High-priced Art Imports Suggest Ivanishvili Allegedly Benefits From Offshore Law
High-priced works of art have been imported into Georgia, raising suspicions that they were brought in by the country’s billionaire behind-the-scene ruler, Bidzina Ivanishvili, who allegedly benefited from a law passed last year that eased the flow of offshore assets into the country.
In January, Georgia imported three of batches works of art worth USD 167,600,406, USD 252,703,924, and USD 60,354,000, totaling USD 480,658,330 according to the official data from the Ministry of Finance. Two came from the United States and one from the United Kingdom. Although the importer is unknown, many in the low-income nation suspect it was Ivanishvili, sanctioned by the United States and some European countries and known for his affinity for exotic flora, fauna, and lavish art.
Last spring, amid the Foreign Agents’ law turmoil, the Georgian parliament rushed through changes to the country’s tax code that eliminated import taxes on offshore assets, fueling fears they were designed specifically for Ivanishvili to protect his wealth by moving it to Georgia in the event of future international sanctions against him.
“It’s the beginning of Ivanishvili transferring his artwork worth millions of dollars in Georgia,” Beka Liluashvili, a politician with the opposition party Gakharia for Georgia, wrote on social media, adding that Ivanishvili’s actions suggest his fear of sanctions.
If what many believe is true, and Ivanishvili imported the artworks from offshore assets, the ‘Offshore Law’ would save him around $85.5 million, which he would have had to pay into the state budget as VAT without the law.
An increase in Georgia’s imports and a parallel decrease in the volume of VAT in January would seem to support these claims. Imports amounted to $1.6 billion in January, up 45% on the same period last year, and excluding these purchases would be only $1.1 billion. Meanwhile, the volume of VAT did not increase, falling by 0.9 per cent in January to around $284 million.
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