The ruling Georgian Dream party has announced a new package of legislative amendments aimed at tightening regulations on foreign funding, political activity, and lobbying in Georgia.
The proposed changes were presented on January 28 following a meeting of the parliamentary majority held at Georgian Dream’s headquarters. The meeting was attended by the party’s chairman, Irakli Kobakhidze. After the session, the legislative initiative was outlined by the parliamentary majority leader, Irakli Kirtskhalia.
Kirtskhalia said the amendments are intended to eliminate what the ruling party describes as remaining legal loopholes that could allow foreign funding to be used to influence political processes in Georgia.
“At this stage, financing unrest, violence, or revolutionary processes in Georgia from abroad has become significantly more difficult. However, in practice, we still see certain mechanisms and ways to bypass existing laws. If left unaddressed, these could jeopardize the peace, stability, economic progress, and prosperity that our country has preserved through great effort,” Kirtskhalia stated.
“This is why we are introducing legislative changes—to ensure that no alternative mechanisms exist for financing disorder or violence in Georgia from outside the country in the future,” he added.
Amendments to the Law on Grants
One of the key components of the legislative package concerns amendments to Georgia’s Law on Grants. The proposed changes expand the definition of a grant to include any transfer of funds or in-kind resources, from any individual or legal entity to another, if such resources are intended—or may be intended—to influence Georgia’s authorities, state institutions, or any segment of society in matters related to domestic or foreign policy.
Under the draft legislation, receiving such a grant would require prior approval from the Government of Georgia.
The amendments also introduce a definition of a foreign legal entity whose activities are substantially connected to Georgia. Such entities would likewise be required to obtain government consent before receiving grant funding. For example, an organization registered abroad but primarily operating in Georgia would need prior government approval to receive funding. Failure to do so would result in criminal liability.
Additionally, the definition of a grant would explicitly include funding provided in exchange for technical assistance such as the transfer of technologies, expertise, specialized knowledge, skills, consulting services, or other forms of support. Based on the proposal, if a foreign actor hires experts in Georgia in exchange for payment, such funding would be classified as a grant and would require government authorization.
The draft law further stipulates that branches or representative offices of non-resident legal entities—including those receiving funding from their parent organizations—must obtain prior government consent to receive grants. Unauthorized receipt would result in administrative liability, including fines amounting to double the value of the unlawfully received grant.
Criminal Code Amendments
The legislative package also proposes amendments to the Criminal Code of Georgia. Violations of the Law on Grants would become subject to criminal liability punishable by a fine, community service ranging from 300 to 500 hours, or imprisonment for up to six years.
An aggravating circumstance would be added to Article 194 of the Criminal Code, under which money laundering conducted to finance political activities related to Georgia would be punishable by nine to twelve years of imprisonment.
The amendments also introduce criminal liability for senior officials of political parties who violate the Organic Law on Citizens’ Political Associations by accepting foreign funding. Such violations would be punishable by a fine, community service, or imprisonment of up to six years.
In addition, foreign lobbying activities would become a criminal offense. Specifically, transferring money, securities, property, or other benefits—directly or indirectly—to a foreign citizen or legal entity in exchange for political activity related to Georgia would carry criminal penalties similar to those outlined above.
Changes Related to Political Party Membership
Amendments to the Organic Law on Citizens’ Political Associations would introduce new restrictions on political party membership. Under the proposed rules, individuals employed under a labor contract by an organization that receives more than 20% of its annual income from foreign sources would be prohibited from holding political party membership for eight years.
The State Audit Office would be tasked with monitoring the financial activities of political party members.
The term “entity with a declared electoral purpose” would be replaced with “entity with a declared party-political purpose,” and restrictions currently applicable to political parties would also apply to such entities. Criminal liability would be introduced for party leaders and declared party-political entities in cases involving foreign funding.
Restrictions on Political Activity by Business Entities
The legislative package also includes amendments to the Administrative Offenses Code, introducing a new offense related to public political activity by business entities that is unrelated to their primary commercial activities.
In such cases, the State Audit Office would impose an administrative fine of GEL 20,000, with repeat violations carrying fines of GEL 40,000 for each subsequent offense.
EU High Representative for Foreign Affairs and Security Policy Kaja Kallas said the European Union may consider taking action in response to the legislative changes planned by Georgia’s ruling party.
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