Russia's President Dmitry Medvedev's decision yesterday to recognise the Georgian rebel regions of South Ossetia and Abkhazia, was widely condemned in western capitals, with many governments calling it a blatant breach of international law.

The question facing the US and its allies is how to respond in a firm, unified way that avoids further escalation of the dispute. At stake is co-operation on topics such as Iran, Afghanistan and counterterrorism.