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 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