The EU is considering suspending financial assistance to Georgia after its foreign agent's law came into effect on Aug. 1, the European Commission's spokesperson Peter Stano told Europa Press.
The foreign agents law, passed by the parliament in May, requires organizations that receive foreign funding to be labeled as such.
The ruling Georgian Dream party pushed the controversial legislation through despite widespread protests in the country and international condemnations.
Stano reiterated the EU's concerns over the law, calling it "a step backward" on the country's path to European integration.
The spokesperson also reminded that the EU has already frozen 30 million euros ($32.4 million) of military support for Georgia through the European Peace Fund.
In July, the U.S. indefinitely postponed joint military exercises with Georgia and paused more than $95 million in assistance to the country after the Georgian parliament passed the controversial bill.
Georgian President Salome Zurabishvili, who has criticized the law as jeopardizing the country's aspirations to join the EU, filed her complaint against the law with the Constitutional Court on July 15.
Following Zurabishvili's move, Georgia's largest opposition party, the United National Movement (UNM), also announced that it would sue the Constitutional Court over the controversial law.