At the security checkpoint on the way in to Georgian President Mikheil Saakashvili’s chancellery building, two small posters are displayed.    

“Stop Russia,” says the first. The second is a quotation from British World War Two leader Winston Churchill: “Never, never, never give up.”

Together, they sum up a national mood of grim defiance in Georgia after a short, disastrous war with Russia, followed by the loss of two provinces that have been outside Tbilisi’s control since the early 1990s but have now cemented their split by getting Moscow to recognise them as independent states under its protection.

Sitting in front of a row of Georgian and European Union  flags,  Saakashvili projects remarkable energy for a man under intense strain, three weeks into a national crisis. ”The first couple of days he didn’t sleep, we were all worried about him,” says a staffer in the presidential building. 

For several nights this week he held late-night sessions with Western reporters, sometimes finishing as late as 3 a.m., as he sought to gain the upper hand in the media war that has run parallel to the conflict on the ground with Russia.

“Russia clearly intended this as a blatant challenge to world order. It’s now up to all of us to roll Russian aggression back,” he told Reuters in an interview that started at 20 minutes after midnight.

Saakashvili has lost weight, says a Western observer who knows him well, but his face shows barely a trace of the sleepless nights.  

He seems energised by a loud chorus of Western support for Georgia after Russia’s recognition of breakaway South Ossetia and Abkhazia – a contrast with the start of the conflict, when some Western officials privately suggested his own hot-headedness was at least partly to blame for triggering Russia’s invasion.

Is Saakashvili’s leadership secure? For now, at least, the mood of national solidarity should make him immune to any domestic political challenge, analysts say. 

Longer-term, the prospects are less certain. Saakashvili is pinning his hopes on Georgian entry to NATO, which would commit the alliance to come to its defence if it were attacked. But many analysts believe NATO, after this crisis, is not ready to make that promise and risk being drawn into its own war with Russia.

The opposition has in effect called a moratorium on criticising the leadership. ”But the time will come when the Georgian society will start to ask them questions about what has happened to our country,” said an opposition leader, Tina Khidasheli.

Privately some Georgians blame Saakashvili for leading them into their current debacle, and the public mood is subdued and tired. ”Everyone is depressed, no one feels like working,” says a young man, Alex. A dancer at Tbilisi’s Nabadi folk theatre, Tako Svanidze, says no one is turning up to performances: ”No one has time for singing and dancing…People aren’t in the mood.” 

On Thursday Georgians
flocked to their Orthodox churches to pray for the country on a major religious festival, the Assumption of the Virgin Mary.      

 ”We believe the mother of Christ will save the whole of Georgia,” said Nino Dzigua, a young woman in an orange headscarf. 

Did she think that Western support could rescue the country? 

“Only God,” she replied. 

Tension is mounting around the Black Sea following Russia’s recognition of two Georgian regions, South Ossetia and Abkhazia, as independent states.  

Russia said its navy was monitoring ”the build-up of NATO forces in the Black Sea area” as the U.S. Navy shipped humanitarian supplies to Georgia on Wednesday.

In a move that could further aggravate Russia, Ukrainian President Viktor Yushchenko said he wanted to discuss charging Russia more for the lease of a naval base in the Crimean port of Sevastopol, which is part of Ukraine.   

Ukrainian leaders say they fear they might be next on Russia’s hit list, a concern echoed by French Foreign Minister Bernard Kouchner. He told France’s Europe 1 radio: ”I repeat that it is very dangerous, and there are other objectives that one can suppose are objectives for Russia, in particular the Crimea, Ukraine and Moldova.”

Analysts say the Crimea region, in southern Ukraine, could be used by Russia to destabilise Ukraine. Not only does it host Russia’s Black Sea fleet, but the majority of people living there are ethnic Russians.                                                            

It would not be the first time Crimea has been at the heart of a war. The territory has been conquered many times and has been controlled by people including Goths, Huns, Bulgars and Greeks. 

The Russian Empire lost the Crimean War of 1854-1856 against an alliance of France, Britain, the Kingdom of Sardinia and the Ottoman Empire but the war is regarded by many Russians as a glorious defeat.

Crimea was again the scene of heavy fighting during World War Two, when it was occupied by Nazi Germany and Sevastopol was under siege from October 1941 until it succumbed in July 1942. Its resistance is regarded by many Russians as a heroic struggle against the odds.

Eighteenth-century Empress Catherine the Great built the neo-classical port at Sevastopol to house the Russian Navy after taking decades to conquer the Crimean region. The pride and joy of the Russian military, the region was granted to the Ukrainian Soviet Republic in 1954. After the Soviet Union fell, Moscow was forced to lease the harbour space under a deal that expires in 2017. 

Could this region — a popular holiday destination because of its green mountains, deep-blue sea and sunny climate — really be at the heart of a new war as Ukraine seeks membership of NATO and the European Union?

Ukrainian politicians say Russia’s actions in Georgia are unacceptable and they fear the worst. ”What has happened is a threat to everyone, not just for one country. Any nation could be next, any country. When we allow someone to ignore the fundamental right of territorial integrity, we put into doubt the existence of any country,” Ukrainian President Viktor Yushchenko said on Wednesday.  

Moscow says Ukrainian politicians are trying to antagonise Moscow. Russian Deputy Foreign Minister Grigory Karasin accused Kiev on Wednesday of stirring tensions and hinted that some politicians wanted to trigger a tough response from Moscow to boost their own standing. ”This is a cynical and dangerous game,” he said.  

Political analysts acknowledge tensions are running high but say there is good cause to hope conflict can be avoided. ”There is a reason to be wary in the short-term future, there is a threat in that Ukraine is similar to Georgia in terms of what has happened in recent years,” said one analyst, Oleksander Dergachev. ”But I find it difficult to think that the threat posed is a military one. Russia relies on the fact that it has more of an influence over Ukraine economically.”
       

The people of South Ossetia and Abkhazia were celebrating on Tuesday after Russian President Dmitry Medvedev signed a decree recognising the independence of the two regions. 

Western leaders responded with harsh words. U.S. President George W. Bush said it increased world tensions and Britain called for “the widest possible coalition against Russian aggression in Georgia,” where the two regions lie. 

But what can the West do to punish Russia or discourage it from any similar acts in the future? 

Military action has never been a realistic option since Russia sent tanks and troops to halt Georgia’s assault on South Ossetia. United Nations sanctions are also out of the question because Russia ihas the right of veto on the U.N. Security Council.

Major powers are also reluctant to do anything that might encourage Moscow to withdraw its help with U.N. sanctions against Iran over its nuclear programme and transit support for NATO forces in Afghanistan. 

Retaliation could involve Russian membership of the big international clubs: excluding Russia from the Group of Eight (G8) top industrial democracies or blocking its bid to join the World Trade Organization (WTO). 

But any action will be carried out with the nagging thought at the back of Western leaders’ minds - Moscow is no longer the economic basket-case of Soviet times and, riding a tide of petrodollars from soaring oil prices, western Europe depends on Russian oil and gas.

Russian leaders have signalled they are not troubled by the Western reaction, partly because the Kremlin sees strong public support at home for its actions in Georgia and in the stand-off with the West, and partly because of the wealth it now has from its natural resources.

When NATO suspended activities with Russia, Moscow responded with a shrug of the shoulders, saying it was also freezing activities with the defence alliance. Moscow also plans to halt visits by senior NATO officials and joint military exercises with the alliance.

The European Union could, in theory, send in peacekeepers or break off talks with Russia over a wide-ranging strategic partnership, or even announce economic sanctions such as curbing existing trade arrangements. Moscow has shown no sign of concern over this - such moves would risk Moscow cutting energy supplies to Europe.

“Nothing scares us, including the prospect of a Cold War, but we don’t want it,” Medvedev said on Monday. “In this situation, everything depends on the position of our partners.”            

Does Russia have the upper hand? Perhaps. But despite the talk about a Cold War, there are also reasons to believe it is not about to start and that conflict can be contained.

Moscow’s confidence and strength rests largely on high prices for energy and other natural resources and it is still a far cry from the military force it was in Soviet times. Moscow also no longer controls large swathes of eastern and central Europe and no longer has the huge influence it once enjoyed in other parts of the world. The Kremlin is also likely to be concerned about investment flows into Russia, which ratings agency Fitch says could be affected by the rising tensions. 

Mikhail Kasyanov, a former Russian prime minister turned Kremlin opponent, was quoted by Interfax news agency as saying Moscow’s decision was “one more step towards the self-isolation of the Russian Federation from the international community.”

But Russian Foreign Minister Sergei Lavrov believes isolation is not looming for Russia: ”I don’t believe this should really be a doomsday scenario. I believe common sense should prevail.” 

The temperature at the United Nations Security Council hasn’t been this high in years — and it’s not because the U.N. management raised the thermostat slightly to cut electricity costs. It’s due to the heated exchange of insults and accusations between Russia and the United States, which has reached a fever pitch reminiscent of the Cold War years.

U.S. Ambassador Zalmay Khalilzad accused Russia on Sunday of using the Georgian incursion into Georgia’s breakaway enclave of South Ossetia as an excuse for a massive military assault against its tiny pro-Western neighbor whose ultimate goal is “regime change” in Tbilisi. He also assailed Moscow for waging a “campaign of terror” against the civilian population of Georgia, a former Soviet republic.

Russia’s U.N. Ambassador Vitaly Churkin shot back that regime change is an “American invention” and suggested it was hypocritical of Washington to talk about attacks on civilians in light of what it has done in Iraq, Afghanistan and Serbia. Churkin said Russia is only trying to defend its peacekeepers and protect civilians from Georgian “ethnic cleansing” and “genocide” in South Ossetia, a small pro-Moscow province that threw off Tbilisi’s rule in the 1990s and has been managed by Russian troops since.

There’s a subtext to this dispute and it isn’t just the U.S. and European support for the declaration of independence of Kosovo, a former breakaway region of Serbia that seceded in February. Serbia and its ally Russia were both enraged by what they saw as an unjustified tearing away of a large chunk of Serbian territory in violation of international law. (Of course, the Georgian separatists in South Ossetia and Abkhazia — another Georgian breakaway region — took notice.)

Tensions between Russia and the United States have been simmering for a while.

When the United States announced it was planning to build a missile shield in Poland and the Czech Republic several years ago, then President Vladimir Putin was outraged. He dismissed U.S. statements that the shield was to guard against Iran, not Russia. In February 2007 at a security conference in Munich, Germany, Putin accused the United States of trying to create a “unipolar” world with Washington as its “one single master”. He made clear that Russia would not stand idly by while Washington tried to subjugate the planet. U.S. officials were taken aback at the force of Putin’s speech, which some said sounded like a declaration of a new Cold War.

Russia, richer than ever thanks to its massive oil and gas revenues, has made no attempt to hide its irritation at Washington’s staunch support for Georgia’s NATO aspirations. It views the expansion of NATO towards its borders as an encroachment on its sphere of influence.

Is it possible that when Georgian President Mikheil Saakashvili decided to go into South Ossetia and try to put it back under Tbilisi’s control, he gave Russian leaders a golden opportunity to severely punish Georgia’s pro-Western leadership and show the world that Russia is no longer the weak, economically devastated nation it was in the 1990s?

Perhaps the message is — Russia is back, it’s powerful and it won’t tolerate anyone messing around in its backyard.

Or is there another message here?

Is Kosovo to blame for the fighting in South Ossetia?

When the Serbian province seceded from Belgrade in February, South Ossetia was quick to reassert its own claim to international recognition.

As a spokeswoman for separatist leader Eduard Kokoity told Reuters at the time: “The Kosovo precedent has driven us to more actively seek our rights.”

Those remarks will not have gone unheard in Tblisi and could well have added some urgency to Georgia’s desire to impose its rule over breakaway South Ossetia.

With widespread Western backing, Kosovo was able to achieve a fairly clean break with its former ruler, despite Russian objections.

Now Moscow is backing the separatists and it’s far from clear how things will play out this time.