KIEV, Aug. 28 – Ukraine will not drop its plans to sign free trade and political association agreements with the European Union despite Russia’s threats to impose trade restrictions, Prime Minister Mykola Azarov said Wednesday.

Instead, Azarov instructed his government to try to find ways of cooperating with Russia, adding the deals with the EU should be accepted as a “reality.”

"After signing the association agreement with the European Union, Ukraine will create a free trade area with the EU,” Azarov said. “It must also be accepted as a reality."

The comments come two days after Azarov’s talks with his Russian counterpart Dmitry Medvedev failed to find any compromises on trade issues.

Russian Deputy Prime Minister Igor Shuvalov later said it was “pointless” to continue the talks, a sign that Ukraine should preparing for trade complications later this year.

But Azarov responded on Wednesday that it was “pointless” to create new dividing lines in Europe. “It would not be in the interests of our peoples,” he said, instructing his government to find ways of avoiding a confrontation.

“I ordered developing ways of interacting with [Russia’s] Customs Union and later with the Eurasian Economic Union in conditions of free trade zone between Ukraine the EU,” Azarov said.

The government and Ukrainian businesses were already taking steps to make sure that Ukraine avoids major trade problems with Russia, Azarov said without elaborating.

“Now the government and businesses vigorously adapt their actions to ensure there are no any restrictions from the Eurasian Union,” he said.

The worries over the possible trade war between Ukraine and Russia rose after Russian President Vladimir Putin said recently that Russia will resort to sweeping restrictions against Ukrainian goods if Kiev signs a free trade and political association agreements with the European Union.

The protectionist rhetoric came only days after Russia had lifted its heavy restrictions imposed against Ukrainian goods last week.

The restrictions, which amounted to a de-facto blockade of the Ukrainian goods at the border, were politically motivated to prevent Ukraine from signing the agreements with the EU in November, Ukrainian politicians said.

Putin’s comments echoed those recently made by his chief trade advisor, Sergei Glaziev, that Moscow will implement tougher trade sanctions if Ukraine makes “suicidal” move to sign the EU agreements.

Moscow has been persistently encouraging Kiev to drop the EU agreements and instead to join the Customs Union, a Russia-led trade bloc that also includes Kazakhstan and Belarus.

The European Union called it “unacceptable” for Russia to economically threaten Ukraine, linking the threat with a possible signature of the association agreement with the EU. (tl/ez)