Medvedev has just come out with a statement announcing an end to the military operation “aiming to constrain Georgia to observe peace.” “The aggressor has been punished”, he said.

According to reports on the ground, Tbilisi has been the scene of some panicking last night, but the residents escaped a major offensive from the Russians.

I don’t have any reliable information on this, but Russia’s decision seems to have been a close call, with Russian troops within easy reach of Tbilisi. I guess that Russia figured the political cost of getting rid of Saakashvili had become too high, having probably received credible warnings from the US and European countries.