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Russia forces on edge of South Ossetia capital: website

http://www.reuters.com…

Fri Aug 8, 2008 2:08pm EDT

By Margarita Antidze

MEGVREKISI, (Reuters) - Russian armored vehicles have entered the northern edges of the capital of the breakaway Georgian region of South , the separatists’ press service reported on its website on Friday.

“Russian armored vehicles have entered the northern suburbs of Tskhinvali,” the website cominf.org reported, adding that Georgian troops had started to retreat.

Moscow said its troops were responding to a Georgian assault to re-take the region, and ’s pro-Western President Mikheil Saakashvili said the two countries were at war.

would cut air links with the ex-Soviet state from midnight on Friday, the Russian Transport Ministry said.

Saakashvili told BBC World television had been massing troops on the northern border of for months.

” They have been calling it training exercises, but they have not been concealing the fact that they are training these troops for use inside ,” he said.

“The way the escalation went was we came first under extensive artillery barrage from the separatists … but in the end I was told that Russian armored vehicles started to cross the Georgian border. And that was exactly the moment when I had to take this decision to fire back.”

The head of ’s Security Council, Kakha Lomaia, said on Friday would withdraw 1,000 soldiers from Iraq to help fight off Russian forces in South .

The upsurge in violence in caused Russian shares to plummet on Friday and helped send emerging stock markets to their lowest level in almost a year.

President George W. , in Beijing for the opening of the Olympic Games, pledged U.S. support for ’s territorial integrity, the White House said.

“I want to reiterate on his behalf that the United States supports ’s territorial integrity and we call for an immediate ceasefire,” White House spokeswoman Dana Perino said in a statement.

U.S. TO SEND ENVOY

NATO and the European Union joined calls for a halt to the fighting.

In Washington, State Department spokesman Gonzalo Gallegos said the United States was sending an envoy to the region “to engage with the parties in the conflict”.

The president of South , Eduard Kokoity, was quoted as saying about 1,400 people had been killed as a result of “Georgian aggression”.

“About 1,400 died. We will check these figures, but the order of the numbers is around this. We have this on the basis of reports from relatives,” he told ’s Interfax news agency.

A senior Georgian security official said Russian planes had bombed a base outside the Georgian capital Tbilisi. The Interior Ministry said later three Georgian soldiers were killed.

Political analysts saw ’s bid to re-take its rebel region of South by force as a gamble by its leader that he could still count on Western support in a clash with .

“He is in big danger of losing the cachet he built up for himself in being pro-Western and the restraint he has often shown in the face of provocation by ,” said James Nixey, of the Royal Institute of International Affairs in London,.

“If he is going to start a war, he is going to lose the support of a lot of friends in the West.”

Saakashvili, who wants to take his small Caucasus country into NATO, has made it a priority to win back control of South and Abkhazia, another rebel region on the Black Sea.

The issue has bedeviled ’s relations with , angered by Tbilisi’s moves towards the Western fold and its pursuit of NATO membership.

EXPLODING SHELLS

The U.N. Security Council met at ’s request but failed to agree on a Russian-drafted statement. It planned to meet again later to continue discussions on the issue.

As fighting raged, the roar of warplanes and the explosion of heavy shells resounded more than three km (two miles) from Tskhinvali. Many houses were ablaze.

Georgian television showed footage of Georgian soldiers firing machineguns and driving armored personnel carriers through the deserted streets of Tskhinvali.

Shell holes pierced the grey concrete apartment bocks and plumes of smoke hung over the South Ossetian capital.

In other footage, Georgian soldiers sprinted through undergrowth and dived for cover as a Russian plane dropped bombs.

Russian Foreign Minister Sergei Lavrov accused the Georgians of driving people from their homes. “We are receiving reports that a policy of ethnic cleansing was being conducted in villages in South , the number of refugees is climbing, the panic is growing, people are trying to save their lives,” he said in televised remarks from the ministry.

The crisis, the first to confront Russian President Dmitry Medvedev since he took office in May, has flared in a region emerging as a key energy transit route, and where and the West are vying for influence.

It dented sentiment on ’s benchmark equity index, which fell more than 4 percent to a 14-month low while the rouble lost more than 1 percent against a basket of currencies.

Fitch Ratings cut its foreign-currency sovereign credit rating for by one notch to “B+” from “BB-” on Friday.

Medvedev vowed to defend Russian “compatriots” in South , where most people have been given Russian passports.

“We will not allow their deaths to go unpunished,” Interfax quoted him as saying.

The majority of the roughly 70,000 people living in South are ethnically distinct from Georgians. They say they were forcibly absorbed into under Soviet rule and now want to exercise their right to self-determination.

© Thomson Reuters 2008

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