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“Western funds benefit Chinese state companies and Georgia’s authoritarian regime” – Talk Georgia with Giorgi Rukhadze

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Topics Discussed:
 
🟣  How Western Funds Are Benefiting Chinese State Companies and the Authoritarian Regime in Georgia
 
🟣 Why Western Money Still Flows to Georgia Despite Sanctions
 
🟣 Triangle of Money: IFIs, Corrupt Georgian Government, and Sanctioned Chinese Companies
 
🟣  How to Prevent Funding of Dictatorship
 
🟣  Status of Anaklia Deep Sea Port, Decreased U.S. Attention to Georgia, and Lost Opportunities
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Check out the podcast “Talk Georgia with Giorgi Rukhadze”

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“The Georgian Dream” Party Legalizes Dictatorship in Georgia

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“For any person, any person.”
“For any activity carried out or to be carried out with the belief or intention of exerting some influence.”

The measures announced by the Georgian Dream government yesterday go beyond a crackdown and put participation in public life an obsolete danger.

With a single legislative package, the ruling party moved to criminalize intent, association, expertise, and thought itself, placing virtually all civic, political, and intellectual life under prior state permission. The amendments unveiled on January 28 mark a decisive transition from competitive authoritarianism to an openly coercive system where the state claims the right to pre-approve who may think, organize, fund, speak, or belong.

The changes center on a significantly broadened definition of a “grant.” Under the new provisions, any transfer of funds or resources between individuals may be considered a criminal act if authorities believe it could influence government, institutions, policy, or any segment of society. This approach shifts from regulation to preemptive criminalization, targeting not only actions but also beliefs, intentions, and potential future outcomes.

The scope is deliberately boundless. Funding is criminalized not only when it is political, but when it is interpreted as political. Technical assistance, expertise, knowledge-sharing, professional services, or hiring Georgian experts by foreign entities are all reclassified as suspect “grants,” requiring government approval. Even foreign organizations funding their own Georgian branches are brought under this regime. Noncompliance carries prison sentences of up to six years; in cases framed as “money laundering related to political issues,” up to twelve.

At the same time, the amendments undermine political pluralism. Party leaders may face criminal prosecution for foreign funding violations. Individuals employed by organizations receiving more than 20% foreign funding are barred from party membership for eight years, effectively excluding many civil society professionals, researchers, journalists, and activists from political participation. 

The amendments also criminalize so-called “external lobbying.” Any exchange of resources connected, directly or indirectly, to advocacy on Georgia-related political issues abroad becomes a criminal offense. This effectively prohibits international advocacy, solidarity, and representation, legally isolating the country.

Businesses are also affected. Entrepreneurs who engage in public political activity unrelated to their core business may face significant fines, indicating that economic participation is now contingent on political neutrality.

Collectively, these measures do not seek to address abuses or enhance transparency. Instead, they are designed to suppress independent activity. Following three years of legal actions against media, NGOs, and the opposition, the government appears to be moving from managing dissent to eliminating the conditions necessary for dissent.

This legislation appears intended to instill fear rather than provide effective governance. It adopts elements of Russian-style repression and extends them through vague provisions, granting authorities broad discretionary power. When intent is criminalized and permission is required, freedom is no longer a guaranteed right but a conditional privilege. 

Yet the logic driving these laws betrays their failure. If free thought could be eliminated, it would not require prison terms. If civic commitment could be extinguished, it would not require criminal codes. Love of freedom does not disappear by statute. Neither does dedication to one’s country, nor the resolve to defend one’s beliefs.

As of today (January 29), the official text of the legislation has not yet been made public; the analysis above is based on the government’s announcement.

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Civic IDEA’s contribution referenced in the UN Universal Periodic Review of Georgia

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A report prepared jointly with partners, with contributions from Civic IDEA, has been formally referenced in the United Nations Universal Periodic Review (UPR) process as Joint Submission 1 (JS1). The Office of the UN High Commissioner for Human Rights reflected the report’s findings in its official summary of stakeholders’ information for Georgia’s review, placing civil society analysis within the international human rights assessment considered by UN member states.

The Universal Periodic Review (UPR) is a Human Rights Council mechanism that examines the human rights record of every UN member state, drawing on information from governments, civil society, and independent experts. The stakeholder summary referencing our joint submission reflects concerns related to:

  • Shrinking civic space and reported pressure on civil society organizations, journalists, and human rights defenders

  • Legislative changes affecting freedom of assembly, association, and public participation

  • Restrictions linked to laws regulating foreign funding, grants, and NGO operations

  • Allegations of excessive use of force against protesters and broader patterns of intimidation and legal pressure targeting activists

Civic IDEA will continue to monitor the UPR process as the outcome report is finalized and later adopted by the UN Human Rights Council, and remains engaged in documenting developments affecting civic space, rule of law, and the protection of fundamental rights in Georgia.

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CHINESE COMPANIES IN GEORGIA

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Civic IDEA presents a comprehensive report examining the activities of Chinese companies currently operating in Georgia and their partnerships with the “Georgian Dream” party

Since 2017, Civic IDEA has systematically monitored cooperation between Chinese companies and Georgian state institutions. This paper consolidates our key findings, drawing on both Georgia’s experience and relevant international cases; 

Alarming evidence shows that every single PRC company cooperating with Georgian Dream government has been implicated in at least one serious legal, financial, or ethical violation.

Read the Full Report

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“Europe’s Money, China’s Companies, Georgia’s Authoritarians: The Paradox Undermining Western Leverage” – Tinatin Khidasheli’s New Analysis with CEIAS

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Tinatin Khidasheli, Head of Civic IDEA, has published a new analytical article with CEIAS – Central European Institute of Asian Studies, examining a critical paradox shaping contemporary geopolitics and democratic resilience.

The article, titled “Europe’s Money, China’s Companies, Georgia’s Authoritarians: The Paradox Undermining Western Leverage,” explores how inconsistencies in Western economic and political strategies are weakening democratic conditionality and enabling authoritarian adaptation.

In the analysis, Khidasheli highlights three key dynamics:

  • Erosion of Western leverage through inconsistency: While democratic backsliding is often addressed through political pressure and sanctions, international development financing continues to flow with limited democratic conditions.

     

  • Opportunities for Chinese state-owned companies: Firms restricted or sanctioned in Europe and the United States are successfully securing major infrastructure contracts financed by Western-backed institutions.

     

  • Georgia as a case study of authoritarian adaptation: The country exemplifies a broader pattern in which governments combine Western capital, Chinese companies, and fragmented accountability mechanisms to pursue modernization without democratic governance.

     

Read the full analysis

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Jamestown Publishes Tinatin Khidasheli’s Analysis of Georgian Dream’s Shift from Western Partner to Provocateur

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We would like to inform you that Jamestown has published a new article by Tinatin Khidasheli, “Georgian Dream Shifting from Western Partner to Provocateur.”

The article analyzes how Georgia’s ruling party, Georgian Dream, has shifted from a pro-Western orientation to adopting a more confrontational stance toward Western partners. Khidasheli examines the government’s increasing use of anti-Western rhetoric and conspiracy-driven narratives – such as references to the “Deep State” and the “Global War Party” – to undermine trust in Western institutions, diplomats, civil society, independent media, and domestic political opponents.

The analysis highlights how this narrative reframes Georgia’s Euro-Atlantic integration as a security threat, while consolidating domestic political control and deflecting responsibility for democratic backsliding onto external actors. Khidasheli also discusses the broader implications of this shift for Georgia’s strategic direction, its democratic institutions, and its relations with key Western allies.

Full Article

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Why Didn’t Georgian Dream Fall? – ENB Features Analysis by Tinatin Khidasheli

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The Eastern Neighborhood Bulletin – a regional analytical platform covering political, security, and governance developments across Eastern Europe and the South Caucasus – has published a comprehensive expert review titled “Why Didn’t Georgian Dream Fall?”

The article brings together insights from nine leading specialists from Georgia, Europe, and the United States. Among them is Tinatin Khidasheli, Chairperson of Civic IDEA and former Minister of Defense of Georgia, who offers her analysis on the political developments surrounding the 2024 parliamentary elections and the protest movement that followed.

In her contribution, Tinatin Khidasheli highlights the critical failures of political leadership, noting that while civil society demonstrated remarkable energy and creativity, opposition parties did not transform public demand for change into a unified and credible political strategy:

“The 2024 parliamentary elections were seen as the last shred of hope by everyone, apparently except the main players: the opposition political parties. Georgian political opposition was expected to deliver bold, surprising moves that would catch the ruling party off guard and divert it from its well-structured traps. When the central issue at stake is the country’s sovereignty and reorientation of the entire statecraft, this is no longer a matter for activism alone. Resistance to such a shift must necessarily be political; it must be led, organized, and sustained by actors with the legitimacy and capacity to claim power, that is, political parties.

A simple plan of three phases of unavoidable change should have been set in motion: for people, regardless of partisan preference, to demand the change, then to believe it was possible, and finally to identify those capable of winning and governing after victory. Activists and civil society fulfilled their role. The movement proved creative and energetic, thus, the demand for change was overwhelming. Yet political leadership failed to transform that demand into a credible strategy of power.”

– Tinatin Khidasheli, Head of Tbilisi-based think tank Civic Idea, former Minister of Defense of Georgia, 2015-2016.

You can read the full article here:

Why Didn’t Georgian Dream Fall?

Why Didn’t Georgian Dream Fall? – ENB Features Analysis by Tinatin Khidasheli Read More »

Tinatin Khidasheli at Hitotsubashi University’s Global Governance Research (GGR) Session

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Civic IDEA Chairperson Tinatin Khidasheli delivered a talk at Hitotsubashi University within the Global Governance Research (GGR) series, addressing the theme “Small States in Turbulent Regions: Lessons from Georgia’s Current Political Challenges.”

The discussion focused on Georgia’s evolving geopolitical environment and the wider dynamics of the South Caucasus, including the pressures created by hybrid threats, authoritarian influence, and regional instability. Khidasheli emphasized how these dynamics shape the strategic choices of small states and how those choices, in turn, affect broader regional security.

In its introduction, the Institute for Global Governance Research highlighted Khidasheli’s leadership at Civic IDEA and her long-standing work on countering authoritarian influence, Russian propaganda, and hybrid warfare. It also noted her earlier roles in public service, including serving as Georgia’s first female Minister of Defense and as founder and chairperson of the Georgian Young Lawyers’ Association.

The session brought together students and faculty for an in-depth conversation on the challenges facing democratic governance in turbulent regions and the importance of understanding small states’ responses to global shifts.

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Civic IDEA’s Statement Regarding the Targeted Disinformation Campaign Against the Organization

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Today, pro-government media outlets launched a targeted disinformation campaign against Civic IDEA and its chairperson, Tinatin Khidasheli.

The narratives disseminated by these outlets align with Georgian Dream’s latest tactic: labeling anyone who asks critical questions as part of “anti-government forces” to divert attention from real issues. This campaign aims to obscure the findings of our research and discredit the evidence presented in it.

Below, we summarize the key points of the report.

What Facts Provoked the Georgian Dream?

  1. The Sharp Increase in Imports of Iranian Oil and Petrochemical Products to Georgia

In recent years, imports of Iranian oil and petrochemical products have grown dramatically:

  • In 2020, imports from Iran totaled USD 45 million; by 2024, this figure had nearly quintupled, reaching USD 285 million.
  • In 2021 alone, imports of oil and petroleum products increased by 154% compared to 2020, amounting to 3,413 tons.

It is well known that petrochemical exports constitute one of the Iranian regime’s main sources of revenue. Therefore, Georgia’s growing imports of these products amount to indirect financial support for Tehran.

  1. The U.S. Government’s Explicit Warning on Purchasing Iranian Petrochemical Products

On May 1, U.S. President Donald J. Trump issued a warning on the social platform Truth Social, stating:

“Alert: All purchases of Iranian Oil or Petrochemical products must stop, NOW! Any country or person who buys ANY AMOUNT of OIL or PETROCHEMICALS from Iran will be subject to, immediately, Secondary Sanctions. They will not be allowed to do business with the United States of America in any way, shape, or form.”

Clearly, Georgian Dream attempts to downplay or hide relevant facts that show its collaborative stance toward a regime openly hostile to the United States. 

  1. Guidance Published on Iranian Websites on How to Bypass Sanctions Using Georgia

Numerous Iranian online platforms openly discuss fraudulent schemes that allow Iranian businesses to circumvent international sanctions. According to these sources, Georgia offers a convenient route for Tehran to access Russian, Chinese, and even Western markets.

Examples from Iranian sources include:

  • “A favorable environment has been created for Iranian traders: they can bring their products into Georgia and, by repackaging them under Georgian labels, export them to the EU or the U.S. without paying customs tariffs and at competitive prices.”
  • “Iran can indeed circumvent U.S. restrictions and access global markets for various products by trading through Georgia. One of Georgia’s key advantages is its extensive network of trade agreements, particularly with Europe.”

Iranian websites further encourage business owners to take advantage of Georgia’s business environment:

  • The Iranian company Arad Branding published an article advising:
    “If you plan to trade with Georgia, we recommend first registering a company there, especially near ports. This significantly reduces costs and makes imports and exports smoother.”

Indeed, between 2013 and 2024, Iranian citizens registered nearly 9,300 companies in Georgia, illustrating the extent to which the Iranian regime exploits Georgia as a platform for its business operations.

Once again, we emphasize that this report is based exclusively on open sources and statistical data published by the National Statistics Office of Georgia. As before, Georgian Dream responds to factual, evidence-based criticism with its habitual tactic: launching disinformation campaigns and dismissing publicly available information as “fake news.”

Full report

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Tinatin Khidasheli’s Talk at the University of Tokyo

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Civic IDEA is pleased to share that on 1 December, our Chair and former Minister of Defence of Georgia, Tinatin Khidasheli, delivered a presentation at a conference hosted by the Research Center for Advanced Science and Technology (RCAST) at the University of Tokyo. 

Her talk, “Frontlines of Influence: Russia, China, and the Hybrid Contest over Georgia,” focused on Georgia’s current geopolitical challenges. Ms. Khidasheli outlined how authoritarian actors – Russia and China – are expanding their political and economic influence in Georgia and shaping developments in the region. She also addressed key issues related to strategic infrastructure, including ongoing debates around the Anaklia deep-sea port.

In the event brief, Akira Igata of the University of Tokyo’s RCAST highlighted how Georgia has become a test ground for hybrid pressure from Russia and China  –  from interference in democratic processes to economic influence and growing pressure on civil society. 

In her lecture, Tinatin Khidasheli discussed these challenges, including China’s planned investments in Georgia such as the Anaklia deep-sea port, and the broader security implications for the region. She also noted that shrinking civic space in Georgia has made civil society leaders frequent targets of disinformation, citing a recent government-backed TV “documentary” that falsely portrayed her as a “Taiwanese agent.” These issues, as Igata emphasized, are not limited to Georgia; authoritarian disinformation campaigns now have global consequences.

The event was attended by University of Tokyo students, members of the academic community, and media representatives. The session concluded with an interactive Q&A and discussion, allowing participants to engage directly with the topics raised during the presentation.

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