Russian Prime Minister Dmitry Medvedev said that Moscow and Western powers are on the brink of a new Cold War over the crisis in Ukraine.

Russian Prime Minister Dmitry Medvedev said that Moscow and Western powers are on the brink of a new Cold War over the crisis in Ukraine.

In an interview with Bloomberg Television, Medvedev said: “"Basically we are slowly but surely approaching a second Cold War that nobody needs.”

The Russian premier slammed US President Barack Obama's response to the Ukraine crisis, saying he regretted that Washington had undone years of work in improving relations during the "reset" between the two countries.

"I believe President Obama could be more tactful politically in discussing those issues," Medvedev said in the interview recorded Monday in his country residence.

"The agreements that were reached with America were useful. I am very sorry that everything that has been achieved is now being eliminated by those decisions."

He said that Russia had "not commented on (sanctions) a great deal or responded to them harshly although we probably could cause some unpleasantness for the countries that are imposing those sanctions."

Russia is set to sign a major gas agreement with China as President Vladimir Putin pays an official visit to Beijing, Medvedev said, adding that it would be possible for Russia to divert all its gas intended for Europe to China.

"It's time that we reached an agreement with the Chinese on this issue," Medvedev said, adding: "It is very likely there will be a contract, which means long-term contracts."