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VAT, property and other taxes that could have contributed between $300mn and $400mn to state revenue.
According to Giorgi Bachiashvili, former head of Ivanishvili’s Co-Investment Fund, the declared value of the paintings significantly understates their real worth, estimating the collection at over $1bn. Economist Roman Gotsiridze has suggested that this tax scheme alone deprived Georgia’s budget of
at least $86mn in unpaid taxes, and potentially up to $180mn based on Bloomberg’s valuation.
The offshore tax exemption law, fast-tracked by parliament despite objections from then president
Salome Zourabichvili, exempts assets transferred from offshore entities from corporate and income taxes, import
duties, and property taxes until 2030. While Georgian Dream officials claim the law does not specifically benefit Ivanishvili, opposition voices insist it was designed to protect his wealth and consolidate his financial influence.
Tamta Mikeladze, director of the Centre for Social Justice, has criticised the law for enabling tax-free capital flow for the country’s wealthiest individuals while ordinary citizens remain subject to the same tax rate. “The promise that these tax changes would drive economic growth was a deception. One-time capital inflows do not create sustainable industry or development,” she said to Jam News.
Speculation is also mounting over where Ivanishvili intends to store the imported artworks. “Not at home, of course – that’s out of the question,” said
Gotsiridze. “Securing such a collection would require an entire army. The only logical place is the National Bank’s vault, where Georgia’s seven tonnes
of gold bars are kept.” Whether the National Bank would accommodate such a request remains unclear, but opposition figures argue that it would be legally dubious.
The Georgian government’s decision
to grant sweeping tax exemptions to offshore assets has drawn international scrutiny, particularly as the country navigates its geopolitical position between the West and Russia. The controversy surrounding Ivanishvili’s art imports has only reinforced concerns that Georgia’s financial and political systems are being restructured to serve the interests of a single individual.
Armenia's economic growth slows as sanctions boost fades
bne IntelliNews
The Eurasian Fund for Stabilisation and Development (EFSD) has reported a significant slowdown in Armenia's economic growth. According to the EFSD baseline projections, economic growth is expected to stabilise at around 5% between 2025 and 2027, close to Armenia's potential growth rate.
The fund cited a decline in re-export volumes and reduced tourist inflows from Russia – both factors linked to Western sanctions on Moscow since the invasion of Ukraine.
The report highlights external risks, including a sharper decline in precious metals trade and lower tourist arrivals, which could lead to a near-term economic contraction and pose fiscal and balance of payments challenges. Additional fiscal pressures stem from the government's social obligations towards Nagorno-Karabakh refugees.
Inflation stood at 1.5% in 2024, well below the central bank's target range
of 4.0 ± 1.5%. At the same time,
a deteriorating services balance contributed to a higher current account deficit, while the Armenian dram remained overvalued.
Monetary policy will focus on bringing inflation back to target, while increased government spending will widen the budget deficit, requiring additional sources of financing.
Armenia's 2025 state budget projects economic growth of 5.1%. The central bank estimates GDP growth between 4.8% and 7.1% in 2025, between
4.7% and 7% in 2026 and between
5% and 6.2% in 2027. Independent financial institutions have also provided forecasts, with the Eurasian Development Bank (EDB) predicting 5.5% growth, the World Bank 5%, the International Monetary Fund 4.9%, the
European Bank for Reconstruction and Development (EBRD) 4.8%, the Asian Development Bank (ADB) 6%, Fitch Ratings 4.9% and S&P Global Ratings around 5.5%.
Established in 2009 by Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia and Tajikistan, the EFSD manages over $9bn in capital. Its main objectives are to ensure the economic and financial stability of its member states and to support sustainable development initiatives.
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