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Small offshore for a great state

2 (2008)
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Abkhazia is ready to supply tens of million cubic meters of construction materials to Sochi, to take part in the construction of factories, manufacturing them.
The president of Abkhazia Sergey Bagapsh announced that his Republic intends to become an offshore state.

— 120 mln cub. meters of broken stone of high quality is necessary for the construction of the Olympic objects. Sochi has no broken stone deposits, nor does the Krasnodar region. To import it from Turkey is rather expensive. We can supply about 40-50 mln cub. meters of broken stone by sea and by railway. We can provide our maritime ports for transit of cargos from Sochi, — Sergey Bagapsh continued. — We can provide the territory for construction of ready-mix stations, asphalt plants. Sergey Bagapsh pointed out, that according to the world practice there is always a small offshore zone near great states. Obviously, under «the great state» the president meant Russia. According to the opinions of experts, the creation of a new offshore on the south border of Russia is quite real.

— Along with Kaliningrad region the offshore zone might become some border town next to Abkhazia which would become an official registration center, — says Mikhail Delyagin, the director of the Institute of Globalization. — Abkhazia would get the income as a salary to nominal directors (out of number of Russian citizens living in it) and from the actual business activity. Russia is a tool of global maneuvering for middle and big businesses which are outside the external control.

Point of view

Sergey Kisin, economical correspondent:

«Abkhazia will get the chance to restore its welfare of the Soviet times»

— From the Olympic point of view the acceptance of the South Ossetia and moreover Abkhazia for the Olympic Games of 2014 is an unquestionable advantage. Sergey Shamba, the minister of Foreign Affaires of Abkhazia is reckoning to build a cement plant in Tkvarcheli, a plant producing broken stone in Gudautskiy region and a brick plant in Gulripshskiy region. Before the acceptance of the Republic nobody was anxious to invest in the future plants. And now when the barriers are open and the border regime has been simplified cheap construction material is available as well as cheap labor force, although not too professional.

We should assume that in the nearest future the number of modern privately owned hotels and small inns in Abkhazia will increase drastically. Therefore the groceries stores for the Olympics will get quite cheap agricultural goods. But the main advantages are potential economic profits from the construction of sports objects. Shortly, the coming Olympiad for Abkhazia with its yet underestimated perspectives is a chance to restore its welfare of the Soviet times.