Archive for December, 2014

Ukraine president signs law abolishing neutral, non-aligned status

KIEV, Ukraine, Dec. 29 (UPI) -- Ukrainian President Petro Poroshenko signed a law Monday that abolishes the country's neutral, non-aligned status, and commented on the possibility of future NATO membership.

"I think it was a strategic and fundamental mistake in 2010, when Ukraine acquired the non-aligned status," Poroshenko said at the signing. The status, adopted under pressure from Russia, kept the country from entering military alliances. "Having done that, Ukraine has destroyed its Armed Forces," the president noted.

Ukraine's Parliament voted Dec. 23 overwhelmingly in support of abolishing the non-aligned status. Prior to the vote, Foreign Minister Pavlo Klimkin said the change "will lead to integration in the European and the Euro-Atlantic space" and away from Russian influence.

When asked when Ukraine planned to hold a referendum on NATO membership, Poroshenko said that Ukraine must first comply with NATO and European Union criteria.

"When Ukraine will meet these criteria," which the president estimated would be in the next five to six years, he said "the people of Ukraine will decide on NATO membership."

Ukraine's latest move away from Russian influence comes as the Russian economy shows further signs of a pending recession.

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Ukraine president signs law abolishing neutral, non-aligned status

Ukraine economy shrank 7.5% in 'worst year since WWII'

Kiev (AFP) - Ukraine's central bank chief on Tuesday said the strife-torn country's economy contracted by 7.5 percent and inflation soared in a year more painful than any since World War II.

Valeria Gontareva added however that the pro-Western leaders who rose to power in Kiev after the February ouster of a Moscow-backed president were optimistic about the chances of a gradual improvement next year and actual growth in 2016.

Gontareva's comments came a day after parliament approved an austerity budget that should help unlock emergency assistance from the International Monetary Fund and other global lenders within the next few months.

The central bank head -- criticised in the media for following IMF advice and allowing the hryvnia currency to depreciate by about 50 percent -- said the annual inflation rate had reached 21 percent by the end of November.

"No matter how sad it may sound, we have to say things as they are: our GDP fell by 7.5 percent and the currency's devaluation reached 50 percent," Gontareva said.

The government had earlier projected that the economy would shrink by up to five additional percentage points in 2015.

Gontareva confirmed the figure but also cautioned that inflation next year may reach 18 percent -- above the 13-percent target because of the government's decision to revoke subsidies and raise utility tariffs.

"Our country has not lived through such a difficult year since at least World War II," Gontareva told reporters.

"I think that what we have experienced this year will never happen again. Without question, we are looking forward to 2015 with optimism."

- Pinning hopes on IMF -

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Ukraine economy shrank 7.5% in 'worst year since WWII'

Ukraine crisis escalates as US, Europe hit Russians with sanctions

Russian soldiers march towards residential buildings near the Ukrainian marine military base at Perevalnoye in Crimea. Approximately 1000 Ukrainian marines are trapped inside the base. Photo: Kate Geraghty

Washington: The international crisis over Ukraine escalated sharply as the United States and the European Union imposed sanctions on senior Russian political and military figures and Russian President Vladimir Putin signed a decree recognising the Ukrainian region of Crimea as an independent state.

Both actions were taken in response to Sunday's referendum in Crimea, where a reported 97 per cent of voters said they wanted to become part of Russia. The Obama administration said the vote was rigged and discounted it as illegal.

On Tuesday, Mr Putin informed the Russian parliament of Crimea's application to join the Russian Federation, the first step to annexation, a move that US and EU leaders have said would result in further punishment designed to cripple Russias economy.

People wave Russian flags in Lenin Square to celebrate the Crimean referendum in Simferopol on Sunday. Photo: Kate Geraghty

The last Soviet leader, Mikhail Gorbachev, who is reviled in Russia, endorsed Crimea's move, telling Interfax that its independence "should be welcomed and not met with the announcement of sanctions"

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"If until now Crimea had been joined to Ukraine because of Soviet laws that were taken without asking the people, then now the people have decided to rectify this error," Mr Gorbachev said.

Beyond Crimea, Mr Putin has defied Western demands that he stop military exercises on Ukraine's eastern and southern borders.

"Further provocations will achieve nothing except to further isolate Russia," US President Barack Obama said in a Monday morning statement announcing sanctions against seven Russian and four Ukrainian officials.

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