US House subcommittee proposes caveat to financial assistance for Georgia bill

A Houses of Representatives subcommittee has proposed adding a caveat to $132,025,000 in financial assistance for Georgia with the stipulation that 15 per cent of the funding may not go through if the State Secretary reports the Georgian government is not taking effective steps to:

• Strengthen democratic institutions
• Combat corruption within the government, including in the application of anti-corruption laws and regulations
• Ensure the rule of law in the private sector is consistent with internationally recognised standards, including protecting the rights of foreign businesses to operate free from harassment and to fully realise all due commercial and financial benefits resulting from investments made in Georgia

On the other hand, the draft of the bill also clarifies that the withholding of funds doesn't apply to programmes that support 'democracy, the rule of law, civil society and the media, or programmes to reduce gender-based violence and to protect vulnerable populations".

There is also a chapter in the document about the occupation of the Georgian territories of Abkhazia and Tskhinvali region, which reads that “none of the funds appropriated by this Act may be made available to support the Russian Federation’s occupation of the Georgian territories of Abkhazia and Tskhinvali Region/South Ossetia".

The document also reads that the Secretary of the Treasury shall instruct the United States executive directors of each international financial institution to use the voice and vote of the United States to oppose any assistance by such institution (including any loans, credit lines, or guarantees) for any programme that violates the sovereignty and territorial integrity of Georgia.