Abkhazia and Russia Sign Investment Agreement Amid Opposition Concerns
Abkhazian Political and Civic Groups Issue Statement on Investment Agreement
On October 30th, Abkhazia and Russia have signed an agreement allowing Russian legal entities to undertake investment projects within the republic, as reported by Abkhazia’s Ministry of Economy. Signed by Abkhazia’s Vice-Premier and Minister of Economy Kristina Ozgan and Russia’s Minister of Economic Development Maxim Reshetnikov, the agreement defines mutual responsibilities and establishes substantial support measures for foreign investors operating in Abkhazia.
Ozgan emphasised the agreement's critical role in stabilising Abkhazia’s economy, noting a marked increase in investment activity in recent years. She shared that investment in core assets has more than doubled in the past four years, surpassing 11 billion rubles ($110M). Alongside this growth, she pointed out, average salaries, GDP, and budget revenue have also more than doubled. “We’re able to demonstrate a new approach by decreasing state investments and increasing private ones, which brings qualitative changes that this agreement will enhance,” she said, underscoring the potential impact of these large-scale projects on employment and the broader economy.
The Russian Ministry of Economic Development expressed confidence that this agreement will attract new Russian investments in key sectors like agriculture, manufacturing, tourism, and infrastructure. Reshetnikov highlighted its importance in supporting the development of essential infrastructure, such as gas, water, heating, transport, social services, and digital systems.
Since 1 September, Moscow had suspended its funding of the Abkhazian budget, with this agreement being one of its stipulated conditions for resuming financial support. However, despite the potential financial benefits, the deal has met strong opposition, with critics arguing that it favours foreign oligarchs and threatens Abkhazia’s economic sovereignty.
Former Human Rights Ombudsman Asida Shakryl questioned the prioritisation of foreign investors over local businesses. “Why does the Abkhazian state prioritise foreign investors over local businesses?” she asked, criticising the lack of similar opportunities for Abkhaz business owners to access land. She urged Parliament to address these issues closely and assess the potential economic impact.
Other opposition figures have echoed these concerns. Leuan Mikaa, chairman of the Committee for the Protection of Abkhazia’s Sovereignty, argued that the agreement creates an imbalance by favouring privileged foreign companies over national businesses. Mikaa cautioned against land collateral obligations and the risks of local companies being marginalised. Lawyer Said Gezerdaa pointed out that the agreement bypasses protections meant to safeguard Abkhazian land, potentially giving foreign companies easier access than local business owners.
Economist Akhra Aristaa argued that the agreement threatens national businesses and the country’s budget. He explained that large amounts of foreign capital would operate outside Abkhazian jurisdiction, making it harder for local entrepreneurs to secure funding. Aristaa also voiced concerns about how the outflow of revenue could impact the budget and social services.
With the agreement signed, calls for transparency and a more balanced approach to economic independence continue to grow. Many in the opposition urge the government to consider the broader implications for Abkhazia’s local businesses and long-term economic stability.
Abkhazian Political and Civic Groups Issue Statement on Investment Agreement
A coalition of political parties and civic organisations in Abkhazia has released a strong statement following the signing of an investment agreement between the Government of the Russian Federation and the Republic of Abkhazia. This agreement, signed by Kristina Ozgan, Abkhazia's Vice-Premier and Minister of Economy, has sparked significant controversy and criticism, raising concerns about its impact on Abkhazia’s political situation and national interests.
Statement of the Parties and Civic Organisations Regarding the Signing of the Investment Activity Agreement in Abkhazia
The signing of the agreement by Kristina Ozgan between the Government of the Russian Federation and the Republic of Abkhazia is viewed as a cynical blow by President Aslan Bzhania against the fragile political situation in our country, and as a betrayal of the Abkhazian people, whose interests he swore to protect.
The citizens of the Republic of Abkhazia must be aware that Bzhania’s aim is to disrupt the upcoming presidential elections, as it is impossible for him to win them fairly. He has decided to hand over the Abkhazian state, earned through the blood and arduous trials of our brothers, sisters, and compatriots, to his oligarch friends, at the expense of the nation’s citizens.
When we reasonably proposed that these matters be presented to the public during the upcoming elections, Bzhania responded with an unyielding desire to push this agreement through at any cost, even at the price of severely escalating the socio-political situation in the country, willing to provoke conflict without regard for the consequences.
This does not surprise us, as he has never shown concern for our people, neither during the war nor during the blockade.
All responsibility for the future development of events rests solely on Aslan Bzhania.
Republican Political Party "Forum of National Unity of Abkhazia" (FNEA)
Republican Political Party "Apsny"
Republican Public Organisation "Aruaa"
Republican Public Organisation "Abkhazian People's Movement" (AND)
Republican Public Organisation "Our Capital"
Adgur Ardzinba: The government appears to overlook the will of the people, their representatives, public figures, and the intelligentsia.
Following the signing of a new Abkhazia-Russia agreement to offer incentives for Russian investors in Abkhazia, Adgur Ardzinba has spoken out, adding his voice to the growing debate. The agreement, signed by Abkhazia's Vice-Premier Kristina Ozgan and Russia’s Minister of Economic Development Maxim Reshetnikov, has stirred strong public opposition, with critics warning it could compromise Abkhazia’s economic independence.
Adgur Ardzinba has voiced his position regarding the recent agreement signed to provide incentives for foreign investors.
In his remarks, Ardzinba highlighted several concerns:
An investment agreement has ignited a storm of controversy and drawn sharp criticism across society. Intense debates are underway in the country’s Parliament, as the agreement has met with overwhelmingly negative reactions from experts.
Meanwhile, Deputy Prime Minister and Minister of Economy Kristina Ozgan travelled to Moscow and signed the agreement, ignoring widespread public opposition. The level of disregard shown for the views of the nation is nothing short of shocking.
The strategy here is clear: by signing the agreement with Russian counterparts, the authorities intend to push for its ratification in Parliament, using potential sanctions as leverage to ensure approval.
This agreement, driven solely by the profit motives of select individuals, poses direct threats to local businesses and Abkhazia’s national banking system. Its terms serve the interests of everyone but the nation and its people.
The current administration’s dismissive approach to making decisions that are pivotal for the country’s future has become all too familiar. The government appears to overlook the will of the people, their representatives, public figures, and the intelligentsia.
Once again, we hope for the wisdom and resilience of Parliament’s deputies. We stand ready to support those who will not allow another anti-popular initiative to pass.
Earlier, Leuan Mikaa also commented on the agreement, challenging its legitimacy. “The signed agreement cannot be legitimate without prior parliamentary approval and the consent of the public,” Mikaa stated. “We are aware of the deception that took place in Parliament and understand that Aslan Bzhania is acting in the interests of oligarchs, putting our land and sovereignty at risk. This step has stripped Aslan Bzhania of any remaining legitimacy. Power belongs to the people, and the time has come to reclaim it.”