The European Union recently imposed sanctions against Inter RAO, a Russian state-owned energy company, a move that has unnerved the Georgian public. The issue is that, among other things, the company controls the electricity supplying homes in Tbilisi. Let us examine what these sanctions could mean for Georgia and what ways out might exist.
On the night of July 24 and again on July 25, Georgia was literally plunged into darkness—the entire country lost power. To say that the incident reawakened old traumas among the population would be an understatement. At the same time, not a single competent state agency was able to convincingly explain the blackout. To top it off, the State Security Service launched an investigation under the article on “sabotage.”
The final chord in this confusion was the sanctions against the Russian giant Inter RAO, which since the early 2000s, through Dutch subsidiaries, has owned nearly 75.5 percent of Telasi and Telmico—the operator of Tbilisi’s power distribution network and the capital’s electricity supplier, respectively. In addition, Inter RAO controls two hydroelectric power stations, Khrami I and Khrami II.
The European Union included Inter RAO in its 21st sanctions package on July 23. Brussels explicitly stated that the company, controlled by the Russian government, pays huge taxes and dividends into the Russian budget, thereby financially supporting the war against Ukraine.
Formally, Telasi and Telmico themselves were not included on the sanctions lists. However, EU rules are strict: if a sanctioned entity holds a controlling stake, asset freeze mechanisms and financial restrictions automatically extend to its subsidiaries. Experts note that for the Georgian capital, this creates a serious legal and financial time bomb.
In practice, European banks and companies are now prohibited from carrying out transactions, providing resources, or rendering services to legal entities controlled by Inter RAO. This could block processes such as dividend payments or the routine purchase of foreign equipment for grid repairs.
Incidentally, expert circles are already actively discussing the so-called “Borjomi scenario.” As a reminder, in 2022, due to sanctions against Alfa Group co-owner Mikhail Fridman, the legendary Borjomi bottling plant faced the threat of a complete shutdown. At that time, the Georgian government transferred a 7.7% stake to itself, managing to remove the brand from the direct control of sanctioned individuals and save production.
Ultimately, however, the main question today concerns the country’s energy security. Following the recent widespread power outages, the public expects clear answers from the state: what caused the blackout, how well protected is the country’s critical infrastructure, and whether the authorities have an action plan should the situation deteriorate.
