By Bertrand Benoit in Berlin and Gregory L. White in Moscow
BERLIN--The sharp devaluation of the ruble is cause for concern
in Europe but won't lead to an early review of the European Union's
economic sanctions against Moscow, German officials said on
Wednesday.
The assessment came after German Chancellor Angela Merkel,
Russian President Vladimir Putin, Ukraine President Petro
Poroshenko and French President François Hollande discussed the
situation in Ukraine in a telephone conference late Tuesday
evening, the first such exchange in weeks.
A German official said Wednesday the rapid economic
deterioration in Russia was causing "serious concern" in Berlin,
adding, "we are worried both about the economic and the security
implications."
Yet this was no ground to bring forward the expected review of
the European Union's economic sanctions against Russia, which are
due for renewal in July, the official added.
"The question of the sanctions is separate," the official
said.
While Berlin is keeping a close eye on developments in the
Russian economy, it sees no direct relation between the sharp fall
in the ruble and the sanctions, Steffen Seibert, Ms. Merkel's
spokesman told journalists on Wednesday.
The currency crisis has "a large number of causes", most of
which predate the Ukraine crisis and "have nothing to do with the
sanctions," Mr. Seibert said.
Last month, German Foreign Minister Frank-Walter Steinmeier told
an economic conference in Berlin that a collapse of the Russian
economy wouldn't be in the West's interest and wouldn't help
improve the security situation in Europe.
The EU sees subtle signs of Russia becoming more cooperative on
the Ukrainian crisis, said Federica Mogherini, the bloc's
foreign-policy chief, on Wednesday, adding that "consequent choices
and acts" were needed to support the statements.
And a softer rhetoric can be heard from Moscow in the interview
of Russian Foreign Minister Sergei Lavrov to French TV channel
France24 on Monday, who called Ukrainian President Petro Poroshenko
"the best chance" for the country and reassured that Russia won't
annex eastern territories in the country's east as it did with
Crimea in March.
"What counts is not the expression of willingness--[it] is the
real willingness and real...delivery on the Minsk agreements," Ms.
Mogherini said in Kiev. More than a thousand people have been
killed in the conflict zone in Ukraine's east since the government
forces and Russia-backed separatists signed a peace accord in the
Belarusian capital of Minsk three months ago.
In their joint conference call, the German, French, Russian and
Ukrainian leaders agreed that the sides have to convene again this
week to cement the implementation of the agreement, as the fighting
decreased significantly in observance of the "day of silence" since
last Tuesday. The intensity of isolated shootings declined, but not
completely, as Kiev reported one servicemen wounded in the last 24
hours.
This week's meeting of the contact group of Russia, Ukraine and
the Organization for Security and Cooperation in Europe is expected
to focus on setting the line separating government-controlled areas
from separatist-occupied territories and agreeing the terms of a
comprehensive prisoner exchange.
With winter approaching, the leaders agreed humanitarian aid
must be strengthened. In particular, Ukraine must be allowed to
bring its own relief supplies safely even in the eastern parts of
the country that is controlled by separatists, the Chancellery's
statement said.
Little signs of relief can be seen in the Ukrainian capital,
however.
A full-scale war may be detonated by Russia anytime, the newly
appointed Ukrainian security and defense secretary Oleksandr
Turchynov warned in a briefing Wednesday. "Our war will finish only
after we liberate all of the Ukrainian territory, including the
Autonomous Republic of Crimea," said Mr. Turchynov, the former
Parliamentary Speaker, as he called for the strengthening of the
country's defense and reserves buildup.
Speaking in Polish parliament on Wednesday, Ukraine's President
Poroshenko said he was committed to the NATO course for Ukraine and
promised to submit a bill renouncing his country's nonaligned
status upon returning to Kiev.
Stefan Lange in Berlin and Ulrike Dauer in Frankfurt contributed
to this article.
Write to Bertrand Benoit at bertrand.benoit@wsj.com and Gregory
L. White at greg.white@wsj.com