Publication: N25 / Review period: April 1-30, 2023/ Author: Arsen Araqelov
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
Meeting with the Minister of Finance of Russia
Within the framework of his visit to Moscow, the President of the de facto republic of Abkhazia, Aslan Bzhania, met with the Minister of Finance of Russia, Anton Siluanov. The meeting discussed the issue of cooperation between the de facto republic and Russia in the field of economy and finance.
Meeting with the Minister of Digital Development of Russia
The Minister of Foreign Affairs of the de facto republic of Abkhazia, Inal Ardzinba, met with the Minister of Digital Development, Communications and Mass Media of Russia, Maksut Shadayev. The meeting discussed the possibilities of creating an IT park in the occupied Abkhazia with the involvement of specialists from partner countries, as well as establishing contacts with Russian leading IT companies (Yandex, VK) and digitalization of public services.
Meeting with the Minister of Digital Development of Russia
Moscow Government Visit to Sokhumi
The de facto mayor of Sokhumi, Beslan Eshba, met with the Deputy Head of the Department of External Economic and International Relations of Moscow, Igor Tkach. At the meeting, the parties discussed a cooperation memorandum between Moscow and Sokhumi, which will be signed in the near future. According to Eshba, it is important that the document reflects cooperation in the field of economy taking into account developments in the world. According to him, “Abkhazia has the opportunity to be a comfortable partner in cooperation with third countries.”
New Rules at the So-Called Border
By an order of the de facto President, Aslan Bzhania, trade between the occupied Abkhazia and the territory controlled by the central government of Georgia will be facilitated. The resolution determines a list of goods and equipment the transportation of which through the so-called Enguri crossing checkpoint will be simplified. According to the Deputy Chairman of the State Customs Committee of the de facto republic, Alias Labahua, the said change applies only exclusively to individuals who will be allowed to transport goods after payment of customs duties.
Exempting Propane Gas from Custom Duties
In 2022, the de facto Ministry of Economy appealed to the Russian Ministry of Energy with a request to consider the possibility of exempting propane gas supplied by Russia to the occupied Abkhazia from customs duties. As a result, by a decision of the Russian government, the mentioned change was introduced in a trade protocol between the de facto republic and Russia, and propane will no longer be subject to customs duties. According to the de facto Deputy Minister of Economy, Teimuraz Mikvabia, the change will lead to a decrease in the price of propane gas in the occupied Abkhazia.
Economic Relations Between Russia and the Tskhinvali Region
New Enterprise in the Occupied Region
The President of the de facto republic of the Tskhinvali region, Alan Gagloyev, met with the Chairman of the Board of Directors of BTK Group, Taimuraz Boloyev. BTK Group is one of the largest companies in Russia in the field of light industry. The meeting discussed the prospects of the company's cooperation with the de facto republic and the start of production in Tskhinvali.
Meeting with the Representative of BTK Group
According to Gagloyev, this decision will significantly help the de facto republic and create jobs for its population. The meeting was also attended by the so-called Ambassador of the Tskhinvali region to Russia, Znaur Gassiev.
Gagloev raised this issue at a meeting with members of the de facto government. He said that everything should be done for the creation of branches of the BTK-4 garment factory as soon as possible in different districts of the de facto republic. It is noteworthy that Gagloyev announced the opening of the mentioned enterprise for the first time after the meeting with Vladimir Putin.
Visit of Dmitry Volvach
The Deputy Minister of Economic Development of Russia, Dmitry Volvach, visited the de facto republic. He supervises the direction of the occupied Abkhazia and the Tskhinvali region. Volvach attended a meeting on socio-economic cooperation between Russia and the de facto republic where he stated that “the best sons of South Ossetia and Russia sacrifice their lives to protect peace and the future.” He also noted that it is important to deepen economic cooperation.
In addition, Volvach held a meeting with the de facto President, Alan Gagloyev. The meeting discussed prospects of socio-economic cooperation. A delegation of the Ministry, chaired by Volvach, inspected the progress of works within the framework of the Russian-financed investment program. They visited and checked the rehabilitation of a bridge over the Liakhvi River and the construction of a camp “Mziugomi” which will accommodate 150 children.
Dmitry Volvach Visits the Construction of a Children's Camp
Seedlings of Crimean Pine from Russia
Employees of the Forestry Department of the de facto republic planted 5,000 Crimean pine seedlings in the occupied Akhalgori and Tskhinvali regions. Seedlings were brought to the de facto republic from Rostov Oblast.
Pension Reform for “Public Servants”
Representatives of the Ministries of Justice and Health of the de facto republic and employees of the Ministry of Labor and Social Security of Russia held a video conference which discussed agreements reached within the framework of a meeting of the “Intergovernmental Commission” of Russia and the de facto republic. In particular, the preparation of the legal basis for the pension provision to “public servants.”
Personnel Change
The de facto republic has a new so-called Finance Minister. On April 4, Gagloyev introduced Kazbek Tsarikaev to employees of the “Ministry of Finance.” Tsarikaev has been Gagloyev's advisor since November 2022, before that he was the Minister of Finance of the Republic of North Ossetia - Alanya and worked in Russian public agencies.