One of the largest deals in the Georgian banking market has been finalized: Basisbank, part of the Chinese Hualing Group, has acquired 95.99% of the shares in Liberty Bank—one of the market’s key players. The value of the deal has not been disclosed; however, according to statements from the parties involved, all necessary regulatory approvals have been obtained. Under the new administration, David Tsava, the head of Basisbank, will take over as CEO of Liberty. According to company statements, both banks will continue to operate seamlessly for their clients.
Rukhadze and Liberty
Irakli Rukhadze, considered a member of the inner circle of billionaire and founder of the ruling Georgian Dream party, Bidzina Ivanishvili, has for years held assets in Georgia’s banking and media sectors—specifically Liberty Bank and the Imedi TV channel.
In 2024, Rukhadze was sanctioned by Ukraine, with measures including entry restrictions, asset freezes, and a ban on conducting business within the country. Later, his name appeared in discussions regarding potential sanctions from Western nations.
In February of this year, Rukhadze announced the sale of Imedi: Georgia’s highest-rated TV channel was transferred to Prime Media Global for a symbolic sum of 1,000 GEL (approximately 370 USD). This occurred shortly before British sanctions were imposed on Georgian broadcasters accused of spreading Russian disinformation.
Now the focus is on Liberty Bank, which serves over 1.7 million retail customers and more than 60,000 small and medium-sized enterprises in Georgia. The financial institution operates 500 service centers and 700 ATMs across the country, with a workforce exceeding 5,600 employees. According to the latest data, the bank’s assets stand at 5.8 billion GEL, its loan portfolio at 4.2 billion GEL, its deposit portfolio at 4.17 billion GEL, and its net profit for 2025 is projected at 128 million GEL, or nearly 50 million USD.
Crucially, the bank effectively holds a monopoly on the distribution of state payments. Liberty is the primary authorized institution in the country for paying out pensions and social benefits. The corresponding contract will remain in effect until at least 2030.
Western Sanctions and the Chinese Factor
Rukhadze’s sale of such a large banking network just months after offloading shares in one of the country’s key television companies has raised several questions in Georgian society. Georgy Kepuladze, head of the NGO Society and Banks, links the sale of Liberty primarily to the fact that as long as the network remained in Rukhadze’s hands, the organization faced a persistent risk of sanctions.
“In the current political environment, Irakli Rukhadze himself was a more ‘toxic’ figure than the bank. Ties to him, as one of the main propagandists, did not benefit the bank. It is quite possible that some individuals deliberately refrained from keeping their funds in such an institution.”
According to the expert, the imposition of international sanctions would have led the bank to a state of “paralysis,” as the Georgian banking system is fully integrated into the Western financial structure.
Rukhadze himself denies any link between the sanctions and the sale of Liberty: “No. Moreover, you will see that we will continue to invest in Georgia,” the businessman stated during a press conference following the sale.
In any case, Liberty was acquired by its smaller competitor—the Chinese-owned Basisbank. Rukhadze noted that during the deal, the National Bank of Georgia imposed certain restrictions on the purchasing bank, which made it “not easy to collect documentation, especially from China,” and, according to him, the process took nearly a year.
By size, Basisbank ranks fourth in Georgia: its assets total 4.9 billion GEL, its loan portfolio is 3.3 billion GEL, its deposit portfolio is 3.5 billion GEL, and its net profit is 122.4 million GEL.
Hualing Group itself is a private Chinese conglomerate from the city of Urumqi, an example of the “first private Chinese company” to buy a Georgian bank back in 2012. The group has been operating in Georgia since 2007 and is considered one of the largest foreign investors, having invested approximately 600 million USD over that period. Beyond the banking sector, Hualing has actively diversified its presence in the country, focusing on industrial zones, commercial real estate, and logistics.
One of the company’s flagship projects is the Hualing Kutaisi Free Industrial Zone (FIZ), launched in 2015. It currently occupies 58 hectares with plans to expand to 100 hectares, offering residents full exemption from taxes on profits, dividends, imports, exports, VAT, and property. The zone hosts enterprises in woodworking, pharmaceuticals, textiles, and solar panel production, positioning itself as a logistics hub for Kutaisi with direct access to the railway and airport.
An even larger-scale project is the Hualing International Special Economic Zone (Tbilisi Sea New City) near the Tbilisi Reservoir. The group invested over 300 million USD in this 420-hectare complex, built on the site of the former Olympic Village. The territory includes residential quarters, the five-star Hotels & Preference Hualing Tbilisi, and the Hualing Tbilisi Sea Plaza, the largest shopping and entertainment center in the Caucasus, covering 110,000 m².
Chinese Influence in Georgia
Vakhtang Partsvania, an economist and professor of management at Caucasus University, points out that the finalized deal not only strengthens Basisbank’s position—increasing the organization’s share in the banking sector to 10%—but also expands the Chinese presence in the country.
“In recent years, Georgia has consistently deepened its economic interaction with China—from infrastructure to transit corridors. The emergence of Chinese capital in a major bank, especially one with a social function, represents the next level of presence, going beyond ordinary investment. In the short-term logic of the Georgian authorities, this can be explained by the influx of capital and increased competition. But in the strategic dimension, the benefit looks questionable,” Partsvania believes.
According to the expert, such a decision distances Georgia not only from the EU but also from the US. The integration of China into the banking sector—which is “strategically sensitive”—creates a situation where “economic presence begins to convert into political presence.”
Georgy Kepuladze, for his part, notes: “For Western capital, modern Georgia represents a high political risk zone. In contrast, Chinese capital is often more resilient to political instability and much less sensitive to Western sanctions (provided these processes do not directly affect their global interests).”
At the same time, Kepuladze highlights a positive aspect of the deal: the average consumer will “win,” as the formation of another major player in the market will inevitably lead to increased competition and a wider range of opportunities for clients.
