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Russia likely to demand early repayment of Ukraine’s $3 billion debt: RIA Novosti

MOSCOW (Reuters) – It is "highly likely" that Russia will demand early repayment of $3 billion in debt owed by Ukraine, Russia’s RIA Novosti agency reported on Saturday, citing an anonymous government source. The source told the agency that Ukraine was in violation of a "whole series" of conditions for Russia’s loan. "In these circumstances it is highly likely that Russia will be forced in the near future to demand from Ukraine the early repayment of the $3 billion debt," the source was quoted as saying. The comments appear to contradict remarks in November by President Vladimir Putin, who told German media that Russia did not intend to demand early repayment of Ukraine’s debt as this would cause a financial collapse. The finance ministry did not answer calls for comment on Saturday. Russia lent the money in December 2013 by buying Ukrainian Eurobonds, before the overthrow of Ukraine’s pro-Moscow […]

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Shale player pulls plug on Ukraine

Energy company puts shale gas ambitions in Ukraine on hold because of a tough investment climate. UPI/Gary C. Caskey LONDON, Jan. 7 (UPI) — The economic climate in Ukraine is no longer conducive to continue investing in shale natural gas opportunities, producer JKX Oil & Gas said Wednesday. "The board of JKX has decided that the combination of Ukrainian Government-imposed restrictions on selling its gas to industrial clients and the punitive rate of gas production tax requires the company to suspend its planned 2015 capital investment program in Ukraine until the economic parameters for investment improve," it said in a statement. The company in August said new budget measures passed by the Ukrainian government means higher taxes for the oil and gas industry in the country. The most significant, it said, was a move to nearly double the tax on gas production to close to 55 percent. In its […]

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Ukraine Cuts Power, Train and Bus Services to Crimea

ENLARGE In this Oct. 26 file photo, a man walks past a mural on an apartment building depicting Russian President Vladimir Putin in a navy uniform with the Kremlin and a Russian flag in the background in Sevastopol, Crimea. Associated Press MOSCOW—Ukraine cut off electricity as well as train and bus service to Crimea on Friday, moves that could raise tensions with Russia, which annexed the peninsula in March and has been prodding Kiev to negotiate with Moscow-backed rebels in the country’s eastern provinces. The power cutoff is the second this week by Ukraine, which says it has electricity shortages of its own because rebels have halted shipments of coal to its power plants. The halt in train and bus service, however, could indicate Ukraine is stepping up its pressure of the peninsula. In both cases, Ukrainian officials cited safety concerns. Passenger and cargo train service, both foreign and […]

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Talks on Ukraine settlement break down

MINSK, Belarus (AP) — The foreign ministry of Belarus, which has been hosting Ukraine peace talks, says the much-anticipated round of negotiations on Friday has been scrapped. Ministry spokesman Dmitry Mironchik told The Associated Press that the talks broke down but did not give a reason. The opening round was held on Wednesday, one day after Ukraine’s decision to drop its non-aligned status, which added a new element of tension to the attempts to resolve the violent crisis in the country. The talks were to discuss how to improve an often-violated cease-fire that was declared in September, to pull back heavy weapons and to exchange of war prisoners. The negotiators included representatives of Ukraine, Russia, pro-Russian rebels and the Organization for Security and Cooperation in Europe.

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Ukraine Ends ‘Nonaligned’ Status, Earning Quick Rebuke From Russia

ENLARGE Lawmakers voted to end the nation’s nonaligned status. Agence France-Presse/Getty Images KIEV, Ukraine—Ending its status as a nonaligned nation, Ukraine rekindled aspirations to join the North Atlantic Treaty Organization, a move that drew a quick rebuke from Moscow. Though largely symbolic, Tuesday’s move highlights the depths of differences between Kiev and Moscow, which has long thought of Ukraine as its satellite and buffer against the West, and has accused the West of bringing hostile forces to its borders. Ukraine had pursued NATO membership when a pro-Western government was elected 10 years ago, but declared itself as nonaligned under the recently ousted pro-Russia president, Viktor Yanukovych, after he was elected in 2010. Ukraine’s chances of joining NATO anytime soon are practically nil, however, as members in Europe especially have little stomach for a confrontation with Russia. On Tuesday, Russian Foreign Minister Sergei Lavrov condemned the move, which he said […]

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Ukraine crisis: Obama orders ban on Crimea trade

A Russian Orthodox priest blesses a SU-27 SM fighter jet at Belbek military airport near Sevastopol Related Stories US President Barack Obama has ordered a ban on the export of goods, technology and services to Crimea. The executive order also imposes new sanctions on Russian and Ukrainian individuals and companies. Mr Obama said the move showed the US would never accept Russia’s annexation of Crimea in March. Similar measures agreed by the European Union earlier this week came into effect on Saturday. Canada announced its own sanction on Crimea on Friday. After the peninsula was annexed, pro-Russian separatists took control of parts of the Donetsk and Luhansk regions of eastern Ukraine in April, and later declared independence. Some 4,700 people have died and another million have been displaced by fighting in recent months. On Friday, five Ukrainian soldiers were killed in fighting – the highest death toll since the […]

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Economic Fears May Push Russia Into Ukraine Deal

BERLIN — The turmoil in the Russian economy appears to be encouraging Moscow to seek compromise in the crisis over Ukraine , although President Vladimir V. Putin has proved so erratic in past months that Western leaders are wary of proclaiming progress, officials and analysts said Wednesday. On Sunday and again on Tuesday night — after days in which the ruble gyrated wildly , raising the possibility of a broader financial crisis that could saddle Mr. Putin with deeper economic and political problems — the Russian president spoke by phone with his Ukrainian, German and French counterparts. Statements released afterward in all four capitals talked of moving quickly to cement a cease-fire broadly observed since last week in eastern Ukraine . Mr. Putin may make his intentions clearer at his annual news conference on Thursday. European leaders will meet later Thursday and Friday in Brussels amid growing indications that […]

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Chevron suspends Ukrainian shale efforts

Chevron puts brakes on gas exploration efforts in Ukraine, but says it’s keeping its options open. UPI/Shutterstock/Calin Tatu KIEV, Ukraine, Dec. 16 (UPI) — U.S. energy company Chevron said it was still looking for opportunities in Ukraine, but opted to shelve a contract to tap the country’s shale gas potential. In October, members of a regional council in Ukraine approved a draft production agreement for shale natural gas with Chevron. The deal was formalized in November. Ukraine is one of the Eastern European countries thought to be rich in shale natural gas and the government estimates there may be enough natural gas in shale plays to meet the country’s needs without imports. Peter Clark, country manager for Chevron, told the Kiev Post the company terminated the production agreement because of legislative hurdles in Ukraine. "We have just terminated that PSA (product sharing agreement)," Clark said in comments published Monday. […]

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New Russia Sanctions Bill Will Be Signed by Obama, White House Says

WASHINGTON — President Obama has decided to sign legislation imposing further sanctions on Russia and authorizing additional aid to Ukraine , despite concerns that it will complicate his efforts to maintain a unified front with European allies, the White House said on Tuesday. The legislation calls for a raft of new measures penalizing Russia’s military and energy sectors and authorizes $350 million in military assistance to Ukraine, including antitank weapons, tactical surveillance drones and counter-artillery radar. The bill was approved unanimously by Congress, but Mr. Obama hedged for days on whether he would sign it. Josh Earnest, the White House press secretary, announced the decision to approve the bill even as he described the president’s qualms over it. Mr. Earnest said it sent a “confusing message” internationally, including language “that does not reflect the consultations” with European powers. But in the end, he added, the president opted to allow […]

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EU: Gas security still hinges on Ukraine

Ukraine still plays a key role in European energy strategies, European official tells Russian state media. UPI/Ivan Vakolenko Europe gets about a quarter of its natural gas supplies from Russia, though most of that runs through the Soviet-era pipeline network in Ukraine. Contractual disputes in 2006 and 2009 between Kiev and gas supplier Gazprom left downstream consumers in Europe in the cold for weeks and recent turmoil in Ukraine has only exacerbated the problem. Beate Raabe, a natural gas director for the European Union, said Ukraine is still a vital part of the energy security chain. "It is important that the businesses continue to cooperate, we cannot change the political climate, as much as we hope the political parties will do their utmost to end the armed conflict in Ukraine and to find a lasting solution to the problem, because that will also help the energy market," she told […]

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