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The Price of Friendship with Russia: Has the Official Start of the Auction of Abkhazia's Territory Been Given?

The Price of Friendship with Russia: Has the Official Start of the Auction of Abkhazia's Territory Been Given?

27/10/2020 09:03:39 Conflicts

On October 10th of this year, the President of Abkhazia signed a decree "On the Commission for Constitutional Reform." The commission's primary objective is the drafting of amendments to the Constitution of the Republic of Abkhazia aimed at reforming the system of state power and governance. The commission — headed by Natella Akaba, chairwoman of the Association of Women of Abkhazia and a deputy of the first convocation of parliament — includes highly respected figures from the republic: deputies, judges, lawyers, public figures, and state officials.

Despite the fact that the commission had barely begun its work, its very first decision — on the creation in the republic of advanced development territories (ADTs) and the construction of apartment buildings — threw, I will not hesitate to say, the whole of Abkhazia into shock. The population began speaking about how, under the guise of creating so-called economic zones, the fully legal sale of Abkhazian land would commence.

"They take us for fools — they think we don't understand that under the pretext of a beneficial initiative, they are trying to push through the sale of not only real estate but land itself to foreigners. If this project is realized, we will not have a single piece of our own land left," says our interlocutor Timur.

Another interlocutor — Said — sees in this whole scheme the greatest threat to Abkhazia's national interests, which of late have been coming under attack from Russia with increasing frequency. "First, Russian politicians began talking about Abkhazia joining Russia. Then Russian political forces began setting conditions for our authorities, repeatedly pressing the question of selling real estate to Russians. And now, out of nowhere, the idea of creating ADTs has appeared — which will not only help Russians legally acquire property in Abkhazia, but seize all the land," Said believes.

"It is as clear as day that under the guise of free economic zones — or whatever else they call this fairy tale — Abkhazia's land will be taken away. And as soon as the Russians implement this project, farewell independent Abkhazia, farewell Abkhazians. We will be unwanted guests on our own land," another interlocutor, Artem, is convinced.

Seeing this reaction to the proposed project, I tried to find out what exactly an advanced development territory is. From open sources — Wikipedia and the Russian Ministry of Economic Development website — it emerged that this is a type of economic zone with preferential tax conditions, simplified administrative procedures, and other privileges. ADTs are created to attract investment, accelerate economic development, and improve the living standards of the population. They are supposed to create "business conditions competitive with key business centers." Setting aside territories within a country, equipped with the infrastructure and incentives needed to launch production, is a widely practiced international approach to attracting large enterprises.

Such projects are known worldwide under the names of special economic zones or free economic zones. Advanced development territories, however, are an entirely Russian project — modeled on the aforementioned zones but with certain differences. The distinctions lie in the details: territorial placement, different tax and non-tax incentives, different business environments, different entry barriers.

Russia devised ADTs primarily to attract large Chinese investments into the country, which is why such projects have acquired the popular nickname "the Chinese way." On the face of it, a perfectly laudable initiative — a powerful stimulus for economic development, one might say.

But in the view of our interlocutor Timur, who is well acquainted with the substance of the matter, the creation of such zones will bring Abkhazia nothing good. "In some regions of Russia such zones already exist. What good has it brought to Russians, to Russia itself? Let us at least recall the example of Siberia or the Far East. They have long since ceased to be Russian. Legally, this is Russian territory — but the Chinese run everything there. Was that the benefit of creating ADTs? If the Russians couldn't manage it, how are we — Abkhazians — supposed to manage? This is outright land seizure. Abkhazia's land is being sold without war and without conflict. Does our people even understand this?" Timur asks.

The head of the Constitutional Reform Commission, Natella Akaba, believes that the creation of advanced development territories in Abkhazia and the construction of apartment buildings will have a positive effect on job creation and the activation of economic growth in the republic. "ADTs are international practice — they mean development, they mean jobs, especially in depressed regions," Akaba notes.

However, in the opinion of a number of specialists and studies by several international analytical centers, advanced development territories and all programs for developing depressed regions are nothing other than "pre-sale preparation."

Natella Akaba largely agrees with this view, but points out that despite the apparent strictness of the current prohibitions, the black market in real estate in Abkhazia is "thriving," generating illegal income for a narrow circle of individuals. "This in no way contributes to resolving the country's numerous socio-economic problems. And a narrow circle of individuals opposes the legalization of the real estate market by playing on the patriotic feelings of citizens. At the same time, Abkhazia's international reputation suffers seriously," Akaba believes. It would appear, therefore, that by creating advanced development territories in Abkhazia, the state is attempting to legalize the sale of real estate.

"Behind all these patriotic slogans, no one tells us the substance of the project. Few people in Abkhazia know what incentives are being offered to residents wishing to purchase land or property. And the main danger lies in those details. For instance, they don't mention that a resident may be exempt from property and land taxes. The mineral extraction tax — 0% for four years. A special procedure for land use is also envisaged, preferential lease rates, and a special procedure for state control and oversight. With so many concessions for the buyer, where is the benefit to the republic's population, to Abkhazia itself?" asks our interlocutor Alkhas. In the young man's view, this project is not only disadvantageous for Abkhazia but dangerous. "Think about it yourselves — how else would Russia appropriate Abkhazia? It cannot incorporate the republic by force — that would be tantamount to political suicide. Russia, as Abkhazia's strategic partner, was supposed not only to provide financial support to the republic but to help it stand on its feet and become prosperous and economically developed. That is what it declared to the whole world when it recognized our independence. So how can one speak of joining Russia? And so the Russians devised a legal way out of the situation. To all appearances, Abkhazia will remain independent for the world — but in reality it will become yet another Russian province," Alkhas is convinced.

Natella Akaba's desire to impose quotas and filter each buyer, to conduct rigorous screening "as happens, for instance, in Liechtenstein and Switzerland," is unrealizable — because given the existing disorder in the legislation and the extremely high level of corruption, and not only within state bodies, it will be impossible to achieve. "All of this is a pretext — using good intentions to pull the wool over people's eyes. All those who have devised this project for selling the homeland do not want to say the main thing: all of this is being done to appease Russia, which has grown tired of issuing ultimatums to Abkhazia and has moved from threats to action. Advanced development territories are nothing other than coercion of Abkhazians into selling their land. This is, in effect, repayment for the assistance Russia provided to our republic. As the saying goes, there is no such thing as a free lunch — and the time has come for the residents of Abkhazia to pay the bill," our interlocutor Timur is convinced.

In the view of all our respondents, the official start of the auction of the territory of the Republic of Abkhazia has been given. Which means all the fears of Abkhazians about the imminent loss of sovereignty were not in vain. A wise people has only now, after many years, come to understand the true price of friendship with Russia — which for a nominal ruble has wished to sell at auction the history and heritage of the ancient Abkhazian people.

Astanda Bgamba

The text contains place names and terminology used in the self-proclaimed Republic of Abkhazia. Opinions expressed in the publication reflect the views of the author and do not necessarily represent the position of the editorial board.

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