News / Europe

Russia Urges Order in Ukraine as Gas Talks Begin

Russia's Prime Minister Dmitry Medvedev (L) meets with Ukraine's Deputy Prime Minister Yuri Boiko at the Gorki residence outside Moscow, Russia, Dec. 4, 2013.
Russia's Prime Minister Dmitry Medvedev (L) meets with Ukraine's Deputy Prime Minister Yuri Boiko at the Gorki residence outside Moscow, Russia, Dec. 4, 2013.
Reuters
— Russia called on Wednesday for “stability and order” in neighboring Ukraine as the two countries held their first high-level talks since Kyiv pulled out of a trade alliance with the European Union.

Prime Minister Dmitry Medvedev hosted a Ukrainian delegation led by a deputy prime minister, Yuri Boiko, that is seeking cheaper gas and financial aid to close gaping external deficits that could set off a balance of payments crisis.

Risks of a financial meltdown in Ukraine, a former Soviet republic of 46 million, became acute after mass demonstrations in Kyiv last weekend against President Viktor Yanukovych and his government over a decision to seek closer alliance with Moscow.

“You are having quite an active political season,” Medvedev told Boiko in a meeting at his residence outside Moscow, according to the Interfax news agency.

“Of course this is an internal matter, but it is very important that there be stability and order in the country.”

Russian President Vladimir Putin had threatened financial sanctions against Kyiv if it signed a trade agreement with the EU last week. Yanukovych abandoned the deal at the last moment, surprising European leaders and angering domestic critics.

Ukrainian Prime Minister Mykola Azarov told his cabinet that the Boiko visit would continue a dialog with Russia on trade and economic relations that are “very critical for maintaining and developing Ukrainian industry and economy.”

The Boiko visit was clearly part of the government's plans to sketch out what the Ukrainians hope will be a 'roadmap' for future economic ties with their old Soviet master.

No immediate breakthroughs were announced but Yanukovych, who was visiting China, was expected to meet Putin soon.

Kremlin spokesman Dmitry Peskov said Putin would not meet Boiko. No date had yet been set for an encounter between the two presidents.

Gas payments

Adding to the pressure on Ukraine, the CEO of Russian gas export monopoly Gazprom, Alexei Miller, said no deal had been reached to put off payment of any portion of Kiev's debt for gas deliveries this year.

“We are seeking options to resolve this issue, we are holding talks, but no agreements have been reached at this point,” Miller said in a statement. He said Ukraine owes just over $2 billion for August, October and November.

The head of Ukraine's state-run energy firm Naftogaz, Yevhen Bakulin, had been quoted as saying on Tuesday that it had agreed with Gazprom to defer payments for the final three months of 2013 until spring.

Bakulin also said Naftogaz would pay $765 million due to Gazprom for deliveries in August.

Ukraine faces huge problems to finance a current account deficit of 7 percent of gross domestic product. Cheaper Russian gas would buy time for Kyiv to find ways to meet outside funding needs estimated at $17 billion next year.

Ukraine's central bank intervened again on the currency market to support the value of the national hryvnia currency, amid concerns that its stock of foreign reserves of $20 billion will be sufficient to hold the line.

The cost of insuring Ukrainian government debt for five years rose to 1,097 basis points, near-four-year highs. Levels over 1,000 basis points are indicative of financial distress.

You May Like

Koreas Mark 61st Anniversary of War Armistice

Muted observances on both sides of heavily-armed Demilitarized Zone that separates two decades-long enemies More

Judge Declares Washington DC Ban on Public Handguns Unconstitutional

Ruling overturns capital city's prohibition on carrying guns in pubic More

Pricey Hepatitis C Drug Draws Criticism

Activists are using the International AIDS Conference to criticize drug companies for charging high prices for life-saving therapies More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Students in Business for Themselvesi
X
Mike O'Sullivan
July 26, 2014 11:04 AM
They're only high school students, but they are making accessories for shoes, fabricating backpacks and doing product photography - all through their own businesses. It's the result of a partnership between a non-profit organization that teaches entrepreneurship and their schools. VOA's Mike O'Sullivan and Deyane Moses met the budding entrepreneurs near Los Angeles.
Video

Video Students in Business for Themselves

They're only high school students, but they are making accessories for shoes, fabricating backpacks and doing product photography - all through their own businesses. It's the result of a partnership between a non-profit organization that teaches entrepreneurship and their schools. VOA's Mike O'Sullivan and Deyane Moses met the budding entrepreneurs near Los Angeles.
Video

Video Astronauts Train in Underwater Lab

In the world’s only underwater laboratory, four U.S. astronauts train for a planned visit to an asteroid. The lab - called Aquarius- is located five kilometers off Key Largo, in southern Florida. Living in close quarters and making excursions only into the surrounding ocean, they try to simulate the daily routine of a crew that will someday travel to collect samples of a rock orbiting far away from earth. VOA’s George Putic has more.
Video

Video Not Even Monks Spared From Thailand’s Junta-Backed Morality Push

With Thailand’s military government firmly in control after May’s bloodless coup, authorities are carrying out plans they say are aimed at restoring discipline, morality and patriotism to all Thais. The measures include a crackdown on illegal gambling, education reforms to promote students’ moral development, and a new 24-hour phone hotline for citizens to report misbehaving monks. Steve Sandford reports from Bangkok.
Video

Video Virtual Program Teaches Farming Skills

In a fast-changing world beset by unpredictable climate conditions, farmers cannot afford to ignore new technology. Researchers in Australia are developing an online virtual world program to share information about climate change and more sustainable farming techniques for sugar cane growers. As VOA's Zlatica Hoke reports, the idea is to create a wider support network for farmers.
Video

Video Airline Expert: Missile will Show Signature on Debris

The debris field from Malaysia Airlines Flight 17 is spread over a 21-kilometer radius in eastern Ukraine. It is expected to take investigators months to sort through the airplane pieces to learn about the missile that brought down the jetliner and who fired it. VOAs Carolyn Presutti explains how this work will be done.
Video

Video Treatment for Childhood Epilepsy Heats up Medical Marijuana Debate

In the United States, marijuana is classed as an illegal drug by the federal government. But nearly half the states have legalized it, to some degree. Proponents say some strains of marijuana might have exceptional health benefits, for treating pain or inflammation in chronic conditions such as cancer, multiple sclerosis and epilepsy. Shelley Schlender reports on a strain of medical marijuana developed in Colorado that is reputed to reduce seizures in childhood epilepsy
Video

Video Airbus Adds Metal 3D Printed Parts to New Jets

By the end of this year, European aircraft manufacturing consortium Airbus plans to deliver the first of its new, extra-wide-body passenger jets, the A350-XWB. Among other technological innovations, the new plane will also incorporate metal parts made in a 3-D printer. VOA's George Putic has more.
Video

Video AIDS Conference Welcomes Exciting Developments in HIV Treatment, Prevention

Significant strides have been made in recent years toward the treatment and prevention of HIV, the virus that causes AIDS. This year, at the International AIDS Conference, the AIDS community welcomed progress on a new pill that may prevent transmission of the deadly virus. VOA’s Anita Powell reports from Melbourne, Australia.
Video

Video IAEA: Iran Turns its Enriched Uranium Into Less Harmful Form

Iran has converted its stockpiles of enriched uranium into a less dangerous form that is more difficult to use for nuclear weapons, according to the United Nations’ Atomic Energy Agency. The move complies with an interim deal reached with Western powers on Iran's nuclear program last year, in exchange for easing of sanctions. Henry Ridgwell reports for VOA from London.

AppleAndroid