Georgia 'close' to war with Russia

Russia's deployment of extra troops in the breakaway Georgian region of Abkhazia has brought the prospect of war "very close", …

Russia's deployment of extra troops in the breakaway Georgian region of Abkhazia has brought the prospect of war "very close", a minister of ex-Soviet Georgia said.

Separately, in comments certain to fan rising tension between Moscow and Tbilisi, the "foreign minister" of the breakaway Black Sea region was quoted as saying it was ready to hand over military control to Russia.

"We literally have to avert war," Temur Iakobashvili, a Georgian State Minister, told reporters in Brussels.

Asked how close to such a war the situation was, he replied: "Very close, because we know Russians very well."

"We know what the signals are when you see propaganda waged against Georgia. We see Russian troops entering our territories on the basis of false information," he said.

At a banking event in Madrid, Vice Finance Minister Dimitri Gvindadze said the Georgian economy was holding up despite the tensions. However ratings agency Fitch said a conflict would likely hit Georgia's ratings but not immediately Russia's.

"Obviously if we have an unfreezing of the conflict that will be extremely negative for the country (Georgia) and would lead to negative ratings action," Fitch's Edward Parker said in London.

Georgia, a vital energy transit route in the Caucasus region, has angered Russia, its former Soviet master with which it shares a land border, by seeking Nato membership.