The Institute for Development of Freedom of Information (IDFI) has investigated Russian capital accumulation over several sectors. According to the report, there has been no significant Russian ownership discerned in terms of the banking, tourism,construction, or transportation sectors. The banking sector includes Georgia’s VTB bank, the totalcapital of which reached 4% of the Georgian market in 2020. The Russian VTB Bank owned 97.38%
of VTB Georgia. Although, since the war in Ukraine, VTB has transferred its portfolios to other Georgian banks.
In the tourism and hotel industry, as well as the construction and transportation sectors, the IDFI identifies no significant Russiann ownership. According to the information available, out of 20 medium-sized construction companies on the Georgian market, only three have Russian linkages, while in the transportation sector 10% of medium-sized companies (36 companies) belong to Russian citizens (Institute for Development of Freedom of Information (IDFI).
Overall, considering the eight sectors studied by the IDFI, as of June 2023, concerning signs of Russian ownership are particularly visible in Georgia’s electricity sector, followed by oil and natural gas, communications, and mining and mineral waters. However, there is low to non-existent concern regarding ownership structures in the banking, tourism, construction, and transportation sectors. Nevertheless, it is conspicuous that business ownership in these sectors has been modified in parallel with Russia’s war in Ukraine and the corresponding sanction packages. As a result, direct Russian linkages in Georgian businesses have, legally, diminished since the spring of 2022. Nevertheless, disregarding these shifts, details of the deals regarding ownership changes have still not been disclosed, thus leaving doubts regarding the remaining Russian influence in the various companies and sectors reviewed.
