A shadow gateway for Russia's sanctions evasion
Georgia has faced international scrutiny multiple times for allegedly aiding Russia to evade Western sanctions through the illegal transportation of dual-use items, which have both civilian and military applications. A recent exposé by the Georgia-based investigative journalism team iFact has revealed that these allegations are not without merit. Over a seven-month inquiry, the team gatheredinternational trade data about Georgia's import, export, and re-export, uncovering a sharp increase in trade of dual-use goods, including radio navigation equipment, controllers, digital and video cameras, as well as digital data processing blocks. According to the investigation, the export of these products from Georgia significantly increased to Armenia, Azerbaijan, and Central Asia in 2023.
The investigation also revealed the complex routes used to transport sanctioned products. In one experiment, the transportation company ”Kairo Logistics” promised an iFact journalist that they could deliver 30 drones from Tbilisi to the Russian city of Samara via Azerbaijan or Iran for 500,000 Russian rubles (€5,120). The company's manager openly admitted to bypassing sanctions. In another experiment, the company ”Cargo Rapido” agreed to transport integrated circuits. Their operator, Natalia, informed the customer that the transport would occur ”unofficially from Georgia to Russia, without export declarations or similar procedures.”
In response to the publication of these findings, Georgia's Revenue Service dismissed the report as biased and labelled it as false propaganda.
Since the full-scale invasion of Ukraine, Russia has been subjected to severe economic sanctions, with Western countries – including the EU, Japan, and the UK – coordinating efforts to restrict the export of dual-use goods to Russia, aiming to weaken its military capabilities and hasten the end of the war. While Georgia has not officially joined the sanctions against Russia, the ruling Georgian Dream party has claimed that it adheres to international guidelines to avoid becoming a transit point in Russia’s military supply chain, a claim that has been falling flat regularly.