Russia–South Ossetia relations 2009, Sergey Lavrov stated that Russian recognition of Abkhazia and South Ossetia was not planned when the 2008 war began. As a result of the Russian recognition of Abkhazian and South Ossetian independence, Georgia severed diplomatic relations with Russia on 29 August 2008, and declared that it regards South Ossetia and Abkhazia as "occupied territories". Russia and South Ossetia established diplomatic relations on 9 September 2008, when Russian Foreign Minister Sergey Lavrov and South Ossetian Minister of Foreign Affairs Murat Dzhioyev exchanged notes at the Russian Foreign Ministry in Moscow. On 25 September 2008, President Medvedev signed an ukaz appointing
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