US suspends $95m aid to Georgia over foreign agent law

US suspends $95m aid to Georgia over foreign agent law
The Georgian Dream government clamped down hard on demonstrations over the law. / bne IntelliNews
By bne IntelliNews August 1, 2024

The United States has halted $95mn in aid to Georgia following the recent adoption of legislation resembling a Russian law used to stifle political dissent, which has also prompted mass protests inside the country. US Secretary of State Antony Blinken announced the suspension, citing "anti-democratic" actions by the Georgian government.

Blinken said that despite the suspension of aid directly benefiting the Georgian government, the US will continue to support programmes that promote democracy, the rule of law, independent media and economic development in Georgia. "We will remain committed to the Georgian people and their Euro-Atlantic aspirations," he said, the Guardian reported, highlighting that the US has provided over $6.2bn in assistance to Georgia since its independence from the Soviet Union.

The controversial legislation, passed by the Georgian parliament in May, mandates media and non-governmental organisations receiving more than 20% of their funding from abroad to register as "pursuing the interests of a foreign power".

Critics argue that this law closely mirrors Kremlin tactics used to suppress opposition and threatens Georgia's aspirations to join the EU. The EU has in effect frozen Georgia's negotiations to join the EU before they had even officially begun.

The law has also been challenged at the country's Constitutional Court by opposition parties, NGOs, media and the independent President Salome Zourabichvili.

US State Department Principal Deputy Spokesman Vedant Patel described US-Georgia relations as being at a "uniquely challenging moment". He called for the Georgian Dream government to repeal the foreign agents' law, withdraw other problematic legislation, end its disinformation campaign, and ensure free and fair elections. Patel stressed the need for Georgia to return to the path of democracy and Euro-Atlantic integration, consistent with receiving US support as a democratic partner.

Patel also noted that the US remains dedicated to the Georgian people's aspirations and will continue to support programmes that benefit them by strengthening democracy, the rule of law, independent media and economic development. He clarified that while aid to the government would be paused, some resources might be redirected to non-governmental entities within specific sectors.

Senator Ben Cardin, Chair of the US Senate Foreign Relations Committee, issued a statement supporting the suspension of aid. He described the Biden-Harris administration's decision as a necessary response to Georgia's democratic backsliding, particularly the enactment of the foreign agents law and the crackdown on peaceful protesters. Cardin said that suspending aid demonstrates the US commitment to standing with the Georgian people and supporting their democratic aspirations.

Earlier, the Helsinki Commission leaders urged the Biden administration to impose sanctions on billionaire Bidzina Ivanishvili, a former premier and founder of the Georgian Dream party. The letter, signed by several US representatives, called for immediate and decisive action against the increasingly authoritarian government in Tbilisi. It highlighted the role of scam call centres in sustaining corrupt activities and influencing Georgian Dream's operations.

The letter suggested that implementing individual financial sanctions and disrupting these networks would complement the Mobilizing and Enhancing Georgia's Options for Building Accountability, Resilience, and Independence (MEGOBARI) Act. The US representatives argued that such measures would help protect the Georgian population and support the country's democratic integrity.

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