Publication:  N11 / Review period:  February 1-28, 2022/ Author:  Tamta Kapanadze

Overview of Russia’s Economic Relations with Abkhazia and Tskhinvali Region is being prepared within the framework of the project - Roadmap to Kremlin's Policy in Abkhazia and the Tskhinvali Region. The purpose of the publication is to provide an overview of economic relations between Russia and Abkhazia and the Tskhinvali region. The review is a monthly publication and will be useful for everyone – decision-makers, public employees, media representatives and other people who are interested in the Kremlin policy in the occupied regions of Georgia.

Economic Relations Between Russia and Abkhazia

General Gasification Plan

A delegation of contractor specialists from Russia arrived in Abkhazia. The contractor company is developing the general scheme of gasification. The parties met at the de facto Ministry of Economy and discussed issues related to the implementation of the first phase of an action plan which was approved in December last year.

At the meeting, experts presented several scenarios for the gasification of Abkhazia such as grid gasification, autonomous gasification with liquefied natural gas and gasification of energy facilities.

Representatives of the contractor organization also briefed the de facto Deputy Prime Minister and the Minister of Economy, Kristina Ozgan, on the results of their work on exploring local resources potential. 

Meeting at the De Facto Ministry of Economy of Abkhazia. Source:  mineconom-ra.org

Payment and Settlement System Transactions

In 2021, the total volume of transactions in the national payment system of the de facto republic of Abkhazia amounted to RUB 25.3 billion which is RUB 8 billion, 47% more than in 2020. According to 2021 data, the volume of transactions with bank cards doubled compared to the previous year and totaled RUB 6.3 billion.

In 2021, the volume of transactions with APRA World cards outside Abkhazia increased significantly - from RUB 41 million to RUB 66 million. After the Russian military aggression in Ukraine, the Abkhaz banking system will face severe challenges.

Inflow of Funds

By 2021, the cross-border turnover of funds through the banking system of the de facto Republic of Abkhazia amounted to RUB 97.6 billion, which is 57% more than in 2020. Using the banking system, the inflow of funds to the de facto republic of Abkhazia equalled to RUB 51.5 billion, while the outflow of funds from the country was RUB 46.1 billion.

In 2021, the main currency of payment was the Russian ruble, which accounts for 89.2% of the total volume of cross-border transactions.

Commemorative Coins

The National Bank of the de facto Republic of Abkhazia plans to issue the Abkhaz Butterflies commemorative coins made of non-precious metals. The circulation of coins will be 500. It will depict a relief image of the coat of arms of the de facto republic of Abkhazia and stylized forms of butterflies on the right side.

Economic Relations Between Russia and the Tskhinvali Region

Tskhinvali Region at the Food Exhibition

The 29th international food exhibition Prodexpo-2022 was held in Moscow on February 7-11. Over 2.5 thousand participants from 73 countries exhibited their products.

The Tskhinvali region presented its own stand for the fourth time, this time of alcoholic beverages and mineral waters. The region was awarded in three nominations. ApiWaters Ltd won the gold medal for the DZIMUR mineral water as the best product of 2022.

The organizer of the exhibition was Teimuraz Goginov, the Trade Representative of South Ossetia in Russia.

The de facto Prime Minister of the Tskhinvali region, Gennady Bekoev, paid a special visit to Moscow to attend the exhibition. According to him, all steps will be taken to promote “national” products in the international market.

Prodexpo Exhibition. Source:  cominf.org