Trade war with rebels reduces Ukraine's options
Significance The rebel takeover of Ukrainian-owned businesses is a response to Kyiv's decision yesterday to halt freight traffic to and from the region, as economic warfare temporarily takes precedence over armed conflict. Kyiv's trade ban in effect institutionalises a railway blockade that has interrupted Ukraine's coal supplies since January and was opposed until now by the government. Impacts If the government hopes to use the trade ban as a negotiating tool to pressure the rebels, it is a high-risk strategy liable to backfire. A step intended to show strength makes the government look weak and invites opposition pressure, including calls for early elections. Kyiv must urgently find new suppliers of the anthracite coal on which half its power stations run.