Obama delays decision on arming Ukraine, pins hopes on talks with Russia

US President Barack Obama has agreed to hold off a controversial decision on sending arms to Ukraine until German-led efforts to broker a ceasefire with Russia are given a chance.

Hosting Chancellor Angela Merkel at the White House on Monday, Obama said he hoped she could reach a deal with Russian President Vladimir Putin to end 10 months of bloodshed in eastern Ukraine, but warned more punitive measures are in the pipeline if that fails.

Steep Western sanctions and low oil prices have crippled Russia’s economy but have so far failed to dissuade Putin’s government from backing Ukrainian separatists. Moscow denies it is doing so.

“My hope is that through these diplomatic efforts those costs have become high enough that Mr Putin’s preferred option is for a diplomatic resolution,” Obama said.

“I won’t prejudge whether or not they’ll be successful,” he added. “If they are not, then we will want to raise the costs. And we will not relent in that.”