• Lara 7:22 pm on February 28, 2015
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    Nemtsov Sought to Show Russia Is in Ukraine, Poroshenko Says

    (Bloomberg) — Ukrainian President Petro Poroshenko said
    his “friend” Boris Nemtsov, a Russian opposition leader gunned
    down on a sidewalk near the Kremlin overnight, wanted to show
    proof that his country’s troops are in Ukraine.

    Nemtsov, who was scheduled to lead a Sunday protest against
    Russian President Vladimir Putin and the conflict in Ukraine,
    was working on a report about Russia’s involvement, according to
    fellow opposition activist Ilya Yashin. His murder happened just
    before artillery fell mostly silent for the second time in a
    week as government forces and the separatists said they were
    pulling back weapons in line with a Feb. 15 cease-fire.

    “A few weeks ago I spoke to him about how to build
    relations between Ukraine and Russia,” Poroshenko was cited as
    saying by news service Interfax. “Boris declared that he must
    show convincing proof of Russian troops’ participation in
    Ukraine. Someone was afraid of that very much. Boris wasn’t
    afraid, but his executioners were. They killed him.”

    Ukraine accuses Putin of stoking the war by supplying
    separatists with weapons, cash, intelligence and troops from
    across the border in Russia. Putin rejects the accusations. The
    European Union and the U.S. have threatened to intensify
    sanctions against Russia if Putin doesn’t use his sway to help
    stop the conflict, which has killed more than 5,600 people and
    brought ties between the Cold War foes to their lowest level
    since the fall of the Iron Curtain.

    Arms Withdrawal

    Russia’s opposition blamed the government for creating the
    atmosphere that led to the assassination and scheduled a march
    through the Russian capital to replace Sunday’s protest rally.

    “One of not many whom I can call a friend,” Poroshenko
    said on Facebook on Saturday. “He was a bridge between Ukraine
    and Russia. It’s ruined by murderers, I think not
    accidentally.”

    The rebels continue to amass weapons, munitions and
    fighters, and Russia continues to send them supplies from across
    the border, Ukrainian military spokesman Andriy Lysenko said in
    Kyiv on Saturday.

    In Ukraine’s conflict area, militia in the self-proclaimed
    Donetsk People’s Republic began a new stage of withdrawing heavy
    arms Saturday morning, according to the separatist-run DAN news
    service.

    Shelling ceased across most of the eastern region
    overnight, with some sporadic rebel fire still continuing around
    Donetsk, the Defense Ministry said in a statement.

    Hryvnia Panic

    The pull-back of heavy weapons is a key part of the cease-fire and is meant to be followed with intensified monitoring by
    officials from the Organization for Security and Cooperation in
    Europe. OSCE officials said this week that separatists are still
    restricting access for their observers.

    A pause in fighting may give Ukraine breathing space to
    deal with a spiraling currency crisis and the threat of Russia
    cutting off natural gas supplies. The nation is still awaiting a
    disbursement from a $17.5 billion International Monetary Fund
    rescue. Investors are also nearing talks to ease terms on the
    government’s foreign debt.

    The hryvnia has plunged more than 40 percent this year amid
    a deepening recession and international reserves at the lowest
    in at least a decade. Ukraine’s central bank tightened capital
    controls this week and announced more curbs may be on the way to
    stop the currency’s meltdown.

    “Panic must be stopped and we are doing that now,”
    National Bank of Ukraine Governor Valeriya Gontareva said on
    Friday in Kyiv.

    Gas Talks

    Gas shipments have been another flashpoint. A dispute
    reignited last week over supplies to rebel-held areas in eastern
    Ukraine. Russia demanded the government in Kyiv pay to supply to
    the region, while state-run NAK Naftogaz Ukrainy refused and
    accused Russian exporter OAO Gazprom of failing to meet its fuel
    requests.

    Naftogaz will cut gas imports from Russia to keep the fuel
    flowing for the next six days as the former Soviet republics
    prepare for EU-brokered talks in Brussels on Monday. The company
    will continue pre-paying Gazprom for supplies if the Russian
    company abides by an Oct. 30 contract, Naftogaz Chief Executive
    Officer Andriy Kobolyev said on Saturday in Kyiv.

    “This gas dispute is clearly tied to the dynamics of
    military operations in the east of Ukraine,” said Vasily
    Kashin, an expert at the Center for Analysis of Strategies and
    Technologies in Moscow.

    To contact the reporters on this story:
    Daryna Krasnolutska in Kyiv at
    dkrasnolutsk@bloomberg.net;
    Volodymyr Verbyany in Kyiv at
    vverbyany1@bloomberg.net

    To contact the editors responsible for this story:
    Balazs Penz at
    bpenz@bloomberg.net
    Michael Winfrey, Laurence Arnold

     
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