Russia cannot afford 'collapsing state' in its backyard

Europe issued fresh calls today for dialogue with Russia over Ukraine, warning Moscow it faces having a failed state in its backyard just as it tightens the economic noose on Kiev.
Russia needs to understand it is not in its interest "to have a collapsing state in its neighbourhood", German Foreign Minister Frank-Walter Steinmeier said at the close of two-day talks with his 27 European Union counterparts.
As the Ukraine-Russia dispute over gas prices intensified, Germany's Steinmeier stressed that Europe needed Russia to help rescue the new authorities in economically distressed Kiev.
"The issue of economic stabilisation also depends on how Russia for example, sets his energy prices for Ukraine. That's why we, even if there is conflict between us, have to talk with Russia."

Ministers emerged with a double-edged message from the informal talks, a regular six-monthly affair.
They laid heavy stress on defusing tension, on "trying to persuade Russia of the importance to de-escalate to ensure future dialogue," said EU foreign policy chief Catherine Ashton.

Europe must "keep open the channels of political and diplomatic dialogue with Russia," said Greek Foreign Minister Evangelos Venizelos.
But ministers also reiterated that they would be prepared to sharpen sanctions against Russia failing concrete signs of de-escalation by Moscow.
It is important to ensure "we are prepared to take measures", Ashton said, adding that "work is ongoing" and that "we are united to deal with threats against Ukraine."

On opening the talks, the ministers had said "Europe must not relax" and needed to stand firm until Russia "shows it is serious" by clearly pulling back its troops from the border.
They described the unprecedented crisis unfolding on the bloc's eastern flank as "very dangerous" but had appeared to be hoping to see Moscow take steps to defuse the tension.
"It is really important that Russia shows that it is serious about the de-escalation by moving troops back," Ashton said."We'll be watching with great care what's happening there."
British Foreign Secretary William Hague deplored that Russian troops had made "only a token withdrawal" from the border.

"We have not seen real de-escalation by Russia. Therefore Europe must not relax," Hague added.