Georgia's de facto ruler Ivanishvili files new lawsuit against swiss bank, alleging ‘political blackmail
Ivanishvili sues Swiss bank Julius Baer
Bidzina Ivanishvili, honorary chairman of the ruling Georgian Dream party and the de facto ruler of Georgia, has filed a lawsuit against the Swiss bank Julius Baer. The information was disclosed by his lawyer, Lasha Kalandadze, who stated that the bank extended U.S. sanctions to Ivanishvili’s family members and his companies.
According to Kalandadze, Julius Baer is the bank where Ivanishvili transferred the majority of his assets following a dispute with Credit Suisse.
Ivanishvili’s dispute with Credit Suisse and Julius Baer
According to his lawyer, Lasha Kalandadze, Bidzina Ivanishvili has been engaged in nearly a decade-long legal battle against Credit Suisse and its affiliates across various jurisdictions. Kalandadze noted that the dispute in Singapore against Credit Suisse has been resolved successfully, while a case in Bermuda, which has already been ruled in Ivanishvili’s favor by lower courts, is set to be heard by the highest court in the summer of 2025.
“We would like to remind interested parties that a significant portion of the assets that survived Credit Suisse’s unlawful actions were transferred to another Swiss bank (Julius Baer), including accounts intended to hold hedge fund assets.
We had a constructive relationship with Julius Baer for many years; however, over the past year, the relationship has drastically changed. For nearly six months, the bank restricted access to information about accounts managing hedge fund assets. The correspondence documenting this is extensive.
Bidzina Ivanishvili informed the bank that he had the right to access information about hedge fund assets and demanded an explanation from the bank regarding the legal basis for restricting his guaranteed rights. However, the bank delayed its response. Only after Julius Baer realized that Ivanishvili intended to use legal measures to defend his rights did it begin fulfilling its obligations to provide the requested information,” the lawyer stated.
According to Kalandadze, the relationship between Julius Baer and Ivanishvili deteriorated due to hedge funds (CarVal Credit Value Fund III, Promona Capital VIII, and TPG Opportunities Partners III) failing to meet deadlines for returning funds.
The lawyer emphasizes that the bank, under its agreement, is obligated to take measures to ensure that hedge funds fulfill their obligations on time. However, Julius Baer only reports that it sends letters to the hedge funds without providing any clarification about the content of these letters or actions taken to enforce the funds’ obligations.
“Since Bidzina Ivanishvili cannot obtain the legally guaranteed information or explanations, he believes that Julius Baer and the aforementioned hedge funds are acting in concert to harm his interests.
The relationship has also worsened in other areas. Initially, the bank refused to allow Bidzina Ivanishvili and several members of his family to complete a money transfer transaction. After Julius Baer was notified that they intended to pursue legal remedies to protect their rights, the bank eventually executed the transfer. However, it took almost a month to fulfill the obligation, even though such transactions are typically completed within a single day,” Kalandadze stated.
The lawyer notes that in mid-December 2024, Julius Baer effectively threatened to close Bidzina Ivanishvili’s personal bank account, citing his status as a politically active individual. According to the lawyer, the bank did not explain the reasoning behind such a decision. Ivanishvili and his representatives believe the bank “misinterpreted” U.S. sanctions against the politician.
“These issues create grounds for Bidzina Ivanishvili to suspect that Julius Baer is involved in political blackmail,” Kalandadze wrote. “Ivanishvili, with the involvement of international lawyers, intends to initiate legal proceedings against Julius Baer to demand that the bank fulfill its obligations and compensate for damages.”
What sanctions have been imposed on Ivanishvili?
On December 27, the United States imposed financial sanctions on Bidzina Ivanishvili. According to the U.S. Office of Foreign Assets Control (OFAC), these sanctions are part of a broader package targeting Russia and include freezing all of Ivanishvili’s assets and transactions within the U.S.
The sanctions will also complicate the transfer of compensation owed to Ivanishvili from his legal victory in Singapore against Credit Suisse. The chairman of Georgian Dream will only be able to receive the awarded sum after approval from OFAC.
On January 13, 2025, 15 members of the UK House of Commons called on the executive branch to impose sanctions against Ivanishvili.
According to Transparency International Georgia (TI), if the UK enacts sanctions against Ivanishvili and his family members, the financial measures will affect nearly his entire business empire. This is because many of their companies are registered in British-controlled offshore jurisdictions, including the British Virgin Islands and the Cayman Islands.
