Russian President Vladimir Putin urged Ukrainian President Petro Poroshenko to not heighten an offensive against pro-Moscow rebels, and threatened economic retaliation for signing a trade accord with the European Union, according to The Associated Press.
Moscow has long denied charges by Kiev that it has been sending weapons and fighters to help the separatists in eastern Ukraine, according to the AP. The United States and European Union have backed Kiev by imposing sanctions on Moscow in a standoff that has prompted both Russia and NATO to step up military maneuvers.
"We are convinced that today, (the Ukraine crisis) cannot be solved by further escalation of the military scenario without taking into account vital interests of the southeastern regions of the country and without a peaceful dialogue with its representatives," Putin said, the AP reported.
Putin said the Russian economy could lose about 100 billion roubles, equivalent to $2.8 billion, if European goods reached its markets via Ukraine after Kiev signed the trade deal with the EU in June, according to the AP.
If Ukraine signs the deal, Moscow would retaliate with trade measures if that were to happen, Putin added, the AP reported.
Poroshenko responded by defending a peace plan he issued in June, when the rebels in the southeast Donbass region scorned his invitation to lay down their arms and leave by a safe corridor, according to the AP.
"The prime condition for a stabilization of the situation in Donbass is the establishment of effective control over the Russian-Ukrainian border. It is vital to do everything to stop deliveries of equipment and arms to the fighters," Poroshenko said, the AP reported.
More than 2,000 people have been killed since April in the fighting, but the Ukrainian army has now largely pinned the rebels down in two eastern strongholds, according to the AP.
