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The Russian government said it was taken by surprise Tuesday when the rebel leader of a breakaway region of eastern Ukraine proposed the creation of a new nation-state called Malorossiya, or Little Russia.

The head of the self-declared Donetsk Peoples Republic, Alexander Zakharchenko, told reporters that the new country would include his territory and the neighboring self-declared Luhansk Peoples Republic, and that it would eventually become part of a wider union with Belarus and Russia.

"We believe that the state of Ukraine cannot be reinstated the way it used to be, he said.

Russia, which openly sympathizes with the pro-Russia separatists but rejects allegations that it has provided military support, denied any role in the proposal and said it still backed the 2015 peace agreement crafted in Minsk, Belarus, to reintegrate the breakaway territories into Ukraine.

Alexander Ermochenko / European PressPhoto Agency

Alexander Zakharchenko, leader of the self-proclaimed Donetsk People's Republic, speaks in downtown Donetsk, Ukraine, on Jan. 22, 2016

Alexander Zakharchenko, leader of the self-proclaimed Donetsk People's Republic, speaks in downtown Donetsk, Ukraine, on Jan. 22, 2016 (Alexander Ermochenko / European PressPhoto Agency)

The proposal for Malorossiya was nothing more than a personal initiative of the rebel leaders, Kremlin spokesman Dmitry Peskov told reporters.

The idea should be subject to reflection and analysis, but we remain committed to the Minsk accords, he said.

Boris Gryzlov, Russia's envoy to the Minsk talks, remained silent for several hours after the announcement, but later in the day dismissed the idea as nothing more than fodder for public discussion.

This announcement does not have any legal consequences, he told Russian news agencies.

Even the rebel government in Luhansk seemed caught off guard by the proposal to include it in a new country.

Luhansk had not been informed of the plans and we are not willing to consider it as something that needs attention, a representative told the news agency Interfax.

Ukrainian President Petro Poroshenko, however, suggested that Russia was behind the rebel announcement, saying at a news conference in Tbilisi, Georgia, that Zakharchenko is not a political figure, but a puppet transmitting the Kremlin messages.

He promised to bring the eastern regions and Crimea back into Kievs fold.

The conflict in Ukraine began in 2014 after a mass street movement led to the ousting that February of pro-Kremlin President Viktor Yanukovich.

Russia, which criticized the demonstrations as a Western-orchestrated coup, moved troops into the Crimean peninsula, ostensibly to protect its compatriots and Russian speakers from Ukrainian nationalists. But in March 2014, Russia annexed Crimea, and in the regions of Donetsk and Luhansk, pro-Russia separatist militia groups took over government buildings and declared independence from Kiev.

The Minsk peace talks, which were orchestrated by Germany, Britain and France, have stumbled as fighting has continued to flare up in the region. More than 10,000 people have died in the conflict, many of them civilians. Peace talks were scheduled to resume this week.

Zakharchenko made his announcement at a news conference in the city of Donetsk, which he said would be the capital of the new country. He wore fatigues and various medals on his chest.

He presented a newly written constitution for Malorossiya, a map showing all of Ukraine except Crimea, and a flag to represent the new state. The flag was adapted from that of Bohdan Khmelnytsky, a 17th century Cossack leader who led a revolt against Polish rule in Ukraine and later swore allegiance to Russia.

Its not a revolution; its a return to history, Zakharchenko said.

The name Malorossiya comes from the historical name for parts of Ukraine that once made up the Russian empire. By choosing the name, the rebel governments seemed to be replacing Novorossiya, another historical term once used by Russian President Vladimir Putin to describe the southeast territories of Ukraine.

Novorossiya became a concept many rebel leaders and fighters saw as a Kremlin-approved initiative to expand its territories. But Russia distanced itself from the idea as the war raged on, Western sanctions began to hurt its economy and the Minsk agreement came into force.

In Washington on Tuesday, a representative of the State Department who was asked about Malorossiya said: That is something thats certainly an area of concern to us, but beyond that, I dont want to dignify it with a response."

Republican Sen. John McCain of Arizona released a statement blaming the Russian president, saying that the ultimate responsibility for this latest flagrant violation of Ukraine's sovereignty lies squarely with Vladimir Putin's Russia, upon whose leadership, financing, troops and weapons the separatists are entirely dependent.

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Ayres is a special correspondent.

sabra.ayres@latimes.com

Twitter: @sabraayres

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Ukraine's separatists propose a new country: Little Russia. Kremlin denies any involvement - Los Angeles Times

BBC News

ExxonMobil fined by US for Ukraine sanctions violations BBC News Exxon has challenged the finding, calling it "fundamentally unfair". The US imposed sanctions against Russia in March 2014 as Russia annexed Crimea and tension rose in Ukraine. In April 2014, the US added Mr Sechin to the list of people blocked under ... US says Exxon under Tillerson violated Russia sanctions in 2014Reuters ExxonMobil hit with $2m penalty over Ukraine-related sanctionsFinancial Times US fines Exxon $2m for Ukraine-related sanctions breachesBusiness Day (registration) Kyiv Post all 96 news articles »

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ExxonMobil fined by US for Ukraine sanctions violations - BBC News

ByKayla Christopher For The Oklahoman Published: July 20, 2017 5:00 AM CDT Updated: July 20, 2017 5:00 AM CDT

An apartment building on fire in Ukraine on July 16. Soldiers with the Oklahoma Army National Guard deployed to Ukraine rushed into the building and evacuated the third floor before firefighters arrived. [Photo by1st Lt. Kayla Christopher]

LVIV, UKRAINE During a routine morale, welfare and recreation trip, deployed citizen-soldiers of the 1st Battalion, 279th Infantry Regiment, 45th Infantry Brigade Combat Team, found themselves in a situation that put their military and civilian training to good use.

"We were about to head back to base when we saw smoke coming from down the street, so we decided to investigate," said Sgt. Matthew Odom, of Norman, who is assigned to Headquarters Company, 1st Battalion, 279th Infantry Regiment, 45th IBCT.

An apartment building had caught fire.

Odom, along with fellow Thunderbirds Sgt. Nelson Deese, Spc. Vincent Humerickhouse, Spc. Kellar Jackson, Spc. Aaron Moore and Pfc. Kevin Polk, rushed into the burning building and evacuated the third floor before firefighters arrived on the scene.

"We kept asking if there was anyone still in the building, and finally we found someone who spoke English who said that there was," Odom said. "Sgt. Deese and I just gave each other a look; it was like we knew what the other was thinking and we just stormed in."

"Instinctively, we all just ran inside and started getting people out," said Jackson, a native of Watonga. "There was a lot of smoke. It was chaotic and intense."

Jackson said the language barrier made the situation more difficult.

Deese, who serves as a volunteer firefighter in his community of Crowder, said his training as a firefighter and infantryman just kicked in.

"We were knocking on doors and windows trying to get people's attention," Deese said. "They were definitely not aware of the fire."

Once firefighters arrived, Deese made sure his fellow soldiers were safely outside the burning building before he pitched in to help the firefighters, unrolling hose and helping them move equipment upstairs.

"I feel like most soldiers, especially infantrymen, we run to the fight," Deese said. "Not a single hesitation."

Soldiers with the Oklahoma Army National Guard's 279th are deployed to Ukraine in support of the Joint Multinational Training Group-Ukraine, an international coalition dedicated to building the training capacity of the Ukrainian army.

"I'm proud of the actions these soldiers took to ensure the safety of others," said Lt. Col. Bruce Lambeth, commander of the 279th.

"They are true examples of Oklahomans upholding the Oklahoma Standard; in this case, looking after their global neighbors while serving their state and country abroad here in Ukraine."

Kayla Christopher is a 1st lieutenant with the 45th Infantry Brigade Combat Team.

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Oklahoma National Guard soldiers rescue people from burning apartments in Ukraine - NewsOK.com

WASHINGTON/HOUSTON (Reuters) - The United States on Thursday admonished Exxon Mobil Corp for "reckless disregard" of U.S. sanctions in dealings with Russia in 2014 when Secretary of State Rex Tillerson was the global oil company's chief executive, and fined it $2 million.

ExxonMobil said the decision was "fundamentally unfair," and sued the U.S. government in Texas in an effort to overturn the decision.

The fine came after a U.S. review of deals Exxon signed with top Russian oil producer Rosneft weeks after Washington imposed sanctions on Moscow for annexing Ukraine's Crimea region.

Between May 14 and May 23, 2014, top U.S.-based ExxonMobil executives signed eight documents with Igor Sechin, the head of state-run Rosneft, the U.S. Treasury's Office of Foreign Assets Control (OFAC) said in a statement on its website.

ExxonMobil had "demonstrated reckless disregard for U.S. sanctions requirements" by signing the deals with Sechin just weeks after the United States blacklisted him, OFAC said in an unusually lengthy three-page statement laying out its reasoning. (For the Treasury statement, see: bit.ly/2vnvQf2)

The Treasury announced sanctions on Sechin in April 2014 as part of measures to pressure Russia over its intervention in Ukraine, saying Sechin had shown "utter loyalty" to Russia's President Vladimir Putin.

The sanctions prohibit U.S. citizens or those located in the United States from dealing with those on the blacklist, such as Sechin. Rosneft itself is subject to narrower U.S. sanctions that still allow Americans to deal with the company on some transactions.

Tillerson left ExxonMobil to become secretary of state after 10 years at the helm of the global energy power. He is now responsible for U.S. foreign policy, which includes helping to make sanctions decisions.

The State Department referred questions about the fine to ExxonMobil and the Treasury. State Department spokeswoman Heather Nauert told reporters on Thursday that the agency was alerted to the fine on Wednesday.

Though the State Department plays a part in formulating broad sanctions policy, former U.S. officials and sanctions experts said it was unlikely the agency had a role in deciding the fine announced on Thursday.

ExxonMobil had fully complied with guidance from Democratic former President Barack Obama's administration that ongoing oil and gas business activities with Rosneft were permitted, Exxon spokesman Alan Jeffers said in a statement.

The Treasury Department "is trying to retroactively enforce a new interpretation of an executive order" inconsistent with its prior guidance, Jeffers said.

"OFAC's action is fundamentally unfair," he said.

Sechin signed the documents on behalf of Rosneft, Jeffers said.

ExxonMobil also cited a Treasury Department representative's comments in May 2014 that BP Plc Chief Executive Bob Dudley - an American citizen - could continue to participate in Rosneft board meetings so long as they related only to Rosneft's business.

In its statement explaining the fine, OFAC said that the Treasury representative's comments did not address ExxonMobil's conduct.

No White House or Treasury statements asserted "an exception or carve-out for the professional conduct of designated or blocked persons, nor did any materials suggest that U.S. persons could continue to conduct or engage in business with such individuals," OFAC said.

Publicly available guidance on Treasury's website at the time of Exxon's dealings with Sechin said Americans should ensure they do not enter into contracts signed by sanctioned individuals, OFAC said.

By dealing with Sechin, the company "caused significant harm" to U.S. sanctions on Russia, the Treasury said.

Because Rosneft itself is not off-limits to Americans, another company executive could have signed the contract with no sanctions risk to ExxonMobil, said David Mortlock, who was a State Department and White House sanctions official during the Obama administration.

"You could have Sechin standing over the guy's shoulder," said Mortlock, now an attorney at Willkie Farr & Gallagher LLP in Washington. "But the problem here is that it was signed by Sechin himself."

The fine is minor to ExxonMobil, which made $7.84 billion in profit in 2016.

The company has long opposed sanctions on Russia. Tillerson said in 2014 that the company did not support sanctions because they are not effective "unless they are very well implemented."

Nevertheless, in May 2014 Tillerson chose not to attend an oil industry forum in Moscow, instead sending top lieutenant Neil Duffin, who signed an agreement with Sechin to explore for oil in the Arctic Ocean.

The deal came at a time when other oil companies, including BP and Total SA, were clamoring to enter Russia, aiming to tap its vast oil and natural gas reserves.

As the United States and others tightened Russian sanctions, ExxonMobil's ability to operate there dwindled. The company was allowed to finish drilling a well in the Russian Arctic in the fall of 2014 but could not produce oil.

ExxonMobil has since sought permission to operate in Russia. Earlier this year, the Trump administration said it would not let any U.S. company, including ExxonMobil, drill in areas prohibited by U.S. sanctions on Russia.

Reporting by Yeganeh Torbati and Ernest Scheyder; editing by Simon Webb and

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US fines Exxon Mobil over Ukraine-related sanctions violations - Reuters

Since the conclusion of Maidan, politically motivated private security actors operating in parallel with the Ukrainian government have played an integral part in the countrys security landscape. While some have been cooperating with Ukrainian authorities, others experience great friction with the Ukrainian Armed Forces (UAF) and Ministry of Interior Affairs (MIA), undermining the formal security structures of the Ukrainian government. It seems that political and military power have become inseparable at the unit level, with many battalion commanders also being career politicians or parliamentary members.

The term volunteer battalion is common vernacular in the context of post-Maidan Ukraine. While the term may seem straightforward to anyone with a basic familiarity of the conflict in eastern Ukraine, it encompasses a wide range of units active and inactive in the Anti-Terrorist Operation (ATO) zone today. Effectively, these units can be viewed along an axis of patronage, with those relying on the government as the primary patron representing the formal units, and those that rely on civil society representing the independent units.

Frictions with the government and lasting connections to political entitiesa result of a haphazard, and in some instances nonexistent, reorganization effortraise questions about the allegiances of these units. If unchecked, some of these units will erode the legitimacy of the Ukrainian security institutions.

A persistent issue facing Kyiv originates in its own complacency, and to some degree the ambivalence of the Ukrainian people towards security institutions. Since the beginning of the conflict in the Donbas, far-right nationalist militias operating completely independently from the government have been a recurring theme, and while many have demobilized, integrated into the formal security structure or entirely disbanded, some still persist. The two largest groups that represent this phenomenon are the Pravy Sektor Ukrainian Volunteer Corps (DUK) and the Ukrainian Volunteer Army (UDA) militias. While both share a common history, they have come to diverge in how they interact with the government.

In late March 2015, well after illegal groups were issued a general stand-down-and-disarm order, Pravy Sektor was ordered to leave the coastal frontline city of Mariupol and the ATO area. Pravy Sektor, which believed themselves to have an agreement with the Ministry of Defense regarding their presence in the ATO zone, considered the order treacherous. Months later, Pravy Sektor ended up in a shootout with Ukrainian authorities after an extensive standoff. After the standoff between DUK and police in late 2015, Peoples Deputy and former leader of Pravy Sektor Dmitro Yarosh resigned from Pravy Sektor. He took the fifth and eighth DUK battalions with him to form the Ukrainian Volunteer Army (UDA) under his own new political party. Shortly after, DUK disbanded virtually its entire structure in order to carry out an extensive reform. It aimed to organize itself on a small amount of active combat units, with a large reserve force built around the sotni structure.

Units of the Ukrainian Volunteer Army under Dmitro Yarosh and his political party Diya (Action) enjoy an improved relationship with the Ukrainian government compared to DUK. The UDAs two combat battalions and single medical battalion are funded through citizen initiatives, supplying them with everything a light infantry battalion could need. These initiatives are funded by private donations of material support or financial deposits. The UDA has an exceptionally good relationship with official Ukrainian units compared to other independent volunteer units, and will in some cases even invite UAF units onto their bases to conduct joint drills.

Equally interesting is the case of the Organization of Ukrainian Nationalists (OUN) and their volunteer battalions. After a prolonged standoff with the UAFs 93rd Separate Mechanized Brigade in the frontline town of Pisky in 2015, the OUN agreed to relinquish its command of part of its battalion and let it integrate with the formal Ukrainian security structure under the Ministry of Defense. This specific brigade has come to be the destination for a number of other formerly independent volunteer units, such as the Carpathian Sich, a unit with deep connections to the political party Svoboda (freedom). Still, the unit maintains its relationship with the OUN, which is one of the oldest Ukrainian nationalist organizations, and has been ripe with controversy throughout the past century.

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Ukraine Needs to Address Its Paramilitary Problem | The National ... - The National Interest Online