Day: September 21, 2023

IMF on sanctions and the National Bank of Georgia

The International Monetary Fund (IMF) is concerned about the recent decision of the National Bank of Georgia that a local court conviction is first required to block the accounts of sanctioned Georgian citizens. The decision came after the U.S. imposed sanctions on ex-general prosecutor Otar Partskhaladze for ties to the Russian FSB. According to the BMG publication, the head of the foundation’s mission, James John, gave journalists a written statement to this effect.

“As we have mentioned in the past, the quick and adequate actions of the National Bank of Georgia have protected the financial sector from the impact of Russia’s ongoing war in Ukraine. The National Bank of Georgia has required commercial banks to comply with the relevant sanctions.

However, we are concerned about the National Bank’s recent announcement that it is changing its approach to sanctions. We intend to discuss this issue in detail with the National Bank and commercial banks and, after careful consideration, will make an accurate assessment of its impact, including on the IMF-supported program for Georgia, the reinstatement of which is under negotiation,” the IMF said in a statement.

• “Those who cooperate with Georgia’s former attorney general risk being sanctioned as well” – US State Department
• “Legal absurdity”. Lawyer on National Bank of Georgia’s decision to unblock ex-general prosecutor’s accounts

The National Bank of Georgia has amended the rules of the sanctions regime amid a high-profile scandal involving former Georgian Prosecutor General Otar Partskhaladze, who was subjected to international sanctions for his ties with the Russian FSB. At first, the National Bank blocked all his accounts, but then changed the decision.

The National Bank explained that the sanctions regime can be applied to Georgian citizens only if a court in Georgia has issued a guilty verdict. On the same principle, the sanctions regime will be applied to a legal entity, the share of which is owned by a citizen of Georgia, who fell under the sanctions.

This change was preceded by a statement by Georgian Dream Chairman Irakli Kobakhidze, who called the National Bank’s decision to restrict Partskhaladze’s access to accounts unconstitutional and violating the principle of presumption of innocence.

On September 14, the United States imposed sanctions against Otar Partskhaladze. This is related to his business activities and cooperation with the Russian FSB. Before the official announcement of the decision, the media reported that a “Georgian-Russian oligarch” was among those subject to sanctions.

China hopes the truce in Nagorno-Karabakh will hold and the situation will normalize, Geng Shuang, China’s Permanent Representative to the UN said at the UN Security Council emergency meeting on Nagorno Karabakh.

“We note that with the mediation of Russia, the parties managed to reach a ceasefire yesterday. We are carefully monitoring this situation, we hope that this ceasefire will hold and the situation will gradually return to normal,” he said.

“We express our condolences that Russian peacekeepers were killed during this attack. They have constantly performed and continue to perform their functions in difficult circumstances, so their safety should have been guaranteed,” he said.

“Armenia and Azerbaijan are neighbors that cannot move away. Resolving disputes through dialogue and consultation will not only serve the fundamental interests of both countries, but will also safeguard regional peace and security,” Geng Shuang stated.