Bidzina Ivanishvili, the billionaire founder and honorary chair of Georgia’s ruling party, has responded to US sanctions by moving ownership of multiple offshore companies to Georgia. The move, which shields his assets from potential global economic exposure, comes as international scrutiny over his influence in Georgian politics intensifies.

In December, the United States sanctioned Ivanishvili, accusing him of undermining Georgia’s democracy for the benefit of Russia. The US government cited concerns over the Georgian Dream party’s increasing authoritarian tendencies and its alignment with Moscow. Given Ivanishvili’s extensive wealth, much of which was amassed in Russia during the 1990s, these concerns are not unfounded.

Critics argue that the ruling Georgian Dream party, which Ivanishvili founded, has become increasingly repressive, particularly in its handling of recent mass protests. The government’s harsh crackdown on opposition movements and civil society organizations has sparked fears of democratic backsliding. Georgian Prime Minister Irakli Kobakhidze has pushed back against these accusations, claiming that external forces are attempting to orchestrate a revolution in the country akin to the 2014 uprising in Ukraine.

Just days after being sanctioned, Ivanishvili initiated a major restructuring of his assets. On December 31, he began shifting ownership of offshore companies to Georgia, a move analyzed by Transparency International Georgia. One of these firms owns a portion of Ivanishvili’s luxurious glass and steel mansion that overlooks Tbilisi, the country’s capital.

Further investigations by the Organized Crime and Corruption Reporting Project (OCCRP) revealed additional high-end properties owned by these firms. These include a newly discovered luxury residence in a spa town and the former headquarters of the Georgian Dream political party in Tbilisi.

According to political risk consultant Maximilian Hess, this move could spell economic trouble for Georgia. If international sanctions against Ivanishvili deepen, it could become difficult for businesses to engage with Georgia due to concerns over financial dealings with the sanctioned oligarch. “His assets will be a very large share of the overall Georgian economy,” Hess explained. “What Ivanishvili is effectively doing is transferring the risk from himself and his own wealth to the country of Georgia and the Georgian people.”

On January 17, a significant milestone in Ivanishvili’s asset transfers took place. Ownership of seven firms was moved from the Panamanian entity Limestone Finance International SA to JSC Terra, a Georgian company under his control. These firms hold vast real estate and business interests across the country:

Riverside View: Owns a large development in the spa town of Abastumani, where a sanatorium was converted into a luxury residence. This property includes a basement spa, a swimming pool, a Turkish bath, and a rooftop orangery. A basketball court is also visible in satellite imagery.

Abastumani 2019: Holds construction rights for 12,000 square meters of land in a national park. Initially, this land was designated for eco-tourism infrastructure, but the project’s scope remains uncertain.

Geofert: A fertilizer company with a manufacturing plant in Kaspi.

Akhali Kapitali: Owns the former Georgian Dream party headquarters in Tbilisi.

Invest Capital: Holds land adjacent to Ivanishvili’s primary residence, which houses his extensive modern art collection.

Cartu Consulting and Black Sea Arena: These firms do not own real estate but are still part of the transferred assets.

The asset transfers did not stop with real estate. The week after these firms were moved to Georgia, additional holdings linked to the Ivanishvili family were transferred domestically. These include over 17 million laris ($6 million) worth of real estate and another 5.5 million laris ($1.9 million) in art, jewelry, and sculptures.

One particularly significant transfer involved Finservice-XXI, a Georgian company previously controlled through a Belize-registered entity by Ivanishvili’s son, Uta Ivanishvili. On January 22, Uta took direct ownership of Finservice’s shares before transferring them to a newly established Georgian entity, ATU Holding. Interestingly, Uta Ivanishvili has publicly denied setting up ATU Holding, despite official documents showing that he granted power of attorney for transactions to be executed on his behalf.

Despite a US Treasury general license that allows continued business transactions with Ivanishvili’s companies, experts suggest the oligarch’s restructuring indicates concerns about harsher restrictions.

Hess explained that the license’s broad nature could be revoked, or other jurisdictions, such as the UK and the EU, might impose their own sanctions. “They might yank the license,” said Nicki Kenyon, a financial crime expert and former US Treasury intelligence officer. She expressed shock that the Biden administration even issued such an exemption, calling it a rare and controversial decision.

Parliamentarians in both the European Union and the UK have already pushed for additional sanctions against Ivanishvili, making it a real possibility that more restrictions could follow.

In addition to land and businesses, Ivanishvili has also taken steps to repatriate parts of his vast art collection to Georgia. A 2022 invoice from Christie’s auction house obtained by OCCRP lists a shipment valued at $90.5 million. Among the works in the shipment were pieces by French painter Maurice de Vladminck and Russian artist Alexandra Ekster.

Previously, the British Virgin Islands-based Lynden Management oversaw Ivanishvili’s massive art portfolio, which includes works by Picasso, Van Gogh, and Monet. The EU Parliament had called for sanctions against Ivanishvili as early as June 2022, citing concerns over political repression and ties to the Kremlin. His efforts to move his assets to Georgia may therefore be a strategic attempt to prevent the seizure of his wealth abroad.

Despite these transfers, not all of Ivanishvili’s assets have been redomiciled to Georgia. Some of his most significant holdings remain under the Georgian Co-Investment Fund (GCF Fund), a private investment entity managing over $2 billion in the country’s economy. The fund oversees critical infrastructure, including hydropower plants, luxury hotels, and a cement factory. Financial documents reveal that the GCF Fund is ultimately controlled by Ivanishvili’s wife, Ekaterine Khvedelidze, through a complex structure spanning Luxembourg and the Cayman Islands.

While the fund is currently able to operate freely, its links to Ivanishvili raise the possibility of future sanctions. “Even though financial institutions can still transact with these firms, uncertainty and reputational risk might make them hesitant,” said Kenyon.

Transparency International’s report also notes the establishment of a new entity, JSK GCF Georgia, directly under Khvedelidze’s ownership, potentially signaling further restructuring efforts to avoid international penalties.

As the threat of additional sanctions looms, Ivanishvili has taken preemptive steps to protect his wealth by relocating assets to Georgia. Whether this strategy will shield him from future economic repercussions remains to be seen. What is clear, however, is that Georgia’s political and economic landscape remains deeply intertwined with the fate of its most powerful oligarch. If international pressure escalates, the entire Georgian economy may bear the consequences of Ivanishvili’s financial maneuvers.

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