EU may suspend financial aid to Georgia due to new "foreign agents" law

The European Union has expressed concern over the implementation of the "foreign agents" law in Georgia.

EU High Representative spokesperson Peter Stano stated that the controversial measure, initiated and passed by the "Georgian Dream" party amid mass protests, represents "a step backward" in the country's European integration efforts. Stano indicated that this could lead to a suspension of financial aid to the Georgian government, Caliber.Az reports, citing foreign media.

"We are considering the possibility of suspending our financial assistance to the Georgian government," Peter Stano stated, noting that the EU has already frozen €30 million earmarked for the country's defence sector under the "European Peace Facility."

The "Law on Transparency of Foreign Influence" came into full effect in Georgia on August 1. Georgian Minister of Justice Rati Bregadze had previously announced that NGOs and media outlets could apply for registration as "conductors of foreign interests."

According to the law, this obligation applies to NGOs and media outlets that received more than 20 per cent of their funding from foreign sources in 2023. They must apply to the National Agency of Public Registry within a month.

Many organizations affected by the law have declared their refusal to register as "foreign agents" and have announced their intention to use all legal means available.

Following the law's adoption, parts of the assistance from the European Union and the United States to Georgia were indefinitely frozen. Western diplomats and politicians have stated that Georgia's EU membership process is effectively on hold.