Russia Wins Delay In EU-Ukraine Trade Pact -- Reuters

* Ukraine will continue to have preferential access to EU
* Russia worried about pact's impact on its industry
* Trade talks part of Ukraine peace process-EU official (Adds Ukrainian minister's quote)

BRUSSELS, Sept 12 (Reuters) - The European Union and Ukraine agreed on Friday to delay the implementation of their free-trade pact until the end of next year in a concession to Russia, which had complained its industry would be hurt by the deal.

Russia and the West are bitterly at odds over Ukraine, and the European Union and United States both imposed new sanctions against Moscow on Friday over what they say is its military backing for separatist rebels in the east of the country. Russia, which denies involvement, said it would consider retaliating.

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My Comment: Zero Hedge has a good analysis on this capitulation .... but the big reason on why Europe capitulated is this one .... Central, East Europe Brace for Energy Shortages as Russian Gas Flows Fall (Wall Street Journal)

Yup .... the above graph shows how vulnerable eastern Europe is right now to Russian gas supplies.