Late last week, Russian forces launched a massive bombardment of the Chechen capital, inaugurating a new offensive using more high-powered artillery than had been previously employed in the conflict. Chances for a peaceful resolution diminished earlier this month when Yeltsin rejected appeals from Western leaders to find a political settlement to the strife. Yeltsin and Russian officials insist that they are fighting Muslim terrorists, while Western leaders point to collateral damage of Chechen civilians and the mass exodus of over 200,000 Chechen refugees in recent months. Meanwhile, the situation is sure to be the primary subject of talks begun yesterday between Russian Foreign Minister Igor Ivanov and Knut Vollebaek, chairman of the Organization for Security and Cooperation in Europe (OSCE). Recently, the head of the International Monetary Fund (IMF) suggested that Russia's actions in Chechnya could affect the release of the IMF's next loan installment of 630 million dollars to Moscow. Russia has reacted with outrage to the proposal of such a linkage. The conflict has also worsened Russia's relations with its neighbor Georgia as officials accuse the Georgian government of allowing the movement of rebel troops and supplies back and forth across their mountainous border with Chechnya. Georgia steadfastly denies any collusion with the rebels.