Georgia’s disputed parliament adopted new exemptions to the controversial Law on Grants, stipulating that diplomatic and international organization missions, as well as the Georgian Red Cross Society and financial and credit institutions, are not required to obtain government approval to disburse grants to local organizations. The amendments were adopted in the third and final reading on April 15, after two days of deliberations under an accelerated procedure.
The amendments follow a restrictive package adopted by the disputed parliament on March 4, which, among other changes, significantly broadened the definition of a foreign “grant” requiring government approval to include any monetary or in-kind support from a foreign organization or individual to local entities.
Under the new version, funds disbursed by diplomatic missions, consular offices, and international organizations that are “used or may be used for activities arising from the political or public interests, approaches, or relations of a foreign government or a foreign political party” will not be considered grants requiring government approval, provided they are used for the entities’ “own activities.”
In addition, the new version of the law exempts the Georgian Red Cross Society and its grants, as well as grants issued by financial and credit institutions, from the requirement to obtain government consent. The amendment was approved during the second reading in the disputed parliament’s Legal Issues Committee on April 15.
Archil Gorduladze, the committee chair, said regarding the financial and credit institutions that grants issued by the World Bank, for example, would be deemed exempt, noting that they are “usually always accompanying grants linked to loan agreements” and therefore would not require government approval.
Exemptions already applied to grants issued by international sports organizations, individual funding for education and research received abroad, and programs such as the EU’s “Horizon Europe” and Erasmus+, as well as grants from the German Academic Exchange Service (DAAD) and the EU–Georgia “Creative Europe” program.
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