Abkhazia Institute for Social and Economic Research

Georgia’s central bank is to ask foreign banks to close down the accounts of Russian Companies and individuals that buy assets in the breakaway Georgian region of Abkhazia.
Abkhazia, a strip of land on the Black Sea coast, broke away from Tbilisi’s control in a 1992-1993s war. It has no international recognition, but Georgia accuses its giant neighbour Russia of flouting its borders and propping up the separatists. “We must go to the banks with a request that they should not cooperate with, or open accounts for, those organizations that are operating on the territories not under (Tbilisi’s) control,” central bank chief Roman Gotsiridze said.

“These transactions are not controlled, and they contradict international law covering money-laundering and the financing of terrorism,” he said. The central bank chief was speaking after Georgia’s Minister for Refugees and Internally Displaced Persons Georgy Kheviashvili — responsible for thousands of people who have fled the conflict in Abkhazia — said senior Russian officials and ministries had bought property in Abkhazia.

Kheviashvili said Russian organisations had bought a total of 31 major assets, including a wine factory and holiday villas. “This is an attempt to legalise ethnic cleansing (in Abkhazia),” the minister said. Russia’s Foreign Ministry said it had no comment and referred queries to the Russian ministries Tbilisi alleged had bought assets in Abkhazia.