West's sanctions violate WTO principles: Putin

Ukrainian President Petro Poroshenko addresses a joint meeting of Congress at the US Capitol in Washington, DC, yesterday. Photo: AFP

President Vladimir Putin yesterday said Western sanctions against Russia violated the principles of the World Trade Organization and the main way to combat them was to develop the domestic market.

At a meeting with senior officials, Putin said Russia had no intention of punishing the West for the sanctions, imposed over Moscow's role in Ukraine, and said instead they had challenged Russia to strengthen its economy, boost competition and spur lending.

The Ukraine crisis has plunged ties between the West and Russia to their lowest since the Cold War, and Putin criticised countries that imposed sanctions for violating the spirit of the WTO, which he said was fair and free economic competition.

Russia joined the WTO in 2012 after 18 years of on-and-off negotiations on the terms of its entry.

Meanwhile, Kiev yesterday accused Moscow of massing its troops in annexed Crimea on the Ukraine border, rattling nerves just as President Petro Poroshenko prepared to meet US counterpart Barack Obama.

The apparent push north by about 4,000 troops in the Black Sea peninsula came despite Russia's declared backing of a peace overture by Kiev to try to end five months of conflict in the rebellious east.

"According to our information, almost all military units of the Russian Federation stationed in the north of occupied Crimea... were pushed to the administrative border with Ukraine along with all their equipment and ammunition," National Security and Defence Council spokesman Andriy Lysenko told reporters.

Poroshenko holds his first White House talks with Obama later Thursday, seeking to gain security guarantees from Washington as he steers the former Soviet state on a clear westwards path.

The meeting comes just two days after parliament in Kiev ratified a historic pact with the EU and adopted legislation offering self-rule to the east in votes crucial to the future shape of the nation.

Poroshenko's offer won Russia's support, although the pro-Moscow rebels have been more dismissive, saying it will not stop their fight for full independence.

The self-rule law and accompanying legislation granting amnesty to fighters were drawn up under a truce signed 13 days ago that has eased -- but not halted -- deadly violence around insurgent strongholds in eastern Ukraine.