Sochi International Investment Forum

The Tenth Annual Sochi International Investment Forum will be held September 15-18.  The Forum, along with the Saint Petersburg International Economic Forum, is one of the biggest events of its kind in Russia each year. Event venues are being prepared and traffic rerouted for the event.  Last year there were about 8,000 particpants from 32 nations.  Agreements were signed for 376 projects totalling 768 billion rubles.

This year Prime Minister Vladimir Putin will speak.  Krasnodar Krai Governor Aleksandr Tkachev and SberBank President and CEO German Gref will particpate in the Forum along with many other business and governmental leaders.  

Registration Tent- Sochi International Investment Forum

Reply to Bruce George's Article in The Commentator on Abkhazia Elections

Mr. George has written an article for the Commentator full of misinformation and falsehoods about Abkhazia.  I don't know if he has ever been to Abkhazia, but I have.  I am an American businessman and have been spending time there for the last 5 years.  

Mr. George would have a reader believe that Abkhazia is occupied by Russia.  An occupational power should have troops patrolling the cities and its officials running the organs of government. However, in 5 years, I have seen Russian soldiers less than 5 times and I can not recall ever seeing them in Abkhazia's beautiful capital, Sukhum. I have been to Abkhaz government offices many times and not once have I seen a Russian official. Never.  The Abkhaz make their own policy.  

Russia is not occupying Abkhazia.

That Abkhazia is occupied is a myth fostered by Georgian President Saakashvili and those who fail to hold his feet to the fire for his own failings on human rights issues.  The Russian Army does have a presence in Abkhazia for defensive purposes and to protect the border.  That is it.  If Russia is occupying Abkhazia, then the American government is occupying South Korea.  

Unfortunately, Mr. George has allied himself with the Soviet dictator, Josef Stalin, on the issue of Georgia's borders.  In 1931, Stalin, an ethnic Georgian, dissolved Abkhazia's separate status within the Soviet Union and incorporated it into the Georgian S.S.R.  If that had not been done, Abkhazia likely would have been internationally recognized, along with the 15 constituent republics of the Soviet Union when it collapsed, in 1991.

In addition to the myth of occupation, Mr. George repeats other falsehoods about Abkhazia.

Falsehood:  Mr. George says that Abkhazia was ethnically cleansed in a "coordinated campaign by Moscow."  

Russia did not "ethnically cleanse" Abkhazia.  There is zero evidence this happened.  The Russian Government was not a party to the conflict.  Many Georgian soldiers fled across the border to Russia when the Abkhaz gained control.  The Russian government actually supported Georgia's position on Abkhazia for many years, enforcing a blockade against Abkhazia that was not lifted until 1999.  Why then? Georgia's constant bellicosity, threats and attacks.

Falsehood:  The homes of Georgians who left in the conflict have been turned over to thousands of Russians moving into the country.

Wrong.  Estimates put the Russian population at a lower level than in the prewar era.  Mr. George talks about the number of Georgians who lived in Abkhazia prior to the events of the 1990's, but he fails to mention that the majority of Georgians were moved into Abkhazia in the 1930's on the orders of Josef Stalin.  This was done to ethnically dilute Abkhazia.   Later, Georgian officials tried to suppress the Abkhaz language and Abkhaz culture. Most of the homes that were abandoned at the end of the war remain empty.

I deplore the loss of any life or home in conflict.  Georgia started the war when the autonomy that Abkhazia sought was rejected.  The Georgian President, Eduard Shevardnadze, then ordered troops to attack (now Shevardnadze says this was a mistake and advocates Georgia's recognition of Abkhazia's sovereignty)..  During the conflict, Georgians committed atrocities against the Abkhaz and many Abkhaz, Russians and Armenians sought refuge in Russia.  A Georgian general threatened the Abkhaz with genocide (video can be seen on youtube). The Georgian military also burnt the Abkhaz National Library and Archives.  I know this first hand, having seen it many times.

Falsehood:  Mr. George says that few nations have recognized Russia's annexation of Abkhazia. 

Nonsensical.   If Russia had annexed it , the Russian  government would hardly be encouraging other nations to recognize Abkhazia's sovereignty. Russia has not annexed Abkhazia.  There is a border with border agents and customs agents on both sides.  Abkhazia has its own government.

Falsehood:  Mr. George states that Georgians are prohibited from voting in the election.  

Another fabrication.  Georgians may vote and do.  They must get Abkhaz citizenship, which thousands have done. In fact, deceased President Bagapsh's wife is an ethnic Georgian.  But if they seek Abkhaz citizenship, Georgians are denounced as traitors by the Georgian government.

Falsehood:  The Russians have responsibility for the elections.  

Wrong again.  The Abkhaz conduct their elections.  I was there on August 26 for the Presidential election. There were no officials from Russia at any of the polling stations I visited or that any that election observers from 28 nations (including Mr. George's, the United Kingdom) went to.  In fact, I was told by observers and observed myself that the process was free and fair and democratic. One Italian observer told me that Abkhazia has more democratic elections than many of the nations that refuse to recognize it.  Abkhazia has again had a peaceful transfer of power, something Georgia has never done. 

Falsehood: Russia is causing poverty in Abkhazia.

Actually, Russia has a program of rebuilding Abkhaz infrastructure.  Many Russian tourists visit Abkhazia, and Russia buys the majority of Abkhazia's exports.  The reason for poverty in Abkhazia, which, I am told, is similar to that in provincial Georgia (I cannot go to find out.  I have been threatened with imprisonment and death), is that Georgia is using its allies to enforce an economic blockade on Abkhazia.

What is the result of Georgia's economic blockade?  Abkhaz products can be sold in very few places and they can not buy products directly from most nations. Their passports are not recognized, making travel more difficult. There are no bank card machines or movie theaters in Abkhazia because of the pressure on the clearing and licensing firms by Georgia.

So Mr. George decries poverty in Abkhazia and then supports the policies that cause it.

Abkhazia will never revert to Georgian control.  If Russia were to leave its base in Abkhazia,  the Georgian government would likely attack, as they have done in the past.   So Russia is not an occupier, but the guarantor of peace.  Why?  They have seen a Georgian Government, armed by American money, attack small, and nearly defenseless, South Ossetia without provocation in 2008 . If any doubt the point, look at the EU Commission report on the genesis of the war.

The title of Mr. George's article states that "Sham elections in Abkhazia should not distract us from finding peace in the Caucasus".  The election was not a sham and true peace can not be achieved by "us", but only by Georgia giving up its aggressive intent and territorial claims against Abkhazia and South Ossetia- two nations that want no part of living under its control. Remember every conflict in the Caucasus involving the Republic of Georgia, has been started by the Republic of Georgia.  I hope that the U.S. and the E.U. and their allies will not continue to support Georgia's claims and to arm it.  It is destabilizing and dangerous.

Sochi on September 1 - Back to School (Dyen Znaniy- Day of Knowledge)

All over Russia, children returned to school today.   September 1 is the traditional start to schools in Russia and is known as Dyen Znaniy (Day of Knowledge).  Sochi was no different, with thousands of students heading to their first day of classes in the new school year.  Pervoklassnikov (first graders) were accompanied by parents and grandparents on their first day of school.  The day was marked with song and dance and flowers and balloons in Sochi schools.   After a night of rainfall, the weather cooperated for the event and it was warm and sunny. 

Alahadze, Abkhazia

This morning, I returned to Sochi from Abkhazia.  I spent Sunday night and Monday in Alahadze, which is about a 10 minute drive south of Gagra.  Alahadze has a number of inexpensive, rustic guesthouses that cater to Russian tourists.  The beach is beautiful and uncrowded and the sea was cool and refreshing.  I walked to the beach past a cemetery and cows grazing under the trees.  But with the Caucasus Mountains as a backdrop, the setting was spectacular.  It seems to me the perfect location to develop quality hotels and restaurants supported by redeveloped infrastructure.  I thought how opportunity is being denied to Abkhazia's people and property owners because of the absence of affordable capital caused by the lack of recognition and the economic blockade. This is the fundamental problem facing Abkhazia's new President and the one that President Bagapsh worked diligently on until his death.  In fact, he had just returned from a trip to Turkey and was scheduled to speak in the United Kingdom on this issue when he died.  The policy is unfair and will not last forever because Abkhazia has too much to offer in the way of opportunity.  International election observers that I spoke to told me the same thing.  

Sitting in Sukhum with a group of from Italy on Sunday, I mentioned that it was not hard to imagine the city as a Caucasus version of La Jolla or Santa Barbara- if only the U.S. had a better policy.  One said "Yes, America has a bad policy in Abkhazia.  It does not reflect reality".

George Hewitt, scholar on the Caucasus and Abkhazia, makes an excellent point when he states that Georgia, the aggressor in both 1992 in Abkhazia and in South Ossetia in 2008, has received tremendous inflows of western capital, but that Abkhazia has not been offered this or paid reparations by Georgia.  I hope that soon the United States will begin to take a serious and objective look at what its policy is achieving in the Caucasus.  It does not promote peace, development or prosperity by supporting Georgia's claim against Abkhazia's territory.

More On Abkhazia's Election

Over the last several days, I have had a number of inquiries from observers about current events in Abkhazia. Several asked about what I observed during the election and what it means for stability.

As I mentioned before, I went to several polling stations and all seemed fair and democractic.  I spoke to a number of  election observers over the next several days and did not hear a complaint about the electoral process. I did hear several remarks that Abkhazia is apparently further along the path of democracy than many of the nations that refuse to recognize it.  This is not the only criteria in the recognition process, but it is an important indicator of what Abkhazia has achieved despite enormous difficulties.  Although only a handful of nations now recognize Abkhazia, I heard recently that several are seriously considering the move.

Abkhazia is a stable place.  There is no sense of unrest or political instability.  Russian troops are not patrolling the streets nor are Russian officials manning the organs of government.  It is a calm and peaceful nation working to develop and integrate with the rest of the world, despite all of the misinformation and propaganda spread by political leaders in the Republic of Georgia.  

I hope that foreign policy experts, tourists and investors will not be dissuaded by the misinformation. If they investigate Abkhazia, they will see the same thing I see: a beautiful, underdeveloped, subtropical paradise for tourists just across the border from one of the world's largest markets.  I spoke to several election observers who saw things the same way.

All three of the Presidential candidates, including President-Elect Ankvab, stressed that Abkhazia needs to seek outside investment and political ties.  Although President Bagapsh died, this reality has not changed.