On April 10, separatist President Alan Gagloev held a meeting on the economic development of the de-facto Republic of South Ossetia, where ministers reported on the financial and socio-economic performance of the first quarter of 2025, discussed future development programs, investment initiatives, cooperation with Russia and separatist Abkhazia, and measures to support small and medium-sized enterprises.

During the meeting on April 10, Alan Gagloev, the President of the de-facto Republic of South Ossetia, reviewed the economic performance of the first quarter of 2025 alongside key government officials.

Dzambolat Tadtaev, the Minister of Finance, stated that budget execution during the reporting period reached 1 billion 956 million rubles (€20,278,000), reflecting a 35.9% increase compared to the same period in 2024. According to him, the republic’s own revenues amounted to 375 million rubles (€3,895,000), while expenditures stood at 1 billion 413 million rubles (€14,602,000), surpassing the previous year’s figure by 190 million rubles (€1,969,000).

Sarmat Kotayev, the Minister of Economic Development, emphasized that the ministry was drafting the Program of Socio-Economic Development for 2026–2030. He stated, "In close cooperation with Russian colleagues, we are developing the relevant program. We expect to complete the work by mid-May and present the document to the public."

Kotayev noted that legislative measures were underway to enhance investment attractiveness, including amendments to the Civil Code regarding pledged property and revisions to the Law on Support of Small and Medium Entrepreneurship. He added that these reforms would help advance cooperation with Investcapital LLC, a company involved in major investment projects within South Ossetia.

The minister also reported on food price monitoring, stating that food inflation for certain items reached 2.8% in the first quarter. He emphasized that price dynamics largely mirrored the situation in the Russian Federation, which supplies most goods, except those not subject to VAT.

Kotayev identified strengthening trade and economic ties with Russian regions as a top priority. In this context, Gagloev mentioned that during his visit to unrecognized Abkhazia for the presidential inauguration, Russian representatives had expressed willingness to expand bilateral cooperation. "Within the framework of the agreements reached, assistance from St. Petersburg is expected to arrive soon, including buses, special equipment for landscaping, and equipment for the Republican Multidisciplinary Medical Center," Gagloev stated.

He also announced the preparation of a draft agreement on duty-free trade with Abkhazia. South Ossetian goods, such as beer and mineral water, were already available in Abkhazian markets, and the agreement would further boost exports and involve new producers.

Arsen Kvezerov, a Member of Parliament, called for an expedited launch of the State Program for preferential loans to small and medium businesses. He proposed starting the selection process for entrepreneurs even before final adjustments to the program were made to accelerate agricultural projects.

Gagloev supported the initiative and confirmed that he had already instructed the Minister of Economic Development to proceed. He emphasized that coordination with the National Bank was the next step and stated, “We are also committed to the development of entrepreneurs and farmers. However, there have been cases of misuse of funds, so it is necessary to make appropriate amendments to the law.”