Financial Times FT.com

Medvedev endorses Georgia break-up

By Charles Clover in Moscow, Isabel Gorst in Tbilisi and Stefan Wagstyl in London

Published: August 26 2008 12:28 | Last updated: August 26 2008 21:03

Russian president Dmitry Medvedev on Tuesday recognised the independence of South Ossetia and Abkhazia, the two Russian-controlled breakaway regions of Georgia, in a surprise move that provoked strong criticism from the US and the European Union.

The decision could deepen the divide between Russia and the west and undermine efforts to establish political stability in the Caucasus region, the route of important oil and gas pipelines.

The Russian stock market fell 4.2 per cent on the news, reflecting concerns that Moscow might now face difficulties accessing international capital markets.

Condoleezza Rice, US secretary of state, said Washington regretted Russia’s decision and would block any attempt to secure wider recognition at the UN. “I want to be very clear,” Ms Rice said during a stop in Ramallah. “Since the United States is a permanent member of the [UN] Security Council, this simply will be dead on arrival.”

US president George W. Bush condemned Russia’s decision to recognise the two regions. “This decision is inconsistent with numerous United Nations Security Council resolutions that Russia has voted for in the past, and is also inconsistent with the French-brokered six-point ceasefire agreement which President Medvedev signed,” Mr Bush said in a statement from his Texas ranch. “Russia’s action only exacerbates tensions and complicates diplomatic negotiations.”

Speaking in Estonia, Angela Merkel, the German chancellor, who on Monday predicted the Kremlin would not proceed with recognition, said: “This contradicts the basic principles of territorial integrity and is therefore absolutely unacceptable.”

Georgia condemned the Russian move as “unconcealed annexation” and called on the west for support. President Mikheil Saakashvili said: “This is a test for the entire world and a test for our collective solidarity . . . Today the fate of Europe and the free world is unfortunately being played out in my small country.”

Mr Medvedev responded by dismissing western critics, saying in a television interview that “nothing frightens us, including the prospect of a cold war, but we do not want this, and in this situation all depends on the position of our partners”.

Western officials privately indicated they would not seek to push relations with Russia to breaking point, in view of the need for Moscow’s co-operation on issues including Iran and global terrorism. Their positions also reflect the practical difficulties the west would face giving military support to Georgia and the splits between more hawkish positions taken by the US and some east European states, and more conciliatory approaches of Germany and France.

However, tensions remained high on Tuesday night with Mr Medvedev accusing the US of shipping arms to Georgia on American naval vessels due to deliver aid today and later this week at the Georgian port of Poti. “And what the Americans call humanitarian cargoes, of course, they are bringing in weapons,” said the Russian president in a television interview.

The US dismissed this suggestion as “ridiculous”.

Mr Medvedev said Georgia’s leadership had brought the crisis on itself by attacking South Ossetia on August 7-8, to which Russia responded with armed intervention leaving it in control of large parts of Georgia.

Writing in Wednesday’s Financial Times, Mr Medvedev said: “Russia had no option but to crush the attack, to save lives. This was not a war of our choice. We have no designs on Georgian territory, but we had to halt a murderous assault.”

Additional reporting by Daniel Dombey in Washington