Russia warns EU over Georgia threats

He spoke as the European Union prepared for a summit to discuss the Georgia crisis and relations with Russia.

Mr Lavrov made it clear Moscow wants Mr Saakashvili out of power in Georgia. He said an arms embargo should be imposed on Georgia until a new government is in place.

He said it would be a “mistake of historic proportions” for the US and its allies to continue to back what he called the “Saakashvili regime”.

EU leaders seeking to punish Russia for its war with Georgia and its recognition of independence for two breakaway Georgian provinces have few options and are likely to choose diplomatic pressure to isolate Moscow at today’s summit.

Sanctions appear remote – in part because Western Europe depends on Russia’s energy supplies. But the 27 European leaders are expected to offer more humanitarian, economic and moral support for Georgia and signal that normal relations with Moscow are impossible with Russian troops violating a cease-fire agreement.

“Russia’s commitment to a relationship of understanding and cooperation with the rest of Europe is in doubt,” French President Nicolas Sarkozy wrote in a pre-summit letter to the EU leaders. “It’s up to Russia today to make a fundamental choice” and to engage neighbours and partners in settling disputes peacefully, he wrote.

Mr Sarkozy, current EU president, wrote that the leaders must “seriously examine relations between the European Union and Russia,” adding that he counted on a “clear and united message” to Moscow.

He said the EU must insist Moscow pull its troops from Georgia and be ready “to assume a presence on the ground in support of all efforts toward a peaceful and lasting solution to conflicts in Georgia.” He did not elaborate.

Yesterday Georgian Prime Minister Lado Gurgenidze asked the EU and the US to impose sanctions on companies and individuals doing business in its breakaway provinces of Abkhazia and South Ossetia without its permission.

“What we are calling for is...sanctions addressing those individuals, business and officials who by their actions, current or future, seek to somehow continue to violate our territorial integrity,” he said.

Prime Minister Vladimir Putin has angrily warned Europe not to do America’s bidding and has said that Moscow does not fear Western sanctions.

Possible EU actions against Russia include a boycott of the 2014 Winter Olympics in Sochi, holding off on talks for a broader economic partnership with Moscow, adding to the €11m in humanitarian aid to repair Georgia’s infrastructure, and contributing to the peace monitoring mission the Organisation for Security and Co-operation in Europe operates there.

Sanctions appear unlikely, as France’s Foreign Minister Bernard Kouchner said on Friday. One reason is Western Europe’s reliance on Russia’s energy supplies.

Russia supplies the EU with a third of its oil and 40% of its natural gas – a dependence the European Commission says will rise significantly in the future.

The European Commission has argued that while the EU needs Russia for oil and gas, Moscow also needs EU capital and expertise to develop new energy fields. Russia has vast gas and oil deposits, but output is not growing much because of ageing pipelines and monopolistic policies.

The Georgia crisis already is affecting Russia’s economy. Investors have begun leaving Russia and stock markets plunged.

Divisions have arisen, meanwhile, within the EU about how the bloc should respond.

Germany relies on Russia for 34% of its oil imports and 36% of its natural gas consumption. Slovakia, Finland and Bulgaria depend on Russia for over 90% of the gas that heats homes, cooks meals and powers factories.

Poland and other eastern EU members are among the most dependent on Russian energy but with fresh memories of Soviet domination, their leaders have been pushing for a tough European stance.

They are joined by Britain whose own oil and gas reserves make it less reliant on Russia. Britain has suggested Russia be expelled from the Group of Eight nations.