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Recently passed the Russian ‘Foreign Agent’ law against foreign funding of NGOs and civil society has attracted criticism from almost every quarter. From home to abroad all party concerned (i.e., civil society organizations, NGO groups, donor countries (especiallyAmericaand European countries) as well as some Russian opposition political parties) are of the view that this bill has been introduced to scuttle the independent civic activities and in this way unconstitutional. However on the basis of overall analysis of ‘Foreign Agent’ law in the context of American democratic promotion policy this paper is of the view that this law simply cannot be characterized as anti-democratic, which is against the very basis of freedom and rule of law, by the anti-democratic Russian government but it should be seen as extension of same challenge which American democratic promotion policy is facing around the whole world. It is because of its illegal and unconstitutional method of regime change policy, with the help of foreign funded NGOs, and civil society which has compelled various countries includingRussiato resort this type of law. It is important to note that the promise of peace, stability and prosperity by the democratic promotion protagonists after the fall ofSoviet Unionhas not been realised till today. Instead what post-Soviet states are witnessing today is emergence of chauvinist nationalist government in respective countries which witnessed colour revolution. Whole region is now plunging into economic turmoil, ethnic nationalism, rise of religious fundamentalism and identity politics. Recent overthrow of legitimate Viktor Yanukovych government inUkraineand subsequent decision by incumbent government to exclude Russian as administrative language can be sited as example. That is why former American Republican Congressman Ron Paul is of the view that “US‘Democracy Promotion’ Destroys Democracy Overseas’’. In this context this paper will argue that democracy can only be beneficial when it evolved from within according to the aspiration of native masses and should not be imposed from outside with certain geopolitical interest in mind. Looking at the backlash against this policy this paper will further argue that the time has come when America should think of to review the policy of democratic promotion through foreign funding and simultaneously NGOs and civil societies should instead of fulfilling the agenda of their donor counties should work for making native people politically conscious and should not let the people make sceptic even of its guanine activity.