Putin vows retaliation for Georgian action in South Ossetia

"It is regrettable that on the day before the opening of the Olympic Games, the Georgian authorities have undertaken aggressive actions in South Ossetia," said Putin in the Chinese capital Beijing.

"They have in effect begun hostilities using tanks and artillery," he added. "It is sad, but this will provoke retaliatory measures."

Georgia has said that most of South Ossetia has been "liberated" following a lightning overnight offensive on the Russian-backed breakaway region of South Ossetia.

Georgia has also accused Russian aircraft of bombing inside Georgia during the fighting, and has called on its citizens to mobilize.

Putin said he had discussed the situation with Chinese leaders and with U.S. President George W. Bush, who is also in Beijing for Friday’s opening ceremony of the Olympic Games.

"Everybody agrees -- nobody wants to see a war," he said.