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Georgian lawmakers withdrew a controversial “foreign agents” bill after it had passed only its first reading amid fears it would damage the country’s relations with the West as the draft law threatened to curtail the country’s basic freedoms, CNN reported.

The legislation also sparked days of protest and the announcement came early Thursday following a second night of clashes outside the country’s parliament between police and thousands of protesters, with some carrying Georgian and European Union flags, while chanting insults aimed at Georgian politicians and Russian President Vladimir Putin.

Stones and petrol bombs were countered by tear gas and water cannons, with more than 140 arrests, officials said.

The bill would have led to civil society groups and news organizations that receive more than 20 percent of their funds from abroad being labeled as “foreign agents.” The ruling Georgian Dream party backed the proposal, despite domestic and international criticism.

Human rights groups and advocates warned that the bill resembled a similar law in Russia, which also labels organizations and individuals receiving funds from abroad as “foreign agents,” a designation that stigmatizes them and forces them to submit to audits, according to Radio Free Europe.

Critics warned that the bill will impede the freedoms of expression and association in the country by erecting onerous financial reporting requirements.

Georgian President Salome Zourabichvili described it as “an unnecessary law … dictated by Moscow,” and said she would veto the bill.

The EU and the United States also warned that the proposal could jeopardize Georgia’s relations with the West.

The former Soviet republic has had to strike a balance between its population’s pro-European sentiment and its geographical position close to Russia.