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Russian ownership in the communications sector has been connected to Veon Georgia - IDFI

მობილური ოპერატორები ქსელი ტელეფონი კავშირგაბმულობა კომუნიკაციები
Natiko Taktakishvili
04.10.23 16:45
144

The Institute for Development of Freedom of Information (IDFI) has investigated Russian capital accumulation over several sectors. Russian ownership in the communications sector has been connected to the cellular communication company Veon Georgia and to interests in the sector via Fridon Injia’s family. Injia is a Georgian political figure with outspoken anti-western sentiments who expressly advocates for closer ties with Russia. Injia’s family members (his son and spouse) have dual citizenship with both Russia and Georgia (Institute for Development of Freedom of Information (IDFI).

Veon Georgia, a cellular communication company, also known under the name of the mobile operator Beeline, is currently owned by Khvicha Makatsaria, a Georgian businessman, who purchased 100% of its shares in 2022. Before which, one co-owner in Beeline Georgia was the sanctioned Russian businessmen Mikhail Fridman (Institute for Development of Freedom of Information (IDFI). However, as of now, no clear Russian ties have been found in Veon Georgia.

Beyond Veon Georgia, significant interests in the communications market are concentrated in the hands of Fridon Injia and his family. According to the IDFI, “Fridon Injia controls 25.19% share of the landline telephone market and 6.2% of the fixed internet connection market in Georgia.”
Namely, Injia’s companies in the communications sector include: Akhali Kselebi, System Net, CGC, and Fopnet (Institute for Development of Freedom of Information. Fopnet provides telecommunication services through long-distance channels from Tbilisi to large Georgian cities, and from Tbilisi to Russia, the CIS, Europe, and to Asia. Moreover, Fopnet owns the Georgia-Russia fiber optic cable. The company additionally has a partnership with the Russian Vestelcom, a subsidiary of the communications company Rostelcom (Institute for Development of Freedom of Information (IDFI).

Besides the aforementioned connections, Russian ownership has also been detected in the broadcasting company R.B.G., which transmits translations of the Russian Public Broadcaster (ORT). The owners of this company are Irakli Adamia (10%), a Georgian citizen, and the Russian,
Olga Milieva (90%) (Institute for Development of Freedom of Information (IDFI).

Considering the interests of Injia’s family and the previous Russian connections of Veon Georgia, an assessment of the Georgian communications sector raises moderate concerns regarding the potential risks and threats that might arise from Russian ownership.

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