Russia keeps door open to talks as US rejects key security concerns

Russia said on Thursday it was clear the United States was not willing to address its main security concerns in their standoff over Ukraine, but kept the door open for further dialogue.

The United States and Nato submitted a written response on Wednesday to demands Russia has made for a redrawing of post-Cold War security arrangements in Europe since it massed troops near Ukraine, provoking Western fears of an invasion.

Kremlin spokesman Dmitry Peskov said Moscow needed time to review the response and would not rush to conclusions, but that U.S. and Nato statements describing Russia’s main demands as unacceptable did not leave much room for optimism.

“Based on what our (US and Nato) colleagues said yesterday, it’s absolutely clear that on the main categories outlined in those draft documents... we cannot say that our thoughts have been taken into account or that a willingness has been shown to take our concerns into account,” he said. “But we won’t rush with our assessments.”

The nuanced Kremlin reaction made clear that Russia was not rejecting the US and Nato responses out of hand or closing the door to diplomacy.

The Russian foreign ministry said the best way to reduce tensions was for Nato to withdraw forces from eastern Europe, but also sought to quash fears of an invasion.

“We have already repeatedly stated that our country does not intend to attack anyone. We consider even the thought of a war between our people to be unacceptable,” said Alexei Zaitsev, a ministry spokesman.

Russian and Ukrainian dollar bonds, which have been hammered by the crisis, rose after Peskov spoke. Russia’s dollar-denominated RTS share index climbed and the rouble recovered from a nearly 15-month low.

But, in a sign of lingering international concern, oil hit seven-year highs above $90 a barrel. Russia is the world’s second-largest oil producer, and the crisis over Ukraine has fanned fears that energy supplies to Europe will be disrupted.

A Ukrainian presidential adviser told Reuters that Kyiv wants to borrow some $5 billion from international organisations and in bilateral aid as borderline “hysteria” over the threat of a Russian attack was limiting its access to capital markets.

Diplomatic window

Russia’s security demands, presented in December, include an end to further Nato enlargement, barring Ukraine from ever joining and pulling back the alliance’s forces and weaponry from eastern European countries that joined after the Cold War.

The US and Nato responses were not made public, but both had already rejected those demands while expressing willingness to engage on issues such as arms control, confidence-building measures and limits on the size and scope of military exercises.

Turkey, a Nato member that has good ties with both Kyiv and Moscow, said it was important to keep talking. “All problems cannot be solved with a document, one or two meetings,” Turkish Foreign Minister Mevlut Cavusoglu said in Ankara.

Western countries have warned of economic sanctions on Russia if it invades Ukraine, building on measures imposed since 2014, when Moscow annexed Crimea and Russian-backed separatists began fighting the Kyiv government’s forces in eastern Ukraine.