On January 29, Transparency International Georgia reported that the founder and the Honorary Chairman of the GD party, Bidzina Ivanishvili, and his family members have begun transferring their business assets from offshore entities to Georgia-registered companies following the designation of Ivanishvili by the U.S. under the Russian Harmful Foreign Activities Sanctions on December 27, 2024.

Previously TV Pirveli reported that Ivanishvili, his wife Ekaterine Khvedelidze, and son Uta Ivanishvili have registered four new joint-stock companies between December 31, 2024, and January 20, 2025: JSC Atu Holding, JSC Terra, JSC Lusol, and JSC GCF Georgia.

TI-Georgia report details that as of January 29, companies from four offshore entities have been fully transferred to Georgia: Visalia Enterprises Limited, Gilmar Holding Limited, Fresno Management Limited (all registered in Belize), and Limestone Finance International SA (registered in Panama).

In May, 2024 ruling Georgian Dream party passed amendments to Georgia’s tax code under a fast-track procedure, which offer a wide range of tax benefits to companies and individuals who decide to move their assets from tax havens to Georgia. The law sparked widespread backlash in Georgia with critics fearing it could allow Georgian Dream’s billionaire founder, Bidzina Ivanishvili, and his cronies to evade potential Western sanctions and turn Georgia into a hub for black money.

“The Ivanishvili family is likely taking advantage of tax benefits introduced in the spring of 2024 under the so-called ‘offshore law’ while transferring ownership of their companies,” TI Georgia stated.

The watchdog revealed that the transferred companies hold a combined registered capital of 163,187,800 GEL. Notable transfers include LLC Finservice XXI, which owns part of Ivanishvili’s glass palace in Tbilisi, being moved to JSC ATU Holding through Uta Ivanishvili.

On January 17, JSC Terra received ownership of seven companies from Limestone Finance International SA, including Black Sea Arena, Cartu Consulting, Seaside View, New Capital, Invest Capital, Abastumani 2019, and Geofert.

Additionally, on January 20, Ekaterine Khvedelidze reorganized four Georgian LLCs (JSC Georgian Agro House, JSC GeoAgro, JSC Galleria Tbilisi, and JSC Seashore), previously owned through GCF Luxembourg SARL, into joint-stock companies with substantial capital investments.

The watchdog further reported that two additional companies, JSC Luslo, and JSC GCF Georgia, were registered under Khvedelidze’s ownership, while Uta Ivanishvili acquired LLC Georgian Holding free of charge, a company with a capital of 32,087,800 GEL that previously belonged to the Belize-registered Gilmar Holding Limited.

“Transparency International Georgia continues to monitor Bidzina Ivanishvili’s companies and how he seeks to protect his assets from sanctions,” the report concluded.

The assets’ transfers comes amid significant international developments concerning Ivanishvili. On December 27, the U.S. Department of Treasury imposed sanctions on him, with U.S. State Department Spokesperson Matthew Miller stating that Ivanishvili’s actions “have enabled human rights abuses and undermined the democratic and European future of the Georgian people for the benefit of the Russian Federation.” The sanctions regime applies to transactions under the Singapore Court of Appeal Case, Credit Suisse Trust Ltd v. Bidzina Ivanishvili, and others of 2024 and the appeal of 2023.

On January 16, UK Parliament member James MacCleary introduced an Early Day Motion (EDM) calling for sanctions on Ivanishvili in response to his alleged responsibility for Georgia’s democratic backsliding. The motion has garnered 13 signatures thus far. The Georgian Dream political council condemned the motion, claiming there was a “deep state” [their widely used conspiracy theory] behind it.

According to a January 20 statement by Ivanishvili’s lawyer, Lasha Kalandadze, the sanctions have already affected the Ivanishvili family’s finances. “Swiss bank Julius Baer “incorrectly (rather, to its advantage) interpreted U.S. sanctions” and informed Ivanishvili’s family members and companies that their bank accounts were subject to these sanctions,” Kalandadze wrote. He further announced plans to file a lawsuit against the bank.