Good morning. We'll get the live blog rolling today with an update on sanctions from our news desk:
German Foreign Minister Suggests Gradual Reduction In Russia Sanctions
German Foreign Minister Frank-Walter Steinmeier has suggested that the European Union might gradually reduce sanctions if Moscow takes steps to fulfill its obligations under a peace accord with Ukraine.
"I hope that by the end of June there will be progress and then we can see if we can reduce the sanctions step by step, or if we stay with the measures we have right now," Steinmeier told reporters on a visit to Tallinn on May 27.
"If there is no progress, an evaluation will also be necessary," he said. "It is not our aim to maintain the sanctions but to resolve the conflict."
Steinmeier has previously said that resistance to the sanctions is growing within the EU, so finding unanimous agreement among all 28 EU members before the sanctions expire next month will be difficult without compromise.
His willingness to consider providing some sanctions relief to Moscow contrasts with statements this week by British Prime Minister David Cameron and EU President Donald Tusk that they expect the sanctions to be extended without change.
The Group of Seven economic powers, which includes Germany, also called for extending the sanctions on May 27.
Based on reporting by AFP and Interfax
This ends our live blogging for May 27. Be sure to check back tomorrow for our continuing coverage.
Ukraine files defense in $3 Billion Russia Eurobond case:
Ukraine has filed its defense with a British court over a $3 billion debt to Russia, arguing that the original loan agreement with its neighbor was invalid.
The Ukrainian Foreign Ministry and Finance Ministry said in a statement on May 27 that "Ukraine's defense explains that the loan agreement is invalid and unenforceable for multiple reasons."
"As a matter of Ukrainian law, Ukraine lacked the capacity to enter an agreement that violated the borrowing limits then in place and...the agreement was procured through duress exerted by Russia on Ukraine throughout 2013 in order to prevent Ukraine from signing an Association Agreement with the EU," it said.
The Eurobond in question was issued by the government of former President Viktor Yanukovych just two months before he fled to Russia in February 2014 amid bloody street protests. The protests were sparked by Yanukovych's decision not to sign the Association Agreement with the EU.
Russia filed a lawsuit against Ukraine in February at London's High Court demanding repayment of the $3 billion Eurobond, which matured on December 20.
Russian Finance Minister Anton Siluanov said on February 17 that the case will seek to recover the principal in full, $75 million of unpaid interest, and legal fees.
Moscow declined to take part in a $15 billion restructuring that Ukraine negotiated with its other Eurobond holders last year. (Reuters)