Bank of Georgia introduces spending cap on luxury items for Russians

Bank of Georgia (BoG), the country’s second-largest bank, has introduced new restrictions on the ability for Russian cardholders to make purchases at ‘certain’ luxury retailers, a bank representative told the Russian pro-government media outlet RBC.

While not specifically defining which retailers the new limitations would impact, the representative said the spending cap was set at €300, $300, or £300.

The restrictions will impact a wide range of products, including alcohol, food, electronics, jewelry, perfume, clothing, and musical instruments, RBC reported.

Separately, a bank spokesperson told the Georgian media outlet Tabula that the bank ‘has adhered to and is following the sanctions requirements imposed by the US, the EU, and the UK’.

Following the beginning of Russia’s full-scale invasion of Ukraine, the EU and US implemented bans on the exports of luxury items to Russia.

BoG’s new measures appear to follow suit, and will impact Russian cardholders no matter where they are located.

RBC reported that BoG was the first bank to limit luxury purchases for Russians in connection with Western sanctions.

BoG is owned by the Lion Finance Group, which is incorporated in the UK.

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OC MediaNate Ostiller