Receipt of foreign funds by a political party

Article 319 prohibits a political party registered in Georgia from receiving foreign funds in the form of donations. The provision is brief, but its composition contains several independent elements — and it is the precise interpretation of these elements that determines where the line is drawn between a punishable act and a legitimate relationship.

Text of the provision

Special subject

The provision applies only to a political party registered in Georgia. This is the first and most clear restrictive element of the composition: a subject of a different organizational-legal form — a non-entrepreneurial legal entity, association, or initiative — does not fall within the scope of this specific article.

Four sources of funds

The article exhaustively lists the subjects from whom the receipt of a donation is punishable:

• A natural person who does not have Georgian citizenship — the criterion is citizenship and not residency or place of residence;
• A legal entity registered outside the borders of Georgia — here, conversely, the place of registration is decisive, not the identity of the owner;
• Other types of associations of persons — the most open formulation, which also includes entities that do not have the status of a legal entity;
• A subject constituting part of the system of government of another state — an organ of a foreign state or its constituent unit.

The first two criteria follow a different logic: for a natural person, citizenship decides the issue, while for a legal entity, it is the place of registration. This distinction is practical: a company registered in Georgia, whose owner is a foreigner, does not fall into the second category according to the text — although such a construction could be assessed in the context of "indirect" receipt.

Action: receipt in the form of a donation

It is punishable to receive funds in the form of any kind of donation. The norm does not restrict the type of donation, which means that it includes both monetary and non-monetary benefits — provision of services free of charge, transfer of property for free use, reimbursement of expenses.

“Directly or indirectly” — the broadest element of the composition

These two words are the most important part of the provision. The legislator excludes formal circumvention: receipt through an intermediary is also punishable. Accordingly, the involvement of an intermediate subject — be it a local company, a natural person, or an organization — does not in itself relieve one of liability if the initial source of funds falls into the listed category.

At the same time, this is precisely where the main interpretative question arises: how far does the concept of "indirect" receipt go and what degree of connection is required between the source and the party. It will take time for uniform judicial practice to be established on this issue.

Sanction

The article provides for three alternative penalties: a fine; community service from 300 to 500 hours; or deprivation of liberty for up to six years. The penalties are alternative — the selection of a specific measure is at the court's discretion and is based on the gravity of the act, the consequences, and the characteristics of the person.

Conclusion

Article 319 is a short provision, the composition of which rests on four elements: a special subject, an exhaustively listed source of funds, the form of the donation, and the direct or indirect nature of the receipt. The first three elements are relatively clear; the fourth is what defines the real scope of the provision in practice.

Qualification in a specific situation requires an individual assessment. Since legislation in this area has been actively changing recently, it is necessary to check the current version of the article in each case.

Nikoloz Pkhaladze

Attorney · Founder, Managing Partner

24g Al. Kazbegi Ave., AXIS, 10th floor, Tbilisi · +995 597 117 795 · www.pkhaladze-law.ge