Ukraine peace plan in tatters, 'frozen conflict' takes shape

``Kiev appears to be aiming now to isolate the separatist leadership rather than break it. The message on Wednesday was that the rebel leaders may have to turn to Moscow now for cash handouts and subsidies to finance their breakaway aspirations. This is a risky strategy as it could be seen as Kiev abandoning Ukrainians living in rebel-held areas. But Poroshenko is not expected to order a new military offensive, despite issuing a decree on Wednesday that would raise defense spending to 3 percent of gross domestic product from 1 percent.''