U.S. Secretary of State Condoleezza Rice stood by an emotional President Mikhail Saakashvili Friday as he declared that Georgia has signed a ceasefire agreement to stop the deadly conflict that he blamed on Russian aggression and international apathy.

Rice said that she had been assured that Russian President Dmitry Medvedov had signed an identical document.

Rice arrived in Georgia Friday with a truce agreement brokered by French President Nicholas Sarkozy, designed to halt the conflict between the two nations.

"With the signature of the Georgian president on this ceasefire accord all Russian troops and any irregular or paramilitary forces that entered with them, must leave immediately," Rice said, speaking in Tbilisi.

"This is the understanding I had with President Sarkozy yesterday, that when President Saakashvili signed this ceasefire accord there would be an immediate withdrawal of Russian forces from Georgian territory."

As of Friday evening, Russian troops continued to control much of Georgia.

But the boisterous pro-American Saakashvili remained defiant Friday, even as Russia controlled about 50 per cent of his country, according to some reports.

Georgia will "never, ever surrender" in the showdown with Russia, he said.

Saakashvili blamed the West for inviting Russian aggression after NATO denied Georgia's request to join the organization in April.

He said that Russia took NATO's snub as an opportunity to mobilize for an invasion of Georgia.

"We told the world this is about starting an invasion," he said. "We screamed to the world: Stop it."

The region has become a virtual powder keg after Georgia sent troops into two breakaway states loyal to Russia last week.

Moscow then sent its own forces into South Ossetia and Abkhazia and drove out the Georgian fighters. The Russians then pressed into Georgia itself, setting up in the key city of Gori.

Saakashvili has accused the Russians of using cluster bombs and missiles and carrying out lootings and ethnic cleansing in the past week.

"It's an unprovoked, brutal invasion and attack to kill Georgian democracy and end the independence of Georgia, and we together will deter it," he said.

He also said Georgia will never accept Russian occupation of its territory. Saakashvili described Georgia as a country that has endured hardships and has always survived.

"Russia has lots of tanks. But Russia -- no tank is enough to crush the will of the free people. Freedom's light will never die here," Saakashvili said.

Russia's foreign minister said this week it is unlikely the two separatist provinces will ever be part of Georgian territory, again.

UN appeal

The president of the UN's highest court made an urgent appeal for restraint in the region as the International Court of Justice waits to hear arguments from Georgia and Russia in September.

Judge Rosalyn Higgins sent a message to both countries asking them to act in a way that assists the court's decision.

Georgia filed suit Wednesday with the body informally known as the World Court -- alleging that Russia has committed acts of ethnic cleansing in the breakaway province of South Ossetia since the early 1990s.

"Having considered the gravity of the situation," Higgins urgently called on Georgia and Russia "to act in such a way as will enable any order the court may take ... to have its appropriate effects," in a statement.

Ceasefire agreement

Under the terms of the ceasefire brokered by France and backed by the U.S., both Georgia and Russia must make concessions.

The agreement requires Russia's troops to leave immediately. But in return Georgia must allow Russian peacekeepers who were in South Ossetia before the violence broke out, to remain in the separatist region and temporarily patrol outside of the area.

While Russian troops acted on the premise of protecting loyalists in the breakaway states, many believe the former Soviet state's bid for NATO membership is at the heart of the dispute.

"The United States does carry some weight in this part of the world because Georgia wants very much to become a member of NATO and according to diplomats we spoke to here, that seems to be the crux of the problem," CTV's Janis Mackey Frayer told CTV's Canada AM, reporting from Tbilisi.

"Georgia has its NATO aspirations and these are aspirations Russia is going to do its best to try to quell."

'Bullying' unacceptable

Earlier in the day, U.S. President George Bush chastised Russia for its actions over the past week, saying the Cold War is over and the recent "bullying" is unacceptable.

"With its actions in recent days Russia has damaged its credibility and its relations with the nations of the free world," Bush said.

"Bullying and intimidation are not acceptable ways to conduct foreign policy in the 21st century."

Bush said Russia sees Georgia -- a former Soviet state that is now a democratic nation with hopes of joining NATO -- as a threat. He said the opposite is true -- that "free and prosperous" societies on Russia's borders will serve as sources of stability and economic strength.

"The Cold War is over," Bush said.

"The days of satellite states and spheres of influence are behind us. A contentious relationship with Russia is not in America's interest and a contentious relationship with America is not in Russia's."

Gori occupation

The Russian position in Gori has virtually cut the country in half. The city is located on the country's main east-west highway less than 100 kilometres from the capital Tbilisi.

Russian forces are also in several other cities deeper in the country and militia groups are said to be roaming the Georgian countryside, causing many Georgians to flee their homes.

The United Nations is estimating about 100,000 civilians have been displaced by the conflict.