Russian Federation shows not enough flexibility on EU-Ukraine FTA – EU Commissioner

“But there wasn’t enough flexibility from the Russian side to do that”.

The United States on Tuesday imposed sanctions on 34 individuals and entities as part of its efforts to pressure Russian Federation for its intervention in Ukraine, the U.S. Treasury Department said.

“Since the Minsk agreements will not be fully implemented by 31 December 2015, the duration of the sanctions has been prolonged whilst the Council continues its assessment of progress in implementation”, the statement said.

Moscow claims the trade deal undermines its economic interests in Ukraine, a former Soviet-era satellite, and will allow a flood of cheap European Union products into one of its key markets.

A pro-Russian separatist stands on the shore of the Sea of Azov in front of the village of Shirokino, controlled by the Ukrainian Army, near the eastern Ukrainian port city of Mariupol, on February 24, 2015.

“We want to normalise relations (in trade) with our partners – with Ukraine and with the European Union”, Interfax news agency quoted Putin as saying.

As the date neared for the trade deal to go into effect, Russian President Vladimir Putin last week abolished Ukraine’s bilateral free-trade deal with Russia.

Myronovych called the move a “large-scale provocation”, and said Ukrainian government forces had reported the incident to the Organization for Security and Cooperation in Europe, which is tasked with policing the psuedo-ceasefire in east Ukraine.

“The assumption was very clearly made that Russian Federation will refrain from adding sanctions and suspending the preferential treatment of Ukraine”.

The sanctions target Russia’s financial, energy, and defense sector, as well as banking and duel-use goods. 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.

France has also sought to re-engage with Moscow on issues including the fight against terrorism and the peace plan in Syria, while Germany came under fire for allegedly working with Russian Federation on the Nord Stream gas pipeline.

Ukrainian Foreign Minister Pavlo Klimkin said that he welcomes the extension.