August 26 Dzuarikau-Tskhinvali gas pipeline bypassing Georgia on solemnizing a year since Russia recognized independence of Abkhazia and South Ossetia launched. The project cost Gazprom U.S. $476 million.

Russian “Gazprom” OJSC and S. Ossetian side signed a gas agreement on a large-scale gasification of the country for 20 years. 69 kilometers of the new 169 kilometer-long gas pipeline goes through S. Ossetian territory, whereas over 70 kilometers — through a high mountain area (apex is 3,148 meters).

Presently the gas to S. Ossetia is delivered via Agara-Tskhinvali branch of Tbilisi-Kutaisi pipeline.

RF PM Vladimir Putin and S. Ossetian President Eduard Kokoity signed an intergovernmental agreement on social-economic assistance during the August 26 meeting. Thus, Russia intends to allocate over U.S. $10bn to S. Ossetia this year.