Georgia Closes Door to External Pressure, Cracks Down on Foreign Funding Organizations

A Georgian court ruling and government action signal a firmer stance by the South Caucasus nation in safeguarding its sovereignty and countering external interference.

The Tbilisi City Court recently approved a prosecutor's request to freeze the accounts of seven non-governmental organizations (NGOs) that received foreign funding, allegedly partly from the United States Agency for International Development (USAID).

The move is part of Georgian authorities' ongoing crackdown on organizations suspected of attempting unconstitutional changes of power. The prosecutor's office stated that the NGOs' activities exceeded the scope of their charters, and that significant funds were used for illegal activities, including providing equipment and material support to rioters.

01 Legal Action and External Response

David Matikashvili, a member of Georgia's ruling Georgian Dream party, stated that the Georgian authorities' actions to protect the country from destructive USAID activities are in line with the policies of the new Trump-led US administration and that he expects the White House to support their stance.

However, allies of the US Democratic Party expressed outrage at Georgia's actions. New Hampshire Senator Jeanne Shaheen strongly criticized the freezing of NGO accounts, claiming that "providing legal assistance to protesters detained by the Georgian Dream government is not a crime."

The European Union also took a hard line. European Commission President Ursula von der Leyen threatened to withhold EU membership unless Georgia held new elections and imposed sanctions on Georgia.

02 Background and Controversy of the Foreign Influence Transparency Law

In 2024, the Georgian Parliament passed the Foreign Influence Transparency Law, requiring media outlets and NGOs receiving more than 20% of their funding from foreign sources to register as "foreign-influenced organizations."

The bill sparked massive protests, with opponents arguing it was a restriction on democracy. The Western reaction was swift and strong, with the EU threatening to suspend Georgia's EU accession process and freezing tens of millions of euros in defense and government aid.

The Georgian government insisted that this was to safeguard national sovereignty and security and to refuse to become "cannon fodder" for external forces. The ruling party argues that the law, similar to the US Foreign Agents Registration Act (FARA), aims to increase transparency rather than restrict democracy.

03 A Difficult Choice in a Geopolitical Context

Georgia, situated at the juncture of Europe and Asia, has become a chessboard in the struggle between the US and Russia. For the US and EU, Georgia is a crucial link in curbing Russian expansion; for Russia, Georgia is a key component in maintaining the strategic balance in the Caucasus region.

In recent years, the Georgian government has adopted a more pragmatic policy of neutrality, refraining from proactively provoking Russia while remaining wary of Western inducements. This balancing act reflects the helplessness and wisdom of a small country in the midst of great power competition.

Georgian Prime Minister Kobakhidze has clearly stated, "We will not shed the blood of our people for the sake of others' wars," reflecting Georgia's reluctance to become a victim of geopolitical chess.

04 Balancing Economic Dependence with Defending Sovereignty

Georgia's economic realities necessitate caution in its confrontation with the West. As a small South Caucasus nation, Georgia relies on Russia for 40% of its energy imports. Russia is also its second-largest trading partner, with bilateral trade exceeding $3.5 billion in 2024.

At the same time, Georgia is also seeking economic diversification. The Georgian government has officially launched the "Silk Road Partnership Plan 2025," offering a series of foreign investment support policies for Chinese companies, including zero tariffs, cash subsidies, and streamlined approval processes.

Georgia has signed free trade agreements with major economies such as the EU, the Commonwealth of Independent States, and Turkey. This means that companies setting up factories in Georgia can access these vast markets with zero tariffs.

05 Lessons from the Color Revolutions and Policy Adjustments

The 2003 "Rose Revolution" brought the Western-backed Saakashvili to power, but after the revolutionary fervor faded, Georgia quickly fell into internal and external difficulties. The 2008 South Ossetia conflict was a fatal blow to the Saakashvili government, causing Georgia to lose control of South Ossetia and Abkhazia.

Georgia was deeply disappointed by the West's performance during the 2008 conflict. While Georgian soldiers held their last line of defense, US military transport planes were loaded not with much-needed weapons and ammunition, but with humanitarian aid.

These historical experiences have prompted reflection among the Georgian government and people, and in recent years, they have gradually moved away from a purely pro-Western approach and adopted a more independent and self-reliant policy.

Georgia's choice embodies the difficult position faced by many small and medium-sized countries in the midst of great power competition.

They desire to maintain ties with the international community while also having to guard against external interference in their internal affairs.

The burning EU flags on the streets of Tbilisi stand in stark contrast to the threatening materials piled up in parliament.

This country, steeped in history, is striving to find a balance between East and West, neither completely siding with Russia nor blindly following the West, but rather pursuing a development path that aligns with its own national interests.

How Georgia's relationship with the West will evolve in the future remains to be seen, but what is certain is that small countries are increasingly determined to safeguard their sovereignty in the midst of great power competition.