Russia has formally recognised the breakaway Georgian regions of South Ossetia and Abkhazia as independent.
In a move that has drawn widespread criticism from Western governments President Dmitry Medvedev announced that he had signed decrees this afternoon.
'I have signed decrees on the recognition by the Russian Federation of the independence of South Ossetia and the independence of Abkhazia,' he said in the announcement.
'That was no easy choice to make, but it is the sole chance of saving people's lives,' Mr Medvedev added.
The Russian President blamed Georgia for failing to negotiate a peaceful settlement to the problem and called on other states to follow Russia's example.
He has also ordered the Russian foreign ministry to establish diplomatic ties with the two regions.
The Russian news agency Interfax has reported that the South Ossettian leader Eduard Kokoity has said he will ask Moscow to set up a military base in the region.
The Minister for Foreign Affairs, Micheál Martin, has condemned the decision by Russia to recognise the two regions.
The Minister said: ‘This deeply regrettable decision is contrary to the principles of Georgia's sovereignty, independence and territorial integrity.’
‘Moreover, it can only complicate the urgent task of finding political solutions to the acute difficulties in the region and to the wider international tensions which have developed over the past weeks.’
NATO condemnation
Russia's move was swiftly condemned by NATO governments.
The US Secretary of State Condoleezza Rice described it as 'regrettable'.
In London, the British government said it rejected the decision to recognise the two rebel regions.
'We reject this categorically and reaffirm Georgia's sovereignty and territorial integrity,' a spokeswoman for the government's Foreign Office said.
German chancellor Angela Merkel said the move was 'unacceptable'.
NATO Secretary-General Jaap de Hoop said: 'This is in direct violation of numerous UN Security Council resolutions regarding Georgia's territorial integrity, resolutions that Russia itself has endorsed.'
The Russian president's statement also drew a swift response from the authorities in Tbilisi. Georgia's deputy foreign minister said the move amounts to an annexation by Moscow of Georgian territory.
U.N. Secretary-General Ban Ki-moon fears that Russian recognition of Georgian rebel regions may complicate Security Council efforts for a solution, his spokeswoman said.
US President George Bush had earlier called on his Russian counterpart not to recognise the two breakaway regions as independent.
Mr Bush said Georgia's borders must be respected. 'I call on Russia's leadership to meet its commitments and not recognise these separatist regions,' he said.
Georgia's territorial integrity and borders must command the same respect as every other nation's, including Russia's,' he said in a statement from his Texas ranch.
Celebrations
In the two breakaway regions, however, Moscow's move was warmly welcomed.
Residents in Abkhazia took to the streets to celebrate the news, firing into the air, and in the South Ossetian capital of Tskhinvali there were scenes of jubilation.
'We feel happy. We all have tears in our eyes. We feel pride for our people,' said Aida Gabaz, a 38-year-old lawyer in the Abkhaz capital Sukhumi.
Russia and Georgia, which hosts two major energy pipelines, fought a brief war this month after Tbilisi sent troops to try to retake South Ossetia, a pro-Moscow region that threw off Georgian rule in the 1990s.
Russia responded with a massive counter-attack that overwhelmed the Georgian military, and then sent troops into Georgia proper, where some remain.
The push by Russia's parliament to recognise South Ossetia and Abkhazia followed US recognition of Kosovo's independence from Serbia in February over strenuous objection from Moscow.
Russian withdrawal 'inadequate': G7
Moscow has withdrawn most of its forces from central and western Georgia and says those still in place are peacekeepers needed to avert bloodshed and protect the breakaway regions.
But Georgia and Western governments say Moscow has not complied with a French-brokered ceasefire agreement to pull its troops back to lines held before the start of fighting.
'There continues to be a large presence of Russian forces in Georgia,' US Defence Department spokesman Bryan Whitman told reporters. 'It's fair to say that they are still not living up to the terms of the ceasefire agreement.'
Officials from the Group of Seven industrialised nations spoke yesterday and agreed the Russian withdrawal was inadequate, the US State Department said.
Georgia and the West also object to the scale of the Russian-imposed buffer zone adjoining the two rebel regions, which hands Moscow pressure points on key oil and trade routes through Georgia to the Black Sea.
Mr Cheney, who in the past accused Moscow of blackmailing its neighbours, will to go to Georgia in September to show US commitment to the small but vital ally, the White House said. Mr Cheney will also visit Ukraine, Azerbaijan and Italy during the trip.
'The Vice President will be delivering ... the word of America's support, and also consulting on how these leaders in the region see the future playing out,' White House spokesman Tony Fratto told reporters in Texas.
