Ukraine president Poroshenko to meet Putin, Obama in peace talks

Ukraine's Western-backed leader Petro Poroshenko has promised to meet Russia's Vladimir Putin and involve US President Barack Obama in his stalled push for peace with pro-Kremlin fighters in the separatist east.

The surprise announcement on Monday came days after the first direct peace talks with the rebels in three months broke down after just one hostile round.

Poroshenko is waging a two-front campaign to save the former Soviet Union's second largest republic from disintegration and economic collapse.

His bid to fend off bankruptcy was boosted on Monday by parliament's passage of an austerity budget that eases the tax burden on small firms and should help unlock delayed loans from the International Monetary Fund.

His efforts to resolve the eight-month war that has brought Ukraine to economic ruin will see him meet Putin for the first time since the two briefly shook hands at an October summit in Milan.

Poroshenko said his January 15 talks with Putin would also involve German Chancellor Angela Merkel and French President Francois Hollande.

Washington has let Merkel lead in prompting Putin to adopt a more conciliatory approach to Ukraine's pro-Western aspirations and to rein in the rebel militias. But Poroshenko made it clear on Monday that he wants the White House more involved.