Ukraine: Daily Briefing – March 6, 2018, 5 PM Kyiv time

The General Staff of Ukraine’s Armed Forces reported at 12:30 PM Kyiv time that in the last 24 hours, no Ukrainian soldiers were killed and one Ukrainian soldier was wounded in action. In the last 24 hours, Russian-terrorist forces opened fire on Ukrainian positions on the Luhansk and Donetsk sectors of the front 3 times in total, including 2 times with heavy weapons.

Ukraine’s President Petro Poroshenko held a phone conversation with US Vice President Mike Pence. Ukraine’s Presidential Administration reported, “The Head of State informed the U.S. Vice President of the current situation in the Donbas and the ongoing provocations on the part of Russia-controlled militants who do not stop violating the announced complete ceasefire regime.

           In this regard, Petro Poroshenko underlined the importance of further pressure on Russia for ensuring proper implementation of the security aspects of the Minsk agreements. He expressed gratitude for the recent decision by U.S. President Donald Trump to roll over respective sanctions against Russia for a year.

          Vice President Pence emphasized the importance of preserving sanctions against Russia until full implementation of the Minsk agreements and return of Crimea to Ukraine. […]

          The Head of State emphasized that the provision of U.S. defensive weapons to Ukraine was an important positive signal for other partners of our country and a clear warning for the Russian aggressor.

          Vice President Michael Pence stressed that USA would keep supporting Ukraine in its fight for territorial integrity and sovereignty. He also noted Ukraine’s progress in the implementation of reforms, particularly establishment of the Anticorruption Court.”

Ukraine Business Journal reported, “Gazprom’s decision to end supply contracts with Naftogaz has alarmed Germany, Europe’s largest gas importer and consumer. German government spokesman Steffen Seibert told reporters Monday: ‘The federal government has taken with concern the announcement that Gazprom intends to terminate its contracts with Ukraine’s Naftogaz. The fact that gas is not supplied to Ukraine causes even greater concern…if Gazprom now wants to prematurely announce the termination of contracts, it causes irritation not only here in Germany, but also in other EU countries and in the European Commission.’
After Gazprom announced that it is breaking its supply and gas transit contracts with Ukraine, Naftogaz announced it will close its representative office in Moscow on March 12.”

Finland’s Foreign Minister, Timo Soini, is visiting Ukraine March 5-6. Finland’s Foreign Ministry reported, “Foreign Minister Soini and Ukraine’s Minister of Education and Science signed an agreement between the two countries under which Finland will provide Ukraine with additional assistance for reforms of its education sector.

          Under the four-year programme set out in the agreement, Finland will support Ukraine in the development of teacher education and the updating of teaching material. Finland will also significantly expand its assistance to Ukraine so that it can improve the energy-efficiency of its economy.

          ‘In its support for Ukraine, Finland will focus on sectors in which we possess a high level of expertise. Education is one of the fundamentals of society and we are ready to play a central role in the reforming of the Ukrainian education sector. In the energy sector, we will focus on improvements in energy-efficiency, increasing the use of renewable energy and on developing clean energy production. These are all essential to ensuring a sustainable energy supply,’ Soini noted.”

The NY Times reported, “Exxon Mobil is abandoning its joint exploration ventures with the Russian oil company Rosneft, retreating from what was one of its most promising investments until Western sanctions got in the way.

         During the early years of the Obama administration, when there was a brief warming of relations, Exxon Mobil signed an exploration deal with the Russians. Exxon and Rosneft, which is only half-owned by the Russian government but state-run, agreed to invest $3.2 billion to search for oil in deepwater fields in the Arctic and elsewhere.

          After Russia annexed Crimea from Ukraine in 2014, the United States and its European allies applied several sanctions on Moscow, eventually freezing Exxon’s investments. […]

        Exxon said that it had decided late last year to abandon the ventures this year and would take an after-tax loss of $200 million. ‘The corporation and its affiliates continue to comply with all applicable laws, rules and regulations,’ the company said. […]

         The move sends a signal, said David Goldwyn, who was the State Department’s top energy diplomat early in the Obama administration. ‘It’s a sign that the company realizes that U.S.-Russia relations and in particular sanctions are not likely to change soon,’ he said. ‘They are an enormous source of friction with the government, and it is better business for them to steer their business away from sanctioned activities.’ […]

          Under the last four years of sanctions, Exxon and other Western oil companies have been prevented from using their technological expertise to help Rosneft’s oil and gas development.”