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Ukraine may finally opt for an alliance with the European Union after carefully playing off Brussels and Moscow against each other.

Ukraine will sign a cooperation agreement with the European Union 'by the end of the year', finance minister Yuriy Kolobov told Emerging Markets at the EBRD conference in Istanbul.

The move will be a significant development in the cat-and-mouse game that Kiev has played with Brussels and Moscow over its future commercial and political allegiance.

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