Abkhazia energy storage foreign trade

Does Abkhazia have trade opportunities?

From Abkhazia’s recent history and contested formal status, we expect to find variations in trust and hence opportunities for trade along our three vectors: Patron: Russia was the first country to officially recognize Abkhazia’s independence in 2008; since then, Russia has provided security guarantees and generous economic assistance.

How does Abkhazia navigate between Russia and the EU?

Here we examine how Abkhazia, one of the de facto states of this “contested neighborhood”, navigates between Russia as “patron,” the Georgian “parent state,” and the EU in the sphere of trade and economic interaction.

Can a company invest in Abkhazia?

The law also specifies that any actor wishing to invest in Abkhazia or to transport goods through Abkhazia to Russia must first obtain approval from the Georgian government. However, since the adoption of this law, no company engaged in trade has applied for such a permit (ICG 2018, 10).

Should Abkhazia become an economic appendage of Russia?

Whereas some Abkhaz do not object to their republic becoming an economic appendage of Russia as long as the patron continues to provide security and ensure Abkhazia’s material well-being, others see independence as a “historical responsibility” (Inal-Ipa and Shakryl 2011 ).

Why are Abkhazia's trade relations unresolved?

The unresolved status issue combined with an acute sense of uncertainty about the nation’s future have led Abkhazia’s trade relations along all three vectors to be characterized by deep distrust. Trade is not followed by trust. There is a recognized need to diversify, but little appetite for the compromises needed to achieve this.

Is there a relationship between trust and trade in Abkhazia?

With Abkhazia, we find scant correlation between trust and trade: in the absence of formal recognition, trade does not necessarily facilitate trust. However, the interrelationship between trade, trust, and recognition proves more complex than expected: we find less trust in the patron and more trade with the parent than might have been anticipated.