The impact of Georgia’s ‘foreign influence’ law

Georgia is a small country in the Caucasus region whose development is watched closely because of its geopolitical importance to both Russia and the West.

Recent political developments

The Georgian Dream party has been in power since 2012 and currently holds a majority in Parliament. Georgian Dream-endorsed candidates have also held the Presidency since 2013, although President Salome Zourabachvili has been increasingly at odds with the ruling party in the last few years.

There are longstanding concerns over the willingness of those in power to accept genuine democratic competition. Questions are also asked about Bidzina Ivanishvili, the billionaire backer and founder of the Georgian Dream Party, and former Prime Minster. Despite not always having a formal political position, Ivanishvili is considered to wield significant power behind the scenes of the Georgian Dream party, and is often described as Georgia’s “de facto leader” and as having pro-Russian sympathies.

The last few years have been characterised by civil unrest and anti-government protests as the Government has attempted to tread a fine line between its aspirations to join the EU, which is supported by much of the population, and increasing rapprochement with Russia.

Return of Ivanishvili

At the end of 2023, Bidzina Ivanishvili was elected as Honorary Chair of Georgian Dream in an unscheduled party congress. A newly created post, the role of Honorary Chair allows Ivanishvili a semi-formal political role, one which he describes as being “forced to take” to provide stability and “a new centre of gravity” to the ruling party.

In early 2024 then Prime Minister Irakli Garibashvili also resigned and was replaced by Georgian Dream party Chairman Irakli Kobakhidze. Critics of the ruling party accused Ivanishvili of “reshuffling his pack to tighten his grip on power as elections approach”. Kobakhidze is regarded as a divisive figure having previously demonstrated pro-Russian sympathies.

Introduction of a ‘foreign influence’ law

In April 2024 Georgian Dream introduced its Draft Law on Transparency of Foreign Influence (PDF) which will require nongovernmental organisations and print, online and broadcast media that receive more than 20% of their annual revenue from “a foreign power” to register with the Ministry of Justice as “organisations serving the interests of a foreign power”. A previous attempt to introduce the bill was made in March 2023, although the government later withdrew it after two days of mass protests and international criticism.

Bidzina Ivanishvili and Prime Minister Kobakhidze have been vocal supporters of the law (also referred to as the ‘foreign agents’ law), calling it necessary for strengthening the sovereignty of Georgia and for putting an end to radicalism and the polarisation of the country artificially imposed from abroad.

Opponents often refer to it, however, as the “Russia law” being similar to a law introduced in Russia in 2012, and expanded in 2022, that has been used to take action against Russian civil society and increasingly silence domestic dissent. They argue that the new law will be used by the government to silence opposition parties and voices ahead of the parliamentary elections in October 2024 and is intended to derail Georgia’s aspiration to join the EU.

President Zourabichvili vetoed the bill but was subsequently overruled by a further vote in Parliament. The Speaker of the Georgian Parliament signed the bill into law on 3 June 2024 and it entered into force at the beginning of August.

Demonstrations against the law, involving tens of thousands of protesters, continued for nearly two months and were increasingly met with excessive force by the Georgian security forces.

Several opposition parties collectively announced a boycott of Parliament.

International reaction

The UN, the EU, NATO and several countries including the UK and the United States, along with human rights organisations have all condemned the latest legislation, suggesting that it is a step in the wrong direction for Georgia and takes the country further away from its Euro-Atlantic aspirations.

The US has imposed sanctions on individuals associated with undermining democracy in Georgia and announced a review of its future relationship with the country.

The EU has also said that passage of the legislation is contrary to EU core norms and values and would “negatively impact Georgia’s EU path. At the European Council meeting in June 2024, EU leaders indicated that Georgia’s EU candidacy was on hold (PDF) unless the Georgian government changed course. EU military assistance to the country has been suspended and broader EU financial aid is under review. Germany and France have announced the suspension of bilateral aid to the country.

What next: legislative elections, 26 October 2024

The Georgian government has given no indication that it intends to change course, despite domestic and international pressure to do so. Observers are now looking to the legislative elections which will be held on 26 October 2024 and whether, as feared, the new law on transparency will be used to silence domestic dissent.

The election has been widely portrayed as a referendum on Georgia’s future and its commitment to a pro-European path and several opposition parties have said that they will work together to provide a pro-European platform. At the end of May 2024, 17 opposition parties and five independent MPs signed a Charter, proposed by President Zourabichvili, that aims to “rebuild trust and forge a new political reality”, ahead of the elections.

In the meantime, President Zourabichvili has lodged an appeal with Georgia’s Constitutional Court calling for the foreign influence law to be overturned on the basis that it contravenes the obligations in the constitution to seek greater Euro-Atlantic integration. In early October the court ruled that certain parts of the appeal warranted further examination but rejected a request for the law to be suspended pending a final ruling.