Economy
The economy of Abkhazia is heavily integrated with Russia and uses the Russian ruble as its currency. Abkhazia has experienced a modest economic upswing since the 2008 South Ossetia war and Russia's subsequent recognition of Abkhazia's independence. About half of Abkhazia's state budget is financed with aid money from Russia.
Tourism is a key industry and, according to Abkhazia's authorities, almost a million tourists (mainly from Russia) came to Abkhazia in 2007. Abkhazia also enjoys fertile lands and an abundance of agricultural products, including tea, tobacco, wine and fruits (especially tangerines and hazelnuts). Electricity is largely supplied by the Inguri hydroelectric power station located on the Inguri River between Abkhazia and Georgia (proper) and operated jointly by both parties.
In the first half of 2012, the principal trading partners of Abkhazia were Russia (64%) and Turkey (18%). The CIS economic sanctions imposed on Abkhazia in 1996 are still formally in force, but Russia announced on 6 March 2008 that it would no longer participate in them, declaring them "outdated, impeding the socio-economic development of the region, and causing unjustified hardship for the people of Abkhazia". Russia also called on other CIS members to undertake similar steps, but met with protests from Tbilisi and lack of support from the other CIS countries.
Read more about this topic: Abkhazia
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