In March 1998, Russia extradited former Georgian Finance Minister Guram Absandze who was wanted in the February assassination attempt against President Shevardnadze. The Gali region along the Abkhazia-Georgia border was the scene of violent skirmishes that cost the lives of Russian peacekeepers, civilians, and Georgian paramilitary operatives. While some Georgian refugees have returned to Abkhazia, repatriation plans have been slowed by violence against ethnic Georgians and stalled negotiations. Separatists have blocked the return of Georgians to South Ossetia. These factors have impaired freedom of movement.
Corruption is endemic and reaches all levels of government.
Senior officials have been accused of such crimes as embezzlement, smuggling, insider dealing, and conflict of interest. Customs and tax evasion is rampant. The right to property and inheritance is guaranteed by the constitution. Business registration is hampered by bribery and an inefficient, corrupt bureaucracy, and organized crime preys on small business owners. These factors have an adverse impact on equality of opportunity and the ability of Georgians to share in legitimate economic gains.