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Meeting of the Intergovernmental Commission of the De Facto Republic of Tskhinvali and Russia – a Summary

2023 / 02 / 10

Moscow hosted a meeting of the Intergovernmental Commission of the de facto republic of the Tskhinvali region and Russia. A delegation of the de facto government was headed by the so-called president, Alan Gagloyev, and a representative of a Russian delegation was the Deputy Chairman of the government, Alexander Novak.

The meeting discussed the Russian-funded investment program for 2023-2025 in support of the de facto republic, various types of Russian financial assistance and other issues.

The meeting of the Intergovernmental Commission was attended by the Minister of Economy of the de facto Republic, Dzambolat Tadtaev. According to him, issues discussed at the meeting will create an opportunity for further development of bilateral trade between Russia and the de facto republic. As he stated, bilateral trade in 2022 amounted to RUB 135.7 million (approx. USD 1 million 800 thousand), which is a 4.2% increase compared to 2021.

Tadtaev also presented a summary report of activities implemented in 2022 within the framework of the investment program. According to him, the de facto government has fulfilled all its obligations, except for budgetary investments which will completed in the future.

Dzambolat Tadtaev added that the work for the integration of the customs agencies of the de facto republic and Russia will also continue.

After the meeting, it was reported that Russia will help Tskhinvali with a total of RUB 6 billion in 2023. Funding will cover part of expenses of the “Republic” force structures, part of the salaries of “public servants” and other state expenses. In addition, in 2023, Russia will conduct an examination in the de facto republic to check the ongoing measures within the framework of the investment program.

The Minister of Justice of the de facto Republic, Oleg Gagloev, also attended the Intergovernmental Commission meeting. According to him, the meeting reached an agreement which plans increase in salaries for “public servants.” Also, the "parties" agreed on more active participation of Tskhinvali in the 12th St. Petersburg International Legal Forum.

On his part, Alexander Novak also evaluated the February 8 meeting. He said that Russian banks are ready to give a RUB 2 billion credit to entrepreneurs for the implementation projects in the occupied Tskhinvali region. The meeting also discussed the issue of attracting investors from Russia. Finally, the 2023-2025 investment program was approved, which provides for the implementation of 45 projects in the de facto republic. A total of RUB 3.5 billion (approx. USD 47 thousand) have been allocated for this purpose.

Novak also spoke about the importance of the protocol signed on February 7, according to which customs tariff and customs fee at the so-called border of the de facto republic of the Tskhinvali region will be identical to Russia and the member states of the Eurasian Economic Union. He expressed hope that this document will be ratified in the near future and will promote bilateral, simplified trade.

The previous meeting of the Intergovernmental Commission was held in Tskhinvali on April 19, 2019.

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