President Vladimir Putin, on Tuesday, said that Russia would only use military force in Ukraine as a last resort.

This is in line to ease the East-West tension over fears of war in the former Soviet Republic.

Russia, however, reserved the right to use all options in Ukraine to protect its compatriots there who were living in “terror”, Putin said. His comments lifted Russian bond markets after a panic sell-off on Monday.

While Putin said sanctions being considered against Russia would be counter-productive, a senior U.S. official said that Washington was ready to impose them in days rather than weeks.

U.S. Secretary of State, John Kerry arrived in Kiev and announced an economic package and technical assistance for Ukraine in a show of support for its new government.

Putin said that there had been an unconstitutional coup in Ukraine and ousted leader, Viktor Yanukovich, an ally of Russia, was still the legitimate leader of the country, despite giving up all power.

February’s ousting of Yanukovich after months of street protests in Kiev, and Russia’s bloodless seizure of Ukraine’s Crimea region prompted a confrontation between Moscow and the West, widely seen as the most serious since the end of the Cold War.

The West has been alarmed at the possibility that Russia might also move into eastern and southern Ukraine, home to many Russian speakers.