Russia's Putin orders suspension of free trade zone with Ukraine

Russian President Vladimir Putin addresses the Federal Assembly, including State Duma deputies, members of the Federation Council, regional governors and civil society representatives, at the Kremlin in Moscow, Russia, December 3, 2015. REUTERS/Sergei Karpukhin

MOSCOW (Reuters) - President Vladimir Putin on Wednesday ordered his government to suspend Russia's free trade zone with Ukraine from Jan. 1, making good on Moscow's threats to Kiev which seeks closer ties with the European Union.

Russia annexed Ukraine's Crimean peninsula last year and is accused by Kiev of fomenting a bloody conflict with pro-Moscow separatists in the east of the country. It has staunchly opposed plans to launch an EU-Ukraine free trade pact.