The simple answer is "because he has his back to the wall" ! He is fighting for his political life and he is frightened of losing his grip on Ukraine !
By denying everything he gains time, to continue doing what he can in Ukraine and to protect his good reputation in Russia !
Putin has made some mistakes in recent months. It started by obliging the Russian President of Ukraine, Viktor Yanukovitch, to drop procedures to join the EU and instead pursue Bail-out ties with Russia. This led directly to civil disturbances in Ukraine and Yanukovitch fled, never to be seen again in Ukraine !
Putin stole Crimea from Ukraine as compensation.
Since then Putin has been "mealy-mouthed" about all that concerns Ukraine. His real dream is still to claw back Ukraine under Russian domination. Whatever he now says cannot be believed without a great deal of caution.
Currently there is evidence everywhere that Russian troops and armaments are operating in Eastern Ukraine. Putin denies this point blanc. On the other hand he, the competent expert, suggests that a solution for Eastern Ukraine must now be found and quickly ! He wants certain Regions to become "independent" of rule by the democratically elected Kiev government !
Is this not what Russia managed to do after the Second World War, when Germany was carved up into four Sectors ? The Russian sector lasted for 41 years until 1990 ! He knows because he worked as a KGB officer in Dresden in the 1980s.
Another problem Putin and Russia are facing are the effects of sanctions applied by the West to force Putin to stop interfering in the internal affairs of Ukraine. The Commercial effects can now be seen by Russian shoppers. The Financial constraints will also be visible because Oligarchs have transferred hundreds of billions of dollars into Western Banks. Together with the costs of the war efforts, Russia will very soon be bankrupt despite the Gas exports it could make !
Putin is gambling and dicing with the future of Russian citizens, but he will continue to deny everything staunchly !
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