Opinion: "US sanctions on Ivanishvili are partial, with tougher measures looming"
What sanctions could Ivanishvili face next?
“The US Treasury has imposed only partial sanctions at this stage against Bidzina Ivanishvili, honorary chairman of the ruling Georgian Dream party. He is being given time to adjust his approach.
However, very strict sanctions could follow if no changes occur. These may include targeting his family members, extended relatives, business partners, and their families,” says economist Beso Namchavadze.
On December 27, Ivanishvili’s name appeared on the Office of Foreign Assets Control (OFAC) list as part of a package aimed at Russia. This designation means all property he owns within the US or controlled by US persons will be frozen.
“Under Bidzina Ivanishvili’s leadership, Georgian Dream advanced Kremlin interests, derailing the country’s Euro-Atlantic trajectory, which contradicts Georgia’s constitution and the will of its people,” stated the US Treasury’s accompanying announcement.
- US sanctions oligarch Bidzina Ivanishvili, Georgia’s alleged ‘shadow ruler’
- For first time in Georgia’s history, government is under Western sanctions: JAMnews compiles sanctions from 2023 to present
- Can Georgian economy withstand political crisis? Economist’s opinion
Commentary
Economist and Transparency International-Georgia commentator Beso Namchavadze:
“The US Treasury has included Bidzina Ivanishvili in the Specially Designated Nationals (SDN) list of the Office of Foreign Assets Control (OFAC).
The sanctions are individual, meaning they apply only to Ivanishvili himself and not to his family members.
The sanctions freeze his assets in the United States and prohibit any transactions with him.
However, OFAC simultaneously issued a license specifying that the sanctions do not extend to companies owned by Bidzina Ivanishvili.
There are only two exceptions: sanctions apply to his transactions potentially tied to Russia and any financial outcomes related to his dispute with Credit Suisse.
The decision is accompanied by a note on the risk of secondary sanctions, which represents a very strict measure.
This means any individual or entity engaging in transactions with Ivanishvili will also be “blocked” by the US. Such parties would lose access to American financial resources, dollars, US companies, and services.
Why wasn’t Ivanishvili added to the Magnitsky List, despite clear grounds for it?
The Magnitsky List is extremely punitive, aiming not to alter the sanctioned individual’s behavior but to impose perpetual punishment.
In contrast, OFAC sanctions allow Ivanishvili a way out – if he changes his behavior.
OFAC retains significant measures it could still take. These include expanding sanctions to his companies, family members, and the relatives of his business partners.
Claims that Ivanishvili has been “finished” or “destroyed” are incorrect.
The US is taking a gradual approach, which is prudent. It retains leverage to escalate sanctions if Ivanishvili and his circle continue their repressive and anti-Western policies.
There is considerable potential for escalation ahead.
For instance, it could reach the point where major brands pull out of Galleria, Tbilisi’s main shopping mall, due to fears of sanctions.”
News in Georgia
