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.