By Laura Linderman

On November 28, 2024, the ruling Georgian Dream (GD) party explicitly announced a change in Georgia's foreign policy trajectory, despite overwhelming public opposition to turning away from European integration. Prime Minister Irakli Kobakhidze declared the party's decision to halt EU accession negotiations, rejecting talks until 2028 and refusing EU budget support. Kobakhidze asserted that Georgia would enter the EU in 2030, "with dignity" - a claim rejected by the vast majority of Georgians who view this as a betrayal of the country's pro-European aspirations.

This decision sparked nationwide protests that reflect the broad public consensus in support of European integration. Demonstrators have gathered in Tbilisi, Batumi, and cities across Georgia, condemning GD's decision and the subsequent police brutality against mostly peaceful protesters. Demonstrations have continued since the announcement, with protesters blocking streets, clashing with riot police, and facing dispersal attempts using water cannons, tear gas, and pepper spray. President Salome Zourabichvili has pledged to stay on as Georgian President, emphasizing that the illegitimate Parliament cannot elect a legitimate President.

BACKGROUND:  Prior to the October 26, 2024, parliamentary elections, Georgia's economy was experiencing double-digit economic growth, despite the fact that most ordinary Georgians live near poverty. This growth was fueled, in part, by financial flows from Russia, including tourism, trade, and potentially sanctions-evading investment. Russia is a significant market for Georgian products like wine, and the influx of Russian money had created a wealthy elite dependent on these financial flows. The economic growth figures helped the Georgian Dream (GD) secure support and acquiescence from some segments of the population.

This dependence on Russian money creates a conflict between Georgia's political aspirations of joining Europe and its economic realities. Despite preferential access to the EU market, Georgia did not produce much that Europe wanted to buy, while Russia was a major consumer of Georgian products. This economic reality, coupled with GD's close ties to Russia, likely contributed to the party's decision to halt EU accession negotiations, further consolidating its grip on power and jeopardizing Georgia's European future.

The protests that followed Georgian Dream's decision to suspend EU accession negotiations were fueled by a strong desire for EU integration among a distinct majority of the Georgian population. While the GD government maintained its rhetoric about commitment to eventual EU membership, its decision to postpone accession talks until 2028 provoked immediate public anger and confirmed long-standing suspicions that the government lacked genuine commitment to EU integration. The government's ratification of a Russian-style "foreign agents" law over the summer, coupled with its strategic courting of older, rural conservative constituencies more vulnerable to fears of cultural upheaval and potential conflict with Russia, further reinforced the perception that GD was prioritizing appeasement and political expediency over meaningful European alignment.

The timing of the announcement coincided with a European Parliament resolution documenting electoral irregularities. This resolution echoed widespread criticism of the elections, which were marred by concerns about the secrecy of the vote, vote-rigging, voter intimidation, and a lack of transparency, as reported by international observers. GD's decision, perceived by many as a rejection of the popular will in favor of closer ties with Russia, led to a significant portion of the population demanding immediate progress toward EU membership.

IMPLICATIONS:  Since the November 28^th announcement, numerous civil servants have resigned in protest, including Georgia's ambassadors to the United States, Lithuania, Bulgaria, Italy, Czechia, and the Netherlands. The Baltic states of Lithuania, Estonia, and Latvia imposed sanctions on GD founder Bidzina Ivanishvili and several high-ranking Interior Ministry officials, barring them from entering their countries. The Baltic states also condemned the suppression of protests and reaffirmed their support for the Georgian people's European aspirations. In addition to these resignations and sanctions, various sectors of Georgian society mobilized in opposition to the GD's decision. Students from universities organized marches and protests, demanding a reversal of the decision and calling on their universities to suspend classes so students could participate in demonstrations. The Georgian Trade Unions Confederation criticized GD's lack of transparency and condemned police violence against protesters. The International Chamber of Commerce in Georgia warned that halting the EU accession process would negatively impact the country's economy and investor confidence. Both major banks, Bank of Georgia and TBC Bank, and leading internet providers Magti and Silknet condemned the government's actions and reaffirmed their commitment to European integration.

The implications of GD’s decision and the subsequent protests are multifaceted and far-reaching:

• Erosion of Democracy: GD’s actions, including the alleged election rigging and violent suppression of protests, have significantly damaged Georgia’s democratic credentials. International observers have expressed concerns about the erosion of democratic norms and the shrinking space for civil society in Georgia, especially the ratification of the Russian-style foreign agents law. The use of excessive force against protesters, including journalists, further highlighted the government's disregard for fundamental freedoms.

• Strained EU Relations: The decision to halt EU accession has severely strained Georgia’s relationship with the EU. European officials have condemned GD's move as a betrayal of the Georgian people’s aspirations and a rejection of the country's European future. The suspension of EU budget support and the potential for sanctions against GD leaders further isolate Georgia from its European partners.

• Strained US Relations: The US decision to suspend its Strategic Partnership with Georgia, in response to GD's halt of EU accession negotiations, signals a deterioration in US-Georgia relations and underscores US concerns about GD government's commitment to democratic values and the rule of law. By suspending the partnership, the US aims to pressure the Georgian government to reconsider its actions and to demonstrate its commitment to democratic principles. The suspension also raises questions about the future of US assistance to Georgia, which has been instrumental in supporting the country's democratic and economic development. This move could weaken Georgia's security and stability, particularly in the context of ongoing tensions with Russia. Additionally, it may embolden anti-Western forces within Georgia and undermine the pro-European aspirations of the Georgian people

• Geopolitical Realignment and Russian Influence: The timing of Russian President Vladimir Putin's praise for GD's decision, just minutes after the announcement, has raised suspicions about potential Russian influence behind the move. The sources also highlight GD's adoption of policies, such as the "foreign agent" law, that mirror Russian legislation and have been criticized by the EU and the US.

• Implications for Regional Stability: The potential geopolitical realignment of Georgia has significant implications for the balance of power in the South Caucasus. A shift towards Russia could embolden the Kremlin to exert more influence in the region and potentially threaten the sovereignty of other neighboring countries, particularly Armenia.

• Economic Fallout: The halting of EU accession has created significant economic uncertainty for Georgia. The potential for reduced foreign investment and trade disruptions could severely impact the country's economic growth. While Georgia's recent economic growth has been partly fueled by Russian money, this raises concerns about economic sustainability and potential dependence on Russia. The Georgian Dream (GD) party's rejection of EU budget support will limit financial assistance and hinder development. GD's actions have damaged Georgia's international reputation and risk international isolation. Widespread protests, including strikes by schools and universities, are disrupting economic activity and further undermining investor confidence. The ongoing political instability threatens to derail Georgia's economic progress and international standing.

CONCLUSION:  GD's decision to halt EU accession has triggered a nationwide crisis, revealing a stark disconnect between the ruling party and the overwhelming pro-European sentiments of Georgian citizens. While GD claims to be pursuing a "European path with dignity," its actions suggest a shift towards Russia's sphere of influence, raising concerns about the country's sovereignty and democratic future. This shift is motivated, in part, by a strategic calculation that aligns with the interests of certain political and economic elites within Georgia, who have benefitted from closer ties with Russia and favor an appeasement strategy with the North. GD has employed a range of tactics to consolidate its power, including manipulating elections, intimidating voters, and suppressing dissent, drawing parallels to the authoritarian playbook seen in countries like Hungary. The opposition's struggle to counter GD's narrative and mobilize sustained public resistance highlights the challenges facing pro-democracy forces in Georgia.

AUTHOR BIO: Laura Linderman is a Senior Fellow and Director of Programs at the Central Asia-Caucasus Institute of the American Foreign Policy Council.

By Svante E. Cornell

December 8, 2023

Kazakhstan has been deeply affected by the geopolitical turmoil across the region in the past several years, which threatened to undermine the viability of the country’s multi-vector, balanced foreign policy. But Kazakhstan’s leaders have stayed the course, which has for twenty years sought to balance relations with Russia through the expansion of ties with powers ranging from China to the U.S. and Europe. In recent years, Kazakhstan has also embraced regional cooperation in Central Asia, while strengthening ties with Turkey as well. The continued success of this approach remains crucial to the continued independence and stability of Central Asia as a whole.

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By Kornely Kakachia

September 5, 2022

Georgia has struggled to achieve its foreign policy goals of restoring its territorial integrity and achieving Euro-Atlantic integration. In recent years, Georgia’s relations with the West have cooled somewhat as a result of Georgia’s internal problems, while the Georgian Dream government’s normalization policy with Russia has led to an increase in Russian influence in the country. In effect, a pro-Western foreign policy was replaced by a balancing approach between Russia and the West. But Russia’s invasion of Ukraine exposed the limits of this having the-cake-and-eating-it approach, which has led to the question whether the GD government lost its foreign policy compass, at a time when its domestic objective to stay in power clashes with the reforms needed to push for EU membership.

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By Anar Valiyev and Inara Yagubova

August 30, 2022

For the last 30 years Azerbaijan has aimed to restore its territorial integrity and political independence through its multi vector foreign policy, avoiding joining any military blocks or unions. In line with its multi-vector foreign policy, amid geopolitical changes in the region, Azerbaijan’s foreign policy is based on a “strategic patience” approach which enables it to delicately balance between the collective West and Russia. Meanwhile, with the geopolitical tectonic changes due to Ukrainian crisis, Baku is utilizing its energy resources and transit potential to secure itself against regional powers.

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By Stephen Blank

April 27, 2020, the CACI Analyst

Crises are often telling indicators of an institution’s fitness. The Coronavirus pandemic is currently putting governments and regional institutions like the EU under profoundly challenging stress tests. Another such regional institution is the Eurasian Economic Union (EEU), which Russian President Vladimir Putin and its champions have claimed is organized along the lines of the EU. Whatever the EU’s successes or failures, it is clear that the EEU has failed to display even a semblance of the EU’s cohesion. Moscow has simply disregarded the interests of its partners and pursued a sharply unilateralist policy that seriously complicated if not threatened its partners’ economies, particularly in Central Asia.