Archive for October, 2014

Ukraine Deal Gives Little Relief as War Set to Rumble On

Within hours of Ukraines gas deal with Russia, fighting flared up in the countrys easternmost regions, highlighting the challenges in bringing peace to the country after a year of upheaval.

While the pact brokered by the European Union is designed to keep homes warm through the winter, rebels still hold large chunks of the countrys east and are planning a controversial election for Nov. 2. Crimea remains under Russian control and the Kremlin, bristling at an EU agreement Ukraine signed this year, is testing NATO with daily airspace violations.

The next flashpoint may be the vote in the self-proclaimed republics of Donetsk and Luhansk, which sparked a diplomatic row between the EU and Russia. The separatists are pushing ahead even as daily clashes test a truce signed Sept. 5. The insurgents violated the wobbly cease-fire 45 times in the past 24 hours, according to the Defense Ministry in Kiev.

The separatist elections planned for Nov. 2 matter a lot more in terms of the big picture than the gas deal, Arkady Moshes, the head of the EUs Eastern Neighborhood and Russia research program at the Finnish Institute of International Affairs, said by phone. The overall conflict is in a state where too many parties simply dont want to have any solution.

Ukrainian President Petro Poroshenko called on his parliamentary party today to support Arseniy Yatsenyuk as Prime Minister, saying the country needs to be united as never before following Oct. 26 elections.

We have to make the first proposal, to show that we take very responsibly the formation of the government and the content of the coalition agreement, Poroshenko told newly elected representatives in Kiev.

The International Committee of the Red Cross, in a statement sent by e-mail, said today that despite the cease-fire in eastern Ukraine, acts of indiscriminate shelling and security incidents continue to put civilians at risk.

The approaching winter makes the situation of both residents and displaced people even more difficult, according to the statement. The ICRC remains committed to helping people affected by conflict.

Russian President Vladimir Putin may be telegraphing his intentions with his fighter jets, which forced the North Atlantic Treaty Organization to scramble its own warplanes several times this week. The alliance has tracked more than 100 Russian aircraft so far this year, more than triple the number in 2013, Secretary General Jens Stoltenberg said yesterday.

The airspace interceptions around Europe in the past few days show that Russia is willing to challenge NATO and has no interest in de-escalation, Stefan Meister, an analyst at the German Council of Foreign Relations in Berlin, said by phone. I dont see this gas deal as a step forward.

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Ukraine Deal Gives Little Relief as War Set to Rumble On

Russia-Ukraine gas deal keeps Europe warm

Germany, Turkey and Poland were the biggest importers of Russian gas in Europe in 2013, according to Gazprom.

LONDON (CNNMoney)

The two countries signed a deal late Thursday worth about $4.6 billion that will see Russia deliver gas to Ukraine from now until the end of March 2015.

The temporary deal is critical for European businesses and households since Europe relies on Russia for more than 30% of its gas, and half of that is pumped through Ukraine.

In the past, when Ukraine and Russia had a gas dispute and Russia cut back on supplies, parts of Europe suffered shortages as Ukrainians siphoned off European-bound gas for their own uses.

Germany, Turkey, Poland, France and Italy are particularly dependent on Russian gas. Russian gas imports account for about 44% of Germany's annual consumption.

This summer, Russia cut off gas supplies to Ukraine as the two countries fought over prices and unpaid bills.

Related: Oil trades at $80, but Russia is budgeting for $100

"This breakthrough will not only make sure that Ukraine will have sufficient heating in the dead of the winter. It is also a contribution to the de-escalation between Russia and Ukraine," said Gnther Oettinger, a key official in the European Commission who helped broker the latest gas deal.

Relations between Russia and Ukraine are still tense ever since Russia annexed Crimea earlier this year. The situation has improved as the two sides have held many talks, but Russia is still being accused of working to destabilize parts of eastern Ukraine.

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Russia-Ukraine gas deal keeps Europe warm

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