The German government has responded to the further escalation of the situation in the east of Ukraine with great disquiet. It believes that Russia has a special responsibility to prevent any further escalation and to stabilise the situation in Ukraine. Especially since there are signs that Russia is supporting armed separatists in eastern Ukraine.

"There are many indications that the armed groups active in eastern Ukraine are receiving support from Russia," said deputy government spokesperson Christiane Wirtz in Berlin. "If we see the way some of these groups act, their uniforms and their equipment, it seems extremely unlikely that they are spontaneous civilian 'self-defence forces'," she explained.

Europe demands reliability from Russia

Last week Russian President Vladimir Putin warned 13 European states, including Germany, that they might face obstacles with gas supplies. On Friday Chancellor Angela Merkel called for a "united, resolute European response". Europeans are "good customers" of Russian gas suppliers she said in Athens. In return they are entitled to expect reliable supplies, said the Chancellor.

In this context, Federal Minister of Finance Wolfgang Schäuble said in an interview with the radio station Deutschlandfunk, "Russia ought to know that it cannot blackmail the West". He also stressed, however, that although the crisis currently has a financial and economic nature, the ultimate aim must be to restore peace and stability, and ensure predictability and compliance with international law.

Expectations of Geneva meeting

According to Federal Foreign Minister Frank-Walter Steinmeier the situation in the east of Ukraine is not only volatile; it is also "extremely dangerous." In spite of the dispute over Russian gas supplies, Germany will continue to work for a diplomatic solution.

This Thursday, Russia, Ukraine, the USA and the EU will meet to discuss the crisis. The fact that this meeting in Geneva is to take place at all is in itself a "minor breakthrough", said Frank-Walter Steinmeier. Although the Federal Foreign Minister warned that it would be wrong to expect too much of this meeting, he does expect a work plan to be hammered out.

The four parties are to endeavour together to prevent any further worsening of the situation. Frank-Walter Steinmeier stressed that the long-term goal is, "to help de-escalate the situation and thus stabilise Ukraine in economic and political terms".

EU approves further financial assistance

In the meantime the EU foreign ministers, meeting in Luxembourg, approved one billion euros in further financial assistance for Ukraine. In addition, practically all customs duties are to be waived on goods imported from Ukraine.

This far-reaching exemption of import duties effectively anticipates part of the planned Association Agreement. The EU will waive 95 per cent of duties on industrial products and 82 per cent of duties on agricultural produce from Ukraine.