Georgia diplomat says Russia crisis may spark war

STRASBOURG, France, Oct 5 (Reuters) The crisis between Russia and Georgia could lead to war, a Georgian diplomat warned today, calling on foreign powers to put pressure on Moscow to cool tensions.

''We have a cold war in the Caucasus and we fear that this cold war will transform into a hot war which will threaten peace and security in the region,'' Zurab Tchiaberashvili, the Georgian ambassador to the Council of Europe, said in a statement.

At a later news conference, the ambassador said: ''We are ready to fight for our freedom and democracy. The only thing that we are not ready to do is change the direction that our country has taken.'' Russia has severed transport links with Georgia, stopped issuing visas to Georgians and raided Georgian-owned businesses in Moscow in retaliation against the brief arrest last week of four Russian army officers accused by Tbilisi of spying.

''We expect the international community to call on Russia to stop any new escalation or action incompatible with that of a member state of the Council of Europe,'' Tchiaberashvili's statement said.

One of Georgia's main energy groups has told Reuters Russia's giant gas monopoly Gazprom had indicated unofficially it wanted to raise prices sharply, and maybe double them.

Tchiaberashvili said Georgia was frightened Russia would use energy supplies as a form of ''blackmail'' during the winter.

''However, we are prepared. Georgia is making an effort to diversify its suppliers. We have held talks with Azerbaijan, Turkey and Iran,'' he told reporters.

The Council of Europe groups together 46 countries and is tasked with defending human rights and parliamentary democracy. It is based in the eastern French city of Strasbourg.

REUTERS PB PM1712