German chancellor Angela Merkel yesterday called for trade talks between the EU and a Russia-led economic bloc as a way of maintaining dialogue with President Vladimir Putin – and of countering claims her Ukraine policy is too tough on Moscow.

German officials believe the proposal could help ease tensions, if the terms of a ceasefire agreed in Minsk in September can be implemented. Discussions between the EU and Eurasian Economic Union are unlikely as long as fighting continues in breakaway regions of eastern Ukraine.

“We are ready for talks between the Eurasian Union and the EU on trade issues,” Ms Merkel told the German parliament. The German chancellor floated the idea in a long late-night meeting with Mr Putin during her recent visit to the G20 summit in Brisbane.