The increase in customs duties in Russia has doubled the prices in the separatist South Ossetia and, at the same time, created shortages of various types of goods that have been forgotten since Soviet times. While enterprising businessmen are counting their losses, local authorities are trying to negotiate with Moscow to cancel the crippling taxes.

The union of Entrepreneurs of South Ossetia, "Farni," appealed to Vladimir Putin to cancel the customs restrictions imposed on the import of goods to South Ossetia. The new requirements established by the Russian customs, which came into force on October 1, 2023, put entrepreneurs in a difficult situation.

Since October 1, the Russian government has imposed taxes on goods exported outside the Eurasian Economic Union, including South Ossetia and Abkhazia. Currently, the tax is 4-7% of the customs value of the goods. According to the Russian authorities, under the conditions of international sanctions, these measures should protect the domestic market from shortages and restrain prices. And with South Ossetia, customs duties exceed the established maximum of 7%.

The new restrictions have led to a sharp increase in the prices of all types of goods in South Ossetia - from food products to household chemicals and construction materials. For example, the price of one bag of cement rose from 450 to 700 rubles. Chicken eggs - from 75-90 to 180 rubles.

The situation worsened when the North Caucasus customs authorities implemented a meticulous inspection process for cargo entering from South Ossetia. Under this new procedure, transporters must unload their entire cargo at the Vladikavkaz customs station. Here, each item is individually examined by customs officers and cross-checked against the shipment's declaration. Once the inspection is complete, the goods are reloaded onto the truck. If any discrepancies, even minor ones, are found during this process, the transporter is issued fines.

The time of the customs clearance procedure has increased from 10 hours to two to five days, depending on the type of violations detected. Accordingly, the delivery price has also increased - the truck owners charge according to the time.

In addition, according to Moscow-Tskhinvali agreements, South Ossetia is allocated a quota for a specific amount of fuel every year, which is why fuel prices in South Ossetia were consistently lower than prices in North Ossetia.

However, the situation has recently changed, and now fuel is more expensive in South Ossetia. In this regard, the parliamentarians also addressed the government cabinet, but no one has an answer to the price increase formula. Russian suppliers do not explain what the export price of fuel consists of. The Russian side promises Tskhinvali that the price of fuel exports will decrease.

The opposition accused separatist President Alan Gagloev of his inability to conduct a dialogue with Russian colleagues. There is also a popular version in South Ossetia that the pro-Georgian lobby in Moscow creates problems for South Ossetia, thereby pushing South Ossetia towards Georgia.

Local entrepreneurs have already met with separatist President Gagloev twice, compared the current situation to a blockade, and demanded that he solve the problems at the stock exchange. On November 30, the customs representatives of South Ossetia and North Ossetia met at the checkpoint, however, instead of discussing the issue of customs fees, the Russian side made claims that since 2010, 2,900 vehicles with South Ossetia license plates crossed the Russian border and did not return. The said meeting

Despite the fact that Tskhinvali is trying to talk to Moscow about canceling taxes and Russian partners are making promises, the problem has not been solved yet.

The first round of negotiations was scheduled for October 20, but the Russian side postponed the meeting indefinitely without giving reasons. On November 26 in Moscow, separatist Prime Minister Tantin Jusoev met with the Deputy Chairman of the Russian Government, Alexander Novak, after which it was reported in Tskhinvali that Russia has started working on this, and customs duties will be abolished by the New Year.

Before restrictions were imposed, Georgia's city, Marneuli, alone provided South Ossetia with good and cheap agricultural products. Today, South Ossetia has no alternative to Russian goods. That is why entrepreneurs' appeal to Putin is a step of desperation. They believe that only the ruler of Russia can solve the problem. However, it is widely believed that Putin has personal sympathies for the South Ossetians.

The only logical explanation for imposing customs duties on South Ossetia is the plan to open a transport corridor to Georgia. This is probably related to the cancellation of the South Ossetian customs post and its joining to the Russian customs, which somewhat weakened the Ossetian customs.