A report by the Institute for Development of Freedom of Information (IDFI) revealed that the number of Russian-owned companies in Georgia has reached an all-time high, with nearly 37,400 companies under Russian ownership. This surge is largely attributed to the influx of Russian migrants following the outbreak of the Russia-Ukraine war.
The report highlights the complexities in identifying ownership of many large Russian companies operating in Georgia, as they often enter the economy through offshore or intermediary firms. This makes it difficult to trace the actual owners. Furthermore, some companies owned by dual Georgian-Russian citizens or solely Russian nationals are not fully accounted for in official statistics, leading to further inaccuracies in determining the exact number of Russian businesses operating in the country.
The report explains that any Russian-owned companies in Georgia, including both large corporations and smaller entities, are active in sectors such as energy, telecommunications, industry, and gambling. Data from Georgia’s National Statistics Office shows that as of June 1, 2024, Russian citizens own approximately 37,400 companies, with over 30,000 registered since 2022. Of these, 20,885 companies are listed as active, representing about 8.1% of all active companies in Georgia.
The report also noted that 494 of these companies are owned by dual Georgian-Russian citizens, including prominent examples like Georgian Dream LLC, a company involved in music publishing and recording, owned by Bera Ivanishvili, the son of Bidzina Ivanishvili, founder and Honorary Chair of the ruling Georgian Dream party.
Other notable companies include entities tied to individuals sanctioned by Ukraine, such as Vakhtang Karichashvili, who owns several companies, including Bolero & Company, one of Georgia’s largest alcohol producers.
The research found that Russian citizens own 34,857 companies without any apparent ties to Georgian citizens, while only 4% of Russian company owners have Georgian surnames. The vast majority of these companies (89%) are classified as small businesses, with only 0.5% being medium or large enterprises.
