Apr 01, 2010

Abkhazia: Putin Offers 24M Loan

Sample ImageRussia will lend 700 million rubles ($24 million) to Abkhazia's central bank, extending its policy of bankrolling the breakaway region of Georgia, Prime Minister Vladimir Putin said Friday (26 March 2010)


Below is an article published by: The Moscow Times

The money will be lent on favorable conditions and comes after Moscow earmarked more than 10 billion rubles ($350 million) in cash to aid Abkhazia between 2010 and 2012, Putin said during talks with Abkhaz leader Sergei Bagapsh, RIA-Novosti reported.

With much of its territory in ruins since a vicious war with Georgia in the early 1990s, Abkhazia is heavily dependent on outside assistance. Moscow recognized the republic as independent following an August 2008 war that broke out after Georgia unsuccessfully tried to retake another rebel province, South Ossetia, by force.

At talks in Putin's Novo-Ogaryovo residence Friday, Putin said both sides have signed 34 agreements and were preparing another 30. Among the most important was a treaty about the stationing of Russian military bases that was signed in February, he said.

Also Friday (26 March 2010), the State Duma ratified an agreement that allows Russia to guard the borders of both Abkhazia and South Ossetia, RIA-Novosti reported. The agreement was signed in the Kremlin in April 2009.