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Ukraine Rebels Renew Call for Independence as Truce Ends

Ukrainian President Petro Poroshenko, center, examines an equipment on a base of border… Read More Photographer: Genya Savilov/AFP/Getty Images Ukrainian rebels in the Donetsk region said a month-old truce is all but dead and renewed calls for independence as fighting intensified, claiming 10 lives. “There is no truce, buffer zones are non-existent,” the deputy premier of the self-proclaimed Donetsk People’s Republic, Andrei Purgin, said via Russian state news service RIA Novosti. Purgin said some estimates put the number of deaths from fighting in the Donetsk region alone at 9,000 in the past six months, though the figure is probably closer to 4,000 or 5,000. That compares with a United Nations estimate of 3,660 deaths and 8,756 injuries in all of eastern Ukraine . At least 331 of those fatalities ocurred after the belligerents agreed to a cease-fire in Minsk, Belarus, on Sept. 5, the UN said yesterday. “Such casualties […]

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U.N.: Ukrainian gas crisis takes humanitarian toll

Ukrainian gas situation taking humanitarian toll, U.N. report finds. UPI/Ivan Vakolenko GENEVA, Switzerland, Oct. 8 (UPI) — Energy issues in eastern Ukraine are taking a humanitarian toll as residents grow concerned about supplies for the coming winter, a U.N. report said Wednesday. The U.N. High Commissioner for Human Rights published a report on the situation in eastern Ukraine . "For almost half a year, residents of the areas affected by the armed conflict have been deprived of their fundamental rights to education, to adequate healthcare, to housing and to opportunities to earn a living," U.N. High Commissioner for Human Rights Zeid Ra’ad al-Hussein said in a statement. "Further prolongation of this crisis will make the situation untenable for the millions of people whose daily lives have been seriously disrupted." The report said residents across Ukraine are growing concerned about energy issues, as they fear there could be a natural […]

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Kiev ready to deal on gas issues

Ukrainian Prime Minister Arseniy Yatsenyuk says he’s looking for mutually acceptable solution to regional gas crises. UPI/Ivan Vakolenko KIEV, Ukraine, Oct. 7 (UPI) — Ukraine is ready to find a mutually acceptable solution to ensure the reliable transit of Russian natural gas, the country’s prime minister said. Ukrainian Prime Minister Arseniy Yatsenyuk met in Kiev with visiting Victoria Nuland , a U.S. State Department official in charge of regional affairs. Yatsenyuk’s office said "special attention" was paid to challenges of European energy security . "The Ukrainian side is ready to a mutually acceptable solution on the basis of market pricing for gas and its transit," he said. Ukraine under the terms of a proposal brokered with European and Russian officials agrees to settle its $3.1 billion in gas debt to Russian energy company Gazprom in exchange for assurances of reliable transit and a discount on gas prices. The Kremlin […]

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Kremlin reviewing date for gas talks

Kremlin preparing for next round of trilateral gas talks with its European and Ukrainian counterparts. (UPI Photo/Sergey Starostenko) MOSCOW, Oct. 6 (UPI) — The date of the next round of trilateral gas talks between Russia, Ukraine and the European Union will be announced this week, the Kremlin said. Trilateral negotiators are reviewing a package proposed in September meant to address Ukraine’s mounting debt for gas while ensuring European consumers have adequate winter supplies. "On Oct. 7, we will agree on the date of the next trilateral meeting," Russian Energy Minister Alexander Novak said Sunday. Ukraine under the terms of the proposal would pay off its $3.1 billion in debt to Russian energy company Gazprom, which in turn would offer a discounted price to its Ukrainian counterpart, Naftogaz. Gazprom would continue with a protocol calling on Ukraine to pay in advance for its natural gas . Russia meets about 20 […]

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U.S. Aids Ukraine on Heat Plan as EU Warns on Winter

The U.S. is helping plan how to keep homes and businesses heated during winter as the European Union’s incoming chief diplomat warned the government in Kiev may struggle as freezing temperatures approach. Fighting continued today in eastern Ukraine amid moves to establish a buffer zone to help cement a wobbly truce that went into effect a little more than a month ago between government forces and pro-Russian separatists. “We have a team in Ukraine looking at the immediate issues of this winter,” U.S. Energy Secretary Ernest Moniz said yesterday at the Council on Foreign Relations in New York. “The issues are, unfortunately, challenging.” Analysts are studying ways to heat homes with fuels other than natural gas, he said. Ukraine is bracing for the onset of winter, when temperatures at times drop below minus 20 degrees Celsius (minus 4 degrees Fahrenheit), with Russian gas supplies shut off and energy infrastructure […]

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Kiev points finger at Russia for gas crisis

Ukrainian Prime Minister Arseniy Yatsenyuk says his government is serious about addressing European energy concerns. UPI/Ivan Vakolenko KIEV, Ukraine, Oct. 3 (UPI) — The Ukrainian government is deeply concerned about risks to European energy security caused by the Kremlin, Ukraine’s prime minister said. Ukrainian Prime Miniser Arseniy Yatsenyuk said from Kiev risks to European energy security were "caused by the Russian Federation." The prime minister hosted regional and European leaders in an effort to allay concerns about natural gas before winter demand increases . Russian natural gas company Gazprom in 2006 and 2009 cut gas supplies through Ukraine in response to contractual disputes with the government in Kiev. Ukraine’s political upheaval in November left its economy in shambles and Kiev’s debt obligations are creating risks to European security . "We are deeply concerned about the erosion of European energy security, the EU and Ukraine from the Russian company Gazprom," […]

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Putin Not a Big Enough Threat to Undermine Europe, Norway Says

Europe shouldn’t fear the economic fallout of deteriorating ties with Russian President Vladimir Putin, Norway ’s Prime Minister Erna Solberg said. “Russia isn’t such a large economy so it doesn’t have that big an impact on our European economy,” Solberg, 53, said yesterday in an interview at her office in Oslo. While sanctions and counter sanctions have hurt primarily the fishing industry, there’s still “good growth in Norway,” she said. Europe has watched its economic growth slow as Russia’s handling of Ukraine poisons trade relations. Norway, which isn’t a European Union member, backs U.S. and EU economic sanctions that have pushed Russia’s $2 trillion economy to the brink of recession. Investors have responded by pulling capital, sending Russia’s benchmark Micex index down 6.7 percent this year. Russia has retaliated with its own trade bans, including stopping salmon imports from Norway, the world’s largest salmon exporter. Norwegian salmon farmers shipped […]

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EU demands solution to gas crisis

Europe leans on Kremlin for solution to lingering natural gas disputes. (UPI Photo/Sergey Starostenko) BRUSSELS, Oct. 1 (UPI) — European Commission President Jose Manuel Barroso said in a Wednesday letter to the Kremlin an interim solution to a trilateral gas crisis was mandatory. Ukraine under an interim deal proposed during trilateral talks last week in Berlin would pay the $3.1 billion it owes Russian energy Gazprom. Ukraine, in return, would get a price discount and assurances of adequate winter natural gas supplies. Barroso sent a letter to Russian President Vladimir Putin saying he expected a mutually acceptable deal should be reached by all parties to the negotiations. "It is key that the resumption of energy deliveries to the citizens of Ukraine is ensured and that the fulfillment of all contractual obligations with customers in the European Union is secured," he said. Russian Energy Minister Alexander Novak said Tuesday "it […]

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Russia Halves Natural Gas Supplies to Slovakia

Russia cut natural gas supplies to European Union member Slovakia by 50% Wednesday, Moscow’s latest and most significant reduction in energy supplies to an EU country that is helping Ukraine build gas supplies ahead of winter. Slovakia’s prime minister said the supply cut is a politically driven message to the EU as it negotiates fragile gas talks between Moscow and Kiev. "What’s interesting in the case is that it isn’t about a lack of gas, but this is about playing with gas supplies as an instrument of political posturing," Robert Fico said Wednesday. Slovakia this year began supplying natural gas to its eastern neighbor as an act of solidarity after Russia’s OAO Gazprom stopped supplying Ukraine with gas in June amid a price dispute and the broader conflicts between the two countries. Mr. Fico said Slovakia will "fulfill its commitments" to supply Ukraine with the fuel. Eustream, the Slovak […]

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Ukrainian Cease-Fire Frays as Rebel Attacks Test Military

The cease-fire in Ukraine that curtailed casualties for four weeks is starting to fray as pro-Russian insurgents continue to test the nerves of the military with targeted attacks, the government in Kiev said. Fighting continued today in the northern part of Donetsk, the biggest city in the combat zone, according to a statement on the local council’s website. It reported shelling yesterday near the Russian border, where a high-voltage transmission line was severed, cutting off power to several districts. The violence contrasts with comments last week by President Petro Poroshenko that the worst of the war is over as Ukraine focuses on elections next month, securing gas supplies and preparing a bid for European Union membership. Russia , which denies involvement in the war, said it wants to normalize ties with the EU and the U.S. after being hit by sanctions. “Policing a cease-fire was alway going to be […]

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Gas ball in Ukraine’s court, Kremlin says

Onus on Ukraine to follow through on gas deals, Russian energy minister says. (UPI Photo/Sergey Starostenko) MOSCOW, Sept. 30 (UPI) — Whether or not there’s enough natural gas on hand to meet Ukrainian needs depends on the parties in Kiev, Russian Energy Minister Alexander Novak said Tuesday. Novak said a winter gas plan for Ukraine could be on its way to Russian lawmakers for consideration soon. "It all depends on Ukraine," he said. "I believe that from our side we are practically ready to do everything that we agreed on in regard to this packet. We’ll wait for a reaction from Ukraine in the next few days when everything becomes clear." Ukraine under an interim deal would pay the $3.1 billion it owes Russian energy Gazprom. Ukraine, in return, would get a price discount and assurances of adequate winter natural gas supplies. Russia sends most of its gas for […]

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Russia ready should Kiev, EU renege on energy deals

Kremlin says it’s ready should agreements with European Union and Kiev falter. (UPI Photo/Sergey Starostenko) MOSCOW, Sept. 29 (UPI) — Russia is ready to respond should its Ukrainian or European Union partners renege on trilateral energy agreements, a Kremlin spokesman said Monday. Kremlin spokesman Dmitry Peskov said the Russian government is operating under guidelines spelled out last week during trilateral talks in Berlin. "Russia is guided by the agreements reached at the three-party talks, but at the same time is ready to defend its position," he said. Negotiating partners last week outlined the terms of an interim agreement that sees Ukraine paying the $3.1 billion it owes Russian energy Gazprom. Ukraine, in return, gets a price discount and assurances of adequate winter natural gas supplies. European Energy Commissioner Gunther Oettinger said that, with both sides sparring over contracts in international courts, an interim deal is necessary for short-term energy […]

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Russia’s Gazprom and Ukraine are in a gas dispute as winter approaches

Workers walk through Ukraine’s Dashava natural gas facility. (Sean Gallup/Getty Images) KIEV, Ukraine — The frigid water that comes out of the “hot” faucet of Alexander Korniienko’s shower in Kiev is a warning for his nation: After months without natural gas shipments from Russia, Ukraine may be facing a chilly winter. Ukrainians are layering their sweaters in preparation for yet another tough confrontation with the Kremlin, this time over energy. It is a replay of previous wintertime gas cutoffs by Russia that led to accusations that the Kremlin was using its bountiful energy supplies as a political weapon. This year, any wintertime shortfall could be far more serious for Ukrainians already contending with the dire effects of a separatist war. Korniienko has been on the vanguard of those facing the latest gas cutoff , since Kiev eliminated city-provided hot water in July as a conservation measure. Now he bathes […]

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Interim deal reached in Ukrainian gas row

Gas deal reached during European, Ukrainian and Russian talks. (UPI Photo/Sergey Starostenko) BERLIN, Sept. 26 (UPI) — Trilateral natural gas talks Friday in Berlin have resulted in temporary relief for Ukraine, delegates at the conference confirmed. Russian, Ukrainian and European officials met in Berlin in an effort to avert a gas crisis for the upcoming winter. Russia meets about a quarter of the gas needs for Europe, though the bulk of that volume runs through the Soviet-era transit system in Ukraine. Contractual woes in 2006 and 2009 forced Russian gas company Gazprom to cut gas supplies through Ukraine and European leaders are worried about a repeat of the crisis given ongoing acrimony between Kiev and Moscow. European Energy Commissioner Gunther Oettinger said during August talks with Russian Energy Minister Alexander Novak an interim price, repayment of unpaid bills and fulfillment of transit obligations must be part of an interim […]

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Russia, Ukraine in talks on gas as winter looms

AP Photo/Darko Vojinovic BERLIN (AP) — Russia and Ukraine are holding talks to solve their long-running gas dispute as pressure mounts for a solution to head off a winter supply crisis in Ukraine and beyond. Friday’s meeting in Berlin between the Russian and Ukrainian energy ministers, brokered by EU energy commissioner Guenther Oettinger, comes more than three months after Moscow cut off gas supplies to Kiev. The dispute, part of a wider conflict over Ukraine’s relations with Russia and the West, involves the price of Russian gas supplies and Kiev’s historic gas debts. A sense of urgency is beginning to mount. Much of the Russian gas supplied to EU countries passes through pipelines that cross Ukraine. "European and Ukrainian energy and gas supplies are very closely connected with each other," German Chancellor Angela Merkel said this week. "Winter is nearing, so time is pressing." Russia shut off supplies to […]

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Hungary halts flow of gas to Ukraine

General view of the gas station near the border between Ukraine and Poland in the settlement of Drozdovychi, 120 km (75 miles) west of ukrainian city of Lviv. Hungary has stopped supplying gas to Ukraine through a “reverse flow” pipeline just days after the head of Russia’s Gazprom monopoly visited Budapest, Ukraine’s gas utility said. Naftogaz, the Ukrainian distributor, said Hungary had stopped transporting gas at 19.00 Ukrainian time on Thursday, notifying Kiev that it was halting supply “for technical reasons” until further notice. It came after Alexei Miller, Gazprom chief executive, on Monday met Hungary’s premier Viktor Orbán, Naftogaz said. The stoppage put further pressure on Ukraine and the EU ahead of trilateral talks with Russia in Berlin on Friday over restoring gas supplies to Ukraine after Gazprom suspended them because of a dispute over pricing and payment arrears. Hungary, together with Slovakia and Poland, have been helping […]

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Ukraine Urges Rebel Withdrawal as Obama Presses Moscow

Ukraine urged pro-Russian separatists to stop shelling government troops and start withdrawing their heavy weapons, while President Barack Obama said Russia must choose peace to have U.S. sanctions lifted. Separatists shelled government troop-held Donetsk airport and a checkpoint in the area, wounding eight servicemen, military spokesman Andriy Lysenko told reporters in Kiev today. He said Russia provided no information to Ukraine about the content of a fourth aid convoy that is on its way to the region. Russia denies U.S. and European Union allegations that it’s stoking the unrest in eastern Ukraine. NATO said yesterday Russia has embarked on a “significant” withdrawal of its forces from Ukraine, adding to signs that the truce is holding between the government in Kiev and separatist groups. The conflict, which erupted after Russia annexed Crimea in March, has killed more than 3,200 people, the United Nations estimates. Obama, in a speech today to […]

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Kiev commits to gas transit to Europe

KIEV, Ukraine, Sept. 23 (UPI) — Members of a European energy council met Tuesday in Kiev to discuss energy security challenges in the European market. Europe gets about a quarter of its gas needs met by Russia, though more than half of that runs through the Soviet-era transit system in Ukraine. Russian energy company Gazprom in 2006 and 2009 cut gas through Ukraine in response to contractual rows, and ongoing tensions in eastern Ukraine add another layer of risk to European energy security. Ukrainian Prime Minister Arseniy Yatsenyuk said energy solidarity in the European community would lead to advances in energy independence and energy security. "Ukraine will abide by the Energy Community rules and ensure uninterrupted transit of gas through its territory," he said in a statement. Ukrainian, Russian and European leaders are scheduled to meet Friday in Berlin to discuss lingering challenges to their trilateral energy ties. European […]

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EU confirms schedule for trilateral gas talks

| License Photo BRUSSELS, Sept. 22 (UPI) — The European Commission confirmed a trilateral meeting with Russian and Ukrainian energy ministers was scheduled for Friday in Berlin. The commission said European Energy Commissioner Gunther Oettinger would sit down with Russian Energy Minister Alexander Novak and Ukrainian Energy Minister Yuri Prodan. No agenda was given in Monday’s announcement . Russian media reported European leaders were ready to discuss reliable gas transits and would consider the status of the planned South Stream gas pipeline if the issue was raised. Members of the European Parliament passed a resolution Thursday calling on "EU countries to cancel planned energy sector agreements with Russia, including the South Stream gas pipeline." South Stream is a Russian option to avoid geopolitically sensitive territory in Ukraine, plagued by conflict since a November pivot toward the European Union . Russia meets about a quarter of Europe’s gas needs, though […]

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EU Set for New Clash with Russia over Ukraine Pact

EU enlargement chief Stefan Füle, pictured in Brussels last year, has told The Wall Street Journal that the Russian government is living in a "virtual reality" over its interpretation of a recent compromise trade deal involving Ukraine. Agence France-Presse/Getty Images NEW YORK—The European Union seemed set for a fresh clash with Russia after the bloc’s enlargement chief, Stefan Füle, accused Moscow of living in a "virtual reality" over its interpretation of a recent deal aimed at defusing trade tensions over Ukraine. The dispute threatens to dampen hopes that a Sept. 12 accord between the EU, Russia, and Ukraine could start to ease tensions between Brussels and Moscow. Last week, Russian Economy Minister Alexei Ulyukaev sent a letter to the European Commission’s trade chief and Ukraine’s foreign minister setting out Moscow’s interpretation of the agreement and warning that Russia could still retaliate against Ukraine for ratifying a broad trade and […]

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Pay up, Gazprom tells Ukraine

MOSCOW, Sept. 17 (UPI) — The future relationship between Ukraine and natural gas company Gazprom depends on resolving lingering debt issues, the Russian company said. Gazprom says it’s owed $5.3 billion from Ukrainian energy company Naftogaz. Similar debt issues in 2006 and 2009 resulted in suspension of gas deliveries, and Gazprom said it’s time to pay up . "The future relationships between the companies are fully dependent on settling the debt payout issue," the company’s board said in a statement Tuesday. Political upheaval in November saddled an already struggling Ukrainian economy with significant debt. In August, the International Monetary Fund distributed $1.4 billion in assistance to Kiev, but said Naftogaz debt was one of the factors contributing to deeper recession in Ukraine. Members of the Ukrainian parliament met Wednesday in Moscow with their Russian counterparts to discuss ongoing tensions between both sides. A former Soviet republic, Ukraine this week […]

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Ukraine Truce Wobbles as Eastern Regions’ Power Expanded

The cease-fire in Ukraine showed more signs of strain as rebels questioned further peace talks with the government, even after lawmakers in Kiev approved a special status for the country’s two easternmost regions. Some separatist groups called for a renewed offensive and a rebel leader accused the government of violating the terms of a truce signed Sept. 5. Clashes continued near Donetsk, the largest city in the conflict zone, including near the airport, site of some of the heaviest fighting. The uncertainty about the peace process overshadowed the ratification of Ukraine’s association agreement with the European Union on the same day that lawmakers approved a bill expanding the powers of the Donetsk and Luhansk regions. The law falls short of Russia’s demands, according to Otilia Dhand, an analyst at Teneo Intelligence in London . “The key point, the right of regions to influence foreign policy decisions, is not included,” […]

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Ukraine Moves Reflect Moscow’s Long Shadow

FIERY POLITICS: Ukraine’s legislature ratified a pact with the EU and approved an autonomy plan for separatist regions, as supporters of an anticorruption law clashed with police outside parliament. Agence France-Presse/Getty Images Ukraine sought to draw a line under its confrontation with Moscow by ratifying a landmark trade-and-political deal with the European Union and approving limited autonomy for territories now controlled by Russia-backed separatists . But with full implementation of the EU deal postponed under Russian pressure, and the rebels insisting on independence, the developments illustrated Kiev’s weakened position—almost a year after Moscow began flexing its muscle to keep the ex-Soviet republic in its orbit. Many lawmakers in Kiev broke into the national anthem and cried "Glory to Ukraine" after the EU deal passed with 355 votes in the 450-seat legislature. President Petro Poroshenko hailed it as a first step toward eventual membership in the bloc. "No country has […]

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EU, Kiev, Moscow gas talks suspended

MOSCOW, Sept. 15 (UPI) — Talks were scheduled for Saturday. A ministry spokesperson told state news agency RIA Novosti an alternate date depended on Energy Minister Alexander Novak’s schedule. "We told the European Commission that the proposed date is not suitable for us," the spokesperson said. "Another date is being discussed." The European Union last week enforced new sanctions on the Russian energy sector in response to ongoing crises in eastern Ukraine. A government decision in Kiev in November to suspend efforts to join the EU sparked political upheaval in Ukraine, a former Soviet republic. That, in turn, led to intervention by Russia, which annexed the Crimean Peninsula and has supported separatists in eastern Ukraine. On Saturday, Ukrainian Prime Minister Arseniy Yatsenyuk submitted to Parliament the text of an association agreement with the EU. Europe is trying to avert a repeat of an energy crisis that erupted in 2006 […]

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Ukraine Fighting Prompts U.S.-Russia Meeting in Paris

The U.S. is concerned about renewed fighting and has no details about the content of a Russian convoy that entered and left Ukraine over the weekend, a State Department official said. Russia still has about 25,000 troops along the border and more than 3,000 soldiers inside the country, according to the Ukrainian government. The U.S. and other NATO countries began military exercises in the country today. Kerry will meet with Lavrov at a conference on Iraq that will take place in Paris. While Russian President Vladimir Putin has denied supporting pro-Russian rebels, Ukrainian Prime Minister Arseniy Yatsenyuk said that Putin seeks to restore the Soviet Union and take the entire country. The conflict has claimed more than 3,000 lives and clashes have occurred daily since a truce took effect Sept. 5. Artillery fire caused casualties among civilians in the city of Donetsk yesterday, according to the city council. Attacks […]

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Ukraine President Poroshenko Faces Backlash Over EU Trade Deal Delay

Ukrainian President Petro Poroshenko speaks to the press in front of Ukraine’s state coat of arms on Sept. 12. Agence France-Presse/Getty Images KIEV, Ukraine—Ukrainian President Petro Poroshenko faces rising criticism for his decision to delay implementation of part of a European Union deal to avoid threatened Russian retaliation. A senior diplomat resigned in protest over the weekend, and pro-European politicians who are competing with Mr. Poroshenko’s party in parliamentary elections next month blasted the decision as caving to Russia, which wants Ukraine to give up the deal and remain in its orbit. The tensions highlight how difficult it will be for Mr. Poroshenko to manage the competing pressures of a Kremlin that isn’t backing down and a domestic electorate that wants closer ties to Europe and no concessions to Moscow. On Friday, Ukraine and the EU agreed to put off implementing a landmark trade deal , which is part […]

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West’s antics pushing Russia closer to China

The recent NATO summit in Wales, held against the background of the armed conflict in Ukraine, has brought back the Cold War atmosphere to Europe. NATO’s partnership with Russia remains formally suspended. In fact, NATO is treating Russia more as an adversary than a partner. The alliance is setting up a "Rapid Reaction Force" to deal with emergencies on Europe’s eastern flank. The alliance’s military infrastructure is moving toward that exposed flank, and closer to Russia’s borders. NATO forces will now spend more time exercising in the east, and their presence there will visibly grow. NATO-leaning Ukraine, which the alliance alleges is an object of "Russian aggression", has been promised financial and military support. The Ukraine crisis is not just about Eastern Europe, it is also about the world order. The Kremlin is seeking Washington’s recognition of what it regards as its core national security interest: keeping Ukraine as […]

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Ukraine to Delay Part of EU Pact Opposed by Russia

A Ukrainian soldier jumped onto an armored vehicle near Pervomaysk, Ukraine. A week-old cease-fire with rebels appeared to be holding. Reuters KIEV, Ukraine—Ukraine agreed Friday to delay a key part of a trade deal with Europe that the Kremlin had staunchly opposed, even as the U.S. and European Union ramped up sanctions intended to back Russia down. The compromise, reached in Brussels, means that Ukraine gets to ratify the overall EU pact next week—an agreement that sparked Ukraine’s confrontation with Russia last year. Moscow agreed to drop its threat to impose sweeping restrictions on Ukrainian goods as early as November. But it is unclear how the next steps will play out as Kiev tries to end the Russian-backed rebellion that erupted in eastern Ukraine after the country’s turn toward Europe. While a week-old cease-fire between Ukrainian forces and Russian-backed rebels appeared to be holding, the U.S. and EU widened […]

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U.S. and European Sanctions Take Aim at Putin’s Economic Efforts

WASHINGTON — The United States and the European Union moved on Friday to shut down Western aid to Russian deepwater, Arctic offshore and shale oil exploration, broadening and deepening the range of sanctions imposed on Moscow in retaliation for its intervention in Ukraine despite the potential cost to Western firms like Exxon Mobil and BP. With twin announcements in Washington and Brussels, the new measures targeting Russia’s energy development came in addition to further limits on access to American and European capital markets, making it harder for Russian banks to obtain any credit in foreign capitals beyond short-term loans. The United States specifically targeted Russia’s largest bank, Sberbank, for the first time. The Europeans also banned travel by and froze the assets of 24 more individuals, including Russian lawmakers and others who have supported President Vladimir V. Putin over Ukraine, while the Americans blocked the assets of five Russian […]

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U.S., EU Widen Sanctions on Russia

A logo stands on display on the front of an OAO Rosneft gas station in Moscow. The U.S. and European Union announced new sanctions Friday that target Russian Arctic and shale-oil projects, which could affect a partnership between Rosneft and Exxon Mobil. Bloomberg News The U.S. joined the European Union in expanding sanctions to target Russian Arctic and shale-oil projects and further limit financing to Russian state-controlled companies, a move to put pressure on Moscow as Ukraine negotiates a long-term peace plan and closer ties to the EU. The energy sanctions announced Friday, widely expected in recent days , will prevent Western energy firms from providing technology and services—other than financial services—to five Russian energy majors’ oil projects in the Arctic, deep offshore fields and shale, the U.S. Treasury Department said. U.S. companies have two weeks to comply with the sanctions, likely meaning an end for now to Exxon […]

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Russia Weighs Response as U.S. and EU Add More Sanctions

Russia threatened retaliation against a U.S. and European Union decision to stiffen sanctions against Moscow because of Ukraine and may ban some imports including clothing and used cars. The EU added 15 companies , including OAO Gazprom (OGZD) Neft, OAO Rosneft (ROSN) and OAO Transneft, and 24 people to the list of those affected by its sanctions against Russia. European companies and taxpayers “will have to pick up the costs” for the penalties, Dmitry Peskov, a spokesman for Russian President Vladimir Putin , told Interfax yesterday. The U.S. will “deepen and broaden” its measures against Russia’s financial, energy and defense industries, President Barack Obama said yesterday. The moves raise the level of confrontation and follow reprisals last month, when the Russian leader banned a range of food imports after an earlier round of U.S. and European penalties. Putin denies any involvement in the fighting that broke out after he […]

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Sanctions Over Ukraine Put Exxon at Risk

When Exxon Mobil Corp. Chief Executive Rex Tillerson detailed a deal to drill for oil in Russia’s Arctic Sea two years ago, he predicted that the project would strengthen the ties between the U.S. and Russia. Instead, Exxon has wound up in the cross hairs of U.S. foreign policy, which could threaten one of the company’s best chances to find and tap significant—and much needed—amounts of crude oil. The U.S. on Thursday announced new sanctions targeting Russia’s financial, defense and energy sectors in a bid to punish the Kremlin for stoking the military conflict in Ukraine. Details of the sanctions, designed to match new measures imposed by the European Union , are set to be released Friday. A U.S. official said the new penalties would affect Exxon’s current drilling in the icy Kara Sea with its Kremlin-controlled partner, OAO Rosneft , though the extent of the impact was unclear […]

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Poland Resumes Gas Deliveries to Ukraine

By Patryk Wasilewski WARSAW–Poland resumed deliveries of natural gas to Ukraine on Friday, after supplies from Russian to Poland fell below ordered level earlier this week, the country’s gas network operator said. Poland’s state-controlled PGNiG SA said earlier this week that deliveries from Russia’s OAO Gazprom were 20-24% below increased order levels on Monday and Tuesday, and 45% below on Wednesday. Gazprom said it was delivering unchanged amounts of gas through Monday-Tuesday. PGNiG said it was compensating for the difference by increasing supplies from Germany and the Czech Republic. Before the halt of supplies to Ukraine, Poland supplied about 4 million cubic meters of gas a day to it neighbor, with most of it originating in Russia. Kiev was forced to import gas through Poland and Slovakia after Gazprom halted supplies to Ukraine amid a dispute over prices and unpaid bills. The dispute has been seen as part of […]

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EU Widens Sanctions on Russian Companies, Individuals Over Ukraine Crisis

By Frances Robinson And Laurence Norman BRUSSELS–The European Union extended its sanctions on Russia and rebels in eastern Ukraine on Friday, adding 15 companies and 24 individuals to its blacklist and imposing new measures against the country’s oil and defense sectors, in an effort to target those dealing with the separatists. The measures, initially approved on Monday, reinforced steps taken in July restricting trade, commerce and financial links with Russia. They will indirectly affect companies including Exxon Mobil Corp., which works with state-controlled oil companies in Russia. Under the widened sanctions list, it is "prohibited to directly or indirectly purchase, sell, provide investment services for or assistance in the issuance of, or otherwise deal with transferable securities and money-market instruments with a maturity exceeding 30 days." As previously reported in The Wall Street Journal, three state-controlled oil companies–OAO Gazpromneft, the oil unit of OAO Gazprom; oil pipeline operator company […]

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With Gas Cut Off, Ukraine Looks West

UZHGOROD, Ukraine — Keeping Ukraine warm keeps Andriy Kobolev up at night. Mr. Kobolev, the head of Ukraine’s state energy company, Naftogaz , is scrambling to keep gas flowing into his country as winter looms. Russia’s energy giant, Gazprom, had provided a little more than half of Ukraine’s total gas supply, but suspended its shipments in June in the face of fighting in eastern Ukraine between Russian separatists and the Ukrainian military, citing a price dispute. Europe — itself dependent on Russia but also expanding sanctions on the country — has not been able to fill the gap. That means Ukraine will have to cut its energy use sharply or risk running dry, which could lead to more civilian deaths when the weather turns cold, and could further batter the country’s economy. “The situation is very difficult,” Mr. Kobolev said in a recent interview. “Since we have no choice, […]

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U.S. Readies New Energy Sanctions on Russia

A sign at an Exxon station in Miami, Fla., on July 31, 2008. Getty Images WASHINGTON—The U.S. is close to imposing the toughest round of energy sanctions so far on Russia, measures that would also hit Western companies like Exxon Mobil that are working with Russian state-controlled oil companies. The sanctions, which the European Union is expected to match, would ban energy companies from working with Russia on future oil exploration in the Russian Arctic, deep seas and shale rock formations, according to a U.S. official. The sanctions wouldn’t affect current oil production, but could imperil the future of existing partnerships, including a deal between Exxon Mobil Corp. and OAO Rosneft , the Kremlin-controlled oil giant, to drill in the Arctic Ocean. Previous sanctions banned only the export of technology that could be used in such projects. Other companies potentially affected include BP PLC and Royal Dutch Shell PLC. […]

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London watching European gas row closely

LONDON, Sept. 10 (UPI) — Few in the European community could find relief in the event of a winter crisis stemming from transit issues in Ukraine, the British energy minister said. European consumers get about a quarter of their gas needs from Russia, though the bulk of that supply runs through the Soviet-era transit network in Ukraine. "We have looked at our gas resilience to a range of very extreme scenarios, including things we hope do not happen in Ukraine," British Energy Secretary Ed Davey said. Russian energy company Gazprom in 2006 and 2009 cut gas supplies to Ukraine because of contractual disputes. That left downstream consumers in Europe without gas, a situation that could be repeated because of ongoing conflict in eastern Ukraine . Russian Energy Minister Alexander Novak committed last week to meeting contractual obligations to Europe. Though the United Kingdom does not directly import gas from […]

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Ukraine says Russia withdrawing forces from east, sees boost for peace

KIEV (Reuters) – Ukraine’s president said on Wednesday Russia had removed the bulk of its forces from his country, raising hopes for a peace drive now underway after five months of conflict in which more than 3,000 people have been killed. Moscow denies sending troops into eastern Ukraine to support pro-Russian rebels battling Ukrainian forces, despite what Kiev and its Western backers say is overwhelming evidence to the contrary. Moscow also denies arming the separatists. President Petro Poroshenko told a televised cabinet meeting Ukraine would remain a sovereign, united country under the terms of a peace roadmap approved last Friday, but said parts of the east under rebel control would get special status. "According to the latest information I have received from our intelligence, 70 percent of Russian troops have been moved back across the border," Poroshenko said. "This further strengthens our hope that the peace initiatives have good […]

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EU adopts new Russia sanctions but delays action

BRUSSELS (AP) — The European Union on Monday shied away from slapping new economic sanctions on Russia right away over its actions in eastern Ukraine. Instead, the 28-nation bloc said the punitive measures will come into force "in the next few days" depending on how well the cease-fire agreement in eastern Ukraine will be upheld. European Council President Herman Van Rompuy said in a statement delaying the sanctions would leave time for "an assessment of the implementation of the cease-fire agreement and the peace plan." "Depending on the situation on the ground, the EU stands ready to review the agreed sanctions in whole or in part," Van Rompuy said. Ukraine, Russia and the Kremlin-backed separatists agreed Friday to an immediate cease-fire and an exchange of prisoners. While the truce appeared to hold on Monday, the agreement seemed fragile over the weekend when occasional fighting occurred. The EU sanctions are […]

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EU Need for Russian Gas Via Ukraine Wanes as Stores Fill

Europe ’s reliance on Russian natural gas shipments via Ukraine is declining after the region pumped a record volume of the fuel into underground inventories, minimizing the risk of shortages during the coming winter. The blue line on the CHART OF THE DAY shows average daily flows at Velke Kapusany on the Slovakian-Ukrainian border, the biggest single entry point for Russian gas into the European Union, last month fell to a record, according to data from Slovak grid operator Eustream AS going back to 2011. The red histogram shows the 28-nation bloc has pumped a record volume of gas into storage, according to Gas Infrastructure Europe, a lobby group in Brussels. Russia, which meets about 15 percent of Europe’s gas demand through Soviet-era pipelines across Ukraine, halted supplies to its neighbor on June 16 in a dispute over debt and prices, echoing similar spats in 2006 and 2009 that […]

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New EU Sanctions to Stop Fundraising by 3 Russian Oil Giants

A Rosneft logo at the company’s headquarters in Moscow. New sanctions from the European Union will expand the number of companies unable to raise money in the bloc’s capital markets. Bloomberg News BRUSSELS—New European Union sanctions on Russia will expand the number of Russian companies unable to raise money in the bloc’s capital markets to include three major state-owned oil companies, according to documents seen by The Wall Street Journal. Under a modest expansion of sanctions introduced in late July, the three oil companies— Gazpromneft , the oil-production and refining subsidiary of OAO Gazprom , oil transportation company Transneft , and oil giant Rosneft—will be forbidden from raising funds of longer than 30 days’ maturity. Five state-controlled banks, including Sberbank and VTB Bank , already barred from raising funds for longer than 90 days under the July sanctions, will also have the maximum maturity cut to 30 days. The […]

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Ukraine and Russia Face Gaps in a Truce and a Chasm on the Issues

MOSCOW — Scattered fighting threatened a shaky cease-fire in eastern Ukraine on Sunday as officials now confront a task even more formidable than maintaining the truce: fashioning some form of decentralized governance in the war-ravaged region that President Vladimir V. Putin of Russia will accept and that President Petro O. Poroshenko of Ukraine can deliver without turning his country against him. But just two days after the truce was signed in Minsk, Belarus, calling for “decentralization of power” as the most important step after a halt to the violence, Yuri V. Lutsenko, an influential adviser to Mr. Poroshenko, published an article on Sunday denouncing the idea of creating a special autonomous zone in the east — which Russia has demanded — saying it would be “a cancerous tumor in the Ukrainian organism.” The article on the Ukrainska Pravda news site by Mr. Lutsenko, who is leading Mr. Poroshenko’s political […]

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Truce in Ukraine Spawns Hope, Doubt in West

Ukraine signed a cease-fire with the pro-Russian rebels on Friday. This could be a real move into ending the five-month conflict. WSJ’s Moscow Bureau Chief Greg White joins Lunch Break’s Tanya Rivero with the details. Photo: Getty MOSCOW—A tentative peace deal for Ukraine reached Friday raised hopes for a resolution of the worst East-West crisis since the Cold War, even as the U.S. and Europe beefed up sanctions aimed at pressuring Russia to leave the battlefield. After a day of continued fighting, Ukrainian forces and the pro-Russia separatists in the east of the country said they had stopped their military operations when the cease-fire went into effect at 6 p.m. local time. The deal was described as a series of 12 steps toward ending the five-month conflict that has cost at least 2,000 lives. The first step, the cease-fire, was to be followed by a prisoner exchange and delivery […]

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Ukraine and Russia-Backed Rebels Say They Are Ready for Cease-Fire

Russia’s Foreign Minister Sergei Lavrov speaks during talks with the Secretary-General of the Council of Europe, Thorbjorn Jagland, on Thursday. Zuma Press KIEV, Ukraine—Ukraine and Russia-backed rebels both said Thursday they are ready for a cease-fire in the country’s war-torn eastern provinces if a peace deal is signed at talks on Friday. At a summit of the North Atlantic Treaty Organization in Wales, Ukrainian President Petro Poroshenko said he hoped a cease-fire would be agreed to at the meeting of negotiators in the Belarusian capital of Minsk. But the most important details of the plan were still unclear—particularly the contentious issue of how much territory the Ukraine government could effectively have to cede to rebels. Russian President Vladimir Putin has presented a plan that would call for Ukraine to pull back forces and leave the rebels in control of some territory. Mr. Poroshenko hasn’t made public exactly what he […]

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Ukraine battles rage despite ceasefire talks

A volunteer of the Ukrainian paramilitary Azov battalion waits on an armoured vehicle, as pro-Russian separatists fire heavy artillery, on the outskirts of the key southeastern port city of Mariupol, on September 5, 2014. NATO leaders are expected to announce a raft of fresh sanctions against Russia on Friday over its actions in Ukraine, although hopes remain that a ceasefire can be forged at peace talks in Minsk on the same day. AFP PHOTO/PHILIPPE DESMAZES The sound of shelling rattled Mariupol in southeast Ukraine on Friday morning, sparking fresh fears that Russian-backed separatists were plotting to seize the strategic Azov Sea coast city hours before ceasefire talks and a looming EU decision to expand economic sanctions against Moscow. Nato leaders, holding their second day of summit talks in Wales, were considering their response to Russian aggression against Ukraine. More On this story On this topic IN Europe Witnesses reported […]

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Putin Seen Waging Ukraine Shadow War Until Veto Assured

Vladimir Putin will continue his shadow war until he’s created quasi statelets in Ukraine’s easternmost regions with veto power over the country’s future, five current and former Russian officials and advisers said. Even after Putin and his counterpart Petro Poroshenko agreed on steps to end more than five months of fighting, the Russian president won’t settle for less than broad autonomy for Ukraine’s mainly Russian-speaking regions of Donetsk and Luhansk, including the right to reject key decisions at the national level such as joining NATO, according to the people. Putin is willing to wait until November, after Ukraine elects a new parliament and the heating season starts, to ensure his goals are met, in part by extending a natural gas cutoff to force a compromise if needed, one official said on condition of anonymity after speaking with Putin last week. Related: “Putin’s goal is to force Ukraine to its […]

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Putin Sets Out Peace Terms for Ukraine

The Ukrainian President’s office said that he and Russian President Vladimir Putin agreed to a cease-fire regime in eastern Ukraine. The Kremlin took issue with that wording, saying the two leaders only discussed steps towards peace. WSJ’s Paul Sonne joins Simon Constable on the News Hub with more on this. Photo: Getty MOSCOW—Russian President Vladimir Putin pushed a cease-fire deal with Ukraine that would freeze in place gains made by Russian-backed separatists, setting the stage for the kind of partitioning Moscow has used to tame other neighbors. Mr. Putin said he and Ukrainian President Petro Poroshenko were "very close" on agreeing to a path for resolving the nearly five-month conflict. The Russian leader proposed an end to the rebel offensive, but also a pullback of Ukrainian troops, which would be a major concession for Kiev. Mr. Poroshenko said he "supported Russia’s readiness to implement a joint plan for peaceful […]

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Ukraine rebels say they are poised to recapture Donetsk airport

BRUSSELS/DONETSK Ukraine (Reuters) – EU officials proposed sanctions on Tuesday to starve Russian firms of cash as punishment for Moscow’s role in Ukraine, where rebels said they were storming Donetsk airport, potentially their biggest prize since turning the war’s tide last week. Western countries accuse Moscow of sending armored columns of troops into Ukraine, where the momentum in a five-month war shifted last week decisively in favor of pro-Russian rebels, who are now advancing on a new front towards a major port. Russia denies its troops are involved in fighting on the ground, in the face of what Western countries and Ukraine say is overwhelming evidence. In Washington, Pentagon spokesman Rear Admiral John Kirby estimated there were thousands of Russian forces inside Ukraine. “You want to talk provocative? Let’s talk about a few thousand Russian troops inside eastern Ukraine, continuing to support separatists, with heavy weapon systems, and more […]

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