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: August 06, 2024

A scandal in Abkhazia regarding a leaked document on social media, which demands that a Russian company be paid a penalty of over 200 million rubles for its participation in the reconstruction of Sukhumi Airport, is gaining momentum. Relevant agencies claim that this debt will be covered by a new investor, but the opposition expresses distrust and warns of a possible repetition of the railway loan story, which has become a burden on the republic’s budget.

Adgur Ardzinba, leader of the Abkhaz People’s Movement, held a press conference today to comment on a document, published by Telegram channels, which reveals that the Russian company Aero Management demands that the Abkhaz authorities pay expenses and penalties totaling over 200 million dollars. The organization was involved in developing the project for the restoration of Sukhumi Airport, but a contract was later signed with another contractor, Infrastructure Development LLC.

Ardzinba said, in particular:

“As we know, the airport is still not operational, not even the test flight scheduled for July took place, and Abkhazia has already accumulated a debt of 220 million rubles… This concerns the fact that the potential investor provided a loan to our State Unitary Enterprise ‘Sukhumi City Airport’ based on a letter of intent with the Ministry of Economy of Abkhazia… There is an interesting clause 4.1.6 in the agreement, according to which the lender has the right to demand early repayment of the entire loan amount and interest if… the borrower’s (SUE) subordination changes (to the Ministry of Economy of Abkhazia) without the lender’s consent. So, if SUE ‘Sukhumi City Airport’ was later transferred to another new ministry—what remains a mystery to me—then this is grounds for recognizing the Abkhaz side as dishonest.”

These remarks were directed at the newly established Ministry of Energy and Transport, which issued a comment in response to the document from Aero Management. The agency stated that the claim by Aero Management that the Abkhaz side breached its obligations was not accurate.

Additionally, the comment mentioned that Infrastructure Development LLC would cover Aero Management’s project design costs, and there is discussion about “terms and procedure for compensating expenses.”

It remains unclear what the outcome of negotiations between the contractors and the Abkhaz side will be.

“And what does Infrastructure Development say? Maybe they will actually cover it?” — asks one social media user.

The Abkhaz opposition intends to closely monitor the situation.

“We will not allow a repeat of a scam similar to the 2010 railway loan, which left the people of Abkhazia paying multi-million-dollar debts… The story of someone leaving the country with debts and then walking away without any responsibility will end. Aslan Bzhania will answer for the debts left to the country with his own property,” stated Adgur Ardzinba at today’s press conference.

These words received the expected approval on social media.

“Corruption at the highest levels will never end if every leader knows they can leave office without facing consequences. Admiration for Adgur for this statement; those in power have plenty of personal assets acquired through ‘hard work’.”

However, there were also pessimists.

“Their children will see a bright future from easy, enormous money. And the children of the working people will see how well their children live. So we will keep working for 100 rubles an hour.”

The text contains place names and terminology used in the self-proclaimed republics of Abkhazia and South Ossetia.

We do not disclose the names of the authors of this publication due to threats of criminal prosecution under Russia’s law on undesirable organizations.