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Tsugba's time as Prime Minister was marked by a relative thawing of tensions between Abkhazia and Georgia. While Tsugba, like all the other Prime Ministers, strongly opposed any idea of reunification with Georgia, and highly criticised cross-border raids by Georgian paramilitaries, he managed to demilitarise the conflict to a degree. This was highlighted by an agreement signed in July 2000, where both sides agreed not to settle the conflict by force. He tended to negotiate alongside foreign minister Sergey Shamba, rather than handling negotiations himself.
Tsugba resigned after being criticised by several opposition rallies, mainly led by the Amtsakhara movement. His official explanation of his resignation stated that "serious problems have arisen in connection with lawmaking, the professional qualifications of personnel at all levels of administration, from the highest to the lowest, with their accountability and the need to improve management and increase strict control and institute an uncompromising fight against crime."
| Preceded by: Sergei Bagapsh | Prime Ministers of Abkhazia | Followed by: Anri Djergenia |