The talks were due to begin on 16 September, under the leadership of the European Commission on the EU's behalf, and focus on the replacement of a 1997 Partnership and Cooperation Agreement (PCA) which governs trade and wider economic relations between Europe and Moscow.
"Until troops have withdrawn to the positions held prior to 7 August, meetings on the negotiation of the Partnership Agreement will be postponed," EU leaders said in the summit conclusions.
The EU was anxious to present a united front at the emergency summit convened by French President and current EU chair Nicolas Sarkozy to review the situation in Georgia and relations with Moscow.
Speaking after the summit on Monday (1 September), European Commission President José Manuel Barroso said: "It is clear that in the light of events, we cannot continue as if nothing had happened."
In their summit conclusions, EU leaders said they "strongly condemn Russia's unilateral decision to recognise the independence of Abkhazia and South Ossetia," describing the decision as "unacceptable".
French President Nicolas Sarkozy adopted a firm tone: "We must say that Russian behaviour over the last few weeks - its disproportionate response and its recognition of the two entities that declared independence - has caused considerable concern in Europe and beyond."
In a further condemnation, Sarkozy said the EU could take further steps if Russia did not fulfil its obligations under the six-point peace plan negotiated by the French EU Presidency in August.
"We will get together and make another decision" if this happens, Sarkozy stressed, explaining that the bloc favoured a "step-by-step" approach in its response to the crisis.
The heads of state did not, however, fully suspend the talks with Russia, as re-launching them at a later stage would have required another unanimous decision, a consensus which would have been difficult to reach in view of the hostility of some EU member countries towards Russia. Unless one of the sides withdraws from the pact, it is renewed automatically every year.
They also shied away from imposing immediate sanctions or tougher measures against Moscow. Instead, they agreed to send "a fact-finding mission" to help gather information and "define the modalities for an increased European Union commitment on the ground under the European Security and Defence Policy".




