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The US has cancelled a joint naval exercise with Russia after Secretary of State Condoleezza Rice warned that Moscow's attacks on Georgia jeopardised its integration into international institutions.

The cancellation of the military exercise, set for next week, is the first concrete disapproval from the US over Russia's military operations in Georgia and South Ossetia.

"I can assure you that Russia's international reputation and what role Russia can play in the international community is very much at stake here," said Ms Rice.

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The exercises were to involve warships from Russia, France, Britain and the US in the Sea of Japan as well as an onshore component in the Russian port of Vladivostok. It was to have been the latest in a series of joint war games that began in 1988.

"In the wake of this conflict, there is no way that we can proceed with this joint exercise at this time," a senior US defense official told the AFP news agency.

The announcement came as the US government considered a range of responses to Russia's "disproportionate" attacks on Georgia after demanding Moscow make good on its promise to halt the military offensive.

"The Russians need to stop their military operations, as they have apparently said that they will, but those military operations really do, now, need to stop because calm needs to be restored," Ms Rice told the ABC in America. However she did not make clear exactly what reprisals the US would take if Russia did not keep its word.

Other officials raised questions about Russia's ongoing efforts to join the World Trade Organisation and the Organisation for Economic Cooperation and Development as well as its membership in the Group of Eight most industrialised nations.

"Russia has much more to lose than the Soviet Union had to lose in 1968," an official told AFP. "Russia has one foot in integration into the international economy and community of states and one foot that is not quite in."

The US response came hours after President Medvedev of Russia ordered his troops in South Ossetia to hold their fire and fixed a six-point peace plan with President Sarkozy of France.

The deal, confirmed by Georgia’s President Saakashvili last night after five days of fighting, did not address the future of South Ossetia and Abkhazia, the two breakway provinces that want closer links with Russia.

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