South Ossetia had ended. The war displaced 192,000 people, and while many were able to return to their homes after the war, a year later around 30,000 ethnic Georgians remained displaced. In an interview published in "Kommersant", South Ossetian leader Eduard Kokoity said he would not allow Georgians to return. President of France Nicolas Sarkozy negotiated a ceasefire agreement on 12 August 2008. On 17 August, Russian president Dmitry Medvedev announced that Russian forces would begin to pull out of Georgia the following day. Russia recognised Abkhazia and South Ossetia as separate republics on 26 August. In response to Russia's recognition, the
South Ossetia third of its budget by levying customs duties on freight traffic before the war President Eduard Kokoity has admitted that his country is seriously dependent on Russian economic assistance. South Ossetia's poverty threshold stood at 3,062 rubles a month in the fourth quarter of 2007, or 23.5 percent below Russia's average, while South Ossetians have incomparably smaller incomes. Before the 2008 South Ossetia war, South Ossetia's industry consisted of 22 small factories, with a total production of 61.6 million rubles in 2006. In 2007, only 7 factories were functioning. In March, 2009, it was reported that most of the production