By Gleb Bryanski
SUKHUMI, Georgia (Reuters) - Russian Prime Minister Vladimir Putin pledged half a billion dollars to defend the breakaway region of Abkhazia on Wednesday during a surprise visit which Georgia said escalated tensions in the Caucasus.
Putin's tour of the enclave underscores Moscow's increased foothold in the rebel regions since Russian troops repelled a Georgian attempt to retake South Ossetia in a five-day war which ended on August 12, 2008.
Tensions have been rising along the de facto borders between the regions and Georgia proper, raising concerns that another conflict could easily erupt.
"Russia has recognised the independence of Abkhazia and intends to, and will, provide all embracing economic, political and, if needed, military support," Putin said at a news conference in the local capital Sukhumi.
"Frankly speaking, Abkhazia needs no other recognition except Russia's," said Putin, who urged Russian businesses to snap up assets in Abkhazia.
Only Nicaragua has followed Russia recognition of Abkhazia and South Ossetia as independent states and the rest of the world views the enclaves as part of Georgia.
Georgia said Putin's trip to the region was a direct challenge that would escalate tensions in the Caucasus, a key route for oil and gas flows from the Caspian Sea.
"Putin's visit to the occupied territory of a sovereign country is yet another provocation," Georgia's Foreign Ministry said.
The trip was "yet another attempt to destabilise the situation and escalate tension in the Caucasus region." it said.
The European Union last month criticised a visit by Russian President Dmitry Medvedev to South Ossetia and said it supported Georgia's territorial integrity. The United States has called for Georgia's sovereignty to be respected.
RUSSIA-BACKED REGION
Putin said Russia would spend 15 billion-16 billion roubles (281-299 million pounds) in 2010 on strengthening Abkhazia's defences, including shoring up its borders and equipping Russian military bases.
When asked if there would a repeat of last year's war, Putin told Abkhaz reporters: "With today's Georgian leadership, you cannot rule anything out."
Underlining continued tensions, one person was killed and two wounded in a bomb blast in the Abkhaz resort of Gagra. A loud blast was also heard by a Reuters reporter in Sukhumi after Putin had left. It was not clear who was responsible.
Putin's visit underscores Russia's dominance of Georgia's rebel regions, which broke away from Georgia's rule after wars in the early 1990s and have run their own affairs ever since.
Pro-Russian billboards -- "Russia and Abkhazia: together for prosperity" -- dotted the streets of Sukhumi, which is nestled among vineyards and orchards on the Black Sea coast.
"Putin is our guardian angel," mothers of Abkhaz fighters who were killed in the 1992-93 war chanted after Putin laid flowers at a cenotaph in honour of those who fell in the war.
Russian Defence Minister Anatoly Serdyukov said Moscow was keeping 3,636 servicemen in Abkhazia and "a bit less" in South Ossetia. He ruled out any plans to boost the military presence.
Russia will give an additional 10.9 billion roubles to help Abkhazia rebuild its infrastructure and create jobs, Putin said.
Putin later visited a new maternity hospital, where male twins were born half an hour before his arrival. "They will be called Vladimir and Dmitry," said beaming maternity hospital head Liana Achba, referring to Putin and Medvedev.
(Reporting by Gleb Bryanski, writing by Guy Faulconbridge, editing by Angus MacSwan)
