President Gunba Addresses Parliament with Broad Reform Programme

SUKHUM / AQW'A —  President Badra Gunba has outlined an ambitious programme of economic reform, infrastructure investment and social policy expansion in his annual address to the Parliament of the Republic of Abkhazia, framing 2026 as a pivotal year for strengthening state institutions and reducing structural vulnerabilities.

Speaking after a year marked by political turbulence and early presidential elections, President Gunba said the country’s priorities must now centre on stability, public trust and long-term development. He described openness and dialogue as essential to rebuilding confidence in governance, while reaffirming Abkhazia’s commitment to sovereignty, security and closer integration with strategic partners.

The address, delivered in accordance with the constitution, covered domestic and foreign policy, economic performance, public services, defence and demographic challenges. The President also announced that 2026 would be declared the “Year of the Village”, signalling a renewed focus on rural development.

Economic growth and public finances

President Gunba reported strong headline growth in the national economy, while acknowledging persistent structural constraints. According to official data, Abkhazia’s gross domestic product exceeded 90 billion roubles (1.17 billion US dollars) in 2024, representing a year-on-year increase of approximately 30 per cent.

Foreign trade turnover for the first eleven months of 2025 reached 54 billion roubles ($702 million), up 6.8 per cent on the same period in 2024. Growth was recorded in imports of machinery and equipment, while exports of agricultural produce, wine and fish products were maintained.

Domestic revenue performance was described as “stable but insufficient”. Own-source revenues amounted to 12 billion roubles ($156 million) in 2024, exceeding the original budget plan. For 2025, revenues were budgeted at 12.77 billion roubles ($166 million), with actual receipts expected to reach 13 billion ($169 million). The government has been instructed to raise own revenues to 13.5 billion roubles ($175.5 million) in 2026 through improved tax administration, enhanced customs controls and efforts to reduce the shadow economy.

The President stressed that rising domestic revenues had enabled increased funding for social payments, healthcare, energy infrastructure, youth programmes and support for small and medium-sized enterprises.

Investment and Russian financial support

Under the Investment Programme for Social and Economic Development, Abkhazia secured 2.919 billion roubles in financial assistance from the Russian Federation for 2025. These funds are being used alongside domestic resources to support capital investment projects across the country.

Public sector wages in healthcare, education, science, culture, sport and social services were increased in 2025 in line with bilateral agreements with Russia, at a cost of approximately 304 million roubles ($3.95 million). A further wage indexation is planned for 2026.

Small business and agriculture

The President identified small and medium-sized enterprises as the backbone of economic resilience and employment. Funding for the state programme supporting SMEs will rise sharply to 500 million roubles ($6.5 million) in 2026, compared with 125 million roubles ($1.63 million) in 2025.

Agriculture featured prominently in the address. In 2025, 150 million roubles ($1.95 million) were allocated to agricultural support, financing 342 projects nationwide. Around 160 hectares of perennial crops, primarily citrus orchards, were planted, while 60 farms received assistance for livestock and poultry production. Modern plant protection measures were applied across 30,000 hectares.

In a significant expansion, agricultural support is set to increase to 500 million roubles ($6.5 million) in 2026, the highest level of state funding the sector has ever received. The President also announced direct grants of 1 million roubles ($13,000) to every village in Abkhazia, allowing local communities to determine their own priority needs.

All agricultural and SME support programmes will be elevated to the status of national projects and placed under stricter oversight.

Infrastructure and transport

Infrastructure investment continued at scale in 2025, with 2.161 billion roubles ($28.1 million) allocated to 311 projects, including road repairs, water and sewerage systems, healthcare facilities, schools and flood prevention works. Funding included 1.2 billion roubles ($15.6 million) from Russian investment programmes and 970 million roubles ($12.6 million) from domestic sources.

A major road repair programme is expected to continue in 2026, with preliminary agreements indicating additional Russian funding of around 1 billion roubles ($13 million).

Transport connectivity was highlighted as a key driver of economic growth and tourism. Following extensive reconstruction, Sukhum International Airport resumed regular flights to Russia in May 2025. Since then, more than 550 flights have been operated, carrying over 120,000 passengers.

Rail transport has also expanded, with the launch of the “Dioskuriya” electric train service between Sochi and Sukhum. More than 150,000 passengers have used the service, while total rail passenger traffic between Abkhazia and major Russian cities reached around 500,000 in eleven months.

The government aims to increase air and rail passenger volumes by at least 20 per cent in 2026 and to raise cargo throughput at seaports to record levels.

Energy security and reform

Energy was described as one of the most acute challenges facing the country. The President recalled widespread power cuts during the winter of 2024, when outages lasted up to ten hours a day.

Following an appeal to Russian President Vladimir Putin, humanitarian electricity supplies began in December 2024. In 2025, Abkhazia paid 670 million roubles ($8.7 million) for imported electricity, funded for the first time through consumer payments rather than the state budget.

An audit of the energy sector confirmed the need for approximately 12 billion roubles ($156 million) in investment. Consumption fell by 85.6 million kilowatt hours over eleven months in 2025, while the electricity payment collection rate rose to 53.2 per cent.

A phased modernisation programme will begin in 2026. Around 23,000 electricity meters will be installed in apartment blocks at a cost of 940 million roubles ($12.2 million), partly financed by 500 million roubles ($6.5 million) from the privatisation of a resort facility in the Gagra district. A second phase will install more than 37,000 meters in private homes at an estimated cost of 1 billion roubles ($13 million).

The President also announced plans to diversify energy sources, including solar power, and instructed the government to explore the feasibility of developing domestic gas resources.

Healthcare and social policy

Healthcare funding in 2025 exceeded 660 million roubles ($8.6 million) across ten targeted programmes, including treatment abroad, oncology care, infertility treatment and support for pregnant women.

A nationwide child health screening programme examined 27,000 children, identifying around 14,000 requiring ongoing medical supervision. Telemedicine services have been introduced, with more than 150 consultations conducted with leading Russian clinics.

A new angiography unit has opened at the Republican Vascular Centre, performing dozens of life-saving procedures in its first weeks. Construction of a modern children’s medical centre in Sukhum is ongoing with Russian support.

Social benefits were expanded, including higher pensions for war veterans and their families. More than 8,000 people will benefit from pension increases costing over 180 million roubles annually ($2.34 million). Childbirth benefits were raised to 35,000 roubles ($455) and will reach 50,000 roubles ($650) during 2026.

Education, language and culture

Education reform was framed as central to preserving national identity. The President announced new standards for teaching the Abkhaz language, updated textbooks and expanded digital learning tools. A new Education Law will be submitted to parliament in 2026.

Teachers of Abkhaz and Russian languages have received salary supplements, while rural teachers will be granted a 50 per cent discount on electricity costs. Forty-four school buses were delivered to rural areas in 2025, and repairs were carried out in thirteen schools.

Defence, security and foreign policy

Defence spending increased in 2025, with military training intensity quadrupling. Salaries for service personnel rose by an average of 25 per cent, and military pensions were indexed.

President Gunba reiterated Abkhazia’s reliance on strategic partnership with the Russian Federation as the cornerstone of national security and foreign policy. He confirmed continued participation in international security discussions and renewed calls for a legally binding non-use-of-force agreement with Georgia.

Looking ahead

Concluding his address, the President emphasised the need for political maturity, dialogue and shared responsibility. Declaring 2026 the Year of the Village, he said revitalising rural life was essential to safeguarding Abkhazia’s cultural and demographic future.

The speech set out a comprehensive policy agenda for 2026, combining fiscal expansion, institutional reform and close alignment with Russia, while acknowledging the economic and social pressures facing the republic as it seeks long-term stability and development.