President Dmitry Medvedev's declaration prompted bursts of celebratory gunfire in the streets of South Ossetia and Abkhazia but immediate censure from the United States and its allies.

"We're not afraid of anything," Medvedev declared when asked on television if he feared the stand-off would lead to a new Cold War.

Russia condemned a build-up of Nato ships in the Black Sea, said by the West to be delivering aid and conducting previously arranged exercises.

He said Russia had shown "restraint and patience" with Georgia and had repeatedly sought to resolve the dispute through negotiations.

Medvedev said Russia's proposals to Georgia went unanswered.

"Unfortunately, they were ignored also by Nato and the UN."

US Secretary of State Condoleezza Rice called the Russian move "regrettable" and insisted the two regions "are clearly within the internationally recognised borders of Georgia."

"This contradicts the principle of territorial integrity, a principle based on the international law of nations and for this reason it is unacceptable," German Chancellor Angela Merkel said.

British Foreign Secretary David Miliband said Russia's decision "further inflames an already tense situation" and vowed to build the "widest possible coalition against Russian aggression in Georgia."

"We consider that this is a regrettable decision and we reiterate our commitment to the territorial integrity of Georgia," a French foreign ministry spokesman said.

Bulgaria, the Czech Republic and Sweden added their voices to the opposition.

Russia's ambassador to Nato earlier announced Moscow was suspending cooperation with Nato and a visit by the Western military alliance's secretary general Jaap de Hoop Scheffer.

Tensions have mounted since Russian forces entered Georgia on August 8 to thwart a Georgian attempt to retake South Ossetia.

France brokered a ceasefire but the United States and other Western nations have accused Russia of breaching the accord by keeping tanks and troops in Georgia.

The US embassy in Tbilisi announced that a US navy destroyer carrying humanitarian aid was headed to the Georgian port of Poti, but later said it could no longer confirm the operation.

Other US and Nato vessels are also in the Black Sea or heading there and a top Russian general questioned the "extreme level" of Nato naval activity in the region.

The international community had warned Russia against recognising South Ossetia and Abkhazia, which broke from Georgia in the early 1990s with Moscow's backing after protracted separatist wars.

Nampa-AFP

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