"Russia's decision violates many UN Security Council resolutions...and is inconsistent with the fundamental OSCE principles on which stability in Europe is based," the council said in a statement.
Both Russia and Georgia, as well as all NATO allies, are members of the Organization for Security and Cooperation in Europe(OSCE).
"Georgia's recovery, security and stability are important to the alliance," said the statement.
Russia's actions have impaired Moscow's commitment to maintaining peace and security in the Caucasus region, the council commented.
Russia moved on Tuesday to recognize the independence of South Ossetia and Abkhazia, which broke from central Georgian rule during wars in the early 1990s following the collapse of the former Soviet Union.
In response to NATO's pro-Georgia position, Russia on Tuesday declared a freeze on military cooperation with the alliance.
NATO Secretary General Jaap de Hoop Scheffer's scheduled visit to Russia has also been postponed.
Georgia launched an attack on South Ossetia on Aug. 7 in an attempt to retake control of the region, but met strong military strike the following day from Russian reinforcement troops.
The West accused Russia of bullying its small neighbor but Moscow insisted that its military operation was intended to protect civilians and enforce peace in the region.
South Ossetian residents have traditional links with Russia's North Ossetia and many South Ossetians hold Russian passports.
