Sunday 19 October 2014

Ukraine Says It Agrees On Interim Gas Price With Russia

MILAN, Italy -- Ukraine's and Russia's leaders have reached a preliminary agreement on a price for gas supplies this winter but Kiev may need international help to pay, Ukrainian President Petro Poroshenko said on Saturday. 
Poroshenko met Russian President Vladimir Putin in Milan on Friday to discuss the conflict in Ukraine's eastern regions, where pro-Russian separatists are fighting Kiev government forces.

Russia cut off gas supply to Ukraine in mid-June following more than two years of dispute on the price.

Russia said Ukraine had to pay off large debts for previously-supplied gas before it would resume supply.

"(We) reached an agreement," Poroshenko said in an interview with Ukrainian TV channels.

"Until March 31 we will fix the price at $385."

An agreement signed in 2009 by former Prime Minister Yulia Tymoshenko called on Ukraine to pay $485 per 1,000 cubic meters for Russian gas.

Kiev is contesting the contract in a Stockholm arbitration court.  

Poroshenko said that state-run energy company Naftogaz was short of funds to pay for Russian gas partly because of debts created by consumers in eastern Donetsk and Luhansk regions, controlled by pro-Russian separatists.

"We must solve the question of how we cover the deficit of funds for Naftogaz for gas purchases," Poroshenko said.

"We have several different options (including) the International Monetary Fund."
Poroshenko met Russian President Vladimir Putin in Milan on Friday to discuss the conflict in Ukraine's eastern regions, where pro-Russian separatists are fighting Kiev government forces.

Russia cut off gas supply to Ukraine in mid-June following more than two years of dispute on the price.

Russia said Ukraine had to pay off large debts for previously-supplied gas before it would resume supply.

"(We) reached an agreement," Poroshenko said in an interview with Ukrainian TV channels.

"Until March 31 we will fix the price at $385."

An agreement signed in 2009 by former Prime Minister Yulia Tymoshenko called on Ukraine to pay $485 per 1,000 cubic meters for Russian gas.

Kiev is contesting the contract in a Stockholm arbitration court.  

Poroshenko said that state-run energy company Naftogaz was short of funds to pay for Russian gas partly because of debts created by consumers in eastern Donetsk and Luhansk regions, controlled by pro-Russian separatists.

"We must solve the question of how we cover the deficit of funds for Naftogaz for gas purchases," Poroshenko said.

"We have several different options (including) the International Monetary Fund."

Opinion: Ukraine-Russia Diplomacy Is At An Impasse

MILAN, Italy -- Talks in the Ukraine crisis have deadlocked. Russia is refusing to be swayed by the persistent negotiations, and it is difficult to see a way out of the conflict, says DW’s Bernd Riegert. 
The fact that the difficult talks between Ukraine and Russia, in the presence of European leaders, are even still going on is an achievement in itself.

The crisis negotiations on the sidelines of the ASEM summit have not resulted in a breakthrough, or any serious progress.

Both sides are refusing to budge from their positions in the Ukraine conflict.

Ukraine and the EU feel threatened by an aggressive Russia.

The Russian president feels he's being blackmailed by the EU's sanctions.

The other side is always to blame.

And there's no sign of any willingness to compromise.

Russian President Vladimir Putin is feeling strong.

His behavior has clearly demonstrated this to the others at the table in Milan.

He arrived late for a meeting with German Chancellor Angela Merkel, he partied at night with his friend Silvio Berlusconi, and was careful to look indifferent in front of the cameras.

Putin again threatened to restrict gas supplies to Europe.

The EU responded by saying it doesn't need Russia's gas.

Putin is not likely to back away from a showdown.
Then the Europeans would have to prove how long they can stomach rising gas prices.

In Milan, Ukraine and Russia once again committed to the peace plan from Minsk, which calls for a permanent truce in eastern Ukraine.

But, especially coming from Putin, the words rang hollow, as the Kremlin has not exactly been acting quickly to implement the plan.

So far, there has merely been an announcement that Russia would withdraw its troops from the border to Ukraine, but no actual movement.

That's why there cannot be any loosening of European sanctions against Russia.

There were small steps of progress in Milan on certain points, but they do not constitute any significant improvement.

Russia at least appears ready to agree to an OSCE mission to monitor the borders of two regions in eastern Ukraine with drones.

But the details remain more than unclear.

Unfortunately, it looks as though Russia and Ukraine are heading for a second "frozen conflict."

The instability in eastern Ukraine, which is ruled by pro-Russian forces, could become a permanent situation.

People in Crimea have gotten used to the annexation and occupation, and it's not something that can so quickly be changed.
There's a system behind it.

Russia has deliberately plunged all those states in its sphere of influence that lean toward the West or aim to join NATO into "unsolvable" conflicts.

Transnistria in Moldova.

South Ossetia and Abkhazia in Georgia.

And now Crimea and eastern parts of Ukraine.

This rules out NATO membership for these states, because new members cannot be embroiled in territorial conflicts with neighboring countries.

There is no way out of this situation at the moment.

Since there is no military option, the EU only has economic sanctions at its disposal.

Russia, however, controls the flow of oil and gas.

Painful decisions likely await the Europeans.

But a positive result of the Ukraine meeting at ASEM in Milan is the nod to further talks and negotiations.

The actual summit - a meeting of Asian and European leaders - was overshadowed.

European media and politicians focused almost exclusively on the urgent Ukraine conflict.
Many Asian representatives didn't understand this.

An opportunity for dialogue with them was missed, or at least largely neglected, here.

Ground Zero In The Battle For Ukraine: Donetsk Airport

DONETSK, Ukraine -- The airport here in this battle-scarred region of eastern Ukraine seems oblivious to the cease-fire brokered six weeks ago. 
The battles between Russian-backed rebels and Ukrainian forces rage on at a place that has taken on greater significance in Ukraine with each passing day.

It's strategically important, to be sure, but interviews with the rebels and Ukrainian forces waging this war make it clear that Donetsk is about much more.

Cmdr. Mikhael "Givi" Sergeyevich Tolstikh, a rebel commander leading the fight around the Donetsk airport, says his forces will "hold the line" against Ukrainian forces whom he claimed were preparing an assault to retake the facility.

"My main aim is to hold the defense of the airport, not to attack, just hold the line," Tolstikh said in an interview with USA TODAY on Friday at the pockmarked apartment building his forces are using as a command post.

It's about a mile from the airport's main terminal.

The building sits in a residential neighborhood known as Kievski, surrounded by single-family homes and a playground now strewn with shards of glass, rubble, spent artillery shell casings and boxes of ammunition.

Pro-Russian rebels have been fighting Ukrainian forces here since May 26, when Ukrainian commandos retook control of the airport with support from fighter jets and helicopter gunships.
Those forces have since gained legendary status in the rest of Ukraine, where they're known as "Cyborgs."

The moniker comes from an intercepted rebel radio transmission in which a fighter spoke of their perseverance despite repeated attacks.  

The rebel leadership signed a cease-fire agreement with Ukraine on Sept. 5 in the Belarussian capital, Minsk, but the sound of shells landing near the rebel command post and the boom of outgoing artillery made clear that no cease-fire was being observed at this location.

Ukrainian officials extol their fighters at the airport as besieged heroes preventing a staging point for future attacks that would threaten the rest of the country.

Tolstikh says the airport has gained symbolic importance to Ukraine because fighting there has lasted so long.

The rebels have retaken the airport, he said, but Ukrainian forces continue to fire howitzer cannons, mortars and tanks from constantly changing positions in a thicket nearby.

He also said Ukraine has been positioning hundreds of troops in surrounding cities — 857 to Peskil and 460 to Avdeevka — in preparation for an assault to retake the facility.
The Ukrainian government says its forces continue to hold the airport, or part of it.

Tostikh's claims about a pending government assault could not be verified.

Despite Ukrainian reports of multiple rebel attempts to take the airport, Tostikh said that since the cease-fire deal, his forces have only responded to government shelling in kind.

"We're defending this place not because of the importance of the airport but because people here want to live in peace, without shelling," he said.

Olexander Motsyk, Ukraine's ambassador to Washington, said the airport is of strategic importance to the rebels, whom he said would bring combat aircraft to Donetsk if they could.

"They (rebels) hope Russia will give them aircraft so they can have an air force there," Motsyk said.

"We observe the cease-fire and do not shell positions of rebel forces except when they fire on our positions."

Yuriy Lutsenko, the president of Ukrainian President Petro Poroshenko's parliamentary bloc, said rebels could use the airport and the railway hub in nearby Debaltseve "to secure complete control of the region," according to a report by Kiev media outlet Ukraine Today.
Debaltseve is a railway hub connecting the rebel strongholds of Luhansk and Donetsk, and the airport could serve as a base for future offensive operations and an air bridge to Russia, Lutsenko said.

Asked about a potential rebel air force and future plans, Tolstikh laughed.

"Russian planes and aircraft can land here and they will, for sure," he said.

Right now, the control tower is in ruins and there's no ground support, but the railroad has already started bringing non-military goods to Donetsk, he said.

So "the worries of the Ukrainian government are right," he said.

"Our task for now is to fight back for territory that used to be under our control."

Despite the shelling, which can be heard as distant booms most afternoons in downtown Donetsk, and the destruction all around them, Tolstikh and his men appeared in good morale as they smoked cigarettes and joked.

"Everything is under control, so we're not worried," he said.
As he spoke, a small blue van traveled from the outpost to the airport with food and supplies for rebel troops there.

Outside, a group of rebels sat around a small campfire heating pots of water for tea.

Many wore ballistic vests and most carried assault rifles.

Two burned trucks sat near the command post building.

Nearly every house was damaged by shrapnel or bullets, and power lines, tree limbs and shards of glass lay strewn about on every road and yard in sight.

Stacks of ammunition cases, food and other supplies made it seem as if the fighters are prepared for a prolonged stay.

A commander called "Serge," wearing a helmet and an armored vest loaded with multiple rifle magazines, exchanged hugs with some comrades and told them of "really heavy" shelling at the airport Thursday.

One shell went through three thick walls and killed a rebel soldier, he said.
Nadezda Panasyk, 75, the only civilian seen who was not a member of the press, was not happy with the fighters' presence.

She'd been living in the building they now use as a command post since the airport fighting began because, she said, she had no relatives and no place to go.

Panasyk prayed quietly as sporadic shelling started hitting the neighborhood.

In one hand she carried cut flowers and in the other a bag of apples from her neighbors' trees, which she'd been using for sustenance.

She walked past a group of fighters, sat near a swing set, and cried.  

"All the houses are almost destroyed, what for?" she said.

Panasyk said her father fought in three wars and died in World War II.
To the fighters around her, she said:

"You're also destroying. You're also killing. Who are you protecting?"  

One replied: "We're protecting our Motherland."

Sergey "Knas" Knazhyev, a gray-haired fighter with a Kalashnikov rifle and a friendly smile, said he joined the fight after his home in Maryanka was destroyed by Ukrainian artillery fire.

Knazhyev said he joined the fight not for money, but for an idea: "to have peace here without shelling."

When asked why the rebel forces don't lay down their arms and accept amnesty and Ukrainian rule, according to the terms of the cease-fire, his smile became a menacing glare.

"It's not right when the Ukrainian government tells people where to live and where not," he said.

"I don't go to Kiev and tell them where to live."  


Then he walked off.

Sunday 12 October 2014

Ukraine Leader Says Expects Tough Talks With Putin Next Week

KIEV, Ukraine -- Ukrainian President Petro Poroshenko said on Saturday he expected planned talks with Russia's President Vladimir Putin next week in Italy to be difficult but said Moscow had a crucial role to play in bringing peace to his country. 
Kiev and its Western backers accuse Moscow of backing a pro-Russian separatist revolt in eastern Ukraine by providing troops and arms.

Russia continously denies the charges but says it has a right to defend the interests of the region's Russian-speaking majority.

The Kremlin has said Putin and Poroshenko may hold talks on the sidelines of a summit of Asian and European leaders in Milan on Oct. 16-17.

"I don't expect the talks will be easy. I'm used to this, I have a lot of experience of conducting very difficult diplomatic talks. But I'm an optimist," Interfax Ukraine news agency quoted Poroshenko as telling reporters.

Poroshenko said some European leaders might also join his talks with Putin.

Kremlin aide Yuri Ushakov has said a "Normandy-style meeting" could not be ruled out - a reference to talks in France in June involving Putin, Poroshenko and the leaders of Germany and France.

"The key and main question is peace. Russia's role in the issue of providing peace, as you understand, is difficult to overestimate," Poroshenko said.
"And today we raise the issue of moving from declarations to concrete steps."

Putin and Poroshenko are known so far to have met twice since the Ukrainian leader's election in May, firstly in Normandy and then in the Belarussian capital Minsk in August when they agreed on the need for a ceasefire between Kiev's forces and the pro-Russian rebels in eastern Ukraine.

GAS DEAL EYED

A ceasefire began on Sept. 5 and has broadly held despite frequent violations, especially around the airport of Donetsk, the biggest city of eastern Ukraine.

The European Union and the United States have imposed economic sanctions against Russia over the conflict in Ukraine, where Moscow has also annexed the Crimea peninsula.

In retaliation, Russia has banned most Western food imports.

The United Nations said on Wednesday the death toll from the conflict in eastern Ukraine now stood at more than 3,660 people.

Poroshenko also said on Saturday he hoped to make "significant progress" in Milan on resolving Ukraine's long-running gas pricing dispute with Russia.
Russia shut off gas deliveries to Ukraine in June over what it said were more than $5 billion in unpaid bills and Ukraine faces a possibility of energy shortages this winter if no deal is reached, risking a replay of the disruptions to Europe's gas supplies seen in 2006 and 2009.

"We believe that Ukraine's proposals are absolutely clear, concrete and justified. We are sure that we are significantly closer to solving this issue," he told reporters.

Separately, Russian Foreign Minister Sergei Lavrov and U.S. Secretary of State John Kerry are expected to discuss the situation in Ukraine at a meeting in Paris on Oct. 14.

Poroshenko, whose country holds parliamentary elections later this month, has faced some domestic criticism over elements of a peace plan agreed with Russia, especially his offer of autonomy to rebel-held regions of eastern Ukraine.

Interfax reported late on Friday that Poroshenko had sacked one of those critics, Serhiy Taruta, a billionaire businessman, as governor of the Donetsk region.

Poroshenko has appointed in Taruta's place as governor Oleksander Kikhtenko, a former head of interior ministry forces

Rebel Commander Wages Fight To The Death For East Ukraine Airport

Ukraine Leader Says Expects Tough Talks With Putin Next Week


KIEV, Ukraine -- Ukrainian President Petro Poroshenko said on Saturday he expected planned talks with Russia's President Vladimir Putin next week in Italy to be difficult but said Moscow had a crucial role to play in bringing peace to his country. 
Kiev and its Western backers accuse Moscow of backing a pro-Russian separatist revolt in eastern Ukraine by providing troops and arms.

Russia continously denies the charges but says it has a right to defend the interests of the region's Russian-speaking majority.

The Kremlin has said Putin and Poroshenko may hold talks on the sidelines of a summit of Asian and European leaders in Milan on Oct. 16-17.

"I don't expect the talks will be easy. I'm used to this, I have a lot of experience of conducting very difficult diplomatic talks. But I'm an optimist," Interfax Ukraine news agency quoted Poroshenko as telling reporters.

Poroshenko said some European leaders might also join his talks with Putin.

Kremlin aide Yuri Ushakov has said a "Normandy-style meeting" could not be ruled out - a reference to talks in France in June involving Putin, Poroshenko and the leaders of Germany and France.
"The key and main question is peace. Russia's role in the issue of providing peace, as you understand, is difficult to overestimate," Poroshenko said.

"And today we raise the issue of moving from declarations to concrete steps."

Putin and Poroshenko are known so far to have met twice since the Ukrainian leader's election in May, firstly in Normandy and then in the Belarussian capital Minsk in August when they agreed on the need for a ceasefire between Kiev's forces and the pro-Russian rebels in eastern Ukraine.

GAS DEAL EYED

A ceasefire began on Sept. 5 and has broadly held despite frequent violations, especially around the airport of Donetsk, the biggest city of eastern Ukraine.

The European Union and the United States have imposed economic sanctions against Russia over the conflict in Ukraine, where Moscow has also annexed the Crimea peninsula.

In retaliation, Russia has banned most Western food imports.

The United Nations said on Wednesday the death toll from the conflict in eastern Ukraine now stood at more than 3,660 people.

Poroshenko also said on Saturday he hoped to make "significant progress" in Milan on resolving Ukraine's long-running gas pricing dispute with Russia.
Russia shut off gas deliveries to Ukraine in June over what it said were more than $5 billion in unpaid bills and Ukraine faces a possibility of energy shortages this winter if no deal is reached, risking a replay of the disruptions to Europe's gas supplies seen in 2006 and 2009.

"We believe that Ukraine's proposals are absolutely clear, concrete and justified. We are sure that we are significantly closer to solving this issue," he told reporters.

Separately, Russian Foreign Minister Sergei Lavrov and U.S. Secretary of State John Kerry are expected to discuss the situation in Ukraine at a meeting in Paris on Oct. 14.

Poroshenko, whose country holds parliamentary elections later this month, has faced some domestic criticism over elements of a peace plan agreed with Russia, especially his offer of autonomy to rebel-held regions of eastern Ukraine.

Interfax reported late on Friday that Poroshenko had sacked one of those critics, Serhiy Taruta, a billionaire businessman, as governor of the Donetsk region.

Poroshenko has appointed in Taruta's place as governor Oleksander Kikhtenko, a former head of interior ministry forces, Interfax said.