"We are indeed bringing economic pressure to bear [on Georgia] - I acknowledge as much - but no sanctions are in place, nor a blockade," Sergei Ivanov said.
He also dismissed reports Russia is contemplating military action against Georgia.
"Military threats are out of the question," he said. "It takes a madman's imagination to picture Russia going to war with Georgia."
Speaking of Georgia's bid to join NATO - a prospect Russia is obviously not happy about - Ivanov said: "Georgia is free to make any decisions about entering any bloc or organization - NATO, the EU, a beer lovers' alliance, whatever."
The minister said, however, that Moscow will not have Georgia take any further anti-Russian steps. He was apparently referring to the September 27 arrest of four Russian army officers in Georgia, which triggered a series of retaliatory measures against the ex-Soviet nation, including the suspension of transportation and postal links.