The Georgian population is well aware that Russian businessmen are investing heavily in Abkhazia. In a big privatization drive, the authorities of the breakaway republic sold off a number of hotels and holiday-houses to Russian investors. The windfall earned from the sales goes to military spending and pockets of the high-ranking officials in separatist government.
While the Georgian government and media have been preoccupied with declaiming the increasing Russian investment in Abkhazia, Turkey, the second-largest investor, has been almost overlooked. Looking past the disagreement between Tbilisi and Sokhumi, some Turkish companies are also investing. Expert Paata Davitaia says that two years ago Ukrainian firms also appeared and started private businesses. But the Ukrainian investments are nothing compared to those of Turkish ones.
“About 40 percent of restaurants are in the hands of Turks. They built some small restaurants and cafes in Sokhumi and Gagra.
“The Turkish business is totally built on the traffic of the trawlers, which sail illegally. They enter Abkhazia from neutral waters and ship timber, metal, mandarin and other citrus fruits to Turkey,” says Davitaia.
Although Turkey is a strategic partner of Georgia, Turkish businessmen are ignoring the territorial integrity of Georgia and are conducting illegal commercial activity in Abkhazia.
They import oil- and food products into Abkhazia and export timber and coal from Abkhazia. They also export expensive marble tiles stolen from cemeteries. The web site Abkhazia.ge reports that Turkish businessmen illegally exported 39 000 cubic meters of wood from Abkhazia in 1999. Since then, wood exports have been on the rise.
The following vessels have reportedly engaged in the timber business:
Alfaol, Yildizli, Abchasia, F2-47, Sheli-1, Sheli-2, Lukol2, Super Capitan Hak, Olug, Estracanbaz, Gunerlen-I, Gunerlen-II, Guclu-I, Mithat Eregli, Rusten Oglu, Ali Karna-2, Abal Balik Gilik, Bizat Aptan, Mustafa.
Among them the most frequent visitor is Yildizli, which ships metals and wood from Abkhazia and imports cigarettes into the breakaway republic.
This vessel performed nine commercial voyages in Abkhazia in 1999, eight in 2000, and ten in 2001. In 2004, it had to reduce travelling into Abkhazia’s waters as Georgian coast guards toughened control on the Georgian territorial waters and arrested many illegal vessels.
Georgian coastguards have been trying to block Turkish vessels from Abkhaz waters since 1997, but the measures taken before the Rose Revolution were largely ineffective. In most cases, they just forced the arrested vessels return to Turkey. For instance, a Turkish vessel called Gulchu, which was transporting smuggled goods from Bulgaria into Abkhazia, was released after being arrested.
In 2004, Georgian coastguards started imposing large fines on illegal vessels, and even confiscated several of them. But these tough measures did not deter Turkish companies from sailing into Abkhaz waters.
Marlboro and Viceroy cigarettes are the most popular products smuggled from Turkey into Abkhazia. The cigarettes are then reportedly smuggled from Abkhazia into the rest of Georgia.
Another prized activity is small business. Turkish businesses are heavily investing in seashore cafes. One of them is Elbrus, in Sokhumi. Investments in real estate are also popular. Turks are reportedly buying empty blocks in the central districts. They have cleaned the seashores and built cafes and bars along the coastlines, some of which are already operational.
Recently, some Turkish businessmen bought a plot of land in the village of Kindghi, in the Ochamchire district, and planted nuts there. Ishik Mid Ipa, a citizen of Turkey, established a computer center in Sokhumi, which is still operational. Another Turkish firm called Elip, based on Shamili Street in Sokhumi, is a distributor of Turkish flour in Abkhazia.
Turks opened a cafe-bar and a merry-go-round in former Orjonikidze Park in Sokhumi. Ekmon, a Turkish-Abkhaz joint venture, runs a confectionary business.
Some companies are going for bigger deals. Kil Kardeshler and Consul, together with local Abkhazriba, are engaged in a fishing business using Turkish boats. Turks reportedly earn over a million USD from illegal fishing annually. 40 percent of the profits goes to the Abkhaz.
Abkhaz authorities signed contracts with Turkish firms Ada, Madenjilik and Bashma (the owner of the latter is Turkish businessman Tushailan) for production using Tkvarcheli’s coal reserves.
Istanbul-based Okan is engaged in the construction business in Sokhumi. The company is run by Auorul Bendir. The company promised to pay a 700 USD monthly salary to their workers.
An interesting detail is that officials of the separatist administration are on friendly terms with the Turks, using the channels of the Abkhaz community living in Turkey.
"The Abkhaz delegation visiting Istnabul were welcomed by Abkhaz communities. They really have a strong community in Turkey. Although the Georgian diaspora has larger numbers, the Abkhaz Diaspora is working more effectively to support their compatriots," says Paata Davitaia, who last year participated in a non-governmental Georgian-Abkhaz meeting in Istanbul.
He says Ardzinba’s clan was more closely engaged in relations with Turks. The Baghpash clan, especally, the self-styled president’s PR officer Kristian Bzhania, has good relations with Turks.
Raul Khajimba is a representative of Ardzinba’s clan but Paata Davitaia has not heard much of his open contacts with Turkey. Davitaia thinks that Khajimba might have more latent links with the Turkish community.