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
International recognition of Abkhazia and South Ossetia on 28 August 2008 argued that Medvedev's decree was "a blow below the belt" for Russia's ally Serbia. "If the changes in Abkhazia and South Ossetia occurred, as Russia claims, in accordance with the example set in Kosovo, then that means that Russia has indirectly admitted that Kosovo’s departure from Serbia was lawful." In September 2009, Russian Permanent Representative to the United Nations, Vitaly Churkin, when asked by journalists why Abkhazia and South Ossetia should be internationally recognised and Kosovo not, said that "the strongest argument is the fact that at the time when Kosovo’s authorities made the UDI, nobody