Separatist Abkhazia Faces Economic Turmoil Amid Rising Energy Demands

| News, Politics, Georgia, Abkhazia

On November 29, Valery Bganba, the Acting de-facto Prime Minister of the separatist republic of Abkhazia, announced that the government would suspend almost all payments to ensure the continued flow of electricity from Russia and the payment of salaries to state employees.

"We practically suspend payments for other expenses, such as household costs and some targeted programs, although these are also needed to secure the two main issues – electricity and salaries," Bganba stated.

Bganba noted that the budget also contained outstanding debts, including 50 million rubles (448.56 thousand euros) owed to the Department of Capital Construction, 55 million rubles (493.41 thousand euros) for medications by the Ministry of Health, and 22 million rubles (197.31 thousand euros) in debts to Russian hospitals treating Abkhazian citizens. To cover the cost of electricity transfers from Russia for the remainder of the year, 15 million rubles (134.57 thousand euros) were needed daily. Electricity consumption has also increased by one million kWh in the past 24 hours.

In total, more than 2 billion rubles (17.95 million euros) were required to pay public sector salaries, while the execution of Abkhazia's budget was 10 billion rubles (89.75 million euros). Of this, nearly 9 billion rubles (80.77 million euros) were from Abkhazia's budget, with 3.5 billion rubles (31.42 million euros) coming from financial aid provided by the Russian Federation. However, almost 2 billion rubles (17.95 million euros) in financial assistance from Russia remained unreceived, including 800 million rubles (7.18 million euros) designated for wages.

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