Economic Overview

The economy of South Ossetia is primarily agricultural, although there is significant industrial capacity in the capitol, Tskhinval. During the Soviet era, South Ossetia was a major provider of meat and dairy products to Georgia and the rest of the Soviet Union. Ossetian cheese and mineral water were known throughout the region. Since the fall of the Soviet Union, South Ossetia has struggled economically, and its development has been hampered by Georgian sanctions, including an embargo on cross-border trade including electricity. The 2008 Georgian attack left much of the country's infrastructure in ruins. But wih the help of the Russian Federation, the government has begun rebuilding its schools, hospitals and other key buildings. The State Commission on Reconstruction of the Republic has conducted an extensive damage assessment and the Russian Federation has pledged 10 billion rubles to the rebuilding process. The government has also established a fund to help small businesses get back on their feet. More than 450 people have applied for assistance.