Bank of Georgia, the largest bank in Georgia, has restricted purchases in luxury shops to clients from Russia. The bank’s card can be used to pay for goods not exceeding 300 euros, the RBC news agency reported.
The bank explained the restrictions, pointing out that this is being done as part of the country’s compliance with EU sanctions. Georgia is a candidate for EU membership, although the accession process was frozen in the summer of 2024.
The bank commented on the restrictions to the Russian state agency TASS. The report says the bank ” has complied and is complying” with the requirements of the US, EU and UK sanctions.
RBC notes that this is the first known case of a ban on luxury goods purchases being enforced not by a shop but by a bank card issuer. Russian citizens began to issue cards of international payment systems more frequently in Georgia and other countries neighbouring Russia after Visa and Mastercard left the Russian market.
A ban on luxury goods worth more than 300 euros to Russia was adopted by the European Union after the start of Russia’s full-scale invasion of Ukraine in 2022. Similar bans are in place in the US and the UK.