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Christoph Pfluger's avatar

I was in Abkhazia in mid-October and spoke to a number of people there, including Sergei Garmonin, the last independent publisher in Abkhazia. At the center of the protests is a quasi-invisible factor, namely the globally unique fact that private land ownership is not possible in Abkhazia. All land belongs to the state, which allocates it to its citizens on application, in the cities for a rent, in the countryside free of charge. What is built on the land belongs to the builders and can also be sold, but the land itself cannot. And to be allowed to build, you have to be an Abkhazian citizen. The traditional attitude towards private property is also reflected in the fact that there is no word for “money” in the Abkhazian language.

This rule - no private ownership of land - is apparently supported by the vast majority of Abkhazians, as I was told. It is also explicitly seen as a guarantee that Abkhazia will not fall into the hands of Russian oligarchs. This is because the country was something of a Monaco of the East during the Soviet era. Many magnificent buildings have since fallen into ruin. With a little money - which the Abkhazians don't have - the past splendor could be restored. As a rich Russian, I would also keep an eye on the beautiful plots of land in the subtropical climate.

Another remarkable detail about Abkhazia is the fact that there is no post. So you never find bills in your letterbox and you can't send off a tax return either. Many state institutions in Abkhazia are based on personal relationships. Having already entered the country I experienced this when I tried to get a visa with the help of Sergei Garmonin. You first have to transfer 400 roubles through a bank to the passport office which doesn’t accept cash or electronic payments at the counter. Then you go to the passport office with the proof of payment and receive your visa within a few minutes and without any further paperwork.

Now two banks didn't want to accept the transfer worth four euros, for God knows what reasons. Then Sergei called a friend - I think it was a former foreign minister. He appeared within five minutes and told the friendly ladies at the counter to make the transaction, which they did. When I asked Sergei why it had suddenly worked, he replied. “My friend was someone they knew.”

It is clear that a state system that is so characterized by personal relationships is relatively lean, but on the other hand it is also very susceptible to corruption. And since the state or its representatives grant land rights, a lot of roubles can quickly be at stake. Perhaps the fact that small Abkhazia has a professional parliament of 35 members that meets daily and also allocates land rights also plays a role. The parliamentarians like to be among themselves. The growing distance between the people and the parliament is symbolized by the high fence that was recently erected around the parliament building.

This parliament now wants to make it much easier for Russian investors to do business in Abkhazia. Not least, these investors are to be allowed to use the land in Abkhazia as collateral for bank loans, which not even Abkhazians can do, as private land ownership is not possible.

It seems quite plausible to me that the Abkhazians are rebelling against this. And there would certainly be opportunities to use Abkhazia's great potential not only for the benefit of Russian capital, but also for the general benefit of the country and its people.

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Mauro's avatar

Your post has some omissions. The russian minister of economy wants to deregulate the housing market in Abkhazia. He probably believes that free market is a good thing without understanding the consequences.

Abkhazia is a special region, with a special history and identity.

Abkhazia is poor but it's a turistic area.

Allowing non-residents to buy properties there will not improve the local economy, and will price residents out of the housing market.

So, Abkhazians are totally right to complain about this.

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