Day: November 14, 2024
Abkhazia opposes Russian investment deal
A campaign against the Russia-Abkhazia investment agreement is gaining momentum in Abkhazia. On 15 November, the parliament will consider ratifying this agreement, already signed by the Minister of Economy.
However, given that the opposition and a significant portion of the public are strongly against it, the draft may well be rejected.
Across different regions of Abkhazia, citizens are meeting with their deputies to urge them not to ratify the agreement. On 12 October, following one such meeting, five opposition members were detained on hooliganism charges. In response, the opposition held a protest, leading to their release.
This incident further intensified the conflict between the public and the government, represented by President Aslan Bzhania, who is promoting the agreement, which the opposition has dubbed “privileges for oligarchs”.
The agreement provides that Russian investors will be exempt from customs duties on imported construction materials and equipment for eight years, as well as from property and corporate profit taxes.
The VAT rate for investors will be only five percent, half of the usual rate.
Additionally, the Abkhazian government is obliged to grant investors under this agreement, who are listed in a separate registry, priority rights for energy provision and connections to infrastructure and utilities.
Finally, investors are entitled to mortgage land provided by the Abkhazian government as collateral with a bank. Consequently, if an investor fails, the bank could claim this “public” land.
Opponents argue that the agreement would deal a fatal blow to local businesses, which simply cannot compete with Russian businesses on such terms. Moreover, they believe it poses a threat to the republic’s security.
- Three threats posed by the agreement on Russian investments in Abkhazia. Opinion
- “The President of Abkhazia is lobbying the interests of Russian oligarchs to stay in power.” – Opinion
The strategy of “awareness talks” with deputies has proven highly effective: by the morning of 14 November, 12 out of 35 parliamentary deputies had officially stated they would vote against ratification.
On 15 November, the opposition plans to hold a protest outside the parliament. If they manage to block the ratification, Aslan Bzhania’s chances of re-election in the February 2025 presidential election will be close to zero.
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Abkhazia opposes Russian investment deal