GD Announces New Restrictions on Receiving Grants, Party Membership, ‘External Lobbying’

2026-01-28 - 18:23

The ruling Georgian Dream party has announced a new series of repressive legislation, extending the scope of “grants” that require government approval, introducing jail sentences for grants-related violations and for leaders of parties receiving foreign funding, criminalizing “external lobbying,” and announcing new restrictions for political party members and entrepreneurs. The proposed changes were announced by Georgian Dream’s parliamentary majority leader Irakli Kirtskhalia late on January 28 and are set to be adopted after the disputed parliament returns for a spring session on February 3. They follow an earlier series of repressive legislation targeting media, civil society, and political opposition. The changes would, among other things, require government approval for foreign organizations seeking to provide grants to their own local branches, for foreign-registered entities engaged in activities related to Georgia, and for foreign actors hiring experts in Georgia. Those breaching the provisions of the Law on Grants will face criminal liability of up to 6 years in jail. The amendments to the Law on Political Associations will prohibit individuals employed by foreign-funded entities from holding membership in a political party for eight years. Additionally, Georgian Dream introduces substantial administrative fines for entrepreneurial entities “engaging in public political activity unrelated to their core business operations,” as well as prison sentences for those conducting lobbying abroad on matters related to Georgia. Changes to the Law on Grants The proposed changes to the controversial Grants Law, which already foresees mandatory government approval for donors prior to disbursing local grants, include: The definition of “grant” which will need government approval is extended to include “Any funds transferred by any person to any person, in monetary or natural form, that are used or may be used for activities carried out or to be carried out with the belief or intent of exerting any influence on the Government of Georgia, state institutions, or any part of society, that are directed toward the formulation, implementation, or alteration of Georgia’s domestic or foreign policy, as well as used or may be used for activities arising from the political or public interests, approaches, or relations of a foreign government or a foreign political party.” The law introduces a concept of “a legal entity of another state whose activities substantially involve engagement with issues related to Georgia,” and allows such entities to receive grants only upon the government’s approval. “For example, an organization registered abroad but carrying out activities substantially in Georgia would be required to apply to the Government of Georgia in order to receive funding,” Kirtskhalia said, warning of criminal liability for those who do not comply. Funds transferred in monetary or in-kind form shall also be considered a grant if, in return, “the grant recipient provides technical assistance in the form of sharing technologies, specialized knowledge, skills, expertise, through services and/or other types of assistance.” According to Kirtskhalia, if a “foreign power” hires experts in Georgia in exchange for money, those funds will be regarded as a grant and require govenrment’s consent. If a “representation, branch, or subdivision of a non-resident legal entity” receives a grant, including from the legal entity of which it is a branch, that branch will also require the government’s approval. Failure to comply will result in an administrative fine in the amount of twice the value of the grant. Failure to comply with the provisions in the Law on Grants will result in criminal liability, with a punishment of a fine, community service for a term of 300 to 500 hours, or imprisonment for a term of up to 6 years. The Criminal Code will also entail an “aggravating circumstance” of money laundering “with the goal of carrying out activities on Georgia’s political issues,” punishable by a prison term of 9-12 years. New Restrictions for Party and Political Activities Per the announced changes, the leader of a political party that will receive foreign funding in violation of the Law on Political Associations will face criminal punishment of a fine, community service for a term of 300 to 500 hours, or imprisonment for up to 6 years. Also, changes to the Law on Political Associations will bar those who work for an organization “hose more than 20% of annual income is received from a foreign power” from membership in a political party for a period of eight years. In the same law, the term “having declared electoral objective” will be replaced by “declared party-political objective,” which, Kirtskhalia said, will ensure “substantive clarification, expansion of scope, and an increase of effectiveness” of legal regulation. According to him, the restrictions applying to political parties, including criminal liability on receiving foreign funding, will extend to the subjects “with declared party-political objectives.” Criminalising ‘External Lobbying’ Per announced changes, “direct or indirect transfer of money, securities, other property, property benefits, or any other advantage to a citizen or legal entity of another state in exchange for carrying out activities on political issues related to Georgia will entail a fine, community service for a term of 300 to 500 hours, or imprisonment for a term of up to 6 years.” Restrictions on Entrepreneurs Georgian Dream also introduces an administrative offense for entrepreneurial entities “engaging in public political activity that is not related to its core entrepreneurial activities.” The violation foresees a fine of 20,000 GEL, while a repeated offense will be subject to a fine of 40,000 GEL. The announced changes follow a series of repressive laws adopted by Georgian Dream-led parliament over the past two years, including the foreign agents law, a Georgian version of the Foreign Agents Registration Act (FARA), and amendments to the laws on Grants and Broadcasting. Dozens of civil society and media organizations have been subjected to inspections under these laws, with several key organizations suspending their activities under the repressive environment. More to follow...