Russian President Vladimir Putin has signed a new treaty with the breakaway Georgian province of Abkhazia.
The new treaty envisions closer military and economic ties, and will put Russian and Abkhazian forces under a joint command.
Putin says the new treaty will see Moscow spend over 110 million US dollars in implementing the treaty next year.
"The point is to ensure absolute security for Abkhazia's existence, to ensure security of its borders, to create conditions for further development of trade and economic ties. And of course to improve people's lives after all."
Georgian Foreign Minister Tamar Beruchashvili is denouncing the treaty as a "step toward annexation".
"This concrete step we see as a concrete step toward annexation. We also believe that, as we observed the developments on the ground, this trend might continue covering South Ossetia as well. That's why prompt reaction from the international community condemning this action is extremely important and critical for Georgia's statehood."
Russian troops have been deployed in Abkhazia for more than two decades since the Black Sea region broke away from Georgia in a separatist war in the early 1990s.
Russia and Georgia fought a war in 2008 over Abkhazia and the Georgian region of South Ossetia.
Russia recognizes Abkhazia and South Ossetia as independent countries.
