KIEV, (Reuters) – The leaders of Germany and France announced a new peace plan for Ukraine yesterday, flying to Kiev with a proposal they would then take on to Moscow.
The coordinated trip by Chancellor Angela Merkel and President Francois Hollande comes as rebels advanced on a railway hub held by Ukrainian troops after launching an offensive that scuppered a five-month-old ceasefire.
The importance of reaching a deal was demonstrated by a dramatic collapse in Ukraine’s hryvnia currency, which lost nearly a third of its value after the central bank halted daily auctions at which it sold hard currency to banks.
With Washington moving towards a decision soon on arming Ukraine, U.S. Secretary of State John Kerry also visited Kiev on Thursday. He had no plans to go to Moscow and was not involved in the Franco-German initiative, although he supported it.
Moscow said it hoped talks with Merkel and Hollande would be “constructive”.
German government sources said the key problem for resuming peace talks was that the current front line no longer tallies with what was agreed at talks in Minsk, Belarus, last year. One idea was that a new attempt at a ceasefire should take in the current front line, which reflects rebel gains.
