Ivanishvili Starts International Litigation with Georgian Authorities

• Friday, August 3, 12:22

Tbilisi. Georgian billionaire, leader of the oppositional political coalition Georgian Dream Bidzina Ivanishvili begins litigation with the Georgian government in connection with investment rights violation, Ivanishvili's spokesperson Maya Panjikidze stated at the briefing on Wednesday, August 1.

According to her, litigation with Georgian authorities will begin in the nearest future in the World Bank's International Center for Settlement of Investment Disputes.

"The authoritative international law institution will probe into all violations, that Georgian authorities committed regarding Cartu Bank. The fact of seizure of Ivanishvili's shares in Progress Bank  will also be researched.  International Law Firm Skadden will defend interests of Bidzina Ivanishvili, whose rights were violated by the Georgian authorities. A litigation between Ivanishvili and Georgian authorities will begin in the World Bank's International Center for Settlement of Investment Disputes", Panjikidze said.

In turn, Ivanishvili's lawyer Archil Kbilashvili said that the International Law Firm Skadden had already prepared on behalf of Ivanishvili a legal document "The Last Notification on Litigation", which was submitted to President and the government of Georgia on July 31.

                "This document is expedient, it has been submitted to the Georgian government for launching litigation. In the document the lawyers give two weeks (14 days) to the government to recognize that the actions against Ivanishvili are illegal. Of course, nobody hopes the government will fulfill this demand. But it is an obligatory procedure, necessary for implementation of  next stages", Kbilashvili noted.

According to him, a complaint will be filed to the World Bank's International Center for Settlement of Investment Disputes in 14 days and the court will start consideration of the case.

                As the lawyer noted, at the present stage amount of compensation for damage which Ivanishvili would demand had not been determined yet, but he might say that it would be some millions. Besides, certain interests will be added that will be calculated, using data of exchanges  

As it was told in the billionaire's coalition earlier, in the middle of July Ivanishvili   met with Skadden representatives, heads of London and Washington Offices David Herlich and Gregory Bestor Craig.

At the beginning of July forced management was imposed in Cartu Group, which had been set up by Ivanishvili in due time, despite the billionaire's statements that the assets did not belong to him from May.  According to the investigation's data, Ivanishvili's business-assets were used illegally for the election campaign.

The question is about 100% of shares in Cartu Group, assessed to amount to approx. GEL151,9 mln (approx. $92,6 mln, the exact amount GEL151 880 661) and 21,7% of shares of Progress Bank that were evaluated to totalGEL3,6 mln (approx. $2,2 mln, exact amount GEL3 566 498). The property was assessed by the National Legal Expertise Agency on the written request of the National Enforcement Bureau.

                On July 26, Tbilisi City Court lifted forced management from Cartu Group company, having satisfied the petition of the National Enforcement Bureau at the Justice Ministry of Georgia. Thus, Cartu Group was transferred to Ivanishvili's possession, Nodar Javakhshvili again became president of Cartu Bank, which was managed by the businessman's company.

                In 2012 Skadden received the "Law Firm of the Year" in the USA.

                Georgian lawyer Archil Kbilashvili told journalists that it was not Skadden first case in Georgia, according to him, lawyers of the firm defended interests of Israeli businessmen in the case about $7 mln bribe.

Israeli businessmen Ron Fuchs and Zeev Frenkel were arrested in October 2010 in Batumi. They were arrested on suspicion of attempting to bribe Georgian Deputy Finance Minister, Avtandil Kharaidze. Later, Kharaidze confirmed that he had accepted the US$7 million bribe.