Pity Georgia's bedraggled first infantry brigade. And its second. And its hapless navy.

For the past few evenings in the foothills of the Southern Caucasus on the outskirts of Joseph Stalin's hometown of Gori, reconnaissance units of Russia's 58th army have been raking through the spoils of war at what was the Georgian army's pride and joy, a shiny new military base inaugurated only last January for the first infantry, the army engineers, and an artillery brigade.

A couple of hours to the west, in the town of Senaki, it's the same picture. A flagship military base, home to the second infantry brigade, is in Russian hands. And down on the Black Sea coast, the radars and installations for Georgia's sole naval base at Poti have been scrupulously pinpointed by the Russians and destroyed.

Gori and Senaki are not ramshackle relics of the old Red Army of the type that litter the landscape of eastern Europe. "These bases have only recently been upgraded to Nato standard," said Matthew Clements, Eurasia analyst at Jane's Information Group. "They have been operationally targeted to seriously degrade the Georgian military."

"There is a presence of our armed forces near Gori and Senaki. We make no secret of it," said the general staff in Moscow. "They are there to defuse an enormous arsenal of weapons and military hardware which have been discovered in the vicinity of Gori and Senaki without any guard whatsoever."

The "enormous arsenals" are American-made or American-supplied. American money, know-how, planning, and equipment built these bases as part of Washington's drive to bring Nato membership to a small country that is Russia's underbelly.

The American "train and equip" mission for the Georgian military is six years old. It has been destroyed in as many days. And with it, Georgia's Nato ambitions. "There are a few countries that will say 'told you so'" about the need to get Georgia into Nato," said Andrew Wilson, Russia expert at the European Council on Foreign Relations. "But many more will want to walk away from the problem. And for the next few years, Georgia will be far too busy trying to pick itself up."

If Georgia and Nato are the principal casualties of this week's ruthless display of brute power by Vladimir Putin, the consequences are bigger still, the fallout immense, if uncertain. The regional and the global balance of power looks to have tilted, against the west and in favour of the rising or resurgent players of the east.

In a seminal speech in Munich last year, Putin confidently warned the west that he would not tolerate the age of American hyperpower. Seven years in office at the time and at the height of his powers, he delivered his most anti-western tirade

Pernicious

To an audience that included John McCain, the White House contender, and Robert Gates, the US defence secretary and ex-Kremlinologist, he served notice: "What is a unipolar world? It refers to one type of situation, one centre of authority, one centre of force, one centre of decision-making. It is world in which there is one master, one sovereign. This is pernicious ... unacceptable ... impossible."

This week, he turned those words into action, demonstrating the limits of US power with his rout of Georgia. His forces roamed at will along the roads of the Southern Caucasus, beyond Russia's borders for the first time since the disastrous Soviet occupation of Afghanistan in the 1980s.

As the Russian officers sat on the American stockpiles of machine guns, ammunition, and equipment in Gori, they were savouring a highly unusual scenario. Not since the Afghan war had the Russians seized vast caches of US weaponry. "People are sick to the stomach in Washington," said a former Pentagon official. And the Russians are giddy with success.

Celebrating the biggest victory in eight years of what might be termed Putinism, the dogged pursuit by whatever means to avenge a long period of Russian humiliation and to deploy his limited range of levers - oil, gas, or brute force - to make the world listen to Moscow, the Russian prime minister has redrawn the geopolitical map.

In less than a week, Putin has invaded another country, effectively partitioned Georgia in a lightning campaign, weakened his arch-enemy, President Mikheil Saakashvili, divided the west, and presented a fait accompli. The impact - locally, regionally, and globally - is huge.

"The war in Georgia has put the European order in question," said Alexander Rahr, one of Germany's leading Russia experts and a Putin biographer. "The times are past when you can punish Russia."

That seems to be the view among leading European policymakers who have been scrambling all week to arrange and shore up a fragile ceasefire, risking charges of appeasing the Kremlin.

"Don't ask us who's good and who's bad here," said Bernard Kouchner, the French foreign minister, after shuttling between Tbilisi and Moscow to try to halt the violence. "We shouldn't make any moral judgments on this war. Stopping the war, that's what we're interested in."

His boss, President Nicolas Sarkozy, went to the Kremlin to negotiate a ceasefire and parade as a peacemaker. Critics said he acted as Moscow's messenger, noting Putin's terms then taking them to Tbilisi to persuade

Saakashvili to capitulate. Germany also refused to take sides while Italy warned against building an "anti-Moscow coalition".

That contrasted with Gordon Brown's and David Milliband's talk of Russian "aggression" and Condoleezza Rice's arrival in Tbilisi yesterday to rally "the free world behind a free Georgia".

The effects of Putin's coup are first felt locally and around Russia's rim. "My view is that the Russians, and I would say principally prime minister Putin, is interested in reasserting Russia's, not only Russia's great power or superpower status, but in reasserting Russia's traditional spheres of influence," said Gates. "My guess is that everyone is going to be looking at Russia through a different set of lenses as we look ahead."

In Kiev certainly. Ukraine's pro-western prime minister, Viktor Yushchenko, Saaksahvili's fellow colour-revolutionary, is chastened and wary. His firebrand anti-Russian prime minister, Yuliya Tymoshenko, has gone uncharacteristically quiet.

Invasion

"An invasion of Ukraine by 'peacekeeping tanks' is just a question of time," wrote Aleksandr Sushko, director of Kiev's Institute of Euro-Atlantic Cooperation. "Weimar Russia is completing its transformation into something else. If Russia wins this war, a new order will take shape in Europe which will have no place for Ukraine as a sovereign state."

All around Russia's rim, the former Soviet "captive states" are trembling. Even Belarus, the slavishly loyal "last dictatorship in Europe", went strangely silent, taking days before the regime offered Moscow its support. "Everybody's nervous," said Wilson.

The EU states of the Baltic and Poland are drumming up support for Georgia, with the Polish president Lech Kaczynski declaring that Russia has revealed "its true face". That divides the EU since the French and the Germans refuse to take sides and are scornful of east European "hysteria" towards Russia. Rahr in Berlin says the German and French governments are striving to keep the Poles and the Baltic states well away from any EU-led peace negotiations. It was the Germans and the French who, in April, blunted George Bush's drive to get Georgia into Nato. They will also resist potential US moves to kick Russia out of the G8 or other international bodies.

There are many who argue that Putin's gamble will backfire, that he has bitten off more than he can chew, that Russia remains weak, a "Saudi Arabia with trees" in the words of Robert Hunter, the former US ambassador to Nato.

Compared to the other rising powers of China, India or even Brazil - the companions referred to as the BRIC - Russia does indeed appear weak. Its economy struggles to develop goods or services, depends on raw material exports and on European consumption and the price of oil for its current wealth.

Resources

But Putin's talent is for playing a weak hand well, maximising and concentrating his limited resources, and creating facts on the ground while the west dithers.

"There is a lack of a clear and unified European policy towards Russia," said Clements. In the crucial contest over energy "the Russian strategy of keeping control of exports and supply is outpacing any European response".

Putin may now calculate he can call off the dogs of war, having achieved his aims and able to pocket his gains very cheaply. The Georgia campaign becomes the triumphant climax of Putinism.

"In politics, it is very important to know one's measure," wrote Aleksey Arbatov, director of Moscow's International Security Centre. "If Russia continues to inflict strikes on Georgian territory, on facilities, on population centres, we may lose the moral supremacy we have today."

But Wilson and many in eastern Europe worry that rather than being the climax of Putinism, the Russians in Georgia signal the start of something else. "This may not be a culmination, but only step one," said Wilson. "If you don't stop this kind of behaviour, it escalates."