South Ossetia Georgian government severed diplomatic relations with Russia. Russian forces left the buffer areas bordering Abkhazia and South Ossetia on 8 October and the European Union Monitoring Mission in Georgia assumed authority over the buffer areas. Since the war, Georgia has maintained that Abkhazia and South Ossetia are Russian-occupied Georgian territories. South Ossetia is in the very heart of the Caucasus at the juncture of Asia and Europe, and it occupies the southern slopes of the Greater Caucasus Mountain Range and the foothills' part of the Kartalin Valley. South Ossetia is a very mountainous region. The Likhi Range is roughly in
Russia–South Ossetia relations formally integrated into the Russian economy by treaty in March 2015. After being instructed by Russian Prime Minister Vladimir Putin, in March 2009, Russia allocated 2.8 billion rubles from the Russian federal budget, as part of agreements between the Russian Ministry of Finance and its South Ossetian counterpart, which were based on the treaty signed in September 2008. Russia also allocated an additional 8.5 billion rubles to South Ossetia in order to assist in rebuilding housing, social amenities and utilities which were destroyed or damaged during the 2008 war. According to Eduard Kokoity, seventy percent of residential housing and eighty