The governments of Abkhazia and Russia signed an agreement allowing Russian companies to implement investment projects in Abkhazia. According to the press service of the Ministry of Economy of Abkhazia, the document was signed by the Deputy Prime Minister, Minister of Economy of the Republic Kristina Ozgan and Minister of Economic Development of Russia Maxim Reshetnikov.
The agreement regulates the implementation of investment projects and defines the rights and obligations of the parties, establishes support measures for legal entities carrying out investment activities in Abkhazia.
“The agreement will attract additional Russian investments into the republic’s economy and thus contribute to the development of agriculture, manufacturing, tourism, sanatoriums and recreation,” Reshetnikov explained. “The document is also important because its action is aimed at the development of supporting infrastructure: gas supply, water supply, heat supply, transport, social and digital infrastructure.”
Christina Ozgan noted that investments play a key role in stabilizing the economic situation in Abkhazia.
“Lately there has been great investment activity in the republic. In 4 years, the volume of investments in fixed capital increased more than 2.5 times and exceeded 11 billion rubles. The positive dynamic is also evident in the growth of the average monthly salary, the growth of GDP and the doubling of the budget’s own income, he stressed. “It is important that we manage to demonstrate a qualitatively new approach: we are reducing the level of government investment and increasing the level of private investment. These are qualitative changes that the intergovernmental agreement will facilitate, since we are talking about very large investments. “These investment projects will fundamentally change the overall employment landscape in the republic.”
The procedure for the entry into force of this document provides for mandatory ratification in the People’s Assembly, the parliament of the Republic of Abkhazia.
