West and Russia step up diplomatic efforts over Ukraine

Senior US and Russian officials are expected to discuss Ukraine's crisis today, after the European Union welcomed the appointment of a new reformist government in Kiev and efforts intensified to halt fighting in eastern regions.

US secretary of state John Kerry and Russia's foreign minister Sergei Lavrov are due to meet in Switzerland, on the sidelines of a gathering of the 57-nation Organisation for Security and Co-operation in Europe (OSCE).

The battle for Ukraine's Donetsk and Luhansk regions between government forces and Moscow-backed separatists has killed more than 4,300 civilians and soldiers, displaced about one million and caused a deep rift between Russia and the West; Kiev also claims to have killed about 8,000 rebel fighters.

The US and EU have imposed sanctions on Russian companies, businessmen and politicians, and Washington and Nato accuse it of funnelling fighters and heavy weapons to the rebels.

Moscow denies the allegations, blames the West for fomenting unrest in Ukraine and claims any Russian soldiers there are volunteers on holiday; at the same time, the Kremlin insists it has the right to defend Russian-speakers in Ukraine, and vows to stop Kiev "destroying" opponents in eastern regions.

On Tuesday, Ukraine’s new strongly pro-western parliament approved a new government led by incumbent premier Arseniy Yatsenyuk, which includes three foreign nationals who were given Ukrainian citizenship to allow them to take their posts.

The new finance minister is Natalie Jaresko, a US citizen of Ukrainian descent, who worked in banking in Ukraine for more than 20 years after holding various economic positions at the State Department.

A Lithuanian, Aivaras Abromavicius, was appointed economy minister, and a Georgian, Aleksander Kvitashvili, was named as health minister; they both also studied in the United States.

The new cabinet must try to stabilise an economy in meltdown while implementing long-overdue reforms to slash corruption and bureaucracy, while working closely with foreign lenders and seeking international investment.

Several banks are in a perilous position amid a sharp weakening of the hryvnia currency, the economy is shrinking rapidly due to war in the industrial east, and fuel and power supplies are badly stretched as winter starts to bite.

International media watchdogs sharply criticised plans to create an information ministry, to counter Russia’s massive propaganda campaign against Ukraine’s pro-western authorities.

Donald Tusk, the new president of the European Council, congratulated Ukraine's president Petro Poroshenko yesterday on the appointment of a government that "brings hope for further stepping up much needed political and economic reforms."

In their telephone conversation, Mr Tusk reiterated the EU´s “readiness to continue standing by Ukraine in these efforts.”

Ukraine’s military reported clashes yesterday around Donetsk airport, where it claims Russian special forces are supporting rebel fighters.

Military spokesman Andriy Lysenko said talks were continuing over a possible ceasefire in Luhansk and Donetsk, despite earlier announcements that agreement had been reached.

Following on from today’s meeting between Mr Kerry and Mr Lavrov, officials said Russian, Ukrainian and OSCE envoys may reconvene for talks on the conflict next week.