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Ukraine rejects talks with rebels until they disarm

US State Department spokeswoman Jen Psaki reiterated on Monday that “the government of Ukraine is defending the country of Ukraine, and I think they have every right to do that, as does the international community.”

Poroshenko on Tuesday dismissed the man who had headed Kiev’s self proclaimed “anti terrorist operation” since its launch on April 13 and replaced him with Vasyl Grytsak — a career interior ministry offer who once helped computerise Ukraine’s passport system.

– ‘Tough choice’ for Putin –

The reshuffle was one of several in the Ukrainian Security Service (SBU) and appeared to represent an attempt by Poroshenko to place trustees in top positions rather than any change in tactic in the campaign.

Germany’s Berenberg Bank economist Holger Schmieding said Putin now faced a tough choice between dealing a blow to Russia’s economy by further boosting support for the rebels or seeing his own popularity suffer by taking no action at all.

“He may either have to step up his support for the pro-Russian insurgents who are now on the defensive; or he may be seen as letting Ukraine advance on the ground in Donbass,” Schmieding wrote in reference to the eastern Lugansk and Donetsk regions.

“The former could trigger more serious sanctions and further capital flight from Russia. The latter could hurt his popularity and his ‘strong man’ image in Russia where (he) had whipped up nationalist sentiment in the last five months.”

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