During a press conference prior to the European Bank for Reconstruction and Development’s (EBRD) annual meetings in Armenia, EBRD President Odile Renaud-Basso expressed her concerns about Georgia’s proposed “foreign agents” law. The draft legislation, which is currently being debated in the Georgian parliament, would require organizations that receive more than 20% of their funding from abroad to register as agents of foreign influence. Critics argue that this requirement is authoritarian and influenced by the Kremlin.
The controversy surrounding the draft bill has sparked protests in Georgia, with both Brussels and Washington urging Tbilisi to abandon it. 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 in recent years but that the tension around the proposed law could negatively impact the private sector and deter investment in the country.
Alkis Vryenios Drakinos, EBRD regional director for the Caucasus, acknowledged that while the investment climate had not yet changed due to the draft law, it posed a significant threat to what was otherwise expected to be a strong year for EBRD investments in Georgia. Despite his concerns, Drakinos highlighted ongoing projects in the banking sector, recent public sector projects, and a planned investment in a 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 stands at 1.11 billion euros. The uncertainty surrounding this proposed legislation has raised concerns about its impact on Georgia’s economy and investor confidence, highlighting potential risks associated with it.
In conclusion, while EBRD acknowledges ongoing projects in Georgia despite concerns about the draft “foreign agents” law, there is no denying its potential impact on investor confidence and overall economic growth if implemented.
It’s worth noting that during these annual meetings of EBRD held in Armenia’s capital Yerevan; President Renaud-Basso also addressed other issues affecting Europe such as migration policy and energy efficiency standards for buildings among others.