Asida Shakryl: "Why Are All the Benefits Reserved Exclusively for Foreign Entrepreneurs?

SUKHUM / AQW'A ― The Russian-Abkhazian agreement titled "On the Implementation of Investment Projects by Russian Legal Entities" has been submitted to the Abkhazian Parliament for ratification. Scheduled to be discussed during the parliamentary session on 7th October, the agreement proposes significant incentives for foreign investors.

Under its terms, foreign investors committing at least $20 million will receive tax exemptions for up to 25 years. However, the proposed agreement has sparked opposition, particularly from critics who argue that such favourable conditions disproportionately benefit foreign oligarchs and may undermine local economic autonomy. Concerns have also been raised about the long-term implications for Abkhaz sovereignty and economic independence, with fears that the agreement could lead to excessive Russian influence over key sectors of the economy.

Asida Shakryl, the former Human Rights Ombudsman of Abkhazia, has shared her opinion on the proposed investment law. Her full commentary is as follows:

In the thirty years since the war, despite its aftermath and the long-standing economic blockade of Abkhazia by the CIS, including Russia, local small and medium-sized businesses have managed to survive and are now showing growth, albeit in small increments. This is still noticeable progress. It should be noted that throughout these years, the authorities have not been able to offer any substantial national concept or programme for the development of small and medium-sized businesses, aside from a few unsuccessful attempts to finance individual projects, most of which ended in failure. Likewise, there has been no significant state support for entrepreneurs, whether through preferential loans or tax relief. Instead, an increased tax burden has led to the decline of small and medium-sized enterprises and a rise in the informal economy.

Why are all the benefits reserved exclusively for foreign entrepreneurs? Why does the Abkhazian state pay more attention to foreign investors than to local business owners? Why can’t Abkhazian businesspeople access Abkhazian land under the same conditions as foreign investors?

It must be acknowledged that over the years, the government has failed to create the necessary conditions for the systematic development of Abkhazia’s economy. However, despite this lack of government support, including the absence of favourable conditions for investment, local entrepreneurs – of whom there are many in Abkhazia – have succeeded in establishing their businesses. Today, dozens of competitive and successful enterprises can be named. This naturally raises questions from both entrepreneurs and the wider Abkhazian public: why are all the benefits reserved exclusively for foreign entrepreneurs? Why does the Abkhazian state pay more attention to foreign investors than to local business owners? Why can’t Abkhazian businesspeople access Abkhazian land under the same conditions as foreign investors?

Another important issue arises: why has the government not assessed the risks to the Abkhazian economy that could result from ratifying agreements that place local entrepreneurs at a disadvantage compared to large foreign investors? I believe that members of Parliament must have well-founded answers to these questions before voting on the Agreement proposed by the President regarding the implementation of investment projects in Abkhazia by Russian legal entities. The views of each MP on these matters, which will undoubtedly have a negative impact on the preservation and development of Abkhazia, must be made known to their constituents to avoid irreversible mistakes.

On 7 October, a discussion on the Investment Agreement, with the participation of President Aslan Bzhania, is scheduled to take place in the Parliament.

Several political organisations, including the Republican Political Party "FNEA," the Republican Political Party "Apsny," the Public Organisation "Aruaa," the Public Organisation "AND," and the Public Organisation "Our Capital," have previously addressed a formal request to the Speaker of Parliament, Lasha Ashuba, urging the inclusion of public representatives in the discussions.

In addition, the Council of Elders has appealed to Parliament, calling for the postponement of all contentious matters until a national development strategy is formulated.