Unlock stock picks and a broker-level newsfeed that powers Wall Street.
WRAPUP 8-Russia, U.S. keep door open to Ukraine diplomacy, but big gaps remain

(Adds White House on Biden call with Zelenskiy, U.S. asks for U.N. Security Council meeting, draft U.S. legislation)

* Moscow says U.S. response ignores its main concerns

* 'Serious' dialogue still possible on some topics

* Ukraine expects diplomacy to continue for next two weeks

* China calls for calm on all sides

By Dmitry Antonov, Tom Balmforth and Simon Lewis

MOSCOW/WASHINGTON, Jan 27 (Reuters) - Russia said on Thursday it was clear the United States was not willing to address its main security concerns in their standoff over Ukraine, but both sides kept the door open to further dialogue.

The United States and NATO submitted written responses on Wednesday to Russia's demands for a redrawing of post-Cold War security arrangements in Europe since it massed troops near Ukraine, prompting Western fears of an invasion and new U.S. pledges of defense support.

Kremlin spokesman Dmitry Peskov said Moscow needed time for review and would not rush to conclusions, but that U.S. and NATO statements describing Russia's main demands as unacceptable did not leave much room for optimism.

"Based on what our (U.S. and NATO) colleagues said yesterday, it's absolutely clear that on the main categories outlined in those draft documents ... we cannot say that our thoughts have been taken into account or that a willingness has been shown to take our concerns into account," Peskov said. "But we won't rush with our assessments."

The nuanced Kremlin reaction showed Russia was not rejecting the U.S. and NATO responses out of hand or closing the door to diplomacy. Washington says it and its allies hope Russia will study their responses and come back to the negotiating table.

"We are unified, unified in our preference for diplomacy. But we are also unified in our resolve that if Moscow rejects our offer of dialogue, the costs must be swift and severe," U.S. Under Secretary of State for Political Affairs Victoria Nuland told reporters.

Russia's foreign ministry said the best way to reduce tensions was for NATO to remove forces from eastern Europe, but also sought to quash fears of an invasion. U.S. officials say President Vladimir Putin has not yet decided whether to invade.

"We have already repeatedly stated that our country does not intend to attack anyone," said Alexei Zaitsev, a Russian foreign ministry spokesman. "We consider even the thought of a war between our people to be unacceptable."

FRAGILE DIPLOMACY

With weeks of careful dialogue yet to reach a breakthrough, U.S. President Joe Biden repeated in a phone call with Ukrainian President Volodymyr Zelenskiy that Washington and its allies stand ready to respond decisively if Russia invades the former Soviet state, the White House said.