Russia to Buy Ukrainian Govt Bonds Worth USD 15 B

Russian President Vladimir Putin (R) and Ukrainian President Viktor Yanukovych sign an agreement in the Grand Kremlin Palace in Moscow, Russia, 17 December 2013. Photo by EPA/BGNES

Russia has agreed to buy USD 15 B worth of Ukrainian government bonds and cut prices for natural gas.

Russian President Vladimir Putin signed a series of agreements with his Ukranian counterpart at a meeting on Tuesday.

Under the agreements, Russia will place reserves of the Russian National Wealth Fund worth USD 15 B in Ukrainian government bonds.

In the presence of the two heads of state, Gazprom and Naftogaz Ukraina signed an addendum to the 2009-2019 gas transit contract under which the Russian energy giant is to deliver to Ukraine gas supplies priced at USD 268.5 per thousand cubic meters instead of the current price of USD 400 per thousand cubic meters. The gas price cut is temporary.

The issue of Ukraine joining the Customs Union was not discussed, according to reports of Sega daily.

The current situation in Ukraine is to be discussed at the EU Council Meeting on December 19-20.

The agreement comes against a backdrop of mass protests in the Ukrainian capital over the decision of President Viktor Yanukovych to back out of a strategic deal with the EU and seek closer ties with Russia.

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