I looked for an article from Haaretz.com, but they've blocked all searches for Georgia I guess, as I've read numerous articles there on Georgia.
http://www.ynet.co.il/english/articles/0,7340,L-3580136,00.htmlWar in Georgia: The Israeli connection
For past seven years, Israeli companies have been helping Gerogian army to preparer for war against Russia through arms deals, training of infantry units and security advice
The fighting which broke out over the weekend between Russia and Georgia has brought Israel's intensive involvement in the region into the limelight. This involvement includes the sale of advanced weapons to Georgia and the training of the Georgian army's infantry forces.
The Defense Ministry held a special meeting Sunday to discuss the various arms deals held by Israelis in Georgia, but no change in policy has been announced as of yet.
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"The subject is closely monitored," said sources in the Defense Ministry. "We are not operating in any way which may counter Israeli interests. We have turned down many requests involving arms sales to Georgia; and the ones which have been approves have been duly scrutinized. So far, we have placed no limitations on the sale of protective measures."
Israel began selling arms to Georgia about seven years ago following an initiative by Georgian citizens who immigrated to Israel and became businesspeople.
"They contacted defense industry officials and arms dealers and told them that Georgia had relatively large budgets and could be interested in purchasing Israeli weapons," says a source involved in arms exports.
The military cooperation between the countries developed swiftly. The fact that Georgia's defense minister, Davit Kezerashvili, is a former Israeli who is fluent in Hebrew contributed to this cooperation.
"His door was always open to the Israelis who came and offered his country arms systems made in Israel," the source said. "Compared to countries in Eastern Europe, the deals in this country were conducted fast, mainly due to the defense minister's personal involvement."
Among the Israelis who took advantage of the opportunity and began doing business in Georgia were former Minister Roni Milo and his brother Shlomo, former director-general of the Military Industries, Brigadier-General (Res.) Gal Hirsch and Major-General (Res.) Yisrael Ziv.
Roni Milo conducted business in Georgia for Elbit Systems and the Military Industries, and with his help Israel's defense industries managed to sell to Georgia remote-piloted vehicles (RPVs), automatic turrets for armored vehicles, antiaircraft systems, communication systems, shells and rockets.
According to Israeli sources, Gal Hirsch gave the Georgian army advice on the establishment of elite units such as Sayeret Matkal and on rearmament, and gave various courses in the fields of combat intelligence and fighting in built-up areas.
'Don't anger the Russians'
The Israelis operating in Georgia attempted to convince the Israeli Aerospace Industries to sell various systems to the Georgian air force, but were turned down. The reason for the refusal was "special" relations created between the Aerospace Industries and Russia in terms of improving fighter jets produced in the former USSR and the fear that selling weapons to Georgia would anger the Russians and prompt them to cancel the deals.
Israelis' activity in Georgia and the deals they struck there were all authorized by the Defense Ministry. Israel viewed Georgia as a friendly state to which there is no reason not to sell arms systems similar to those Israel exports to other countries in the world.
As the tension between Russia and Georgia grew, however, increasing voices were heard in Israel – particularly in the Foreign Ministry – calling on the Defense Ministry to be more selective in the approval of the deals with Georgia for fear that they would anger Russia.
"It was clear that too many unmistakable Israeli systems in the possesion of the Georgian army would be like a red cloth in the face of a raging bull as far as Russia is concerned," explained a source in the defense establishment.
For inctance, the Russians viewed the operation of the Elbit System's RPVs as a real provocation.
"It was clear that the Russians were angry," says a defense establishment source, "and that the interception of three of these RPVs in the past three months was an expression of this anger. Not everyone in Israel understood the sensitive nerve Israel touched when it supplied such an advanced arms system to a country whose relations with Russia are highly tense."
In May it was eventually decide to approve future deals with Georgia only for the sale of non-offensive weapon systems, such as intelligence, communications and computer systems, and not to approve deals for the sale of rifles, aircraft, sells, etc.
A senior source in the Military Industry said Saturday that despite some reporters, the activity of Georgia's military industry was extremely limited.
"We conducted a small job for them several years ago," he said. "The rest of the deals remained on paper."
Dov Pikulin, one of the owners of the Authentico company specializing in trips and journeys to the area, says however that "the Israeli is the main investor in the Georgian economy. Everyone is there, directly or indirectly."
Georgian minister: Israel should be proud
"The Israelis should be proud of themselves for the Israeli training and education received by the Georgian soldiers," Georgian Minister Temur Yakobashvili said Saturday.
Yakobashvili is a Jew and is fluent in Hebrew. "We are now in a fight against the great Russia," he said, "and our hope is to receive assistance from the White House, because Georgia cannot survive on its own.
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"It's important that the entire world understands that what is happening in Georgia now will affect the entire world order. It's not just Georgia's business, but the entire world's business."
One of the Georgian parliament members did not settle Saturday for the call for American aid, urging Israel to help stop the Russian offensive as well: "We need help from the UN and from our friends, headed by the United States and Israel. Today Georgia is in danger – tomorrow all the democratic countries in the region and in the entire world will be in danger too."
