BRUSSELS. Feb 11 (Interfax) - The EU opts for dialogue with Russia, even though the two still have disagreements regarding the August 2008 conflict in the Caucasus, said Javier Solana, the EU High Representative for the Common Foreign and Security Policy.

"EU leaders in September last year reacted to the conflict in Georgia by postponing the negotiations on our new Agreement. Following the withdrawal by Russia from the areas adjacent to South Ossetia and Abkhazia, these negotiations were resumed. We opted for dialogue and negotiation rather than sanctions as the best means of passing our messages and defending our interests," Solana said in an interview with Interfax.

At the same time, "we still disagree on important aspects of the Georgia conflict, and the atmosphere in some respects has changed," Solana said. "Nevertheless, we continue opting for dialogue and engagement, including by maintaining a significant mission on the ground in Georgia," he said.

The EU's first priority is "to do everything we can to stabilize the situation on the ground," Solana said.

"We are present there and follow developments closely. We also continue working with Russia and all sides in Geneva to establish mechanisms for greater transparency and predictability, so we can avoid tension and incidents," he said.

"On the implementation of the Sarkozy-Medvedev plan, Russia has taken significant steps towards full implementation, notably with the withdrawal of its troops from territory outside of the Administrative Boundary Line with Abkhazia and South Ossetia," Solana said.

"We still have some issues where we disagree, and the situation on the ground is far from settled, so we cannot turn our attention away from this situation," he said.

The EU favors an independent international inquiry into the conflict in Georgia, Solana said. "We believe that it is essential to look into the conflict in order to learn lessons for the future," he said.

"As the relations between Russia and Georgia remain frozen, and the situation on the ground is still tense and unsettled, we of course need to find ways to stabilize the situation and rebuild confidence," Solana said.

"This will take time and effort on all sides, but we are ready to continue our engagement in this direction," he said.

Solana suggested that the Geneva process "should be consolidated and serve as the central political forum on the conflict on a more permanent basis."

"Another important step is to make sure that all international actors that are mentioned in the (Medvedev-Sarkozy) Plan can continue their work. The UN and OSCE missions have essential roles to play on the ground, as has the EU mission, EUMM (the EU Monitoring Mission in Georgia). Blocking the continuation of these missions before the situation is stable is hardly responsible," he said.