Ukraine, pro-Russian rebels to restart peace talks
Source: AP/de
KIEV: Ukraine's pro-European leaders and Kremlin-backed rebels agreed on Wednesday (Dec 17) to hold long-delayed peace talks, as Russia reeled from a currency crisis and faced still more sanctions from the West.
Sunday's meeting in the Belarussian capital Minsk was announced hours after German Chancellor Angela Merkel placed a late-night call to Russian strongman Vladimir Putin. Their first reported exchange in weeks was later joined by Ukrainian President Petro Poroshenko and his French counterpart Francois Hollande.
Western powers have noted a recent diplomatic softening from Russia that coincides with the onset of the most severe and potentially long-lasting crisis of Putin's 15-year rule.
The rouble's white-knuckle plunge in value has set off talk of a panicked bank run,directly imperilling the stability Putin espoused and Russians valued after the mayhem of the early post-Communist years.
Read more: http://www.channelnewsasia.com/news/world/ukraine-pro-russian/1536122.html
bemildred
(90,061 posts)Russia has no plans to annex war-torn eastern Ukraine, whose fate is for Ukrainians to decide, Russian Foreign Minister Sergei Lavrov said.
"We are not suggesting federalization [of Ukraine], we're not suggesting autonomy," Lavrov said in an interview to France-24 television channel aired Tuesday.
"It's for Ukrainians to decide," the minister said in an English-language interview.
Lavrov explicitly advocated Ukraine's federalization in March, before a pro-Russian insurgency broke out in the eastern Donetsk and Luhansk regions.
http://www.themoscowtimes.com/news/article/lavrov-russia-not-pushing-for-ukraine-s-federalization/513544.html
bemildred
(90,061 posts)The European Union is set to tighten sanctions on the Crimea region annexed by Russia from Ukraine in March.
New sanctions will target Russian oil and natural gas exploration in the Black Sea and are expected to be announced in coordination with similar measures from the United States.
The measures, which will also prohibit any EU citizen from buying or financing companies based in Crimea, are set to be agreed and announced at an EU summit on Thursday and Friday.
The latest draft of the statement to be revealed by EU leaders says the measures will enhance "the Union's policy of not recognising the illegal annexation of Crimea," according to Reuters news agency.
http://www.ibtimes.co.uk/eu-widen-sanctions-illegally-annexed-crimea-target-russian-oil-gas-exploration-1480002
bemildred
(90,061 posts)BRUSSELS - The first EU summit chaired by Donald Tusk, the new EU council president, already has a nickname: Coke Light.
The term was coined by Liberal leader Guy Verhofstadt, a former Belgian Prime Minister, who at one point was touted for the EU commission presidency.
His criticism: the draft four-page text for the summit conclusions - circulated among ambassadors ahead of the meeting - is too short and too general. Last year in December, the summit conclusions were 26 pages long.
The current draft includes an endorsement for Jean-Claude Junckers 315bn investment plan. But the contentious points - such as whether countries will have a say on the selection of the projects, and how project spending will fit into deficit and debt calculations - have been omitted.
http://euobserver.com/institutional/126970
bemildred
(90,061 posts)KIEV (Reuters) - The European Union's foreign policy chief said on Wednesday that she and Ukrainian President Petro Poroshenko had detected signs of greater willingness from Russia to resolve the crisis in Ukraine's pro-separatist eastern territories.
But Poroshenko balanced this judgment by saying Ukraine was in a virtual state of war with Russia and he pledged to work to integrate his country with "Euro-Atlantic security", a clear reference to the U.S.-led NATO alliance.
The cautiously-worded comments of the EU's Federica Mogherini echoed those of U.S. Secretary of State John Kerry, who on Tuesday said Russia has made constructive moves recently towards reducing tensions in Ukraine, where more than 4,700 people have been killed in the pro-Russian uprising since April.
"We shared the impression that there might be some elements that could make us think that there might be some more willingness to solve the conflict on the Russian side, on President (Vladimir) Putin's side," said Mogherini.
https://in.news.yahoo.com/eus-mogherini-says-detects-willingness-russia-resolve-ukraine-164006626.html
bemildred
(90,061 posts)Russias wealthiest have been left somewhat poorer by a worsening outlook for the economy.
The countrys 20 richest people have been left $10bn (£6.4bn) worse off, according to Bloomberg analysis, as their assets have been struck by the crisis in Ukraine and falling oil prices.
The roubles value has more than halved against the dollar since the beginning of the year, as ongoing uncertainty and sanctions have resulted in tremendous capital flight.
The Central Bank of Russia (CBR) now expects capital outflows to reach $130bn this year.
http://www.telegraph.co.uk/finance/economics/11299088/The-Russian-billionaires-burned-by-economic-squeeze.html
bemildred
(90,061 posts)Shale gas was supposed to be Ukraines ticket to greater energy independence from Russia. Chevron Corp. (CVX)s decision to pull the plug has smashed those hopes.
The second-largest U.S. energy producer will pull out of an agreement for exploring the Oleska field in western Ukraine, a government official said this week. It was the final blow to the countrys dream of becoming a big shale-gas producer after Royal Dutch Shell Plc (RDSA) retreated earlier this year from a similar deal in eastern provinces riven by a bloody war with pro-Russian separatists.
While Chevron can walk away unscathed, for Ukraine its another blow to the prospects of reviving a chaotic economy that remains dependent on Russia, a country it claims to be in armed conflict with. Already weighed down by the war thats killed more than 4,600 people and teetering on the verge of default, Ukraine was counting on foreign capital to develop its domestic gas resources.
Foreign investment will start to flow only if there is a healthy, predictable investment environment based on the rule of law, said Ulrich Benterbusch, managing director at German energy agency Dena. This includes drastic measures to reduce the endemic corruption.
http://www.bloomberg.com/news/2014-12-17/chevron-shale-exit-shreds-ukraine-s-hope-of-energy-independence.html
bemildred
(90,061 posts)A claim by Russias Gazprombank on about 40 percent of the gas in Ukraine storage is set to be foiled as state-run NAK Naftogaz Ukrainy says it has only a fraction of the fuel.
Gazprombank claims the 5.68 billion cubic meters of gas as backing for a $842.5 million loan to chemical producer Ostchem Holding Ltd. controlled by Ukrainian billionaire Dmitry Firtash.
Firtash was detained this year in Vienna on a U.S. warrant for charges including bribery, which he denies. Gazprombank has demanded early repayment of the loan by Dec. 30 because of Ostchems inability to meet its obligations, the Russian lender said on Dec. 15.
Companies that are part of Ostchem store some gas in the underground storage of Naftogazs transit unit Ukrtransgaz, the subsidiary said late yesterday in an e-mailed statement. The residual amount of gas belonging to those companies are strictly recorded after their requests have been met.
http://www.bloomberg.com/news/2014-12-17/gazprombank-claim-thwarted-as-naftogaz-says-gas-isn-t-in-ukraine.html
DeSwiss
(27,137 posts)bemildred
(90,061 posts)amandabeech
(9,893 posts)which are costing them rubles and from which they are getting nothing, but to hang onto Crimea for their military bases.
Russia is in a bind. The oil price is their real problem, but if they can get out from under sanctions it would certainly help them.
But can they hold on to Crimea and still do that?
This seems a bit of an about-face considering it was just a couple of days ago when a Russian warplane with its transponder turned off got in the middle of civilian air traffic over southern Scandinavia.
It seems that Medvedev's name has been mentioned a bit more in the last couple of days, too.
It should be a fascinating few weeks, at least.
bemildred
(90,061 posts)I think the collapse of the Ruble woke some people up. Lavrov's comments WERE interesting, a change of tone, no more federalism. But a lot of rich people in the West are a lot poorer now too. It looks like a giant game of chicken to me, economic MAD. They are roiling the dice, all of them: Putin, the EU, Kiev, and US. And the Chinese are standing over there watching for when it's time to pick up the pieces.
The collapse of oil has thrown a real monkey wrench into the dispute too. The Saudis economic warfare.
I do see Medvedev a lot more lately. He's the good cop.
Yeah, it's the end of the year, the end of this Congress, it's going to be busy.
amandabeech
(9,893 posts)I understand that Societe General and one of the larger Austrian banks are holding a lot of Russian paper--not sure if it is commercial or governmental.
The Saudis really want to maintain their market share and, perhaps, hurt Iran and the Shias running Iraq. Everybody else, including us, the Russians, the Venezuelans and the Mexicans are just collateral damage. I doubt Obama can do anything to appease the Saudis except to directly attack Assad and Iran, which I don't think Obama wants to do no matter how much screaming comes from the Republican dominated oil provinces.
Some think that today's Cuban opening has a lot to do with increasing problems in Venezuela and Russia, Cuba's patrons. When oil is at $60, neither country can afford to help out Cuba.
Mexico benefits from high oil prices as well. Mexico's economy is more balanced now than it was 20 years ago, but Pemex is still a big deal. How well Mexico can weather $60 oil is another question.
Medvedev is indeed the good cop, and he's been on the outs, at least publicly, with Putin for some time. You have to wonder what he's been up to and who has been talking to him.
bemildred
(90,061 posts)About the Saudis economic war and Obama's Cuba opening I would say the same thing: Like any good strategy, it works in many ways.
bemildred
(90,061 posts)We are living in an era of revolutions gone awry. Powerful protests have proven effective at toppling statues of leaders but helpless at tearing out their foundations and building something better.
This latter step is the daunting challenge facing Ukraine today after parliamentary elections in late October.
---
Ten years ago, Ukraine was in a similar position hoping to reform itself after kicking the very same man, Viktor Yanukovych, out of the presidency in the so-called Orange revolution of 2004. Yet after a few years of disappointing reformist government, Ukraine found itself back where it started. To break the cycle, the newly elected officials will need to learn from the past and devolve power from themselves and their corporate allies.
http://fpif.org/whither-ukraines-revolution/?utm_source=rss&utm_medium=rss&utm_campaign=whither-ukraines-revolution
elias49
(4,259 posts)Just got home and will dig in.
Meanwhile, very happy to..
K&R
Things are happening.
bemildred
(90,061 posts)MOSCOW (Reuters) - Russia's ruble strengthened sharply on Wednesday after dramatic falls on the previous two days as the government pressured exporters not to hoard foreign-currency earnings and the central bank announced new measures to support financial stability.
The ruble was around 9 percent firmer against the dollar in volatile trading, with the market also boosted by central bank plans to ease concerns over approaching external debt repayments by Russian firms and stabilize the ruble.
Traders also saw targeted sales of foreign currency by exporters, in part because of upcoming monthly tax payments.
At 1030 ET, the ruble was up 9 percent at 61.50 rubles per dollar on the Moscow Exchange and was around 10 percent stronger versus the euro at 76.55.
http://ca.reuters.com/article/businessNews/idCAKBN0JV0L520141217
bemildred
(90,061 posts)BERLIN The turmoil in the Russian economy appears to be encouraging Moscow to seek compromise in the crisis over Ukraine, although President Vladimir V. Putin has proved so erratic in past months that Western leaders are wary of proclaiming progress, officials and analysts said Wednesday.
On Sunday and again on Tuesday night after days in which the ruble gyrated wildly, raising the possibility of a broader financial crisis that could saddle Mr. Putin with deeper economic and political problems the Russian president spoke by phone with his Ukrainian, German and French counterparts. Statements released afterward in all four capitals talked of moving quickly to cement a cease-fire broadly observed since last week in eastern Ukraine.
Mr. Putin may make his intentions clearer at his annual news conference on Thursday. European leaders will meet later Thursday and Friday in Brussels amid growing indications that pro-Russian separatists and Ukrainians could meet Sunday or Monday for talks under European auspices.
One wild card is the threat by the United States to move ahead with a new round of sanctions against Russia. The White House said Tuesday that President Obama, despite misgivings about falling out of step with European allies and complicating the talks, would sign newly passed legislation expanding the financial sanctions and providing additional military aid to Ukraine.
http://www.nytimes.com/2014/12/18/world/europe/russias-economic-turmoil-could-push-putin-to-close-deal-on-ukraine.html?partner=rss&emc=rss&_r=0