Rice announces $1 billion in U.S. aid for Georgia

WASHINGTON (Reuters) - The United States on Wednesday announced at least $1 billion in aid to help U.S. ally Georgia rebuild after its conflict with Russia over the separatist enclave of South Ossetia last month.

Secretary of State Condoleezza Rice unveiled the package to help reconstruct Georgia's economy and infrastructure that was destroyed by the Russian military as it crushed Georgia's attempt to reassert control over South Ossetia.

"We have been determined to help Georgia to sustain itself during these difficult times," Rice told a news conference.

She said the funds were a significant contribution to Washington's long-term commitment to Georgia, which would "survive, rebuild and thrive." The package included no military aide, Rice said, adding it was not yet time to look at military assistance to Georgia.

She said the first tranche of $570 million would be delivered by the end of 2008 and the rest by a new U.S. administration that takes over in January 2009.

"We are also confident that the United States will keep a commitment that has strong bipartisan support for a second phase of support, an additional $430 million," said Rice.

Rice also took aim at Russia and said it was not achieving its objectives through its actions in Georgia and that Georgian democracy was "thriving."

"Russia has done itself in on this," she added of the conflict.

It was not immediately clear whether any of the package would require congressional approval. But aid to rebuild Georgia enjoys broad bipartisan support already on Capitol Hill.

Democratic presidential candidate Sen. Barack Obama of Illinois already has endorsed a proposal by his vice presidential running mate, Delaware Sen. Joe Biden, for $1 billion in aid to the former Soviet republic.

The aid plan was unveiled as Vice President Dick Cheney began a trip to the former Soviet republics of Azerbaijan, Georgia and Ukraine destined to show U.S. support for its allies in the region despite Russia's military intervention.

Moscow's decision to send tanks and troops into Georgia last month 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.