In the wake of the Russia-Georgia conflict both the western bloc and Russia have declared a slew of measures to help their adopted nations to overcome the crises. The war with most predictable outcome has only added misery to the people of the region rather than bringing in self identity of their own, a journalist of a popular news agency opined. The call from Russia to recognize South Ossetia and Abkhazia to rest of the world re-establishes their displeasure towards the US- Poland deal which places part of the US missile defense system on Polish soil. Russia blames the deal and is intended to make a nuclear strike at their country.
The US treasury on behalf of G7 nations has declared they are prepared to help Georgia in the reconstruction process. The US treasury stated, they informed the World Bank, the European Bank for Reconstruction and Development, Asian Development Bank, European Investment Bank, European Commission and Georgian authorities to indentify the areas which require immediate repair. World Bank officials have been understood to visit Georgia this Friday to assess the extent of damage. The key areas of focus would be to provide shelter to the people displaced by the war and by putting rail and road services back on track.
On the other hand, Finance Minister Alexei Kudrin stated Russia would be spending $400 million for the restoration of the worst affected Tskhinvali, the capital of South Ossetia. In addition, Kudrin promised $2000 to next of kin of the dead and the victims of the recent fighting. Kudrin claimed any emergency economic package for South Ossetia did not require any changes to the new three year draft budget of 2009, sounding the allocation was preplanned. Russia’s state-owned oil giant Gasprom is in the process of construction of the oil pipeline to Tskhinvali, and the oil transport network is operated by Russian firms.
Analysts believe neither the post-war stock market tumble nor foreign reserves decline is not going to deter Russia from their future plans of supporting South Ossetia and Abkhazia. Both the European Union and the US in some way or the other need Russia in the event to follow such as action against Iran. About 50% of Oil and gas supplies to Europe are from Russia, moreover, Russia still has holdings of about $40 billion in the US GSes Fannie Mae and Freddie Mac which they reduced from a stake of $100 billion.
However, the Russian President Medvedev in his recent statement warned that he did not want a revival of cold war with the west, but soon added, he was not scared of one either. A speedy solution in this crisis is expected from Russia as they still nurse hopes of comprehensively being part of globalization.