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Subject

Controversial moves to mark the South Ossetia border.

Significance

In early July, border guards of South Ossetia (SO) -- a breakaway province of Georgia -- started to place border signs along the former administrative border line (ABL) between SO and adjacent Georgian provinces. The Tbilisi government opposes the idea of 'borderisation' whereby the administrative border between SO and other Georgian provinces are treated as an international border between two separate subjects of international law. The actions of South Ossetian and Russian troops do just that.

Impacts

Georgia will now have more incentives to spend on rearmament.

The threat to the Baku-Supsa oil pipeline will discourage use of the Supsa terminal, and states and firms will explore alternative routes.

The EU will be reluctant to intensify relations with Georgia for fear of becoming embroiled in the conflict over the breakaway provinces.

However, NATO may supply monitoring equipment to Georgia against unexpected Russian encroachments on its territory.

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