Land for gas
Germany and Russia have been working on a secret plan to broker a peaceful solution to end international tensions over the 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 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 the Ukraine's new trade relations with the European Union under a pact signed a few weeks ago.
Second, the Ukraine would be offered a new long-term agreement with Russia's Gazprom, the giant gas supplier, for future gas supplies and pricing. At present, there is no gas deal in place; Ukraine's gas supplies are running low and are likely to run out before this winter, which would spell economic and social ruin for the country.
A spokesman for the Foreign and Commonwealth Office said they had no knowledge of such negotiations taking place. However, the spokesman said he thought it highly unlikely that either the US or UK would agree to recognising Russian control over Crimea. There was no one available at the German embassy's press office yesterday.
Russia is still the EU's third-biggest trading partner with cross-border trade of $460b (£272b) last year, and the latest sanctions being introduced by the EU towards Russian individuals and banks will hurt European countries more than any other – particularly Germany.
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