From our news desk:
Russian Foreign Minister Sergei Lavrov said Poroshenko's decision not to extend the truce started “a new cycle of bloodshed with consequences unpredictable for the Ukrainian state.”
The Foreign Ministry said Lavrov made the comments during a telephone conversation with U.S. Secretary of State John Kerry.
It said Kerry gave assurance on Washington's desire to find a peaceful resolution to the conflict but "acknowledged differences in the approaches on how to achieve this."
The EU divisions over the South Stream pipeline continue:
Hungary says it will build its part of Gazprom's South Stream gas pipeline that bypasses Ukraine to supply Europe.
Hungarian Prime Minister Viktor Orban said July 1 in Serbia that "those who say we shouldn't build South Stream should make an alternative proposal about how we could live without energy."
Orban's comments underscore divisions within the EU over the pipeline, due to cross the Black Sea, Serbia, and Hungary to Austria.
The European Commission has called on EU states to resist Kremlin pressure over the project, saying the contracts Gazprom has signed breach the bloc's competition rules.
Bulgaria last month froze its South Stream construction work.
But Austria’s OMV energy company and Gazprom on June 24 signed a contract to build the Austrian section.
Serbia on June 17 reconfirmed its commitment to the project.
From our news desk:
Swedish Foreign Minister Carl Bildt has met with Ukrainian President Petro Poroshenko to discuss implementation of Kyiv's association agreement with the EU.
Following the meeting in Kyiv July 1, Poroshenko reaffirmed Ukraine's intention to hold consultations July 11 with representatives from the EU, Ukraine, and Russia over economic aspects of implementation of the agreement.
Poroshenko told reporters "our position on the essence of the agreement is clear: it cannot be discussed. But we can discuss its stages, primarily, as far as standardization is concerned.”
Ukraine and the EU signed an association accord in March 21 and a free-trade deal June 27 despite Russia's objections.
The president's press office said that the two sides also agreed to closely coordinate their further efforts on Ukraine's European integration and to stabilize the situation in Donbas.
RFE/RL correspondent Andrei Babitsky is in Luhansk, which has been one of the flashpoints of the conflict in eastern Ukraine. He sent these pictures showing a city in a state of limbo.
Fragile Calm Reigns In Luhansk, Ukraine
More from our news desk on Putin's speech at a meeting of Russian ambassadors today:
Putin also charged Kyiv with conducting a targeted program to "eliminate" Russian media representatives working in the east of the country.
He said, "The murders of journalists are totally unacceptable and I have reiterated this yesterday to the president of Ukraine."
His remarks followed the death of a Russian TV cameraman near a pro-Kyiv military unit in the Donetsk region on June 30.
Anatoly Klyan was the third Russian journalist to die in the conflict and the fifth journalist overall.
Putin also accused Kyiv of using "blackmail" in negotiations on gas prices, saying Kyiv had demanded a "totally unjustified" price cut for supplies of Russian gas.
And he said "conscientious" consumers and suppliers should not suffer from "the actions of Ukrainian politicians."
Negotiations over gas prices between Moscow and Kyiv broke down last month as Russia restricted gas supplies to Ukraine after a payment deadline passed on June 16.
Russia has said its "final price" is $385 per 1,000 cubic meters, a price Ukraine says is too high.
BREAKING: The European Union has decided not to immediately impose new sanctions on Russia over the Ukrainian crisis, saying the picture on the ground remains “mixed.”
Ambassadors from the 28-nation bloc discussed the issue at a meeting in Brussels on July 1.
However, EU diplomats were quoted as saying the governments decided that "the preparation of sanctions will be intensified."
One source said the ambassadors will convene again on July 7 to discuss the situation.
Sources said EU experts were working on sanctions targeting specific people or companies.
On June 27, EU leaders gave Russia three days to change policy on Ukraine or face the prospect of tougher sanctions.
The EU has so far imposed measures targeting some 60 people in Russia and Ukraine with asset freezes and travel bans, as well as two energy companies in Crimea.
Here's an item from our news desk on Putin's speech to ambassadors at the Russian Foreign Ministry:
Russian President Vladimir Putin has accused the West of seeking to use the crisis in Ukraine to destabilize the whole region.
He told a biannual meeting of Russian ambassadors at the Foreign Ministry in Moscow today that "events provoked by the West in Ukraine are a concentrated manifestation of a containment policy against Russia."
He also said that "Russia will continue to protect ethnic Russians abroad, including using political, economic, and humanitarian means."
Speaking of Ukrainian President Petro Poroshenko, Putin said Russia and European partners failed to convince him not to take the path of violence.
He said that Poroshenko "took upon himself the responsibility for unleashing battle actions in Ukraine" when he decided late on June 30 not to extend a 10-day cease-fire with pro-Russian separatists in the east.
Putin ends public portion of speech without any big news. Mishmashed statements show how reactive & ad hoc Russian foreign policy has been.
— max seddon (@maxseddon) July 1, 2014
Putin speech over. Little information on future actions in #Ukraine, mostly anti-West quotes cut and paste from previous speeches.
— Laura Mills (@lauraphylmills) July 1, 2014