Land for gas: Merkel and Putin discussed secret deal could end Ukraine crisis

Germany and Russia have been working on a secret plan to broker a peaceful solution to end international tensions over Ukraine.

The Independent can reveal that the peace plan, being worked on by both Angela Merkel and Vladimir Putin, hinges on two main ambitions: stabilising the borders of Ukraine and providing the financially troubled country with a strong economic boost, particularly a new energy agreement ensuring security of gas supplies.

More controversially, if Ms Merkel’s deal were to be acceptable to the Russians, the international community would need to recognise Crimea’s independence and its annexation by Russia, a move that some members of the United Nations might find difficult to stomach.

Sources close to the secret negotiations claim that the first part of the stabilisation plan requires Russia to withdraw its financial and military support for the various pro-separatist groups operating in eastern Ukraine. As part of any such agreement, the region would be allowed some devolved powers.

At the same time, the Ukrainian President would agree not to apply to join Nato. In return, President Putin would not seek to block or interfere with Ukraine’s new trade relations with the European Union under a pact signed a few weeks ago.

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• Sic Semper Tyrannus: For some time, the veteran journalist Robert Parry has been suggesting that what U.S. intelligence analysts know about the shooting down of the Malaysian flight MH17 on 17 July does not mesh with official claims that there is unambiguous evidence that the insurgent forces were responsible. Yesterday, he claimed that U.S. intelligence analysts now believe that the atrocity was likely to have been the result of a deliberate attempt by extremists in the new regime in Kiev to shoot down a Russian plane.

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