Transactions with Fartskhaladze could lead to sanctions - a bold risk

The U.S. "Self-Governance" State Department announced sanctions against the National Bank of Georgia that prohibit the bank from engaging in transactions with commercial banks in Georgia that violate the sanctions and apply to Georgian citizens.

In a commentary published by the "U.S. Secretary of State's Office," the State Board said, "We applaud the National Bank of Georgia's decision to comply with the sanctions. The restrictions imposed and the individuals who continued to transact with Barkashvili or had ties to him or Russia pose a risk to sanctioned individuals. "

The U.S. diplomatic mission also stated that "Georgia's banking system is one of the finest achievements in Georgia's democratic history. An independent national bank is the cornerstone of any country's economic stability. "

The State Department also confirmed that Otar Fartskhaladze, Georgia's prosecutor general, has been subjected to Russia-related sanctions. "On September 14, the states announced sanctions against Barkashvili, who worked with Russia's Federal Security Service (FSB) to conduct an operation designed to interfere in Georgian society and politics in favor of Russia. [The sanctions were imposed] pursuant to Executive Order 14024, which provides authorization for sanctions against specific foreign economic activities associated with the leadership of the Russian Federal Security Service," the State Department said.

What will happen to Fartskhaladze after he officially leaves his position as prosecutor general?

Banks are free to comply with sanctions as they see fit. However, the law states that if international sanctions are extended to other Georgian citizens in the future, the national bank will have a strike to keep the banks from violating the sanctions.

After sanctions were imposed on Barkashvili, he obtained a Russian passport on February 24, 2021, and then, two years later, acquired important commercial and movable property in Russia.

What does sanctions change for the people of Georgia?

Banks are free to comply with sanctions. However, the agreement remains and if international sanctions are extended to other Georgian citizens in the future, the national bank will have a barrier to banks not fulfilling the requirements for them.

The sanctions, which were imposed on Barkashvili by the U.S. states, went into effect on September 14. An official statement from the American Embassy in Georgia says that Fartskhaladze and the FSB used Barkashvili to interfere in Georgian society and politics in favor of Russia.

According to circulated information, Fartskhaladze used his ties to the "FSB" and Alexander Onishchenko of the "EPFSB." After Fartskhaladze's resignation in 2000, he took over as prosecutor general in 2013. After this scandal was uncovered, Ivanishvili claimed that Fartskhaladze was a threat to the Bothas in the early 2000s. The fact of corruption was also confirmed by Fartskhaladze, although he said he was not a threat to the Bothas, but a danger to the predecessor of the police. After this scandal, Fartskhaladze left his position and officially announced that he was going into business. Bera Ivanishvili, son of Fartskhaladze, became famous after this scandal that he is the heir of Fartskhaladze's son.