Fuel crisis in Abkhazia attributed to Russian-imposed monopoly
Fuel crisis in Abkhazia
Since mid-December 2023, following a decision by the Russian government, the state-owned company Rosneft has become the exclusive fuel supplier for Abkhazia and South Ossetia.
As a result, Russian customs is prohibiting the import of oil products, purchased by Abkhazian companies from other suppliers, into Abkhazia. Despite having already paid for gasoline and diesel at the border, many gas stations in Abkhazia are either closed or operating in a limited mode, leading to a fuel crisis in the republic.
- South Ossetia hit by increase of customs duties on goods from Russia
- Russia has established a monopoly on fuel sales in Abkhazia, leading to a shortage in the local market
The leading player in the Abkhazian fuel market, AZiD company, reports that it has been unable to operate normally for several weeks:
“The supply issue remains unresolved, and the paid and declared volumes of fuel have been stranded at the border since December 21, 2023, resulting in gas stations not operating.”
AZiD openly suggests that someone will inevitably be held accountable for the situation:
“We are closely monitoring the actions of all participants and actors in the fuel market of Abkhazia. Once the holidays are over, the questions will persist and will undoubtedly find their addressee.”
It is assumed that Abkhazian companies, which have lost the ability to import oil products from Russia, may consider buying gasoline and diesel fuel from Rosneft-Abkhazia, a subsidiary of Rosneft. However, the Fuel Association of Abkhazia, consisting of approximately 40 local companies, refuses to enter into direct contracts with Rosneft, as this would lead to the monopolization of the market.
The ministry of teonomy in Abkhazia states that the Russian government’s decision to grant exclusive import rights for oil products to Rosneft in the republic came as a surprise even to them. The head of the ministry, Kristina Ozgan, mentioned that she is in consultations with her Russian counterparts on how to address the situation.
However, the Fuel Association is skeptical, expressing doubt that the minister was unaware of Russia’s plans — before joining the government, Kristina Ozgan was the head of Rosneft-Abkhazia.
The claim that Moscow’s decision was unexpected is also rejected in South Ossetia.
According to information obtained by Ekho Kavkaza journalist Murat Gekemukhov from sources in the South Ossetian government, discussions about the monopoly supplies began as early as June-July 2023.
The journalist suggests that the Abkhazian government agreed to the new conditions at that time, whereas the South Ossetian government opposed them.
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