Kerry says Russia has made 'constructive moves' on Ukraine in recent days

LONDON (Reuters) - Russia has made constructive moves in recent days towards possibly reducing tensions in Ukraine, U.S. Secretary of State John Kerry said on Tuesday.

Speaking in London, Kerry said the United States and Europe would lift sanctions within days or weeks depending on whether President Vladimir Putin takes more steps to de-escalate tensions and live up to commitments under September ceasefire accords to end the Ukraine conflict.

"Let me say that Russia has made constructive moves in the last days," Kerry told reporters.

"There are some indications that whether it is the line of control negotiation or the calm that is, in fact, in place in a number of places, the withdrawal of certain people, there are signs of constructive choices. And that can only be helpful, hopefully," he added.

In Washington on Tuesday, White House spokesman Josh Earnest said President Barack Obama was expected to sign legislation by the end of the week implementing new sanctions on Russia over its activities in Ukraine.

The act, passed by Congress on Saturday, leaves to Obama the option to impose sanctions. It seeks to pressure Putin by authorizing new sanctions on Russian weapons companies and investors in its high-tech oil projects, and to boost the Ukraine government with military aid.

Obama's ultimate action could depend on whether he considers Putin is responding to previous international sanctions. Earnest told reporters the power to reverse the sanctions trend rested with Putin. Obama has said he does not want to take new steps that are not synchronized with European partners.

EASING OF SANCTIONS?

Kerry suggested sanctions could be eased if Russia's behaviour towards Ukraine changed.

"These sanctions could be lifted in a matter of weeks or days, depending on the choices that President Putin takes," Kerry said, "Their sole purpose here is to restore the international norm with respect to behaviour between nations with respect for borders and respect for sovereignty and respect for the rights," he said of the measures.

Ukrainian President Petro Poroshenko on Tuesday hailed a brief period of calm in which there was no shooting in eastern Ukraine as a positive signal in a peace plan.

The United States and Europe imposed sanctions against Russia after its annexation of Ukraine's Crimean peninsula and Kremlin backing for armed pro-Russian separatists in Ukraine's eastern regions. Moscow's action have provoked the worst crisis between Russia and the West since the Cold War.

"Our hope is that in the days ahead we can get a clear, defined path by all parties, where everybody understands what each is doing and living up to agreements and in moving to de-escalate this situation," he added.

Asked about the collapse of the Russian rouble, Kerry said: "There are a lot of combined factors, but the sanctions were clearly intended to invite President Putin to make a different set of choices."

The rouble plunged as much as 11 percent against the dollar on Tuesday in its steepest intraday fall since the Russian financial crisis in 1998.

Kerry said the weakening of the currency was not only due to the impact from Western sanctions but also reflected other factors such as the fall in oil prices and the Russian economy.

Kerry said sanctions were not aimed at hurting Russian people who were "caught up in choices that their government makes and it does have an impact."

(Reporting by Lesley Wroughton, writing by Guy Faulconbridge,; editing by Stephen Addison and Howard Goller)

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