Abkhazia and Donbass can shortly agree on inter-bank cooperation - expert

Abkhazia cannot ignore the fact that the Donetsk People’s Republic has recognized its independence but even if it did not the republic would still cooperate, Doctor of Political Sciences, professor of foreign policy at the Department of national security, Russian Presidential Academy of National Economy and Public Administration Alexander Mikhaylenko has told EADaily .

The Donetsk People’s Republic recognized Abkhazia and South Ossetia on May 11. South Ossetia recognized the Donetsk and Lugansk people’s republics in June 2014. Abkhazia has not yet recognized the republics. Earlier Head of DPR Alexander Zakharchenko said that through offices in South Ossetia the banking system of DPR would get access to the whole world. Lugansk is also considering cooperation with Abkhazian banks.

According to Mikhaylenko, cooperation between Abkhazian and Donbass banks is quite possible. “Ukrainian banks have gone from the region but people need to live on. They in Donbass have started paying pensions and social benefits in rubles, but Russian banks have not come to Donetsk and Lugansk for fear of western sanctions. Abkhazian banks are facing no such risks,” the expert said.

He doubts that banking activities in Donbass will be profitable as long as war is underway. “Abkhazia’s banking system is weak. The republic has just eight banks. So, I think the cooperation between Abkhazian and Donbass banks will need Russia’s support,” Mikhaylenko said.

According to the expert, the war in Donbass will end one day, so, in future this cooperation will benefit both sides.

“It is advisable that the sides recognize each other but in some cases economic ties can develop without political recognition. For example, Russia does not recognize Taiwan but has a $5bn trade with it. Real cooperation is much more important that formal recognition,” Mikhaylenko said.

He is sure that they in Abkhazia have not missed the fact that DPR has recognized them. “I think now they are considering what possibilities and threats they will face if they recognize DPR and LPR,” Mikhaylenko said.

According to Chairman of the Defense and National Security Committee of the Abkhazian Parliament Fazlibek Avidzba, it will depend on Abkhazian President Raul Khadzhimba if Abkhazia will recognize DPR or not. Avidzba is sure that Abkhazia will recognize DPR in very near future.