Russian company demands $2 million from Abkhazia for dashed hopes
Debt for Sukhum Airport
Abkhazia owes more than $2 million to a Russian company that paid for the design and estimate documentation for the reconstruction of Sukhum Airport. The Abkhazian government has no intention of repaying the debt, stating that another Russian company, which will be responsible for restoring the airport, should cover it.
Sukhum Airport was closed in 1993 during the Georgian-Abkhaz war and has remained inactive since then. Currently, efforts are underway to restore the airport, led by a Russian investor. A significant portion of the public and opposition in Abkhazia view the project as unprofitable for the region.
Dashed hopes
In April 2022, the Russian joint-stock company Aero Management signed a letter of intent with the Abkhazian Ministry of Economy, providing a loan of 120 million rubles [approximately $1.3 million] to cover the cost of design and estimate documentation for the airport’s restoration. The company anticipated becoming the main investor in the reconstruction project.
However, after the documentation was completed and the funds were spent, the Abkhazian authorities signed an agreement with a different investor, LLC Infrastructure Development, owned by Rashid Nurgaliyev, the son of a high-ranking Kremlin official.
Now, feeling deceived, Aero Management is demanding the Abkhazian Ministry of Economy repay the loan, along with accrued interest, penalties, agency fees, and damages. Altogether, this amounts to over $2 million.
The Abkhazian government acknowledges the debt but insists that the “investor who won the tender,” i.e., Infrastructure Development, should be responsible for paying it. The authorities refer to an agreement signed in October 2023, which stipulates that Infrastructure Development assumes the obligation to reimburse Aero Management for its expenses.
However, when exactly the new contractor will fulfill this obligation—or if it will at all—remains unclear. In a government statement on the matter, it was mentioned that “the timing and procedure for compensation are under discussion.”
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According to one of the leaders of the Abkhazian opposition, Adgur Ardzinba, the current situation is directly the fault of president Aslan Bzhania, who “will be held accountable for the debts left to the country with his own property.”
Ardzinba also pointed out that the reconstruction of Sukhum Airport is clearly falling behind schedule:
“The investor’s representative announced that the first technical flight from Sukhum Airport would take place on July 20 of this year, but it never happened.”
Meanwhile, the authorities assure that the work will be completed on time, and air traffic from Sukhum will be restored by the end of December 2024. Since Sukhum Airport lacks an international license, flights will be limited to Russia. The Abkhazian government believes this will increase the flow of Russian tourists and positively impact the republic’s budget.
Debt for Sukhum Airport
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