Georgia's ruling party has said it will pull a controversial draft law, in the face of mass protests and widespread international criticism.
For days, thousands of protesters have taken to the streets in Tbilisi in anger as a Russian-style law began its passage through parliament.
Under the bill, non-government groups and media would be targeted if they take over 20% of funding from abroad.
The main ruling party said it was pulling the bill "unconditionally".
Describing itself as a party of government responsible to all members of society, Georgian Dream referred to the need to reduce "confrontation" in society.
Georgia has applied for candidate status of the European Union and sought to join Nato. EU officials had condemned the draft legislation as incompatible with EU values.
In a statement, the EU delegation in Georgia said the move to drop the law was a "welcome announcement" and encouraged political leaders to resume "pro-EU reforms".
