Abkhazia revokes Russian real estate deal after protests

Members of parliament in Abkhazia have decided to annul the controversial investment agreement with Russia, reports "The Moscow Times". This unfavourable decision for Russia comes as a result of numerous protests and the resignation of the region's leader.

Abkhazia, a region located between the Black Sea and the Caucasus, has gained popularity among Russian tourists. Although it is widely recognized as part of Georgia, similar to South Ossetia, it has remained under Russian control since the brief conflict with Georgia in 2008.

The Abkhazian parliament voted to cancel the agreement with Russia by a result of 21 to 0, with two abstentions, according to the Apsny news agency.

The Abkhazian opposition explained that the agreement guaranteed preferential conditions for investments amounting to over 2 billion roubles (approximately CAD 34 million) and would have given wealthy Russians the green light to acquire local properties on a large scale.

As "The Moscow Times" reminds, the agreement was signed by the ministers of economy of Russia and Abkhazia in Moscow on October 30. This caused an unprecedented public outcry. People took to the streets. Demonstrators blocked roads and occupied government buildings. They accused the then-president Aslan Bzhania of prioritizing Russian interests over the needs of Abkhazia.

Following his resignation, the vice-president took office, although Bzhania announced his aspirations to run again in the presidential elections scheduled for February 15. Some opposition members suggested that a revision of the investment agreement might be possible after the elections.

One Russian politician indicated that due to the protests, relations with Abkhazia could deteriorate, writes "The Moscow Times".

Russian media reported that the Kremlin might offer "concessions" as part of its broader vision for dominance in the Abkhazian real estate market.