Russia signals troop withdrawal in Georgia: Merkel

BRUSSELS (Reuters) - Russia has signaled it will withdraw its troops to pre-conflict positions in neighboring Georgia, as demanded by the European Union, German Chancellor Angela Merkel said on Monday.

Merkel was speaking to reporters after EU leaders agreed at a summit to postpone talks on a new EU-Russia partnership, due later this month, until Moscow withdraws its troops to pre-conflict positions in Georgia.

She said that Russian President Dmitry Medvedev told his French counterpart, Nicolas Sarkozy, by telephone that Russia would withdraw its troops as agreed under a six-point peace plan brokered by the French leader last month.

"We were informed that the (EU) presidency's phone call yesterday was very constructive. We expect that the withdrawal of troops from Poti and Senaki can be done," she said, naming two locations in Georgia still controlled by Russian forces.

France holds the rotating six-month EU presidency until the end of 2008.

"Russia pledged to fulfil this point," she said, referring to a point in the agreement providing for a troop withdrawal.

(Reporting by Ilona Wissenbach; writing by Francois Murphy and Sami Aboudi)