Bidzina Ivanishvili, the founder and honorary chairman of Georgia's ruling party, Georgian Dream, finds himself at the center of a complex web of legal and political challenges. With an estimated fortune of $4.9 billion, amassed during the 1990s in Russia through ventures in computing, metals, and banking, Ivanishvili's financial dealings have drawn significant attention. Recently, he has been embroiled in legal disputes with Swiss banks over allegations of fraud and mismanagement. His narrative around these issues often involves conspiracy theories, suggesting adversaries are part of a "global war party" or "deep state."
The U.S. government announced sanctions against Ivanishvili at the end of 2023. These sanctions, aimed at freezing his assets and restricting American entities from conducting business with him personally, do not extend to his family members or companies. Despite these limitations, Transparency International Georgia warns that if the UK follows suit, his entire business empire could be impacted due to holding companies registered in British Overseas Territories.
Ivanishvili's influence in Georgian politics remains significant despite his official position as an honorary chairman. Experts assert that he is still the foremost figure in the country's political landscape. His wealth and influence have been linked to several legislative changes in Georgia, including tax-free asset transfers from offshore accounts to Georgia, introduced in January 2024. Critics argue this move was self-serving.
He has also been accused of shaping media and non-governmental organization regulations. Laws have been introduced requiring these entities to register as "organizations acting in the interest of a foreign power" if they receive more than 20% of their funding from abroad. Additional legislation mandates rigorous audits for these organizations, with punitive fines for non-compliance.
"We are seeing a very negative effect on FDI, foreign direct investment, if you take nine months of 2024 compared to nine months of 2023, we have a 40% drop." – Nika Gilauri
The economic ramifications of Ivanishvili's actions are evident. Nika Gilauri highlights a significant 40% drop in foreign direct investment in the first nine months of 2024 compared to the same period in 2023. This downward trend raises concerns about the future economic stability of Georgia.
"So going forward this is going to continue to get worse." – Nika Gilauri
Gilauri predicts worsening economic conditions, foreseeing budgetary problems, currency exchange issues, inflation, and job creation challenges.
"For everybody who knows him it's pretty clear that this is something that he values the most out of all the assets, and all the wealth, that he has," – Tina Khidasheli
Tina Khidasheli underscores Ivanishvili's valuation of his art collection among his assets. Reports suggest that he plans to repatriate paintings without incurring taxes.
"He is going to bring paintings back and he does not want to pay tax on it." – Tina Khidasheli
This strategic maneuver aligns with Ivanishvili's broader financial tactics and his efforts to mitigate the impacts of international sanctions.
The introduction of tax-free transfers from offshore accounts aligns with Ivanishvili's interests. Critics argue this legislation primarily benefits his financial strategies, allowing asset relocation without tax burdens.
The accusations against Ivanishvili extend beyond financial maneuvers. His influence over Georgian politics is palpable, with legislative changes reflecting his agenda. The media and NGO laws exemplify his attempts to control narratives and maintain dominance.
"Going forward, we will have a budgetary problem, a currency exchange problem. We will have an inflation problem. We will have a jobs problem, a job creation problem, and we will have economic decline problem." – Nika Gilauri
The economic outlook for Georgia appears bleak, with experts forecasting compounded challenges. Gilauri emphasizes the urgency of addressing these issues to prevent further decline.
"Having new elections is the only way forward for the country as well as for Bidzina Ivanishvili personally." – Nika Gilauri
In light of these challenges, Gilauri advocates for new elections as a necessary step for both Georgia and Ivanishvili.