Russia's President Vladimir Putin chairs a meeting at the Novo-Ogaryovo state residence outside Moscow
Russia's President Vladimir Putin chairs a meeting at the Novo-Ogaryovo state residence outside Moscow July 17, 2014. Reuters

In a major change, German Chancellor Angela Merkel took a soft line on Russia and said sanctions are no constraint in holding talks with Moscow. Speaking in the German Parliament ahead of the EU-Asia summit in Milan, Merkel referred to the two main issues bothering Europe-the crisis in Ukraine which she called "very difficult" and the euro crisis that is far from solved, reports Business Insider.

However, Merkel blamed Kremlin for the Ukraine conflict and said Russia is using the separatists to prevent Ukraine's integration with the EU. The German chancellor said the September truce agreed in eastern Ukraine has been broken. "It is Russia's responsibility to adhere to the Minsk agreement," Merkel said. Despite deficits in upholding the truce in Ukraine by Russia, holding a dialogue is the right way to go", reported Spec, quoting the German leader.

Poser To Putin

Merkel said she would raise three major points with Putin when they meet in Milan during the EU-Asia Summit on Friday. One is that Russia must pull back its armed forces from the Ukraine border; make the Ukraine-Russia border safe and secure; allow Ukraine to carry out theOct. 26 elections per Ukrainian laws. Merkel said, even though Russia's violation of international law in Crimean annexation is condemnable and it is facing sanctions, "we will not rule out dialogue with Russia."

Putin Debunks Criticism

Mr Putin, expressing his thoughts on the comments made by EU leaders, said Russia is not creating any crisis in the European Union. He said there is risk in EU-bound natural gas traveling through Ukraine. But Russia will not be responsible if an energy crisis breaks out. "If we notice the Ukrainian partners are siphoning off our gas, we will cut deliveries," Mr Putin warned

A large number of EU states are buying almost 15 percent of their natural gas for power and heating purposes from Russia, and the pipelines are passing through Ukraine. Putin said Russia will not succumb to the pressure from the U.S or EU on the Ukraine crisis. "I want our partners to realise the futility of attempting to blackmail Russia and creating a discord between the nuclear powers," Putin told Serbia's Politika newspaper, before flying to Italy.

On Friday, Putin will meet Ukrainian President Petro Poroshenko, German Chancellor Angela Merkel, British Prime Minister David Cameron, French President Francois Hollande and Italian Prime Minister Matteo Renzi.