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Trigonometric degeneration and orbifold Wess-Zumino-Witten model. II.
The sheaves of conformal blocks and conformal coinvariants of the twisted WZW model have a factorisation property and are locally free even at the boundary of the moduli space, where the elliptic KZ equations and the Baxter-Belavin elliptic r matrix degenerate to the trigonometric KZ equations and the trigonometric r matrix,o respectively. Etingof's construction of the elliptic KZ equations is geometrically interpreted.