The European Union cannot have a "perfectly normal" relationship with Russia while it continues to ignore the six-point peace plan that it has signed up to, and keeps recognizing the Georgian breakaway regions of South Ossetia and Abkhazia.

And in an effort to show that Europe is ready to play "an active role" in managing the crisis, diplomats say EU leaders meeting on Monday will work on a three-pronged approach: political and economic support to Georgia; help in finding a political settlement of the conflict in the South Caucasus; retaliatory measures against Russia.

Possible paybacks may include the freezing of negotiations on a new cooperation agreement between the EU and Russia and on the introduction of visa-free travel for Russians visiting the 27-member bloc - but not economic sanctions, as some had asked for.

"Russia's decision to recognize the independence of Georgia's two regions is unacceptable. Everybody agrees that it is against international law," a source at the French presidency of the EU said Friday.

However, the EU-Russia relationship is "mutually beneficial". And despite strong irritation within the EU, the bloc does not intend to "break off dialogue" with Russia, the source said.

At their emergency summit in Brussels, EU heads of state and government will issue a strongly-worded statement denouncing Russia's failure to implement the six-point peace plan brokered by French President Nicolas Sarkozy.

The EU is particularly concerned by Russia's refusal to withdraw its troops to the lines they occupied before the two-weeks conflict, and by Moscow's decision to recognize the independence of Georgia's two enclaves.

As diplomats in Brussels point out, such a recognition is "hardly in compliance" with the sixth point of the peace plan, which calls for international efforts to defuse the South Ossetian and Abkhazian powder kegs.

In terms of practical aid to Georgia, EU leaders will agree that the most pressing need is to deliver humanitarian aid to the worst affected areas, not all of which are open to aid workers.

The European Commission has already provided 6 million euros (8.8 million dollars) in extra aid, on top of contributions being provided by individual member states.

Leaders will also offer to help reconstruct Georgia and to convene a donors conference at a later stage.

Moreover, they will indicate their willingness to strengthen ties with Georgia, for instance through a free-trade agreement or by making it simpler for Georgian nationals to enter into the EU.

At the moment, it is easier for Russian passport holders to obtain an EU travel visa than it is for Georgians.

"This creates an unlevel playing field that is difficult to justify," diplomats say.

The summit will also discuss how the EU can play a more active role in helping to solve the conflict. One issue leaders are expected to agree on is on the need to send a fact-finding mission to Georgia as soon as possible.

Such a mission would "tell us what is happening on the ground" and would pave the way for the deployment of a larger civilian mission at a later stage, officials in Brussels say.

The discussions are likely to heat up when leaders are due to look at how they should deal with Russia's renewed assertiveness in Eastern Europe.

Officials in both Brussels and Paris say that given the EU's dependancy on Russian oil and gas, leaders are unlikely to agree on economic sanctions, as some member states from Eastern Europe had wanted.

Nor is it certain whether they will agree to freeze negotiations on a new Partnership and Cooperation Agreement (PCA) with Russia. The next round of talks has been scheduled for September 15.

Diplomats say that while the EU is willing to develop a relationship of mutual understanding and cooperation with Russia, it is not at all clear whether Moscow wants the same thing.

"The ball is in Russia's court now," French presidency sources say.

Diplomats also note that Russia's intervention in Georgia has made it painfully clear to EU leaders that they must reduce their countries' dependency on Russian energy supplies, and that they should strengthen their ties with Ukraine, another country that hosts sizeable Russian minorities.