Abkhazia and South Ossetia hit by ban on Russian fuel exports, prices expected to rise

Abkhazia and South Ossetia have fallen under a temporary ban on the export of Russian petrol, although it did not initially affect them. Economists predict that this will lead to an increase in prices for products and many other things.

Due to the fall of the ruble and the rise in world oil prices, Russian fuel producers found it more profitable to export their products, which caused a deficit in the domestic market. That is why Russia imposed a temporary ban on exports of petrol and diesel fuel on 21 September.

Initially, the decree specifically stated that the export restrictions did not apply to Abkhazia and South Ossetia. However, two days later, Moscow removed them from the list of exceptions without explaining why.

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Meanwhile, over the past three months prices for petrol and diesel fuel at Abkhazian petrol stations have increased by 20%, and continue to grow.

The Abkhazian authorities reassure that despite the temporary ban imposed by Russia, fuel supplies will not stop, as they are carried out under existing contracts within the quotas stipulated in the agreement “On the regime of trade in goods” of 28 May 2012.

But economists are of a different opinion. According to their forecasts, in Abkhazia the price increase may by 25%, and in South Ossetia by 30%. And this, in turn, could lead to an increase in the price of almost everything else – from public transport fares to foodstuffs.

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