South Ossetia South Ossetian Autonomous Oblast. In the wake of the 2008 war, Georgia and a significant part of the international community consider South Ossetia to be occupied by the Russian military. South Ossetia relies heavily on military, political and financial aid from Russia. Russia does not allow the European Union Monitoring Mission to enter South Ossetia. South Ossetia, Transnistria, Artsakh, and Abkhazia are sometimes referred to as post-Soviet "frozen conflict" zones. The territory of contemporary South Ossetia was part of the kingdom of Iberia, the latter was unified under the single Georgian monarchy in 11th-century, extending its possessions up to Dvaleti.
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