Russian Deputy Minister of Economic Development led a delegation to South Ossetia to review investment projects, explore a special economic zone, and strengthen trade and economic ties.
A Russian delegation led by the Deputy Minister of Economic Development of Russia, Sergey Nazarov, paid a working visit to the Republic of South Ossetia. The delegation included representatives from the Russian Ministry of Economic Development and JSC “KAVKAZ.RF,” as well as Russian banks and investors who expressed interest in projects within the republic.
This announcement was made by the Minister of Economic Development on 18 October 2025.
The participants reviewed promising sites for new investment projects proposed by the South Ossetian side, including the construction of hydroelectric power plants and greenhouse facilities, as well as the establishment of apple orchards and trout farms.
Following the inspection, Sergey Nazarov proposed forming a working group to develop the investment projects in detail, with the participation of JSC “KAVKAZ.RF” and representatives from banks. “It is important to unite the efforts of all interested parties: investors, KAVKAZ.RF representatives, and the government of South Ossetia. This will shorten decision-making processes and allow professional evaluation of the proposed projects,” said the Deputy Minister.
In turn, the Prime Minister of South Ossetia, Konstantin Djussoev, confirmed his readiness for close cooperation and announced plans to present concrete proposals in the near future.
Additionally, as part of developing investment cooperation, JSC “KAVKAZ.RF” was tasked with exploring the creation of a special economic zone (SEZ) in South Ossetia. The formation of the SEZ aims to improve the investment climate by promoting state support measures for residents, including foreign investors, planning activities in priority sectors of the economy.
The main objectives of the SEZ are to create favourable conditions for entrepreneurship and to strengthen economic integration between Russia and South Ossetia.
The republic, for its part, will provide land plots with access to engineering communications, administrative support for projects, and guarantees for the protection of investors’ property rights while ensuring legal certainty.
During the working visit, the Russian delegation inspected ongoing and reconstruction projects under joint investment programmes for the socio-economic development of South Ossetia for 2023–2025. The visit programme included inspections of several industrial enterprises, including LLC “Alania-Les” and the natural stone extraction and processing company “Impulse-A” in Tskhinvali. Delegation members familiarised themselves with production processes and output.
Special attention was paid to social infrastructure facilities, particularly the construction of Secondary School No. 2 in Tskhinvali, which is scheduled to open at the start of the new academic year. After the reconstruction of Building No. 1 is completed, the school’s planned capacity will be at least 880 students.
A meeting was held between Deputy Minister Sergey Nazarov and the President of the Republic, Alan Gagloev. The President thanked the Russian side for its support and comprehensive approach. “The leadership of the republic and the people, of course, expect positive changes. This includes quality healthcare, good roads, higher wages, job creation, implementation of projects under the investor attraction programme, and much more,” the President said.
Significant attention during the negotiations was given to implementing the instructions of the Intergovernmental Commission. “We synchronised our progress on achieving the set objectives. The Intergovernmental Commission tasked us with agreeing and approving a new State Programme for Socio-Economic Development of the Republic for 2026–2030, as well as the Investment Programme for 2026–2028 by 1 November 2025,” Sergey Nazarov said. “I can note that we listen to each other and understand the tasks that need to be addressed.”
The 2026–2028 Investment Programme includes measures for developing the tourism sector, agro-industrial complex, industrial production, as well as state support measures for priority economic sectors, creation of a comfortable urban environment, and completion of previously initiated projects.
The programme aims to ensure sustainable development of the republic and improve the welfare of its residents through the implementation of investment projects. It provides specific financial support measures, including monthly payments to teachers of Russian as well as Ossetian language and literature. Key target indicators of the programme include a 37% growth in gross domestic product, a 40% increase in the republic’s own budget revenues, and a 56% rise in the average monthly wage across economic sectors.
The working visit of the Russian delegation was a practical step in implementing agreements reached at the Economic Forum in September and contributed to further strengthening trade and economic ties between the Russian Federation and the Republic of South Ossetia.
