At the beginning of the year, the governments of Russia and the so-called government of Abkhazia signed an agreement valid until 2030. It provides for a gradual increase in the salaries of employees in key publicly funded sectors. This effectively formalises the Kremlin’s use of key financial levers that will make the process of economic annexation irreversible.

Under the agreement, salaries will increase as follows: for researchers, to an average of 64,000 roubles; for doctors, to 58,200 roubles; for teachers, to 32,600 roubles; and for employees in the cultural sector, to 28,900 roubles.

It should also be noted that the Ministry of Internal Affairs, Ministry of Emergency Situations, Prosecutor General’s Office, State Security Service and State Protection Service of occupied Abkhazia will receive significant financial funding. Securing the loyalty of the security structures once again underscores the uninterrupted process of so-called integration.

The agreement also provides for the establishment of a Joint Information and Coordination Centre for internal affairs bodies. In practice, this means the direct integration of the Abkhaz police with the Kremlin’s security agencies.

Another important part of the agreement is the establishment of a financial reporting system. All financial transfers made under this agreement will be carried out through the sanctioned VTB Bank. The Ministry of Finance of Abkhazia is required to submit detailed monthly reports to the Russian Ministry of Economic Development. In addition, Russia will gain access to certain correspondent accounts of Abkhazia and to data from the treasury’s software systems. The establishment of this system represents an unprecedented level of financial oversight by the Kremlin.