Gotsiridze: National Bank's Statement Was Completely Meaningless

At a briefing held in Parliament, MP Roman Gotsiridze warned that bypassing or failing to comply with U.S. Treasury Department sanctions, for any reason, would lead to financial collapse in the country.

“The United States has imposed sanctions on high-ranking Georgian government officials, two representatives of the Ministry of Internal Affairs, and the founders of the Russian-affiliated agency Alt-Info. This is an unprecedented sanction. It even differs from the severe sanction applied to the former chief prosecutor, Otar Fartskhaladze, as this is a U.S. Treasury (Ministry of Finance) sanction. Additionally, these four individuals have been included in the Global Magnitsky list. There is no heavier sanction than this. It means that no matter what happens, these individuals will remain on the Magnitsky List, which targets gross human rights violations.

In such a situation, the Georgian government should have acted promptly, issuing a clear directive to the financial system that bypassing or not complying with the sanctions for any reason would lead to the country's financial collapse. Georgian businesses will be unable to transfer even a cent abroad if pressure on the banks continues.

What we heard from the National Bank was an absolutely meaningless statement. On the one hand, it suggests that sanctions will be enforced in Georgia against Georgian citizens only if a court issues a guilty verdict, while on the other hand, it claims that Georgian commercial banks will adhere to international sanctions. What message does this send to the Georgian banking system? Should they comply with international sanction norms, immediately freezing the accounts of these individuals and their related businesses, or should they wait for a court decision, even as those responsible for attacks in front of Parliament months ago remain untried? The National Bank needs to make a clear, decisive statement,” Gotsiridze said.

The former president of the National Bank emphasized that Georgian banks are not only serving sanctioned individuals but also their related businesses.

“Bank of Georgia and TBC Bank, where these individuals have salary accounts and use Visa and Mastercard cards, should issue statements clarifying whether they are complying with international sanctions. These individuals own businesses. One of them, Zviad Kharazishvili, owns 50% of a security company called Sarangi. Where does Sarangi hold its accounts? Does it transfer funds abroad to purchase equipment and security systems? Why is Alt-Info still broadcasting? Yesterday, I appealed to the National Communications Commission, questioning why it has not yet enforced sanctions, considering that Konstantine Morgoshia’s aunt owns a 50% stake in Alt-Info. Many unresolved issues have accumulated, and failing to address them immediately, in accordance with international rules, could put Georgian businesses at serious risk,” Gotsiridze noted.

On September 16, the United States imposed financial sanctions on two Georgian government representatives - Zviad Kharazishvili, also known as Kharaba, and his deputy, Mileri Lagazauri, Director of the Special Tasks Department of the Ministry of Internal Affairs - for their violent suppression of peaceful protests against the Russian law. The leaders of Alt-Info, Konstantine Morgoshia and Zurab Makharadze, were also subject to financial sanctions for organizing violent attacks on peaceful demonstrators.