Georgia’s Controversial Foreign Agent Law Sparks Protests and Presidential Veto Threat

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Mayur Joshi
Mayur Joshihttp://www.mayurjoshi.com
Mayur Joshi is a contributing editor to Regtechtimes, he is recognized for his insightful reporting and analysis on financial crimes, particularly in the realms of espionage and sanctions. Mayur's expertise extends globally, with a notable focus on the sanctions imposed by OFAC, as well as those from the US, UK, and Australia. He is also regular contributor on Geopolitical subjects and have been writing about China. He has authored seven books on financial crimes and compliance, solidifying his reputation as a thought leader in the industry. One of his significant contributions is designing India's first certification program in Anti-Money Laundering, highlighting his commitment to enhancing AML practices. His book on global sanctions further underscores his deep knowledge and influence in the field of regtech.
Georgia’s parliament recently passed a law known as the “foreign agent” law, leading to widespread protests in the country. Critics of the bill, also called the “Russia law,” fear that it could be used to suppress civil liberties. Despite the parliament’s approval, Georgia’s president is expected to veto the law, but the parliament can override this decision with an additional vote. The passing of this law is considered to be the emergence of a new Russian ally. European Union has threatened Georgia to freeze their candidate application.

Impact of Foreign Agent Bill on NGOs and Media Outlets

The new law in Georgia requires non-governmental organizations (NGOs) and independent media outlets to register as organizations representing foreign interests if they receive more than 20% of their funding from foreign sources. This means that these entities would be classified as operating on behalf of a foreign power and would be subject to stricter regulations and monitoring by the Justice Ministry. Failure to comply with these regulations could result in heavy fines imposed on these organizations.

Concerns and Comparisons

Protesters worry that the law could be used by the government to silence dissenting voices. The Guardian said the so-called Russian law has “echoes of legislation” Russian President Vladimir Putin pushed through in 2012, widely regarded as a tool to silence critics. It requires media and nongovernmental organizations to detail significant foreign funding. Prime Minister Irakli Kobakhidze warned that Georgia could suffer the same fate as Ukraine if the authorities do not enforce the law.

Protests and Political Tensions

Protesters clashed with police outside the parliament building, leading to several arrests. Inside, tensions ran high between pro-government and opposition members. Despite President Salome Zourabichvili’s intention to veto the law, the ruling Georgian Dream party is likely to overrule her. The ruling party has the majority in parliament to pass the Foreign Agent Bill into law.
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International Reactions

In December 2023, the European Union granted Georgia, the former Soviet state EU candidate status, “raising the hopes” of 80% of Georgians who consistently tell pollsters they want their nation to join the European Union.

The European Union (EU) has expressed concern over the law, warning that it could jeopardize Georgia’s progress towards EU membership. The White House has also threatened to reassess its relationship with Georgia if the law is enforced.
U.S. Assistant Secretary of State Jim O’Brien warned top Georgian government officials about sanctions. He also mentioned that other potential consequences should the controversial foreign agents law be enacted. This has already impacted the share prices of the two listed Georgian banks in London.
UK Minister for Europe Nusrat Ghani described the scenes in Georgia as “shocking.” Foreign Agent law is a draconian law.

Future Outlook

Protests against the law are expected to continue, with many Georgians seeing the upcoming parliamentary election as an opportunity to vote out the ruling party. The bill’s passage has sparked fears among the Georgian people, with many viewing it as a threat to the country’s democratic values and future.
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