Putin Accuses Georgia of Blackmail

Passengers stand with their luggage at the airport in Tbilisi, Georgia, Tuesday, Oct. 3, 2006. Russia suspended all transport and postal links with Georgia on Tuesday until further notice, in a sharp escalation of the dispute between Moscow and its small southern neighbor. (AP Photo/Shakh Aivazov) (Shakh Aivazov - AP)

The daily Kommersant quoted police officials as saying that 40 Georgian restaurants and shops in downtown Moscow would be raided in the next few days.

Families in Georgia worried about their kin in Russia becoming caught up in the political dispute.

"I'm afraid my son will be deported, that the insult from Georgia will reflect on him, because Putin is a vengeful man," said Laura Chanturia, a 59-year-old university teacher who said her son sent money home every month to support her and her grandson.

Georgian officials, however, kept up a nonchalant stance, with Prime Minister Zurab Nogaideli trying to reassure the nation that new sanctions from Russia would not inflict significant economic damage.

"Russia has implemented sanctions before and we were able to stand our ground. We are standing our ground now," he said.

Alexander Chagunava, a 52-year-old electric engineer, said Georgians were taking the dispute in stride.

"There was more panic when they introduced the ban on Georgian wine," he said, referring to the Russian government's prohibition of wine imports last spring for alleged health reasons.

Russia has also stopped granting entry visas to Georgian nationals.

Russia's chilly relations with Georgia have worsened steadily since Saakashvili came to power following the 2003 Rose Revolution, vowing to take the country out of Russia's orbit, rein in the breakaway provinces of Abkhazia and South Ossetia, and join NATO in 2008. Georgia accuses Russia of backing the separatists, which Russia denies.