Russia

By Jan Lopatka & Christoph Steitz

Unprecedented talks across the European Union on Tuesday showed it scrambling for solutions on the ground to break its dependence on Russian gas and help supply Ukraine.

Lukanyo Mnyanda & Eshe Nelson

The euro area’s higher-yielding government bonds are emerging as a haven from emerging-market turmoil as the prospect of greater stimulus from the European Central Bank underpins demand for the securities.

Russian President Vladimir Putin warned that Ukraine was "on the verge of civil war" and described the actions of Ukraine's military in the east as "unacceptable".

Putin made the first comment during a phone conversation with German Chancellor Angela Merkel, whereas the second was in a call to Israeli Prime Minister Benjamin Netanyahu, as RIA Novosti reported.

Montenegro denies conducting anti-Russian policy

PODGORICA -- The Montenegrin Ministry of Foreign Affairs has dismissed as "inappropriate" and "arbitrary" the criticism the country received from the Russian Federation.

Estonia is worried by Russia's actions in Ukraine and favors increased military presence on its territory as a security measure.

The President of the Baltic country, Toomas Hendrik Ilves, told CNN that the unpredictability of Russia's actions means the region is in need of more security.

KRAGUJEVAC - Serbia triumphed against Russia 14-7 (3-1, 4-2, 3-3, 4-1) in the Men's Water Polo World League 2014 Europe Group A Round 6 preliminaries in Kragujevac late on Tuesday and secured their spot in the Super Final that will be played in Dubai on June 16-21.

Putin: Escalation takes Ukraine to brink of civil war

MOSCOW -- German Chancellor Angela Merkel and Russian President Vladimir Putin have had a telephone conversation about the situation in Ukraine.

Russia will not pull out of the four-party talks on the Ukraine crisis scheduled for Thursday in Geneva, Foreign Minister Sergei Lavrov confirmed.

Kremlin threatens gas supplies to Southeast Europe

Several nations receive Russian gas via Ukraine. In other business news: Albania's credit rating sees improvement and Turkey's military spending surpasses Canada.

The EU says Russia should not politicise its contractual shipments of gas. [AFP]

EU, NATO call on Russia to 'stop being part of the problem' in Ukraine