Month: September 2024

An explosion occurred at the entrance to a residential building near Bonn in western Germany, which is the third in the region since the beginning of the week.

Russian companies in Georgia

The Institute for Development of Freedom of Information (IDFI) reported in its research that the number of companies founded in Georgia by Russian citizens has reached a historical high, now totaling around 37,400.

This accounts for approximately 8.1% of all locally registered companies operating in Georgia.

According to the research, the majority — over 30,000 companies — were registered after February 2022, following Russia’s military invasion of Ukraine and the mass relocation of Russian citizens to Georgia.

However, the actual numbers could be even higher, according to the researchers.

Russian business in Georgia. Who are its key players?

Large Russian companies established their presence in Georgia long before the onset of the war in Ukraine, in contrast to small and medium-sized businesses

Key findings of the research

Russian companies are present in all sectors

● Large Russian companies often enter Georgia’s economy through offshore or intermediary companies, making it difficult to determine who is behind them.

● There are cases where the official data does not reflect that some companies are owned by individuals with dual Georgian-Russian citizenship or solely Russian citizenship. This prevents accurate tracking of the number and sectors of Russian-owned companies operating in Georgia.

● Major Russian companies are present in nearly all sectors, including energy, telecommunications, industry, and gambling.

● Of the companies registered by Russian citizens, 20,885 have active status.

● The total number of active companies in Georgia is 257,245, with 8.1% linked to Russia.

Forbes: Russians registered most businesses in Georgia in 2023

Kazakhstan ranks second on the list of countries favored by Russian entrepreneurs

Ownership of companies by individuals with dual Russian-Georgian citizenship

● According to the National Statistics Service, as of June 1, 2024, out of the approximately 37,400 companies owned by Russian citizens, 494 are registered to individuals with dual Georgian-Russian citizenship.

● Among them is LLC “Georgian Dream,” involved in sound recording and publishing. The company is 100% owned by Bera Ivanishvili, the son of Bidzina Ivanishvili, the leader of the ruling party “Georgian Dream” and an oligarch.

According to the latest public registry extract from 2018, Bera Ivanishvili is registered as holding dual citizenship of Georgia and Russia.

● Information about companies involving dual citizens is not fully represented in the database. For instance, the company “K and Georgian Spirit,” owned by Vakhtang Karichashvili and sanctioned by the Ukrainian government, is not listed under this category. Karichashvili holds dual citizenship of Georgia and Russia.

● Companies linked to Vakhtang Karichashvili are actively involved in funding the ruling “Georgian Dream” party, contributing a total of 556,000 GEL (approximately $205,000).

Additionally, the company’s subsidiaries receive millions in state subsidies, primarily for crop procurement. In total, related LLCs have been granted subsidies amounting to 30 million GEL (approximately $11 million).

In Georgia, employers often can’t find staff, and the unemployed struggle to find jobs. Why?

Two main contributing factors: the ineffective organization of state-provided social assistance and financial support from emigrants’ remittances

● In addition to dual citizens, 6% (2,041 companies) of the companies registered by Russian citizens in Georgia have Georgian citizens as co-founders. For example, 51% of LLC “Zugdidi Road Division” is owned by Russian citizen Alexander Ivanov, 25% by Georgian citizen Soso Sadjaya, and 24% by dual Georgian-Russian citizen Zurab Chanturia.

● 93% of companies are founded by individual entrepreneurs.

Large companies linked to Russia

● 89% of registered active companies are small. Only 0.5% are medium or large companies. However, the economic size of 10.6% of registered enterprises is unknown.

● Large Russian-linked companies registered in Georgia operate in various sectors. For instance, VTB Bank, part of the financial sector, sold its portfolio to other banks after the war in Ukraine began to protect clients from anticipated sanctions.

● LLC “Vivamed” is one of the large companies fully owned by Russian citizen Ali Tanriverdiyev. Established in 2010, it operates medical centers and hospitals across the country. Over time, “Vivamed” has received more than 25.5 million GEL (approximately $9.5 million) from state contracts.

Russia to open Georgian-Russian university in Tbilisi – head of Primakov Center in Georgia

Education in it will be free, and all expenses will be covered by the Russian Federation – Dmitry Lortkipanidze

Mass registration at fake addresses

● Many companies registered by or involving Russian citizens list fake addresses. Dozens of legal addresses have been identified where hundreds of LLCs and individual entrepreneurs are registered simultaneously.

In some cases, up to 1,500 companies are registered at a single legal address.

● Most of these addresses have no buildings at all. The majority of these locations are undeveloped land, with the legal owners primarily being Georgian citizens.

As part of the Uzeyir Hajibeyli XVI International Music Festival, a concert by the Baku Chamber Orchestra was held at the Gabala District Culture Center, Azernews reports citing the Gabala District Executive Authority.

The official representative of the Russian Ministry of Foreign Affairs, Maria Zakharova, stated that it is impossible to resolve the Ukrainian crisis without considering Moscow’s interests.

The Azerbaijani duo won the fourth gold medal at the World Acrobatic Gymnastics Championship in Guimarães, Portugal.

Three-quarters of French residents expressed dissatisfaction with the country’s President Emmanuel Macron.

The Presidents of Uzbekistan and Turkmenistan, Shavkat Mirziyoyev and Serdar Berdimuhamedov, held a telephone conversation to discuss further development and strengthening of relations between their two countries, Azernews reports citing the press service of the leader of Uzbekistan.

The right-wing Alternative for Germany (AfD) party has seen its popularity surge to a six-month high following victories in recent state elections in Thuringia and Saxony.

An international karate tournament is being held in Budapest, Hungary, from September 20 to 22, Azernews reports citing the press service of the Azerbaijan Karate Federation.

Ukraine is negotiating with its allies to receive Swedish Gripen and European Eurofighter fighter jets, country’s Defense Minister Rustem Umierov said during a national telethon, Report informs via Ukrainian media.