Russia–South Ossetia relations Russia–South Ossetia relations Russia—South Ossetia relations () refers to the bilateral relationship between Russia and the Georgian breakaway Tskhinvali Region (Former autonomous district of South Ossetia), a disputed region in the South Caucasus, located on the territory of the South Ossetian Autonomous Oblast within the former Georgian Soviet Socialist Republic. South Ossetia declared its independence from Georgia in 1991 during the Georgian–Ossetian conflict, but the entity remained unrecognised, save by fellow break-away republics Abkhazia and Transnistria. In the aftermath of the conflict Russia extended citizenship to many of South Ossetia's citizens. Following several months of increased tensions in the region,
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