MINSK: Russian President Vladimir Putin said on Tuesday the crisis in Ukraine could not be solved by a further military escalation or without dialogue with representatives of the country’s Russian-speaking eastern regions.

“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 south-eastern regions of the country and without a peaceful dialogue with its representatives,” Putin said.

Speaking at a high-level meeting in Minsk, which includes Ukrainian President Petro Poroshenko, Putin also said the Russian economy could suffer a loss of some 100 billion rubles ($2.77 billion) if European Union goods reach Russia via Ukraine, bypassing the tariffs Russia levies on EU goods.

“Russia cannot remain idle in such a case and we will simply be forced to take decisive measures to protect our market,” he said, adding that would include reversing trade preferences for imports from Ukraine. He said that Belarus and Kazakhstan, Moscow’s partners in a customs union, would also be affected.

Ukrainian President Petro Poroshenko said on Tuesday that the only effective instrument for ending bloodshed in eastern Ukraine was effective border controls with Russia, and halting arms supplies to the rebels and releasing prisoners of war.

Poroshenko said all the actors wanted to emerge with dignity from the Ukrainian crisis and that he would listen to all options in a bid to bring peace.