ANALYTICS

Money ran out in separatist Abkhazia - for six months there is no funding from Russia

12.06.20 10:00


The economic crisis in separatist Abkhazia is acquiring ever more acute features. Usually, by June, the population, which received at least some income from tourists and holiday-makers from Russia, was "eating up" supplies, went into debt, but a new season began, and, in principle, could somehow survive with holiday-makers.

 

But this year, the coronavirus epidemic has broken all plans. There are no tourists. There is nothing to live without tourists in Abkhazia. Money from last season has long been "eaten up", debts accumulated. Trophy housing is empty - there are no vacationers, although decent money is often spent on repairs. And there is no income and is not expected to compensate for expenses.

 

Moreover, those residents of separatist Abkhazia who have bank cards recently come across surprises: it is almost impossible to withdraw money from ATMs. Some banks in separatist Abkhazia introduced temporary restrictions on the issuance of cash at ATMs.

 

The fact is that Abkhazia does not print its money, rubles are in circulation, and they fall on separatist territory only during international economic operations. And since the border is closed, the flow of goods has dropped to a minimum, the inflow of money has sharply decreased and there is simply not enough cash. The lack of money in separatist Abkhazia has become total.

 

So far, it is still possible to withdraw money from VISA or MasterCard at the banks' cash desks, however, for an additional commission of 2%. Also, in many stores you can pay by card. But how long it will last no one knows. It is possible that such opportunities will not be soon.

 

According to the puppet “president” of occupied Abkhazia, Aslan Bzhania, the budget revenues in recent months have been so low that there remains only the opportunity to cover the necessary expenses, including expenses for wages, pensions and health care. Bzhaniya emphasized that the Russian Federation suspended financing of infrastructure projects for six months and that many projects were postponed. Bzhaniya says his government has not yet received funding from Russia for 2020, although in December 2019 the Kremlin promised the Abkhaz separatists 4.5 billion rubles ($ 65 million).

 

Bzhaniya plans to go to Moscow at the end of June in order to try to beg for something from the Kremlin. But he is unlikely to succeed.

 

The “Presidency” of Aslan Bzhaniya coincided with the period of the coronavirus pandemic, when the Kremlin was simply not up to occupied Abkhazia. With the increase in the number of infected, the medicine of the Russian Federation suffered a collapse. Doctors are not paid the promised allowances, and ambulance teams on average even take four days to get to the patient.

 

Russia's economy is largely dependent on the oil sector. As a result of the coronavirus pandemic, world oil prices fell. Meanwhile, in 2014, when Russia came under Western sanctions and oil prices fell, the Kremlin significantly reduced its financial assistance to Abkhazia. But now the situation in Russia is much worse and there are simply no resources to provide puppets in the occupied territories of Georgia.

 

Therefore, the Kremlin does not care what will happen in the occupied territories of Georgia. Even hunger and riots in the same Abkhazia no longer excite him, since it is far from Moscow. The summer of 2020 in the separatist Abkhazia promises to be “hungry” and in many ways “hopeless”.

 

KavkazPlus

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