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As Ukraine inks EU deal, Moscow is not giving up

Russia's President Vladimir Putin attends a ceremony at the Grand Kremlin Palace in Moscow, on June 27, 2014The EU’s move to sign accords with Ukraine, Moldova and Georgia is a major setback for Russian President Vladimir Putin, but the tug-of-war over Moscow’s ex-Soviet sphere of influence is far from over, say analysts. The association agreements have been met with barely concealed hostility in Russia, which will use every opportunity to undermine the three countries’ EU integration while ensuring its own trade ties with Europe remain unaffected, the analysts told AFP. “Russia has many options to use the carrot and stick with these countries,” said Maria Lipman of Carnegie Moscow Centre. Moscow argues the agreements threaten its domestic producers by allowing European goods to be re-exported from Ukraine through their less stringent customs channels.

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