The West is fuming at Russia. NATO and the EU have strongly condemned Moscow's recognition of Georgia's separatist regions as independent states.
The conflict over South Ossetia and Abkhazia now has a distinct Cold War feel about it, with the British foreign minister heading to the Ukraine -- another pro-Western ex-Soviet state -- to build a coalition against Russia.
Western powers do have means to retaliate, but how far will they go? They need Russian oil and gas, and they need Russian support on Afghanistan and Iran's nuclear programme.
To discuss the balance of power Armen Georgian is joined by Galia Ackerman, a Russia specialist at Radio France International.
To watch the interview, please click on the video.