Got to the Resolution Centre and open a Mutual Cancellation "We have agreed not to complete this transaction" or something like that.
Both of you will be released as soon as the buyer agrees to the cancellation. If he ignores it, it will end in a few days.
The only possible problem would be if the buyer refuses the Cancellation. Which sounds unlikely. (He seems sane and friendly, right?)
Both of you can leave feedback.
You can Block bids from countries you don't want to ship to through your Seller Preferences pages.
