Friday, October 31, 2014

Ukraine’s Elections Mark a Historic Break With Russia and Its Soviet Past

With more than half the votes counted in the country's parliamentary ballot, an unprecedented national consensus has emerged in support of a lasting break with Moscow and a turn toward European integration

“For that I congratulate you,” the Ukrainian leader told his countrymen. “The people’s judgment, which is higher than all but the judgment of God, has issued a death sentence to the Communist Party of Ukraine.” For the first time since the Russian revolution of 1917 swept across Ukraine and turned it into a Soviet satellite, there would be no communists in the nation’s parliament.
With half the ballots counted on Monday, his political party was projected to get the most votes and more than a quarter of the seats in parliament. The party of his ally, Prime Minister Arseniy Yatsenyuk, was in a close second place, setting them up to form a ruling coalition of Westernizers and Ukrainian nationalists. They will likely need no support from the shrunken ranks of the pro-Russian parties in order to pass legislation and constitutional reform.Their defeat, though largely symbolic, epitomized the transformation of Ukraine that began with this year’s revolution and, in many respects, ended with the ballot on Sunday. If the communists and other pro-Russian parties had enormous influence in Ukraine before the uprising and a firm base of support in the eastern half of the country, they are now all but irrelevant. The pro-Western leaders of the revolution, by contrast, saw a resounding victory over the weekend for their agenda of European integration. “More than three-quarters of voters who cast their ballots showed firm and irreversible support for Ukraine’s course toward Europe,” Poroshenko said in his televised address.
In many ways they have Russian President Vladimir Putin to thank for that success. Since the revolution overthrew his allies in Ukraine in February, Putin has alienated most of the Ukrainian voters who had previously supported close ties with Moscow. His decision to invade and annex the region of Crimea in March, when Ukraine was just emerging from the turmoil of the revolution, awakened a hatred toward Russia in Ukraine unlike any the two countries had seen in centuries of unity and peaceful coexistence. Putin’s subsequent support for Ukrainian separatists, who are still fighting to turn the country’s eastern provinces into protectorates of Moscow, sealed the divide between these once fraternal nations.
Nowhere has that been more apparent than in the results of Sunday’s ballot. The only party that made it into parliament with an agenda of repairing ties with Moscow was the so-called Opposition Bloc, which was forecast to take fourth place with less than 10% of the vote. Only a year ago, its politicians were part of the ruling coalition in Ukraine made up of the Communist Party and the Party of Regions, whose leader, Viktor Yanukovych, had won the presidential race in 2010 on a platform of brotherly ties with Russia. Now Yanukovych, who was chased from power in February, has taken refuge in Russia at Putin’s invitation, while his Party of Regions was so certain of defeat in this weekend’s elections that it decided not to run. Whatever chance remained for Putin to keep his allies in power in Ukraine now looks to have been lost, and with it he loses his dream of forming a new political alliance made up of the biggest states in the former Soviet Union.
Putin’s narrative about far-right radicals taking power in Ukraine — during a speech in March, he referred to the leaders of the revolution as a bunch of “neo-Nazis, Russophobes and anti-Semites” — was also exposed as a fabrication in the course of Sunday’s ballot. Though hard-line nationalists did play a key role in the revolution, few of them made it into parliament. The right-wing Svoboda (Freedom) Party is expected to get around 6% of the vote, roughly the same as the populists from the Radical Party, just squeaking by the 5% minimum needed to enter the legislature. The ultra-nationalist party known as Right Sector, which Russian state media has cast as the demonic force behind Ukraine’s new government, failed to make it past the post with its projected 2%.
But the real threat to Russia was never from the demagogues of the Ukrainian right. It was from the politicians like President Poroshenko who are determined to set Ukraine on a path toward joining the European Union. That path will not be easy, as Western leaders are hardly eager to welcome Ukraine’s failing economy and its 45 million citizens into the E.U. But the national consensus behind European integration, and the lasting break with Russia that this agenda entails, is now stronger than at any point in Ukraine’s post-Soviet history.

Russia 'wants to destroy Ukraine' says Kiev as fighting flares

Ukraine’s prime minister accused Russian President Vladimir Putin of planning to destroy his country on Saturday, as Kiev said it had repelled a rebel attack on the government-held airport in Donetsk that came despite a ceasefire being in place.

Prime Minister Arseny Yatseniuk said only membership of NATO would enable Ukraine to defend itself from external aggression.
Kiev and its Western backers accuse Moscow of sending troops and tanks into eastern Ukraine in support of pro-Russian separatists battling Ukrainian forces in a conflict that has killed more than 3,000 people. Russia denies the accusations.
ceasefire negotiated by envoys from Ukraine, Russia, the separatists and Europe’s OSCE security watchdog, has been in place in eastern Ukraine since Sept. 5 and is broadly holding despite regular but sporadic violations, especially in key flashpoints such as Donetsk.
On Saturday, Ukraine’s military operation in the east said it had repelled a rebel attack on the government-held airport of Donetsk, which came under artillery fire from rebel positions late on Friday. Ukrainian authorities also admitted for the first time since the ceasefire started last week that they have inflicted casualties on the rebel side.
Continuous rocket fire could be heard overnight in Donetsk, the largest city of the region with a pre-war population of about one million.
A statement on the city council website said that shells hit residential buildings near the airport, although no casualties were reported. A column of three Grad rocket launchers – all its rockets still in place – was seen moving freely through the rebel-held city on Saturday morning.
On Saturday afternoon, a Reuters reporter heard heavy artillery fire in northern districts of Donetsk and saw plumes of black smoke above the airport.
Speaking at a conference in Kiev attended by Ukrainian and European lawmakers and business leaders on Saturday, Yatseniuk made clear he did not view the ceasefire as the start of a sustainable peace process because of Putin’s ambitions.
“We are still in a stage of war and the key aggressor is the Russian Federation ... Putin wants another frozen conflict (in eastern Ukraine),” said Yatseniuk, a longtime fierce critic of Moscow and a supporter of Ukraine’s eventual NATO membership.
Yatseniuk said Putin would not be content only with Crimea - annexed by Moscow in March - and with Ukraine’s mainly Russian-speaking eastern region.
“His goal is to take all of Ukraine ... Russia is a threat to the global order and to the security of the whole of Europe.”
YATSENIUK: PUTIN WANTS ALL OFF UKRAINE
Ukrainian military spokesman Andriy Lysenko told a daily briefing that one soldier and 12 rebels had been killed in the past 24 hours, without specifying where they had died.
That would bring the death toll among Ukrainian forces since the start of the ceasefire eight days ago to six.
The rebels have not said how many of their men have died in the same period.
Government forces still hold Donetsk airport, while the city is in separatist hands.
Putin says Russia has the right to defend its ethnic kin beyond its borders, though Moscow denies arming the rebels and helped broker the current ceasefire with Kiev.
Asked about future NATO membership, a red line for Russia, Yatseniuk said he realised the alliance was not ready now to admit Kiev, but added: “NATO in these particular circumstances is the only vehicle to protect Ukraine.”
There is no prospect of the Atlantic alliance admitting Ukraine, a sprawling country of 45 million people between central Europe and Russia, but Kiev has stepped up cooperation with NATO in a range of areas and has pressed member states to sell it weapons to help defeat the separatists.
Humanitarian aid
On Saturday, about 100 Russian lorries arrived in the war-ravaged eastern city of Luhansk, part of a convoy sent to deliver 1,800 tonnes of humanitarian aid to residents.
It is the second such Russian aid convoy and it passed the border without any major difficulty. The first convoy in August was denounced by Ukraine and its Western allies for crossing the border without Kiev’s permission.
The Ukraine conflict has triggered several waves of Western sanctions against Russia, most recently on Friday. The new measures, branded by Putin as “a bit strange” in view of the ceasefire, target banks and oil companies.
Russia, which has already introduced bans on a range of US and European food imports, signalled it would respond with further sanctions of its own against Western interests.
Yatseniuk said on Saturday the latest sanctions posed a big threat to the Russian economy.
“It is bluff (by Russia) to say it does not care about the sanctions,” he said, noting that Russia relied heavily on its energy sector and some of the sanctions targeted its oil firms.
Yatseniuk defended his government’s efforts, despite the conflict, to tackle rampant corruption and overhaul the creaking economy, adding: “It is very hard to attract investors when you have Russian tanks and artillery in your country.”
His centre-right People’s Front party is expected to do well in a parliamentary election on Oct. 26.
The conflict is taking a heavy toll on Ukraine’s already battered economy, which is now being supported by a 17 billion dollar loan package from the International Monetary Fund.
The economy could shrink by as much as 10 percent this year, the head of Ukraine’s central bank, Valeria Hontareva, was quoted by Interfax news agency as saying on Saturday, much more than the 6.5 percent decrease previously forecast by the IMF.
Yatseniuk praised a decision on Friday to delay the implementation of a new trade pact with the European Union until the end of 2015. He said it prolonged unilateral trade benefits now enjoyed by Ukrainian firms in the EU while maintaining modest customs duties on European products entering Ukraine.
Some have seen the decision to postpone the implementation of the deal as a diplomatic victory for Russia, which is opposed to closer economic ties between Kiev and the EU, but Yatseniuk said it would be good for Ukraine’s own economy.
“We got a grace period. The EU opened its markets but Ukraine is still protected, so for Ukraine this is not a bad deal,” he said.
Deputy Foreign Minister Danylo Lubkivsky submitted his resignation, saying: “(The delay) sends the wrong signal - to the aggressor, to our allies and, above all, to Ukrainian citizens.”
(FRANCE 24 with AP, REUTERS)

Ukraine set to ratify EU pact and offer rebels self-rule

Lawmakers in the Ukrainian and European parliaments are scheduled to sign the 1,200-page political and economic association agreement during a live video hookup from 10am GMT.
But the historic occasion has been muted by both sides' decision to bow to Russian pressure and delay for two years the free trade rules that pulled Ukraine out of a rival union being built by Moscow.
The rejection of the same deal by Kremlin-backed president Viktor Yanukovich in November 2013 triggered the bloody chain of events that led to his February ouster and Russia's subsequent seizure of Ukraine's Crimea peninsula.
The defiant decision by Kiev's new pro-Western leaders to go ahead with the EU deal saw Moscow cut off its neighbour's supply of Russian gas and allegedly orchestrate a separatist revolt in the Russian-speaking east that has now claimed more than 2,700 lives.
Russia denies it is involved in the separatist rebellion. But that has not spared Moscow from waves of punishing Western sanctions that have left President Vladimir Putin increasingly isolated and acting less predictably than at any stage of his dominant 15-year reign.
An EU-mediated truce Kiev and Moscow clinched on September 5 has offered the first significant glimmer of hope that the five-month crisis may at last be abating and allowing East-West tensions to thaw.
But the ceasefire has been repeatedly broken, with six civilians and an unconfirmed number of soldiers killed in a new rebel advance towards the airport near their main eastern stronghold of Donetsk.
Concessions to separatists
Ukrainian President Petro Poroshenko intends to submit to parliament Tuesday a peace package that offers three years of limited self-rule to parts of the rebel-held territory.
It also crucially guarantees the right for Russian to be spoken in all state institutions – a particularly sensitive issue for Russian-speaking separatists.
The Ukrainian leader argued on Monday that his plan offers Kiev the best way out of crisis because it guarantees "the sovereignty, territorial integrity and independence of our state".
Parliament is now dominated by government supporters and the measures are likely to pass.
But some political leaders and especially members of right wing groups that played a small but instrumental role in protests that forced out the old regime have questioned whether Poroshenko is ceding too much to Moscow.
Media accounts of the broad-ranging proposal say it allows local legislatures to set up their own police forces and name judges and prosecutors.
Snap local polls on November 9 will establish new councils in the areas in Ukraine's vital coal and steel belt that will seemingly not be accountable to Kiev in any way.
The measures also reportedly protect from criminal prosecution "participants of events in the Donetsk and Lugansk regions" – a measure that appears to apply to both the insurgents and Ukrainian government troops.

Thursday, October 30, 2014

Tens of thousands take to Hungary's streets in latest Internet tax protest

Tens of thousands take to Hungary's streets in latest Internet tax protest 


The unpopular tariff has sparked widespread action against a government many say is growing authoritarian
About 100,000 Hungarians rallied late into the night on Tuesday to protest a planned tax on Internet data traffic and the broader course of Prime Minister Viktor Orban's government, which they see as undermining democracy and relations with the European Union.
It was by far the largest protest since Orban’s center-right government took power in 2010 and pursued policies to redefine many walks of life, drawing accusations of creeping authoritarianism.
Orban's government, which was nonetheless re-elected by a landslide this year, has imposed special taxes on the banking, retail, energy and telecommunications sectors to keep the budget deficit in check, jeopardizing profits in some parts of the economy and unnerving international investors.
The Internet data levy idea was first floated in the 2015 tax code submitted to the Central European country's parliament last week, triggering objections from Internet service providers and users who felt it was anti-democratic.
This week's protests have been organized largely over Facebook and appeared to draw mostly well-heeled professionals. Tens of thousands have marched through central Budapest for three days now, demanding the repeal of the planned tax and the ouster of Orban.
At Tuesday evening's protests, the largest yet, demonstrators held up makeshift signs that read "ERROR!" and "How many times do you want to skin us?"
Zsolt Varady, an Internet entrepreneur and founder of a now-defunct Hungarian social network iwiw.hu, told the crowd that the tax threatened to undermine Internet freedoms.
Since 2006, Varady said, "People [have been] willing to pay for [Internet] service because they knew, saw and felt that their lives were becoming better … The Internet tax threatens the further growth of the Internet as well as freedom of information."
The government had planned to tax internet data transfers at a rate of 150 forints, or about 60 cents, per gigabyte. After analysts calculated this would total more than the sector's annual revenue and an initial protest drew thousands on Sunday, Fidesz submitted a bill that capped the tax at 700 forints (just under $3) per month for individuals and 5,000 forints ($20) for companies.
As Tuesday's swelling crowds showed, the concession has not quelled Hungarians' outrage.
"I am a student, my parents are not well off, neither am I, so I work hard," said Ildiko Pirk, a 22-year-old studying nursing. "I doubt the Internet companies won't build this tax into their prices. And I have a computer, a smartphone, as does my mother and my four siblings. ... That adds up."
Protesters have also noted that the Internet was widely used to gain access to unbiased news that is not under the control of Hungary's ruling political elite.
But many protesters say the government's other moves have also bothered them, suggesting that the Internet tax has served to ignite wider grievances about perceived mismanagement of the economy and a recent dispute with the United States over alleged corruption of Hungarian public officials.
The Orban government has denied any anti-democratic agenda, saying it aimed only to get all economic sectors to share the tax burden and was tapping into a trend of telecommunications shifting away from already-taxed telephony and text messages.
The European Commission has also criticized the proposed tax, saying that that it was economically misguided because it was based on data traffic now growing rapidly around the world.
"It's part of a pattern ... of actions which have limited freedoms or sought to take rents without achieving a wider economic or social interest," said Ryan Heath, spokesman for outgoing Commission Vice President Neelie Kroes.
Al Jazeera and wire services

U.N. chief condemns planned separatist election in eastern Ukraine


U.N. chief condemns planned separatist election in eastern Ukraine 


UNITED NATIONS Wed Oct 29, 2014 1:05pm EDT 

United Nations Secretary General Ban Ki-moon speaks during the Asia Society's Game Changer Awards at United Nations headquarters in New York October 16, 2014. REUTERS/Lucas Jackson

United Nations Secretary General Ban Ki-moon speaks during the Asia Society's Game Changer Awards at United Nations headquarters in New York October 16, 2014.
CREDIT: REUTERS/LUCAS JACKSON 

(Reuters) - U.N. Secretary-General Ban Ki-moon on Wednesday condemned an election being organized by pro-Russian separatists in eastern Ukraine, saying the vote would violate the country's constitution.
The Nov. 2 vote would be being held in defiance of Ukrainian national elections last Sunday in which pro-Western parties, dedicated to holding the former Soviet republic together and negotiating a settlement to the conflict, triumphed.

"The Secretary-General deplores the planned holding by armed rebel groups in eastern Ukraine of their own 'elections' on Nov. 2, in breach of the constitution and national law," Ban's spokesman Stephane Dujarric said in a statement.

"These 'elections' will seriously undermine the Minsk Protocol and Memorandum, which need to be urgently implemented in full," he added. "The Secretary-General urges all to uphold these agreements and work toward a peaceful resolution of the conflict."

He said it was important to restore stability and safeguard the sovereignty and territorial integrity of Ukraine.
Russia, however, has said it will recognize the election results, an announcement that the Kiev government said could destroy the chance of bringing an end to the conflict.

The dispute over the rebel vote has deepened the discord in the geo-political tussle betweenRussia and the West over the future of Ukraine, going back to the overthrow by protesters of the country's Moscow-backed president in February.

Moscow supports the rebels, but it denies Ukrainian and Western accusations that its troops have taken part in fighting against government forces in a conflict that has killed more than 3,700 people.
(Reporting by Louis Charbonneau; editing by Gunna Dickson)


Russian minister says France ready to deliver controversial warships

Russian minister says France ready to deliver controversial warships 


MOSCOW/PARIS Wed Oct 29, 2014 2:53pm EDT 

(Reuters) - Russia says it has received an invitation to take delivery of the first of two French warships, an arms deal that was cast into doubt by tensions between the West and Russia over Ukraine that led the United States and Europe to impose sanctions on Moscow.
The invitation was sent for Russia to take delivery of the first of two Mistral helicopter carriers from France on Nov. 14, RIA news agency quoted Deputy Prime Minister Dmitry Rogozin as saying on Wednesday. RIA also quoted Rogozin as saying the second vessel would be put afloat the same day.
However, French Defense Minister Jean-Yves Le Drian said on Tuesday Paris would wait until next month to decide whether to deliver the first of the two vessels.
"Everything is going as planned in terms of the technical fulfillment of the contract, and we stick to that," Rogozin was quoted as saying. "As for political decisions, we assume thatFrance should protect its reputation as a reliable partner, including in the military and technical area."
French President Francois Hollande for months resisted pressure from Washington and other allies concerned about Russia's role in Ukraine to scrap the 1.2 billion euro ($1.58 billion) contract.
With as many as 1,000 defense jobs at stake in France, there is immediate concern at home. But more worrying for Paris is what impact the cancellation of the contract would have on future defense export deals and on a defense industry that employs 40,000 people.
Even so, Hollande chose in September to push back the original end-October delivery date. He also said that he would only hand over the first carrier if there was a lasting ceasefire and a political settlement in Ukraine.
Nonetheless, Rogozin used his official Twitter account on Wednesday to tweet a letter dated Oct. 8 from the Mistral's manufacturer, DCNS, inviting Russian officials to a delivery ceremony on Nov. 14 at the Saint Nazaire shipyard where the first carrier, the Vladivostok, is awaiting transfer.
DCNS said it could neither confirm or deny the information. The French state owns a 65 percent stake in DCNS, making it unlikely any letter would have been sent against the wishes of the French government.
Officials at the French presidency, defense and foreign ministries contacted by Reuters said that at this stage no decision had been made on the delivery dates.
"No decision has been taken with regard the Mistral delivery. The decision will be taken during November by the president," a Defense Ministry official said.
Moscow, which expects delivery of a second carrier by the end of 2015, has said it will seek damages if the deliveries are canceled or suspended.
Russia's Mistral purchases would give it access to advanced technology, alarming some of France's NATO allies who consider Paris could be strengthening Moscow militarily.
Western officials on Monday hailed Sunday's Ukraine election. Pro-Western parties are set to dominate parliament, handing President Petro Poroshenko a mandate to end a separatist conflict and to steer the country further away from Russia's orbit towards mainstream Europe.
But after months of conflict he still faces huge problems. Russia opposes his plans to join the European Union, a ceasefire is barely holding between government forces and pro-Russian separatists in the east, and the economy is in dire straits.

Russia may limit Belarus, Ukraine food shipments: RIA

Russia may limit Belarus, Ukraine food shipments: RIA 


MOSCOW/ASTANA Thu Oct 30, 2014 11:58am EDT 

(Reuters) - Moscow may limit food shipments from Belarus and Ukraine to Kazakhstan across Russian territory because of attempts to sell banned imports in Russia, the head of Russia's veterinary and phytosanitary service (VPSS) was quoted as saying on Thursday.
In early August, Russia banned about $9 billion worth of imports of fruit, vegetables, meat, poultry, fish and dairy from the European Union and some other countries in retaliation for Western sanctions over the crisis in Ukraine.
"We will be talking about stopping the transit to Kazakhstan through the borders of Belarus and Ukraine and allowing it only via our checkpoints," RIA news agency quoted Sergei Dankvert as saying.
Russia, Belarus and Kazakhstan have a free-trade zone as part of their customs union, and Minsk has promised to prevent banned foods from being shipped onward to Russia.
Kazakhstan is ready to cooperate with Russia if it plans to discuss the toughening of checkpoint controls on the Russia-EU border, Kazakh deputy national economy minister Madina Abylkasymova told reporters in Astana.
"But an introduction of some kind of restriction on the transit of products that Kazakhstan imports from the European Union is out of the question," she added.
Moscow's VPSS recently reported that 8,000 tonnes of meat, falsely labeled as coming from Brazil and destined for Kazakhstan, had been delivered to Russia via Belarus, Dankvert said.
The service managed to find about 300 tonnes of the meat, while 7,500 tonnes "got lost in Russia", he added.
Russia's veterinary service may also ban pork imports from Belarus due to suspected outbreaks of African swine fever, the service said. It planned to discuss the issue at a meeting with the Belarussian agriculture ministry on Thursday.
Belarus has suspended shipments of pork to Russia until Nov. 11, when officials plan to discuss the issue again, the service was quoted as saying by Interfax news agency later on Thursday.

Britain ends combat role in Afghanistan; last US Marines hand over base

Britain ends combat role in Afghanistan; last US Marines hand over base  



US and British departure leaves new Afghan president to deal with emboldened Taliban insurgency

Peace negotiators agree to buffer zone in east Ukraine

Negotiators in Ukrainian peace talks agreed early Saturday to create a buffer zone to separate government troops and pro-Russian militants and withdraw heavy weapons and foreign fighters in order to ensure a stable truce in eastern Ukraine.

The deal reached by representatives of Ukraine, Russia, the Moscow-backed rebels and the Organization for Security and Cooperation in Europe marks an effort to add substance to a cease-fire agreement that was signed on Sept. 5 but has been frequently broken by clashes.

The memorandum signed after hours of talks that dragged late into the night says that the conflicting parties should stay strictly where they were Friday and make no attempts to advance.

Leonid Kuchma, a former Ukrainian president who represented the Kiev government in the talks, said the memorandum will be implemented within a day.

Under the terms of the deal, reached in the Belarusian capital, Minsk, each party must pull its artillery at least 15 kilometres (9 miles) back, setting up a buffer zone that would be 30 kilometres (19 miles) wide.

The longer-range artillery systems are to be pulled even farther back to make sure the parties can’t reach one another. The deal also specifically bans flights by combat aircraft over the area of conflict and setting up new minefields.

“It should offer the population a chance to feel secure,” said Igor Plotnitskyi, the leader of rebels in the Luhansk region. The rebels are located near the cities of Donetsk and Luhansk in eastern Ukraine and also halfway to the city of Mariupol south of there on the coast, but their positions outside of these cities are not clear. Ukrainian government forces are at the airport in Donetsk but the location of their lines outside of that city is also unclear.

The memorandum also envisages the withdrawal of “all foreign armed units and weapons, as well as militants and mercenaries” –– a diplomatic reference to Russians fighting alongside the rebels.

Ukraine and the West have accused Russia of fueling the insurgency in eastern Ukraine with weapons and soldiers. Moscow has denied that, saying that Russians who joined the mutiny did so as private citizens. Pressed to comment about the agreement on the withdrawal of foreign fighters, Russian Ambassador to Ukraine, Mikhail Zurabov, who represented Moscow in the talks, said that “those whom we call mercenaries are present on both sides.”

“This issue needs to be solved, and we will deal with it,” he said, adding that the OSCE would control the pullout. Heidi Tagliavini, OSCE’s envoy in the talks, said that the group’s monitors will be deployed to the buffer zone to monitor the cease-fire. The negotiators, however, have left aside the most explosive issue –– the future status of the rebel regions.

The insurgency in the mostly Russian-speaking Donetsk and Luhansk regions in eastern Ukraine flared up after the ouster of Ukraine’s former pro-Russian president in February and Russia’s annexation of Crimea the following month. In April, the rebels seized government buildings in the two provinces and declared them independent.

They fought government troops to a standstill in five months of fighting that have killed more than 3,000 people and devastated the regions that formed Ukraine’s industrial heartland. The Ukrainian crisis has pushed Russia-West relations to their lowest point since the Cold War.

Faced with several rounds of Western sanctions that badly hurt the Russian economy, Russia’s President Vladimir Putin has pushed for a peace deal that would ease Western pressure while protecting Moscow’s interests in Ukraine.

As part of a compromise to end the hostilities, the Ukrainian parliament this week passed a law giving a broad autonomy to the areas controlled by the rebels, including the power to hold local elections and form their own police force.

Alexander Zakharchenko, the leader of rebels in Donetsk, said after the talks that Ukraine and the rebels have conflicting interpretations of the law and the talks should continue.

In Donetsk, the largest rebel-held city in east Ukraine, the separatists held a city-wide cleanup day Friday, sending prisoners out to help remove the debris that has piled up after months of shelling. Throughout the cease-fire, periods of peace have been interrupted by intermittent gunfire. The same was true Friday, when the Donetsk city council said in a statement that one person was killed by shelling during the night. Col. Andriy Lysenko, a spokesman for the National Security and Defense Council, told journalists in Kiev that two servicemen were killed in the past day during the fighting.

The streets were quiet Friday as the rebels called for a cleanup. In one school that was shelled in late August, four Ukrainian prisoners guarded by armed rebels were sweeping up debris.

Gas Deal Still Eludes Ukraine and Russia at EU Talks

(Russian Energy Minister Alexander Novak)

(Reuters) - Ukraine and Russia bargained late into the night on Wednesday but European Union officials trying to broker a deal to resume gas supplies to Kiev as winter sets in said there was still no accord to announce.

At talks in Brussels hosted by energy commissioner Guenther Oettinger two days before he makes way for a new EU executive team, officials cancelled an evening news conference at which they had hoped to announce a deal after months of negotiation.
"Negotiations are ongoing and likely to continue until late in the evening," the European Commission said in a statement at 9 p.m. (1600 ET). "In case of agreement, the press conference is envisaged to take place tomorrow morning at 8:30 a.m."

With Kiev and Moscow locked in conflict over pro-Russian rebellions in Ukraine and over the former Soviet state's move to bind itself closer to the West, the European Union, which also depends heavily on Russian gas, is trying to help overcome wrangling about payments that threatens to disrupt supplies.

Russian state utility Gazprom (GAZP.MM), whose chief executive was attending the talks with Oettinger along with the Russian and Ukrainian energy ministers, halted supplies to Ukraine in June, citing Kiev's unpaid gas bill, which Moscow says is around $4.5 billion.
The EU, which has lending facilities to Ukraine along with the IMF, is looking at releasing more funds. And Germany, a key ally for Ukraine's pro-Western leaders, has spoken of providing international "bridging finance" to see Kiev through the winter.

For months, the gas cut-off has had little impact. But pressure is mounting for a deal as temperatures start to drop below freezing and Oettinger, who has been mediating, prepares to leave office on Friday, making way for a new Commission.