Apparently an underlying issue is an oil pipeline which runs just south of the disputed region and which transports something like 1% of the world's oil supplies. Another underlying issue is Georgia's desire to join NATO, as a way of getting some allies against the Russian bear at their door.
The article reports that Russia has issued Russian passports to a majority of the people who reside in Georgian South Ossetia. It is likely that many of the residents of South Ossetia would choose to secede from Georgia and join Russia.
Geographically, the region of Ossetia is bisected by the Russia-Georgia border. North Ossetia is a Russian province, South Ossetia is a Georgian province. Reuters reports:
The majority of the roughly 70,000 people living in South Ossetia are ethnically distinct from Georgians. They say they were forcibly absorbed into Georgia under Soviet rule and now want to exercise their right to self-determination.
Pay attention, world affairs fans, this could turn into something ugly and it may spread.
