Moscow handed over 13 Georgian military personnel and two civilians, captured during the recent conflict over South Ossetia, in exchange for five Russians, among them two pilots, said Colonel Igor Konashenkov, an aide to Russia's Ground Forces commander.
The prisoner exchange took place in Igoeti, a town located some 40 km (24 miles) from Tbilisi at 11:00 a.m. Moscow time (07:00 GMT).
The deal was initially scheduled for Monday, however the talks failed when Georgian negotiators walked out after making requests "unrelated" to the exchange, a senior military official said.
However, Georgia's Defense Ministry accused Russia of failing to provide an accurate list of prisoners.
Lt. Col. Andrei Bobrun, an aide to the commander of the North Caucasus Military District, said Russia was to hand over 11 Georgians. The Georgian Defense Ministry later requested the number be increased to 15.
Col. Gen. Anatoly Nogovitsyn, deputy chief of the Russian General Staff, told journalists Monday "We had planned an exchange of 15 Georgian for 12 Russian troops."
Georgian Interior Ministry spokesman Shota Utiashvili denied any such agreement existed.
Georgia launched a major offensive to seize control of South Ossetia on August 8, prompting Russia to send several hundred tanks and thousands of troops into the region.
Russia says at least 1,600 civilians were killed in the Georgian attack on the capital of Tskhinvali. South Ossetia says more than 2,000 people were killed.