Russian President Vladimir Putin said Thursday that there is no plan to impose sanctions on Ukraine.

"Only Ukraine won't have privileges and preferences any longer," Putin told his annual year-end press conference.

According to the president, Russia-Ukraine economic relations would deteriorate as from Jan. 1, 2016, when the Ukraine-EU free trade regime starts.

"Moscow tried to maintain economic relations with Kiev," Putin said, adding that changes of trade deals with Ukraine are made to remove Russia's concerns and to ensure national economic interests.

Putin on Wednesday signed a decree to suspend Russia's free trade deal with Ukraine as from Jan. 1, 2016. Russian Prime Minister Dmitry Medvedev said recently that the end of Russia's privileged trade regime with Ukraine would in particular mean higher tariffs for different categories of goods from 3 percent to 9 percent, or 6 percent on average.

The suspension means not only that Ukraine will no longer enjoy the most favored nation status under the framework of the Commonwealth of Independent States free trade deal, but also a host of preferential policies in areas of migration, customs, quarantine inspection, and investment, Russia's Economic Development Minister Alexei Ulyukayev told reporters on Wednesday.

Ulyukayev also said that Russia will try to find a solution to the deadlock when meeting with Ukrainian and EU officials in Brussels next Monday.

Putin added during the press conference that Russia is interested in seeking a quick solution to the conflicts in eastern Ukraine through open and honest dialogue.

He also claimed that no regular Russian troops are in Ukraine. "We've never said that there are no people deciding military issues in Ukraine, but this does not mean there are regular Russian troops there." Endi

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