UPDATE 2-OSCE halts Moscow-blocked talks on Georgia mission

* OSCE-Georgia talks on ice, plan opposed by Russia stays

* Moscow insists on separate OSCE mission for South Ossetia

* June 30 deadline for OSCE exit from all of Georgia looms

* U.S. urges Russia, Georgia restraint (Adds Biden speaks to Saakashvili, paragraphs 12-13)

By Mark Heinrich

VIENNA, May 14 (Reuters) - Europe's top security and human rights watchdog Thursday halted talks on keeping peace monitors in Georgia after Russia blocked a deployment plan, but it stood by the proposal and nudged Moscow to reconsider.

Russia sent in troops to crush Georgia's move to retake its separatist South Ossetia region in a war last August, then rejected an extension of the Organization for Security and Cooperation in Europe's 16-year-old monitoring mission in the former Soviet republic when it expired on Dec. 31. The military and civilian monitors face a June 30 deadline to pull out.

Wednesday, Russia barred a revised monitoring proposal from OSCE chairman Greece by insisting on language driving home its view of South Ossetia as an "independent" state -- rejected by Georgia and not endorsed elsewhere in the 56-nation group.

U.S. and European Union officials regard an OSCE presence in Georgia as crucial to preventing further fighting between separatist and Georgian forces and mistreatment of civilians.