US State Department report: National Bank of Georgia, financial institutions in “full accordance” with Russia sanctions
The report highlighted the National Bank had established a new unit responsible for elaboration of guidelines on international sanctions’ compliance to ensure “proper and efficient” monitoring by financial intuitions. Photo:GettyImages
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The 2023 Investment Climate Statements of the United States Department of State on Thursday said the National Bank of Georgia and financial institutions of the country were acting “fully” in accordance with the international financial sanctions imposed on Russia for its invasion of Ukraine.
The report highlighted the National Bank had established a new unit responsible for elaboration of guidelines on international sanctions’ compliance to ensure “proper and efficient” monitoring by financial intuitions.
It also noted the body had assisted representatives of the financial sector to understand and fulfil requirements envisaged by the sanctions’ enforcement.
Compliance with international financial sanctions is systematically checked during the onsite inspections of financial institutions. The NBG closely cooperates with OFAC, OFSI, and EU relevant bodies for receiving guidance on particular issues and resolving specific questions related to sanctions”, the document said.
Following Russia’s full-scale invasion of Ukraine, the EU, United Kingdom and US imposed sanctions on several Russian banks, including the state-owned VTB Bank which has a subsidiary in Georgia.
To adhere to the sanctions, Georgia’s National Bank banned VTB Georgia from servicing individuals, borrowers and depositories in transactions in dollars, euros and other foreign currencies.
The 2023 Investment Climate Statements of the United States Department of State on Thursday highlighted business and investment conditions in Georgia as “sound”, adding the country “favourably” compared to regional peers.
James O'Brien, the Head of the Office of Sanctions Coordination at the US State Department, on Wednesday said Georgia's customs services were taking “real steps” to limit the transportation of war-related goods into Russia on the backdrop of its ongoing invasion of Ukraine, and praised the Georgian Government as “good partners in terms of transparency”.
Georgian Prime Minister Irakli Garibashvili on Friday highlighted this week’s visit of sanctions officials from the European Union, the United Kingdom and the United States to the country by saying the domestic public had heard their assessments of “effective control” by the Government in not allowing circumvention of the sanctions imposed on Russia for its invasion of Ukraine.
Sanctions officials from the European Union, the United Kingdom and the United States, who were on a visit to Georgia this week, on Wednesday highlighted they had been “convinced” that the country’s Government was “seriously” determined not to allow the circumvention of sanctions imposed on Russia for its invasion of Ukraine.
Irakli Nadareishvili, the Deputy Minister of Economy and Sustainable Development of Georgia, on Thursday said the latest report by the United States Department of State had given “high marks” to Georgia’s investment environment and ongoing economic reforms in the country.
Georgian Parliament Speaker Shalva Papuashvili on Tuesday said the Georgian Government’s policy of not implementing sanctions on Russia had “brought us a stable situation in Georgia”.
Georgian Prime Minister Irakli Kobakhidze on Friday said his Government was not imposing sanctions on Russia for its invasion of Ukraine but ensuring the international restrictions placed on the country were not circumvented through the Georgian territory.