The Georgian Dream government is feeling the heat from the country’s business community, and initial efforts to quell concerns about the economic fallout of ongoing political unrest appear to have fallen short.

Meanwhile, Georgian Dream’s founder and honorary chairman, billionaire Bidzina Ivanishvili, is coming under a different sort of economic pressure: The US government is designating Ivanishvili on its list of sanctioned individuals and entities, citing him for “undermining the democratic and Euro-Atlantic future of Georgia for the benefit of the Russian Federation.” Not only Ivanishvili personally, but also companies connected to him will be subjected to US sanctions.

“We strongly condemn Georgian Dream’s actions under Ivanishvili’s leadership, including its ongoing and violent repression of Georgian citizens, protestors, members of the media, human rights activists, and opposition figures. The United States is committed to promoting accountability for those undermining democracy and human rights in Georgia,” said a State Department news release on December 27.

Discontent among business leaders in Georgia has been on the rise in recent weeks amid widespread public discontent with government efforts to steer the country away from closer integration with European political and economic institutions. Protests have been ongoing since Georgian Dream claimed victory in a late October parliamentary election marred by widespread irregularities. 

Hundreds of business leaders signed a petition earlier in December criticizing the government for dividing the nation. “The current crisis has crossed the borders of party politics and is putting the country in imminent social and economic danger. Urgent de-escalation of the situation is necessary,” the petition stated. “The most pragmatic way of de-escalation is to call new elections and release people arrested during the recent processes before the new year.”

Signatories include top executives from some of the country’s biggest and most important enterprises: the two largest Georgian banks – Bank of Georgia and TBC – major grocery store, restaurant, and fast food chains; a major energy company; and the national airline, Georgian Airways.

Prime Minister Irakli Kobakhidze and other top officials recently held a closed-door meeting with about 100 business leaders to discuss the government’s “vision for the future,” Georgian media reported. Officials tried to cast the gathering as a show of unity in striving toward a common goal. 

“We discussed the current processes, the significant polarization in our society, and the challenges related to stability in our country today,” Economic Minister Levan Davitashvili said after the December 23 meeting. “Both businesses and various societal groups share a common desire for peace and prosperity. Regardless of their political affiliations, everyone aims for greater prosperity and a stable, predictable development environment in our nation.” 

While Davitashvili and others tried to highlight the positive, others in the room indicated the gathering did more to expose cracks in the party’s support than it did to reassure the business community. 

In an interview, Irakli Rukhadze, the owner of a pro-government channel, Imedi TV, and one of the entrepreneurs who attended the meeting, criticized Georgian Dream’s recent actions, including the claim that the party is a bulwark against the country’s becoming involved in the Russia-Ukraine war.

“When one has such a difficult job, one must stay alert. For example, one must not make the statement like we heard on November 28, which then one is forced to deny,” Rukhadze said, referring to the government’s decision to suspend EU accession talks, as quoted by the Civil Georgia news outlet.

Rukhadze also took a jab at Georgian Dream for its choice of former footballer Mikheil Kavelashvili, an outspoken critic of Western influence in Georgia, to fill the role of president.

“A more unifying person could have been chosen, which would have worked constructively with the West,” Rukhadze stated.

A pivotal moment in Georgia’s political standoff could come on December 29, when Georgian Dream attempts to inaugurate Kavelashvili as president. Salome Zourabichvili, the incumbent, has vowed not to leave office, asserting that the process that approved Kavelashvili’s election is not valid. “There is no legitimate parliament, and therefore, an illegitimate parliament cannot elect a new president,” she stated.

Kobakhidze has suggested that Zourabichvili’s refusal to relinquish the presidency could result in her arrest.