Russia–South Ossetia relations 2009, Sergey Lavrov stated that Russian recognition of Abkhazia and South Ossetia was not planned when the 2008 war began. As a result of the Russian recognition of Abkhazian and South Ossetian independence, Georgia severed diplomatic relations with Russia on 29 August 2008, and declared that it regards South Ossetia and Abkhazia as "occupied territories". Russia and South Ossetia established diplomatic relations on 9 September 2008, when Russian Foreign Minister Sergey Lavrov and South Ossetian Minister of Foreign Affairs Murat Dzhioyev exchanged notes at the Russian Foreign Ministry in Moscow. On 25 September 2008, President Medvedev signed an ukaz appointing
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