Parliament, at first reading, considered and approved amendments to the Law “On Grants,” as well as other draft laws included in the legislative package, with 82 votes in favor and 10 against. Under the amendments, the definition of a grant is specified and expanded.

A grant shall also imply any funds transferred in monetary or in-kind form that are used, or may be used, with the belief or intent to influence the Government of Georgia, a state institution, or any segment of society, through activities carried out or to be carried out that are aimed at shaping, implementing, or changing Georgia’s domestic or foreign policy, as well as activities that derive from the political or public interests of a foreign government or a foreign political party.

“As presented, this initiative is a continuation of the legislative changes that the Parliament of Georgia has already adopted on several occasions, the primary objective of which is to ensure a high level of protection of our country’s sovereignty,” - stated the reporter, Chair of the Legal Affairs Committee Archil Gorduladze.

According to him, an organization registered abroad whose substantial activities relate to Georgia or issues connected with Georgia will be obliged, in accordance with the Law on Grants, to obtain the Government’s consent prior to receiving a grant.

“If an organization is substantially engaged in activities related to Georgia, regardless of whether it is registered in Georgia in accordance with Georgian legislation or in another country, it will be obliged—based on the nature of its activities—to obtain the consent of the Government of Georgia before receiving a grant. Such consent will be granted provided there are no risks to the country’s sovereignty,” - the Committee Chair stated.

He further explained that a grant shall also imply the transfer of funds or material and technical resources by another state, a citizen of another state, or a legal entity to a citizen of Georgia or a person holding residence status in Georgia, where such transfer aims to influence society or a part thereof and is directed toward shaping, implementing, or changing policy.

As Archil Gorduladze noted, branches and representative offices of foreign foundations operating in Georgia will also be obliged to apply to the Government of Georgia before receiving funds from their parent organizations.


“This does not apply to entrepreneurial entities, but it does apply to organizations that are substantially engaged, including in the financing of political activities,” - he stated.

As per his elucidation, the draft law includes a transitional provision stipulating that if a grant was issued prior to the law’s entry into force—including to persons who were not previously subject to the requirement of obtaining government consent—and the funds have not yet been spent, the recipient will be required to obtain the consent of the Government of Georgia within one month of the law’s entry into force.

The reporter also noted that amendments are introduced to the Criminal Code. Specifically, Article 194 (money laundering) is supplemented with a new aggravating circumstance—money laundering carried out for the purpose of engaging in political activities related to Georgia—which will be punishable by imprisonment for a term of 9 to 12 years.

In addition, new provisions are added under which violation of the procedures established by the Law on Grants—namely, receiving and using a grant without government consent—will result in criminal liability in the form of a fine, community service for a term of 300 to 500 hours, or imprisonment for up to 6 years.

Under the draft law, funds paid for lobbying or political activities abroad will also entail criminal liability. According to the amendments, failure by an entity with a political-party objective to submit a declaration, the intentional submission of incomplete or incorrect information in a declaration, or failure to rectify deficiencies in a declaration within the timeframe established by Georgian legislation shall be punishable by a fine or community service for a term of 120 to 200 hours, as well as deprivation of the right to hold office or engage in certain activities for up to three years.

The amendments further clarify the concept of a political-party objective. Individuals or legal entities that have a declared political-party objective will be subject to the same regulations as political parties, including the prohibition on receiving income from abroad, the prohibition on donations from legal entities, and the obligation to declare income within the timeframe established by law. Under the planned amendments to the Organic Law of Georgia “On Citizens’ Political Unions,” a person who is employed under a labor contract by an organization that receives more than 20 percent of its annual income from a foreign power will be prohibited from membership in a political party for a period of eight years.

The financial activities of political party members will be monitored by the State Audit Office.

The legislative package also establishes a new offense for an entrepreneurial entity carrying out public political activities that are not related to its core entrepreneurial activity.

​As stated by Archil Gorduladze, commission of such an act for the first time will result in administrative liability, while repeated commission and each subsequent offense will entail criminal liability.