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Message: Russia Drives Up Crude and Gold

Russia Drives Up Crude and Gold

posted on Aug 26, 2008 06:09AM

This declaration definitely confirms that Russia is not backing down this time. The U.S. may have stirred up a hornet's nest in Georgia and their Polish missile project only served to increase the buzz in Russia. Hurricane Gustav is also supporting crude somewhat. Notice the news came out of the BBC rather than any U.S. media outlet.

Regards - VHF

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Russia recognises Georgian rebels

Tuesday, 26 August 2008 14:48 UK

BBC News

President Dmitry Medvedev has declared that Russia formally recognises the independence of the breakaway Georgian regions of South Ossetia and Abkhazia.

The move follows a vote in both houses of parliament on Monday, which called on Moscow to recognise the regions.

The move, in defiance of a specific plea from the US president, provoked a wave of protest from Western countries.

Russia and Georgia fought a brief war this month over the provinces, which already had de facto independence.

Analysts say the move is likely to further escalate tensions between Russia and the West.

"I have signed decrees on the recognition by the Russian Federation of the independence of South Ossetia and the independence of Abkhazia," Mr Medvedev said in the announcement.

"That was no easy choice to make, but it is the sole chance of saving people's lives," Mr Medvedev added.

He blamed Georgia for failing to negotiate a peaceful settlement to the problem and called on other states to follow Russia's example.

Violation

Georgia's deputy foreign minister Giga Bokeria responded angrily, saying: "This is an unconcealed annexation of these territories, which are a part of Georgia."

Western countries, including the US, Germany, Britain and France immediately condemned the move.

US Secretary of State Condoleezza Rice, speaking from the West Bank city of Ramallah, said the decision was "regrettable".

Late on Monday, the US state department had warned that recognition of the two provinces' independence would be "a violation of Georgian territorial integrity" and "inconsistent with international law".

In a statement, Mr Bush had called on Russia's leadership to "meet its commitments and not recognise these separatist regions".

In the two breakaway regions, however, Moscow's move was warmly welcomed.

Residents in Abkhazia took to the streets to celebrate the news, firing into the air, Reuters reports, and in the South Ossetian capital of Tskhinvali there were scenes of jubilation.

"We feel happy. We all have tears in our eyes. We feel pride for our people," said Aida Gabaz, a 38-year-old lawyer in the Abkhaz capital Sukhumi.

'New understanding'

Earlier on Tuesday, Russia cancelled a visit by Nato's secretary general, one of a series of measures to suspend co-operation with the military alliance.

Russia's ambassador to Nato said the trip would be delayed until relations between the two were clarified.

Dmitry Rogozin said a "new understanding" needed to be reached between Russia and Nato.

The BBC's Humphrey Hawksley, in Moscow, says the recognition is bound to dramatically heighten tensions in Russia's already fragile relationship with the West.

He says this and a series of other announcements indicate that Russia is preparing itself for a showdown.

Although most of Russia's forces pulled out of the rest of Georgia last Friday, it is maintaining a presence both within the two rebel regions and in buffer zones imposed round their boundaries.

Port control

Some Russian troops also continue to operate near the Black Sea port of Poti, south of Abkhazia, where Russia says it will carry out regular inspections of cargo.

The US said on Tuesday that its warships would deliver aid to Georgia's port of Poti, which is under Russian control. The move could mean US and Russian forces coming face-to-face.

Earlier, the head of European security organisation, the OSCE, Alexander Stubb, accused Russia of trying to empty South Ossetia of Georgians.

Speaking to the BBC's Europe Today programme, he said: "They are clearly trying to empty southern Ossetia from Georgians, which I don't think goes by any of the books that we deal with in international relations".

At a checkpoint in South Ossetia, the BBC's Gabriel Gatehouse said a South Ossetian commander said many Georgian civilians had already left of their own accord, because they were scared of the guns.

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