Politico: EU bid to appease Russia over Ukraine deal collapses
The Kremlin threatens sanctions against Ukraine for tightening ties with the EU.
A last-minute attempt to prevent Russia from slapping economic sanctions on Ukraine failed Monday, as EU-led negotiations between the parties broke down.
The sticking point is the launch of a delayed EU free trade agreement with Ukraine that will enter into force on January 1. The EU had been talking for 18 months over Russia’s concerns the deal would harm its economy, but those discussions deadlocked with officials accusing each other of failing to compromise.
Update #1: Putin says Russia 'to continue efforts' to settle trade ties with Ukraine, EU (Reuters)
Update #2: Russia And EU Play Tit For Tat With Sanctions Over Ukraine (Tim Worstall, Forbes)
WNU Editor: Ukraine has had (until now) a form of free trade with Russia since the fall of the Soviet Union. It has been beneficial for Ukrainian exporters .... and it is huge. That is why Russian sanctions will have an enormous impact .... the EU knows this, because in the end it will only mean that Ukraine will require billions in EU aid to stay afloat.