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| EU leaders to gather in Vilnius under Ukraine cloud | EU leaders to gather in Vilnius under Ukraine cloud |
| (about 2 hours later) | |
| Leaders of the EU are to gather in Vilnius for a summit rocked by Ukraine's shock decision not to sign a far-reaching agreement. | Leaders of the EU are to gather in Vilnius for a summit rocked by Ukraine's shock decision not to sign a far-reaching agreement. |
| The conclusion of the trade and reform deal was planned as the highlight of a summit aimed also at building ties with other East European states. | The conclusion of the trade and reform deal was planned as the highlight of a summit aimed also at building ties with other East European states. |
| Ukrainian President Viktor Yanukovych is likely to face tough questions from EU leaders on why he stopped the deal, apparently under Russian pressure. | Ukrainian President Viktor Yanukovych is likely to face tough questions from EU leaders on why he stopped the deal, apparently under Russian pressure. |
| He has requested more EU financial aid. | He has requested more EU financial aid. |
| Pro-EU protests are continuing in Ukrainian cities against the government's decision to back out of the deal. | Pro-EU protests are continuing in Ukrainian cities against the government's decision to back out of the deal. |
| Mr Yanukovych has dismissed an EU condition for signing the agreement - that Yulia Tymoshenko, the former Ukrainian prime minister and opposition leader, be freed from jail. | Mr Yanukovych has dismissed an EU condition for signing the agreement - that Yulia Tymoshenko, the former Ukrainian prime minister and opposition leader, be freed from jail. |
| The dispute has increased tension between the EU and Russia, with Ukraine complaining it is becoming a "battleground" between the two. | The dispute has increased tension between the EU and Russia, with Ukraine complaining it is becoming a "battleground" between the two. |
| EU leaders said in a statement that they "strongly disapprove" of Moscow's pressure on Ukraine not to sign - while Russian President Vladimir Putin accused the EU of "blackmail". | EU leaders said in a statement that they "strongly disapprove" of Moscow's pressure on Ukraine not to sign - while Russian President Vladimir Putin accused the EU of "blackmail". |
| German Chancellor Angela Merkel said Russia should not view relations between the 28-state bloc and ex-Soviet republics as a threat. | German Chancellor Angela Merkel said Russia should not view relations between the 28-state bloc and ex-Soviet republics as a threat. |
| "We should overcome the 'either us or them' mentality," she said. "The Cold War is over." | "We should overcome the 'either us or them' mentality," she said. "The Cold War is over." |
| 'EU candy' | 'EU candy' |
| The two-day event, billed as the third Eastern Partnership Summit, is being held in the capital of Lithuania, which currently holds the rotating presidency of the EU. | The two-day event, billed as the third Eastern Partnership Summit, is being held in the capital of Lithuania, which currently holds the rotating presidency of the EU. |
| Initial political association agreements with Georgia and Moldova are due to be signed, as well as a visa agreement with Azerbaijan. | Initial political association agreements with Georgia and Moldova are due to be signed, as well as a visa agreement with Azerbaijan. |
| However, the centrepiece of the summit had been the association agreement with Ukraine. Such agreements, which promote democratic values and economic co-operation, are seen as a key step towards EU membership. | However, the centrepiece of the summit had been the association agreement with Ukraine. Such agreements, which promote democratic values and economic co-operation, are seen as a key step towards EU membership. |
| The EU's Enlargement Commissioner, Stefan Fuele, said the offer to Ukraine remained "on the table", and suggested it could be signed at a new summit "before the spring". | The EU's Enlargement Commissioner, Stefan Fuele, said the offer to Ukraine remained "on the table", and suggested it could be signed at a new summit "before the spring". |
| However, Lithuanian Foreign Minister Linas Linkevicius said that without the agreement, the summit would be "less impressive". "The momentum may be lost," he added. | However, Lithuanian Foreign Minister Linas Linkevicius said that without the agreement, the summit would be "less impressive". "The momentum may be lost," he added. |
| In a Ukrainian TV interview, President Yanukovych accused the EU of offering his country an inadequate amount in loans to help reform the economy. | In a Ukrainian TV interview, President Yanukovych accused the EU of offering his country an inadequate amount in loans to help reform the economy. |
| The EU has offered to lend 610m euros (£510m; $828) in macro-financial assistance, on condition that Ukraine continues meeting the conditions of an IMF stand-by loan of 11.15bn euros, agreed in 2010. | The EU has offered to lend 610m euros (£510m; $828) in macro-financial assistance, on condition that Ukraine continues meeting the conditions of an IMF stand-by loan of 11.15bn euros, agreed in 2010. |
| In remarks quoted by his website, Mr Yanukovych said Ukraine would need at least 20bn euros a year to cover the costs of upgrading its economy to "European standards". | |
| "For three years in succession they [EU leaders] have shown this candy in pretty wrapping to us," he added. "We don't have to be humiliated like this. We are a serious country, a European one." | "For three years in succession they [EU leaders] have shown this candy in pretty wrapping to us," he added. "We don't have to be humiliated like this. We are a serious country, a European one." |
| Defending the EU's offer, Stefan Fuele said: "The Ukrainian economy needs huge investments but these are not costs. They represent future income, more growth, more jobs and more wealth. | |
| "The only costs that I can see are the costs of inaction allowing more stagnation of the economy and risking the economic future and health of the country." | |
| 'European Time' | 'European Time' |
| The Ukrainian president again attacked EU demands to free Tymoshenko, saying: "What does the European Union have to do with this? Is the European Union a court?" | The Ukrainian president again attacked EU demands to free Tymoshenko, saying: "What does the European Union have to do with this? Is the European Union a court?" |
| In a message from her prison cell in Kharkiv, Tymoshenko called on EU leaders not to let her continued imprisonment block the association agreement. | In a message from her prison cell in Kharkiv, Tymoshenko called on EU leaders not to let her continued imprisonment block the association agreement. |
| "If Yanukovych takes a positive decision, I sincerely ask you [EU country leaders] to sign the agreement without any preconditions, including my release," she said in the message, read out by her daughter Eugenia. | "If Yanukovych takes a positive decision, I sincerely ask you [EU country leaders] to sign the agreement without any preconditions, including my release," she said in the message, read out by her daughter Eugenia. |
| News last week that the Ukrainian government was shelving the agreement drew mass protests in the capital Kiev and other cities at the weekend, echoing the pro-democracy "Orange Revolution" of 2004. | News last week that the Ukrainian government was shelving the agreement drew mass protests in the capital Kiev and other cities at the weekend, echoing the pro-democracy "Orange Revolution" of 2004. |
| Smaller demonstrations have continued daily since then. | Smaller demonstrations have continued daily since then. |
| After playing down the protests earlier in the week, Ukrainian state TV announced on Thursday it was holding a broadcasting marathon called "European Time", to reflect interest in closer ties with the EU during the summit. | After playing down the protests earlier in the week, Ukrainian state TV announced on Thursday it was holding a broadcasting marathon called "European Time", to reflect interest in closer ties with the EU during the summit. |
| It promised live link-ups with students attending the pro-EU rallies, as well as with Mr Yanukovych in Vilnius. | It promised live link-ups with students attending the pro-EU rallies, as well as with Mr Yanukovych in Vilnius. |
| The official position of the Ukrainian government is that "the negotiating process over the association agreement is continuing". | The official position of the Ukrainian government is that "the negotiating process over the association agreement is continuing". |
| Prime Minister Mykola Azarov said that "road-map" talks with Russia aimed at reviving economic ties would start next month but no agreement had been finalised on possible new financial support from the Kremlin. | Prime Minister Mykola Azarov said that "road-map" talks with Russia aimed at reviving economic ties would start next month but no agreement had been finalised on possible new financial support from the Kremlin. |