Parliament of Georgia passes package of laws on control over foreign funding
New restrictive laws in Georgia
Georgia’s parliament has passed in the third reading a package of legislative amendments that significantly tighten control over foreign funding and political activity.
The amendments broaden the definition of a “grant”, extending it to cover almost any financial or non-financial assistance that could influence the country’s politics. They also require government approval before grants can be issued and introduce lengthy prison sentences for violations.
Seventy-eight MPs from the ruling majority voted in favour of the amendments.
The changes affect both the criminal code and the laws on grants and on political associations of citizens.
The government says the amendments are intended to “protect the constitutional order and limit foreign influence”, while critics argue the legislation is an attempt to narrow the democratic space.
New restrictive laws in Georgia: “Extremism against the constitutional order”
After the first reading, the authors of the amendments added a new article to the criminal code — Article 316¹ — which introduces criminal liability for “extremism against the constitutional order”.
According to a representative of the ruling majority, Irakli Kirtskhalia, the following actions will be considered offences under the article:
- calls for mass violations of Georgian law
- calls for mass disobedience to state authorities
- public and systematic calls to create alternative state bodies
- falsely presenting oneself or another person as a representative of the government
- other systematic actions that cast doubt on the legitimacy of the constitutional order or state authorities, or harm or threaten the country’s interests
Punishment may include a fine, 400–600 hours of community service, or a prison sentence of up to three years. Legal entities may face fines or liquidation.
Some lawyers say the provision referring to “casting doubt on legitimacy” is particularly problematic, as it could be interpreted very broadly.
Expanded definition of a “grant”
Under the new law, the definition of a grant now covers not only direct financial or non-financial assistance but also any resources that are transferred and:
- are used or may be used to influence the government, state institutions or part of society
- are linked to the formation, implementation or change of the country’s domestic or foreign policy
- arise from the interests of a foreign government or a political party of another state
Issuing or receiving grant assistance will now be possible only with prior approval from the Georgian government.
The amendments apply to:
- organisations registered abroad but carrying out significant activities in Georgia
- branches and representative offices of non-resident legal entities that receive funding from their parent organisations
- not only financial support but also technical assistance, expertise, exchanges of technology, knowledge and services
If a foreign state hires an expert in Georgia to work on political issues, the payment for that work may be treated as a grant and will have to be approved by the government.
Receiving a grant without permission will lead to administrative liability, including a fine equal to twice the amount of the illegally obtained income. In some cases, criminal liability may apply, with penalties of up to six years in prison.
“Political activity” of businesses and money laundering
The package of measures also tightens sanctions against business entities for engaging in “political activity”. If an entrepreneur engages in political activity or makes political statements, the company may be fined 20,000 lari for a first violation. In the case of a repeated offence, liability may increase to a prison sentence of up to three years.
In addition, an aggravating circumstance has been added to Article 194 of the criminal code (“Money laundering”): if money laundering is linked to political activity, the penalty may rise to between nine and twelve years in prison.
Criminalisation of “foreign lobbying”
The bill also criminalises what it describes as “foreign lobbying”. In particular, transferring money or other benefits to a citizen or legal entity of another country in exchange for activities on political issues concerning Georgia may be punished by a fine, community service or a prison sentence of up to six years.
The head of a political party will also face criminal liability for receiving foreign funding.
Restrictions on participation in political parties
Amendments have also been introduced to the law on political associations of citizens. Under the changes, a person working in an organisation that receives more than 20% of its annual income from foreign sources will be prohibited from being a member of a political party for eight years.
The legislation also extends restrictions imposed on political parties to organisations with a “declared party-political objective”. Their financial activities will be monitored by the State Audit Service.
Political and international context
The amendments are seen as one of the most far-reaching “reforms” in the regulation of political and civic activity in recent years. The broad language used in the legislation — particularly terms such as “influence” and “casting doubt on legitimacy” — could in practice affect NGOs, media organisations, the academic community and businesses.
The authorities say the new laws are intended to protect the country’s sovereignty and constitutional order. Critics, however, fear the amendments will strengthen state control over the political and civic space and raise additional questions about Georgia’s democratic development.
The reaction of international partners, as well as the practical implementation of the law, will likely determine how far its impact extends on the country’s domestic politics and foreign relations.
New restrictive laws in Georgia
