Russia Suspends Aid to Abkhazia: Yushchenko on Challenges and Cooperation
Alexander Yushchenko, Member of the Russian State Duma.
From 1st September 2023, Russia partially suspended its financial aid to Abkhazia, marking a significant development for the region. The Foreign Minister of Abkhazia, Sergey Shamba, confirmed that this decision has impacted payments to doctors, teachers, law enforcement personnel, and other sectors. The reasons behind this move were discussed at a meeting attended by high-ranking Russian officials and the President of Abkhazia, Aslan Bzhania.
This article was originally published on the website of the Communist Party of the Russian Federation and has been translated into English.
According to the meeting minutes, Russia is pressing for the removal of restrictions on Russian investors in the commercial real estate market, the ratification of an agreement on mutual recognition of judicial and arbitration decisions, and the implementation of investment projects by Russian legal entities in Abkhazia. These demands have sparked a great deal of debate and raised numerous questions, both in Russia and in Abkhazia itself.
In an interview with RTVI, State Duma Deputy Alexander Yushchenko highlighted the importance of ratifying the agreement on mutual recognition of judicial decisions. He emphasised that, while it is necessary to harmonise jurisdictions, one must also bear in mind Abkhazia’s status as an independent state. Issues related to jurisdiction require discussion and compromise between the parliaments of both countries.
"The first issue concerns the ratification of the agreement on mutual recognition of judicial and arbitration decisions. Yes, it is necessary to align arbitration courts, but we must not forget that Abkhazia is also a sovereign state. If, for example, the jurisdiction of Russian courts extends to Abkhazia, then logically, the jurisdiction of Abkhazian courts should also apply in Russia. This is a topic of some debate, and I believe it can be discussed within the framework of the friendship group with Abkhazian parliamentarians, who, in turn, should hold broader discussions with elders and political forces to arrive at a compromise. After all, standing still is not an option."
Regarding restrictions in the commercial real estate market for Russian investors, Yushchenko noted that Russian citizens are allowed to purchase any commercial property, such as a business or an established hotel. "Yes, there is a contentious issue concerning apartments, and a law does need to be passed. However, the wording must be carefully revised."
"We need to regulate the quantity (starting with pilot projects, rather than tens of thousands of units), and perhaps demonstrate the positive impact of construction for the citizens, ensuring that it satisfies the majority of the Abkhazian population. The issue needs to be addressed comprehensively. But I have a counter question: in Russia, an apartment law was also introduced, submitted to the State Duma multiple times, and rejected repeatedly because it wasn’t thoroughly prepared."
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As for Russian legal entities implementing investment projects in Abkhazia, Yushchenko pointed out that one version of the law on investment climate—although he wasn't sure if it had been revised—stated that foreign investors entering the Republic of Abkhazia would be exempt from taxes and other payments, including VAT, for nearly 25 years, later amended to eight years. "But then what happens to local businesses? Should they simply cease to exist? Naturally, the local population is opposed to this, and they are rightfully concerned. Hence, we need to find a balanced compromise."
On the other hand, Yushchenko expressed that tremendous progress has been made in under three years by Abkhazian parliamentarians working alongside Russian colleagues, within the framework of a programme aimed at creating a unified socio-economic space between the Republic of Abkhazia and the Russian Federation, based on harmonising Abkhazia’s legislation with that of Russia. "To my knowledge, as part of this programme, the Abkhazian Parliament has passed over 27 laws and agreements in their final readings, and several more are under consideration. I can't recall such dynamic progress in legislation over the last decade."
Overall, there are many issues to resolve, yet it is clear that the people of Abkhazia are interested in promoting, strengthening, and expanding their cooperation with Russia—not under conditions dictated by oligarchs or developers, but through mutual collaboration and benefit, while preserving Abkhazian culture and heritage. "Just as our citizens travel to Abkhazia to experience its unique character, they aren’t seeking the urban sprawl of Sochi or Moscow. The local population is only 250,000 people, and they are deeply concerned about the future development of their country in close cooperation with Russia. What will happen tomorrow? Will they be washed away, forced to live in the mountains? Or will they remain masters of their own land, throwing open their doors to welcome their friends?"
"They are striving to preserve their identity and national character. We have a wonderful example in the Union State of Russia and Belarus, and President Aslan Bzhania has done, and continues to do, much to ensure that such a model is implemented."
Russian-Abkhazian relations, Yushchenko concluded, are not a Formula 1 race, speeding towards the finish line at 300 km/h. Rather, they are like a scenic mountain road with two-way traffic, where any sudden turn could send participants plunging into a deep Caucasian gorge.