The law on apartments

This article was originally published on the “Echo of the Caucasus” website. The text and terminology are presented unchanged. All rights belong to “Echo of the Caucasus.” Publication date: July 25, 2024.

The bill proposing the construction of apartments for sale to foreign citizens in the eastern regions of Abkhazia has been withdrawn from parliament. According to the press service of the People’s Assembly, “the decision to withdraw the bill… and to cease the legislative process on it was made in order to alleviate tensions and maintain stability in the country.”

The active opposition from Abkhazian society and the opposition to yet another attempt by the executive branch to open the real estate market to foreigners has ended in victory. The bill, entitled “On Certain Measures to Improve the Socio-Economic Development of the Ochamchira, Tkvarcheli, and Gali Districts of the Republic of Abkhazia”, was withdrawn by its proponents, deputies Rezo Zantaria, German Kacharava, Aslan Akaba, and Beslan Emurkhba.

This is not the first attempt to liberalize the Abkhazian real estate market under various pretexts. All presidents ⁠— except the first, Vladislav Ardzinba, who initiated the ban on the sale of real estate to foreign citizens ⁠— have, at one time or another, declared their intention to do so. The main argument was the need to bring this sector of the economy out of the shadows.

It is no secret that real estate in Abkhazia is purchased by foreigners using various illegal schemes, usually involving frontmen with Abkhazian citizenship, which often leads to disastrous consequences for buyers. Presidents have also emphasized the need to maintain parity, since Abkhazian citizens can purchase property in Russia.

At times, initiatives have turned into actual bills. One bill, which allowed the sale of new housing to foreigners, was introduced during Raoul Khajimba’s presidency but was met with strong resistance from society and the political opposition and was rejected by parliament. A second attempt was made a year ago when the People’s Assembly, again responding to public discontent, returned the bill to President Aslan Bzhaniya’s administration. Now, another attempt has been met with withdrawal — this one initiated by pro-government deputies.

The Abkhazian public responded to the news from the Assembly with cautious optimism. Following enthusiastic statements like “Congratulations to everyone who fought, believed, and strived for the truth!!!” were reminders that the withdrawal of the bill might only be a delay. For instance, activists from “Our Pitsunda”, who have fought the transfer of the Pitsunda estate to Russia, said:

“Withdrawal is a temporary solution. We absolutely cannot accept it. The mere existence of this bill has shown that the current government cannot be trusted. WE DEMAND GUARANTEES. We need a resolution on this issue, and we need it now. WE NEED A MORATORIUM. If the authorities decide to withdraw the issue now, it means they want to raise it again. We cannot allow that.”

The Telegram channel “Needful Gazette” expressed a similar sentiment:

“WITHDRAWAL IS NOT A BAN. Sorry, but this is for those who are choking with joy. Everything is still ahead — Aslan Bzhaniya has nothing more to lose, his rating has gone negative.”

However, it is unlikely that President Bzhaniya himself assesses his chances in the presidential elections, which are scheduled for March next year, so poorly. In fact, the withdrawal of the bill may signal that the authorities are shifting into election mode and will not insist on passing laws that are clearly unpopular with the public for now. This is predicted by several social media users:

• “In other words, to avoid losing the remaining electorate, they need to take a timeout until the presidential elections, and then, if they’re lucky with the throne and crown, they might continue to manipulate, but the price of the issue will increase.”
• “It’s not for nothing that Bzhaniya traveled to Moscow. Most likely, the order came from his handlers. Now they will come up with a new move. Don’t relax; they have probably already thought of something else…”

Analysts have repeatedly noted that political opposition within Abkhazian society is an important factor in relations with Russia. The periodic change of power in the republic is accompanied by negotiations between the incoming ruling team and Kremlin officials, during which a range of political promises is made. Certain demands — such as opening the real estate market up to Russians, allowing investments in Abkhazian energy, or adopting a foreign agents law — face strong resistance in society and lead to political crises. As a result, the authorities either backtrack, explaining to their “strategic partner” the impossibility of meeting their conditions at the current moment, or they continue to push the Kremlin’s agenda and lose power.

At present, the opposition has clearly won the battle. But will it be able to win the long-term contest? The Telegram channel “ABKHAZIA-CENTER” poses this question:

“The team of the current President of Abkhazia has realized that the risks of pushing through the apartment bill are too great, and, in coordination with Moscow (this is our assumption), decided to tactically retreat… Yes, public unrest, the position of prominent intellectuals, and the activity of the opposition have had their effect, but how realistically can one protect oneself from similar recurrences in the future?”