The Venice Commission of the Council of Europe has publicly released its evaluation of the de-oligarchisation bill in Georgia, concluding that the proposed legislation is ineffective. The commission advises against adopting the bill presented by the ruling Georgian Dream party, citing concerns that it could be misused by the government to target political opponents.

It highlights that the current de-oligarchisation bill, which focuses on identifying specific individuals as oligarchs based on predetermined criteria, lacks a comprehensive and systematic approach to addressing the problem of oligarchy. It argues that the most effective way to combat oligarchic influence is by establishing robust and independent institutions. 

“Rather than pursuing this multi-sectoral 'systemic' approach, Georgia has chosen to tackle the destructive influence of oligarchisation through a different 'personal approach',"  the advisory body of the Council of Europe on constitutional law said.

While the revised version of the bill removes some punitive measures and restrictions, the Venice Commission warns of potential misuse and arbitrary application of its provisions, posing a significant threat to the rule of law and political pluralism.

In reaction, Mamuka Mdinaradze, Georgian Dream party leader, said that if the European Commission removes the de-oligarchisation requirement by the end of the year, the majority party will have the option to not implement the law. Otherwise it will come into effect from March 1, 2024.

De-oligarchisation is one of the requirements in the 12 recommendations for Georgia to achieve EU candidate status. Georgia's progress in meeting these requirements will be evaluated later this year.

This EU's de-oligarchisation requirement is thought to target billionaire Bidzina Ivanishvili, the founder of the Georgian Dream party and the country's richest man, who is widely believed to wield significant influence despite lacking an official position.

The government has vehemently denied his classification as an oligarch, asserting that he is better described as a philanthropist.

Instead, the opposition claim that the bill has been specifically designed to ignore Ivanishvili and target some businessmen close to them, thereby subverting the EU's recommendation.

The draft law defines an oligarch as someone who meets three criteria simultaneously: participation in political life, significant influence on the media, and ownership of substantial economic resources. The total value of the person's property, including indirect ownership, must exceed 1,000,000 times the subsistence minimum.

According to the amended version of the draft law, the newly established anti-corruption bureau will make the decision to recognise an individual as an oligarch.