Georgia handed over four Russian officers it arrested last week on suspicion of spying to the Organization for Security and Cooperation in Europe, but Russia nevertheless halted Monday land, sea, and postal links.
RZD said in a statement, "As of tomorrow [October 3], direct rail links between Moscow and Tbisi will stop."
On the recommendation of the RZD board of directors, the company will cancel an order for spare parts for trains from Georgia worth $100 million rubles ($3.75 mln), the statement said.
"RZD will use Russian companies to manufacture these parts [which had not previously been made in Russia], their production will be organized very quickly," RZD said.
Despite agreeing to hand over the Russian officers, Georgian President Mikheil Saakashvili said there was a strong case against them, and that Russia was trying to destabilize his country.
Relations between Georgia and Russia soured dramatically after the pro-Western government and President Saakashvili came to power in the former Soviet republic in 2004 and began pursuing accession to the European Union and NATO.
