In a media briefing ahead of the upcoming annual meetings in Armenia, European Bank for Reconstruction and Development (EBRD) President Odile Renaud-Basso expressed her concerns over the draft “foreign agents” law in Georgia. This legislation, currently making its way through parliament, would require organizations receiving more than 20% of their funding from abroad to register as agents of foreign influence.
The EBRD’s regional director for the Caucasus, Alkis Vryenios Drakinos, also weighed in on the issue during the briefing. He noted that while the investment climate has not yet changed, the draft law poses a threat to what could otherwise be a strong year for the bank’s investments in Georgia. Despite this concern, Vryenios emphasized that the EBRD has been active in Georgia with projects totaling over 100 million euros across various sectors such as banking, public sector and private sector investments.
Renaud-Basso emphasized that Georgia has seen economic benefits from reform progress. However, she also warned that tensions surrounding this legislation could impact the private sector and investment climate in Georgia, potentially deterring foreign investors. She urged Tbilisi to abandon the law in order to avoid damaging its chances of European Union membership and a broader Euro-Atlantic future. Brussels and Washington have advised Tbilisi to abandon the legislation for similar reasons.
The potential implications of this draft law on Georgia’s economy and investor confidence are being closely monitored by the EBRD and its partners. The lender has invested approximately 5.16 billion euros in Georgia so far, with about half of it going towards private sector projects. According to its website, this current portfolio amounts to 1.11 billion euros across various sectors such as banking, public sector and private sector investments
