Background of the Russo-Georgian War Abkhazia and South Ossetia. Emboldened by the success in restoring control in Adjara in early 2004, the Georgian government launched a push to retake South Ossetia. Intense fighting took place between Georgian forces and South Ossetian militia between 8 and 19 August 2004. According to researcher Sergei Markedonov, the brief war in 2004 was a turning point for Russian policy in the region: Russia, which had previously aimed only to preserve the status-quo, now felt that the security of the whole Caucasus depended on the situation in South Ossetia, and took the side of South Ossetia. Since 2006, Georgia's total
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