1991–1992 South Ossetia War allied with the Russian Bolsheviks, fighting a war against the newly independent Menshevik Georgia. Initially Georgia was successful, but in 1921, the Red Army conquered the country. South Ossetia became an autonomous oblast in the Soviet republic of Georgia. During the Soviet period, relations between ethnic Ossetians and Georgians were peaceful, with a high rate of interaction and intermarriages. In 1989, around 98,000 people lived in South Ossetia. Of these, 66.61% were Ossetian and 29.44% Georgian. Another 99,000 Ossetians lived throughout the rest of Georgia. At the end of 1991, with the collapse of the Soviet Union, Georgia became an
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