Georgia's largest bank has banned Russians from buying luxury goods worth more than 300 euros

Georgia's largest bank, Bank of Georgia, has banned its Russian customers from making purchases worth more than 300 euros in luxury stores around the world, the Russian news agency RBC reported, citing a letter from the bank.

It is noted that the restrictions were introduced in accordance with international sanctions, which prohibit the supply of luxury items to Russia worth more than 300 euros.

At the same time, Bank of Georgia asks customers to contact it in case of a change in tax residency.

The bank explained that this is not an initiative of the bank itself, but a requirement of a regulator (which one is not specified). The purchases that will be blocked are those that are identified by MCC codes, which are used worldwide to classify retail outlets.

Previously, Russians have already encountered difficulties when buying branded goods in boutiques in Rome, Nice, or Dubai. But such cases were rare, because control over compliance with sanctions was entrusted to the brands themselves. Now the restrictions will apply at the bank level, automatically.

The EU introduced a ban on the supply of luxury items to Russia worth more than 300 euros back in 2022, after Russia's full-scale invasion of Ukraine.

• On December 13, 2024, it was reported that the German company Gebr. Heinemann, which operates duty-free shops at Lithuanian airports, supplies luxury goods to companies owned by Russian oligarchs.