A comprehensive package of legislative amendments related to grants and political activity has been initiated in Parliament and referred to relevant committees for consideration. The draft legislation, authored by the parliamentary faction of Georgian Dream, proposes changes to seven separate laws.
The substance of the legislative package was presented on January 28 by Georgian Dream faction chair Irakli Kirtskhalia following a majority faction meeting.
Expanded Definition of Grants
Amendments to the Law on Grants significantly broaden the definition of what constitutes a grant. Under the proposed changes, a grant will include any funds or resources—whether monetary or in kind—provided by any person to another person, if such resources are used or may be used with the intent or belief that they could influence the Georgian government, state institutions, or society at large. This includes activities aimed at shaping, implementing, or altering Georgia’s domestic or foreign policy, as well as actions stemming from the political or public interests of a foreign government or political party.
Receipt of such grants will require prior approval from the Government of Georgia.
Foreign Entities and Approval Requirements
The draft law introduces the concept of a legal entity of another state whose activities are substantially connected to Georgia. Organizations registered abroad but operating mainly in Georgia will be required to obtain government approval before receiving any grant funding. Failure to do so would result in criminal liability.
Funds provided in exchange for technical assistance—such as technology transfer, expert services, skills sharing, or consultancy—will also be classified as grants. Authors say even hiring experts in Georgia by a foreign actor would fall under this definition and require government consent.
If a non-resident legal entity’s branch, representative office, or division receives a grant, including funding from its parent organization, prior government approval will likewise be mandatory. Receiving such funding without consent will trigger administrative liability in the form of a fine equal to double the value of the unlawfully received grant.
Criminal Liability and Stricter Penalties
Amendments to the Criminal Code introduce criminal liability for violations of the Law on Grants. Penalties include a fine, 300–500 hours of community service, or imprisonment for up to six years.
An aggravating circumstance is added to Article 194 of the Criminal Code, establishing that laundering money for the purpose of engaging in political activity in Georgia will carry a prison sentence of 9 to 12 years.
Leaders of political parties who violate the Organic Law on Political Associations of Citizens by receiving foreign funding will also face criminal liability, with penalties mirroring those outlined above.
Criminalization of Foreign Lobbying
The draft legislation criminalizes foreign lobbying related to Georgian political issues. Providing money, securities, property, material benefits, or any other advantage—directly or indirectly—to a foreign citizen or legal entity in exchange for political activity related to Georgia will be punishable by a fine, community service of 300–500 hours, or imprisonment for up to six years.
Political Party Membership Restrictions
Changes to the Organic Law on Political Associations of Citizens introduce new restrictions on party membership. Individuals employed under labor contracts by organizations that receive more than 20% of their annual income from foreign sources will be barred from joining political parties for a period of eight years.
The State Audit Office will be tasked with monitoring the financial activities of political party members.
The term “declared electoral goal” will be replaced with “declared party-political goal,” a change intended to broaden legal scope and improve enforcement. All existing restrictions applicable to political parties will also extend to entities with declared party-political goals. In cases involving foreign funding, criminal liability will apply both to party leaders and to such entities.
Business Entities and Political Activity
The draft law also introduces new administrative penalties for business entities engaged in public political activity unrelated to their primary commercial operations. Under the proposed changes, the State Audit Office will impose a fine of 20,000 GEL for a first offense and 40,000 GEL for repeated violations.
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