South Ossetia begin at about , and above snow and ice are present year-round. South Ossetia's economy is primarily agricultural, although less than 10% of South Ossetia's land area is cultivated. Cereals, fruit and vines are the major produce. Forestry and cattle industries are also maintained. A number of industrial facilities also exist, particularly around the capital, Tskhinvali. Following the 2008 South Ossetia war, Russia recognized South Ossetia as independent. This unilateral recognition by Russia was met by condemnation from Western Blocs, such as NATO, Organization for Security and Co-operation in Europe and the European Council due to the violation of Georgia's
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