EBRD Warns Against Georgia’s ‘Foreign Agents’ Law Amidst Investor Concerns

The controversial draft “foreign agents” law in Georgia has raised concerns among investors and the European Bank for Reconstruction and Development (EBRD). EBRD President Odile Renaud-Basso has warned that the proposed legislation, which requires organizations that receive more than 20% of their funding from abroad to register as agents of foreign influence, could have negative effects on Georgia’s economy and investor confidence.

The draft legislation has led to protests in Georgia, and both Brussels and Washington have urged Tbilisi to reconsider the law to avoid damaging its chances of European Union membership and a closer Euro-Atlantic integration. Renaud-Basso expressed surprise at the law’s reemergence and concerns about its potential impact.

Georgia has seen economic benefits from implementing reforms in the past, but the current tensions surrounding the draft law could discourage private sector investment in the country. Renaud-Basso highlighted the need for dialogue with their partners to address these concerns and mitigate any negative economic consequences. The EBRD’s annual meetings are set to begin in Armenia on May 14.