Distrust in authorities triggers scandal with investment project in Abkhazia

The behind-the-scene format of discussing a large investment project for the construction of a dwelling settlement has caused resonance in Abkhazia. Residents demanded not to sell land to foreigners, as they perceived a threat of frauds with investments, because of which their amount could then become a burden on the republic's budget, the analysts interviewed by the "Caucasian Knot" have pointed out.

The resonance among residents of Abkhazia evolved after the report that local authorities were negotiating a deal involving a sale of land, since the territory of the republic is small; and, therefore, the land issue is very sensitive, said Izida Chaniya, the editor of the "Nuzhnaya Gazeta" (Needed Newspaper).

"500 hectares of land is a very large area for us. The second factor is the letter itself. If you look into the text thereof, you will see that it is written in a very strange language for an investor. This has caused great suspicion that this was not a serious project, but about some kind of fraud," she told the "Caucasian Knot" correspondent.

Abkhazia was already in debt when it accepted a two billion rouble loan from Russia in 2008 to rebuild the railway, Ms Chaniya has added. “Most experts believe that this is a gamble like the loan project for railway reconstruction. We were promised that some business would pay for this project, but in the end we have all been paying for this project for many years," she has explained.

Residents of Abkhazia were especially alarmed by the fact that the investor demands a guarantee for the investment of six billion euros. This amounts to 35 Abkhazia's annual budgets, Izida Chaniya continued. "That is, the money is incomparable with our budget," she has emphasized.

According to Kirill Bazilevsky, a blogger, the behind-the-scene nature of negotiations on a major deal has sparked the greatest resonance among residents. The guarantees for investments also raised public fears that the debt would subsequently fall on the Abkhaz budget. At the same time, there is very little information about the project. "Elementary mathematical calculations easily show the discrepancy between the declared investments and the project as such," Mr Bazilevsky has concluded.

This article was originally published on the Russian page of 24/7 Internet agency ‘Caucasian Knot’ on July 8, 2022 at 09:26 am MSK. To access the full text of the article, click here.