Russian President Dmitry Medvedev has ordered an end to military operations against Georgia, the Kremlin says.
He told officials he had taken the decision to end the operation after restoring security for civilians and peacekeepers in South Ossetia.
However, Russia has been highly critical of Georgia's leadership, and there were no signs of imminent talks.
Before the announcement, there were fresh reports of Russian warplanes bombing the Georgian town of Gori.
Witnesses told the BBC that several people were killed when a bomb hit a hospital in the town, which is 10 miles (15km) from the South Ossetian capital, Tskhinvali.
A reporter for Reuters news agency said several bombs exploded in front of his vehicle, while a photographer for the agency spoke of seeing dead and injured people lying in the streets.
And in Georgia's other breakaway region, Abkhazia, separatist rebels continued an offensive against Georgian troops in the Kodori Gorge region - the only area of Abkhazia still under Georgian military control.
'Safety restored'
News of Mr Medvedev's decision emerged as French President Nicolas Sarkozy arrived in Moscow expecting to press Russia on the need for a ceasefire.
According to a statement, Mr Medvedev told his defence minister and chief of staff that "the goal has been attained".
"I've decided to finish the operation to force the Georgian authorities to peace. The safety of our peacekeeping forces and civilian population has been restored.
"The aggressor has been punished, having sustained considerable losses. Its armed forces have been disorganised," he added.
The BBC's James Rodgers, in Moscow, said there is no sign yet that Russia is willing to engage in talks with the government in Tbilisi.
Russia's Foreign Minister, Sergei Lavrov, has insisted that Georgia must sign a legally binding document on the non-use of force.
And Mr Medvedev warned that Russia would not tolerate any further Georgian military activity in South Ossetia, saying: "Should centres of resistance or other aggressive attempts arise, you must take the decision to destroy them."
The BBC's Gabriel Gatehouse, near Gori, reported seeing sporadic artillery fire around the town right up until shortly before the Russian announcement.
Our correspondent said there was no sign of Russian troops south of Gori, but said there were a number of Georgian military vehicles abandoned or burnt on the road outside the town.
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(BBC)
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