Russia's President Vladimir Putin warned
Ukraine on Friday that any break in cooperation with Moscow could be "critical" for the Ukrainian defence industry, Interfax news agency reported.
Putin also told a state meeting on Russia's defence industry that Moscow should boost the production of anti-missile and anti-aircraft systems it exports, including the S-300, RIA said.
This comes as Russian Foreign Minister Sergei Lavrov accused Washington of distorting an international agreement on Ukraine by making additional demands on Moscow.
"Russia will firmly contribute to the de-escalation of the conflict based on the compromise approach agreed in Geneva...there can be no one-sided demands," Lavrov told a meeting with young diplomats in Moscow.
"And we are being presented them - first of all I mean the United States of America who have an outstanding ability to turn everything on its head."
He also denounced Kiev's security operation in eastern Ukraine as a "bloody crime" and said the interim government would face justice for staging a war against its own citizens.
"They (Kiev) are waging a war on their own people. This is a bloody crime and those who pushed the army to do that will pay, I am sure, and will face justice," he told a meeting with young diplomats in Moscow.
For his part, U.S. Secretary of State John Kerry suggested on Thursday that the United States is drawing closer to imposing more sanctions on Russia by saying time was running out for Moscow to change its course in Ukraine.
In unusually blunt comments, Kerry accused Russia of using propaganda to hide what he said it was actually trying to do in eastern Ukraine: destabilize that region and undermine next month's planned Ukrainian elections.
"The window to change course is closing," he told reporters in a hastily arranged appearance in the State Department press room, repeating U.S. threats to impose fresh sanctions if Russian President Vladimir Putin does not alter his policy.
"If Russia chooses the path of de-escalation .. all of us will welcome it. But if Russia does not, the world will make sure that the costs for Russia will only grow," he said. "It will be an expensive mistake."
Under an accord signed by Russia, Ukraine, the United States and European Union in Geneva last week, illegal armed groups are supposed to disarm and go home, including rebels occupying about a dozen buildings in the largely Russian-speaking east.
However, the rebels have shown no sign of retreating. U.S. President Barack Obama blamed Russia for failing to carry out the Geneva deal and said he was ready to impose new sanctions.
"As President Obama reiterated earlier today, we are ready to act," Kerry said.
REUTERS