There we go... Happy new Year :-) , I am back from longer vacation, since last mail a new, old president was chosen, a new Prime Minister was named and also the economy did move on....
Now, after many talks outside Abkhazia, i was often asked about 12`th questions again and again. To show them in here... realy makes sence, i hope it explain a bit about the Country.
Here they are...
1`st Is Abkhazia a part of Russia now?, also in economics?.
A: Abkhazia since August, 2008 even more depending on Russia than earlier. However, this is a natural and in my opinion also positive development of the Abkhasian economy. One had to look the Country 15 years ago, as the respected gross national product of Abkhazia probably 1/XX of today was. If economy was made, it was an absolute smuggler economy and every real economic activity was excluded by the closed borders to Russia and Georgia. In the years 1995-2001 Russia and his economy has played little role for the abkhazian economy. Products and services were introduced from Georgia or Turkey to Abkhazia and vice versa. The economic dependence started only by the politics of the opener borders through Russia since 2001 and the strong fight against smuggler groups by Georgia, which did "act" on the Georgian-Abkhasian border. The Main Force of russian Economic influence in Abkhazia are this might of millions of tourists since 2001 and also offering of services and import of goods to Abkhazia. However, the balance of trade deficit is clear on the side of Russia. The border to Georgia is actual very closed. The export of Abkhasian goods to Turkey are mostly stoped because of the attacks of the Georgian coastguard on turkish vessels. This promotes even more the one-sided economic dependence on Russia which the president of Georgia seems to support.
2`nd Question. Is there any influence of Georgia in Abkhazia, according to international Law, Abkhazia is part of the georgian State and georgian law dont accept economic activity?
Under international law this might be right, nevertheless, de facto this law is not in force. Moral question is quite easy to answer, for me, and the economy is well even with out Georgia. Few States did accept the Independence of Abkhazia and the most important seems to be the today population of Abkhazia which strongly believe it needs to be not part of any georgian statehood.
Besides I strongly believe that economy needs realities and not dreaming . So what brings a Georgian law in Abkhazia if this law no organs has to effect it on the ground. Of course there are over and over again cases of confiscated Turkish "blockade breakers" by Georgian forces in the black sea or the arrest of mostly visitors from Abkhazia in Georgian because of border crimes. However, nevertheless, in most cases the Georgian public prosecutors have no ground to work against foreigners in Abkhazia. There are no Georgian policemen in Abkhazia and on the other hand kidnapping of freighters in international water is quite clearly a case of piracy even if this is made by state organs. On the other hand the georgians are pritty weak, thats completely clear. I do have doubt if any western company get problems by Georgian court outside Georgia, even if these companies located in EC. In Germany, Switzerland or Holland the constitution would hardly admit such a thing like „deocopation-crime“. The georgian law on Abkhazia was even criticised by the UN authorities and for sure hardly Correspondent with the European convention on human rights.
If a woman is taken from Germany to Iran only because it is searched there because of adultery, the german court would be punished by constition. In the western legal traditions there is not such a stuff like De-occupation crime. According to Georgian law every inhabitant of Abkhazia has to be arrested, if he without Georgian approval the border of Abkhazia to Russia passed. Abkhazia must be completely bolted, therefore a lot of inhabitants of Abkhazia should face a Georgian jail, because of this "injured" Georgian laws.
But on the other hand that "junk in paper" not realy creats much concerns in Abkhazia. Georgia does not have the possibilities to prevent economy in Abkhazia. Most commercial-competent in Abkhazia are citizens of the Russian federation or Turkey and they know the danger of Georgia and never visit therefore this Georgian Republic.
3`rd Question: Are there any possibilities of a new War between Georgia and Abkhazia?
A: No, during the next years and maybe decades a war between Abkhazia and Georgia cannot take place any more. The reason are not, however, the European observers on the borders but the russian defence policy. The troops of Abkhazia and the army of Georgia are separated by buffer zones, the Russian border guards are between both parties and guarantees the security of Abkhazia. Every attack on Abkhazia would lead as a reaction to a counterblow from Russia on Georgia. Therefore it could lead only to a short war between Russia and Georgia and mostly on the territory of Georgia, however, between Abkhasian troops and Georgian forces there is no chance for any battle.
The realistic possibilities of the Georgians is limited to some old combat helicopter, infantry and a few heavy weapons.
4`th Question: How do you sent money to Abkhazia?, Abkhasian banks are not connected to the international banking system.
A: Yes, Abkhasian banks are not connected directly to the international banking system, however, here they use russian proxy banks. The money is sent therefore only to a bank in Russia and from there (the Abkhasian bank has there an account) the money is mostly sent for 1% to Abkhazia.
Technically the bank in Abkhazia pays to them the amount if they see the Money on there russian account.
The usual way by the central banks is not working, Abkhazia is nor integrated therefore in world nor russian banking system completely.
Cash is the main way from and to Abkhazia,besides there are cash transfer systems like MINOG also provide services.
5`th Question: Is it possible to buy real estate in Abkhazia ?
No, in Abkhazia the purchase is forbidden by law, only leases are possible. However, flats and houses can be bought by juridical ones, however, no private people and just citizens of Abkhazia or those who are resident in Abkhazia. Again, Real estate can not be acquired by marriage or non abkhasian person.
Most fraud happens with this legal lack of clarity, with the time the Abkhasian legislation will probably change, however, just by russian pressure. It is to be expected the Russian law soon will be copied by Abkhazia and converted in to clarity.
6`th Question: if there is enough infrastructure in Abkhazia?
No, Abkhazia is completely underdeveloped. There is no working civil airport in Abkhazia, no efficient road-system or a railway with modern railway stations.
The harbours do have very tinny storage, almost no possibilities for cargo or loading, electricity is very cheap, nevertheless there are not enough Network for industrial electricity. Every industry already fails because of the attempt to get enough electricity and water from pipe.
Here a lot of work is to be made and I expect a lot of investments in to the infrastructure, not only motorway but also in the power supply lines and in the water supply. The airport should be opened during the next months and the harbours repair themselves.
7`th Question: Is there is a functioning court system in Abkhazia. Are investments protected?
A: No
8`th Question: Can the value added tax taken back for a cargo delivery to Abkhazia?
A: For Imports from Russia this practise is made. Turkish imports to Abkhazia are refunded with the note (Georgia).
Stamps of the Abkhasian custom office are valued in Turkey as Georgian ones. VAT can taken back.
9`th Question: By which currency trade in Abkhazia are made?
Can euros be traded?
A: The official currency in Abkhazia is the Russian rouble. Almost all shops in Abkhazia take the rouble. However, ships from Turkey are paid with USD and are traded later then to rouble.
Euros used in Abkhazia only as a reserve currency. Money is converted in to euros, however, there is not an active role in trading.
Turkish lira, georgian Lari and other regional currencies are not traded in Abkhazia.
USD and euro are traded in bad prices, more bad as in Sochi. Every business activity is recommended in russian rouble.
10`th Question: Is the security situation stable in Abkhazia? robbery? thefting?
A: There are some areas in Abkhazia a visitor should avoid.
The border region to Georgia is completely contaminated by bandits, already at Soviet times the population there organised crime.
Though by the Russian border troops the situation has improved, nevertheless, i do advise not to visit this border-region.
The security situation in the capital and in the other towns is the same dangerous, relatively like Varna in Bulgaria or Nizza in France.
Abkhazia is like every country after a war, poor and the youth often with out jobs or much money.
The police forces are corrupted and the clan economy hardly admits positive police work. Though raids are not in the agenda, however, i did see them, but, theft and burglary is with the exception the biggest problem in Abkhazia. I do advise not to show bigger wealth in Abkhazia and also no walks at night in unguarded areas or places with out crowd.
The inhabitants of Abkhazia are very hospitable and the advice should be taken by these people.
These people very often wonderfully care for guests.
11`th Question: Would be a NATO Georgia, changing the power in Abkhazia? does the European Union play a role in Abkhazia?
A: Georgia as a member of Nato would completely harden the fronts, but change nothing in the structures . Neither economically nor politically and also not militarily this would bring a change.
Russia as a protector of Abkhazia would simply allow to guarantee the troops in the country and therefore the security of the state. The EU exactly like NATO play no role in the political life in Abkhazia. There are no friends of these both organisations, nor any influence.
12`th Question: Over and over again we read about human and economic contacts between Georgia and Abkhazia, is there readiness of the Abkhasian and Georgian economy?
A: The Georgian laws forbid every trade with Abkhazia, in this respect there are virtually no relations between Georgia and Abkhazia more. The readiness is for sure there, certainly from both sides and for both it would bring only advantages. I do not think from the Abkhasian political side an economic nearness to Georgia not wanted. However, without interstate contracts such a „communication“ brings again a smuggler economy like it was after the war 1992-1993
