The US is to give Georgia $1bn (£500m) in aid to help it rebuild after last month's war with Russia over its separatist enclaves.

The aid package, which will be announced later today by Condoleezza Rice, coincides with the start of trip by the vice-president, Dick Cheney, to the former Soviet republics of Azerbaijan, Georgia and Ukraine. The trip is designed to show US support for its allies in the region.

"President Bush has sent me here with a clear and simple message for the people of Azerbaijan and this entire region: The United States has deep and abiding interests in your wellbeing and security," Cheney said today on his arrival in Azerbaijan.

Moscow sent tanks and troops into Georgia last month after the Georgian government attempted to reassert control over South Ossetia by force. The scale of Russia's reaction, and its subsequent recognition of South Ossetia and Abkhazia, another breakaway Georgian region, as independent states has drawn condemnation from the west.

The aid package is expected to total just more than $1bn for reconstruction, staggered over two years. The US will specify that a significant proportion will be devoted to budget support, as well as to rebuild housing, transportation and other infrastructure destroyed in the conflict.

Sources said the White House plans to approach the campaigns of the Democratic presidential nominee, Barack Obama, and his Republican counterpart, John McCain, to get a guarantee the financial assistance will continue after President Bush leaves office in January.

The Bush administration is also considering moves to punish Moscow for the Georgian intervention, such as possibly scrapping a lucrative civil nuclear deal. The EU has criticised Russia for its military offensive but has so far stopped short of imposing sanctions.

Cheney will head to Georgia after visiting Azerbaijan, before visiting Ukraine, which, like Tbilisi, is also seeking membership of the Nato security alliance. He will also be promoting the need for former Soviet states to export their oil and gas reserves using routes that bypass Russia.

"The United States strongly believes that together with the nations of Europe, including Turkey, we must work with Azerbaijan and other countries in the Caucasus and Central Asia on additional routes for energy exports that ensure the free flow of resources," Cheney said.

The US aid offer comes on top of a loan of $750m from the International Monetary Fund. The loan is intended "to help mitigate the adverse economic and financial consequences of the recent conflict", the IMF said.