Distillates

UPDATE 2-Putin says Gazprom may need new capital after China deal

* Putin suggests money could come from gold, forex reserves

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UPDATE 3-Adviser says China considers cap on CO2 emissions, possible turning point in climate talks

* Government adviser raises Chinese proposal to introduce absolute cap from 2016



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WRAPUP 2-Russia grants gas respite but talks tough on Ukraine

* Fierce battle rages all day in east (Adds Russian statement on NATO, updates Luhansk fighting)

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