Russia intends to conduct duty free bilateral trade with the former Georgian republics of Abkhazia and South Ossetia, including fuel supplies to the region, according to draft trade agreements published on Monday.
The Russian government has instructed the Economics Ministry to hold negotiations with the two republics and sign corresponding trade accords.
The draft agreements stipulate that Russia, Abkhazia and South Ossetia will not apply customs duties and related taxes in their imports. Abkhazia, however, will impose a duty-free regime only from January 1, 2015.
Exemptions will apply to export duties on Russia’s supplies of sugar, ethyl alcohol, cigarettes and cigars to these republics.
Russia recognized Abkhazia and South Ossetia in 2008, following a five-day war with Georgia. The war began when Georgia attacked South Ossetia, where most residents are Russian passport holders. Russia's decision has been condemned by many nations. Georgia considers the two regions part of its sovereign territory.
Russia, Nicaragua, Venezuela and the tiny island nations of Nauru, Vanuatu, and Tuvalu are the only other countries to have recognized the two republics.
