The separatist territory of Abkhazia is fast becoming engulfed in political and economic turmoil. The would-be statelet’s legislature, the epicenter of mass protests in November, is now a crime scene after one legislator shot another to death.

The murder on December 18 took place amid a deepening economic crisis prompted by a cutoff of Russian financial assistance. Abkhazia has largely been without electricity in recent days, and many government services have ground to a halt due to the lack of funds. 

The motive for the killing outside the Abkhaz legislature remains unclear but seems likely linked to the economic upheaval. At the time of the killing, legislators were debating the imposition of a ban on cryptocurrency mining. Though already restricted, crypto mining prior to the outbreak of disorder was widespread, straining the territory’s fragile power grid. The prevailing blackout conditions at the same time have impacted the earnings of influential local interest groups at a time when cryptocurrencies, led by Bitcoin, are reaching all-time highs.

Heightening speculation about behind-the-scenes intrigue, the Interfax news agency reported December 18 that Abkhazia’s de facto prime minister, Valery Bganba, instructed local energy authorities to explore the possibility of procuring power from Georgia. The public nature of Bganba’s initiative marks an unprecedented show of defiance of Russia.

Ever since Abkhaz de facto leader Aslan Bzhania’s forced resignation in November – prompted by mass protests against a proposed sweetheart deal for Russian investors in the territory – Russia has shown citizens the downside of going against the Kremlin’s political preferences. Russia is one of the few states that has recognized Abkhazia’s de facto independence and has been its primary financial benefactor since the territory broke away from Georgia in 1992.

De facto Abkhaz government officials announced on December 6 that Moscow had followed through on a previous threat to suspend almost all funding.

“The Russian side has effectively suspended co-financing payments in all areas,” said acting separatist leader Badra Gunba, as quoted by Echo of the Caucasus, an RFE/RL publication. “This also affected the Defense Ministry, the Ministry of Internal Affairs, the State Security Service, and other ministries and departments.”

By December 11, the territory was without electricity due to the shutdown of a hydropower plant on the Enguri River, the Moscow Times reported. Low water levels on the river earlier caused the suspension of the plant’s operations. Moscow’s cutoff of assistance is now preventing Abkhaz leaders from purchasing Russian-produced power.

Gunba said that Russian funding to Abkhazia now only covers state pensions. “Without financial support from the Russian Federation, it is extremely difficult for us to maintain the situation any longer … our citizens must know and understand that this is a forced measure,” he stated, according to Echo of the Caucasus. 

By “forced measure,” Gunba was hinting at retribution for perceived anti-Russia developments in Abkhazia. Unpopular bills introduced earlier this year – widely considered by locals to represent encroaching Russian influence – sparked the protests in November that culminated in the storming of the Abkhaz legislature on November 15. Days later, Bzhania resigned, and an interim leadership is currently in place.

New elections are scheduled for February 2025. It is possible Bzhania could return to power, thus easing Russia’s evident anger over recent developments. But what happens between now and then could be a test of the extent to which Abkhaz citizens are willing to defy their patron.