US President Barack Obama will not attend the Group of Eight summit scheduled for Sochi, Russia, in June unless Moscow reserves course in the Ukraine Crisis.  Russia countered by yanking the sweet deal on natural gas it gave to Ukraine when Viktor Yanukovich was president.

From 1 April, Russia’s Gazprom will cease Ukraine’s special 33 percent discount on the natural gas it has been selling to the one-time Soviet sister state.  Gazprom says it is doing this because Ukraine has failed to pay its bill and owes the energy company more than US$1.5 billion.  Russian President Vladimir Putin insists the move is just business and “has nothing to do” with the situation on the Crimean Peninsula.

In Washington, officials said President Obama would not attend the G8 summit because of Russia’s actions in the Ukraine crisis.  He had phoned Putin to discuss an off-ramp for the Russians from Ukraine in which Moscow would pull its forces in Crimea back to their bases and allow international monitors to ensure the rights of ethnic Russians are protected. 

In a carefully coordinated news conference in Moscow, Putin didn’t even acknowledge that Russian troops were even in Crimea, suggesting that ethnic Russian locals had secured the highways and airports, and surrounded Ukrainian military bases.  But at least he softened his stance, saying war with Ukraine itself is a “last resort”.