The North Atlantic Treaty Organization (NATO) on Tuesday suspended ties with Russia until Moscow withdraws its forces from Georgia, and the United States warned that Russia would not be allowed to re- establish Soviet-era borders.
There were signs of hostilities abating with Russian troops slowly withdrawing from undisputed parts of Georgia, but the 26-member NATO alliance strongly urged Russia to "take immediate action to withdraw its troops from the area."
"The NATO-Russia Council meetings would be placed on hold until Russia adhered to the ceasefire, and the future of our relations will depend on the concrete actions Russia will take to abide by the peace plan," NATO Secretary General Jaap de Hoop Scheffer said at a press conference.
"We are not closing doors. ... But we cannot continue with business as usual, ... as long as Russia does not commit to the principles upon which we agreed to base our relationship."
US Secretary of State Condoleezza Rice said in a statement from the emergency meeting of NATO foreign ministers that the military alliance was "not going to permit a new line to be drawn in Europe."
"It's time for the Russian president to keep his word to withdraw back to the status quo ante of August 6-7," before fighting broke out in the Georgian breakaway region of South Ossetia, Rice said.
By Tuesday evening, Russian President Dmitry Medvedev promised that the withdrawal of his troops would be complete by Friday, with the exception of 500 troops as a security measure for the local population. Medvedev had first promised a withdrawal more than one week ago.
NATO decided to create a new commission for dialogue with membership-hopeful Georgia.
While welcoming the move, Georgia's Deputy Prime Minister Giorgi Baramidze said that the NATO decision on Russia could not be an "isolated" statement and must mark the beginning of a political process within the alliance to make it clear to Moscow there will be a price to be paid for the invasion.
Russia's ambassador to NATO, Dmitry Rogozin, accused the United States of helping Georgia plan its attack on South Ossetia.
"Today, NATO demonstrated that it originated in and is still from the time of the Cold War. It doesn't matter what their propaganda says," he said.
The UN Security Council in New York for the first time drew up a draft resolution to demand "full and immediate" compliance with the agreed ceasefire in the Caucasus conflict.
The French draft reaffirms UN members' commitment to respect the sovereignty, independence and territorial integrity of Georgia "within its internationally recognized borders." France, which holds the EU presidency, brokered the August 11 ceasefire.
Defending its slow withdrawal, the Russian military said it was proceeding cautiously to avoid creating a power vacuum that could lead to further violence in northern Georgia.
"We clearly state that we will fulfill our obligations agreed to in the six-point plan, but we shall do so at a tempo dictated by conditions on the ground," Deputy Chief of Staff Anatoly Nogovytsyn said.
In a conciliatory step, Russia agreed to the stationing of 20 military observers from the Organization for Security and Cooperation in Europe (OSCE) to be deployed immediately to an area adjacent to South Ossetia.
Meanwhile, Russia and Georgia exchanged prisoners in the first handover since the outbreak of hostilities. Russian Army officials handed over 15 Georgian prisoners of war and received five Russian servicemen in exchange, including two pilots.
On Tuesday, UN High Commissioner for Refugees Antonio Guterres began a four-day visit to Georgia for a first-hand assessment of the needs of an estimated 158,700 refugees of the Caucasus conflict.
UNHCR spokesperson Andrej Mahecic in Geneva described the situation on the ground in Georgia as "volatile and unpredictable."
The UN appealed for 58.6 million dollars from the international community to help Georgians affected by the conflict.
"While the most acute phase of the violence appears to have passed, until there is a firm peace in the country we must be prepared to respond to a critical and fluctuating humanitarian situation," UN relief official Catherine Bragg said.
After all the warnings, threats and promises, at the end of Tuesday, Russian troops remained fully in control of enclaves in the undisputed Georgian cities of Gori and Poti, with forward troops continuing to improve their positions.
Russian forces were permitting Georgian civilian vehicles and foot traffic along most but not all roads in their sectors of control, and were searching travellers for weapons.
Moscow released a list of Georgian military equipment captured in the conflict, including 65 tanks, more than 30 other armoured vehicles, Osa anti-aircraft systems, Czech-built self-propelled Howitzers and more than 2,000 rifles and machine guns.
"We will not give any of it back," said Ivan Konashekov, a Kremlin spokesman. "We will use it ourselves or destroy it."