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Ukraine conflict: Army claims strategic town in Donetsk Ukraine conflict: Army claims strategic town in Donetsk
(about 2 hours later)
The Ukrainian army says it has seized a key town near the rebel stronghold of Donetsk, as fighting rages in the east.The Ukrainian army says it has seized a key town near the rebel stronghold of Donetsk, as fighting rages in the east.
Pro-Russia separatists were driven out of Avdiivka on Wednesday, the army said. The strategic town is near the airport and train station in Donetsk.Pro-Russia separatists were driven out of Avdiivka on Wednesday, the army said. The strategic town is near the airport and train station in Donetsk.
Heavy fighting around Donetsk has again prevented international experts from reaching the crash site of flight MH17.Heavy fighting around Donetsk has again prevented international experts from reaching the crash site of flight MH17.
Details of fresh EU sanctions against Russia for its support to the Ukrainian rebels are expected shortly. Meanwhile, Russia said new sanctions were "destructive and short-sighted" and would lead to higher energy prices.
Almost two weeks after the Malaysia Airlines jet came down, international monitors were turned back to the city of Donetsk at a separatist checkpoint, with smoke rising in the distance from fighting. Almost two weeks after the Malaysia Airlines jet came down, international monitors were turned back to the city of Donetsk by separatist amid clashes in the area.
Some critics say it is not in the interest of the Ukrainian army for observers to get to the site as it would restrict their offensive, says the BBC's Tom Burridge in Kharkiv.Some critics say it is not in the interest of the Ukrainian army for observers to get to the site as it would restrict their offensive, says the BBC's Tom Burridge in Kharkiv.
Of course neither side would want observers or police to be caught in the crossfire and the Ukrainian army may want to keep its momentum going, he adds.
Regional officials in Donetsk said on Wednesday that 19 people had been killed in fighting in the past 24 hours.Regional officials in Donetsk said on Wednesday that 19 people had been killed in fighting in the past 24 hours.
Ukraine says its troops have also entered the towns of Shakhtarsk and Torez in Donetsk region, and Lutuhyne in Luhansk region.Ukraine says its troops have also entered the towns of Shakhtarsk and Torez in Donetsk region, and Lutuhyne in Luhansk region.
On Tuesday, the US announced new economic sanctions against Russia, widening their scope to include three key sectors of the economy - energy, arms and finance.On Tuesday, the US announced new economic sanctions against Russia, widening their scope to include three key sectors of the economy - energy, arms and finance.
US nationals and people living in America will no longer be able to bank with three Russian banks - the VTB, the Bank of Moscow and the Russian Agriculture Bank (Rosselkhozbank).US nationals and people living in America will no longer be able to bank with three Russian banks - the VTB, the Bank of Moscow and the Russian Agriculture Bank (Rosselkhozbank).
Peace 'more important'Peace 'more important'
The EU is also expanding its sanctions, targeting the oil sector, defence equipment and sensitive technologies.The EU is also expanding its sanctions, targeting the oil sector, defence equipment and sensitive technologies.
Sanctions are starting to bite in Russia, with the share prices of VTB bank and the rouble down, as borrowers are squeezed by rising interest rates, says the BBC's Daniel Sandford in Moscow. Details of new EU sanctions are now due to be revealed on Thursday, a day later than expected.
Sanctions are starting to bite in Russia, with the rouble down and borrowers squeezed by rising interest rates, says the BBC's Daniel Sandford in Moscow.
A senior US state department official told the BBC that Russia's central bank had been forced to spend tens of billions of dollars in order to defend the rouble.A senior US state department official told the BBC that Russia's central bank had been forced to spend tens of billions of dollars in order to defend the rouble.
"If Russia continues on this current path, the costs on Russia will continue to grow," said US President Barack Obama, announcing the new round of sanctions. "If Russia continues on this current path, the costs on Russia will continue to grow," US President Barack Obama said on Tuesday.
In a statement on Wednesday, Russia's foreign ministry said the new US sanctions were "destructive and short-sighted". Russia's foreign ministry said the new US sanctions were "destructive and short-sighted" and would aggravate relations between the two countries.
"Such decisions by Washington can bring nothing but further aggravation of US-Russia relations," the statement said. It also attacked fresh EU sanctions as "thoughtless and irresponsible" and said they would "inevitably" lead to higher energy prices in Europe.
Russia retaliatesRussia retaliates
The first sign of retaliation came after Russia announced a ban on most fruit and vegetable imports from Poland.The first sign of retaliation came after Russia announced a ban on most fruit and vegetable imports from Poland.
Russia buys more than 2bn euros (£1.6bn; $2.7bn) worth of EU fruit and vegetables a year, making it by far the biggest export market for the products.Russia buys more than 2bn euros (£1.6bn; $2.7bn) worth of EU fruit and vegetables a year, making it by far the biggest export market for the products.
Polish fruit growers said the ban was political but Russia said the move was for sanitary reasons.Polish fruit growers said the ban was political but Russia said the move was for sanitary reasons.
Meanwhile, Germany's Economy Minister Sigmar Gabriel said the sanctions could hurt the German economy, which has strong trade links with Russia.Meanwhile, Germany's Economy Minister Sigmar Gabriel said the sanctions could hurt the German economy, which has strong trade links with Russia.
"Nonetheless at a time of war and peace, economic policy is not the main consideration," he told journalists."Nonetheless at a time of war and peace, economic policy is not the main consideration," he told journalists.
The list of 87 targets of EU sanctions now includes the heads of the Federal Security Service (FSB) and foreign intelligence, the president of Chechnya, as well as two Crimean energy firms. The list of 87 targets of EU sanctions now includes the heads of Russia's intelligence agencies, the president of Chechnya, and two Crimean energy firms.
However, UK company BP, which owns nearly 20% of Russian state oil giant Rosneft, said further sanctions could "adversely impact" its performance.However, UK company BP, which owns nearly 20% of Russian state oil giant Rosneft, said further sanctions could "adversely impact" its performance.
Russian press reacts to sanctions
Appeal for access
Russia has come under increased pressure to end its support for the rebels, who Western governments believe were behind the downing of MH17, killing 298 people.Russia has come under increased pressure to end its support for the rebels, who Western governments believe were behind the downing of MH17, killing 298 people.
Moscow has also been accused by the EU and US of supplying heavy weapons to the rebels - a charge it denies. Moscow has also been accused by the US and EU of supplying heavy weapons to the rebels - a charge it denies.
Australia's Prime Minister, Tony Abbott, said on Wednesday his government was focusing on retrieving Australian victims from the MH17 wreckage: "At the moment our focus is not on sanctions, our focus is on bringing home our dead as quickly as we humanly can." Russian press reacts to sanctions
His comments follow that of US Secretary of State John Kerry, who urged Russia and the rebels to allow Western investigators full access to the crash site.
"They still can't even ensure that all of the victims' remains have been removed, and that is an unsupportable burden for any family to have to bear, and it is an unacceptable standard for behaviour, period," he said.