President George W. Bush today froze a lucrative civilian nuclear pact with Russia in a move designed to be viewed as a penalty imposed on Moscow after its war with Georgia.
However, the move may serve another purpose - to preserve the agreement until the next administration takes office.
"The president intends to notify Congress that he has today rescinded his prior determination regarding the US-Russia agreement for peaceful nuclear co-operation, the so-called 1-2-3 Agreement," Secretary of State Condoleezza Rice said in a statement read by spokesman Sean McCormack.
While Mr Bush's decision to withdraw the agreement from congressional review was seen as punitive, it was also meant to preserve the deal, a senior US official said.
That official said the administration wanted to ensure the accord did not go to a vote in Congress, where it could have been rejected following Russia's military action in Georgia. If rejected, it would be difficult for a new presidential administration to pursue the agreement in the future.
"It (the nuclear accord) was likely to be killed simply as a protest in the Senate and so therefore what we are doing is rescinding the certificate that he (President Bush) had to give due to the situation in Georgia. Thus he is rendering this thing not legislatively viable," said the senior US official.
"It is something that we can reverse at any time either by sending a new certificate or lifting this action," he added. "What it does is freezes the status of it."
Mr Bush or a future president could resubmit it for consideration by Congress, which would have 90 legislative days to block it.
Ms Rice also made clear the decision could be reversed.
"We make this decision with regret. 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," her statement said.
In Moscow, a nuclear official also said it was the only way to save the deal and the White House had explained this.
"We have recently received a letter from the White House where they mentioned that this was the only way to save this agreement for the new administration," the official said.
"Otherwise the agreement would be definitely blocked in the current political conditions which would have meant practically starting the entire work from the beginning again," the source said.
The deal was aimed at lifting Cold War limits on trade and opening the US civilian nuclear market and Russia's uranium fields to companies from both countries. Lawmakers in Congress had already raised concerns about it before the Georgia war.
The collapse of the deal is the first tangible penalty Washington has imposed on Russia after its war with Georgia over the two breakaway regions of South Ossetia and Abkhazia, which are closely allied with Moscow.
Washington has been considering a range of penalties to impose on Russia, including sanctions, but US business interests have warned the White House not to go too far with punishment for fear of damaging long-term ties.