Sept. 8 (Bloomberg) -- President George W. Bush is suspending U.S. consideration of a proposed agreement with Russia on nuclear cooperation, the State Department announced today.

The action, signaled by Secretary of State Condoleezza Rice two days ago, comes in the wake of the conflict last month between Russia and Georgia, a U.S. ally, over the pro-Russian breakaway Georgian regions of South Ossetia and Abkhazia.

``We make this decision with regret,'' Rice said in a statement read to reporters today in Washington by department spokesman Sean McCormack. ``Unfortunately, given the current environment, the time is not right for this agreement. We will reevaluate the situation at a later date as we follow developments closely.''

U.S. and Russian officials signed the accord in Moscow in May to pave the way for joint efforts on supplying and reprocessing atomic fuel. Rice said today that the nonproliferation goals of creating commercial opportunities with Russia and enhancing cooperation between the countries on nuclear issues remain valid.

Bush will inform Congress that for now ``there is no basis for further consideration'' of the agreement under the Atomic Energy Act, Rice said.

The suspension of the nuclear deal is one of the few concrete U.S. actions taken against Russia in response to the invasion of Georgia. Russia sent military forces into the breakaway regions and into undisputed areas of Georgia, and later recognized declarations of independence by Abkhazian and South Ossetian separatists.

To contact the reporter on this story: Edward DeMarco in Washington at edemarco1@bloomberg.net

Last Updated: September 8, 2008 13:27 EDT