VIENNA (Reuters) - Russian President Vladimir Putin thinks the chances of resolving the crisis in Ukraine are gradually improving, Austria's chancellor said on Friday after speaking by phone to the Russian leader.
The two held a 20-minute call on Thursday evening in which they discussed the situation in Ukraine and European Union efforts to resolve a conflict involving a pro-Moscow separatist movement there.
Faymann, who spoke to Putin after meeting designated EU foreign policy chief Federica Mogherini in Rome on Thursday, told ORF radio he had stressed in the call that the EU could not accept Moscow's sending soldiers into a neighbouring country.
Asked about Putin's reaction, Faymann said:
"On the one hand he said he took the new measures to secure the borders, that practically no soldiers are now in the area where they used to be. What I note positively is that he also said the peace plan and talks with Ukraine are going positively. He also said decidedly that he is of the opinion that he sees a step-by-step improvement."
He said the two did not discuss ending sanctions the EU has imposed on Moscow, triggering countersanctions by Russia.
Putin also suggested in the call that Vienna could host possible peace talks to resolve the crisis in Ukraine, Faymann said.
In an interview with the newspaper Oesterreich, Faymann was earlier quoted as saying the two men had moved a step closer.
"It looks better now than it did the last time I spoke with him, but we are not yet at the finish line. He praised neutral Austria's active peace efforts and sees Vienna as a good place to hold potential peace talks with Ukraine," he said.
Austria has walked a careful line between solidarity with its European Union peers on using sanctions to punish Russia for its alleged role in fomenting the revolt in Ukraine and keeping lines of communication open with Moscow.
Faymann's government has taken a harder line on Russia's suspected role, but much of Austria's commercial community remains firmly on the side of business as usual with Moscow.
Putin visited Austria in June, getting a warm welcome from the country's business elite despite the frosty EU ties to Russia.
Austrian traditionally has strong commercial ties with Russia, which is a key energy supplier and the main source of profits for two big Austrian lenders.
(Reporting by Michael Shields; Editing by Toby Chopra)
