DONETSK: Russia said its military is massed on Ukraine's doorstep and warned against further US sanctions as a deal struck with Washington appeared to stall because of intransigence by Moscow-backed rebels in the former Soviet republic.

A threat by US President Barack Obama that more sanctions would befall Moscow if the agreement, reached Thursday with Ukraine and the EU, failed was "absolutely unacceptable," Kremlin spokesman Dmitry Peskov told Russian television.

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