Britain launches multi-million pound fund to help countries resist Russian intimidation

BRITAIN is launching a multi-million pound fund to help former communist countries resist Russian intimidation, David Cameron announced last night.

David Cameron getting out of carAP

The Prime Minister was in Brussels last night

The Prime Minister believes it will help prevent Russian President Vladimir Putin extending his power-grab beyond eastern Ukraine and Crimea. But it is likely to inflame tensions with Moscow which will see it as Western meddling.

Mr Cameron unveiled Britain’s Good Governance Fund at a Brussels summit of EU leaders where he also insisted there must be no easing of economic sanctions on Russia until a peace deal to end fighting in Ukraine is fully implemented.

He was also keen to strike back at European Commission President Jean-Claude Juncker’s call for an “EU army”. The Prime Minister regards such talk as “indulging in fantasies” when the EU already has a “credible” set of weapons in the form of sanctions, said British officials. The next renewal of EU sanctions on Russia, designed to curb aggression toward Ukraine, is not due until July but Mr Cameron was keen to head off any talk of relaxing them.

Along with allies including Germany he says they must stay in place until the Minsk peace deal to end the fighting between pro-Russian separatists and Ukrainian forces in eastern Ukraine is fulfilled.

Britain is initially setting aside £20million in aid for the fund in 2015-16 but Mr Cameron hopes it will continue in future years. Ukraine is set to receive £5million and the rest will go to Moldova, Georgia, Bosnia Herzegovina and Serbia – other countries at risk of Russian pressure. Mr Cameron argues it is in the UK and Europe’s security interests for those states in close proximity to Russia to be strong and stable.

Mr Cameron also won assurances last night from Mr Juncker that Brussels will re-examine VAT rules introduced in January which have hit hundreds of British digital businesses that export products like e-books, run online courses and host websites.

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