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
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