Putin's envoy: Russia-US talks about energy and economy will continue

Dmitriev claims to have spoken with US counterparts June 3.

* Suggests that trilateral talks between Ukraine and the US are possible when "the time is right"

* US says it understands that extending sanctions waivers for Russian oil is good for the markets (Adds Dmitriev quotations, details).

By Gleb Bryanski

ST. PETERSBURG (Russia), June 4, 2014 - The?Russian-U.S. economic and energy talks continue despite the pause in?Ukraine's peace negotiations. President Vladimir Putin’s special envoy Kirill Dimitriev said on Thursday. He added that he had spoken to his U.S. counterparts one day earlier.

The Kremlin announced on May 18 that it was putting the Russia-Ukraine Peace Process on hold, but that Moscow expects that it will resume. Contacts between Moscow and Washington continue at various levels.

"We spoke to Steve Witkoff yesterday. Dmitriev, speaking on the sidelines of Russia's largest economic conference in reference to U.S. delegates, said: "The dialogue continues and there is continuous communication."

TRILATERAL SPEAK IS POSSIBLE WHEN THE 'TIME' IS RIGHT

U.S. president Donald Trump and Putin spoke last on April 29. They discussed a temporary ceasefire in Ukraine to mark the anniversary the end of World War Two. Dmitriev met Kushner, Witkoff and Kushner last in April.

Military action has escalated since the ceasefire. Russia has attacked Kyiv and other Ukrainian cities with drones or missiles while Ukraine has targeted refineries, ports and other industrial sites deep within Russia.

The U.S. peace process, which was launched in Riyadh at the Russia-U.S. meetings in February of last year, is stalled because Moscow wants to hand over a portion of Donbas that it still controls.

Dmitriev stated that not all Russia-U.S. contacts were related to Ukraine, and both sides would continue discussing energy, economy, and global security. He said trilateral talks could be held with Ukraine.

Dmitriev stated that "and?then, when the time is right?, I believe there will also be an opportunity?for trilateral discussion, but this is more of a diplomatic track."

The U.S. extended for the third time on May 18, a 30-day waiver of sanctions?allowing purchases by "energy-vulnerable countries" affected by the Iran war.

Dmitriev who has been involved in discussions with the Trump Administration on previous extensions said U.S. officials understand the waivers role in stabilizing the?markets in the Middle East Crisis.

The markets benefited from the extension of waivers in the past. Dmitriev, refusing to confirm whether the waiver would be extended this month, said that the U.S. Administration understands the importance of Russian oil and Russian gas to the stability of the energy market. Reporting by Gleb Brynski. Mark Potter (Editing by Gleb Bryanski)

(source: Reuters)