Russian investor to restore Sukhumi Airport on most favorable conditions for themselves
Under which conditions will Sukhumi Airport be restored?
The text of the Russian-Abkhaz agreement on the restoration of Sukhumi Airport has been revealed. According to this document, the Russian investor funding the project is granted unprecedented privileges and preferences. The identity of the investor is being kept confidential, but according to classified information, it is oligarch Oleg Deripaska, who is under sanctions by the United States and the European Union. Many experts in Abkhazia believe that the agreement has been concluded on terms that are highly unfavorable for the republic and its people.
Here are some of the benefits obtained by the investor:
- All construction materials and equipment necessary for the restoration and continued operation of the airport, including aviation fuel and special fluids for aircraft maintenance, are exempt from customs duties.
- The investor is exempt from property tax and profit tax during the payback period, which is up to 25 years.
- For consumed electricity, the investor will pay according to the tariff applicable to the most privileged category of legal entities, such as schools and hospitals.
Commentary from Abkhaz economist Akhra Aristava:
Unfortunately, this agreement has nothing to do with public-private partnership. It seems more like a foreign investor has hired the [Abkhaz] government to resolve all issues in their favor.
Our government should be protecting the interests of the citizens of the Republic of Abkhazia. This means actively participating in the project, establishing a joint venture with a stake, ensuring the protection of citizens’ rights, guaranteeing a share in the profits, and so on. But none of this is present.
Unfortunately, not only this, but other investment proposals from our cabinet of ministers demonstrate the lack of modern and alternative approaches by the authorities.
Modern problem-solving methods require reforms to be implemented and new laws to be enacted.
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For instance, we need a new law on “Accounting” that allows for the reflection of the actual market value of assets and property. This would facilitate the formation of an audit chamber and the establishment of an independent accounting institute, which are essential for a market economy to function.
We must enact a law on “Public-Private Partnership” that enables the government to enter into joint ventures and invest additional financial resources in enterprises together with investors.
Reforming the insurance system is necessary to minimize risks in the implementation of various projects. Strengthening anti-corruption legislation is crucial, along with the introduction of income and expenditure declarations for all citizens whose income exceeds 12 million rubles per year [approximately $141,000]. The introduction of digital government services, ensuring transparency in decision-making, should be achieved through a new law on “Digitalization of the Country,” as well as a series of laws concerning tenders, competitions, small businesses, transportation, industry, trade, and tourism.
Without these new laws, it is impossible to ensure justice for citizens and achieve sustainable and successful development in our republic. Currently, the cabinet of ministers is merely granting privileges and leasing citizens’ property, while our people gain no benefits from such outdated methods.
Under which conditions will Sukhumi Airport be restored?
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