Abkhazia’s Parliament to Discuss Ratification of Russian Investment Agreement
The committee urged full parliamentary review of the agreement's ratification.
SUKHUM / AQW'A — Abkhazia’s Parliament is set to debate the ratification of an intergovernmental agreement with Russia concerning investment projects by Russian entities within the Republic of Abkhazia. This discussion follows a meeting of the parliamentary committee on international relations held on 8 November, where the agreement and its proposed amendments were closely examined.
The session saw attendance from several key officials, including Deputy Prime Minister and Minister of Economy Kristina Ozgan, who detailed the Ministry's stance on 20 parliamentary amendments proposed for the agreement. The agreement, initially debated in its draft stages, has undergone various suggested changes, with feedback from the Russian side and additional commentary provided by the Abkhazian government.
Minister Ozgan highlighted a significant clause, the minimum investment threshold of 2 billion rubles ($20 million) for Russian projects in Abkhazia, which is intended as a protective measure. She explained that while some amendments suggested lowering this threshold to encourage agricultural and other sector-specific investments, the Ministry advocated maintaining or even raising it to prevent excessive competition that could challenge local businesses.
Amendments proposed by deputies also addressed investor obligations, specifically in areas such as the construction of multifunctional complexes. MP Kan Kvarchia voiced concerns about the possibility of these developments including apartment buildings, which could potentially open the door for unintended urban expansion and external ownership. Kvarchia noted his opposition to the agreement in its current form, arguing that the executive branch had disregarded parliamentary consensus on certain modifications.
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Another area of debate involved legal safeguards on property. The current draft allows investors the right to mortgage their assets, a stipulation in line with Abkhazia’s civil and land codes. Minister Ozgan argued that adding restrictions, as proposed in one of the amendments, would negatively impact the investment climate by imposing limitations on investors’ rights.
Finance Committee Chairman Beslan Khalvash expressed concerns about preserving fair opportunities for local entrepreneurs, cautioning against policies that could lead to monopolistic practices or place undue burdens on Abkhazian businesses. He underscored the importance of equal treatment in investment activities for both domestic and foreign businesses.
Several deputies, however, voiced support for the agreement, stressing the importance of Russian investments for Abkhazia’s economic growth. Defence and National Security Committee Chairman Demur Shergelia noted that while the concerns surrounding multifunctional complexes remain, the agreement as a whole is essential for the republic’s development.
Following extensive discussions, the committee on international relations recommended presenting the ratification of the agreement to a full parliamentary session for further deliberation.