MOSCOW

Kremlin said on Thursday that UK's decision to supply Ukraine with long-range Storm Shadow missiles will require an "adequate response" from Russia.

Speaking at a press briefing in Moscow, Spokesman Dmitry Peskov said Russia's attitude to London's decision is "extremely negative."

"This will require an adequate response from our military, who, naturally, from a military point of view, will make appropriate decisions against this background," he stressed.

Storm Shadow is a long-range aviation cruise missile jointly developed by the UK and France, which is usually launched from the air. The firing range is more than 250 km (over 155 miles).

Turning to the settlement between Azerbaijan and Armenia, Peskov said Moscow continues to maintain contacts with Baku and Yerevan, but there are no scheduled phone talks or meetings with the leaders of these countries.

"We expect a restrained approach from the parties and urge them not to take any actions that could lead to an increase in tension," he said amid another escalation between the two countries.

Asked about the deficit of the Russian budget, Peskov said the situation in the economy is under control, and the macroeconomic indicators are good.

Commenting on Russian President Vladimir Putin's decision to restore a visa-free regime and direct air traffic with Georgia, Peskov said it was made due to humanitarian reasons.

"For quite a long time, the Russian authorities have received appeals from citizens of both countries and entrepreneurs of both countries, as well as public associations, academia, and cultural figures who have asked to make these decisions. That's right, based on humanitarian considerations, it was," he noted.

As for the restoration of the diplomatic ties, Peskov said: "I wouldn't get that far ahead of myself yet."

The official also criticized Washington's decision to expropriate the assets of Russian entrepreneur Konstantin Malofeev, warning that it will undermine trust in the US.