During a press conference prior to the European Bank for Reconstruction and Development’s (EBRD) annual meetings in Armenia, President Odile Renaud-Basso expressed her concerns about Georgia’s proposed “foreign agents” law. The bill, which is currently being debated in the Georgian parliament, would require organizations receiving more than 20% of their funding from abroad to register as agents of foreign influence. Critics view this requirement as authoritarian and influenced by Moscow.
The draft legislation has sparked protests in Georgia, with both Brussels and Washington urging Tbilisi to abandon the law. They warned that implementing the law could harm Georgia’s chances of joining the European Union and a broader Euro-Atlantic future. Renaud-Basso emphasized that Georgia has made significant economic progress through positive reforms, but the tension surrounding the draft law could have a negative impact on the private sector and discourage investment in the country.
Alkis Vryenios Drakinos, EBRD’s regional director for the Caucasus, acknowledged that the investment climate had not yet changed due to the draft law. However, he cautioned that it poses a significant threat to what was expected to be a strong year for EBRD investments in Georgia. Despite concerns, Drakinos highlighted ongoing projects in banking and public sectors as well as a planned investment in private sector wind project later this year.
To date, EBRD has invested 5.16 billion euros in Georgia, with around half of that going towards private sector projects. The current portfolio of projects in the country stands at 1.11 billion euros. The uncertainty surrounding the proposed law has raised concerns about its impact on Georgia’s economy and investor confidence, highlighting potential risks associated with legislation.
Overall, while President Renaud-Basso expressed concern over Georgia’s proposed “foreign agents” law, she also emphasized that EBRD will continue to support positive reform progress in Georgia while encouraging Tbilisi to address its concerns about foreign interference.