U.S. to announce over $1 billion in aid for Georgia
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WASHINGTON (Reuters) - The Bush administration will announce on Wednesday an aid package of more than $1 billion to help Georgia rebuild after its war with Russia over the separatist enclave of South Ossetia last month, U.S. officials said.
The aid was to be unveiled as Vice President Dick Cheney began a trip to the former Soviet republics of Azerbaijan, Georgia and Ukraine designed to show U.S. support for its allies in the region despite Russia's military intervention.
Moscow sent tanks and troops into Georgia last month to crush the Georgian government's attempt to reassert control over South Ossetia.
Russia's action, and its subsequent recognition of South Ossetia and Abkhazia, another breakaway Georgian region, as independent states has drawn condemnation from the West but few tangible actions to punish Moscow.
Sources familiar with the U.S. aid package said it was expected to total about $1.07 billion for reconstruction, with $570 million to be disbursed this year and $500 million subsequently. None of the money is expected to go for military aid, a highly sensitive issue to Moscow, the sources said.
A significant proportion would be devoted to budget support as well as to rebuild housing, transportation and other infrastructure destroyed in the conflict, one source said.
The White House plans to approach the campaigns of Democratic presidential nominee Sen. Barack Obama and Republican Sen. John McCain to seek their commitment to continue the assistance after President George W. Bush leaves office on January 20, the sources said.
Secretary of State Condoleezza Rice was scheduled to announce the aid package Georgia and Bush was to issue a statement about it.
The amount of the aid package appears to dovetail with a proposal by Delaware Sen. Joe Biden, the Democratic vice presidential nominee, who has called for Congress to approve $1 billion in aid to Georgia -- a proposal Obama has endorsed.
The Bush administration is also considering moves to punish Moscow for the Georgian intervention, such as possibly scrapping a lucrative civil nuclear deal, but has not announced any such sanctions.
The European Union has criticized Russia for its military offensive but stopped short of imposing sanctions.
Cheney began his trip in Azerbaijan and was then to head to Georgia and on to Kiev for meetings with Ukraine's pro-Western government, which, like Tbilisi, is defying Moscow by seeking membership of the NATO security alliance.
Azerbaijan and Georgia are key links in the chain of a Western-backed energy corridor that bypasses Russia, but which the West fears could be in jeopardy after last month's war.
(Additional reporting and writing by Arshad Mohammed; Editing by Chris Wilson)
