Abkhazia's Energy Minister Highlights Dependency on Russian Electricity Supply

On November 6, Dzhansukh Nanba, the de-facto Deputy Prime Minister and Minister of Energy and Transport for Abkhazia, discussed the region’s growing energy challenges, stating, “Electricity is never free; someone always pays for it.” He explained that Abkhazia’s electricity needs are largely met by "social overflow" – a subsidy provided by Russia, funded through the Russian Federation’s budget for several years.

According to Nanba, Abkhazia received 302 million kWh of this subsidized electricity in 2024, with plans to increase the allocation to 326 million kWh in 2025. He expressed confidence that Abkhazia will continue to benefit from this support in early 2025. The Russian energy company Inter RAO, the only firm authorized to export electricity from Russia, manages the supply under a formal agreement with Abkhazia’s energy company, Chornomorenergo.

Nanba noted that the cost of the commercial cross-flow rate stands at approximately €0.038 per kWh. He compared this rate to those in Russia’s Krasnodar region, where private consumers pay between €0.038 and €0.076 per kWh, depending on the time of day. In Abkhazia, however, electricity tariffs are set at €0.013 for individuals and €0.023 for businesses. “We are compelled to purchase electricity at €0.038 per kWh, yet we sell it for an average of €0.019 per kWh, of which only 45% is actually collected,” he remarked.

Abkhazia’s electricity consumption reached 2.643 billion kWh in 2023, with a target of 2.1 to 2.2 billion kWh for the coming year. Electricity usage has risen steadily since 2020, peaking in 2022 at 2.946 billion kWh.

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