Archive for the ‘Ukraine’ Category

Kremlin says worried by pressure on Russian business in …

MOSCOW Kremlin is extremely worried by pressure put in Ukraine on the Russian business, Kremlin spokesman Dmitry Peskov said on Tuesday.

Kiev has recently imposed sanctions on Sberbank (SBER.MM) and other Russian state-owned banks operating in Ukraine as part of a broader flare-up in tensions linked to separatist regions of eastern Ukraine which are backed by Russia.

Russian media has also reported that some Ukrainian nationalists have staged protests over Russian business in Ukraine.

"We've been following this and are extremely worried," Kremlin spokesman Dmitry Peskov told a regular phone call with journalists.

(Reporting by Maria Tsvetkova; writing by Vladimir Soldatkin; editing by Polina Devitt)

NEW YORK Third Avenue Management and its founder Martin Whitman have reached a $14.25 million settlement of a lawsuit by investors who accused the well-known value investment firm of mismanaging a junk bond mutual fund that collapsed in December 2015.

WASHINGTON U.S. President Donald Trump sought to push his crusade for fair trade and more manufacturing jobs back to the top of his agenda on Friday by ordering a study into the causes of U.S. trade deficits and a clampdown on import duty evasion.

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Conflict Escalates Again in Eastern Ukraine: Possible Causes …

The first quarter of 2017 was marked by a renewed escalation of the armed conflict in eastern Ukraine. The increased military confrontation began in the vicinity of Donetsk, at the end of January, when saboteur-reconnaissance groups of Russia-backed militants made an attempt to seize the Avdiivka Coke Plant (ACP)the largest coking enterprise in Europe. Severe fighting around the area continued during FebruaryMarch. Moscow-backed guerrillas heavily shelled Ukrainian troop positions; on one day, as many as 117 instances of heavy weapons fire were recorded coming from the occupied side (Segodnya.ua, March 1). By mid-March, the Russian-supported forces initiated a fight in the direction of the Ukrainian port city of Mariupol (Mariupil) (Hromadskeradio.org, March 19; Censor.net.ua, March 20).

It should be noted the heavy weapons used extensively against Ukrainian regular forces in the battles near Avdiivka and Mariupol include multiple rocket launched systems (MRLS), which in accordance with the Minsk Agreements were supposed to have been withdrawn beyond 70 kilometers from the line of contact. Shelling was also carried out by Russia-backed militants using 122-millimeter (mm) and 152 mm artillery systems, 120 mm and 82 mm mortars, as well as tanks and combat vehicles. Grenade launchers, small arms and sniper fire intensified during these battles as well. In addition, there has been a marked increase in the use of 14.5 mm weapons with greater range and lethality than small arms. The relentless nature of these attacks has caused unusually high levels of injuries. In both areas, MRLS systems fired by the Russia-backed militants caused indiscriminate destruction of residential buildings (UNIAN, March 18; Delovaya Stolica, March 27). The intense use of heavy weapons damaged the infrastructure connected to the ACP, and on January 30 the coke plants industrial cycle had to be stopped (Epravda.com.ua, February 6). A bit over a month later, coke production was restarted, but new damage to high-voltage cables caused by an artillery bombardment forced the shutdown of the Avdiivka plants production again (Korrespondent.net, March 6). On January 31, Ukrainian authorities introduced an emergency situation in Avdiivka in response to the citys electricity and water supply having been disrupted by separatist militants attacks (Donbass.ua, January 31). A partial evacuation of residents from this area took place in early February (5.ua, February 3).

Observers attribute this recent escalation of the conflict to several factors. One of them could reflect the Russia-backed militants continuation of systematic combat actions of varying intensity meant to exhaust the Ukrainian forcesdescribed by the British military expert Glen Grant as waves coming to shore tactics. When a military force pursues such an approach, phases of intensive armed confrontation are interposed by phases of relative calm.

Yet, experience shows that periods of escalation in the Donbas conflict zone are often directly linked to the Kremlins political-diplomatic effortsi.e., a desire to raise the stakes in its negotiations with leaders of European countries and the United States concerning the situation in eastern Ukraine. A similar increase in hostilities took place in earlier years, during key consultations within the framework of the Minsk ceasefire process and on the eve of meetings of the Normandy format (Ukraine, Russia, Germany and France). The current heightened periods of violence, therefore, may at least in part be connected to Washington having recently imposed new sanctions against Russia, as well as in response to the Ukrainian Parliaments (Verkhovna Rada) request that the US Congress grant Ukraine ally status outside the North Atlantic Treaty Organization (NATO) (Unn.com.ua, March 22). With the Kremlin showing no genuine political will to implement its obligations under the Minsk agreements, Russian actionsboth overt and concealedto maintain the conflict in eastern Ukraine and to create zones of controlled instability continue (Segodnya.ua, March 27).

Meanwhile, the Ministry of Defense of Ukraine has linked the intensification of the military confrontation to consequences of the trade blockade of the separatist Donetsk and Luhansk Peoples Republics (DPR, LPR), first initiated by groups of Ukrainian veterans acting without the governments consent (Strana.ua, February 18; see EDM, February 28). In the aftermath of this blockading of railroads linking DPR-LPR territory with the rest of Ukraine, additional representatives of the Russian Main Intelligence Directorate (GRU) popped up in the separatist regions. Moreover, a humanitarian convoy arrived in Donbas from Russia, which may have disguised the shipment of additional military equipment (Unian.net, March 1).

Notably, in the second half of March, sabotage-reconnaissance groups, sniper teams and other units from DPR-LPR completed training in Russian military training centers and in facilities in occupied Donbas organized by Moscow (Depo.ua, March 18). In this regard, attention should be drawn to a series of blasts, which occurred on March 23 at the 65th Arsenal of the Ukrainian Armed Forcesthe largest Ukrainian ammunition depot, located near the northeastern town of Balakliia. Given the fact that the housed munitions exploded simultaneously in several places at the arsenal facility, most experts agree this incident was the result of sabotage (Censor.net.ua, March 25). For safety reasons, the Ukrainian authorities evacuated local residents living within 10 kilometers of the arms depot (Censor.net.ua, March 23).

It is also worth noting the correlation between the mentioned areas where the fighting has escalated. In particular, Mariupols main metallurgical enterprises (Mariupol Metallurgical Combine Ilyich as well as the Azovstal plant) are the main consumers of coke from Avdiivka. But irregular coke supplies caused by months of artillery bombardment have had a serious negative impact on Mariupols iron and steelproducing enterprises (Apostrophe.ua, January 31). Experts believe that if the ACP remains offline for much longer, Ukrainian metallurgists could expect up to a 25 percent reduction in crude iron and steel production. Such cuts may cost the Ukrainian budget at least $2 billion in foreign currency earnings per year (Delovaya Stolica.ua, January 31). Moreover, these enterprises employ around 47,000 workers, so the social and economic consequences for the region due to jobs losses could be significant.

Taken together, the escalation in fighting near Avdiivka and Mariupol is, therefore, most likely connected to the Russian strategy of fomenting controlled instability. Tactically, it looks like the center of gravity for the Russian-separatist combined forces is near Avdiivka; but operationally, it is more focused on Mariupolthe key Ukrainian defensive point on the way to creating a land corridor from the Russian Federation to Crimea. This is why reinforcements of the latest upgraded T-72B3 tanks on the Russian border near Mariupol must be taken seriouslyparticularly in the context of possible Russian offensive scenarios (112.ua, March 24; Donbass.ua, March 27).

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UK court says Ukraine has no ‘justiciable defence’ in $3 …

By Karin Strohecker

LONDON (Reuters) - Ukraine has failed to offer a "justiciable" or court-ready defence for not paying back $3 billion lent to it by Russia in 2013, a British court ruled on Wednesday, refusing to send the case to a full trial.

This included a claim that non-payment was a countermeasure against Russian interference with Ukraine's sovereignty.

The case between the two adversarial governments centres on $3 billion lent by Russia in December 2013 to Ukraine under pro-Moscow former President Viktor Yanukovich. The debt was structured in the form of a Eurobond governed by English law.

Moscow wants the bond to be repaid in full but Ukraine, which now has a pro-Western government, says Russia should have participated in a 2015 restructuring of its sovereign Eurobonds

Judge William Blair said in the pre-trial hearing the court had given the case careful consideration but added:

"Ultimately this is a claim for repayment of debt instruments to which the court has held there is no justiciable defence. It would not be right to order the case to go forward to a full trial in such circumstances."

Ukraine said it would appeal the ruling.

Russia had requested the UK court for a summary judgement -- a move often used to speed up procedures -- meaning the court after examining Ukraine's defence arguments would decide if they are likely to stand up in court.

Ukraine had put forward four pillars of defence.

It said its then-government had lacked the capacity to enter into the agreement with Russia, that the debt was incurred under duress, the terms attached to the issue were unfair and finally, that non-payment was a countermeasure against Russian interference in its economy and territory.

Russia annexed Ukraine's Crimea region in 2014.

The judge acknowledged that Ukraine had made a strong case regarding the economic pressure and Russian threats which led to Kiev accepting Russia's financial support in 2013, rather than signing an European Union accession agreement.

But he added that the arguments on duress and countermeasures both concerned international law -- which the court could not consider.

Ukraine's ministry of finance would also have had the usual authority to enter into a deal like that, the judge added.

The judge has written in the past on the concept of "odious debt", a term used to describe debt incurred by a government that does not serve the interest of the country.

Ukraine's Finance Minister Oleksandr Danykyuk said his country had received the judge's permission to appeal and had been granted a stay of execution until at least late-April.

Legal experts expected the court of appeal would hear the case later this year, or possibly in early 2018.

"The bottom line is that litigation will most likely continue and Ukraine will not be forced to pay Russia until 2019, when the rest of the bonds come due anyway," said Evghenia Sleptsova, an economist for Central and Eastern Europe at Oxford Economics.

The first of new Eurobonds issued as part of the debt restructuring seen widely as investor friendly matures on September 2019, the last one in the series in 2027.

(Additional reporting by Natalia Zinets in Kiev and Sujata Rao in London; Editing by Jeremy Gaunt)

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Ukraine Marriage Guide | How to Marry Ukrainian Wife

Tillerson: US to maintain Ukraine-related sanctions on Russia until Crimea is returned – CNN

The comments are notable given President Donald Trump's at-times reluctance to criticize Russia over its actions in Crimea, though he did declare last month that the territory was "taken" by Russia. As a candidate, Trump hinted he might recognize Russia's annexation of Crimea, and sources have previously told CNN that Ukraine-related sanctions were on the table for review as part of Trump's interest in pursuing warmer ties with Moscow.

"American and NATO support for Ukraine remains steadfast. As we have repeated at every ministerial and summit since Russia launched its campaign of aggression against Ukraine, NATO allies stand firm in our support of Ukraine's sovereignty and territorial integrity," Tillerson said at a NATO meeting at the organization's headquarters in Brussels. "We do not, and will not, accept Russian efforts to change the borders of territory of Ukraine."

He added, "We will continue to hold Russia accountable to its Minsk commitments. The United States sanctions will remain until Moscow reverses the actions that triggered our sanctions."

Earlier Friday, Tillerson and Defense Secretary James Mattis criticized Russian actions in overseas comments aimed at reassuring US allies.

Mattis, appearing with his British counterpart in London, also called out the Putin regime for "mucking around" in other people's elections -- a particularly notable claim coming at a time when federal and congressional investigators are probing alleged Russian meddling in the US elections last November.

"We look to engaging with Russia on a political or diplomatic level, but right now, Russia is choosing to be a strategic competitor," Mattis said during a news conference with Michael Fallon, the UK defense secretary. "We are going to have to carve out diplomatically some kind of maneuver room here, assuming Russia can change its behavior and act in accordance with international norms and international law."

He also said "Russian activity" in Afghanistan "gives us concern," though he stopped short of saying the Putin government was arming the Taliban.

In response to Mattis, Alexey Pushkov, a senior Russian lawmaker, tweeted, "New US administration sounds just like the old one Mattis is indistinguishable from (former Defense Secretary Ash) Carter, Tillerson is talking about 'Russian aggression.' (Barack) Obama and (Hillary) Clinton must be happy."

Tillerson is in Brussels to reinforce US commitment to NATO -- an organization Trump has repeatedly criticized -- and referred to the alliance as "the bedrock for transatlantic security."

"We understand that a threat against one of us is a threat against all of us, and we will respond accordingly. We will uphold the agreements we have made to defend our allies," he added.

The Trump administration's top diplomat, however, reiterated on Friday Trump's call for members to increase their financial contributions to the organization.

"Our goal should be to agree at the May leaders meeting that by the end of the year, all allies will have either met the pledge guidelines or will have developed plans that clearly articulate how, with annual milestone progress commitments, the pledge will be fulfilled," Tillerson told the ministers.

According to one senior administration official, this isn't necessarily because Trump's view of Putin has evolved. But Trump believes in the current atmosphere -- with so much media scrutiny and ongoing probes into Trump-Russia ties and election meddling -- that it won't be possible to "make a deal," as the President himself has framed it, the officials said.

One of the White House officials said the President was particularly "frustrated" in a meeting in the Oval Office with newly minted national security adviser H.R. McMaster and other top officials in the wake of Russia's February cruise missile deployment -- an apparent treaty violation.

This official said that with each violation from Russia, the President views it as that much harder to make amends. The President is not closing the door on engaging with Russia on a variety of issues -- including Syria, Ukraine and combating ISIS -- but the administration is not optimistic at the moment.

CNN's Nicole Gaouette, Sara Murray, Elizabeth Landers, Eugene Scott, Mary Ilyushina and Matthew Chance contributed to this report.

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Tillerson: US to maintain Ukraine-related sanctions on Russia until Crimea is returned - CNN