Finances of Russia's 2020-2022 investment program promoting the socio-economic development of Abkhazia total over RUB 4 billion. Kristina Ozgan, the de facto Minister of Economic Development of Abkhazia, discussed the implementation of the 2021 investment program at a briefing.

Funds Allocated and Projects Planned for 2021

According to Ozgan, the implementation of the 2021 investment program is starting and it has allocated RUB 1.350 billion, RUB 226 million of which have already been spent. One of the problems is that the prices for materials are increasing during the course of the program.

A total of 44 projects are planned for 2021, seven of which are transitional, 37 events “passed the state inspection” and “state contracts” are signed for 35 of them.

As Ozgan stated, the construction of Tkvarcheli Hospital is almost completed within the framework of the investment program.

She also noted that work is already underway on the formation of the 2023-2025 investment program, the concessional landing program, the implementation of a subsidy program in agriculture, tourism and the processing industry.

Energy Issues

According to Ozgan, financial sources left from the overhaul of the Achguara transmission line will be spent on the “development of the general gasification scheme” in Abkhazia in 2021-2022. The Russian investment program envisages RUB 106 million directly for the repair works of the Achguara. The Abkhazian Chernomorenergo company will allocate RUB 16 million for this activity.

According to Ozgan, technical talks started with Gazprom and the Russian Ministry of Energy. Negotiations are also underway on financing the airport in Abkhazia.

Last week, following a decision of the Co-Chairs of the Intergovernmental Commission on Social and Economic Cooperation between Abkhazia and Russia, the de facto Ministry of Economy of Abkhazia and the Ministry of Economic Development and Energy of Russia agreed to adopt an action plan to optimize energy supply in Abkhazia. The agreement envisages a gradual change of the tariff, as well as the installation of meters, which will start from Sokhumi in 2022. In addition, the Russian investment program will allocate RUB 4.7 billion for the reconstruction of energy infrastructure during five years.