Russia may grant Ukraine loan if Kyiv asks: Putin aide

16 December 2013 11:44
(QHA) -

A Kremlin aide made clear on Monday that Russia was ready to extend a credit to Ukraine to help Kiev cope with its economic problems and keep the country in Moscow's orbit, reports Reuters.

Economic adviser Andrei Belousov said it was possible that a credit could be agreed at talks on Tuesday between Russian President Vladimir Putin and Ukrainian President Viktor Yanukovich, who has turned to Moscow for help after spurning a free trade deal with the European Union last month.

"I do not rule out that, if there is a request, a credit could be provided (to Ukraine)," Interfax news agency quoted Belousov as saying.

"The situation in Ukraine is now such that without loans, from one side or another, they will simply fail to maintain economic stability."

Ukraine is seeking help to cover an external funding gap of $17 billion next year - almost the level of the central bank's depleted currency reserves.

Belousov did not say how much Russia might be ready to loan Ukraine.

Apart from loans, Ukraine is seeking a lower price for Russian gas - now at around $400 per 1,000 cubic meters - to help it cope with its debt burden.

Ukrainian Prime Minister Mykola Azarov was quoted as saying on Sunday that he hoped a deal on a cheaper price for gas deliveries would be concluded.