Interview with President Badra Gunba: Priorities, Challenges, and Vision for Abkhazia’s Future
Originally published by ApsnyPress, this in-depth interview with President of the Republic of Abkhazia, Badra Gunba, explores the country’s most pressing political, economic, and social issues.
Originally published by ApsnyPress, this in-depth interview with President of the Republic of Abkhazia, Badra Gunba, explores the country’s most pressing political, economic, and social issues.
From public sector reform and energy sector challenges to healthcare, investment, and relations with Georgia, President Gunba outlines his administration’s key priorities and strategic vision.
He also discusses the importance of the Geneva International Discussions, plans for electoral reform, and the government’s commitment to supporting small and medium-sized businesses. The interview reflects a comprehensive overview of current governance in Abkhazia during a critical period of political and economic development.
Translated into English by AbkhazWorld.
Badra Gunba: “All of the pressing issues in our country must be considered priorities”
What are the key challenges currently facing the authorities that require urgent attention? How can the state administration be optimised? What should the foundation of dialogue with the opposition be? What measures are being taken to support small and medium-sized enterprises in the country? What is the current state of the energy sector? President Badra Gunba answered these and other questions in an interview with the Apsnypress news agency.
ApsnyPress: You have now been leading the state for two months. What has proven to be the most difficult aspect of these early days of your presidency? Did your expectations align with reality?
President Badra Gunba: As is known, following the political crisis of November 2024, the Head of State was compelled to resign. As the then-serving Vice President of the Republic of Abkhazia, I was entrusted with the responsibilities of the presidency until the upcoming presidential elections.
The challenges faced by our state are not new to me. I was well aware of them during my tenure as Vice President, a post I held since 2020.
Everyone recalls how critical the situation was with regard to electricity supply. Our citizens were left without power for 10 to 11 hours a day. With the support of Russia – our strategic partner and ally – we were able to partially resolve this issue. Naturally, much remains to be done in the energy sector, and we are committed to addressing it.
"We believe that these young individuals possess the necessary competencies and are capable of tackling the pressing issues confronting our state today."
As for the first two months following my formal inauguration as President of Abkhazia, this period has brought not only new opportunities but also a number of serious and important tasks. In accordance with the Constitution, the newly elected president is required to form a government capable of addressing both the immediate needs of the population and the broader objectives of systemic reform.
One of the key challenges we face is the limited pool of highly qualified professionals in public administration. This issue did not emerge overnight – I was fully aware of it. That is precisely why, during my election campaign, I launched a competitive programme for the selection of managerial personnel, titled Team Abkhazia.
As a result of this competition, several winners and finalists were appointed to key positions, including the leadership of certain ministries and agencies. We believe that these young individuals possess the necessary competencies and are capable of tackling the pressing issues confronting our state today.
I have placed great hope in this initiative and in the team that will be responsible for implementing the tasks ahead. This platform is intended to become the principal training ground for future leaders across various sectors of government.
– Which tasks do you consider priorities requiring urgent attention?
– All of the pressing issues currently facing our country should be considered priorities. These include matters related to the social sphere, the energy sector, water supply, improvements to road infrastructure, and the renewal of urban public spaces. We must continue working to find ways and means that will allow us to address these issues independently.
That said, I would particularly highlight the issues of demography and healthcare. These two matters are inextricably linked. Improving the quality of healthcare is a top priority for the country's leadership. As you may know, construction is currently underway for a new Republican Children’s Hospital and a facility to house an angiography operating theatre. Thanks to the support of the Russian Federation, our hospitals have been equipped with modern ambulances. This work will continue without interruption.
As you are aware, since February, a mass health screening programme for children has been conducted across the Republic. In total, Russian medical teams examined up to 30,000 children. This, too, is a reflection of our commitment to safeguarding the health of the younger generation – the health of the nation.
I recently visited the district hospital in Gudauta, where the CT scanner has been out of operation for a year and a half. You are all well aware of the story of this scanner – during the COVID-19 pandemic, thousands of our citizens underwent diagnostic imaging there. Repairing the scanner will cost 10 million roubles (130,000 US dollars), and I have taken the decision to allocate funding for this purpose.
Another important area is the development of sport. You may have noticed that multi-functional sports grounds and indoor sports facilities are being opened across all districts of the Republic. These developments are encouraging a healthy lifestyle among the younger generation – and ultimately, they contribute to the health of the nation.
Speaking of priorities, I would also like to note that there is public demand for reforming the system of state governance – streamlining administrative processes and addressing a range of fundamental issues. We intend to structure our work in such a way that we can comprehensively address all these areas simultaneously.
– You mentioned reforming the state governance system as a priority. As we know, discussions about optimising the public administration and reducing the number of government officials have been ongoing for many years. Could you explain why the government structure currently includes five Deputy Prime Ministers, 15 ministries, 10 state committees, and nine state departments and services? Is this not excessive for a country with a population of around 245,000?
– I agree with the idea of reducing the size of the bureaucratic apparatus, but I do not support the approach of “downsizing for the sake of downsizing.” The key point is to ensure that any reduction in public sector personnel does not negatively affect the quality or timeliness of public services delivered to the population.
A mechanical reduction in the number of civil servants could be implemented even today, but doing so would immediately slow down administrative processes, which in many cases are still managed manually. In my view, any downsizing must occur naturally and progressively.
What is needed, above all, is the digitalisation of administrative processes and the overall digital transformation of the public sector. I am confident that this approach will lead to better optimisation of human resources, improvements in service quality, and faster delivery of government services.
As for the current structure of the Cabinet of Ministers, I will say this: the present configuration was inherited from the previous administration. In my view, this version of the government structure does not adequately meet the challenges of the present day, and therefore it will be reviewed and revised gradually and systematically.
– Less than two years remain until the next parliamentary elections. What is your view on introducing a mixed majoritarian-proportional system for electing the Parliament?
– Indeed, the upcoming elections in 2027 will be a significant event, and we must approach it with awareness and responsibility. In my view, the current majoritarian electoral system is outdated and no longer reflects the will of the majority of voters. I am currently considering submitting to Parliament a draft electoral reform, which proposes a transition to a mixed proportional-majoritarian system.
I am confident that such a reform would strengthen the institution of popular sovereignty and help to prevent many of the political disagreements currently present in our society.
– The lack of constructive dialogue with the political opposition has often been a cause of political crises in Abkhazia. How do you intend to build relations with opposition forces?
– The opposition is an integral part of any modern state. A healthy opposition gives added impetus to a country's development. We intend to pursue constructive dialogue with all political forces in our country whose activities are based on sound principles.
I believe it would be difficult to accuse me of refusing dialogue with the opposition or with individuals representing different political factions. Whatever position I have held, I have always been open to dialogue. Moreover, I consider constructive dialogue to be one of the fundamental pillars of stability in both society and the state.
The culture of political dialogue is also of great importance. It is unacceptable to undermine the foundations of the state or to engage in actions that threaten our national security merely to achieve short-term political goals.
Regrettably, we have witnessed such instances – including during the last presidential elections. Is it acceptable for an armed attack to occur at a polling station?
We must all learn to build normal, civilised relationships within our society and our state, and to conduct political dialogue in the name of strengthening our country. Preserving peace and stability is our highest objective.
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– How would you assess the current state of the national economy? What reserves do we have for increasing the revenue side of the state budget?
– In recent years, the socio-economic indicators of the Republic of Abkhazia have shown consistent growth:
Since 2020, the country’s GDP has increased by 2.8 times, reaching 88.8 billion roubles (1.1544 billion US dollars) by the end of 2024.
Per capita GDP stands at 364,000 roubles (4,730 US dollars) and continues to rise.
A number of major investment projects are being implemented in the fields of industry, transport, and tourism.
Budgetary investment is being directed towards infrastructure development to create a favourable environment for business growth.
The republic’s potential – shaped by its geographic and climatic advantages, its reserves of fresh water, thermal and mineral springs, and raw materials for the construction sector, opens up new opportunities for entrepreneurial activity.
From the state’s perspective, business is seen as a key driver of development, of job creation, of increased competition and product quality. Accordingly, the government’s tax policy is evolving, and new mechanisms are being created to support entrepreneurial initiatives.
Currently, we are working on implementing a simplified taxation system. Under this system, four existing taxes – corporate income tax, VAT, property tax, and personal income tax for individual entrepreneurs – would be replaced with a single unified tax.
The tax rate under this simplified system is set at 6%, which is lower than the existing rates: VAT and income tax are currently at 10%, and corporate income tax at 18%.
The government is also taking conscious steps to simplify administrative procedures. This simplified tax regime allows entrepreneurs to spend less time and resources on bookkeeping. It is convenient for businesses and eliminates the need to hire large accounting teams.
Taken together, the measures being implemented to support investment activity and the efforts of fiscal authorities are helping to create a more favourable environment in which entrepreneurs can engage in honest business with greater ease.
– Discussions around the introduction of a unified social tax have been ongoing for several years. What is your position on this matter?
– The issue of a unified social tax is indeed a significant one, and it has been under discussion in many countries, including Abkhazia. Allow me to explain in detail what this tax entails, what advantages it offers, and how it might impact the economy and the social sector.
A unified social tax is a consolidated levy that replaces several separate social contributions and taxes related to the financing of social programmes – including pensions, health insurance, support for war veterans of the Patriotic War of the People of Abkhazia, the implementation of the repatriation programme, various welfare payments, and more. Instead of making multiple individual payments, employers pay a single tax, which is then distributed among the appropriate social funds.
At the same time, it would be possible to reduce the overall rate of previous contributions (for example, from 21% of the wage fund to 18%) while maintaining proportional distribution across the relevant funds. The administrative responsibilities could be transferred to the tax authorities.
Some of the advantages of introducing a unified social tax include:
Simplified tax administration: Instead of filing multiple reports and payments, businesses and individuals pay a single tax. This reduces bureaucratic burden and administrative costs.
Increased transparency and reduced corruption: A unified system allows for better oversight of both revenues and expenditures, thereby reducing opportunities for corrupt practices.
Incentivising formal employment: A simpler system, combined with a lower overall tax burden, could reduce the prevalence of undeclared wages, as employers would find it easier to meet their tax obligations. Implementing personalised payment tracking by the administrator will also play a crucial role.
Greater flexibility in managing social funds: Centralised income flows facilitate fairer redistribution and more effective management of funding for social programmes via dedicated extrabudgetary funds.
The introduction of a unified social tax is a promising reform that could lead to significant improvements in both social security provision and tax administration in Abkhazia. However, its successful implementation requires a thorough analysis of the current system and a careful calculation of the optimal rate. The tax rate must be balanced, high enough to finance social obligations, but not so high as to place an excessive burden on businesses. Transparent communication and dialogue with the business community and the wider population will also be essential.
– Representatives of small and medium-sized businesses in the tourism sector have voiced concerns about being undercut by the dumping prices of large hotels. How can we prevent the collapse of small businesses in this field?
– In order to maintain demand for accommodation owned by small and medium-sized businesses, several steps must be taken, both by the entrepreneurs themselves and by the state.
From the government side, regulatory measures should include analysis of the tax base of accommodation facilities. This is one of the tools that could be implemented during the 2025 tourist season. In the longer term, there is a clear need to establish an antimonopoly authority.
It is also necessary to engage in dialogue with large accommodation providers who sign contracts with tour operators based on strict quotas and who play an active role in shaping market prices. As these contracts are typically signed at the end of the season, price policy for the upcoming season must be discussed well in advance. Going forward, it is also important to introduce a classification system for accommodation facilities. This would allow for categorisation when setting rigid quotas and better consideration of seasonal factors in service provision.
Property owners must learn to harness their competitive advantages – by improving quality and service, generating client loyalty, conducting effective outreach, and offering a unique product. Loyalty programmes, discounts, and perks for returning guests, along with the use of social media, websites, blogs, and other channels for promotion, can help them stand out.
The focus should be on strengthening one’s own business and improving service quality, rather than trying to compete on pricing while larger operators are still offering unsustainably low rates. Over time, as market conditions stabilise, price normalisation will follow.
– What opportunities does Abkhazia have to support small and medium-sized enterprises?
– Since 2022, the government has been implementing programmes aimed at supporting entrepreneurs running their own small businesses. One such programme is the agricultural support scheme, which received 350 million roubles (4.55 million US dollars) in funding between 2022 and 2024, with an additional 150 million roubles (1.95 million US dollars) allocated for 2025.
Another initiative is the programme supporting small and medium-sized enterprises (SMEs). Under this programme, 200 million roubles were allocated from 2022 to 2024, and 326 million roubles (4.24 million US dollars) in 2025 – of which 126 million roubles (1.64 million US dollars) constitute financial assistance from the Russian Federation.
In addition, in 2023, as part of the state socio-economic development programme for 2022–2025, a selection process was carried out to compensate entrepreneurs for the purchase of production equipment. This scheme received 25 million roubles (325,000 US dollars) in funding.
The practice of establishing small-scale enterprises has proven effective in many countries. A key factor is the personal motivation of each participant involved in such initiatives.
The increase in support for proactive entrepreneurs this year is a clear example of the government’s attention to its citizens. Anyone who wishes to build and understands how to achieve results should be given the support they need.
– We are all witnessing rising prices for almost all goods. Is there a plan to index the salaries of public sector employees?
– For several years now, the government has in effect been indexing the salaries of public sector workers. This has mostly applied to core categories of employees in education, healthcare, culture, sport, science, and social services. This has been made possible, in part, through agreements reached with the Russian Federation under signed financial assistance arrangements.
This year, the wage fund for a number of public-sector bodies has been increased, including law enforcement agencies, state security services, and entities in the communications and media sector, as well as other public administration departments. This process is ongoing. During the course of the year, further salary indexation is planned for social sector workers, educators, medical personnel, and scientific researchers.
– As we all know, the energy sector is facing significant challenges. What can the public expect by autumn?
– Preparations for the autumn-winter season are already under way. This includes a set of measures designed to reduce atypical and unmetered electricity consumption. A programme is currently being implemented to install modern metering devices, which on the one hand ensure accurate tracking of electricity use, and on the other, encourage energy efficiency and responsible consumption among users. Approximately 28,000 meters have already been installed across the country.
Work also continues to combat illegal electricity use within the network. As a result, total electricity consumption in 2024 was 150 million kWh lower than in 2023. Increasing collection rates – and thereby boosting revenue – is one of the most important tasks for sales departments, and this goal has already been set. High collection rates will allow the Republic to procure electricity in greater volumes with its own funds, especially under conditions of energy shortage.
Our Russian colleagues have expressed their full willingness to provide support and assistance. In mid-May, Russian technical specialists, together with Abkhaz energy experts, carried out an audit of the national power grid. Once all stages of the audit are completed, the findings will inform recommendations under the programme to improve the reliability of Abkhazia’s power infrastructure.
In addition, RUE Chernomorenergo (Abkhazia's State-owned energy company) continues work on the development and restoration of the electrical grid, including infrastructure modernisation, the replacement of outdated lines, and the introduction of advanced technologies to enhance the reliability of power supply.
– The Geneva International Discussions on Security in the South Caucasus are often criticised for failing to produce a legally binding agreement on the non-use of force between Georgia and Abkhazia. What is your view on this?
– At present, the Geneva International Discussions on Security and Stability in the South Caucasus are the only diplomatic platform through which the Republic of Abkhazia can convey its position and present an accurate picture of developments to key international actors such as the United States, the United Nations, the European Union, and the OSCE. It is the sole international format where representatives of the Republic of Abkhazia engage in dialogue with Georgia, which launched a war against our country in 1992.
"We remain committed to continuing [the Geneva Discussions], thereby reaffirming Abkhazia’s openness to dialogue."
In Abkhazia, opinions on this negotiation format are divided. The most frequent criticism is the lack of progress in agreeing upon and signing a legally binding document on the non-use of force between Georgia and Abkhazia, due to the highly obstructive stance of the Georgian side.
However, it is important to understand that diplomacy does not always allow for rapid progress on such matters. We remain committed to continuing this process, thereby reaffirming Abkhazia’s openness to dialogue.
The Republic of Abkhazia and Georgia hold diametrically opposed positions on key issues, and this remains a fundamental obstacle to achieving mutual understanding.
Nonetheless, the Geneva Discussions do have their positive aspects. As I mentioned, they provide an opportunity to communicate our position directly to influential members of the international community. Furthermore, a number of humanitarian issues have been addressed through this platform.
One such issue, discussed within the second working group of the Geneva Discussions and given special attention by the Abkhaz side, is the recognition of the Abkhaz national passport as a document that enables international travel. Our representatives raise this matter consistently at each round of negotiations. Not all Abkhaz citizens hold second (Russian) citizenship, and due to the non-recognition of Abkhazia’s national passport, they are unable to travel abroad – for example, to receive medical treatment or to address other urgent humanitarian needs. This constitutes a blatant violation of fundamental international principles, including the right to freedom of movement.
The primary objective of the Geneva Discussions remains the signing of a legally binding agreement on the non-use of force between Georgia and Abkhazia. This is crucial not only for ensuring the peaceful and stable development of Abkhazia, but also for reinforcing the regional security architecture.
– You recently took part in the Caucasus Investment Forum. Could you share your impressions? What benefits do such events bring to Abkhazia?
– The Caucasus Investment Forum is an opportunity for North Caucasian entrepreneurs to present themselves and their projects. The forum showcased both planned and ongoing investment initiatives across various sectors, including agriculture, tourism, and industry. Projects related to airport development were also presented – such as the recently opened passenger terminal at Mineralnye Vody International Airport, and a proposal to develop Arkhyz Airport. Special attention was given to the North–South International Transport Corridor, a major logistical initiative aimed at connecting Russia, Iran, India, and other countries.
For the Republic of Abkhazia, participation in such international-level events provides an opportunity to present our country in a new light. Our delegation showcased to the Prime Minister of Russia and other forum participants the operational Vladislav Ardzinba Sukhum International Airport, as well as examples of Abkhazia’s national industrial output.
A large number of cooperation agreements were signed during the forum across a variety of fields. For our delegation, such events offer a valuable chance to attract investment, learn from the experiences and technologies used by our neighbours, and exchange knowledge with regional partners.
– President Gunba, thank you very much for the interview.
– Thank you as well. I wish Apsnypress continued success and more good, diverse news stories.
First published on AbkhazWorld.com