I think North and South Ossetia should be granted independence and form the Republic of Alania.
Why? Obviously the people consider themselves distinct and South Ossetia wants independence. However, South Ossetia, a region of 70,000 of which Russian funds amount to 60% of their economy, with the rest substinence farming and trade with Georgia, cannot survive on its own. However, North Ossetia which has 700,000 people and a well developed economy can. By putting them together you can create a viable state in the Caucasus for the people. Adding South Ossetia to Russia is out of the question, so this seems to be the best deal for the Ossetian people.





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