Nauru agrees to recognise rogue republics for $70m

The tiny Pacific Island of Nauru has reportedly agreed to open diplomatic relations with two Russian-backed breakaway states in Georgia for a fee of $70 million.

Nauru - a country of just 11,320 people and best known as an atoll covered in nutrient-rich bird droppings - has broken with Western solidarity by announcing it will recognise the republics of Abkhazia and South Ossetia, the subjects of a fierce war between Georgia and Russia last year.

According to the Russian Kommersant newspaper, Moscow is preparing to give Nauru US$50 million ($70.3 million) in "humanitarian aid" in return for relations.

Nauru has previously received millions of dollars of assistance from New Zealand taxpayers. Officials here baulked at questions about the reports.

"It is not New Zealand's practice to make explicit statements concerning the recognition or non-recognition of states," said a Ministry of Foreign Affairs spokeswoman.

"Nauru is an independent sovereign country and the Government of Nauru makes its own decisions on its diplomatic relations."

Despite the enthusiasm of a delegation of Nauru politicians to the two renegade republics, Georgia considers both Abkhazia and South Ossetia to be occupied territory that remains part of Georgia.

The states were at the heart of the 2008 South Ossetia War, between Georgia on one side and the Russian Federation together with South Ossetians and Abkhazians on the other.

In addition to Russia - with which New Zealand has just signed a major economic agreement - and Nauru, Nicaragua and Venezuela are the only United Nations members which recognise Abkhazia and South Ossetia as independent states.

But Russia's attempts to buy international support on the issue have not always ended happily, the Guardian in London reported.

In October, Moscow offered Ecuador's President, Rafael Correa, US$200 million in loans. Mr Correa subsequently failed to recognise South Ossetia and Abkhazia, and Russia responded by not giving him the money.

Even Kremlin allies such as Belarus have declined to recognise the breakaway states.

"In mounting desperation, Russia courted Nauru's Foreign Minister, Kieren Keke," the Guardian reported.

"Over the weekend, Mr Keke dropped in to South Ossetia's capital, Tskhinvali. The Russian Foreign Minister, Sergei Lavrov, also invited him for talks."

Alexander Privalov, a columnist and political analyst in Moscow, told the newspaper that Nauru had previously taken money to recognise the independence of Kosovo and Taiwan.

In July 2002, Nauru accepted US$130 million from China to de-recognise Taiwan only to re-recognise it in 2005 after apparently receiving another, better offer.

"It seems that political demarches are a kind of business in Nauru," Privalov said. "I can't really understand what Russia gets out of this. It may be about making us look more decent."

Kommersant said Nauru's Parliament would legislate on South Ossetia and Abkhazia in its next session.

- NZPA