Bank of Georgia Implements New Limits on Luxury Purchases for Russian Cardholders

The Bank of Georgia has implemented restrictions on Russian cardholders, prohibiting purchases of luxury items exceeding 300 euros, according to reports from both Russian and Georgian media on Thursday.

Transactions via Visa and Mastercard over the amounts of 300 euros, 300 British pounds, or $300 are now limited at specific luxury retailers abroad, as stated by a representative of the Bank of Georgia to the RBC news outlet.

In March 2022, the European Union banned the export of luxury goods valued over 300 euros to Russia, extending this regulation in December 2023 to encompass high-end products irrespective of their origin. Similarly, the United States introduced sanctions in 2022, focusing on particular categories of products instead of a monetary threshold.

«The Bank of Georgia is committed to complying with the sanctions imposed by the European Union, United States, and United Kingdom,» the bank informed the Georgian news platform, Tabula.

RBC characterized this action by the Bank of Georgia as the first instance where a financial institution has actively limited luxury purchases by Russian individuals under these sanctions. The total number of clients affected by this move remains uncertain.

Previously, Russian consumers faced occasional payment difficulties at luxury shops in places like Rome, Nice, and Dubai, as reported by RBC.

When The Moscow Times sought clarification from the Bank of Georgia, the institution declined to comment. It is still unclear why the bank decided to enforce these restrictions over three years after the initial Western sanctions were put in place.

Many Russians have moved to Georgia following the large-scale invasion of Ukraine in February 2022, driven by concerns about mobilization, political repression, and economic uncertainty.