By Andrea Thomas and Stacy Meichtry
European leaders sought to lean on Russian President Vladimir Putin to act with caution as the situation in Ukraine worsened Friday, while Switzerland and other financial havens froze the assets of deposed Ukrainian President Viktor Yanukovych and his entourage.
In a phone call, German Chancellor Angela Merkel told Mr. Putin that she was concerned about a destabilization of Ukraine and urged him to exercise restraint in relation to latest events in the Crimea region, where soldiers in unmarked uniforms took control of two airports Friday.
Also Friday, her foreign minister, Frank-Walter Steinmeier, along with his French counterpart Laurent Fabius and Radoslaw Sikorski of Poland, issued a joint statement saying they were "very worried about the unstable situation" in the region, where Russia leases a naval base.
A week ago, the three ministers helped negotiate a short-lived accord that aimed to head off tensions between Mr. Yanukovych and throngs of pro-Western protesters, following days of violence that left more than 80 people dead. That accord quickly unraveled as Mr. Yanukovych left Kiev a day later, stoking fears that pro-Russian areas in southeastern Ukraine, including Crimea, might seek to break away from the rest of the country.
German and European diplomats say Ms. Merkel has taken an informal lead as the main link between Mr. Putin and other Western leaders since the simmering crisis in Ukraine boiled over.
The appearance of gunmen in Crimea has raised concern in the West that Russia might be encouraging separatism in the region, which Russia ceded to the then-Soviet Socialist Republic of Ukraine in 1954.
"Any step that could lead to an escalation should be avoided," she told Mr. Putin on Friday, according to a statement from her office. She added that all offers made by international organizations to help defuse the situation and intensify dialogue should be used.
A German government spokeswoman said Mr. Putin had assured Ms. Merkel in an earlier conversation that Russia had no interest in breaking up Ukraine. "In talks with the chancellor, Putin accepted the territorial integrity of Ukraine," the spokeswoman, Christiane Wirtz, said at a news conference.
Ms. Merkel has spoken with the Russian president repeatedly in recent days. While she has called on Russia to help stabilize Ukraine politically and financially and to protect its territorial integrity, she has also appealed to the new regime in Kiev to reach out to the pro-Russian segment of the population.
"We must do everything to maintain the territorial integrity of Ukraine. In order to achieve this, we need Russia," a German foreign-ministry spokeswoman said on Friday, summing up Berlin's position.
The French, German and Polish ministers echoed that position, calling on Kiev to reach out to Ukrainians in the south and east of the country and "take into account all of their legitimate interests, including minority rights and in particular language issues."
"Everything must be done to lower tensions in the Eastern region and promote peaceful discussion between the parties involved," they said, reiterating their support for the "sovereignty and territorial integrity of the country."
Germany has made any European financial assistance to Kiev conditional on the country first obtaining a loan from the International Monetary Fund. German officials said other conditions included the formation of an inclusive government and a financial commitment by Russia.
A spokesman for Wolfgang Schäuble said the German finance minister had been in touch with his Russian counterpart Anton Siluanov, IMF Managing Director Christine Lagarde, and European Economics Commissioner Olli Rehn about possible support.
European authorities could provide up to EUR1.6 billion ($2.2 billion) in short-term financing if Ukraine strikes a deal with the IMF, officials involved in the negotiations said. The funds, discussed at a meeting of senior officials from European Union finance ministries and the IMF in Brussels on Friday, would help bolster Ukraine's foreign-exchange reserves, which have fallen sharply.
Ukraine's new government has requested a bailout from the IMF as the country is struggling with Russia's decision to freeze $15 billion in support that it promised last year.
Separately, Switzerland on Friday ordered a freeze on assets linked to Mr. Yanukovych and 19 members of his entourage. The order covers financial assets believed to be held in the country--including cash and insurance contracts--held by Mr. Yanukovych, former members of his government, and his son Oleksandr. The ban also prevents the 20 people from selling assets including property they may own in the country.
Liechtenstein also said it was immediately freezing the assets of 20 people who were close to the former government or members of it. Austria said it is freezing any bank accounts it can find for Mr. Yanukovych, his son and 16 others, the Associated Press reported.
In addition, the prosecutor's office in the Swiss canton of Geneva said it had opened a criminal investigation into alleged money laundering by Mr. Yanukovych.
Matthew Dalton in Brussels and John Revill in Geneva contributed to this article.
Write to Andrea Thomas at andrea.thomas@wsj.com
Source: Top Stories - Google News - http://ift.tt/1eHJ7y7
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