During a media briefing ahead of the European Bank for Reconstruction and Development’s (EBRD) annual meetings in Armenia, EBRD President Odile Renaud-Basso expressed her concerns about Georgia’s draft “foreign agents” law. The law, which is currently making its way through 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 the Kremlin.

The draft legislation has led to 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 European Union membership and a broader Euro-Atlantic future. Renaud-Basso emphasized that Georgia has benefited economically from making positive reform progress, but the tension surrounding the draft law could impact the private sector and deter 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 highlighted the potential threat it poses to what was otherwise projected to be a strong year for the bank’s investments in Georgia. Despite the concerns, Drakinos mentioned ongoing projects in the banking sector, recent public sector projects, and a planned investment in a private sector wind project later in the year.

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