This is the title that one of the leading Russian Newspapers Izvestia today used to name its top story about the worsening relationship between Russia and Ukraine.
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The facts are frightening. In 2009, Ukraine’s GDP is expected to decline by 8 percent. Iron and aluminium exports, pillars of the national economy, are in free fall, the banking system is on the brink of collapse, and like Iceland and Latvia, the government has already requested help from the International Monetary Fund. In a nutshell, Ukraine is collapsing.
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Natural gas may soon start to flow from Russia to Europe: the prime ministers of Russia and the Ukraine have agreed to a deal after a marathon series of talks.
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Russian President Dmitry Medvedev said on Saturday he was certain that the dispute over the transit of Russian gas via Ukraine would be resolved "in the near future."
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Russia's president opened an international gas summit in Moscow on Saturday by calling on participants to agree on a permanent mechanism to ensure the transit of Russian gas to Europe.
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Russia and its European customers are close to a solution to the natural gas transit dispute that led to a cutoff of supplies to the EU via Ukraine, Prime Minister Vladimir Putin said on Friday.
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The European Union is giving Russia and the Ukraine until Monday to settle their gas dispute, saying it will reassess relations with the two countries if the dispute is not resolved.
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An EU-brokered accord to resolve a gas dispute between Russia and Ukraine has been thrown into doubt. Moscow accused Kyiv of altering the agreement and declared it null and void, but the latest reports indicate the deal may still be salvaged after all.
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The European Commission said on Friday a deal on monitoring gas transit via Ukraine has been reached.
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