Ukraine deadlock douses hopes of sanctions relief for Russia

Moscow

WHEN it comes to sanctions relief for Russia, the last step might be the most difficult.

After the US and Europe dangled the prospect of an easing of sanctions for the first time last month, the political deadlock in Ukraine and renewed tensions over Syria are dousing expectations of a breakthrough.

The timing couldn't be worse for Russia, which is mired in its longest recession in at least two decades amid a collapse in oil prices to a 13-year low. Obstructing the way is a failure by both sides to implement their obligations under a peace deal signed in the Belarusian capital of Minsk a year ago.

"The grim economic realities make a reset of relations with the West a dire necessity for Russia," said Lilit Gevorgyan, senior economist at IHS Global Insight in London. While there's "certainly a momentum" to push through the Minsk deal "as Russia is showing more flexibility, forced by the worrying economic outlook," the "chances of a successful settlement of the conflict are not looking g…