Georgia-Russia conflict
Georgia, Russia trade drone claims; monitors arrive
By Margarita Antidze and Matt Robinson TBILISI (Reuters) - Georgia said on Tuesday it had shot down a Russian reconnaissance drone near breakaway South Ossetia, but Russia denied the claim and accused Tbilisi of "provocation" ahead of the arrival of EU ceasefire monitors. If confirmed, the downing of the drone over Georgian territory would be the first such incident since last month when Russian forces repelled a Georgian offensive to retake the South Ossetia region from pro-Moscow separ Full Article
ANALYSIS
Crisis sharpens divisions
The Georgia crisis has sharpened divisions in Europe about how to deal with Russia and splits within NATO over the wisdom of granting membership to Georgia and Ukraine. Full Article
REACTION
Death toll doubted
Human rights activists have challenged Russia's estimate of the death toll from Georgia's assault on breakaway South Ossetia and rejected Moscow's assertion that the rebel capital had been destroyed. Full Article
The Caucasus tinderbox is alight again. How far will the flames spread this time and what can the outside world do to extinguish them? Go to Blog
MARKETS AND ECONOMIC IMPACT
Russian impact limited
The political fallout from the Russian incursion into Georgia may be great in terms of Moscow's relations with the West, but the impact on its asset classes looks set to be short-lived. Full Article
