Saturday, April 12, 2014

Ukraine's foreign minister blamed Russia for the unrest, and demanded that Moscow end what he called "provocative actions" by its agents in eastern Ukraine.
Andrii Deshchytsia, acting foreign minister, said he had spoken in a phone call with his Russian counterpart, Sergei Lavrov.
The occupations are a potential flashpoint because if the militants are killed or hurt by Ukrainian forces, that could prompt the Kremlin to intervene to protect the local Russian-speaking population – a repeat of the scenario in the Crimea region when Russian troops were sent in.
Russia denies providing any support to the militants, who have seized four government buildings in the east of the former Soviet republic, apparently emboldened by Russia's annexation of Ukraine's Crimea region last month.
In a further sign of the increasing tensions, Ukraine's state energy company, Naftohaz, has suspended payments to Russia for deliveries of gas until price negotiations between the two countries are concluded.
Earlier this month, Russia’s state energy company Gazprom increased the gas price for Ukrainian consumers from £160 to £290 per 1,000 cubic metres (tcm), saying Kiev was no longer eligible for previous discounts.
Ukraine is believed to have already stopped making payments, following its reported failure to pay an instalment worth almost £300 million earlier this month to Gazprom.
Andriy Kobolev, the chief executive of Naftohaz, said the increased price Russia was demanding for its gas was unjustified and unacceptable.
“The question of repayment of debt is directly linked to the maintenance of gas prices at the level of the first quarter," Mr Kobolev said, in reference to the original price of £160 per tcm.
He added, “We see no reason to revise the price. We consider the price at around £290 as non-market, unjustified and unacceptable.
“Accordingly, we have suspended payments for the period of the price negotiations.”
Previously, Ukraine paid a discounted price in return for leasing Russia its Black Sea fleet headquarters in Crimea.
Russia revoked that agreement after annexing the Crimean peninsula last month.

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