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Europe Daily Bulletin No. 11031
EXTERNAL ACTION / (ae) ukraine

EU threatens to challenge its relations with Russia

Brussels, 04/03/2014 (Agence Europe) - On Monday 3 March, the EU foreign affairs ministers threatened to challenge relations between the EU and Russia, and to implement “targeted” sanctions if there is no withdrawal of Russian troops in Ukraine or dialogue.

“In the absence of de-escalating steps by Russia, the Council agreed that it would decide about consequences such as suspending bilateral talks” between the EU and Russia, according to the Council conclusions. The text mentions “suspending bilateral talks with Russia on visa matters” as well as on a new partnership and cooperation agreement. The EU “will consider further targeted measures”, the conclusions state, without further details on the people or entities that could be targeted. “The Council decides to remain permanently seized, in order to be in a position to take rapidly all necessary measures”, the ministers state. The targeted measures could be aimed at high level leaders. Poland's Foreign Affairs Minister Radoslaw Sikorski also mentioned possible sanctions linked to gas.

EU to unveil the outline of its aid on Wednesday. On 4 March, the European Commission announced that the college of commissioners was due to approve economic and financial aid for Ukraine on Wednesday 5 March - without giving further detail on the amount at stake. This aid will come from the European budget and should help the urgent short-term, and also medium-term, needs of Ukraine. “This will represent the contribution from the EU and it is only one of the elements” said Maja Kocijancic, the spokesperson for High Representative of the EU for Foreign Affairs and Security Policy Catherine Ashton. Indeed, the EU is ready to continue its efforts with the international community and international financial institutions - particularly the IMF - to help Ukraine, said the foreign affairs ministers the previous day. The new government in Kiev has said it needs a total of $35 billion over two years, and expects $15 billion from the IMF for this year. These sums are far from those being mentioned in Brussels, where the association agreement that the EU had offered Ukraine was due to be accompanied by a financial envelope of around €610 million. The mobilisation of other European funds could enable a few hundred million more - around €500 million according to unconfirmed figures. US Secretary of State John Kerry said last week that the EU was reflecting on an envelope of $1.5 billion, which would serve as a loan guarantee. According to a European source, this sum corresponds to the total envelope that is provided for Ukraine under the 2014-2020 EU budget. An expert mission from the European Commission arrived in Kiev on Monday to begin assessing Ukraine's financial needs. It is due to remain there for about a week and to be in close contact with the teams from the IMF, who arrived on Tuesday.

Withdrawal of troops.

The EU condemns “the clear violation of Ukrainian sovereignty and territorial integrity by acts of aggression by the Russian armed forces as well as the authorisation given by the Federation Council of Russia on 1 March for the use of the armed forces on the territory of Ukraine”. These actions are “in clear breach” of international rules and Russia's commitments. The de-escalation measures called for by the EU are the withdrawal of Russian armed forces “to the areas of their permanent stationing”. The Council reiterates that the Ukrainian constitution “specifically recognises the territorial integrity of the country and states that the Autonomous Republic of Crimea can only organise referenda on local matters but not on the modification of the territorial configuration of Ukraine”.

During a press conference, Ashton spoke of the “flyover” of Ukraine and “movements of military personnel in several areas”.

On Tuesday 4 March, Russia's President Vladimir Putin ordered Russian troops engaged in military manoeuvres in a region bordering Ukraine to return to their stations but the spokesperson of the Kremlin denied that there was a link with the events in Ukraine.

Call for dialogue.

The EU also wants Russia to accept “without delay” Ukraine's demand to hold “bilateral consultations” and to take part in “urgent consultations among all signatories and adherents of the Budapest Memorandum of 1994” - a memorandum that guarantees the territorial integrity of the country and signed by Russia, the UK and the US.

Calling for a “peaceful solution to the current crisis and full respect of the principles of and obligations under international law”, the EU “remains ready to engage in and promote any constructive dialogue with all parties aimed at reaching such a peaceful solution”, the EU foreign affairs ministers add.

They state that these efforts will be made working with the UN, the OSCE, and other international actors. They also mention mediation efforts at international level and welcome a possible OSCE fact finding mission.

Like Ashton, Germany's Foreign Affairs Minister Frank-Walter Steinmeier met his Russian counterpart, Sergei Lavrov, on Tuesday 4 March, during a “difficult, long and very serious” meeting, he said. Steinmeier is not in a position to “launch a distant signal that we are on the right track to finding a solution and Ukraine and Russia will talk to each other”. In his view, the time remaining until the European Council on Thursday 6 March should be used to see if there is a possibility of creating an international contact group to bring down the tension.

Ukrainian prime minister to take part in European Council.

In their conclusions, the ministers also commend “the measured response demonstrated so far by Ukraine”. Ukraine's Prime Minister Arseniy Yatsenyuk will, moreover, attend part of the European Council on Thursday to explain the situation in his country and its needs. The extraordinary European Council on the crisis in Ukraine is due to begin at 11.30am on Thursday and finish at around 3.00pm. In its conclusions, the Council on Tuesday also reaffirms “the utmost importance of ensuring (…) full protection of national minorities” at a time when Russia justifies its intervention by the defence of the fundamental rights of Russian minorities and Russian speakers. The Council also recalls its conclusions of 20 February on Ukraine regarding the adoption of restrictive measures for the freezing and recovery of assets of persons identified as responsible for the misappropriation of state funds, and the freezing of assets of persons responsible for human rights violations. The Council will also work on this issue because there has currently been no measure taken. Lithuania has reportedly decided on a visa ban for fallen Ukrainian president Viktor Yanukovych and for 17 former Ukrainian officials.

The EU foreign affairs ministers also re-assert their offer regarding the association agreement and state that the agreement “does not constitute the final goal in EU-Ukraine cooperation”.

Detail.

In the article on Ukraine (see EUROPE 11030), please note that David Lidington is British Secretary of State for Foreign and Commonwealth Affairs. (CG)

Contents

A LOOK BEHIND THE NEWS
EXTERNAL ACTION
SECTORAL POLICIES
ECONOMY - FINANCE
INSTITUTIONAL
COURT OF JUSTICE OF THE EU
SUPPLEMENT