(PARIS) - Russian relations with the European Union will be seriously damaged if Moscow fails to fully implement the peace deal it signed with Georgia, French President Nicolas Sarkozy warned Sunday.

He told Russian President Dmitry Medvedev of the "serious consequences that a failure to quickly and fully implement the deal would have on relations between Russia and the European Union," Sarkozy's office said in a statement.

Medvedev for his part told Sarkozy in the same phone conversation that Russian regular forces would start their pullout from Georgia on Monday, the French presidency and the Kremlin said.

Medvedev on Saturday signed a peace deal -- brokered by Sarkozy, whose country holds the EU rotating presidency -- a day after Georgian President Mikheil Saakashvili, and a week after Russian forces invaded Georgia in support of separatists in the South Ossetia and Abkhazia regions.

Sarkozy emphasised during his long conversation with Medvedev that the deal required the "withdrawal without delay of all Russian military forces which have entered Georgia since August 7," the French presidency statement said.

The two presidents agreed on "the deployment as quickly as possible of international observers from the OSCE (Organisation for Security and Cooperation in Europe)."

They also agreed to hold a daily phone conversation on the implementation of the ceasefire, the statement said.

Britain's Foreign Secretary David Miliband said Wednesday that the EU should reassess its relations with Russia after its "aggressive" actions in Georgia and decide whether "to proceed with the partnership and cooperation agreement."

The EU -- which is dependent on Russia for much of its energy -- and Moscow held their first talks in July on a sweeping new "strategic partnership" aimed at redefining their ties.

The partnership is meant to replace an existing one from 1997, taking into account new political, economic and energy realities between a bigger EU and a more powerful, assertive Russia.

French Foreign Minister Bernard Kouchner said Wednesday that he and his European Union counterparts would address the state of relations with Russia in the wake of the Georgia crisis during their next meeting in September.

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