Bulletin and Analysis

New developments overnight in the “war” that has developed between the Russian Federation and the Republic of Georgia. A battle has been reported, by Russian news agencies, centered on Tskhinvali, the “capital” of the non-recognized autonomous government of South Ossetia. Eyewitnesses have described the city as having been “devastated” by the Georgian assault. Heavy bombardment was also reported for the city of Poti and surrounding villages. Heavy civilian casualties are reported by several sources; however independent confirmation of the Georgian government figure of “1,000″ is not possible.

It is also important to note that attacks are reported by the BBC near the Baku-Tbilisi-Ceyhan pipe-line which supplies oil from the Caspian Sea to the West. This could prove to be a pretext for western powers to involve themselves; something which should be avoided at all costs. Also: watch oil prices, hysterical trader reaction possible. The BBC also reports that Georgian Government has evacuated some of its Tbilsi [capital] offices as a precaution against anticipated Russian attack.

Meanwhile, U.S. Secretary of State Condoleezza Rice demanded cease-fire and withdrawal of Russian forces from the region; other world leaders also called for immediate cease-fire however this seems unlikely to occur. The E.U. and U.S. are sending delegations and reliable reports say that NATO is to become involved; NATO involvement is risky as Georgia’s attempt to join NATO produced contention between Tbilisi and Moscow.

Stay tuned for further news and analysis as required; Updates also may be found on twitter