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Throughout 2011 Ukraine was locked in a dispute with Russia over gas prices. The quarrel is set to escalate in 2012 as Russia squeezes Kyiv to choose deeper integration with Moscow in exchange for cheaper gas. The current gas contract, agreed in 2009 between Russian Prime Minister Vladimir Putin and former Ukrainian prime minister Yulia Tymoshenko, was formulated in a way that saw a gradual increase in price. While the deal kicked-off with a reduced price, Ukraine must now pay more than $415 per 1,000 cubic meters. Ukraine's leadership maintains it can stretch this year's budget to cover the increase, but it could be 'touch and go.' Kyiv needs to renegotiate this deal. However, a cheaper price comes with strings attached. It seems that Moscow is asking Ukraine to join its new Eurasian Union, annul its membership of the EU's energy community, form a consortium with Moscow (which excludes the EU) to control Ukraine’s gas transit system and forget about the free trade agreement with Brussels. Unless Ukraine moves in this direction Russia will maintain the current agreement until it ends in 2019. This risks an eventual collapse of Ukraine's economy. full report at euronewsweek international

Civilians and forces to preserve security have been exposed to attacks by armed terrorist groups in the village of al-Lijat in Deraa province full report

Can the euro be saved? Not long ago we were told that the worst possible outcome was a Greek default. Now a much wider disaster seems all too likely. True, market pressure lifted a bit on Wednesday after central banks made a splashy announcement about expanded credit lines (which will, in fact, make hardly any real difference). But even optimists now see Europe as headed for recession, while pessimists warn that the euro may become the epicenter of another global financial crisis. How did things go so wrong? The answer you hear all the time is that the euro crisis was caused by fiscal irresponsibility. Turn on your TV and you’re very likely to find some pundit declaring that if America doesn’t slash spending we’ll end up like Greece. Greeeeeece! Read more: Euro can die

Blackstone Group and Bain Capital are preparing a bid for all of Yahoo Inc with Asian partners in a deal that could value the Internet company at about $25 billion, a source familiar with the matter said on Wednesday. The potential bid by the consortium, which would include China's Alibaba Group and Japan's Softbank Corp, has not yet been finalized, the source and two other people familiar with the matter said. Chinese e-commerce giant Alibaba, whose primary interest is in buying back a 40 percent stake owned by Yahoo, is keeping its options open and said it has not decided whether to participate in a bid for all of Yahoo. full story at euronewsweek international

Germany and France stepped up a drive on Monday for intrusive powers to reject national budgets in the euro zone that breach EU rules, as a market rout of European debt eased temporarily on hopes of outside help for Italy and Spain. The OECD rich nations' economic think-tank said the European Central Bank should cut interest rates and step up its purchases of government bonds to restore confidence in the euro zone, which it said now posed the main risk to the world economy. In Brussels, finance ministers of the 17-nation currency area meeting on Tuesday are due to approve detailed arrangements for scaling up the European Financial Stability Facility rescue fund to help prevent contagion spreading in bond markets, and to release a vital aid lifeline for Greece. full article at euronewsweek international

Amazon.com Inc, eBay Inc and other e-commerce companies had a strong "Black Friday," but the industry's growth rate lagged last year's surge in online buying on the traditional first day of the holiday shopping season. full story at euronewsweek international

Pakistan on Sunday buried 24 troops killed in a NATO cross-border air attack that has pushed a crisis in relations between the United States and an ally it needs to fight militancy toward rupture. The incident was the latest perceived provocation by the United States, which infuriated Pakistan's powerful military with a unilateral U.S. special forces raid that killed Osama bin Laden in May. U.S. and NATO officials are trying to defuse tensions but the soldiers' deaths are testing a bad marriage of convenience between Washington and Islamabad. full story at euronewsweek international

David Cameron has suggested firms should allow parents to take their children to work on the day that millions of public sector workers strike over pensions next Wednesday. The prime minister told MPs in the Commons that the industrial action scheduled for 30 November was the "height of irresponsibility" on a day that he urged members to defy the strikes to avoid inflicting "pain" on hardworking people "who pay your wages". Louise Mensch, Tory MP for Corby and East Northamptonshire, asked Cameron during prime minister's questions whether he thought people should take their kids to work with them to minimise disruption to their day. full article at euronewsweek international

Russia called new sanctions against Iran "unacceptable," saying the new punishments would hurt efforts to talk with Tehran. The Russian Foreign Ministry posted a statement Tuesday, a day after the United States announced tougher sanctions against Iran -- joining Britain and Canada in a coordinated effort to tighten the screws around the country's suspected nuclear weapons program. "Russia sees such extraterritorial measures as unacceptable and against international law," the statement says. "Such a practice seriously obstructs advancement toward a constructive dialogue with Tehran. Stronger sanction pressure, which some of our partners see almost as a goal in itself, will not encourage Iran to sit down at the negotiating table." full article ateuronewsweek international

The warning comes as the global economy stands on the brink of a “chronic” debt-driven recession. The Prime Minister on Monday conceded that tackling Britain’s debts was “proving harder than anyone envisaged”, raising the prospect that the Coalition would be unable to close the deficit by 2014-15. That would rule out any significant tax cuts before the next election. It also raises questions about the Coalition’s fundamental purpose. Departing from the deficit-reduction timetable could raise fears that Britain will face rising borrowing costs as bond markets take fright. Debt is “a drag on growth”, Mr Cameron told business leaders. “We are well behind where we need to be,” he said. Kenneth Clarke, the Justice Secretary, has warned that the global economy is “in a devil of a mess”, which is “bound to have an effect” on the Coalition’s plans to clear most of the deficit before the next election. full article

China save Europe