Ukraine for Geneva format to solve crisis: PM

The Ukraine crisis should be resolved through continuing talks between the European Union (EU), the US, Russia and Ukraine, Prime Minister Arseny Yatsenyuk said Thursday.

"Regarding further format of negotiations, I remain a supporter of negotiations in an exclusive 'Geneva format'," Yatsenyuk said at a government meeting here.

In Geneva April 17, Ukraine, Russia, the US and the EU agreed to disarm illegal groups and initiate a national dialogue on constitutional reform in Ukraine.

Meanwhile, Ukraine launched a months-long military operation in the eastern part of the country, accusing separatists of constantly violating agreements with the government. Kiev has also accused Russia of supporting the militants.

Speaking of the fresh sanctions Washington and Brussels decided to impose against Russia, Yatsenyuk said Kiev had observed "unity" among its Western partners, Xinhua reported citing Ukrinform news agency.

The prime minister added the sanctions were Russia's costs for what he called "military aggression, arms supplies and financing of the bandits".

On Wednesday, EU leaders agreed to impose new sanctions on Russian companies allegedly helping to destabilize Ukraine.

A few hours before Brussels' announcement, the US announced the most wide-ranging sanctions yet on Russia, targeting key institutions including Gazprombank and Rosneft, as well as other energy and defence companies.

In Moscow, the Russian foreign ministry said Thursday that Russia would retaliate "asymmetrically but painfully," after the US and the European Union (EU) announced fresh sanctions against the country.

"We are not going to tolerate blackmail and reserve the right to take measures in response," the Russian foreign ministry said in a statement.

Also Thursday, Russian Prime Minister Dmitry Medvedev said that in light of fresh sanctions from the West, Moscow would shift the focus of budget spending toward more generous support for the defence sector.