Putin: Force 'last resort' in Ukraine

Kerry visits Kiev, brings economic package and technical aid

Russian President Vladimir Putin said on Tuesday that Russia would only use military force in Ukraine as a last resort, in remarks apparently intended to ease East-West tension over fears of war in the former Soviet republic.

Russia however reserved the right to use all options in Ukraine to protect its compatriots there who were living in "terror", Putin said.

While Putin said sanctions being considered against Russia would be counter-productive, a senior US official said Washington was ready to impose them in days rather than weeks.

US Secretary of State John Kerry arrived in Kiev on Tuesday and announced an economic package and technical assistance for Ukraine in a show of support for its new government amid escalating tensions with Russia.

Putin, meanwhile, ordered tens of thousands of Russian troops participating in military exercises near Ukraine's border to return to their bases.

The massive military exercise in western Russia involved 150,000 troops, hundreds of tanks and dozens of aircraft. It was not clear if Putin's move was an attempt to heed the West's call to de-escalate the crisis that has put Ukraine's future on the line, but the news has brought relief to the markets and settled the price of oil.

Russian forces remain in de facto control of Crimea - a strategic Black Sea peninsula that has housed the Russian Black Sea Fleet since the 18th century - but there were no signs of them conducting a military offensive overnight.

Ukraine said on Monday that Russia had issued Ukrainian soldiers in Crimea an ultimatum to surrender by dawn or face an all-out assault. Russia had denounced the claim as "complete nonsense".

Kerry, the highest profile foreign visitor to Kiev since the Feb 22 ouster of Kremlin-backed president Viktor Yanukovych, was to meet members of the new government.

He will "reaffirm the United States' strong support for Ukrainian sovereignty, independence, territorial integrity, and the right of the Ukrainian people to determine their own future, without outside interference or provocation", the US State Department said.

Kiev's new leaders were installed after three months of protests culminated in days of violence that claimed nearly 100 lives and led to Yanukovych's replacement by a team that is seeking help from the West.

The situation escalated further on Monday when Washington announced a raft of tough sanctions against Russia.

"We have, in light of recent events in Ukraine, put on hold all military-to-military engagements between the US and Russia," US Defense Department spokesman Rear Admiral John Kirby said.

The suspension of the post-Cold War cooperation covers joint exercises and bilateral meetings as well as port visits and planning conferences.

There was no immediate response from either Putin or the Russian Foreign Ministry to Washington's decision to toughen its stance.

But Sergei Glazyev, a top economic aide to Putin warned that Russia could stop using dollars for international transactions and reduce its economic dependence on the Unites States to "zero".

"An attempt to announce sanctions would end in a crash for the financial system of the US, which would cause the end of the domination of the US in the global financial system," Glazyev said.

US President Barack Obama accused the Kremlin on Monday of being on the "wrong side of history" on Ukraine by violating its sovereignty and international law - comments that echoed Washington's criticism of Russia's position on Syria.

Obama said Washington was "examining a whole series of steps - economic, diplomatic - that will isolate Russia."

US officials then announced a series of punitive measures designed to puncture Russia's geopolitical prestige as well as its military and economic ambitions.

US media reports cited administration sources as saying Washington would also consider canceling the visas of officials involved in the Crimea operation.

The EU warned Russia that ties were at risk without a "de-escalation".

Timeline

Nov 21, 2013: President Viktor Yanukovych's government announces that it is abandoning an agreement to strengthen ties with the European Union and is instead seeking closer cooperation with Moscow. Protesters take to the streets.

Jan 22, 2014: Three protesters die during a confrontation between the police and demonstrators.

Jan 28: In concessions to the opposition, the prime minister resigns and Parliament repeals the anti-protest laws that set off the violence.

Feb 18: Protesters attack police lines and set fires outside Parliament after it stalls on a constitutional reform that would have limited presidential powers.

Feb 20: Hours after a truce is announced, violence resumes. Most of the total 82 deaths occur on this day.

Feb 21: Under a European-mediated plan, protest leaders and Yanukovych agree to form a new government and hold an early election. Parliament cuts presidential powers and votes to free Yanukovych's rival, Yulia Tymoshenko, from prison. Yanukovych flees Kiev after protesters take control.

Feb 22: Parliament votes to remove Yanukovych and hold new elections. Tymoshenko is freed and addresses tens of thousands on the Maidan.

Feb 24: Ukraine's interim government draws up a warrant for Yanukovych's arrest. Russian Prime Minister Dmitry Medvedev derides the new leaders in Kiev as "Kalashnikov-toting people in black masks".

Feb 26: Leaders of Ukraine's protest movement propose legislator Arseniy Yatsenyuk as prime minister. In Moscow, Putin orders major military exercises just across the border.

Feb 28: Ukraine says Russian troops have taken up positions at strategic locations on the Crimean peninsula. Parliament adopts a resolution demanding that Russia halt moves that undermine Ukraine's sovereignty and territorial integrity. Acting president Oleksandr says he has put armed forces on full readiness because of the threat of "potential aggression".

March 1: Russian troops take over Crimea without firing a shot. The Kiev government and its Western supporters are powerless to react. US President Barack Obama calls Putin to demand the troops' withdrawal. - AP

Reuters-AFP-AP