Russia may recognise breakaway regions of Ukraine: Vladimir Putin

Russian President Vladimir Putin said on Monday he was considering a request by two regions of eastern Ukraine held by Russian-backed separatists to be recognised as independent - a move that could give Moscow a reason to openly send troops.

 Russian President Vladimir Putin said on Monday he was considering a request by two regions of eastern Ukraine held by Russian-backed separatists to be recognised as independent - a move that could give Moscow a reason to openly send troops.

Separately, Moscow said Ukrainian military saboteurs had tried to enter Russian territory in armed vehicles, an accusation dismissed as "fake news" by Kyiv amid Western accusations that Moscow aims to fabricate a pretext to invade.

Washington says Russia has now massed a force numbering 169,000-190,000 troops in the region, including pro-Russian rebels in eastern Ukraine.

European financial markets tumbled at signs of increased confrontation, after having briefly edged higher on the glimmer of hope that a summit might offer a path out of Europe`s biggest military crisis in decades. Russian shares plunged, and the rouble dropped 3%.

Russia denies planning any attack on its neighbour, which broke away from Moscow`s rule with the collapse of the Soviet Union in 1991, but has demanded sweeping security guarantees, including a promise that Ukraine will never join NATO.