MOSCOW: President Vladimir Putin on Wednesday signed a decree suspending Russia’s free-trade agreement with Ukraine as of January 1, the same day Kiev is set to enter a similar trade deal with Brussels.

Ukrainian President Petro Poroshenko, speaking in Brussels, admitted Russia’s retaliatory move would cause “damage” to his country’s economy but said he was “ready to pay the price” and press on with efforts to join a European Union free trade zone.