National Bank "categorically rules out" sanctioned transactions through Georgian banking sector
The NBG made the statement following allegations by Ukrainian lawmaker David Arakhamia, who said Russian individuals and companies were using entities in Georgia to bypass Western sanctions. Photo: Nino Alavidze/Agenda.ge
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The National Bank of Georgia on Thursday said it "categorically rules out" the possibility of individuals sanctioned in response to Russia’s invasion of Ukraine carrying out “any kind of financial transaction” using the Georgian banking sector.
The NBG made the statement following allegations by Ukrainian lawmaker David Arakhamia, who said Russian individuals and companies were using entities in Georgia to bypass Western sanctions.
The NBG statement also said sanctioned operations were excluded in domestic banking through the Bank’s adherence to “all standards and international resolutions”.
"The National Bank instructed representatives of the Georgian financial sector on the very second day of the war to fulfil requirements of the sanctions", the statement noted, adding thanks to close cooperation with international institutions, banks operating in Georgia were "constantly provided with up-to-date information on sanctioned individuals and organisations".
"In case a discovery [of sanctioned operations taking place] the National Bank will react strictly", the Bank stressed, while also noting that providing assistance in sanctions evasion was “not in the interests of Georgian banks either".
The Georgian Embassy in Washington on Wednesday said the allegation by Ukrainian lawmaker David Arakhamia that Russian individuals and companies were using entities in Georgia to bypass Western sanctions were “completely false”, Reuters reported.
The Speaker of the Georgian Parliament Shalva Papuashvili on Tuesday said there were no grounds for claims Georgia was used by Russia to bypass international sanctions imposed on the country for its invasion of Ukraine.
Archil Talakvadze, the Georgian Parliament Vice Speaker, on Tuesday said comments by the United Kingdom Ambassador Mark Clayton confirmed there was no evidence for claims by some Ukrainian authorities about Georgia being used to bypass sanctions placed on Russia for its invasion of Ukraine.
British Ambassador to Georgia Mark Clayton said Georgia was “playing its part” in the package of international sanctions imposed on Russia for its invasion of Ukraine, in an interview released by Interpressnews agency on Monday.
The Georgian Ministry of Finance on Friday released a statement rejecting "irresponsible and manipulative" reports by local media outlets that alleged use of the country’s transport corridor for delivering Russia's sanctioned goods to Europe.
The Governor of the National Bank of Georgia, Koba Gvenetadze, said the Bank had taken "decisive and timely actions" and avoided "a worse situation" in response to the global challenges "that the world in general faces today", in comments released by the NBG on Monday.
Grigol Vashadze, a member of the Georgian Parliament, on Thursday criticised David Arakhamia, a Ukrainian lawmaker and the country's chief negotiator with Russia, for his “incomprehensible” allegations of Georgia being used for circumvention of international sanctions placed on Russia for its invasion of Ukraine.
Speaker of the Georgian Parliament Shalva Papuashvili on Monday accused a part of the domestic opposition of seeking “restrictive measures” being applied to the country by the West.
Impacts of the ongoing war in Ukraine on the global financial system and challenges in the Black Sea region were discussed by Koba Gvenetadze, the Governor of the National Bank of Georgia, and the United States Ambassador Kelly Degnan on Tuesday.
The National Bank of Georgia on Monday said it had developed a set of regulations to prevent violation of international sanctions imposed on various countries by partner states or blocs in financial transactions facilitated by domestic commercial banks.
The National Bank of Georgia on Wednesday said media reports on a fine imposed by the body on a financial institution were “inaccurate” without the context of the recipient of the penalty being only one of entities to be fined over the recent years.
Irakli Kobakhidze, the head of the ruling Georgian Dream party, on Tuesday announced his party would “definitely override” President Salome Zourabichvili’s veto on amendments to laws related to the country’s National Bank to “prevent a potential institutional crisis”.