TODAY: Donetsk declares itself a republic, sets date for referendum on joining Russia; U.S. and Russia accuse each other of fomenting dissent; Kerry threatens Lavrov; VKontakte founder retracts resignation, says share sale was illegal; Medvedev turns against GMOs; Novosibirsk elects Communist mayor; Ukraine misses Gazprom debt deadline; Sochi committee congratulates itself.

A referendum on joining Russia will be held in Donetsk, Ukraine on May 11, where anti-government protesters are calling in the meantime for the protection of Russian ‘peacekeepers’ and, according to some reports, have declared the city a people’s republic.  The State Duma says it is considering sending a delegation.  The White House says it has ‘strong evidence’ that pro-Russian demonstrators in Ukraine are being paid; President Vladimir Putin in turn made his own accusations about the West using NGOs to fuel dissent in Russia, and alleged that security forces foiled hundreds of foreign spies in 2013.  U.S. Secretary of State John Kerry threatened Foreign Minister Sergei Lavrov with ‘further costs’ in the event of further actions in Ukraine.  This is a prime moment for Putin with Ukraine, says the WSJ: ‘Never again will the administration in Washington be so inept, its threats so hollow.’  Any further sanctions imposed on Russia by the E.U. could actually damage the German engineering sector, says trade body VDMA.  Six activists were detained near the Kremlin yesterday for holding ‘invisible posters’.