (including 494 Georgian-Russian dual citizens), of which more than 30,000 companies were registered after 2022. 20,885 of the registered companies have an active status. The total number of companies with active status in Georgia is 257,245, 8.1% of which are connected to Russia.
The database of companies registered by Russian citizens also partially covers companies founded by persons with dual citizenship of Georgia/Russia. In particular, a total of 494 of these companies are founded by persons with dual Georgian-Russian citizenship, 100 of those with active status,” the information reads.
However, IDFI notes that information on companies established with the participation of dual citizens is not fully represented in the database. For example, among the large companies is the company of Vakhtang Karichashvili with dual citizenship of Georgia and Russia, sanctioned by the government of Ukraine, K and Georgian Spirit LLC. However, according to the data of the business register, he owns a number of other companies that are not reflected in the database. For example, he is the founder of Bolero & Company, one of the largest groups producing alcoholic beverages in Georgia, as well as the owner of 100% of GVMT Group LLC and 50% of Alliance and Company LLC.
IDFI notes that Russian citizens most often choose Tbilisi to register companies in – almost half of legal companies and individual entrepreneurs with an active status are registered in Georgia’s capital.
