The United States recognized the independence of all the former Soviet republics by the end of 1991, including the South Caucasus states of Armenia, Azerbaijan, and Georgia. The United States has fostered these states' ties with the West in part to end the dependence of these states on Russia for trade, security, and other relations. The FREEDOM Support Act of 1992 provides authorization for assistance to the Eurasian states for humanitarian needs, democratization, and other purposes. In the aftermath of the September 11, 2001, terrorist attacks on the United States, the Administration appealed for a national security waiver of the prohibition on aid to Azerbaijan, in consideration of Azerbaijan's assistance to the international coalition to combat terrorism. Azerbaijani and Georgian troops participate in stabilization efforts in Afghanistan and Iraq, and Armenian personnel serve in Iraq.

This report examines Georgia's efforts to democratize and bolster its free market economy, while surmounting separatism, Russian economic sanctions, and other problems. U.S. policy and assistance are discussed. Basic facts and biographical information are provided. Related products include CRS Report RL33453, Armenia, Azerbaijan, and Georgia: Political Developments and Implications for U.S. Interests, by Jim Nichol.

The small Black Sea-bordering country of Georgia gained its independence at the end of 1991with the dissolution of the former Soviet Union. In early 2009, the United States and Georgia signed a Strategic Partnership Charter, which pledged U.S. support for democratization, economic development, and security reforms in Georgia. The Obama Administration has pledged continued U.S. support to uphold Georgia's sovereignty and territorial integrity. The United States has been Georgia's largest bilateral aid donor, budgeting cumulative aid of $2.7 billion in FY1992-FY2008 (all agencies and programs). Estimated aid to Georgia in FY2010 was about $171.6 million, and planned spending for FY2011 is about $90 million. The Administration has requested $87.6 million for foreign assistance for Georgia for FY2012.

This report offers background information and recent more development in Armenia, Azerbaijan, and Georgia political and economic situation. It also discusses U.S. policy, U.S. aid, U.S. trade and investments to these countries, congressional response and other legislation.