On October 30 in Moscow, Abkhazia’s Minister of Economy Kristina Ozgan and Russia’s Minister of Economic Development Maksim Reshetnikov signed an agreement to guarantee Russian investments in Abkhazia. This came as a complete surprise, as the draft agreement is still under discussion in the Abkhaz parliament, and the government is not authorized to sign such documents without parliamentary approval.
The draft agreement on guarantees for Russian investments in Abkhazia was submitted to parliament in the summer of 2024 and immediately faced strong criticism from the opposition and civil society due to unprecedented concessions offered to Russian investors. These concessions include, for instance, an exemption from tax and customs duties for a period of eight years.
- Three threats posed by the agreement on Russian investments in Abkhazia. Opinion
- Op-ed: Agreement on Russian investments in Abkhazia’s economy is exploitative and humiliating
During committee hearings, the parliament prepared 20 amendments to the draft agreement. However, the government insisted that the draft remain unchanged, claiming that otherwise, the Russian side would not sign it.
Parliamentarians argue that, as it currently stands, the agreement is harmful to both the economy and the security of Abkhazia.
In the midst of this, Alhas Barcits, the head of the parliamentary committee on international and interparliamentary relations, sent a letter to the government—without parliament’s consent—stating that only two issues remained in the agreement.
Minister of Economy Kristina Ozgan, after coordinating these two amendments with the Russian side, proceeded to sign the agreement. Yet, just a day earlier, the parliamentary speaker Lasha Ashuba had officially notified her that the agreement was still under review and that parliament had not authorized its signing.
Notably, Alhas Barcits appears on a list of preferential loan recipients from Russian banks, recently published by the Telegram channel “Abkhaz Portal.” It claims Barcits is to receive a loan of 1.2 billion rubles (around 12.5 million USD), a claim he has yet to officially deny.
“The absolute cynicism and disregard for the will of the people are astounding.
The strategy behind this simple scheme is clear: sign an agreement with the Russian side and, by threatening with all kinds of sanctions, push for its ratification in parliament,” stated Adgur Ardzinba, leader of the Abkhaz opposition.
In his view, the agreement is motivated solely by the desire for profit by certain individuals and poses direct threats to local entrepreneurs and the existence of Abkhazia’s national banking system.
“This agreement serves the interests of anyone but our state and people,” Ardzinba said.
He expressed hope in the prudence and resilience of the parliament members during the ratification process:
“We will stand with those who will not allow yet another anti-popular initiative to pass.”
Terms, place names, opinions and ideas suggested by the author of the publication are her / his own and do not necessarily coincide with the opinions and ideas of JAMnews or its individual employees. JAMnews reserves the right to remove comments on posts that are deemed offensive, threatening, violent or otherwise ethically unacceptable.