Russia to Wait for New Ukrainian Govt Before Releasing More Aid

[dipsydoodle]

Source: RIA Novosti

KIEV, January 29 (RIA Novosti) – Russia warned Ukraine on Wednesday that it will halt the implementation of a financial aid package until the crisis-hit former Soviet nation has formed a new government.

Financial and energy agreements with Ukraine will only be honored when “we understand what sort of government there will be, who will be working in it and what rules they will stick to,” Prime Minister Dmitry Medvedev told the Cabinet on Wednesday, Prime business news agency reported.

“That’s sensible, let’s wait for the new Ukrainian government to be formed,” responded President Vladimir Putin, who was also present at the meeting, Prime reported.

Russia agreed to supply Ukraine with $15 billion worth of loans and slash the price for gas in a December deal that was widely seen as a political reward for Ukrainian President Viktor Yanukovych after his decision to back off from integration plans with Europe and cement closer ties with Russia.

Read more: http://en.ria.ru/russia/20140129/187025942/Russia-to-Wait-for-New-Ukrainian-Govt-Before-Releasing-More-Aid.html

---

Oops.

All hangs on fresh elections then. Other than Russia no alternatives sources of funds have been mentioned the IMF having already said no.

[pampango]

1. Previously - Putin: Russia ready to support Ukraine, regardless of govt

Moscow is ready to support not the government of Ukraine, but the Ukrainian people, President Putin said, referring to Russia’s loan to its neighboring state and its offer to reduce gas prices. No matter which government comes to power in Ukraine, Russia will not reconsider its earlier signed agreements, he told a news conference in Brussels.

"Regarding you question whether we will review our agreements on loans and the energy sector if the opposition will take power ... No, we will not," Putin told a news conference after talks with European Union leaders in Brussels. The loan and the gradual reduction of gas price were to, “support the people of Ukraine, not the government. It’s the ordinary people who always suffer."

The Russian president reiterated Moscow’s position on the situation in Ukraine, saying that the political crisis in the country should be solved without foreign interference. Putin said that Moscow believes that meddling in Ukraine’s domestic affairs is unacceptable. The international community, which has been calling on Ukrainian President Viktor Yanukovich to act in a civilized way amid the crisis, should urge the opposition to do the same, Putin added.

Read more: http://rt.com/news/putin-eu-ukraine-summit-293/

Russian President Vladimir Putin warned foreign nations against interfering in the politics of ex-Soviet states.

http://www.rawstory.com/rs/2014/01/28/ukrainian-president-yanukovych-calls-biden-on-dramatic-day-in-ukraine/

Perhaps Russia will provide the agreed upon aid "regardless of the government" as long it is Yanukovych who is heading the government. The warning about "foreign countries' interfering in the politics of ex-Soviet states" does not apply to Russia. Warning that promised aid may depend on the outcome of an election is far from 'interfering'.

[bemildred]

4. +1. nt

[dipsydoodle]

6. He's obviously changed his mind. Put it this way.............

If you had $15 billion available to lend from a rainy day fund from which it was vital it would be returned on time would you lend if unsure of repayment ?

As I've mentioned before at present even the IMF won't lend them anything,

[pampango]

7. So Yanukovych changed his mind about prefering to deal with the EU. Putin changed his mind about

the terms of any aid Russia would offer to Ukraine.

If you had $15 billion available to lend from a rainy day fund from which it was vital it would be returned on time would you lend if unsure of repayment?

Which is why I don't think Putin changed his mind. He is playing hard ball and the $15 billion is the bat. It sounded good at the time to say that the aid Russia was providing as part of the association deal was not contingent on the government in power. Makes you seem like a generous, magnanimous country offering help to a country that needs it. ("Look Russia is offering that much aid with no strings attached. What are you protesters worried about?)

Of course, at the time he had little reason to believe that Yanukovych's government was in any danger of falling. Now that that danger exists (whether it actually happens or not), Putin is merely saying what he thought all along but thought he could avoid having to say out loud.

And what about Putin's admonition that foreign countries should not meddle in Ukraine's politics? Telling a country that you will grant them aid if the elect one candidate over another, seems like some pretty significant 'interference' to me. The importance to Putin of Yanukovych staying in power seems quite apparent now. Probably not good news for the protesters.

If nothing else, this should give Ukrainians some insight to what the future holds if they accept Russia's offer of aid and association.

[levp]

2. Its for the best

Putin's aid = Trojan Horse

[kristopher]

3. Well said.

Belarus On The Russian Energy Needle
Ryhor Astapenia 09 January 2014

This year, Russia agreed to supply Belarus with discounted oil only for the next six months, rather than for the whole year.

The size and conditions for further shipments will depend on Belarus’ participation in specific integration projects and the sale of several companies to Russia. All of this shows how the Kremlin uses Belarus' energy dependence to get what it wants.

Energy remains an area in which Russia has a very strong position in Belarus. Russia dominates the nation's gas infrastructure, oversees the work of its oil refineries and has significant influence on its electrical industry.

Although the building of a nuclear power plant looks economically beneficial, Russia`s control over the project, combined with Belarus' doubtful ability to repay the accompanying $9bn loan, raises many questions.

Currently, Russia is not using all of its energy potential to blackmail Belarus. Kremlin has possibilities to bankrupt not only individual Belarusian enterprises, but also ...

http://belarusdigest.com/story/belarus-russian-energy-needle-16594

[pampango]

5. Nice find, kristopher. Thanks for posting it. n/t