The U.S. has warned Russia must end its onslaught on Georgia or risk 'serious consequences' in terms of its relationship with America and the world.
Dick Cheney, the U.S. vice-president, has personally called the Georgian President Mikheil Saakashvili to reassure him of their support in the conflict.
Amid claims Moscow intends to seize the whole country to gain control of its crucial oil pipelines, he declared 'Russian aggression must not go unanswered'.
In a statement, Mr Cheney added: 'Its continuation would have serious consequences for its relations with the United States, as well as the broader international community.'
He spoke as President George W. Bush revealed he had told Vladimir Putin, the Russian Prime Minister that Moscow's response to the grab for South Ossetia had been 'disproportionate' and 'unacceptable'.
'I was very firm with Vladimir Putin. I expressed my grave concern about the disproportionate response of Russia,' said Mr Bush in Beijing.
'We strongly condemn bombing outside of South Ossetia.'
Georgia claims its troop have retreated from the breakaway state and are honouring a cease-fire but Russia disputes this is the case.
U.S. officials say Moscow has in fact expanded the blitz into new areas. The White House has so far refused to indicate what recourse it might take if that continues.
The region is an international flashpoint, given its vital position in terms of oil supplies which run from the Caspian Sea to Europe through the small country.
It is feared the Kremlin could be using the conflict to disrupt fuel supplies, which would make the West even more dependent on Russian oil.
With the death toll from three days of war rising above 2,000, there were fears that the conflict could escalate further as:
• The Russian Defence Ministry claimed to have sunk a Georgian missile boat which was trying to attack its navy in the Black Sea;
• The Georgian government claimed that 4,000 Russian troops have landed in the country's other breakaway region, Abkhazia, to stir up more trouble;
• There were signs that Russia's superior firepower is already threatening to overwhelm its small neighbour, which has called for a ceasefire.
The Kremlin said it rejected these calls, because it does not believe the Georgians are retreating from South Ossetia.
It is this breakaway region - which, unlike Georgia proper, is loyal to Russia - which provided the catalyst for the dispute.
Pro-Moscow rebels provoked Georgia's president into ordering his troops into South Ossetia last week.
Mr Putin's government then retaliated with a counter-offensive to seize back the disputed region.
However, the escalation of violence has led to concerns that Russia could try to annex the entire country.
'They want the whole of Georgia,' claimed Mr Saakashvili. 'The Russians need control over energy routes from central Asia and the Caspian Sea.
'In addition, they want to get rid of us, they want regime change. Every democratic movement in this neighbouring region must be got rid of.'
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