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Ukraine president says most Russian troops have left

September 10, 2014: Ukrainian President Petro Poroshenko, right, talks with Prime Minister Arseniy Yatsenyuk in Kiev, Ukraine. (AP Photo/Andrew Kravchenko, Pool)

Ukraine's president has claimed that most Russian forces have left his country in the latest conciliatory move aimed at stoking a peace campaign that began last week, while the European Union slapped new economic sanctions on Russia.

Reuters reported that Petro Poroshenko told a televised Cabinet meeting that "70 percent of Russian troops have been moved back across the border ... This further strengthens our hope that the peace initiatives have good prospects."

He also said 700 Ukrainian prisoners had been freed from rebel captivity and expressed hope that another 500 would be freed by the end of the week.

Estimates of the number of Russian troops that have taken part in the five-month old Ukrainian conflict have varied, with NATO estimating that at least 1,000 regular forces have been involved. For its part, Moscow has repeatedly denied training or equipping separatist rebels in eastern Ukraine.

Poroshenko added the cease-fire was being tested by "terrorists" who attempted to provoke Ukrainian government forces. Ukraine claims that five servicemen have been killed during the cease-fire, while a civilian also died as a result of shelling in the port city of Mariupol.

On Thursday, two volleys of Grad rocket fire rang out in Ukraine's eastern, rebel-held city of Donetsk. The city council of Donetsk confirmed in a statement there had been multiple explosions during the morning, but reported no casualties.

Poroshenko said government forces are "regrouping" in an effort to defend Ukrainian territory from further attacks by separatists, who succeeded in breaking Kiev's encirclement of Donetsk and Luhansk with a fresh Russian-backed offensive just prior to last week's cease-fire.

New sanctions that the European Union imposed on Russia will further curb access to European capital markets for Russian firms and banks, limit exports of certain high-technology goods and target several officials with travel bans and asset freezes, diplomats told The Associated Press in Brussels.

The sanctions will take effect Friday following their publication in the EU's official journal but will be reversible if the situation in eastern Ukraine improves, four diplomats said independently. They spoke on condition of anonymity pending the official announcement.

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Ukraine president says most Russian troops have left

Ukraine Moves to Exclude Russia Companies From 3G Auction

Ukraine is seeking to prevent Russian companies including OAO Mobile TeleSystems (MBT) from getting licenses to run 3G networks in a planned auction.

The move comes after President Petro Poroshenko yesterday signed legislation allowing restrictions on Russian businesses in Ukraine. The former Soviet republic passed the law as part of measures intended to punish Russia for allegedly supporting a rebellion in eastern Ukraine. Kremlin officials deny involvement in the conflict.

Waging Financial War

The governments position is to prevent Russian companies, including MTS, from getting 3G licenses in Ukraine, Cabinet Minister Ostap Semerak said by phone from Kiev yesterday.

MTS and VimpelCom Ltd. (VIP) together control 80 percent of Ukraines wireless market, according to Moscow-based researcher Advanced Communications & Media.

American depositary receipts of MTS fell 1.3 percent to $18.66 in New York. VimpelCom slid 2.3 percent to $8.56.

Joshua Tulgan, the Moscow-based director for corporate finance and investor relations at MTS, said Ukraines plan to exclude Russian companies from 3G auctions discriminates against their U.S. and European shareholders.

MTS is nearly half-owned by institutional investors around the world, with over 65 percent of our free float owned by investors in the U.S. and U.K., Tulgan said by e-mail yesterday. Any discrimination exercised toward MTS can also be seen as also being directed toward these shareholders.

Bobby Leach, communications director at VimpelCom Ltd. in Amsterdam, said by e-mail that the company wont comment until the 3G auction plans are published.

MTS is the biggest mobile phone company in Russia and second-largest in Ukraine. The company, controlled by Russian billionaire Vladimir Evtushenkov, has invested $4 billion in Ukraine since 2003, Tulgan said. Billionaire Mikhail Fridmans VimpelCom operates Ukraines biggest mobile-phone company.

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Ukraine Moves to Exclude Russia Companies From 3G Auction

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