16 Sep 2008

EU, IMF starts to rebuild Georgia

5:57 pm on 16 September 2008

after its conflict with Russia.

The international community is moving to rebuild Georgia

after its conflict with Russia.

European Union ministers have rubber-stamped the deployment of at least 200 ceasefire monitors to the former Soviet Union republic and announced a two-year aid package worth the equivalent of $NZ1 billion.

In order to rebuild Georgia's currency reserves and bolster international confidence in its economy, the International Monetary Fund has approved a loan equal to another $NZ1 billion.

Meanwhile, Russian troops began withdrawing from the Georgian port of Poti on Saturday, reports say.

A column of trucks, soldiers and armoured vehicles left the town, apparently heading towards Abkhazia, one of Georgia's pro-Russian regions.

Russia had agreed to pull its troops out of Georgia under a ceasefire deal brokered by the EU to end a brief conflict with Georgia in August.

Troops are expected to remain within South Ossetia and Abkhazia.

Earlier in the week Russian Foreign Minister Sergei Lavrov said Moscow needed a continuing presence in Georgia's breakaway regions to ensure security.

Moscow says it has established formal diplomatic ties with the administrations in the two regions, following an "irrevocable" decision to recognise them as independent states.

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 Abkhazia.