No crisis in relations with Russia - Abkhaz president

SUKHUM. Sept 20 (Interfax) - There is no crisis in Abkhaz-Russian relations, Abkhaz President Aslan Bzhania said.

"There has been no crisis in the interstate relations between Abkhazia and Russia and there won't be any. Yet the sides have obligations deriving from their agreements, and Abkhazia needs to honor its obligations," Bzhania said in an interview with the Abkhaz television.

The obligations include the intergovernmental agreement on the mutual recognition of arbitral awards in commercial cases, which has been submitted to the parliament for ratification, Bzhania said. Despite the opposition's claims, the agreement poses no risks to Abkhazia, he said.

"The agreement allows honest entrepreneurs to expand their economic operations and bring benefit to our state," Bzhania said.

"The document has been discussed and approved by the respective committee of the People's Assembly and is pending ratification by the parliament," he said.

The agreement is based on the Russian-Abkhaz Interstate Treaty of Alliance and Strategic Partnership signed by Vladimir Putin and Raul Khajimba on November 24, 2014, Bzhania said.

"The time has come to fulfill the provisions of this treaty, and, as the highest ranking official representing our people, I will definitely implement every provision of the treaty and the agreements stemming from it, in particular, because it meets the interests of the Abkhaz people," he said.

The implementation of this agreement unlocks opportunities of economic development and investments, Bzhania said. "Our economy has not been effective in general, and we have failed to reach the economic development level necessary for addressing current problems. That cannot be done without investment, this is how the economy works. The only investments we can get come from Russia, yet an investor comes to a country when it provides security and business guarantees," he said.

"Construction projects have been intensive in Abkhazia, and 90% of this work is being done by Russian-Abkhaz joint ventures," Bzhania said.

Suspended Russian co-funding of salaries of certain categories of public sector employees will affect many residents of Abkhazia, he said.

"A document received from Russia says that the co-funding of salaries of certain categories of public sector employees will be suspended from September 1 until Abkhazia meets the agreements. Indeed, suspending the funding process will impact a large number of Abkhaz citizens, such as teachers, healthcare personnel, cultural workers and others. Hence, the Abkhaz leadership - the president, the government and the parliament - are working to solve the problem," Bzhania said.