U.S. will work to rebuild Georgia: Kimmitt

WASHINGTON (Reuters) - The United States and its allies will work to provide Georgia with humanitarian aid and longer-term reconstruction aid in the wake of its conflict with Russia, a senior U.S. Treasury official said on Tuesday.

Deputy Treasury Secretary Robert Kimmitt told CNBC Television that Georgia's economy would recover from the Russian invasion and urged Russia to reopen communication and transport links in the war-torn country.

"They're going to come through with a commitment to economic reform," Kimmitt said of Georgia. "We and our international partners are going to do all that we can in the near term on humanitarian assistance and in the long term on reconstruction assistance."

The Treasury has been working with the International Monetary Fund, the World Bank and the European Bank for Reconstruction and Development to support reforms made by Georgia and ensure its economic changes continue.

All three institutions said last week they stood ready to help Georgia's government, which they said had acted to tackle corruption, quicken privatization and create a business-friendly environment that boosted capital flows.

Kimmitt said Russia had a stake in having "peaceful, prosperous neighbors" on its border. Moscow should withdraw its forces to their locations before hostilities started on August 6 and work to find an international solution to the crisis, he said.

Kimmitt said Russia's decision to send troops into Georgia was a "Cold War tactic" that, along with its recent treatment of foreign companies, has hurt its reputation.

He said Russia was "not playing by the rules of the 21st century" and hurting its business climate, causing foreign investors to seek opportunities elsewhere.

"Their near-term actions, however, have done significant damage to Russia's reputation, both politically and also economically," Kimmitt said. "As they look toward the long-term future -- a better life for the Russian people -- they need access to international markets, they need to participate in key international organizations, and they need to draw foreign direct investment."

(Reporting by David Lawder; Editing by Dan Grebler)