Vladikavkaz (Russia), Aug 9 (RIA Novosti) Russian President Dmitry Medvedev has pledged more economic and financial assistance to South Ossetia on the anniversary of his country's victory in the war against Georgia.

'Russia will assist you in everything from the economic and social point of view. We of course will even provide aid for military issues, because without military assistance there will be more problems,' Medvedev said at a function organised here Saturday to decorate officers and soldiers who took part in the Russia-Georgia war.

More than 160 civilians and 67 Russian service personnel, including peacekeepers, were killed during the five day conflict last year.

Russia launched a military attack on Georgia after the latter attacked the former Georgian republic of South Ossetia last August.

Russia reacted swiftly expelling Georgian troops from the region and subsequently recognised both South Ossetia and Abkhazia, another former Georgian republic.

Talking about his recent visit to Tskhinvali, the capital of South Ossetia, Medvedev said: 'There are signs of new life - new homes, schools.