TI Georgia: UK sanctions evasion can trigger secondary sanctions risk

Transparency International Georgia has warned that any assistance aimed at circumventing sanctions imposed by the Government of the United Kingdom could result in secondary sanctions.

In a statement on Friday, the organization said that by imposing sanctions, the UK government designated Georgian broadcasters TV Imedi and POSTV as actors involved in Russia’s information warfare and sought to halt their operations through financial restrictions.

It stressed the impact of British sanctions extended beyond UK jurisdiction. Due to the risk of secondary sanctions and reputational damage, the broader Western financial system was expected to comply with the restrictions.

Transparency International Georgia noted that because Georgia’s banking sector was integrated into the Western financial system, it would be compelled to adhere to those rules to maintain access to international markets. 

This, the organization said, would require all Georgian banks - not only those listed on the London Stock Exchange - to deny services to the sanctioned broadcasters.

The organization outlined a series of potential consequences for TV Imedi and POSTV as a result of the sanctions, including:

• Freezing of bank accounts and funds held in Georgian banks
  
  

• Inability to receive income, including advertising revenue
  
  

• Risk of secondary sanctions for businesses or state institutions providing financial support
  
  

• Inability to pay employee salaries
  
  

• Potential investigations related to money laundering or tax evasion
  
  

• Restricted access to banking services for employees
  
  

• Inability to obtain loans or other financial services
  
  

• Loss of access to Western entertainment content licenses
  
  

• Restrictions on acquiring rights to broadcast foreign series
  
  

• Review or termination of broadcasting-related services
  
  

• Possible limitations on social media usage and advertising
  
  

• Difficulties in paying utility bills and obtaining essential business services
  
  

The organization stressed that the UK government continuously monitored compliance with its sanctions regime.

It added that the designation would likely place the broadcasters under increased scrutiny by international investigative journalists and sanctions-monitoring organizations.

Transparency International Georgia called on Georgian companies and individuals to refrain from providing any direct or indirect financial support, services, or benefits to the sanctioned television channels, warning that failure to do so could expose them to secondary sanctions.