Abkhazia protests Russian agreement
On the morning of November 15, a mass protest erupted in Abkhazia as parliament prepared to discuss ratifying the Russia-Abkhazia investment agreement. The opposition and much of the public have strongly opposed the deal since its inception.
Critics label it as exploitative for Abkhazia, mockingly referring to it as “benefits for oligarchs.”
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What sparked protests over the agreement?
1. The agreement grants Russian investors an eight-year exemption from customs duties on imported construction materials and equipment, as well as from property and profit taxes.
2. The value-added tax for investors will be reduced to just 5%, half the standard rate.
3. The Abkhazian government is required to prioritize investors covered by this agreement, listed in a special registry, by granting them preferential access to energy resources and connections to infrastructure and utilities.
4. Investors are allowed to use land allocated by the Abkhazian government as collateral for bank loans. Consequently, if an investor defaults, the bank could claim the land.
Opponents of the agreement argue that it will deal a severe blow to local businesses, which cannot compete with Russian companies under such conditions. Moreover, they believe the agreement poses a threat to the security of the republic.
In response to the protests, the speaker decided to postpone the parliamentary session. However, the approximately 10,000 people gathered outside the parliament are demanding a more decisive approach: convene the session, vote against ratifying the agreement, and remove it entirely from the agenda.