WRAPUP 4-West, Russia signal line drawn in Ukraine crisis

Tue Mar 25, 2014 7:36pm EDT
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(Adds senior U.S. administration official, U.S. congressional action, paragraphs 8-10, 34-36)

* Russia says wants to engage with West

* No appetite in U.S., EU for wider sanctions now-officials

* Ukraine fires defence minister, seeks $15-20 bln from IMF

* Both sides lobby other countries over Crimea standoff

By Jeff Mason and Katya Golubkova

THE HAGUE/MOSCOW, March 25 (Reuters) - Russia and the West drew a tentative line under the Ukraine crisis on Tuesday after U.S. President Barack Obama and his allies agreed to hold off on more damaging economic sanctions unless Moscow goes beyond the seizure of Crimea.

Describing Russia as a "regional power" and not the biggest national security threat to the United States, Obama said Russian forces would not be removed militarily from Crimea, but the annexation of the Black Sea region was not a "done deal" because the international community would not recognise it.

"It is up to Russia to act responsibly and show itself once again to be willing to abide by international norms and ... if it fails to do so, there will be some costs," he told a news conference at the end of a nuclear security summit in The Hague.   Continued...