Russia 'remains open for diplomatic contacts'

Talks at all levels welcomed, says Moscow as Kyiv mulls cutting ties

The Kremlin said on Tuesday it remained open to all diplomatic contacts over Ukraine and that any action by Kyiv to cut ties with Moscow would worsen an already tense situation.

"The Russian side remains open at all levels for diplomatic contacts… Everything depends on our opponents," Reuters quoted Kremlin spokesman Dmitry Peskov as saying, adding that any move by Kyiv to cut its official ties with Moscow would be "an extremely undesirable scenario that would make everything even more difficult".

Ukrainian leader Volodymyr Zelensky on Tuesday demanded an immediate halt to the Nord Stream 2 gas pipeline and Kyiv considered severing relations with Moscow in response to its recognition of two regions.

Russian President Vladimir Putin on Monday ordered the military to act as peacekeepers in "the Lugansk People's Republic (LPR)"and "the Donetsk People's Republic (DPR)" in eastern Ukraine, just hours after he recognized the regions as independent.

In two official decrees, Putin instructed the defense ministry to assume "the function of peacekeeping" in the Donetsk and Lugansk regions.

The Russian leader also demanded that Ukraine end military operations against militia in the two regions, or face more possible bloodshed.

"Otherwise, all responsibility for the possible continuation of bloodshed will be fully on the conscience of the regime in power in Ukraine."

After Putin's decision, Russia's ambassador to the United Nations Vassily Nebenzia said on Monday that eastern Ukraine had been on the brink of a new "Ukrainian military adventure" that Russia could not allow.

He also warned Western powers to "think twice" and not worsen the situation in Ukraine. He was speaking at an emergency meeting of the Security Council.

The United States on Monday announced financial sanctions against Russia for its decision and warned more were ready if necessary. U.S. President Joe Biden will issue more orders on this issue, White House press secretary Jen Psaki said.

In an interview with Russian state news agency TASS, French expert Dmitry de Koshko said the U.S. sanctions against Russia will cause the most pain in Europe.

Energy sector

De Koshko said that if the U.S. imposes more sanctions on Russia, especially in the energy sector with any action against the Nord Stream 2 project, Europe "will eventually have to pay more for energy".

According to the expert, U.S. sanctions "may complicate the operations of European business".

Mikhail Pogrebinsky, director of the Kyiv Center for Political Studies and Conflictology, a think tank in the Ukrainian capital, said Europe's ignorance of the regional situation and refusal to publicly criticize Kyiv has led to Russia's decision.

Georgy Chizhov, who heads the European Dialogue expert group, agrees. He said a slow escalation of the crisis that would last for a long time appears to be the conditionally likely scenario.

So far, no one is giving in, said Ivan Timofeev, the director of programs at the Russian International Affairs Council.

French President Emmanuel Macron on Monday condemned the Kremlin's move to recognize the DPR and the LPR, urging the European Union to agree to new sanctions against Moscow.

German Chancellor Olaf Scholz said on Tuesday that Germany has taken steps to halt the process of certifying the Nord Stream 2 gas pipeline from Russia.

The EU said on Tuesday that it wants to target banks financing Russian operations in the Donetsk and Lugansk regions, and hit Moscow's access to European financial markets. The proposals were expected to be formally submitted later on Tuesday.