The ruling party Georgian Dream has introduced a legislative package in the Parliament that expands the definition of “grant” in connection with political activity. According to the explanatory note to the draft law on grants, a grant is now defined as funds or in-kind contributions provided by another state, a foreign citizen, or a legal entity to a Georgian citizen or a legal entity registered in Georgia, if these resources are used, or could be used, with the intent to influence the Georgian government, state institutions, or any part of society, or to shape, implement, or change Georgia’s domestic or foreign policy. Grants may also originate from the political or public interests, approaches, or relationships of a foreign government or foreign political party.
The draft law further clarifies that the following are also considered grants:
- Funds or in-kind contributions provided in exchange for technical assistance, sharing of specialized knowledge, expertise, skills, or other forms of support;
- Technical assistance provided free of charge, including sharing of technologies, skills, expertise, or services;
- Funds provided by a foreign legal entity to its branch, representative office, or department registered in Georgia (excluding cases where the funds are used for commercial business purposes). If such a branch receives a grant without approval, it will face administrative liability in the form of a fine equal to twice the amount of the illegally received grant.
The law also introduces the concept of a “sham grant.” According to the draft, receiving or using funds that are, by their nature, a grant—but are provided through a fictitious or deceptive transaction—will be punishable by a fine, 300–500 hours of community service, or imprisonment of up to six years.
The draft law extends these rules to foreign citizens and legal entities who transfer money, securities, property, or other advantages to Georgian citizens or entities in exchange for activities on political matters related to Georgia. Under the law, such transfers without approval may result in fines, community service, or up to six years of imprisonment.
As a result, foreign-registered entities whose primary activities involve political issues related to Georgia must obtain prior approval from the Georgian government or an authorized official before receiving grants. The explanatory note to the draft highlights cases in which Georgian citizens, legal entities, or foreign individuals pay foreign entities in exchange for engaging in activities that could violate Georgia’s sovereignty.
The draft has been submitted to the relevant legal committees for review, with the initiative and authorship attributed to the Georgian Dream parliamentary faction.
