WASHINGTON: The United States on Friday sanctioned Georgian billionaire Bidzina Ivanishvili, a former prime minister widely seen as the country's de facto leader, saying he was undermining democracy and allowing Russia to benefit.

Ivanishvili, who made billions in Russia in metals and telecoms in the 1990s, has spearheaded a turn away from the West in Georgia and accused foreign intelligence agencies of trying to drive it into war with Russia.

Critics say that under his Georgian Dream party, the country has become more authoritarian and pro-Moscow.

U.S. Secretary of State Antony Blinken said Washington was sanctioning the reclusive Ivanishvili for “undermining the democratic and Euro-Atlantic future of Georgia for the benefit of the Russian Federation.”

Blinken said Ivanishvili had implemented “actions or policies that undermine democratic processes or institutions in the United States or abroad” for Russia.

The sanctions, which freeze any U.S. assets belonging to Ivanishvili, follow years of souring relations between the West and Georgia, a former Soviet republic now a candidate for European Union membership.

Prime Minister Irakli Kobakhidze called the move “blackmail” and said it was Ivanishvili's “reward” for protecting Georgia from war.

He repeated claims by Ivanishvili allies that the billionaire has been under de facto U.S. sanctions for years, something Washington denies.

Georgian Dream, which is dominated by Ivanishvili, says it is committed to a democratic and pro-Western Georgia while also maintaining pragmatic ties with neighbouring Russia.

But last month it froze EU talks until 2028, abruptly halting a longstanding national goal.

The freeze triggered protests and a crackdown that has seen more than 400 people, including opposition politicians, detained.

OPPOSITION LEADER, UKRAINE WELCOME SANCTIONS

Georgia's Interpress news agency quoted Giorgi Vashadze, a leader of the opposition United National Movement, as saying he welcomed sanctions on Ivanishvili.

“The people’s struggle has its results,“ Vashadze said. “The whole world sees the protest of the Georgian people, and this is a serious success of this protest.”

Ukrainian President Volodymyr Zelenskiy welcomed the U.S. move, saying Ivanishvili “is effectively the ruler in Tbilisi today and is doing everything to hand Georgia over to (Russian President Vladimir) Putin’s control.

“The loss of any country in our region, the destruction of democracy for one nation and the spread of criminal Russian influence pose a threat to the entire region and all its peoples,“ Zelenskiy wrote on Telegram.

The U.S. on Dec. 18 sanctioned several Georgian interior ministry officials whom it accused of complicity in the crackdown on protesters.

Ivanishvili has this year championed laws regulating “foreign agents” and LGBT rights that critics say are draconian and inspired by Russia.

Russia ruled Georgia for around 200 years until 1991 and continues to back two breakaway Georgian regions. They have had no formal diplomatic relations since Moscow defeated Tbilisi in a five-day war in 2008. Russia has said it does not interfere in Georgia.

The recent upheavals follow a disputed election in October, in which official results gave Georgian Dream almost 54% of the vote. Opposition parties say it was tainted with fraud and illegitimate.

President Salome Zourabichvili, a critic of Georgian Dream, has said she does not recognise the election results and will not leave office when her term ends.

Her successor, Mikheil Kavelashvili, elected by Georgian Dream lawmakers, is due to be inaugurated on Sunday.

Georgian Dream has said it expects relations with the U.S. to improve under the incoming administration of President-elect Donald Trump.