South Ossetia the war in the 1990s, South Ossetia struggled economically. South Ossetian GDP was estimated at US$15 million (US$250 per capita) in a work published in 2002. Employment and supplies are scarce. Additionally, Georgia cut off supplies of electricity to the region, which forced the South Ossetian government to run an electric cable through North Ossetia. The majority of the population survives on subsistence farming. Virtually the only significant economic asset that South Ossetia possesses is control of the Roki Tunnel that is used to link Russia and Georgia, from which the South Ossetian government reportedly obtained as much as a
Russia–South Ossetia relations Medvedev and the Russian Federal Assembly for official recognition of their independence as sovereign states. President of South Ossetia Eduard Kokoity flew to Moscow on 23 August 2008 to deliver South Ossetia's appeal in an address to the Federation Council. After hearing the appeals from both the Abkhazian and South Ossetian leadership, on 25 August 2008 the Federation Council and State Duma passed motions calling upon President Medvedev to recognise the independence of the two regions and to establish diplomatic relations with them. On 26 August 2008, President Medvedev signed presidential decrees recognising the independence of Abkhazia and South Ossetia