Ukraine Open to Halting Gas Flows in Russia Sanctions
By Daria Marchak and Volodymyr Verbyany Aug 8, 2014 10:47 AM ET
Ukraine said it’s open to halting Russian gas supplies to Europe through the country as it plans sanctions on President Vladimir Putin’s government as part of its battle against pro-Russian separatists.
The list of possible sanctions includes a “complete or partial ban on the transit of all resources,” Prime Minister Arseniy Yatsenyuk told reporters in Kiev today in response to a question about halting gas flows. Measures may also include a ban on Russian planes overflying Ukraine, he said, while defense-industry cooperation will be reduced. A draft law, which requires parliamentary approval, also proposes restrictions on ships entering Ukrainian waters.
“There’s no doubt that Russia will continue its course -- started a decade ago -- aimed at banning imports of Ukrainian goods, limiting cooperation with Ukraine, pressure and blackmail,” Yatsenyuk said. “In the most negative scenario for Ukraine, losses during the first year may reach $7 billion, not only because of sanctions but also because of the Kremlin’s aggressive policy.”
Gas prices in western Europe rose on news of the plan, which came two days after Russia banned food imports from the U.S., the European Union and other countries in response to sanctions over the Ukraine conflict. A range of Ukrainian products are also subject to import bans. Ukraine’s military said it’s closing in on rebel strongholds in the east, amid rising casualties. Russia denies any role in the conflict.
Ukraine didn’t say how it would cope through the winter were Russia to retaliate to a gas transit ban by cutting off all supplies. It’s been lowering its dependency on Russian gas imports, which accounted for about half its consumption of the fuel last year.
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http://www.bloomberg.com/news/2014-08-08/ukraine-says-it-s-tightening-encirclement-of-rebels.html
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