The region of Caucasus proves to be very interesting field of research. It is especially true after year 1991. The fall of USRR opened the region (especially South Caucasus) for international influences. Three new-founded nations of Georgia, Armenia and Azerbaijan became a background for clashing interests and rivalries of Great Powers. Difficult situation of aforementioned nations is deepened by their political, social, ethnic and economic problems. Author tries to describe those problems and their causes. In the beginning article shortly characterizes the Caucasus region, its history, political situation and place in international relations. Author in detail analyzes chosen aspects of relations between Russia and South Caucasian republics including Russian intervention in Georgia in 2008 and Armenian- Azerbaijani conflict over Nagorno-Karabakh. The importance of the region in Russian foreign policy is also analyzed.