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In May, the release of a $53 million tranche of U.S. aid was earmarked for good-governance projects, elections, media reform and energy infrastructure, said Joakim Parker, acting mission director of USAID in Tbilisi.

In addition, Rep. David Dreier, California Republican, and Sen. John Kerry, Massachusetts Democrat and chairman of the Foreign Relations Committee, are calling for a U.S.-Georgia free-trade agreement to boost the economy.

The war caused an estimated $1 billion in damage to Georgia’s infrastructure, which is under repair. Buildings were looted, schools destroyed and tanks and heavy military vehicles tore up roads. Infrastructure repair is important in restoring investor confidence.

After Russia occupied South Ossetia and Abkhazia, it formally recognized them as independent nations, creating complex problems.

Repatriation of split families and former residents will be difficult, said Alexander Nalbandov, Georgia’s deputy minister of foreign affairs. For years, Russia practiced “passportization,” issuing Russian passports to citizens of the two regions through a consular office in the nearby Russian city of Sochi, he said.

Ethnic Georgians living in the occupied regions were often driven out by local authorities or expelled if they refused to take Russian citizenship.

“The overwhelming majority hold Russian citizenship,” Mr. Nalbandov said. “Tskhinvali has been cleansed of Georgians,” he said, referring to the capital of South Ossetia.

Russia has defended its military intervention, saying it was necessary to “protect the life and dignity of Russian citizens wherever they may be.”

Recognition of the breakaway territories may result in demands for state-to-state negotiations, which Tbilisi would most likely refuse.

Thus far, productive dialogue between Georgia and its neighbors has been limited to shared infrastructure. The Enguri hydroelectric power plant on the west coast has its main dam in Georgia and its power-management controls in Abkhazia. After being repaired, the complex resumed operations.

“Both sides were interested in having the plant in workable condition, so we had to negotiate and work together,” Mr. Nalbandov said.

More difficult was South Ossetia’s cutoff of irrigation water to the surrounding regions in Georgia. It was restored after tough negotiations by international organizations, he said.