Russia Turns Aid To Ukraine Back On
The east-west contest for influence over Ukraine reached a new pitch as the Kremlin said it is resuming financial assistance to the beleaguered government in Kiev. Moscow's announcement came as Germany's Chancellor Angela Merkel was holding an unusual meeting with Ukraine opposition leaders about ways to steer the country back toward Europe.
Russia's finance minister said Russia will buy $2 billion in Ukraine eurobonds this week, effectively resuming aid to Ukraine that it has suspended last month after President Viktor Yanukovych fired his pro-Russian prime minister and cabinet. Last month the Kremlin said it wouldn't resume aid until it knew the composition of a new government, a matter that Ukraine's parliament is expected to consider on Tuesday.The bond purchases are likely to result in the appointment of a pro-Russian prime minister, said Timothy Ash, an analyst at Standard Bank.
MA