MEIENDORF CASTLE, RUSSIA - RUSSIA agreed to completely withdraw its troops from Georgia's heartland within a month on Monday, but there was no commitment to scale back its military presence in two Georgian separatist regions.

Last month's Russian invasion, that sent forces deep into Georgia in response to an attempt by Tbilisi to retake the breakaway region of South Ossetia, drew condemnation from the West and raised fears for the security of energy supplies.

After about four hours of talks at a neo-Gothic castle outside Moscow, Russian President Dmitry Medvedev and his French counterpart Nicolas Sarkozy announced an agreement to pull back hundreds of Russian troops still stationed in buffer zones inside undisputed Georgian territory.

'If all this happens as we have indicated ... that would mean that in a little more than a month, the conflict that could have had much worse human consequences, would be stopped. I mean the guns will fall silent,' Mr Sarkozy told a news conference.

Georgian President Mikheil Saakashvili said the deal on the pullback of Russian troops was a step forward.

'I think tonight a step forward was made, a step forward on the path towards the full implementation of the six points negotiated by President (Nicolas) Sarkozy on Aug 12,' Mr Saakashvili said following talks with Mr Sarkozy in Tbilisi.

Warships
In contrast to Russia's conciliatory tone with the EU over Georgia, tensions with the United States flared on Monday when Russia said it was sending warships for exercises in the Caribbean Sea, its biggest deployment there since the Cold War.

The United States said it was rescinding a US-Russian civilian nuclear pact, saying the time was not right for the agreement 'given the current environment.'

Mr Medvedev, after his talks with Mr Sarkozy, made clear that he would not reverse his decision to recognise Georgia's breakaway South Ossetia and Abkhazia as independent states, a move condemned by the West.

In a snub to Western governments, Russia's Foreign Ministry said in a statement it would on Tuesday formally establish diplomatic relations with the Moscow-backed regions.

'As for recognition, for us that issue is closed. From the point of view of international law, for us two new states have appeared,' Mr Medvedev said, standing alongside Mr Sarkozy.

He said Russia had already prepared cooperation agreements with Abkhazia and South Ossetia including one on military assistance. 'No one should have any doubts about that,' he said. -- REUTERS