Publication: N14 / Review period: May 1-31, 2022/ Author: Tamta Kapanadze
Review 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
Seaport in Ochamchire
On May 6, the de facto Prime Minister, Alexander Ankvab, held a meeting on the expansion of the throughput capacity and dual-use status of the Ochamchire Seaport.
Sochi-Sokhumi Cruise
Passenger transport communication was restored between Sochi and Sokhumi along the Black Sea. The Griffin high-speed catamaran of the Vodokhod Express Russian company will transport passengers to and forth.
The first flight took place on May 8. It is now possible to travel from one city to another by sea in three hours. Tickets cost RUB 2.5 thousand.
There was no sea passenger traffic in this direction for 29 years. The catamaran was originally scheduled to be launched in 2021, but due to the coronavirus pandemic the project was postponed until 2022.
Strawberry Export
Specialists and experts of the Russian Chamber of Commerce and Industry continue to cooperate with Abkhazian enterprises and private farms to carry out certification and improve the process of determining the country of origin of goods.
Chamber staff visited 29 strawberry farms in the Gulrifshi and Ochamchire districts in April and early May this year. On-site, specialists got acquainted with the technology of berry cultivation and the difficulties of this process.
According to the information received from the visited farms and enterprises, the expected strawberry harvest will be more than 1.2 thousand tons for the current season, most of which will be sold on the domestic market.
Despite meeting all the conditions of transportation, exports to Russia are virtually impossible due to the perishability of the product. Demand for strawberries in regions adjacent to Russia is already declining due to local supply of strawberries to the domestic market. Therefore, it is expected that strawberry exports will decrease from Abkhazia to Russia.
Meeting of the Finance Committee
An expanded meeting of the Parliamentary Committee on Budget, Credit Organizations, Taxes and Finance was held in the de facto parliament. The committee meeting discussed a draft resolution “On the Annual Report of the National Bank of the Republic of Abkhazia for 2021.” Beslan Baratelia presented the report of the so-called Bank of Abkhazia to deputies. The participants of the meeting discussed the current situation in the banking sector, the possibility of expanding lending potential, problems in the work of banks, technical issues, and the refinement of banking legislation. Based on the results of the review, the committee decided to submit the draft resolution to the session for approval.
Economic Relations between Russia and the Tskhinvali Region
International Settlement Bank
A branch of the International Settlement Bank (МРБ Банк) based in the Tskhinvali region started operation in the Russian-occupied Melitopol. The opening of another branch is also planned in the occupied Kherson region.
The bank allows residents of the occupied Donetsk region to withdraw money using bank cards issued by Russian banks. Withdrawals are made only using cards issued by Russian banks, although this does not include Visa and Mastercard cards.
A similar opportunity is also available on the territory of the so-called Luhansk People's Republic.