Russia Pledges USD 149 mln Aid for Abkhazia, S.Ossetia

Russia will sign on March 17 agreements with Tskhinvali and Sokhumi on providing financial assistance to the two breakaway regions with a total amount of 5.16 billion rubles (about USD 149 million) in 2009.

“Despite the cuts that have affected federal budget spending, the volume of financial assistance for the republics for 2009 has remained at the same level as initially planned,” the Russian Finance Ministry said in a statement on March 16.

It said that Abkhazia would receive 2.36 billion rubles and South Ossetia – 2.8 billion rubles.

The financial aid will be used for salaries of public sector employees; allowances for children; pensions; medicines and food, according to the Russian Finance Ministry.

In a separate aid package, the Finance Ministry said, Tskhinvali would receive additional 8.5 billion rubles as part of 10 billion ruble assistance for recovery needs from the August war results. 1.5 billion rubles has already been allocated to reconstruction needs as part of this package late last year, the Russian Finance Ministry said in the statement.

Meanwhile, officials in breakaway South Ossetia complain that delay in aid funds has stalled reconstruction works in the region.

“People spent the winter here and they were buoyed up by optimism that in March the active phase of the reconstruction will start, but there is nothing so far” Irina Gagloeva, a spokeswoman for the breakaway region’s government, told Reuters. The financial crisis is having a serious effect on a lot of financing of projects… There are only two or three buildings that have been completely restored. About 10% has been partially restored. Everything else is in the same condition as it was after the Georgian aggression.”

The Russian daily Kommersant reported earlier in March that Russia’s intention to directly control financial aid to Tskhinvali without involvement of the breakaway region’s authorities has become a source of disagreement between Moscow and Tskhinvali, which has also resulted into delays of aid funds.

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