Russia Offers Kiev Cheaper Gas Under Conditions

Russia intends on offering better conditions for its natural gas to Ukraine under the condition Kiev joins the Customs Union, a Moscow-led economic bloc.

“A gas agreement could help relieve Ukraine of a huge problem. We can also give them a loan, but we will not help them without commitments on their part,” Russia’s First Deputy Prime Minister Igor Shuvalov said in an interview to Bloomberg. 

Moscow is asking Kiev to suspend talks for a free trade agreement with Brussels and commit to a Moscow-led economic bloc. 

Ukraine entered its third recession since 2008. It has heavy financial needs in the coming 18 months and its sovereign debt yield premium to US Treasuries stands at 923 basis points, the highest in the world after Venezuela.

“No one other than Russia can provide Ukraine with the necessary funds so quickly and in such a quantity,” Shuvalov said.