World

US gives $1bn to rebuild Georgia

by Sanjay Jha | September 3, 2008 at 08:59 pm

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Georgia suffered huge loss and also had damages in the Russian air strikes in the recent flare up.European Union leaders have suspended talks on the new agreement with Moscow until Russian troops are withdrawn from Geogia.Russian has threatned to respond to the growing presence of Nato warships in the Black Sea. In order to bolster its relationship with Georgia United States government have agreed to give $1 bn to rebuild ravaged Georgia.

The US has announced $1bn (£564m) of aid to Georgia for reconstruction after the conflict with Russia.

Secretary of State Condoleezza Rice said the aid would be used to rebuild houses and infrastructure - but not for military purposes.

Georgia has requested $2bn in funding from the international community.

Fighting between Russia and Georgia began on 7 August after the Georgian military tried to retake the breakaway region of South Ossetia by force.

Russian forces launched a counter-attack and the conflict ended with the ejection of Georgian troops from both South Ossetia and another breakaway region, Abkhazia.

Russia has since recognised the independence of both regions.

Nicaragua, whose leftist government fiercely opposes the US, now appears to have become the second nation to recognise their independence.

President Daniel Ortega said in a speech: "The government of Nicaragua recognises the independence of the republics of South Ossetia and Abkhazia and we are completely with the Russian government's position."

'Simple message'

Announcing the aid package, Ms Rice said the US was "responding to what we consider to be urgent needs".

"With our full support and the support of the entire free world, a democratic Georgia will survive, will rebuild and will thrive."