Ukraine government drops pact with EU, renews Russia dialogue

The Ukrainian government announced it was suspending preparations for a landmark trade pact with the European Union on Thursday and said it would renew active dialogue with Russia to help its economy. A dramatic diplomatic turnaround, the government order came just eight days before President Viktor Yanukovich was due to sign an agreement on trade and cooperation with the EU which would mark a pivotal shift westwards for the ex-Soviet republic's 46 million people, away from historic ally Moscow. Ukraine has been concerned that a punitive Russian trade response could hurt its economy.