Moscow, Aug 10: Georgia has reportedly withdrawn its forces from the separatist region of South Ossetia to positions at or south of those held when conflict started earlier this week.

According to an Interior Ministry spokesman, Russian troops had not entered Georgia from South Ossetia, but fighting was continuing, as reported by BBC.

As many as 2,000 people may have been killed and 30,000 made homeless as the chaotic conflict between Georgian and Russian forces in the pro-Moscow enclave of South Ossetia entered its second bloody day on Saturday.

Beijing - China on Saturday called for a ceasefire in Georgia's South Ossetia region and expressed "serious concern" over the escalating conflict there.

"China is seriously concerned about the worsening situation and armed conflict in South Ossetia," Foreign Ministry spokesman Qin Gang said in a statement posted on the ministry's website.

"We call on the relevant parties to keep restraint and cease fire immediately," Qin said.

Moscow/Tbilisi, Georgia - The war between Russian and Georgia expanded on Saturday morning, with fighting spilling outside the Caucasus province of Ossetia, and both sides moving reinforcements to the region.

The fiercest fighting was in the South Ossetian city of Tskhinvali, where street fighting and artillery exchanges continued sporadically throughout the night.

Intense howitzer and tank fire in the vicinity of the town was audible by mid-morning on Saturday.

Georgian television showed images of hundreds of rockets and heavy artillery shells crashing into Tskhinvali. Shelling reduced entire city blocks to rubble, according to eyewitnesses.

Moscow/Tbilisi, Georgia - Russian aircraft carried out airstrikes overnight Friday against targets near Tbilisi, according to reports early Saturday from Georgia.

The conflict over Georgia's breakaway South Ossetia region raged on as the Georgian Air Force base at Vaziani was bombed, according to the Russian news agency Itar-Tass, citing the Georgian Interior Ministry.

There were no initial details about casualties or damage at the air base, about 20 kilometres south-east of the capital.

Attacks by air were also reported at a military base in Senaki in western Georgia and in Poti, a port on the Black Sea.

Strasbourg, France - All sides in the conflict raging in Georgia should cease firing and open peace talks before it is too late, the head of the Council of Europe urged Friday.

"The human toll of the escalation of the conflict in Georgia continues to rise and the country is now on the edge of a full-scale war which would have devastating consequences for the people in the region," council Secretary General Terry Davis said in a statement.

"The first priority is an immediate and unconditional ceasefire. This should be followed by direct talks in order to find a peaceful and permanent solution," he said.

New Delhi, Aug. 8 : The Russian Federation on Friday accused Georgia of backtracking on an agreement that was aimed at restoring peace in South Ossetia.

A Russian Foreign Ministry statement claimed that Georgian military units undertook “a treacherous, massive attack on Tskhinvali” hours after the leaderships of the two countries had arrived at an understanding to end the “conflict in South Ossetia”.

The statement further went on to question the credibility of the Georgian leadership, which it said was a “responsible participant of the negotiation process and of the international intercourse corresponding to the principles of the United Nations Charter”.