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Ukraine Crisis Takes Toll on Germany’s Economy, Powerhouse of the Eurozone

PARIS — An important reading on the health of the eurozone economy is expected to show this week that growth stagnated in the most recent quarter as German output faltered, confirming the assessment of many analysts that a lasting recovery remains out of reach for the region. Economists are expecting that in the 18-nation currency bloc, gross domestic product expanded 0.1 percent in the second quarter compared with the first quarter, equivalent to an annual rate of growth of 0.4 percent. The eurozone eked out quarterly growth of 0.2 percent in the first three months of the year. The eurozone G.D.P. report, to be released Thursday by the European Union statistical agency, Eurostat, is based on data from before the latest tensions over Ukraine, and before the sanctions against Russia for its involvement in the crisis began to be felt. That means there are plenty of questions hanging over […]

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Ukraine Approves Red Cross-Led Aid Mission to East

Ukrainian forces on Monday zeroed in on rebel strongholds as the government welcomed an international humanitarian relief mission into the rebellious east involving Russia, the United States and the European Union. The mission will be conducted under the auspices of the International Committee of the Red Cross. The organization said in a statement it is ready to facilitate the operation with the involvement of all sides concerned following a Russian initiative to provide humanitarian assistance to people in eastern Ukraine. It wasn’t clear when the deliveries would start. "The practical details of this operation need to be clarified before this initiative can move forward," said Laurent Corbaz, the ICRC’s head of operations for Europe and Central Asia. Moscow had long urged Kiev to allow the aid delivery, but Ukraine and the West previously had opposed the move, fearing that it could serve as a pretext for […]

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Russia sending aid convoy to Ukraine despite Western warnings of ‘invasion pretext’

President Vladimir Putin said on Monday Russia is sending an aid convoy to eastern Ukraine despite urgent Western warnings against using humanitarian help as a pretext for an invasion. With Ukraine reporting Russia has massed 45,000 troops on its border, NATO said there was a "high probability" that Moscow could intervene militarily in the country’s east, where Kiev’s forces are closing in on pro-Russian separatists. Western countries believe that Putin – who has whipped up the passions of Russians with a nationalist campaign in state-controlled media since annexing Crimea from Ukraine in March – could now send his forces into the east to head off a humiliating rebel defeat. Thousands of people are believed to be short of water, electricity and medical aid due to the fighting, but U.S. President Barack Obama told his Ukrainian counterpart that any Russian intervention without Kiev’s consent would be unacceptable […]

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Russia sending aid convoy to Ukraine despite Western warnings of 'invasion pretext'

President Vladimir Putin said on Monday Russia is sending an aid convoy to eastern Ukraine despite urgent Western warnings against using humanitarian help as a pretext for an invasion. With Ukraine reporting Russia has massed 45,000 troops on its border, NATO said there was a "high probability" that Moscow could intervene militarily in the country’s east, where Kiev’s forces are closing in on pro-Russian separatists. Western countries believe that Putin – who has whipped up the passions of Russians with a nationalist campaign in state-controlled media since annexing Crimea from Ukraine in March – could now send his forces into the east to head off a humiliating rebel defeat. Thousands of people are believed to be short of water, electricity and medical aid due to the fighting, but U.S. President Barack Obama told his Ukrainian counterpart that any Russian intervention without Kiev’s consent would be unacceptable […]

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Ukraine Says It Is Near End of Operation to Surround Rebels

The Red Cross said it’s working on getting aid to rebel-held areas of east Ukraine, where government forces have encircled major cities, as the U.S. warned Russia not to use the mission to send in troops. The situation in the city of Luhansk and other areas “is critical — thousands of people are reported to be without access to water, electricity and medical aid,” Laurent Corbaz, the head of the International Committee of the Red Cross ’s operations for Europe, said in an e-mailed statement today. Still, “the practical details of this operation need to be clarified before this initiative can move forward.” The ICRC met with Ukrainian and the Russian authorities and passed on documents specifying the manner in which such an operation could take place, the Geneva-based organization said. One requirement is that all sides must guarantee the security of Red Cross staff and vehicles for the […]

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Rumors fly over EU, Russian, Ukrainian gas talks

Russian state media reports Monday sources inside the European Union say they expect to hold another round of gas talks with Russia and Ukraine in September. "A meeting on energy issues is being prepared, in particular on gas," a source in the European Union was quoted as telling Russia’s state-controlled RIA Novosti . "I hope that the trilateral ministerial format will resume in September." Last week, citing a source in the Russian Energy Ministry, RIA reported talks between Russian Energy Minister Alexander Novak and European Energy Commissioner Gunther Oettinger were scheduled for the end of August . European leaders are trying to diversify a natural gas sector that depends heavily on Russia. Most of the gas Russia sends to Europe runs through a Soviet-era pipeline network in Ukraine and ongoing crises there add a layer of risk to the European energy sector. No venue was announced […]

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Ukraine Rebuffs Rebels’ Cease-Fire Call; Sanctions Mulled

Ukraine’s military demanded that pro-Russian rebels surrender and dismissed their offer of a cease-fire as lawmakers prepared to consider sanctions that may curb Russian shipments of natural gas to Europe . “If there’s an initiative, it should be implemented by practical means, not only with words — by raising white flags and putting down weapons,” Andriy Lysenko, a spokesman for the country’s military, told reporters yesterday in Kiev. “In that case, no one will shoot at them.” Ukraine is trying to dislodge thousands of separatists from its easternmost regions, where its U.S and European allies say President Vladimir Putin has been stoking deadly unrest for months. Russia , which denies involvement, wants its neighbor’s military campaign to end and is offering assistance to tackle what it describes as a worsening humanitarian disaster. As ties between the former Soviet allies sour further, lawmakers in Kiev will vote tomorrow on a […]

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Ukraine Troops ‘Tighten the Ring’ Around Donetsk

A woman holds a newborn baby inside a bomb shelter in a maternity hospital during shelling in Donetsk, eastern Ukraine, where pro-Russian rebels were vowing to make a final stand. Agence France-Presse/Getty Images Intensifying gunfire and explosions rocked Donetsk again Sunday as Ukrainian forces fought to complete the encirclement of pro-Russia insurgents in their largest remaining stronghold. Amid warnings by the rebels of civilian suffering, Russia said it was in talks with Kiev and international agencies about delivering humanitarian relief to the rebel-held cities. Overnight, troops advanced to "tighten the ring" around Donetsk, destroying "a large quantity of armor" and killing many insurgents, the Ukrainian command said. The Donetsk city council said that during a "massive bombardment from heavy weapons," shells hit an outpatient clinic, a private house and other civilian infrastructure, injuring one woman. The separatists said they are turning Donetsk into a military camp and described conditions […]

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Ukraine Troops 'Tighten the Ring' Around Donetsk

A woman holds a newborn baby inside a bomb shelter in a maternity hospital during shelling in Donetsk, eastern Ukraine, where pro-Russian rebels were vowing to make a final stand. Agence France-Presse/Getty Images Intensifying gunfire and explosions rocked Donetsk again Sunday as Ukrainian forces fought to complete the encirclement of pro-Russia insurgents in their largest remaining stronghold. Amid warnings by the rebels of civilian suffering, Russia said it was in talks with Kiev and international agencies about delivering humanitarian relief to the rebel-held cities. Overnight, troops advanced to "tighten the ring" around Donetsk, destroying "a large quantity of armor" and killing many insurgents, the Ukrainian command said. The Donetsk city council said that during a "massive bombardment from heavy weapons," shells hit an outpatient clinic, a private house and other civilian infrastructure, injuring one woman. The separatists said they are turning Donetsk into a military camp and described conditions […]

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US sanctions not mere ‘trifles’ for Russia’s oil industry

Gennady Timchenko is grounded. Ever since the Russian billionaire and friend of Vladimir Putin was hit by US sanctions back in March, his private jet has been stuck on the tarmac: Gulfstream will not service it or provide spare parts. In an interview with the ITAR-TASS news agency this week, Mr Timchenko admitted that the US penalties had caused him “certain difficulties” – but these were “trifles” compared with the task of safeguarding Russia’s national interests. More On this topic IN Oil & Gas Mr Timchenko is one of the most high-profile targets of a sanctions campaign aimed at Russia’s most strategic industry – oil and gas. Last month the US Treasury in effect barred Rosneft and Novatek , in which Mr Timchenko has a 23 per cent stake, from long-term US capital markets. Yet such sanctions could turn out to be as trifling as Mr Timchenko’s little local […]

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