Remittances (Georgian market)

Main article: Georgia

Chronicle

2023

Remittances from Russia to Georgia decreased by 27.5% to $1.5 billion

Remittances from Russia to Georgia in 2023 decreased by 27.5% compared to 2022 and amounted to $1.5 billion. This is evidenced by the data that the National Bank of Georgia released in mid-January 2024.

According to Interfax, citing materials from the regulator, in total in 2023, $4.1 billion in remittances arrived in Georgia, which is 6.8% short of the result of a year ago. Russia remained the leader in terms of the volume of transfers, despite their significant reduction after almost 6-fold growth in 2022. Following the Russian Federation in terms of the volume of remittances to Georgia at the end of 2023 are:

• Italy - $518.6 million (an increase of 20.2% compared to 2022);
• USA - $456.4 million (+ 39.6%);
• Georgia - $242.3 million (+ 8.2%);
• Germany - $228.6 million (+ 39.1%);
• Israel - $215.2 million (+ 8.1%).

Remittances from Russia to Georgia in 2023 decreased by 27.5%

In 2023, Russia accounted for more than 36% of all remittances to Georgia from abroad. Georgia became one of the main places of Russian relocation after the start of Russia's special military operation in Ukraine. A significant reduction in the volume of transfers occurred after a number of credit institutions - Loko-Bank, St. Petersburg Social and Commercial Bank, Tinkoff Bank, as well as credit organizations Solidarity and Unistream - entered the US SDN list in July 2023. The latter was the operator of the payment system of the same name, which allowed cross-border transfers from Russian cards. At the end of July 2023, many banks located in the neighboring countries of Russia (including Georgia, suspended work with Unistream). In addition, as noted by Frank Media, in April 2023 it was reported about the forced blocking and closure of Russian accounts in Georgian Bank of Georgia and TBC Bank.^[1]

Transfers from Russia to Georgia in January-February increased 10 times to $454 million

In the first month of 2023, $267.6 million was transferred to Georgia from Russia, which is 12 times higher than in January 2022.

The volume of remittances from Russia to Georgia in the first two months of 2023 amounted to $454.9 million, which is more than 10 times higher than the same figure for 2022, the National Bank of Georgia said.

2022

Remittances from Russia to Georgia increased by 500%

In Georgia, in 2022, Russians opened almost 110 thousand bank accounts.

The volume of remittances from Russia to Georgia in 2022 amounted to $2.07 billion, which is about 500% more than a year earlier, when the figure was measured at $411.4 million. This is evidenced by the data of the National Bank of Georgia (NBG), which refers to the updated data of the financial monitoring service. The statistics were released on January 17, 2022.

According to Kommersant, Russia has become the absolute leader in money transfers to Georgia. Next are:

• Italy - $431.6 million;
• USA - $327 million;

- Greece - $224 million;

• Israel - $199 million

National Bank of Georgia

The recipients of funds in Georgia are mainly Russians who moved to the country against the background of the Russian special military operation in Ukraine, the newspaper notes.

According to the order of the National Bank of Georgia, Russian citizens in the country can receive transfers exclusively in the national Georgian currency - lari, with conversion at the commercial rate. The transfer of amounts of more than $2 thousand from the Russian Federation to Georgia is prohibited. Therefore, many Russians, wanting to transfer and receive a larger amount, break it into several trenches.

Since the opening of a currency account in Georgia for Russians is problematic due to international financial sanctions, which Georgia initially joined, transfers most often use various systems of quick transfers (mainly the Golden Crown).

Another order of the NBG prohibits Georgian banks from issuing a debit or credit card to Russians operating outside Georgia. Citizens of the Russian Federation, even those with an account in a Georgian bank, are prohibited from transferring funds abroad.

Georgia has become one of the most popular destinations among Russians who left Russia after the start of a special operation. To enter the country, Russians do not need a visa, they can stay on its territory for a year.^[2]

The take-off of transfers from Russia is 4.5 times after the announcement of mobilization

Remittances from Russia to Georgia in September 2022, when partial mobilization was announced during the conflict in Ukraine, increased 4.5 times.