Russia can’t support Ukrainian economy forever- Putin: “The situation is - to put it kindly, strange. It’s known our partners in Europe have recognized the legitimacy of the government in Kiev, yet have done nothing to support Ukraine – not even one dollar or one euro,” Putin said at a meeting with government officials at his residence outside of Moscow. In December, Russia gave Ukraine a $3 billion loan, which was a part of a broader $15 billion aid package agreed upon the same month. Russia also offered a 33 percent gas discount that would save more than $7.5 billion, but cancelled it last week over the outstanding multi-billion debt. The head of the International Monetary Fund Christine Lagarde said that Russia’s $3 billion loan last year was vital for the collapsing Ukraine economy. The deal was brokered by now-ousted President Viktor Yanukovich, who refused to sign a European Trade Association Agreement in favor of closer ties with Moscow. At the same meeting, Russian Energy Minister Alexander Novak said that Ukraine’s debt to state monopoly Gazprom stands at $2.238 billion. Ukraine has not paid for Russian gas since the beginning of 2013, which prompted Gazprom to cancel a discount and raise prices to $485 per 1,000 cubic meters. Ukraine says it will not pay this price, stating it is much higher than most of the rest of Europe pays for Russian gas.
Posted on: Wed, 09 Apr 2014 13:37:35 +0000
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