Within the period 2011-2020, up to $ 5.2 billion of foreign direct investment came to Georgia from countries with offshore territories, which is 38% of the total volume of foreign investment in this period. This is stated in the report of Transparency International Georgia.
According to the organization, there are about 3,200 companies in Georgia, which are owned by a legal entity registered in offshore zones, therefore, it is very difficult to obtain information about all of them, especially small companies.
Taking into account this factor, the research was implemented for the study in detail only for large and medium-sized companies. Thus, the large and medium-sized companies include up to 160 offshore companies. The companies of special interest are those, whose final beneficiaries are unknown. However, there have also been reviewed a few companies where the ultimate beneficiary is known.
Among them the following companies should be noted.
LTD Tbilisi Energy
Until July 2019, the legal name of Tbilisi Energy Ltd was KazTransGas-Tbilisi Ltd. Until 2018, the official owner of the company was JSC "KazTransGas", which is controlled by the Government of the Republic of Kazakhstan through the "Samruk National Welfare Fund". On October 4, 2018, a 100% share in the company was acquired by Waltbey Ltd., registered in the Marshall Islands on August 30, 2016. In 2018, the final controller of the company was Khvicha Makatsaria, a citizen of Georgia.
In 2019, a 50% share in Waltbay was acquired by Weco investment and finance S.A., registered in the British Virgin Islands. Weco investment and finance S.A. is wholly owned by HARRIMAN HOLDINGS LTD, which is also registered in the British Virgin Islands. The ultimate beneficiary of this company is Nasib Hasanov, a citizen of Azerbaijan. Weco investment and finance S.A. acquired 100% of Caucasus Online in 2019-2021. However, the Georgian National Communications Commission (GNCC) found the deal illegal and gave Caucasus Online three months to return the alienated 100% stake. The owner of both Tbilisi Energy and Caucasus Online is the same person Nasib Hasanov.
Veon Georgia Ltd
The shares of Beeline trademark holder - Veon Georgia LLC are owned by three companies registered in the British Virgin Islands: WaterTrail Industries Ltd - 51%, Investico Alliance - 29% and Miren invest Ltd - 20% - S. The members of the Supervisory Board of the company are Nikoloz Chiaureli, Muhtere Kaanterzioglu (Turkey) and Sergi Erreronoguera (Spain), and the director is Andrzej Edward Malinowski (Poland).
"Veon Georgia" was founded in 2003. According to the 2019 financial report prepared by Price Water House Coopers Ltd., the final control of the company is exercised by Veon Ltd., which is registered in the Netherlands. The final beneficiaries of "Veon" are unknown. According to the financial report, as of December 31, 2019, the company has no final controlling shareholder.
IDS Borjomi Ltd
Borjomi, Likani and Bakuriani Mineral and Natural Waters Production Company is a branch of IDS Borjomi Beverages Company Ltd., registered in Curacao, Netherlands Antilles. The company has been operating in Georgia since 1997. Until 2009, it was called Georgian Glass and Mineral Water Co. NV. The branch has a license to use the Borjomi gorge`s and other water sources in Georgia. 60% of the parent company (as of 2019) is owned by CTF Holding. It owns a company which is registered in Luxembourg. The ultimate beneficiaries of the company are unknown. The director of the Georgian branch is Mikhail Provotorov, a Russian citizen.
Chiaturmanganum Georgia Ltd
Chiaturmanganum Georgia LTD is by 95% owned by Greenfield Financial Corp., a company registered in the Seychelles, and 5% is owned by Orst Costa Jicha, a German national. The director of the company is Mamia Beridze. As of December 31, 2018, Chiaturmanganum Georgia owned 100% of Greenfield Financial Corp., the final owner of which was Shmagi Kemertelidze. It is unknown whether the owner of the offshore company has changed since 2018.
ChiaturManganum Georgia owns two subsidiaries: Kvirila-2007 Ltd. and Georgian Ferroallow Ltd. The main activity of "Chiaturmanganum Georgia" is the production and sale of various types of manganese ferroalloys.
Rustavi Steel Ltd
Tolanius Beheer B.V., which is registered in the Netherlands, is the 100% owner of Rustavi Steel Ltd., and the director is Nugzar Kachukhashvili. The ultimate owner of the company is Park Street Capital L.P., the ultimate beneficiaries of which are unknown.
"Rustavi Steel" is the owner of Rustavi Metallurgical Plant, which produces more than 1 million tons of steel per year. Rustavi factory was established in 1948. In 1999-2006, the functioning of the company was temporarily stopped. In 2006, the full package of shares of the factory was acquired by the English-Georgian company, Energy and Industry LLC. "Rustavi Steel" became the owner of the factory in 2011.
SOCAR Gas Export-Import Ltd
50% of SOCAR Gas Export-Import Ltd. is owned by the State Oil Company of the Republic of Azerbaijan, 16.7% by Well Trading FZE (United Arab Emirates) and 16.65-16.65% by companies registered in the British Virgin Islands - Ornon International SA and Semiston Group Inc. The final beneficiaries of companies which are registered in the Virgin Islands are unknown.
The main activity of "SOCAR Gas Export-Import" is wholesale trade of natural gas. The company's clients are companies supplying natural gas to the population of Georgia and large gas consumers, including thermal power plants.
Silk Road Group Holding Ltd
100% of Silk Road Group Holding LTD is owned by the registered company in Malta Comodon Holding. The final beneficiaries of the company are Giorgi Ramishvili (61.9%), Alex Topuria (28.6%) and David Franz Borger (9.5%).
Silk Road Group Holding owns 4 subsidiaries: Silk Energy Holding Ltd., Esarji Real Estate Ltd., Silk Road Energy Ltd. and Silknet Holding Ltd.
Clean House Ltd
Tamar Ghviniashvili owns a 5% stake in Clean House Ltd. and 95% is owned by GRG Trading Ltd., a company which is registered in the British Virgin Islands, the final beneficiaries of which are unknown. The director of Clean House is Irakli Ghviniashvili. The company's field of activity is the supply of hygienic, household chemicals, cosmetics, perfumes and sanitary-hygienic means throughout Georgia through a network of stores.
GM Hotels Ltd
80% of GM Hotels Ltd is owned by Otlet Bilis Holding Company, which is registered in St. Kitts and Nevis, and 20% by GMT Real Estate Ltd, registered in Georgia. Tbilisi Real Estate Holding Company, which is also registered in Saint Kitts and Nevis, owns 100% of GMT Real Estate. Finally, 100% of the hotels owned by GM Hotels Ltd are registered in St. Kitts and Nevis. The final beneficiaries of the company are unknown, and the director is Giorgi Tavadze.
GM Hotels was established in 1996 as a joint stock company Hotel Tbilisi. "GM Hotels" has been called it since 2004. The main activity of the company is the ownership of hotels and business centers. The company is also involved in the management of hotels and business center services. The company currently owns Tbilisi Marriott Hotel, Tbilisi Courtyard Marriott Hotel, Moxy Tbilisi Hotel and GMT Plaza.
90% of Sunshine Ltd is owned by GANNADO WORLDWIDE S.A., registered in the British Virgin Islands, and 10% by Solna Leisure Holdings Limited, registered in Cyprus. The director of the company is Nino Bakradze. Sunshine Ltd. was founded in 2000 and operated under the name of Casino Adjara Ltd. until February 2016. The main activity of the company is the gambling business. The final beneficiaries of companies registered in the Virgin Islands and Cyprus are unknown.
Georgian Petroleum Ltd
50% of Georgian Petroleum LTD is owned by Akert Group Ltd., registered in the Seychelles, 25% by Gateline Project Limited, registered in the British Virgin Islands, and 25% by Georgia Frangill, registered in Georgia. However, 100% is owned by Frankfield Holding LTD, a registered company in the British Virgin Islands. The final beneficiaries of these companies are unknown. Nodar Kvirikashvili is the director of Georgian Petroleum, and Irakli Iashvili, Giorgi Japaridze and Rovshan Mammadov (Azerbaijan) are members of the Supervisory Board.
Georgian Petroleum provides aviation fuel for airlines owned by airlines at the airports. It sells fuel on the territory of Georgia at three airports: Batumi, Kutaisi and Tbilisi. The main suppliers of the company are the largest oil refining companies in Azerbaijan and Turkmenistan: Maddox DMCC and Socar.
90% is owned by Georgian Steel Group Holdings Limited, a company registered in the British Virgin Islands, and 10% is owned by JSW Steel B.V., a company registered in the Netherlands. The Director of the company is Bala Krishnan Sajivi, an Indian citizen. The ultimate beneficiaries of companies registered in the Virgin Islands and the Netherlands are unknown.
The main activity of "Geostyle" is the production of construction armature. Its office and production plant is located in Rustavi.
Service Net Group Ltd
Jupiter Finance Limited, a Maltese-registered company, owns 100% of Service Net Group LTD, and Levan Urushadze is the director. The final owner of Jupiter Financial Limited is also the Arti Trust Limited, a company is registered in Malta in 2012, the final beneficiaries of which are unknown.
The main activity of "Service Net Group" is the arrangement / construction of various linear structures, arrangement of air and underground main infrastructure, as well as internal network (Internet, electricity, gas and water supply). The company operates in both eastern and western Georgia.
Bwin Holdings (Malta) Limited, a Maltese-registered company, owns 51% of Mars Ltd. Levan Akhvlediani controls the 24% of the share of the company, 10% is under control of citizen of Rusia Kniaz Dassen (Who is the son of member of the parliament Isko Dassen), by 5-5% owners are Vano Giglemiani, Koba Giglemiani and George Chkhaidze. Till July of 2019, Bwin Holdings (Malta) Limited“ was called Kaiane Services (Malta) Limited. Kaiane Services (Malta) Limited has become the owner of 51% of “Mars” in May 2019. The final beneficiaries of Bwin Holdings (Malta) Limited are unknown.
The main activity of the company is the operation of the multi-brand internet platform www.crystalbet.com, which includes online bookmakers, online casinos and other online games.
85% of GDG Ltd is owned by Mandalor LTD, a company registered in Malta, 10% by Vladimer Darchiashvili and 5% by Maia Bitskinashvili. The director of the company is Levan Landia. The final beneficiaries of Mandalor LTD are unknown. The main activity of GDG Ltd is trade in alcoholic beverage.
Retail Group Ltd
26.7% of Retail Group Ltd. is owned by Dolnay Consultants Ltd. registered in Cyprus, 30% - Keystone Investments Ltd. registered in Georgia, 20% - GBC Invest Ltd., 13.3% - Ltd. “Maidan ”, and 10% - by “Retail Investments” Ltd. The final beneficiaries of Dolnay Consultants Ltd., a company registered in Cyprus, are unknown. Lasha Chocheli, brother of Cesar Chocheli, is director of Retail Group. Cesar Chocheli became a member of the Parliament of Georgia for the second time in 2020. He was a member of parliament for the first time in 2004-2008. The main activity of "Retail Group" is to trade in retail stores under the "Magnet" brand. The company has 260 stores.
Aliud Unitas Georgia Ltd
65% of Aliud Unita Georgia Ltd is owned by Peftersona Limited, a company registered in Cyprus, 30% by Ilia Bulichev, a Russian citizen, and 5% by Levan Korkashvili. "Aliud Unita Georgia" was founded in November 2015 and its director is a Russian citizen Alexander Yudin. The final beneficiaries of the Cyprus-based company Peftersona Limited are unknown.
The main activities of "Aliud Unita Georgia" are casino and gambling business, and additional activities are restaurant services and currency exchange. It owns the entertainment center ECLIPSE, which is located in Batumi.
Gudauri Ski Resort Ltd
100% of Gudauri Ski Resort Ltd is owned by registered in Mauritius - Georgian Investment Limited LTD, and the director is Irakli Minashvili. The final beneficiaries of the company registered in Mauritius are unknown.
The main field of activity of "Gudauri Ski Resort" is hotel services. It owns two hotels in Gudauri: Hotel Gudauri Marco Polo and Hotel Alpina. This company has owned Gudauri Marcopolo since 2009 and Alpina since 2014. Gudauri Ski Resort is also implementing an investment project in a fruit farm near the Tbilisi Sea. In accordance with the agreement signed with the Tbilisi government in 2011, the company transferred ownership of the land plots in the vicinity of the Tbilisi Sea and the investment obligation was set at $ 5 million. The company has set up a football base and a farm in the investment area. It also builds residential houses and a sports and recreation center.
Alma Ltd is by 100% owned by Meridian Malta Ltd, a company registered in Malta, and the director is Giorgi Trapaidze. The final beneficiaries of Meridian Malta are Levan Pkhakadze (50% of share) and Samson Pkhakadze (50% of share).
Alma has the exclusive right to place internal advertisements at Tbilisi, Batumi and Kutaisi International Airports. Also, its advertising billboards are placed in almost all cities of Georgia. In 2019, the company acquired a 20-year exclusive right to place advertisements on the existing infrastructure on the balance sheet of Tbilisi Transport Company, on the advertisements on movable and immovable property. Since 2002, it also owns a high-tech printing house.
Batumi International Container Terminal Ltd
100% of Batumi International Container Terminal Ltd. is owned by ICTSI Georgia Corp., a company is registered in the Cayman Islands, and the director is Nikoloz Gogol. The final beneficiaries of ICTSI Georgia Corp. are unknown. Batumi International Container Terminal owns a container terminal and ferry in Batumi.
Rustavi Auto Market Ltd
100% of Rustavi Auto Market Ltd. is owned by registered in Belize company Mikado Investment Ltd., and the director is Ukrainian citizen Evgen Ustinov. The final beneficiaries of Mikado Investments are unknown.
The main activity of "Rustavi Auto Market" is to provide a parking space for vehicles, to lease the buildings located on the territory of the Rustavi Auto Market, to sell food products etc.
Poti Grain Terminal Ltd
51% of Poti Grain Terminal Ltd is owned by Tower Capital Trading, a company registered in the British Virgin Islands, and 49% by Agricom Ltd. The directors of the company are Ketevan Kublashvili and Abas Mammadov, a Russian citizen. The owner of Agricom is Konstantine Osipov, and the final beneficiaries of "Tower Capital Trading" are unknown.
The main activity of "Poti Grain Terminal" is grain storage, loading-unloading and wholesale trade. On November 30, 2020, Larsi Grain Terminal Ltd., a subsidiary of Poti Grain Terminal, was registered.