Russia dictates peace terms

Russia yesterday dictated humiliating peace terms to Georgia in return for declaring a ceasefire of the Kremlin's five-day invasion of the tiny Black Sea country. Following a meeting with European Union President, France's Nicolas Sarkozy, Russian President Dmitry Medvedev called for a halt to fighting and agreed six principles of peace.

However the Kremlin also made additional demands which effectively amount to an annexe of South Ossetia and Abkhazia, the two breakaway pro-Russian provinces. Russia has insisted on a buffer zone around these areas, from which all Georgian forces would be excluded. Medvedev is also pushing for a vote by the two regions, giving them the right to join Russia and wants a treaty guaranteeing that Georgia will never use force to recapture them.

Georgia's president, Mikheil Saakashvili has accepted the ceasefire but has questioned a continued Russian military presence in Georgia. Medvedev yesterday scorned Saakashvili, calling him a "lunatic".

"The difference between lunatics and other people is that when they smell blood it is very difficult to stop them," Medvedev said. "So you have to use surgery."