WASHINGTON, Aug 17 (AFP) - US Secretary of State Colin Powell has pressed the Russian government to ease tensions with Georgia over the breakaway region of South Ossetia and the importance of transparency in prosecuting oil giant Yukos, the State Department said Tuesday.
In a phone call with Russian Foreign Minister Sergei Lavrov on Monday, Powell highlighted US concerns about the situation in South Ossetia, where there have been deadly firefights between Georgian troops and pro-Russian Ossetian gunmen, deputy spokesman Adam Ereli said.
"They reviewed developments there," Ereli told reporters, adding that the United States and Russia were "working with the parties to promote a dialogue and a peaceful resolution of the issues in South Ossetia."
Clashes resumed in Georgia's pro-Russia separatist region of South Ossetia on Tuesday, leaving one Georgian soldier dead and three wounded. President Mikhail Saakashvili appealed for international peacekeepers to mediate.
Repeated clashes have undermined the internationally brokered ceasefire signed late last week between Georgia, Russia and South Ossetia and the Organization for Security and Cooperation in Europe, in an intense drive to defuse the crisis in the region.
Tensions have soared over the past two months as Georgia has stepped up pressure to bring separatist regions back under its control -- turning its attention to Ossetia after winning back semi-autonomous Adjara in June.
Powell also raised the Yukos case, which has become an issue of concern in Washington due to the company's important place in oil production, Ereli said. Powell repeated the US position that the chaos surrounding the case could hurt prospects for much-needed foreign investment in Russia's economy, particularly in the oil sector.
"On Yukos ... the secretary did note to Foreign Minister Lavrov that we're following it carefully and that developments in the case have an impact on investment, and it's important that the rule of law and due process be preserved," Ereli said.
Trading in Yukos shares came to a near standstill Tuesday, as investors tired of endless rumors over the fate of Russia's largest oil producer and a Moscow court failed to come out with an expected decision over whether the embattled firm could force the government to sell its contested stake in a rival company to pay off a crushing tax bill.