Georgia bill prohibits bids by Russian businesses for state contracts in support of Ukraine

A contingent of Georgia senators introduced a bill that prohibits Russian-owned companies from submitting bids for state contracts and would deliver hefty fines to businesses that try to conceal links to Russia.

The bill is a response to Russia's war with Ukraine, which has persisted for two weeks and shows no sign of an imminent resolution. 

SB 562 is sponsored by 32 Republican senators and requires certifications for businesses bidding on state contracts.

A company found to have submitted a bid under a false certification could be fined at least $250,000 or twice the amount of the contract.

There's been no vote on the bill in the senate. Senators read the bill a second time on Tuesday. 

COCA-COLA SUSPENDS BUSINESS IN RUSSIA

The Senate bill is the latest in a wave of backlash against Russia amid the humanitarian crisis in Ukraine. 

What's in Georgia SB 562? 

The bill contains several provisions:

  • Defines scrutinized company as any owned or operated by the Russian government
  • States scrutinized companies are not allowed to submit bids for state agencies
  • Requires company to certify they are not ‘scrutinized’ when submitting bids and proposals to state agencies
  • Provides a penalty of equal to the  greater of $250,000.00 or twice the amount of the contract for which a bid or proposal was submitted for false certification
  • State the contract must be terminated

Scenes from the Feb. 26, 2022, Stand with Ukraine Rally in Atlanta.  (FOX 5 Atlanta/Billy Heath / FOX 5 Atlanta)

Georgia-based companies suspend business in Russia

On Tuesday, Coca-Cola decided to suspend business in Russia in response to its invasion of Ukraine. 

The company said it would continually evaluate the situation in Europe. 

Late last month, Atlanta-based Delta said it was cutting ties with Russian-carrier Aeroflot.

Delta has had a standing agreement with Aeroflot allowing customers to book trips with both airlines on the same ticket and to allow customers to fly on each other’s flights.

Russia-Ukraine war: The Latest

Russian President Vladimir Putin launched the invasion of Ukraine in February. Nearly two weeks have passed since the invasion began. Russian forces captured parts of southern and coastal Ukraine. Military forces had not yet advanced into Kyiv.

On Wednesday, an airstrike destroyed a children's hospital in Mariupol, wounding 17 by Wednesday afternoon. 

Two million people — half of them children — have fled Ukraine in the less than two weeks since Russia invaded the country, officials said Tuesday. The conflict is Europe’s worst refugee crisis since World War II grows by the day.

Thousands of people are thought to have been killed, both civilians and soldiers, though the actual number remains unknown.

The Associated Press contributed to this report.

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