• Lara 4:50 pm on March 14, 2015
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    Pro-Russian Rebels Hopeful on Peace as Ukraine Sees Threat

    (Bloomberg) — Pro-Russian rebels said they were hopeful
    the peace process in east Ukraine will continue as the
    government in Kyiv accused them of breaching a cease-fire
    agreement amid skirmishes.

    Ukraine said one of its soldiers was wounded as rebels
    attacked government positions 32 times during the past 24 hours,
    military spokesman Andriy Lysenko told reporters in Kyiv on
    Saturday. More than 6,000 people have been killed in the year-old conflict, according to the United Nations. The U.S., the
    European Union and Ukraine say Russia is supplying the
    separatists with troops and weapons. Russia denies the
    accusations.

    Representatives of Ukraine, Russia and the Organization for
    Security and Co-operation in Europe held a “constructive”
    video conference on March 13 following last month’s truce
    agreement, Denis Pushilin, the chief negotiator from the self-proclaimed Donetsk People’s Republic, said on DPR’s website
    Saturday.

    “This gives us hope that the peace process will
    continue,” he said, urging all involved in the conflict to do
    “everything in their power” to ensure the truce holds.

    Ukrainian President Petro Poroshenko warned that the threat
    to his country hasn’t disappeared.

    No ‘Illusion’

    “The process which began a month ago in Minsk should by no
    means create any illusion that the threat has diminished or
    retreated,” he told a government meeting on Saturday, according
    to a statement posted on his website.

    Ukraine will improve its fortifications and create a deep
    line of defense “lest we want to welcome the enemy in our
    cities,” Poroshenko said.

    French Foreign Minister Laurent Fabius and his Russian
    counterpart Sergei Lavrov on Saturday discussed “positive”
    developments in implementation of the peace deal, the Russian
    Foreign Ministry said in a statement on its website.

    Even as Ukraine has said casualties have dropped in the
    past weeks, “the prevailing view” among EU members is that
    there hasn’t been enough progress yet to start removing the
    sanctions the bloc imposed on Russia, Slovak Foreign Minister
    Miroslav Lajcak said on Friday.

    Russia Sanctioned

    Germany intends to argue at a summit of EU leaders next
    week that sanctions against Russia should be linked to the full
    implementation of the Minsk truce agreement, Frankfurter
    Allgemeine Sonntagszeitung reported Saturday, citing
    unidentified people in the government.

    Such a measure would mean that current sanctions would stay
    in force until end of 2015, FAS reported. Some EU member states,
    such as Italy, Greece and Cyprus, may oppose such a move, the
    newspaper reported.

    Ukraine, which won approval this week for $17.5 billion of
    International Monetary Fund aid, began receiving the first $5
    billion tranche from the IMF on Friday, according to the Finance
    Ministry. The loan is part of a $40 billion package to rescue
    the nation’s economy as it buckles under a plunging hryvnia
    currency and the fighting, which has crippled its industrial
    heartland.

    The country’s bond restructuring may include a reduction in
    principal, as well as an extension of maturities and lower
    coupons, Finance Minister Natalie Jaresko said Friday in her
    first talks with creditors about easing the country’s debt load.

    To contact the reporter on this story:
    Aliaksandr Kudrytski in Minsk, Belarus at
    akudrytski@bloomberg.net

    To contact the editors responsible for this story:
    Balazs Penz at
    bpenz@bloomberg.net;
    Hellmuth Tromm at
    htromm@bloomberg.net
    Andrea Dudik, Todd White

     
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