The Ukrainian government and pro-Russian separatists agree a ceasefire after talks in Minsk, as Nato members decide to increase defending spending at their summit in Newport.
Prime Minister David Cameron said the ceasefire was “good news”, but it was not yet clear if it included a commitment “to make real progress on a proper peace plan”.
One potential sticking point is that pro-Russian rebels have not given up on their hopes of achieving separation from Ukraine.
Mr Cameron said the sanctions against Russia that were agreed at the weekend would go ahead, but if a “proper peace plan” was agreed, these could be “removed if proper milestones are reached”.
Nato Secretary General Anders Fogh Rasmussen said members had agreed to increase their defence spending to 2 per cent of gross domestic product over the next decade, arguing that Russian “aggression against Ukraine” had served as a “wake-up call”.
Mr Cameron said Britain’s second new aircraft carrier would be brought into service, rather than sold off or mothballed. The future of the Peince of Wales had been in doubt as a result of the cuts introduced by the 2010 strategic defence review.
Mr Rasmussen said there was also agreement on the creation of a new “sprearhead” force that could be deployed in a matter of days. The alliance is planning to store supplies of fuel and ammunition in eastern Europe to provide reassurance to Nato members Estonia, Latvia and Lithuania. “It sends a clear message to any potential aggressor – should you even think of attacking an ally, you will be facing the whole alliance,” he said.
Russia faces a long list of new EU sanctions. A package, being announced in Brussels, will include restrictions on some of Russia’s all-important energy firms, as well as travel restrictions, and is expected to be accompanied by similar sanctions by the US and Canada.
The conflict in Ukraine dominated the second day of the Nato summit, with western leaders accusing Russia of sending thousands of troops into the east of the country, which it denies.
There were tensions also among Nato leaders over alleged ransom payments made by some countries – such as France and Italy – to secure their nationals held hostage by terrorist groups overseas.
With feelings running high on the issue following the beheadings by Islamic State terrorists of two American journalists and the threats to kill a British hostages, David Cameron last night bitterly accused some fellow leaders of reneging on commitments made last year not to make such payments.
It is worse than self-defeating, it is actually a risk to us back at home. David Cameron
“All those people who signed these declarations know that what matters is not your signature on a declaration but not letting money be paid to terrorist kidnappers because that money goes into arms, it goes into weapons, it goes into terror plots, it goes into more kidnaps,” he said ahead of a lavish official banquet at Cardiff Castle.
“It is utterly self-defeating. It is worse than self-defeating, it is actually a risk to us back at home.”