ANCHOR: Russian president Dmitry Medvedev is defying pressure from the West. On Tuesday he announced that Moscow has decided to recognize two rebel regions of Georgia as independent states. Here's more on the story. STORY: [Dmitry Medvedev, Russian President]: "I have signed decrees on the recognition by the Russian Federation of the independence of South Ossetia and the independence of Abkhazia." The decision sets Russia on a collision course with the West, which has strongly urged Moscow not to recognize the two regions. Appearing on national television, Georgia's president has condemned the move, declaring it illegal. [Mikheil Saakashvili, Georgian President]: "Russia has made a unilateral decision today about two Georgian regions. It is the first attempt in Europe after Nazi Germany and Stalin's Soviet Union when a big country tried to put another country on its knees and then tried to annex its territory and to change its internationally recognized borders." But in the capital, residents are celebrating Russia's recognition of South Ossetia. They fired guns in the air while others drank from celebration horns. A slew of world leaders are condemning the move. [Condoleezza Rice, U.S. Secretary of State]: "As to the matter of the Russian apparent or intention to recognize two parts of two regions that have been in conflict but are clearly within the internationally-recognized border of Georgia by multiple Security Council resolutions, I think it is regrettable." [Angela Merkel, German Chancellor]: "This contradicts principles of territorial integrity as a fundamental right." Georgia and Russia fought a brief war over the breakaway region of South Ossetia earlier this month. That was sparked after Georgia sent in troops to try to retake the province by force. Russia responded with a massive counter-attack by land, sea and air.