The Legal Issues Committee considered, under the expedited procedure and in the I reading, and approved the Draft Law on Grants.

As stated by the reporter, Chair of the Committee Archil Gorduladze, if a foreign embassy receives funds from its own state for its own purposes, such funds shall not be regarded as a grant and, accordingly, will not require the consent of the Government of Georgia.

According to him, if an embassy intends to issue a grant to a citizen of Georgia, whether a natural or a legal person, prior agreement with the Government of Georgia will still be required.

“As envisaged by the submitted draft law, nothing changes in substance. Under the current wording as well, funds allocated to embassies and diplomatic missions, originating from their respective states and intended for the functioning of the embassy, were not considered grants, given that the Vienna Convention applies, which is an international agreement and has higher legal force than the law of Georgia. However, in order to avoid speculation and prevent claims that funds received by an embassy from its own state for operational expenses and the exercise of its functions must be mandatorily agreed with the Government of Georgia, a corresponding provision is being introduced into the law”, - Archil Gorduladze stated.