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Russia and South Ossetia on Wednesday signed a treaty setting out the position of their joint border, TASS reports.

The foreign ministers of the two countries, Sergey Lavrov and David Sanakoev, inked the deal in Moscow.

Russian Foreign Minister Sergey Lavrov said Moscow will continue developing relations with Abkhazia and South Ossetia on an equitable and mutually respectful basis.

"We have made a new important step [the signing of a treaty on Russia’s state border with South Ossetia] in formalizing our relations, which will help dispel speculations about what our relations are," the foreign minister said.

"Our relations with Abkhazia and South Ossetia will continue developing on an equitable and mutually respectful basis," Lavrov said.

Russia’s Foreign Ministry noted on Tuesday that "such a document is of cornerstone importance for interstate relations between neighbouring countries."

"We hope that this will dispel insinuations disseminated by the Georgian side that an alleged 'annexation', 'merger', 'accession of South Ossetia [to Russia]' is being prepared," the ministry said in a statement, adding that "the aim of such speculations is to discredit Russian policy in the South Caucasus and to distort the essence of its cooperation with young republics."