Monthly Review

Review of Russia’s Economic Relations with Abkhazia and the Tskhinvali Region

2022 / 10 / 04

Publication:  N18 / Review period:  September 1-30, 2022 / Author:  Arsen Araqelov

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

Meetings with the Russian “Trade Representative

On September 19, the de facto President of Abkhazia, Aslan Bzhania, held a meeting with the “Trade Representative” of Russia in Abkhazia, Zalina Kobesova. Issues of bilateral economic relations were discussed at the meeting. Bzhania expressed hope that the cooperation will strengthen bilateral economic relations. According to Kobesova, it will be important to establish better communication between the de facto government and the business sector. On September 28, the “Ambassador” of Russia, Mikhail Shurgalin, introduced Kobesova to the de facto Prime Minister of Abkhazia, Alexander Ankvab. The meeting discussed bilateral trade and economic relations and prospects of future relations.

Construction of Children's “Republican” Hospital

On September 19, at a meeting with the de facto Minister of Economy of Abkhazia, Kristina Ozgan, the construction project of the Children's “Republican” Hospital was discussed. As planned the construction of the hospital will start in 2023 under the “2023-2025 investment program promoting the socio-economic development of Abkhazia” ​​which is financed by Russia.

Meeting with a Russian Delegation

A delegation from Russia visited the de facto republic of Abkhazia. The delegation is working on the general gasification scheme of the de facto republic. According to the Russian side, the completed gasification plan will be presented to the Abkhazian side in December of this year.

Money Transfers

According to the data of the “National Bank of Abkhazia,” ​​in the first half of 2022, a total of RUB 4 million 362 thousand (approx. USD 70,000) was transferred from the de facto republic to other countries, and 75.5% of this amount was transferred to Russia.

New Batch of Ice Cream in Abkhazia

One of the Novosibirsk companies sent 6.4 tons of ice cream to the de facto republic. According to the agency, this is the second batch of ice cream in 2022.

Economic Relations Between Russia and the Tskhinvali Region

Meeting with Government Officials

The de facto President of the Tskhinvali region, Alan Gagloyev, met with the Deputy Minister of Economy of Russia, Dmitry Volvach, who was on a working visit in Tskhinvali. The meeting discussed the 2023-2025 investment program promoting the socio-economic cooperation between the Tskhinvali region and the Russian Federation. Also, they visited those facilities which are being constructed as part of the investment program. A few days later, Jusoev also met with Vitaly Gudin, the Director of the Department for Special Programs and Projects of the Ministry of Economic Development of Russia. Volvach and Gudin supervise the occupied regions of Georgia in the ministry.

New Winery

A local company “Арес” plans to open a new wine factory in Tskhinvali. According to the company CEO, Alan Gagloyev, they plan to enter the Russian market next year. In addition to the European varieties, the factory plans to produce Rkatsiteli and Chinuri as well.