US President George W Bush today announced $US1 billion ($A1.2 billion) in new economic aid to Georgia to help the pro-Western former Soviet republic rebuild after Russia's invasion.
"Georgia has a strong economic foundation and leaders with an impressive record of reform," Bush said in his statement on the aid package. "Our additional economic assistance will help the people of Georgia recover from the assault on their country, and continue to build a prosperous and competitive economy."
Vice President Dick Cheney, due in Georgia tomorrow, planned to make the massive aid package a major highlight of his discussions with Georgian President Mikhail Saakashvili. Cheney, in Azerbaijan today, is on a tour of three former Soviet republics that are wary of Russia's intentions in what Moscow likes to call its "near abroad".
The administration is delaying an announcement on some sort of punishment of Russia for its actions against Georgia and its refusal thus far to comply with a French-brokered ceasefire.
However, the decision to shower tiny Georgia with such substantial aid and have Cheney talk about it in Moscow's backyard would likely be seen by the Kremlin as highly provocative, if not a punitive measure in and of itself.
That said, the US has found during this conflict that it has little leverage with newly enriched and empowered Russia.
Moscow has recognised the independence of the two separatist regions in Georgia that are at the heart of the conflict, but has drawn condemnations but little else from the United States and Europe.
Georgia, a former Soviet Republic and US ally, is an impoverished country wedged between Russia and Turkey on the Black Sea.
After years of tensions, the recent fighting began on August 7 when Georgian forces went into the breakaway province of South Ossetia in hopes of re-establishing control over it. Russian forces repelled the offensive and pushed deep into Georgia proper.
Both sides signed the ceasefire in mid-August, but Russia has ignored its requirement for all forces to return to prewar positions.
Bush said the money will meet both humanitarian needs, such as helping to resettle families that were displaced, and helping Georgia to rebuild infrastructure and boost its economy.
He said more than half of the funds will be made available in the near term. That leaves a sizable portion up to the discretion of a future Congress and the next White House occupant.
Bush feels confident in that area, as both the Democratic and Republican presidential candidates, Barack Obama and John McCain, have expressed strong support for Georgia's embattled government and Bush's approach to Russia's invasion.
The president also directed his defence, trade, transportation, treasury, diplomatic and commerce chiefs to expand their support for Georgia's economic recovery.
On trade, Bush said the United States would negotiate a deal to provide preferential access to Georgian exports. The president said his commerce secretary would dispatch a trade mission to Georgia in the coming weeks.
And Bush said his government would work with international partners to make sure that US aid was getting delivered, quickly, to those in Georgia who need it the most.
The money pales in comparison to the $US2 billion ($A2.4 billion) a year the US gives Israel, the largest recipient.
The International Monetary Fund also announced it has agreed to lend Georgia $US750 million ($A896.9 million) for economic recovery.