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Republic of Abkhazia

Sir Gelato

New member
It has been many months that this place has been on my mind and I would like to know if anybody has ever been there or maybe has done any kind of business (financial related).
Abkhazia it is a independent little country protected by Russia on the north-west of Georgia, that gained independence in the mid 90's after a war with Georgia. It is only recognised as country by Russia, Venezuela, Ossetia, Nauru (and few more shady contries). Russian ruble is somenkind the currency used, although they have their own coin, but is not that legal.
I was not expecting anything else, but they have their own national bank, National Bank of the Republic of Abkhazia, and also a payment system called, APRA, they issue cards. There are many bank branches that are allowed to operate and have a license issued by the national bank.
Also, the State Investment Agency, allows foreign investors to invest on the country.
With that being said, maybe, the country offers good crypto friendly laws, easy business incorporation, and low compliance regulations on the financial system.
¿Has anybody some thoughts about this territory?

Thank you Mates!
 

Sols

Entrepreneur
Like all unrecognised territories, banking is barely functional domestically and as for internationally, they are reliant on weak relationships with banks in real countries.

In the case of Abkhazia, it looks like all banking takes places through correspondent relations with Russian banks. Access to other currencies than RUB could be lost at any moment.

I'd stay far, far away.
 

khinkali

Active Member
I would be wary of relying on any apparently crypto friendly laws in Russian occupied territories of Georgia or Ukraine. Your investment might well be encouraged, but after some time you get a knock on the door...

You'll also have trouble doing business with the 188 of 193 UN states who oppose the illegal occupation. Easy incorporation isn't much use if it's not recognised. I could write you a certificate of incorporation on the back of a beer mat and it would be equally useless (but perhaps less incriminating).

The so called central bank seems to have about $200k of hard currency deposits, so I wouldn't take that seriously.

I'd stay far, far away.
Wise words!
 

Outlander

Silver Member
I have been there. It's a Russian enclave with Russian soldiers everywhere. Beautiful though impoverished and largely in ruins, but the Abkhazian people are very proud of their "country". I remember that 2 years ago the guide mentioned crypto mining was running rampant and starting to place a burden on the precarious power infrastructure.

Trust me you don't want a bank account there, they're 100% cut out of the global system and have nothing to offer you other than the perspective of losing your money.
 

Incorporator

FinTech Avenger
Mentor Group Gold
Absolutely no point in even trying to bank there. Most Abkhazians have Russian citizenship as well and use Russian banks for their needs.
 

Sir Gelato

New member
I have been there. It's a Russian enclave with Russian soldiers everywhere. Beautiful though impoverished and largely in ruins, but the Abkhazian people are very proud of their "country". I remember that 2 years ago the guide mentioned crypto mining was running rampant and starting to place a burden on the precarious power infrastructure.

Trust me you don't want a bank account there, they're 100% cut out of the global system and have nothing to offer you other than the perspective of losing your money.
Thanks for the advice, I new it was bad but not as I thought.
Do you think it can be a big laundromat for russian money?
 

Outlander

Silver Member
Thanks for the advice, I new it was bad but not as I thought.
Do you think it can be a big laundromat for russian money?
I tend to think the Russians prefer laundering money elsewhere and leave Abkhazia because of the Black Sea and for bullying Georgia. There aren't signs of a thriving economy or any significant developments of businesses or infrastructure, which you would expect in an environment where people are pouring dirty money into the economy.

But if you have a chance, go there! I 100% recommend and felt safe everywhere.
 

KJK

Entrepreneur
Abkhazia it is a independent little country protected by Russia on the north-west of Georgia, that gained independence in the mid 90's after a war with Georgia. It is only recognised as country by Russia, Venezuela, Ossetia, Nauru (and few more shady contries).
I don't believe it is independent, most likely they are VERY dependent on Russia, in terms of political and financial support.

With that being said, maybe, the country offers good crypto friendly laws, easy business incorporation, and low compliance regulations on the financial system.
They probably have other things to worry about, why would you support a Russian puppet pseudo-state when you can get treated better in actual Georgia (when you already mention this region)? Other crypto-friendly regions with Russian presence are Malta, Cyprus and the Baltics (Estonia, Latvia, Lithuania).

¿Has anybody some thoughts about this territory?
Watch this guy's video:
 

Marie Manila

Active Member
But if you have a chance, go there! I 100% recommend and felt safe everywhere.
I tried to reach there last year.
Tried to pass over the Georgian border.
Unfortunately they refused my online VISA application before.

If you take a look in several travel blogs the area directly behind the Georgian - Abkhazia boarder is quite dangerous and you may get robbed.
Nevertheless I was at the border and tried to enter without a VISA. But the border guy with the sub-machine gun convinced me to turn around. nai¤%

The border to South Ossetia was more scaring, if you tried to come close.
If you are a few hundred meters in front of the border they come to you with their sub-machine guns and ask you questions.
Unfortunately they did not speak English. So it was hard to answer anything. As a girl I could say I am searching for a toilet. rof/%

By the way, for the VISA application for Abkhazia you have to send a picture of your passport via an unencrypted HTTP connection.
 

Outlander

Silver Member
I tried to reach there last year.
Tried to pass over the Georgian border.
Unfortunately they refused my online VISA application before.

If you take a look in several travel blogs the area directly behind the Georgian - Abkhazia boarder is quite dangerous and you may get robbed.
Nevertheless I was at the border and tried to enter without a VISA. But the border guy with the sub-machine gun convinced me to turn around. nai¤%

The border to South Ossetia was more scaring, if you tried to come close.
If you are a few hundred meters in front of the border they come to you with their sub-machine guns and ask you questions.
Unfortunately they did not speak English. So it was hard to answer anything.

By the way, for the VISA application for Abkhazia you have to send a picture of your passport via an unencrypted HTTP connection.
I got my visa well in advance, and the bridge crossing was quite calm, with people coming and going in vans or even on horses. It's well guarded and not dangerous at all, but definitely has a Cold War atmosphere.

By the way Georgia doesn't consider it a border, as they consider Abkhazia their territory. There's only a police station on the Georgian side.

The border with South Ossetia is indeed dangerous and not recommended.
 

Marie Manila

Active Member
Yes, others were able to cross, but - if I remember correctly - all of them with a plate from Abkhazia on their car.

It was a short time, after the riots in Georgia because a Russian MP took the speaker's seat in parliament. Maybe they hardened the border these days.
 

anotherone

Mentor Group Gold
Reading this, and taking into account that they are in the Russian financial sphere, taking into account that many Russians try to hide their assets in Estonia, Latvia, Lithuania, Bulgaria, Greece and Cyprus., I think it is not a good idea.
 
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